Moneycontrol Pro Panorama | A steady start to Q3 earnings season

Performance is not uniform across the companies.

Dear Reader,

The Q3 FY26 earnings season got off on a steady note amid a volatile global situation and new tariff threats from US President Donald Trump. Provisional updates from Axis Bank, Bank of Baroda, Kotak Mahindra Bank, Bandhan Bank and AU Small Finance Bank show a healthy growth in loans in the December quarter.

In the consumer and the retail sectors, Marico and FSN E-Commerce (Nykaa) alluded to 20 percent plus growth rates in their businesses. Real estate company Sobha clocked record sales—up 52 percent in Q3 FY26.

Of course, performance is not uniform across the companies. Loan growth at HDFC Bank, while steady, grew at a moderate pace. 

Updates from Dabur India, Trent and Avenue Supermarts are relatively less exciting and lagged estimates. Even so, their headline numbers are not way off the mark. Net advances declined at IndusInd Bank, reflecting the company specific issues, which is largely expected. 

The updates till now show a relatively stable December quarter for banks and consumer sectors. Consumer staple companies have withstood the impact of GST rate cut transition—liquidation of old price inventories and re-stocking by dealers. Passenger vehicle and two-wheeler sales picked up pace in Q3, helped by GST rate cuts and price reductions by vehicle manufacturers.

The pharma sector ended the year 2025 on a good note in India — sales in the domestic market are up 10.59 percent in December.

More importantly, consumer staples companies — Dabur India and Marico — expect a steady environment. “We remain optimistic about a gradual improvement in consumption in the quarters ahead, supported by easing inflation, lower GST rates driving affordability, MSP hikes, and a healthy crop sowing season,” Marico said in Q3 FY26 update.

That said, readers should note that a large number of companies are yet to release their results for the December quarter. Major sectors such as pharma and IT services are expected to report moderate performance. The financial show of pharma companies is expected to be weighed down by slower launch of new products in the US.

Elsewhere, commodities, metals and oil and gas companies will also play a determining role on overall earnings. One should also watch out for the impact of high US tariffs on goods and merchandise exports from India.

Even so, the lack of major negative surprises in the quarterly updates till now holds out hope for investors. 

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