Nifty Energy P/E at 14.6: earnings have slipped since June

Where Energy stands

Nifty Energy closed at 36,915.75 on Tuesday, 6 October 2026, at a price-to-earnings ratio of 14.61. Its price-to-book ratio was 2.03 and its dividend yield 1.87%.

These are NSE's published end-of-day ratios, and the daily history is on the Nifty Energy valuation page. Our June post found the P/E at 14.86 on 24 June. It has barely moved, but what sits behind the ratio has.

Above the middle of its range

The comparisons start on 31 March 2021, when NSE moved its index P/Es to consolidated earnings. That leaves 1,363 sessions to 6 October.

On P/E, Energy sits at about the 60th percentile. Its lowest P/E of the period, 9.35, came on 23 August 2021, and its highest, 16.89, on 28 April 2026, only five months ago.

On P/B the picture is different: 2.03 is about the 17th percentile, because the index's book value has grown faster than its price.

Price and earnings both eased

Price divided by P/E is a rough stand-in for earnings per index unit, and price divided by P/B one for book value.

Over the year, the index rose 4.4%, the earnings measure 10.6% and book value (price divided by P/B, 15,378 to 18,185) 18.3%. That is the story of the P/E drifting from 15.48 to 14.61.

Since June, though, the direction has flipped. The index is down 7.5% from 24 June and the earnings measure down 5.9%, so the P/E has hardly changed. Over two years the index is down 15.5% and the earnings measure 8.0%.

The data cannot say why earnings eased. Energy is a broad index, and a single member's results can move the total.

Up this year, still below its peak

So far in 2026 Energy is up 4.5% and the Nifty 50 is down 12.8%. From the 30 March low Energy has gained 5.9%. September took 2.7% off its 31 August level.

The record close of 44,954.45 was set on 1 August 2024, and the index is 17.9% below it.

The yield is low for this index

Energy's 1.87% dividend yield is well under its 2.59% median since 2021: 1,263 of 1,363 sessions yielded more. It is still above the Nifty 50's 1.21%.

A new index fund

In September, Axis launched a Nifty Energy index fund. Its first NAV on 2 September was 9.9888 and on 6 October it was 9.7136, a fall of 2.76% in five weeks. Five weeks of NAVs say little about how a fund will do, but they show the kind of swing an energy index fund brings: the index itself fell 2.7% between 31 August and 6 October.

What this does not tell you

Energy earnings are cyclical. A rough earnings measure that falls 5.9% in a quarter is a reminder that profit in this sector can swing with commodity prices and regulation.

The ratios step when data updates. Earnings arrive quarterly, so a P/E can move on a day with no price change. Changes in the index's members are also invisible here.

These are indices, not funds. Energy and infrastructure funds hold their own mix and weights. Our infrastructure and manufacturing funds post covers a related fund theme.

Where to go from here

The guide to reading an index P/E explains what the ratio can and cannot say, and the guide to sectoral and thematic funds covers the concentration risk in a single-sector bet. For the whole market, see the Nifty 50 P/E post for October.