Nifty 500 cos report 16% profit growth in Q3, highest in 8 quarters

New Delhi: The corporate earnings in India have shown strong momentum, with profits of companies in the Nifty 500 index rising 16 per cent year-on-year (YoY) in the third quarter of FY26 -- an eight-quarter high and one of the strongest reporting seasons in recent years, a report said.

The latest reporting season reflects a broad-based recovery in profitability, which provides a more supportive foundation for equity markets going forward, according to Bajaj Finserv AMC report.

However, the data showed that domestic equity markets have remained largely range-bound for nearly 18 months despite a strong bull run in several global markets, although improving domestic fundamentals have started easing some of the earlier headwinds.

“Corporate earnings momentum has strengthened meaningfully over the past few quarters.

The latest reporting season reflects a broad-based recovery in profitability, which provides a more supportive foundation for equity markets going forward,” said Sorbh Gupta, Head-Equity at Bajaj Finserv Asset Management Limited.

Other domestic indicators have also improved. Credit growth has returned to double digits, reflecting stronger demand and improved liquidity, while consumption indicators have begun recovering following GST cuts, the report said.