Q2 earnings this week: TCS, Tata Elxsi, and DMart among 27 companies to release results; check full list

A key driver is the revival in demand, particularly in consumer-facing segments, with the onset of the festive season expected to boost discretionary spending in categories such as autos, durables, and retail. This coincides with the recent GST rate rationalisation, which has lowered effective taxes on several goods and services, adding to disposable incomes and aiding consumption.

Another important factor is the expected improvement in operating margins. "The sharp rise in input costs over the past few quarters had compressed profitability, but with commodity prices stabilising and supply chains normalising, companies are regaining some pricing power. This is likely to reflect in better gross margins, especially in manufacturing and consumption-linked sectors," opines Anil Rego, Founder and Fund Manager at Right Horizons PMS.

The financial sector, analysts note, remains a key support to overall earnings growth. Banks and NBFCs are benefiting from steady credit demand across retail, agriculture, and MSME segments, while asset quality has stayed stable. Even with slight pressure on net interest margins, profitability is being supported by healthy loan growth, controlled slippages, and recoveries from past stressed accounts.

Healthcare and allied services are also expected to contribute positively, driven by structural growth factors such as increased penetration, rising medical tourism, and robust domestic demand. "Overall, the earnings recovery in Q2 FY26 is anticipated to be broad-based, anchored by stronger consumption trends, margin recovery, and resilient financial sector performance, even as global headwinds like tariffs and geopolitical risks continue to pose challenges," Rego adds.

Key earnings this week

Among prominent names that are slated to announce Q2 results this week are IT behemoth Tata Consultancy Services (TCS), Tata Elxsi, and DMart chain operator Avenue Supermarts. TCS and Tata Elxsi will announce results on Thursday, October 9, while DMart is slated to release earnings on Saturday, October 11.

Newly listed Shringar House of Mangalsutra will announce its September quarter numbers on Tuesday, October 7.