India’s economy grew 6.7% in Q1FY26, according to ICRA estimates – a slower pace of growth. Signs of a muted economy showed up in corporate performance, as India Inc. recorded its fifth straight quarter of single-digit earnings growth. This was largely due to weakness in the IT and manufacturing sectors. 51 companies transitioned from profit in Q4FY25 to losses this quarter.

Domestic support from government spending, liquidity, and RBI policy helped stabilise the economy, but global upheaval, including Trump's proposed 50% tariffs, volatile crude oil prices, and changing interest rates, have made CEOs cautious.

Emkay Global’s Seshadri Sen noted, “The broader market delivered weak earnings for Q1FY26, though trends did not worsen significantly. We see this as the bottom for the cycle, and expect a recovery from H2FY26, led by consumer discretionary spending.”

According to Trendlyne’s Results dashboard, more than 58% of Nifty500 companies have reported positive net profit growth for the quarter ending June 30. This Chart of the Week looks at industries with strong YoY growth in revenue and net profit. The major industries include investment companies, hotels, gems & jewellery, internet software & services, and finance. 

Strong portfolios give investment companies a boost

In Q1FY26, investment companies significantly outperformed other industries, boasting an 86.4% rise in revenue and a 47% increase in net profit YoY, thanks to strong portfolio gains. Sundaram Financial Holdings, Maharashtra Scooters and Summit Securities saw the highest growth.

Sundaram Financial Holdings' Q1FY26 revenue jumped 317.8% and net profit grew 42.4% YoY, due to rising investments. The company significantly increased its direct holding in Axles India to 63% from 38.8%, taking its effective holding to 89.4% in April, allowing for full financial consolidation. The sale of 5.6 lakh TVS Holdings shares for Rs 301.4 crore contributed to its revenue and profit.

Both Maharashtra Scooters and Summit Securities also reported strong Q1FY26 performances, driven by gains in their portfolios. Maharashtra Scooters’ revenue grew 279.2% and net profit soared 328.1% YoY, with an additional boost from an 82.6% cut in expenses. Summit Securities reported a 32.2% increase in revenue and a remarkable 585.5% surge in net profit, benefiting from a low Q1FY25 base that included a divestment-related loss.

Hotels see higher room rates and occupancy in Q1FY26

Strategic moves, including expansion into Tier 2 and 3 cities and a shift from property ownership to management contracts, propelled the hotels industry's Q1FY26 performance. It reported a 38.1% rise in revenue and an impressive 82.5% increase in net profit YoY.

The industry is witnessing strong demand for domestic travel, MICE events, weddings, and business travel. Indian Hotels, Chalet Hotels and ITC Hotels emerged as the top performers this quarter.

Leading the hotels industry, Chalet Hotels’ Q1FY26 revenue climbed 147.8% and net profit surged 234.9% YoY, exceeding Forecaster estimates by 101.2% and 196.4%. Strong hospitality segment performance, marked by higher average room rates (ARR) and revenue per available room (RevPAR), drove revenue growth. An additional boost of Rs 439.1 crore in residential project sales further strengthened the top line.

Sanjay Sethi, MD and CEO of Chalet Hotels, noted, "We expect double-digit RevPAR growth over the next 3-4 years, driven by a strong travel ecosystem within India, both on the leisure and business sides."

In Q1FY26, ITC Hotels’ revenue increased by 15.5% and net profit by 53.8% YoY, surpassing Forecaster estimates for both. Indian Hotels also reported growth, with revenue up 31.7% and net profit rising 19.3%, though its net profit fell short of estimates. Higher domestic travel led to increased average room rates (ARR) and revenue per available room (RevPAR), driving growth at Indian Hotels.

A strong wedding season and rising gold prices drive growth for the gems & jewellery industry

Strong domestic demand, driven by the wedding season and higher gold prices, propelled the gems & jewellery industry to a 24.3% revenue increase and a 43% net profit jump YoY in Q1FY26. Export growth, however, was tempered by anxieties surrounding the new US tariffs. Key players, including Titan, Kalyan Jewellers, and PC Jeweller, led growth.

