Business · India Bureau
ONGC, SAIL, Credit Access Grameen Lead Q1 Earnings Growth
Major state-owned enterprises and microfinance firms have emerged as key drivers of Nifty-500 earnings expansion in the June quarter, with profit growth ranging from doubling to eight-fold increases. The diverse performance across large, mid and smallcap segments reflects broad-based strength in India's corporate earnings.
LSN India ·
India's equity market saw substantial earnings momentum in the first quarter of the financial year, with companies spanning the energy, steel and financial services sectors posting significant profit growth. Oil and Natural Gas Corporation (ONGC) more than doubled its profits during the period, capitalizing on higher crude prices and increased domestic production. State-owned Steel Authority of India (SAIL) also demonstrated robust performance, while microfinance player Credit Access Grameen posted an exceptional eight-fold jump in earnings.
The Nifty-500 index, which captures large, mid and smallcap companies, benefitted from this diversified earnings expansion across multiple sectors and market segments. The strong performance reflects improved operational efficiency, higher commodity prices in certain sectors, and growing demand for financial services across the domestic economy.
Analysts attribute the broad-based earnings growth to post-pandemic recovery momentum and supportive macroeconomic conditions. The participation of both state-owned enterprises and private sector players suggests a balanced recovery trajectory that extends beyond any single industry or market segment. This diversity in earnings drivers provides a foundation for continued market strength in coming quarters, subject to inflation management and monsoon performance.