India Inc's business optimism softened marginally in the third quarter of 2026, with subdued export sentiment and persistent external uncertainty weighing on the outlook despite improving domestic orders and stronger profit expectations, according to the Dun & Bradstreet Business Optimism Index.
The headline BOI eased 0.7% quarter-on-quarter to 111.8 in Q3 from 112.6 in Q2, and was down 4.8% from a year earlier. The moderation points to a selective recovery rather than a broad-based improvement in business sentiment.
The key drag came from export expectations. Export-order optimism stood at 59.2 in Q3, up just 0.8% QoQ but 12.9% below the year-ago level. Dun & Bradstreet said the weakness came amid weak global demand and trade uncertainties.
ALSO READ: India Inc Outlook 2026: Startup IPOs To Tariffs—Five Big Trends That Will Shape The Year
Automobile manufacturing recorded the strongest export-order optimism at 88, followed by electrical manufacturing at 75, wholesale and retail trade at 70, and information and communication at 69. Utilities, construction, real estate and mining were among the least optimistic sectors.
Domestic demand, meanwhile, provided a cushion. Optimism for domestic orders rose 3.4% QoQ to 70.3, although it remained 6.1% below Q3 2025 levels. Utilities led the sectoral rankings at 83, followed by accommodation and food services and mining at 79 each.
Profit expectations also strengthened. The net-profit sub-index climbed 4.9% QoQ, with information and communication leading sectoral optimism at 83, followed by financial services at 79 and real estate at 77.
ALSO READ: India Inc Primed For Double-Digit Earnings Growth In 2026, Says Nomura Analyst
However, other indicators remained a drag on the overall outlook. Inventory optimism fell 16.1% QoQ, while employment sentiment declined 4.7% QoQ and 8.9% YoY.
Overall, D&B's Q3 reading points to an uneven business environment: stabilising domestic demand and improved profit expectations are providing support, but weaker export sentiment, softer inventory confidence and external risks continue to keep India Inc cautious.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.