Indian companies in the Nifty 500 posted strong profit and revenue growth in the June quarter, driven by metals, financials, and telecoms, while energy stocks struggled and smaller firms outpaced large caps in a widening market recovery.
India’s broad market delivered a solid earnings season in the June quarter, but the headline numbers conceal a sharp split between energy stocks and the rest of the index. According to reports from The Times of India and Informist Media, companies in the Nifty 500 posted 13% year-on-year profit growth, while the figure rose to 23% once oil marketing companies were left out, the strongest reading in two years. Informist also said revenue growth for the index, excluding oil marketing companies, reached its highest level in 15 quarters, even as heavier costs slowed the pace of net profit expansion.
The weakest link was the oil marketing group, which was hit by higher crude prices and limited room to pass on costs, according to the reports. Together, these firms posted a loss of ₹18,100 crore, reversing a ₹16,200 crore profit in the same period a year earlier. The pressure stemmed in part from geopolitical tension in West Asia, which pushed up input costs and squeezed margins.
Elsewhere, the quarter was marked by strong gains in metals, financials and telecoms. The Times of India said metals recorded 57% earnings growth, extending a run of four straight strong quarters, while telecoms jumped 384%. Banks and non-banking financial companies also posted healthy gains, with earnings rising 15% and 27% respectively, helping offset a 1% decline in cement profits. Business Standard and 5paisa both reported that 26 Nifty 500 companies delivered more than 50% growth in both profit and revenue, most of them mid- and small-cap names.
That pattern fits a broader theme of smaller companies outpacing the large caps. The Times of India said mid- and small-cap firms continued to grow faster than bigger peers, while Business Standard noted that only two large-cap names, Eternal and Jio Financial, made its list of the strongest performers. The Nifty 500 itself is designed to cover a wide slice of the Indian market, representing roughly 92% of free-float market capitalisation on the National Stock Exchange, according to Nifty Indices. Even so, analysts caution that the recovery remains uneven, with elevated valuations in smaller stocks, dependence on a few strong sectors and the risk of softer rural demand still worth watching. Moneycontrol has also reported that manufacturing and investment-linked areas are helping drive a broader earnings revival, suggesting the market’s growth base may be widening beyond consumption alone.
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