Large Caps Outperform Mid And Small Caps AMID Mixed Sectorral Performance in March Quarter: Report

India Inc. Concluded the March Quarter Earnings Season on a Healthy Note, with Corporate Results Exceding Street Expectations and Marking a Turnaraound after Three Consecutable Quarters of Subdued Growth. The improvement was brought careless by lower input costs and easy inflation, which supported operating operational profitability across sector.

Large-Cap Companies Led the Earnings Recovery, Outperforming Their Mid- and Small-Cap Counterparts. According to a Recent Analytical Report by Brokerage Firm Equirus Securities, The Overall Ebitda and Earnings for the March Quarter Surpassed Expectations by 4% and 5%, Respectatively. This translated into year-on-year (yoy) growth of 6% in ebitda and 4% in earnings, while Revenue Revenue Remained Largely in Line with a 5% Yoy Increase.

A Breakdown by Market Capitalization Reveled a Clear Divergence in Performance. Within the Equirus Universe of 270 Companies, Large Caps (54 companies) posted a healthy 6% yoy earnings growth. Mid-Cap Companies (68) Showed A Modest 2% Increase, While Small Caps (148) Witnessed A Sharp 16% Yoy Decline in Earnings. This Disparity Highlights a flight to quality and a consolidation trend favorite life, more resilient businesses in a challenging macroeconomic environment.

Excluding Oil Marketing Companies (OMCs), The Equirus Universe reported ebitda and earnings growth of 5% and 3% yoy, respectively. Notably, the ex-BFSI (Banking, Financial Services, and Insurance) Group delivered Stranger Growth of 7% and 6% Yoy in Ebitda and Earnings. Sector Such as Retail, Pharmaceuticals, Capital Goods, and Consumer Durables Demonstrated Strong Operating Profit Growth. In Contrast, FMCG, Infrastructure, IT, and Auto Sector Registered MUmed Performance.

Approximately 28% of the companies Saw upgrades in earnings per share (EPS) Estimates for FY26, LED by Robust Results in Capital Markets, Chemicals, Defense, Metals, and Textiles. Meanwhile, Consumer Durbles, FMCG, and Building Materials Sector Experienced EPS Downgrades, Signaling Potential Challenges Ahead for these Industries.

MUmed Demand, Rising COTS BLD TEST SECTORS

Looking ahead, Equirus Securities offers a cautally optimistic outlook, as it believes some sector may continue to face challenges from pricing pressures, input costs, and Demand Volatitityy.

Strategic Initiatives Like Cost Savings, New Product Introduction, and Market Examsion efforts are expected to Support Overall Profitability and Growth. The performance of large caps reinforces their resilience in a dynamic market, suggesting continued stability in the near term, it added.

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