Strong Q2 earnings lift India’s mid- and small-cap stocks as revenue jumps 20%
Strong June-quarter earnings for India's mid- and small-cap companies show broad-based revenue and profit growth despite higher input costs, supporting risk appetite and helping justify elevated valuations. Outperformance of mid/small-cap indices versus large caps underscores domestic growth momentum and sector breadth (metals, tech, pharma, chemicals, industrials). The resilience to commodity price pressures reduces near-term margin concerns and can influence broader EM allocation sentiment.
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▲ Bullish
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India’s mid- and small-cap companies posted strong June-quarter earnings, led by a 20% year-on-year rise in aggregate revenue among Nifty MidCap 150 constituents, a 16-quarter high. Operating profit rose 27%, extending a run of double-digit growth to 13 quarters. Aggregate net profit increased 23%, marking a second consecutive quarter of double-digit growth despite a 17.2% rise in total costs.