Titan’s Q1FY26 revenue jumped by 24.6% and net profit by 52.6% YoY, beating Forecaster estimates. Healthy performance across its jewellery, watches, and eyewear segments fueled this growth. Jewellery led the gains, benefiting from demand during the wedding season and higher average transaction values resulting from rising gold prices. Robust sales volumes and a favourable shift to higher-margin products further boosted profitability.

CK Venkataraman, Managing Director of Titan, said, “In light of the tariffs, Titan is exploring a Middle East Gulf country as a manufacturing base to export to the US."

Kalyan Jewellers’ Q1FY26 revenue grew 31.3% and net profit increased 48.6% YoY, surpassing Forecaster estimates. Aggressive store expansion and strong sales at existing stores drove this growth. Meanwhile, PC Jeweller’s revenue and net profit rose 80.7% and 3.8% year-over-year, benefiting from a low base in Q1FY25.

Core business momentum powers growth in internet software & services 

In Q1FY26, the internet software & services industry’s revenue and net profit grew by 22.3% and 4,230.1% YoY, fueled by AI-driven operational efficiencies and strong performance in key segments like digital payments, insurance tech, and gaming. Nazara Technologies, One97 Communications (Paytm) and PB Fintech were at the forefront of these gains.

Nazara Technologies delivered mixed but strong results in Q1FY26 – revenue jumped 99.4% and net profit rose 136.2% year-over-year. While revenue missed Forecaster estimates, net profit exceeded them. Better performance in its gaming, e-sports, and ad-tech segments boosted its top-line. The gaming segment surged 159.6% YoY, due to strong contributions from Fusebox and Animal Jam.

However, Nazara Technologies’ stock fell 18.9% last week after the company suspended real-money gaming operations following the passage of the Online Gaming Bill, 2025, which bans money games, ads, and payments, posing major risks to the sector.

One97 Communications’ revenue climbed 27.7% and net profit soared 114.6% YoY in Q1FY26, propelled by growth in subscription merchants, gross merchandise value, and financial services. The company also improved its profitability by utilising AI to reduce expenses in marketing, employee, and technology areas. 

PB Fintech’s revenue increased by 33.4% and its net profit rose by 40.6% YoY, helped by higher insurance premiums and lending disbursements.

Interest rate cuts and strong retail credit demand fuel growth in the finance industry

The finance industry’s Q1FY26 revenue rose 21.5% and net profit 17.8% YoY, driven by strong retail credit demand, including gold loans and RBI rate cuts since February. Bajaj Finance, Cholamandalam Investment & Finance, and Muthoot Finance were contributors to growth.

Bajaj Finance delivered a strong Q1FY26 performance, with revenue growing 21.3% and net profit increasing 20.1% YoY, with revenue meeting and net profit exceeding Forecaster estimates, respectively. Larger assets under management (AUM), increased loan bookings, and rising customer additions, driven by high demand in the mortgage sector, contributed to this growth.

Cholamandalam Finance & Investment posted Q1FY26 revenue growth of 25% and net profit growth of 20.1% YoY, driven by strong AUM growth in vehicle and loan-against-property segments. Muthoot Finance’s revenue rose 44.2% and net profit 73.2% YoY, boosted by a surge in gold prices above Rs 1 lakh in April, which enabled larger loan disbursals and fueled AUM, revenue, and profit growth.

The healthcare services and other industrial products industries' revenue and net profit also increased by 19.6% & 28.8%, and 17.7% & 27.9% YoY. Standout performers from the healthcare services industry are Inenturus Knowledge Solutions, Dr. Lal Pathlabs, and Metropolis Healthcare. On the other hand, Solar Industries, PTC Industries, and Premier Explosives drove growth in the other industrial products industry.