India has started the first quarter of the financial year FY26. Many people are now watching the Nifty 50 earnings and quarterly results with great interest. The economy is changing fast. Some sectors are growing, while others are slowing down. Global trends are also affecting the market. So, the big question is: How will India’s top 50 companies perform this quarter? This earnings season is important. It can give us a clear picture of where the market is heading. In this detailed guide, you’ll get quick insights into sectors like banking, IT, energy, and consumer goods. Whether you are an investor, a trader, or just someone who follows the market, this guide will help you stay updated.
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Q1 FY26 Market Update: What’s Going On?
India’s economy is off to a good start in FY26. Growth is steady. Two things are helping the most: people are spending more, and the government is building a lot of new infrastructure.
- Inflation is coming down slowly. The RBI has not raised interest rates lately. This makes borrowing easier and keeps money flowing in the economy. Businesses and people are both feeling more confident.
Outside India, things are not as strong. Global markets are facing many challenges. There are trade talks, rising oil prices, and changes expected from the US Fed. These make investors cautious.
- Export-based sectors like IT and manufacturing are under pressure. But companies that sell mostly in India are doing better.
- The stock market has done well so far. The Nifty 50 went up by 8.5% in the first quarter. Mid-cap and small-cap stocks did even better, rising 10.7%. This came after a drop at the end of FY25.
- In Q1 FY26, Nifty 50 companies are expected to grow their earnings by 4% to 7% compared to last year. This is less than the full-year estimate of 10% to 12%. Still, many experts think this quarter is important. It could be the start of better and stronger growth in the coming months.
But there is one concern that stock prices are high. The Nifty is trading at 21.2 times its expected earnings. This is above normal. Unless company profits grow soon, prices may not keep rising.
Why Reliance Is Important This Quarter
Reliance Industries is one of India’s biggest companies. Many people watch it closely. When Reliance shares its earnings, it shows how the economy is doing. This quarter, Reliance is very important. It works in many areas. These include oil, chemicals, retail stores, digital services like Jio, and green energy. Because Reliance is involved in many businesses, its results tell us about different parts of the economy.
When Reliance does well, investors feel good. It often sets the mood for other big companies in the Nifty 50. Watching Reliance helps us understand the whole market better. Let’s now explore the sector-wise quarterly results
Sector-Wise Nifty 50 Companies Quarterly Results
Here, we will define different sectors and its earring preview.
1. IT Sector in Q1 FY26
The IT sector in India is growing, but at a slower pace. In Q1 FY26, earnings are expected to rise by 6% to 7% compared to last year. This is lower than the usual growth. Why is growth slow? Because of global issues. Many clients are spending less. Projects are getting delayed. Tech budgets are tight.
Company Highlights
- Wipro earned ₹22,135 crore in revenue. That’s only 0.8% more than last year. Compared to the last quarter, revenue went down by 1.6%. However, profit increased by 9.8% due to cost savings.
- LTIMindtree had a strong quarter. Its revenue in dollars grew by 12.6%. It also got new deals worth $1.63 billion, which is 17% more than before.
- TCS is important to watch. It often sets the tone for the IT sector. But early signs show fewer deals and slow client activity this quarter.
For Q2 FY26, most IT companies expect flat growth. Revenue might go up or down by just 1%. This shows that clients are still being careful with their spending.
2. Banking and Finance Sector
The banking and finance sector is showing mixed results in Q1 FY26. Let us show you how.
- Private Banks: Large private banks are likely to see a small decline in profits. Earnings may drop by around 2% compared to last year. This is due to narrower net interest margins, higher bad loans (slippages), and slow growth in lending.
- Public Sector Banks: Public sector banks are expected to perform better. They are seeing stronger loan growth and lower cost of funds. As a result, this may help them deliver better profits than private banks.
- NBFCs (Non-Banking Finance Companies): NBFCs are expected to grow earnings by about 8% year-on-year. This growth is supported by improved liquidity and lower borrowing costs. These factors are helping NBFCs increase lending and profits.
3. Oil & Gas
The Oil & Gas sector has reported impressive numbers in this quarterly result. Companies like Reliance, ONGC, and IOC are expected to post over 40% growth in profits. This strong performance is due to better refining margins and inventory gains.
Reliance Industries (RIL): Strong Q1 Performance
Net Profit: ₹26,994 crore — a 78% increase from last year. This growth was supported by the Asian Paints stake sale and strong quarterly results from Jio and Retail.
EBITDA: ₹58,024 crore — up 36% year-on-year. The EBITDA margin improved by 460 basis points, reaching 21.2%.
Oil-to-Chemicals (O2C): The segment remained stable with solid domestic demand and better margins.
Retail: Customer base reached 358 million. Reliance also added 388 new stores during the quarter.
Jio: Continued strong growth. It now has 200+ million 5G users, 20 million home connections, and JioAirFiber has become the global leader in fixed wireless access with 7.4 million subscribers.
