India’s corporate earnings are recovering at the strongest rate in over a year, supported by cooling inflation, tax cuts and monetary-policy measures that have helped broaden the rebound in consumption, Reuters reports. Bombay Stock Exchange (BSE) 500 companies posted 16.6% income growth in 2Q 2026, up from 10.7% in the 1Q. Retail inflation fell to 0.25% in October, the lowest on record, driven by a sharp fall in food prices and lower taxes on consumer goods.

A 10-quarter high? Brokerage Jefferies told Reuters that its coverage universe recorded a 10-quarter high in revenue growth, helped by festive spending and higher lending activity.

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Who’s doing well? Bottom-line growth was led by telecom operators, oil marketing companies, metal producers, technology firms, non-bank lenders, cement makers, and capital-goods players. Autos lagged due to weaker numbers from India-based Tata Motors, while large banks also underperformed.

Around 40% of Nifty 50 companies beat earnings estimates, while 28% missed them. For constituents of the MSCI India index, revenue rose 8% y-o-y and net income increased 9% y-o-y, with nearly half outperforming analyst expectations.

Big contributors: Telecom operators Bharti Airtel, steelmaker Tata Steel, Indian conglomerate Reliance Industries, lender HDFC Bank, and IT-services tech firm Tata Consultancy Services were among the largest contributors to quarterly earnings, the newswire added.

IN CONTEXT- India’s listed market capitalization remains near the INR (USD 5 tn) mark, keeping the country among the world’s largest equity markets, according to CEIC data. Inflation is softening and earnings are broadening across sectors, making the durability of the recovery critical to sustaining momentum in mid- and large-cap indices, the newswire added.

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