The first-quarter earnings season for India Inc. has concluded with 26 companies in the NIFTY 500 index posting over 50% year-on-year growth in both profit after tax (PAT) and revenue, emerging as clear top performers in the June quarter. According to Capitaline data compiled by BS Research Bureau, this performance signals a recovery in corporate profitability with favourable base effects, stronger domestic activity, government capex and operating leverage aiding the mid and small-cap (SMID) companies' results. However, analysts emphasize that investors should examine whether earnings growth is driven by core operations or non-operating factors, as higher other income components can lift net profit without corresponding revenue increases.
Neuland Laboratories reported the most dramatic transformation with consolidated net profit growth of 962% to ₹148 crore in Q1FY27, while revenue rose by 116% to ₹642 crore. The company had reported a net profit of only ₹14 crore in the same period last year. As reported by the company, the performance was in line with expectations with encouraging performance from both Custom Manufacturing Solutions (CMS) and Generic Drug Substances (GDS) businesses. CEO Saharsh Davuluri noted exciting developments in pipeline projects and stronger customer conversations, with the company focusing on building customer confidence and establishing long-term partnerships. The stock has emerged as a top performer, rising 85.5% during the ongoing financial year.
CreditAccess Grameen delivered exceptional results with net profit surging 720% to ₹493 crore compared to ₹60 crore in the same period last year, while revenue from operations advanced 22% to ₹1,714 crore. The microfinance lender's assets under management grew 16% to ₹30,319 crore, and disbursements during the quarter advanced 12% to ₹6,107 crore. According to Ganesh Narayanan, Managing Director and CEO, retail finance now constitutes 20.6% of AUM, up from 18.1% a quarter ago, driven by graduation of long-vintage customers into secured, higher-ticket products.
According to Motilal Oswal Financial Services analysis, only two large-cap names — Eternal and Jio Financial — featured on the list of 26 NIFTY 500 stocks that delivered over 50% growth in both PAT and revenue. The mid-cap universe posted earnings growth of 23% YoY marking an 11-quarter high, while the small-cap universe delivered 31% YoY growth. Several mid and small-cap companies such as MCX, Bharat Dynamics, OFSS, Groww, Oil India, BSE, Netweb Technologies, and Hindustan Copper made the cut. Harshal Dasani from INVasset PMS explained that structural reasons explain why smaller companies dominate - the base effect where a company doing ₹250 crore of revenue can double while a ₹50,000 crore business cannot, and thematic purity where small-caps are often single-theme bets.
PTC Industries delivered strong consolidated growth with net profit jumping 466% to ₹292 crore from ₹52 crore year earlier, while revenue from operations increased 97% to ₹191.79 crore. The company's performance was supported by scaling advanced manufacturing programmes, execution across aerospace and defence applications, and increasing contribution from its integrated materials and components platform. During the quarter, wholly owned subsidiary Aerolloy Technologies reported total income of ₹74.27 crore with EBITDA margin of 45.0% and PAT of ₹22.08 crore, representing 322.9% year-over-year growth.
The share price performance of these companies has been promising, with only one stock, Great Eastern Shipping Corporation, shedding 8% in the ongoing financial year as of August 18 close. Oil India remains unchanged, while other stocks have risen between 10-115%, with RR Kabel emerging as the top performer, followed by Syrma SGS Technology (up 93%), Aditya Infotech (up 86%), and OFSS (up 73%). Vinit Bolinjkar from Ventura believes this performance by 26 companies should be viewed selectively, as part of the acceleration reflects weak comparables and company-specific factors rather than a uniform broad-based recovery. Analysts believe stock selection should increasingly favour businesses capable of delivering sustainable 15-25% revenue growth, earnings upgrades and improving return ratios, with durable themes including defence, electrification, pharma CDMO, and financialisation platforms.
