In a recent LinkedIn post, Nithin Kamath discusses the robust performance of corporate earnings across India, suggesting it may explain the resilience of market indices against bearish expectations.
According to Kamath, a significant number of companies have reported their financial results, painting a picture of widespread recovery. He shared key figures to illustrate this trend:
“Aggregate revenues have risen 8.2% year-on-year, while EBITDA and PAT climbed 14.1% and 16.0%, respectively. Excluding Financial Services, profit growth accelerated to 22.5%”
This data, sourced from IndiaDataHub, indicates a healthy expansion in corporate profitability. Kamath points out that these strong earnings are a likely driver behind the market’s ability to withstand negative sentiment.
Analyzing the Earnings Strength
Nithin Kamath’s analysis underscores a crucial economic indicator: corporate profitability. The substantial year-on-year growth in revenues, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and PAT (Profit After Tax) suggests that businesses are not only growing but also becoming more efficient and profitable.
The acceleration in profit growth when excluding the financial services sector is particularly noteworthy. As Kamath highlights, this segment saw profit growth climb to an impressive 22.5%, indicating strong underlying operational performance across a wide range of industries.
Market Resilience Explained
The resilience of stock market indices has been a talking point, with many analysts and investors bracing for sharper declines. However, Nithin Kamath suggests that the strong corporate earnings provide a fundamental basis for this stability.
“Perhaps this explains why indices are holding up much better than most bears had expected,” Kamath stated in his post. This perspective offers a counter-narrative to purely sentiment-driven market analyses, emphasizing the importance of financial fundamentals.
Outlook and Sustained Growth
Looking ahead, Nithin Kamath expresses a hopeful sentiment regarding the continuation of this earnings momentum. The strength demonstrated in the latest reporting cycle could set a positive tone for the coming quarters, provided these trends are sustained.
The data presented by Kamath, derived from IndiaDataHub, offers a quantitative perspective on the health of the Indian corporate sector. It serves as a reminder that despite broader economic uncertainties or market volatility, underlying business performance remains a critical factor influencing market direction.
Kamath concluded his post with a simple yet significant hope: “Hoping this earnings strength sustains.” This sentiment reflects a desire for continued economic prosperity and stable market conditions, underpinned by solid corporate performance.
📝 About This Content
This article is based on insights shared by Nithin Kamath on LinkedIn.
📅 Originally posted on November 17, 2025 | View original post on LinkedIn →