New Delhi, June 4: Despite fluctuations and uncertainties in the energy market, Indian companies have concluded the fiscal year 2026 with a robust performance. According to a report, the net profit after tax (PAT) of BSE 500 companies saw an annual increase of approximately 14% in the fourth quarter of fiscal year 2026, maintaining a performance level similar to the previous quarter.
The report by MK Global Financial Services highlights that strong revenue growth, widespread participation across various sectors, healthy cash flow, and robust balance sheets have further enhanced the prospects for income growth in fiscal year 2027.
The report indicates a surge in earnings for non-financial companies, with total revenue growth rising to 12.3%, up from 9.2% in the previous quarter.
Although the operating profit margin (EBITDA margin) slightly decreased to 16.4%, the quality of earnings remained strong, reflecting the fundamental strength of the Indian corporate sector.
The report noted widespread growth across various companies and sectors during the fourth quarter. Approximately 59% of BSE 500 companies recorded a profit increase of over 10%, while 39% experienced income growth exceeding 25%.
This marks a significant improvement compared to the first half of fiscal year 2026, indicating that the earnings recovery is not confined to a few sectors but is broadly visible.
Corporate earnings outperformed market expectations, with 48% of Nifty companies delivering better-than-expected results, up from 32% in the previous quarter. This suggests that the fundamental position of companies remains stronger than anticipated.
Companies in the consumer discretionary sector were among the top performers, with an 18% increase in income supported by improved consumer demand and increased spending.
The consumer staples sector also recorded growth of over 15%. Meanwhile, despite global economic uncertainties, information technology (IT) companies achieved a 13.4% increase in income.
The financial sector continued to show stable performance, recording a growth of 13.1%, maintaining a significant base for the overall market earnings.
According to the report, the energy and materials sectors were among the best-performing areas, with income growth of 23.8% in the energy sector and 23.1% in the materials sector.
Mid-cap companies exhibited the most impressive performance in the fourth quarter, with profits rising by 34.2% year-on-year, while large-cap and small-cap companies saw profit increases of 10.3% and 10.4%, respectively. This clearly indicates that mid-cap companies outperformed their larger competitors during this period.
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