In the third quarter of fiscal year 2025, corporate earnings in India showed an uneven recovery, with an overall profit increase of 8.7% year-over-year. The banking, financial services, and insurance (BFSI) sector was a primary driver of this growth, achieving double-digit gains. However, non-BFSI sectors continued to struggle, marking their eighth consecutive quarter of single-digit growth. Analysts noted that IT companies are beginning to see recovery signs, particularly in BFSI spending and the artificial intelligence (AI) sector. The Indian outsourcing industry, valued at $254 billion, is anticipated to rebound in 2025. Despite this optimism, challenges remain, including currency fluctuations and economic pressures in Europe, as highlighted by HSBC and CLSA's assessments of the IT sector's outlook for the fiscal year 2026. As the earnings season unfolds, only 10 of the 51 Nifty constituents have reported their earnings thus far, with Reliance Industries being one of the few companies to exceed estimates.