New Delhi, June 10 -- India's corporate earnings outlook appears promising, supported by robust government capital expenditure and a revival in consumption within a low-inflation and easing interest rate environment.

In the March 2025 quarter, midcap and smallcap companies posted 12% year-on-year (YoY) earnings growth, outperforming the large-cap segment, which grew at 5.5% YoY.

Sector-wise, power, metals, pharmaceuticals, cement, real estate, and industrials delivered double-digit YoY earnings growth in Q4 FY25. In contrast, earnings declined in financial sectors like lenders and capital markets, as well as in consumer staples, consumer discretionary, and energy, according to HDFC Securities.

Remarkably, a significant portion of the i...