companies did not pass on to the consumers.
The companies in oil & gas and mining & metals sectors, and power producers were the biggest earnings drivers in Q2FY27 accounting for bulk of the incremental year-on-year (Y-o-Y) growth in overall earnings. In contrast, pharma, cement, fast-moving consumer goods (FMCG) and information technology (IT) services companies were laggards.
The combined adjusted net profit of 2,979 firms that reported earnings was up 29.8 per cent to a record high of around ₹4.92 trillion in Q2FY27 from around ₹3.8 trillion in Q2FY26 and around ₹4.57 trillion in Q1FY27, according to data from Capitaline.
Ebitda margins of the overall sample improved to a three-quarter high of 26.78 per cent (of total income) in Q2FY27 from a 13-quarter low of 25.94 per cent in Q1FY27, as the gains to commodity and energy producers from higher prices more than compensated for margins decline in user industries.
However, margins were down nearly 200 basis points (bps) from a record high of 28.03 per cent of total income in Q2FY26. Ebitda denotes earnings before interest, taxes, depreciation, and amortisation.
Commodities top the charts
Mining & metal producerssuch as Hindalco and Vedanta topped the charts and the sector combined adjusted net profit was up 61.9 per cent Y-o-Y in Q2FY27 to ₹37,603.3 crore. Oil & gas companies such as Indian Oil Company Ltd (IOCL) and Reliance Industries Ltd (RIL) also shone and their combined adjusted net profit was up 60.2 per cent Y-o-Y to ₹78,015 crore in Q2FY27. Power producers such as Adani Power, NTPC and Adani Green Energy Solutions also out-performed with 55 per cent Y-o-Y growth in sector combined adjusted net profit in Q2FY27.
Public sector undertaking IOCL was the single biggest earnings contributor, accounting for 12 per cent of the overall rise in corporate profits in Q2FY27 on a Y-o-Y basis. Its adjusted net profit was up 174 per cent Y-o-Y to a record high of ₹21,408 crore as it gained from lower excise duty and refining margins on transport fuels. Other big contributors were RIL (40.6 per cent Y-o-Y), ONGC (56 per cent Y-o-Y), Adani Power (134.3 per cent Y-o-Y) and TMPV (loss to profit in Q2FY27). Together, these five companies accounted for nearly 31 per cent of the overall rise in corporate earnings in Q2FY27 on a Y-o-Y basis.
Manufacturing, service sector margins fall
The firms in manufacturing and non-BFSI (banking, financial services, and insurance) services sectors, however, suffered from margin decline and relatively low growth in revenues and earnings. The Ebitda margins of companies ex-BFSI and commodities was down 450 bps Y-o-Y to a 16-quarter low of 16.7 per cent of total income in Q2FY27 from a record high of 21.1 per cent a year ago.
The combined adjusted net profit of companies excluding BFSI and commodities was up 19.5 per cent Y-o-Y to ₹1.69 trillion from ₹1.41 trillion in Q2FY26, but down from ₹1.73 trillion in Q1FY27 and ₹1.84 trillion in Q4FY26. Their combined net sales were up 21.5 per cent Y-o-Y to ₹22.16 trillion in Q2FY27 from ₹18.23 trillion in Q2FY26 and ₹20.76 trillion in Q1FY27.
The combined adjusted net profit of companies excluding commodity producers (oil & gas, mining & metals and power) was up 20.5 per cent Y-o-Y to ₹3.49 trillion in Q2FY27, from ₹2.89 trillion a year ago, but down from ₹3.55 trillion in Q1FY27 and record high of ₹3.65 trillion in Q4FY26. Their combined net sales were up 18.9 per cent Y-o-Y to ₹33.55 trillion in Q2FY27 from ₹28.22 trillion in Q2FY26 and ₹31.39 trillion in Q1FY27.
Pharma, cement earnings shrink
In contrast, pharma and cement firms reported a Y-o-Y decline in their combined net profit while earnings in FMCG and capital goods sectors grew in low-single digits. IT services firms also underperformed, recording 10.1 per cent Y-o-Y growth in Q2FY27 combined adjusted net profit.
In contrast, top laggards were mostly companies hit by high energy and commodity material prices such as Ambuja Cements, Bharat Petroleum Corp, New India Assurance, Glenmark Pharmaceuticals, REC Ltd, Suzlon Energy, Maruti Suzuki India Ltd, Grasim, Cipla and Dr Reddy’s among others. These companies reported a Y-o-Y decline in Q2FY27 net profits.