Mixed Q3 FY26 Earnings for Nifty 50

India's corporate earnings season for the third quarter of fiscal year 2026 (Q3 FY26, October-December 2025) presented a divided picture. While several heavyweight companies delivered strong profit growth, margin expansion, and beat market expectations, others grappled with subdued demand, global headwinds, and sector-specific challenges. 

Overall, the Nifty 50 companies showed moderate revenue growth around 4.5% year-on-year (a 16-quarter low in some analyses) and profit growth of about 9.5%, lagging behind stronger global benchmarks like the S&P 500. Analysts noted that 21 Nifty 50 companies surpassed earnings estimates, 10 fell short, and 19 delivered results in line with expectations. 

The performance highlighted resilience in sectors like banking, IT services, healthcare, and certain auto segments, contrasted by pressures in consumer goods, power, pharmaceuticals (especially exports), and retail. Among the standout performers, State Bank of India (SBI) reported its highest-ever quarterly profits, fueled by robust growth in non-interest income. 

This underscored the strength in the banking sector amid supportive domestic conditions. Tech Mahindra continued its positive trajectory with a ninth consecutive quarter of margin expansion, putting it on track to achieve its 15% guidance by FY27. Similarly, HCL Technologies posted its highest constant currency (CC) revenue growth in eight quarters at 4.2% QoQ (compared to 2.4% in the prior quarter), reflecting improved momentum in IT services and strong deal wins. 

Apollo Hospitals delivered a robust set of numbers, with digital losses narrowing quarter-on-quarter—a key positive highlight for the healthcare player. Ashok Leyland surprised with huge margin gains and announcements of capacity additions expected to drive future growth. On the flip side, several prominent names disappointed. Asian Paints turned in a lacklustre performance amid weak industry demand, making future demand trends critical to monitor.

Cipla (referred to as SPLA) faced drags from subdued US performance—a common issue for many pharma exporters in the quarter. NTPC saw weaker results due to lower plant load factor (PLF) stemming from soft power demand. Tata Motors' passenger vehicle segment suffered from a sharp dip in Jaguar Land Rover (JLR) volumes, compounded by one-time expenses that hit profitability. 

Reliance Industries also missed earnings expectations, primarily due to weak retail performance. The retail segment's EBITDA margin dipped to 7%, marking the lowest in the last 13 quarters. Investors are now focused on key trends emerging from this earnings season, including the impact of recent GST rate cuts boosting certain consumer-facing sectors, ongoing margin pressures from labour code implementations in some cases, and varying global exposures affecting export-oriented businesses. While select sectors show recovery signals, broader consumption weakness and commodity dynamics remain factors to watch in the coming quarters.