During Q2FY25, large-cap companies performed better than the broader Nifty 500 index in terms of profit growth, as stated in a report by Motilal Oswal.

The September quarter results for Nifty 500 firms were subdued due to a consumption slowdown and global market volatility, with the oil and gas sector significantly impacting overall performance. While the financials sector showed resilience with a 14% year-on-year earnings growth and the IT sector saw an increase of 11% in earnings, sectors like cement and oil & gas experienced significant declines, with earnings drops of 56% and 52% respectively.

Overall, there was a marginal 1% decline in earnings growth for Nifty 500 companies. Excluding the banking, financial services, and insurance (BFSI) sector, the decline deepened to 10%. However, when excluding sectors reliant on global commodities such as metals and oil & gas, the aggregate earnings growth appeared more robust at 10.3% year-on-year. The adjusted profit after tax for the Nifty 500 universe decreased slightly by 1% year-on-year to Rs 3.4 lakh crore, with eight out of 18 major sectors reporting profit growth while ten experienced declines in Q2FY25.