Net profit of Non-Nifty 50 companies increased by 22.5% to ₹1.81 lakh crore in Q2FY26, while Nifty 50 profit grew by only 1.2%. Companies from the energy, commodity, and BFSI sectors contributed to this b performance.
Stock Market: In the second quarter of Q2FY26, the net profit of Non-Nifty 50 companies surged by 22.5% year-on-year to ₹1.81 lakh crore. This marks the fastest growth in seven quarters. Non-Nifty 50 companies have shown consistent improvement in profits over the last three quarters, outperforming Nifty 50 companies this time.
Recovery in Revenue and Net Sales
The July–September 2025 quarter saw a slight recovery in the revenue growth of Non-Nifty 50 companies. Total net sales or gross interest income rose by 8% to ₹20.69 lakh crore, reaching a five-quarter high. In the previous quarter, Q1FY26, it stood at ₹20.37 lakh crore. Overall, these companies accounted for 50% of the total net profit of all listed companies in Q2FY26, up from 45.2% in Q2FY25 and 46.3% in Q1FY26.
Reasons for Non-Nifty 50 Companies' Profit Growth
The increase in profit primarily stemmed from the improved performance of companies in the energy and commodity sectors, such as Indian Oil, Bharat Petroleum, and Ambuja Cement. Additionally, the BFSI sector and telecom companies like Samman Capital, IDBI Bank, Vodafone Idea, Muthoot Finance, and Suzlon Energy also contributed. Indian Oil and Bharat Petroleum alone accounted for 40% of the total annual profit of Non-Nifty 50 companies. The top 5 companies contributed 60% to the overall growth.
Growth Excluding BFSI and Commodity Sectors
Excluding BFSI and commodity companies, the combined net profit of Non-Nifty companies grew by 14.2% year-on-year in Q2FY26, compared to 7.1% in Q1FY26 and 16.4% in Q2FY25. Net sales for this segment increased by 10.2% year-on-year, marking the fastest growth in 10 quarters.
Slower Performance of Nifty 50 Companies
In contrast, the net profit of Nifty 50 companies grew by only 1.2% in Q2FY26, representing the slowest growth in three years. Net sales also increased by just 6.4%, which was the weakest growth in the past 17 quarters.
Analysts' Views
Analysts state that the b performance of Non-Nifty companies indicates better growth momentum in mid-cap and small-cap stocks. Motilal Oswal reported that 17 out of 20 key sectors showed profit growth. Oil marketing companies dominated, and the top 10 profit contributors included the Oil & Gas, Metals, Financials, and Telecom sectors.
According to Elara Capital, the overall Q2FY26 results were better than expected, particularly due to the Energy, Cement, and Metal sectors. However, the upgrade-to-downgrade ratio leaned towards downgrades. Among the companies they cover, 46 received earnings upgrades, while 31%, or 84 companies, received FY27 PAT downgrades. The next two quarters will determine whether this profit momentum is sustainable.
