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Informist, Wednesday, Aug. 19, 2026

 

By Anand JC

 

MUMBAI – Turbulence in global energy prices and resultant spike in the cost of key commodities such as metals and other inputs limited the June quarter net profit growth of the 191 companies in the Nifty 200 index, for which earnings estimates were available, despite the strongest revenue growth in the last 15 quarters. The Nifty 200 companies comfortably exceeded estimates for top-line and bottom-line growth. Compared with Nifty 50 index companies, net profit growth was slower, but revenue growth was faster.

                          

The net profit of the 191 companies grew 9.7% on-year in the June quarter, much better than the expected 6% contraction. The aggregate net profit of these companies grew slower in the June quarter, compared with 28% growth in the March quarter and 14% growth a year ago. Adjusted for one-time costs and incomes, profit growth for the June quarter improved to 12%, but still lower than the sequential and year-ago quarters.

 

Across the Nifty 200, net profit contracted year-on-year for 44 companies in the June quarter, compared with 51 in the March quarter and 57 a year ago. As many as seven companies in the Nifty 200 index reported a loss in the quarter under review, the same as in the sequential quarter but one more than in the year-ago quarter.

 

Of the eight sectors that comprise the Nifty 200 index, the combined bottom line of companies in five sectors outperformed the index, including basic industries, financial services, pharmaceuticals and chemicals, services, and telecommunications, media and technology. The aggregate net profit of companies in only three sectors had grown faster than that of the Nifty 200 index companies in the year-ago quarter.

 

The cumulative revenue from operations of the 191 companies grew almost 21% on year, the fastest since the September quarter of 2022 and higher than the forecast of 19% growth. Across the Nifty 200 index companies, only 11 reported a contraction in their top line for the quarter ended Jun. 30, down from 20 in the March quarter and 35 in the year-ago quarter.

 

For the June quarter, the combined top line of only energy and services companies outpaced the index. In contrast, combined revenue of five sectors, including consumer, financial services, pharmaceuticals and chemicals, services, and transport, had outperformed the Nifty 200 index in the year-ago quarter.

 

"Low base, INR depreciation, high commodity prices and FY26's consumption stimulus (GST cuts, RBI's regulatory easing) have propelled revenue growth higher. Hence, exporters, consumer companies and commodity sectors reported strong acceleration while that in capex-related sectors (industrials, cement, etc.) and BFSI were stable," Nuvama Institutional Equities said in a report earlier this week.

 

COSTS BITE

The 15-quarter high revenue growth was not enough to push net profit growth of Nifty 200 companies into double-digit territory, as rising costs played spoiler. Like revenue, aggregate expenses of these 191 companies grew at a 15-quarter high, led by input costs. Of these, only 117 companies disclosed the cost of materials consumed in their profit and loss statement.

 

Cost pressures on corporate India's earnings are visible in profit margins. The profit margin of the Nifty 200 index companies for the June quarter was 11.1%, down from 14.8% in the March quarter and 12.3% in the year-ago quarter. However, the gulf narrows once the profit is adjusted for one-time items. The adjusted profit margin for the reporting quarter was 11.4%, down from 12.9% a quarter ago and 12.3% a year ago.

 

Analysts said the impact of the supply shock created by the war in West Asia has yet to play out fully, as many companies have used up their low-cost inventory since the conflict began. 

 

SUB-INDICES' PERFORMANCE

The Nifty 200 index comprises the benchmark Nifty 50 index, Nifty Next 50, and Nifty Midcap 100. In the previous few quarters, profits for Nifty Next 50 and Nifty Midcap 100 companies largely grew faster than Nifty 200. However, in the reporting quarter, Nifty 200 index companies posted higher profit growth.

 

The Nifty Next 50 companies are the 50 large-cap firms that follow the Nifty 50. They reported a 3.0% year-on-year fall in net profit for the June quarter, much better than the expected 45.1?cline. Their top line grew 25.6% for the quarter, above forecasts of 19.0% growth.

 

The Nifty Next 50 companies and Nifty 50 companies combined to form the Nifty 100 index. These 100 large-cap firms posted a net profit growth of 9.1% on year for the June quarter, better than expectations for an almost 5?ll. Adjusted for one-time items, their combined net profit growth improved to 13.2%. Their revenue grew a touch over 21% on year, compared to expectations of 18.7%.

 

The other half of the Nifty 200 comprises midcap companies. The net profit of Nifty Midcap 100 companies for the June quarter grew almost 6% on year, better than expectations of a contraction of nearly 14%. However, their profit growth worsened to 2.2% once adjusted for one-time items. Revenue for these 100 companies grew almost 21% year on year for the reporting quarter, only mildly above expectations.