4. Automobiles & Components
The auto sector may see a 10% drop in earnings this quarterly results. There are key reasons include:
- Weak rural demand
- Intense price competition
- Fluctuating raw material costs
5. Metals & Mining
Earnings in metals could fall by 4% YoY. If we talk about steel and non-ferrous companies, they are impacted by lower global demand, oversupply, and reduced price realizations.
6. Cement & Infrastructure
Cement companies are expected to report a 35% increase in profit. However, this growth is driven by higher sales volume, lower input costs, and better pricing in some regions. Infrastructure firms are seeing steady demand.
7. Real Estate
Real estate is among the top-performing sectors in these quarterly results. Profits may rise by 40% YoY, supported by strong housing demand, higher average selling prices, and new project launches
8. Retail & FMCG
Retail companies could post 23% YoY growth.
- Growth is being driven by:
- Expanding organized retail
- Improved online and offline integration
And, if we talk about FMCG and consumer goods, they may see low single-digit growth.
Margins are under pressure due to:
- Weak rural demand
- Higher promotional spending
9. Utilities, Telecom & Healthcare
- Utilities may report marginal growth, as input costs remain volatile.
- Telecom is showing a positive shift. The sector may return to profit, supported by subscriber growth, especially from Jio.
- Healthcare continues to grow steadily. Profits are expected to rise in double digits, backed by consistent domestic demand.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before investing
What Investors Need to Know About Nifty 50 Q1 FY26?
As companies report their Q1 results, investors are looking closely at earnings and stock prices.
1. Earnings Growth vs. Valuation
Nifty 50 companies are expected to grow earnings by 4% to 7% this quarter. However, the Nifty is trading at a high valuation of about 21.2 times forward earnings. This is near a record level. The Nifty has also gained 8.5% so far this year. When stock prices rise faster than earnings, the market may pause unless profits improve soon.
2. Mid and Small-Cap Stocks Are Doing Better
Mid and small-cap companies are showing stronger profit growth, often above 10%. Moreover, this growth is due to a low base last year and strong performance in certain sectors. Investors are paying more attention to these companies beyond the Nifty 50.
3. Key Points for Investors
Q1 FY26 quarterly results is called a “crossover quarter”, signaling a possible move to stronger profit growth ahead.
- Profit growth is spreading across sectors.
- Only automobiles and metals are expected to see a decline in profits.
- Last year, six sectors posted losses.
The market remains sensitive to global and domestic factors like:
- US-India trade talks
- Changes in oil prices
- US Federal Reserve decisions
- Government policies in India
Conclusion
The Q1 FY26 quarterly results feel like a fresh start for the Nifty 50 after a few quiet months. While earnings haven’t surged overall, Jarvis Invest AI highlights positive momentum building beneath the surface. More sectors and companies are showing real improvement—a promising sign for the broader economy. Reliance Industries stands out, with strong profits across its diverse businesses, boosting investor confidence. According to Jarvis AI insights, this quarter marks a potential turning point, setting the stage for stronger growth through the rest of the year.
If you’re looking to act on the trends revealed in this quarter’s earnings, Jarvis Invest can help. Its AI-powered platform analyzes quarterly results, identifies opportunities, and builds a personalized equity portfolio based on your risk profile and financial goals.
Frequently Asked Questions
Read all the additional questions that will be beneficial for you to have in-depth knowledge.
Q1. Why is earnings growth expected to be modest this quarter?
Ans. Earnings growth may be slow because of global economic uncertainty. Clients are spending carefully. Some sectors also face specific challenges.
Q2. Which sectors are expected to perform well in Q1 FY26?
Ans. Oil and gas, real estate, electronics manufacturing, cement, and retail sectors are expected to do well. Moreover, they should see good profit growth.
Q3. Which sectors might face challenges this quarter?
Ans. Automobile sector, metal sector, large technology companies, and consumer goods may have slower growth. They might also see pressure on profit margins.
Q4. How does Reliance Industries’ performance affect the market?
Ans. Reliance Industries is a major company. Its strong profits help boost market confidence. As a result, this influences how investors feel about the market.
Q5. What does “crossover quarter” mean for Q1 FY26?
Ans. A crossover quarter means this quarter could be a turning point. Earnings may start growing steadily after slower growth in past quarters.
Q6.What is a quarterly result?
Ans. A quarterly result is a three-month financial report showing a company’s revenue, profit, and performance. It helps investors track growth and make stock decisions.
Q7.How to check share quarterly results?
Ans. Quarterly results can be found on company websites, NSE/BSE, or platforms like Moneycontrol. Look under the “Financials” or “Investor Relations” section.
Q8.Does the share price increase after quarterly results?
Ans. Share prices may rise if quarterly results exceed market expectations. However, weak results or a negative outlook can cause a decline.