Mid and Small Caps Show Resilience Despite Oil Marketing Losses in Q1 FY27

The first three months of FY 2026‑27 delivered a mixed but largely positive earnings landscape for Indian listed companies.

Oil‑marketing firms continued to register losses, yet the buoyancy of banking & financial services, metal, IT and auto businesses kept overall profit growth on track.

When the OMC segment is excluded, aggregate revenue jumped 17 % year‑over‑year, suggesting the core corporate engine is firing strongly.

Revenue growth by sector was led by metals at 53 %, followed by BFSI at 20 %, IT at 11 % and automobiles at 7 %.

Among the 39 Nifty constituents that have announced results, average profit rose 11 % compared with a market expectation of 7 %; 49 % surpassed forecasts, while 22 % fell below.

Large‑cap companies recorded a 6 % revenue uplift. Mid‑caps, however, posted a 31 % revenue decline because of the OMC drag. Stripping out OMCs reveals a 25 % revenue gain for the mid‑cap group, highlighting underlying strength.

Small‑cap firms were the biggest beneficiaries, posting a 32 % increase in revenue, driven by a solid financial‑services boom and a favorable base‑effect.

Analysts note that the slowdown in earnings‑estimate cuts is encouraging, but caution that geopolitical tensions, volatile oil prices and intensified IPO activity could sustain market volatility.