Midcap companies emerged as the strongest performers in the March quarter earnings season, with profit growth comfortably outpacing both largecaps and smallcaps, according to Motilal Oswal Financial Services' Q4FY26 India Strategy report. By May 6, 2026, results were in for over 154 companies, including 28 Nifty 50 firms, representing 39% of India's market cap and 67% of the Nifty's weight. Within the MOFSL universe, midcap companies posted a 29% year-on-year earnings growth, ahead of the brokerage's estimate of 22%. In comparison, large-cap companies reported earnings growth of 14% year-on-year, broadly in line with expectations, while smallcaps delivered a 30% rise in earnings, slightly below the estimate of 33%.
The brokerage said sectors such as BFSI, technology, utilities, real estate and oil & gas drove the strong performance in the midcap segment, contributing nearly 87% of the incremental year-on-year earnings accretion. However, Cement and Telecom remained the key laggards within the segment. Execution also remained healthy across the midcap space, with 84% of the companies under MOFSL's coverage either meeting or exceeding estimates, compared with 76% for largecaps and 70% for smallcaps. Within the smallcap universe, sectors including chemicals, cement, capital goods, technology and non-lending NBFC weighed on overall performance, while NBFC lending, private banks, automobiles, healthcare and retail posted strong earnings growth and together contributed around 129% of the incremental earnings accretion.
Among Nifty companies, 28 firms have declared results so far, posting aggregate earnings growth of 7% year-on-year, slightly ahead of MOFSL's estimate of 6%. Excluding Reliance Industries, which reported a 13% decline in profit, the Nifty universe recorded earnings growth of 11%. The Nifty group's earnings grew 7% year-over-year, slightly above a 6% forecast, with Reliance Industries' 13% profit drop significantly impacting this figure. The brokerage said earnings growth within the Nifty was largely driven by HDFC Bank, Infosys, TCS, M&M and Coal India, which together contributed 73% to the incremental year-on-year earnings growth. Meanwhile, Reliance Industries, Maruti, Wipro, Axis Bank and Jio Financial Services weighed on overall Nifty earnings.
Alldigi Tech Limited is drawing investor attention following its audited FY26 results, with the stock trading at ₹841.45 with a 1.25% intraday gain despite a 16.8% decline in Q4 standalone Profit Before Tax to ₹12.86 crore from ₹15.46 crore year-ago. The company reported consolidated revenue of ₹598.7 crore for FY26, representing a 9.6% increase from ₹546.3 crore in FY25, with the Human Resource Outsourcing segment contributing ₹156.2 crore as its higher-margin business. Standalone net profit rose 6.6% to ₹73.82 crore for the full year, while the company completed its transition from 'Allsec Technologies' to 'Alldigi Tech' brand. Investors are focusing on the company's exceptional dividend yield of 7.13% after paying ₹91.43 crore in dividends, a 33.5% increase from the previous year, despite one-time rebranding costs of ₹3.79 crore impacting Q4 performance.
