New Delhi, Feb 23 || India Inc.’s earnings momentum remained resilient in Q3 FY26, with small‑cap companies posting the strongest growth, a report said on Monday.
The report from Equirus Securities said small caps delivered a robust 22 per cent year‑on‑year earnings surge, outpacing mid‑caps at 15 per cent and large caps at 14 per cent, signalling a broadening of the corporate earnings recovery.
Revenue grew 10 per cent YoY, while EBITDA and PAT rose 14 per cent and 15 per cent respectively, ahead of market expectations, across companies under its coverage, the report said.
Around 36 per cent of companies saw earnings per share (EPS) upgrades, reflecting improving business fundamentals and demand resilience across multiple industries. The upgrades were led by auto, banks & NBFCs, consumer durables, FMCG, and IT, while downgrades were concentrated in building materials, cement, infrastructure, chemicals, realty and retail, the report said.
The trend indicates growing investor confidence and improving forward earnings visibility across market capitalisation segments, it added.
Increasing number of firms from tier 2 and tier 3 towns have been tapping the capital markets, as founders look to grow and scale their businesses, said Ajay Garg, Managing Director, Equirus group.