{
  "id": 5476945,
  "title": "Midcap, small cap outperform large caps on margins amid rising input costs",
  "url": "https://urgent.news/2026/09/04/midcap-small-cap-outperform-large-caps-on-margins-amid-rising-input",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-04T02:02:26.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/midcap-small-cap-outperform-large-caps-on-margins-amid-rising-input-costs/articleshow/133749438.cms"
  },
  "original_language": "en",
  "account": "India Inc's aggregate operating margin has been under pressure due to higher input costs over recent quarters. However, mid-cap and small-cap companies have experienced less pressure compared to large-cap counterparts. ET Intelligence Group's analysis of 3,340 companies (excluding banks and finance companies) reveals that large-cap operating margins shrank by 280 basis points year-on-year to a 13-quarter low of 14.3% in the June quarter. Mid-cap margins remained flat at 12.8%, while small-cap margins contracted by 100 basis points to 7.7%.\n\nAcross all three company categories, a higher proportion of raw material costs relative to sales affected margins. Large-cap companies saw their raw material cost-to-sales ratio increase by 530 basis points year-on-year to 36%. Mid-caps experienced a 300 basis point increase to 45.8%, while small-caps rose by 550 basis points to 57.5%.\n\nDespite the challenges, mid-cap and small-cap companies outperformed large-cap firms in terms of revenue and net profit growth. Revenue growth for mid-caps reached a nine-quarter high of 23.7%, and small-caps saw a 30.2% increase. Net profit growth also surged in double digits - 21.2% for mid-caps and 26.7% for small-caps. In contrast, large-caps posted a strong revenue growth of 22%, but net profit growth was only 1.6%, the slowest in seven quarters.",
  "summary": "Large-cap firms saw operating margins contract significantly year-on-year. Mid- and small-cap companies experienced lesser margin contractions amid rising costs. These smaller firms also achieved higher revenue and net profit growth rates. Large-cap companies reported modest net profit growth, the slowest in seven quarters. Overall, aggregate operating margins for India Inc. declined.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}