As we approach the Q2 FY26 earnings season, we maintain an optimistic outlook regarding certain sectors, including Non-Banking Financial Companies (NBFCs) specialising in gold lending, co-working spaces, quick service restaurants, life insurance, healthcare (comprising hospitals and diagnostics), as well as ferrous and non-ferrous metals. These segments are anticipated to deliver strong performance, driven by substantial earnings potential, a cyclical recovery, and a favourable macroeconomic backdrop. The Q2FY26 earnings season has started on a positive note, with 341 companies having declared results as of October 26, 2025. Since this accounts for less than 10% of listed companies, the current trends are initial and may change as more results are announced in the coming weeks.

Initial signs indicate that companies with a market cap of over INR 5,000 crore are experiencing positive growth, with median sales increasing by 9.8% and profits rising by 10.2% year-over-year. Most of the e…