Profit after tax (PAT) of companies in the capital markets sector, which include mutual funds and stock brokerages, have improved despite macro-economic headwinds and lukewarm market returns.

Going by data in a report by Kotak Institutional Equities (KIE), PAT of capital market companies increased 19% in the last quarter of fiscal 2026 as against the same quarter last fiscal. Their revenue increased 30% on a year-on-year basis.

“MTM impacted headline earnings growth, underlying trends such as retail flows, revenue yields and client additions remained steady,” the report read.

The increase in AMC earnings in the reporting quarter was led by ICICI Prudential, HDFC and Nippon AMCs.  The three delivered PAT growth of 16%-39% year-on-year on “strong fund performance,  steady flows and market share gains,” KIE said.

Retail brokers experienced good inflows with Groww and Angel One experiencing double-digit growth in F&O orders. 

The good performance of capital market companies assumes significance at a time when the overall mood in the market is muted due to the adversarial effects of the Iran war in addition to the already severe FPI outflows.