What’s Driving Q2 Surge Across India’s Midcap Stocks?
The second quarter of FY26 has proven to be an inflection point for India’s midcap companies. From consumer-facing brands to industrial heavyweights, the quarter showcased operational resilience, cost efficiency, and strong revenue growth. With festive tailwinds and infrastructure-led optimism, several midcap names have recorded robust year-on-year gains despite global uncertainty.
Fashion and Retail Momentum
Go Fashion (India) Ltd 👗
Net Profit: ₹21.8 Cr vs ₹20.6 Cr YoY
Revenue: ₹224 Cr vs ₹208 Cr YoY
EBITDA: ₹66.6 Cr vs ₹63.6 Cr YoY
Margins: 29.7% vs 30.49% YoY
The company appointed Ms. Sakshi Vijay Chopra as Independent Director for a five-year term to strengthen governance and strategic vision.
Cantabil Retail India reported steady expansion, targeting ₹850 Cr revenue in FY26 and ₹1,000 Cr by FY27. PAT margins are projected at 11–13%, supported by a shift to larger 1,600 sq ft stores that enhance visibility and profitability. The company remains zero-debt with robust working capital management.
Healthcare and Pharma Resilience
Sakar Healthcare posted a Net Profit of ₹4.5 Cr vs ₹4.8 Cr YoY with revenue up 35% to ₹57.5 Cr. EBITDA was ₹11.35 Cr, maintaining a healthy 19.7% margin despite cost inflation.
Beta Drugs reported Net Profit of ₹23.9 Cr vs ₹24.4 Cr YoY (↓2%), while revenue rose 12.8% to ₹203 Cr. Margins remained strong at 20.1%, reflecting a disciplined cost structure and resilient oncology formulations business.
Valiant Laboratories through its subsidiary Valiant Advanced Sciences Pvt. Ltd. commenced commercial operations at a state-of-the-art greenfield facility in Saykha, Gujarat. The plant will produce acetic anhydride — a key intermediate for the pharma and specialty chemical industry.
With healthcare demand rising post-pandemic, mid-tier pharma firms are focusing on margin sustainability through capacity expansion and export diversification.
Industrial and Infrastructure Strength
Prism Johnson saw revenue rise 13% YoY to ₹1,855 Cr and EBITDA surge 304% to ₹186 Cr, pushing margins to 10% from 2.8%. However, net profit dropped to ₹1.6 Cr due to higher depreciation and input costs.
Deep Industries delivered an impressive performance with Net Profit up 85% YoY to ₹72.2 Cr, Revenue up 70% to ₹221 Cr, and EBITDA Margin at 41.4%. Growth was driven by new gas compression and drilling contracts.
Bansal Roofing doubled its revenue to ₹34.1 Cr and tripled net profit to ₹1.46 Cr, reflecting strong demand from the building materials sector and higher capacity utilization.
Infrastructure and industrial midcaps are witnessing a demand rebound supported by higher capital expenditure in construction, energy, and allied services.
Metals and Manufacturing Revival
Shyam Metalics reported Net Profit of ₹261 Cr (↑21% YoY), EBITDA up 32% to ₹539 Cr, and revenue rising 23% to ₹4,457 Cr. CRISIL upgraded its credit rating to AA+ (Stable), reflecting strong balance sheet metrics.
Arvind Ltd clocked Net Profit of ₹103 Cr (↑72% YoY), Revenue ₹2,371 Cr, and EBITDA ₹247 Cr with improved 10.4% margins. Textile recovery and export normalization supported the quarter.
Chandra Prabhu International posted Net Profit ₹0.81 Cr (↑108% YoY) despite revenue falling 44% to ₹77.2 Cr, signaling margin discipline amid a volatile commodity environment.
Agriculture and Allied Businesses
Venky’s India posted a Net Loss of ₹26.5 Cr vs ₹7.75 Cr last year. Revenue rose modestly to ₹800 Cr (↑3% YoY), but margins slipped to -3.9% from +1.8%. The poultry business faced price pressure, though the oilseed segment showed recovery. Management expects normalization by Q4 FY26.
Corporate Updates and Governance Moves
Nucleus Software announced the resignation of Sr. VP Mr. Ashwani Arora effective Nov 28, 2025, marking an executive leadership change.
Jyotirgamya Enterprises promoter entity reclassified to public category after BSE approval, indicating enhanced governance transparency.
These updates reflect an ongoing transformation across midcap boardrooms with greater institutional oversight, leadership renewal, and operational agility.
Traders tracking near-term sentiment can monitor Nifty Tip setups for tactical positioning during earnings season volatility.
Valuation and Investment View
- Short-term: Momentum remains sectorally broad-based with metals and infra leading.
- Medium-term: Earnings visibility improving in healthcare and manufacturing.
- Long-term: Margin expansion, lower leverage, and rural recovery to sustain rerating.
For derivative-based positioning, explore BankNifty Tip setups for precision entry-exit timing.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, highlights that the Q2 FY26 earnings season has revalidated midcap strength through diversification and disciplined execution. Investors should focus on companies combining cost leadership with sustainable demand tailwinds. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Midcap Stocks
- What are the best midcap stocks to track after Q2 FY26 results?
- Which sectors are driving India’s midcap earnings growth?
- How are metals and healthcare midcaps performing in FY26?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
