New Delhi, Nov 3
Corporate India's Q2FY26 earnings season showed mid-cap companies and commodity-linked sectors leading profit growth, offsetting weaknesses in select small-caps, a report said on Monday.
Mid-cap firms outperformed expectations, with 47 companies reporting a 26 per cent year-on-year earnings increase, surpassing the estimated 19 per cent, the report from brokerage Motilal Oswal Financial Services Limited said.
"Earnings upgrades outnumbered downgrades for the first time in several quarters, signalling a healthier market backdrop and improving confidence in India Inc.'s profitability trajectory," the MOFSL report said.
While headline indices remain range-bound after a muted year, underlying fundamentals are improving — supported by moderating earnings cuts, diversified sectoral leadership, and robust mid-cap resilience, the brokerage said.
The growth in mid-cap space was seen for the third straight quarter, driven by strong performance in technology, cement, metals, state-owned banks, real estate, and non-lending NBFCs.