Reliance Industries Ltd. and ICICI Bank reported below-expected quarterly results, fueling investor concerns over India's economic momentum. The earnings misses are expected to heighten caution among market participants.
- Reliance Industries reported 9% YoY net profit decline and missed estimates by 12%
- ICICI Bank saw 7% net profit drop and missed forecasts by 11%
- Both companies’ results followed a slowdown in India’s Q3 FY26 GDP growth to 6.9%
- Reliance’s stock fell 3.4%, ICICI Bank dropped 4.1% post-earnings
- Sector-wide losses seen in banking and consumer stocks
- Analysts flag rising credit risk and consumption slowdown as key concerns
Reliance Industries Ltd. reported a 9% year-on-year decline in net profit for the quarter ended December 2025, missing estimates by 12%. The company attributed the shortfall to weaker margins in its retail and refining segments, despite a 6% increase in total revenue. Meanwhile, ICICI Bank posted a 7% drop in net profit, falling short of analyst forecasts by 11%, primarily due to higher provisions for bad loans and lower-than-anticipated credit growth in the domestic retail portfolio. The earnings misses come at a time when India’s broader economic indicators have shown signs of softening. The GDP growth rate for Q3 FY26 moderated to 6.9%, down from 7.4% in the prior quarter. Market analysts note that both companies are key benchmarks in India’s market indices, and their underperformance is likely to amplify downward pressure on the Nifty 50 and Sensex. Reliance’s share price fell 3.4% in early trading, while ICICI Bank’s stock dropped 4.1% following the results. The declines were mirrored across the banking and consumer sectors, with HDFC Bank and Tata Consumer Products also recording single-digit losses. Analysts suggest the results reflect broader challenges, including tightening credit conditions, elevated non-performing assets, and slowing consumption trends. Investors are now reassessing growth assumptions for India’s corporate sector. With multiple large-cap firms facing margin compression and slower revenue expansion, the market’s forward-looking valuation multiples are beginning to contract. The outcome may influence central bank policy expectations and foreign investor sentiment in the coming months.