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Key Takeaways at a Glance
- IT majors reported steady revenue growth but faced margin pressure due to labour code costs
- Financial services and wealth management firms delivered strong profit and AUM growth
- Pharma companies focused on capital raising and US market expansion
- Realty and infrastructure players reported record sales and order inflows
- Overall sentiment remains stock-specific rather than sector-wide
Q3 FY26 Results Highlights: What India Inc’s Latest Earnings Tell Investors
India’s Q3 FY26 earnings season has delivered a mixed yet insightful picture of corporate performance. While revenue growth remains resilient across sectors like IT services, financials, asset management, pharma, and real estate, profitability trends reflect cost pressures, regulatory impacts, and changing market dynamics.
From Infosys and L&T Technology Services facing labour code-related headwinds to strong growth in asset management and NBFC businesses, the Q3 FY26 results offer important cues for investors positioning their portfolios in 2026.
IT Sector Q3 FY26 Results: Revenue Growth, Profit Pressure
The IT services sector showed resilience in topline growth, supported by steady deal wins and digital transformation demand. However, profitability came under pressure.
Infosys Q3 FY26 Performance
Infosys reported a 2.2 percent year-on-year decline in net profit at ₹6,654 crore. This came despite an 8.9 percent rise in rupee revenue to ₹45,479 crore. In dollar terms, revenue increased 3.2 percent to $5,099 million.
A key factor impacting profitability was a labour code-related cost of ₹1,289 crore. This highlights how regulatory changes in India are reshaping cost structures for large IT employers. For investors, this reinforces the importance of tracking margin sustainability, not just revenue growth.
L&T Technology Services Results
L&T Technology Services also reflected similar trends. Net profit declined 6.1 percent to ₹302.6 crore, while revenue grew 10.2 percent to ₹2,923.5 crore. The company reported a labour code impact of ₹35.4 crore during the quarter.
The broader takeaway from IT Q3 FY26 results is clear: growth continues, but margins will remain sensitive to wage costs, compliance expenses, and client spending patterns.
Financial Services and Wealth Management: Growth Outpaces Challenges
Financial stocks emerged as relative outperformers this quarter, driven by rising assets under management, strong loan growth, and higher investor participation.
Jio Financial Services Q3 FY26 Update
Jio Financial Services reported an 8.75 percent decline in net profit to ₹268.98 crore. However, total income surged 10.7 percent to ₹901.05 crore. The standout metric was NBFC assets under management, which jumped 4.5 times year-on-year to ₹19,049 crore.
This reflects early-stage investment in scaling the lending and financial services platform. For long-term investors, AUM growth often precedes profitability expansion.
ICICI Prudential Asset Management Company
ICICI Prudential AMC delivered one of the strongest Q3 FY26 performances. Net profit surged 45.1 percent to ₹917.1 crore, while revenue rose 23.5 percent to ₹1,514.7 crore. The company also announced an interim dividend of ₹14.85 per share.
Rising equity market participation, SIP inflows, and mutual fund penetration continue to support asset management companies in India.
360 ONE WAM Performance
360 ONE WAM reported a 20.3 percent rise in net profit to ₹331 crore, with revenue jumping 33.2 percent to ₹806 crore. Strong client additions and market-linked income drove growth.
NBFC and Broking Stocks: Selective Strength
HDB Financial Services
HDB Financial Services posted a healthy 36.3 percent jump in net profit to ₹643.9 crore. Revenue increased 22 percent to ₹2,285 crore, reflecting strong retail lending demand.
Angel One Q3 FY26 Results
Angel One reported a 4.5 percent decline in net profit at ₹268.7 crore, while revenue grew 5.8 percent to ₹1,334.9 crore. The board approved a 1:10 stock split and declared an interim dividend of ₹23 per share.
The results indicate rising operational costs even as client activity remains stable. Corporate actions like stock splits often aim to improve liquidity and retail participation.
Pharma Sector Updates: Expansion and Capital Raising
Biocon QIP Highlights
Biocon successfully raised ₹4,150 crore through a Qualified Institutions Placement. The funds will be used to pay cash consideration to Viatris for acquiring its stake in Biocon Biologics.
Such capital allocation strengthens balance sheets and supports long-term growth in biosimilars and global markets.
Dr Reddy’s Laboratories US Launch
Dr Reddy’s launched an over-the-counter version of Olopatadine Hydrochloride Ophthalmic Solution in the US after USFDA approval. This move expands the company’s consumer healthcare presence in regulated markets.
Realty and Infrastructure: Strong Momentum Continues
Kolte-Patil Developers Q3 FY26
Kolte-Patil recorded a sales value of ₹605 crore and collections of ₹709 crore, its highest-ever quarterly collections. For the nine months ended December 2025, both sales and collections reached record levels.
The data reflects sustained housing demand in key urban markets.
Transrail Lighting Order Wins
Transrail Lighting secured new orders worth ₹527 crore during the quarter. Total FY26 order inflows now stand at ₹5,637 crore, improving revenue visibility for upcoming quarters.
Banking Sector Snapshot
South Indian Bank reported a 9.5 percent rise in net profit to ₹374.3 crore. Net interest income grew marginally, while provisions increased 21.8 percent, indicating a cautious approach to asset quality.
What Do Q3 FY26 Results Mean for Indian Markets?
The Q3 FY26 earnings season highlights a clear shift toward stock-specific opportunities rather than broad sector rallies. Regulatory costs, margin discipline, and capital efficiency are becoming as important as growth numbers.
For investors, tracking quality balance sheets, sustainable cash flows, and management commentary is crucial.
Platforms like Swastika Investmart, a SEBI-registered research and broking firm, support investors with in-depth research, advanced trading tools, and continuous investor education. Such insights help navigate earnings-driven volatility with confidence.
Frequently Asked Questions
What is the overall trend in Q3 FY26 results?
Revenue growth remains steady, but profitability is mixed due to cost pressures and regulatory impacts.
Which sectors performed best in Q3 FY26?
Asset management, wealth management, NBFCs, real estate, and select infrastructure companies showed strong performance.
How did labour codes impact IT companies?
Labour code compliance increased costs for companies like Infosys and L&T Technology Services, affecting margins.
Are Q3 results important for long-term investors?
Yes. They provide insight into business sustainability, cost structures, and growth visibility.
Final Thoughts
Q3 FY26 results reinforce the importance of disciplined investing in a market shaped by regulation, costs, and evolving demand. While some sectors face short-term pressure, others continue to build long-term value through scale and efficiency.
For investors seeking structured research, reliable execution, and technology-enabled investing, Swastika Investmart offers a comprehensive ecosystem backed by SEBI registration, strong analytics, and responsive customer support.
Take the next step toward informed investing.
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