Q3 Earnings: Is The Six-Quarter Weakness Finally Ending?

As the Q3 earnings season unfolds, investors are watching closely to see if India’s six-quarter earnings slowdown is finally coming to an end. Early signs suggest a pickup in consumer spending, helped by festive demand, GST cuts and improving confidence. Autos, especially small cars and first-time buyers, are showing strong traction, while manufacturing and PLI-linked companies are also reporting better momentum. Commodity prices and consumption trends point to a healthier operating environment in the third quarter. However, mid-cap and small-cap companies may face pressure as growth expectations moderate and margins tighten. We break down which sectors are likely to outperform, which could struggle, and whether this Q3 marks the beginning of a genuine earnings recovery for Indian markets.