Q2 Business Updates: Banks Post Double-Digit Loan Growth, Nykaa Expects Strong Revenue Gains

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The updates provide an early picture of business activity across India. For shareholders, higher revenue does not automatically translate into higher returns: DMart shares fell during trading on 5 October despite sales growth. Over time, earnings also depend on the costs of running and expanding these businesses. 

How Does Bank Loan Growth Affect Indian Borrowers?

In its disclosure dated 1 October 2026, Canara Bank reported a 21% year-on-year increase in domestic advances across retail, agriculture and MSMEs. This places lending to households, farmers and smaller businesses within the September-quarter growth story, alongside the bank’s wider domestic and overseas operations. 

The reading is that borrowers should separate growth in a bank’s loan book from changes to their own loan terms. Canara Bank’s figures describe outstanding lending balances, not a reduction in customer EMIs. For readers following the lending updates, our loan and repayment guides⁠ explain the borrowing terms relevant to that distinction.

What Have Management And Analysts Said?

Nykaa linked its September performance to new customers and repeat purchases. Its 4 October update also explained that a larger part of the festive season falls in the December quarter this year. In the company’s words, “some of the festive led growth has shifted from Q2 to Q3”. That timing affects comparisons between quarters. 

Earlier commentary from Nomura, reported on 5 August 2026 after Nykaa’s June-quarter results, identified brand partnerships and owned brands as growth drivers. Nuvama pointed to improving beauty profitability and the fashion business reaching breakeven. Those observations concern the previous results; Nykaa’s latest update describes continued business growth and remains provisional. 

Which Banks Reported Double-Digit Growth?

HDFC Bank’s headline figure measures average advances under management across the quarter. The other entries below describe quarter-end lending balances, so the figures should retain their respective labels when compared.

The lending increases span private and public-sector banks. Canara Bank labelled the numbers provisional in its disclosure, Provisional Business Figures For The Period Ended 30 September 2026. They remain subject to audit or review by the bank’s statutory central auditors.

What Is Driving Nykaa’s Revenue Growth?

In its provisional update dated 4 October 2026, Nykaa said it expects its beauty business to deliver net revenue growth in the high-20% range for Q2 FY2026–27. House of Nykaa grew faster than the overall beauty business, supported by both established and emerging brands. Fashion continued to expand, with new customer acquisition contributing to its performance.

The retailer added 14 net stores during the quarter, taking its network to 338. Like-for-like store sales growth was in the early twenties, the highest in the last six quarters. Nykaa’s expansion therefore involved both a larger network and higher sales from comparable existing outlets. 

What Did DMart Report For The September Quarter?

For the September quarter, Avenue Supermarts recorded ₹19,206.18 crore in standalone revenue. The company disclosed this in its Company Update At The End of Quarter 2 of Financial Year 2026-27, dated 3 October 2026.

Against the ₹16,218.79 crore recorded in September 2025, the latest revenue represents an increase of approximately 18.4%. DMart reported 518 stores, including its Sanpada outlet temporarily closed for reconstruction. Avenue Supermarts reported this revenue subject to a limited review by its statutory auditors. 

What Had Nykaa Reported Previously?

Nykaa closed the June quarter with revenue growth of 29% and 324 stores in operation. Both figures appeared in its results released on 4 August 2026. The September update continues that expansion. Its festive-season explanation also provides context for how sales are distributed between the September and December quarters. 

Conclusion

Banks expanded their lending balances during the September quarter, while Nykaa and DMart reported continued retail growth. These are business updates with specific reporting measures. Nykaa’s expected consolidated revenue growth and DMart’s standalone sales should retain those distinctions when assessing their performance.

FAQs

1. What Period Do These Q2 Business Updates Cover?

July–September 2026 is the reporting period covered by these updates. It forms Q2 of the financial year 2026–27.

2. How Much Revenue Growth Does Nykaa Expect?

Nykaa’s 4 October 2026 update expects consolidated net revenue growth in the high-20% range compared with the same quarter last year.

3. How Much Did DMart’s Revenue Increase?

Avenue Supermarts, which operates DMart, reported standalone revenue from operations of ₹19,206.18 crore for the quarter ended 30 September 2026, up approximately 18.4% from the same quarter in 2025.

4. Why Do Stocks Fall Despite Good Results?

Investors respond to reported performance and their expectations for the business, with both influencing share prices. DMart’s decline on 5 October shows that higher revenue alone does not guarantee a share-price increase.

5. What Is The Difference Between Revenue And Profit?

DMart’s revenue measures sales income. Profit accounts for relevant expenses, so revenue growth and profit growth are different measures of business performance.