India, Aug. 21 -- India Inc delivered a stronger-than-expected earnings performance in the June quarter of FY27. But the recovery had a clear divide: large and mid-sized companies pulled ahead, while smaller firms struggled to keep pace. Nifty 50 profits grew nearly 18% year-on-year (y-o-y), roughly twice the Street's 9% estimate, marking a sharp improvement in headline earnings momentum. Large and mid-sized companies gained from the global commodity upcycle, strong credit growth, exports, a weaker rupee, pricing power, operating leverage, and low-cost inventories. A favourable base also amplified the gains. Volume growth accelerated too, suggesting the recovery was not purely price-led. Yet experts note that the quality of incremental profits remains uneven, with commodities and a handful of large companies accounting for a disproportionate share of the gains. Higher raw material costs, weaker pricing power, and limited operating leverage squeezed the margins of smaller companies and held back their earnings growth. The result is an earnings season that looks broad-based on the surface, but becomes increasingly uneven on closer examination. Mint's analysis of 2,774 non-financial companies shows that India Inc.'s topline recovery in Q1 FY27 was unusually strong. Nominal revenue surged 21% y-o-y, while real revenue (inflation-adjusted) growth accelerated to nearly 17%-both recording their strongest growth in three years. The gap between the two implies that, alongside a sharp pickup in volumes, pricing and realization gains provided a significant lift to reported revenue growth. Much of that lift came from non-ferrous metals and upstream oil companies like Hindalco and Oil and Natural Gas Corp. (ONGC), which benefited from a global commodity upcycle. Hindalco's revenue rose 26% y-o-y, helped by a sharp rise in aluminium prices amid supply deficits and strong renewable-energy demand. ONGC's revenue jumped nearly 46% as the West Asia conflict pushed crude prices to $90-100 a barrel during the quarter. As a result, profits at Hindalco nearly tripled and doubled at ONGC from a year ago, significantly boosting the Nifty 50's earnings growth. But the topline recovery was not driven by pricing alone. India Inc also saw a sharp pickup in volumes, aided by an improving domestic consumption, which continues to benefit from the government's FY26 consumption stimulus. Consumer tech platforms, jewellers, durables, and quick-service restaurants saw strong demand throughout the quarter, said Lokesh Manik, senior analyst at Vallum Capital. Meanwhile, manufacturing and capex-linked sectors saw volume growth, owing to government infrastructure spending, said Pranay Aggarwal, director and chief executive officer of Stoxkart. Export-oriented companies also benefited from resilient overseas demand for niche goods, he added. While topline growth appears broad-based and volume-led, India Inc's profit growth remains uneven. Companies with scale, differentiated products, strong brands or niche export markets are better placed to protect margins and deliver profit growth as costs rise, said Aggarwal. That helps explain why large and mid-sized companies are recovering faster than smaller firms. Mint's analysis of a 3,271-company universe, which includes the 2,774 non-financial companies covered, shows that large companies, with revenue above Rs.10,000 crore, saw revenue growth hit a three-year high of 17%, while profits rose just 2%, partly due to OMC losses. OMCs incurred a Rs.18,100 crore loss in Q1 FY27, swinging from a Rs.16,200 crore profit a year ago. A Motilal Oswal Financial Services report highlights that large names such as ONGC, Hindalco, Reliance, JSW Steel, and Bharti Airtel accounted for 60% of incremental Nifty profit accretion. Medium-sized companies with revenue of Rs.1,000-10,000 crore saw their revenue grow 16%, while profits surged 24% to a six-quarter high....