As the March earnings season draws to a close, we saw impressive “breadth” in the earnings-driven recovery of companies in India.

For the third quarter in a row, the share of profits of the top 10 companies by market cap as a percentage of the aggregate profit pool of the BSE-500 declined and is at a four-year low.

In terms of sectors, materials and consumer discretionary stocks reported the strongest revenue growth and the most improvement in margins on the back of higher commodity prices, pent-up demand and operating leverage. Energy stocks posted the most significant recovery in profitability while financials reported the most significant “beat” versus consensus on lower provisioning.

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