 

SECTORS

Companies in the transport and energy sectors were the only ones among the eight sectors to report a cumulative bottom-line contraction for the June quarter. Among the 20 energy companies that are a part of the Nifty 200 index, all three oil marketing companies - Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd., and Hindustan Petroleum Corp. Ltd. - reported a loss for the June quarter, driven by sharply negative marketing margins. Combined revenue of all energy companies grew 28% year on year for the quarter – the second-best after services companies.

 

Earnings before interest, tax, depreciation, and amortisation loss for oil marketing companies was lower than expected during the quarter. "We had anticipated a combined EBITDA loss of INR 610 billion, while OMCs reported INR 257 billion of EBITDA loss. The beat was driven by very high adventitious marketing gains and stronger-than-expected GRMs," Kotak Securities said. The gross refining margin tracks profits a company makes from transforming crude oil into usable fuels, while the marketing margin tracks the profit made from distributing and selling the oil at retail pumps.

 

The 18 transport companies that are a part of the Nifty 200 index reported a 13% on-year fall in net profit mainly because of weakness in Tata Motors Passenger Vehicles Ltd. and InterGlobe Aviation Ltd. Excluding these two laggards, the combined bottom line of the remaining 15 companies improved to a near-10% growth for the June quarter.

 

Apart from energy sector companies, only services sector companies outperformed the Nifty 200 in revenue growth. Their profit growth was also the best among the other seven sectors and was significantly higher than the Nifty 200 companies' combined profit growth. Eternal Ltd. drove this outperformance as its revenue more than doubled year on year, driven by strong performance in its quick commerce business. 

 

The following is a snapshot of all the companies (including those for which earnings estimates were not available) in the Nifty 50, the Nifty Next 50, the Nifty 100, the Nifty Midcap 100, and the Nifty 200 for the June quarter, along with year-on-year and sequential changes, in %, juxtaposed with the consensus estimates from the Informist Poll:

 

Indices	Revenue	Other Income	Total Income	Total Expenses	Material Cost	Employee Expenses	Depreciation	Finance Costs	Other Expenses	PAT	Adj. PAT
NIFTY 50	POLL: 18.55%										POLL: 10.31%
YoY	18.97	-7.42	16.05	18.62	27.59	9.73	8.86	4.85	11.70	13.91	17.40
QoQ	0.54	1.69	4.66	3.60	1.93	3.71	0.52	4.30	-5.71	-0.82	4.47
NIFTY NEXT 50	POLL: 18.99%										POLL: -45.06%
YoY	25.58	-3.77	22.18	27.20	54.00	5.62	14.07	5.10	14.16	-3.01	2.69
QoQ	12.07	-6.03	10.56	15.96	38.02	6.68	-4.64	3.11	-15.52	-25.19	-24.47
NIFTY 100	POLL: 18.70%										POLL: -4.85%
YoY	21.16	-6.48	18.03	21.53	38.36	8.93	9.93	4.94	12.32	9.05	13.19
QoQ	4.23	-0.46	6.56	7.68	15.66	4.26	-0.63	3.87	-8.45	-8.44	-4.99
NIFTY MIDCAP 100	POLL: 18.53%										POLL: -13.91
YoY	20.94	10.96	19.06	23.81	35.04	43.35	10.79	3.61	11.97	5.67	2.15
QoQ	2.11	1.08	2.15	6.31	10.70	32.69	-1.85	2.78	-8.03	-61.75	-29.06
NIFTY 200	POLL: 18.67%										POLL: -6.02%
YoY	21.12	-3.82	18.22	21.99	37.65	14.34	10.09	4.70	12.25	8.60	11.73
QoQ	3.81	-0.19	5.70	7.40	14.58	8.86	-0.86	3.67	-8.37	-22.27	-8.74

 

The following table shows the net profit margin of companies in the various indices as well as their net profit margin excluding exceptional items:

Profit Margin	Apr-Jun 2026	Apr-Jun 2026 (Adj)	Jan-Mar 2026	Jan-Mar 2026 (Adj)	Apr-Jun 2025	Apr-Jun 2025 (Adj)
Nifty 50	13.58%	13.98%	13.77%	13.45%	14.19%	14.16%
Nifty Next 50	8.91%	9.38%	13.34%	13.91%	11.53%	11.47%
Nifty 100	11.98%	12.40%	13.63%	13.60%	13.31%	13.27%
Nifty Midcap 100	7.28%	7.10%	19.45%	10.21%	8.34%	8.40%
Nifty 200	11.07%	11.37%	14.78%	12.93%	12.34%	12.32%

END

 

Data compiled by Vinod Bhovad

Edited by Saji George Titus

 

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