Nifty Profit Growth Hits 10-Quarter High of 18% in First Quarter
NEW DELHI — Companies in the Nifty 50 posted an 18% year-over-year increase in profit after tax in the first quarter of fiscal 2027, marking the strongest growth in 10 quarters, according to a report from Motilal Oswal Financial Services.
The brokerage said the improvement was broad-based, with 19 sectors exceeding expectations and the earnings upgrade-to-downgrade ratio turning positive at 1.5 times.
The five largest contributors to Nifty 50 earnings accounted for about 60% of the overall increase.
Performance was also strong beyond the benchmark index. Excluding oil marketing companies, companies covered by the brokerage reported 18% growth in sales, 15% growth in EBITDA and 22% growth in profit after tax, beating estimates across all three measures.
Financial services, metals, oil and gas excluding OMCs, technology and telecom were among the major drivers of earnings growth.
Mid- and small-cap companies also delivered strong results. Large-cap earnings rose 21% year over year, while mid-cap earnings increased 23%, their strongest growth in 11 quarters.
Small-cap earnings climbed 31%, significantly above the brokerage’s 22% estimate, led mainly by financial services and oil and gas companies.
About 48% of companies covered by Motilal Oswal exceeded profit estimates, while 25% missed forecasts. Among large-cap companies, 57% beat expectations.
The outlook also improved as 130 companies received earnings upgrades of more than 3%, compared with 89 companies that saw downgrades of more than 3%.
That improvement prompted a modest increase in Nifty 50 earnings estimates. The fiscal 2027 earnings-per-share forecast was raised 0.6% to Rs 1,232, while the fiscal 2028 estimate was increased 0.3% to Rs 1,425 from Rs 1,422.
Financial services, metals and oil and gas excluding OMCs were among the strongest contributors during the quarter. Automobiles, chemicals, textiles and real estate also reported solid earnings growth.
Oil marketing companies remained a drag on overall earnings, however, as higher crude oil prices weighed on performance. (Source: IANS)
