Ahmedabad Times

As markets wrap up the This autumn outcomes season for the monetary yr 2026, Motilal Oswal highlighted that Indian company earnings showcased widespread outperformance throughout aggregates, with commodity power driving the broad-based beat to estimates.

In its newest Indian technique report, Motilal Oswal Monetary Providers mentioned that combination earnings of the businesses underneath its protection grew 16% year-on-year, beating its estimate of 8% progress within the January-March quarter of FY26. In keeping with the home brokerage, the better-than-expected earnings progress was powered by BFSI (revenue grew 18% YoY vs. brokerage’s estimate of 11%) and supported by metals (revenue surged 50% YoY vs. brokerage’s estimate of 24%) and OMCs (revenue jumped 62% YoY vs. brokerage’s estimate of seven% progress). Additional, know-how (+13% YoY), telecom (+8.4x YoY), and vehicles (+13% YoY vs. brokerage’s estimate of 6% decline) propelled earnings, Motilal added.

Then again, combination earnings progress was dragged by oil & gasoline (excluding OMCs), which posted a revenue dip of 10% YoY vs. Motilal’s estimate of 1% progress.

The Nifty 50 corporations delivered 4% YoY progress in web revenue, beating Motilal’s estimate of two% progress. The home brokerage, nevertheless, famous that Nifty reported a single-digit earnings progress for the eighth consecutive quarter, the primary time because the pandemic (June 2020).

“Barring Reliance Industrieswhich posted a revenue dip of 13% YoY, and Interglobe Aviation, which posted a lack of Rs 24 billion vs. a revenue of Rs 30.7 billion YoY, the Nifty Universe posted a 9% YoY earnings progress. 5 Nifty corporations – Bharti Airtel, JSW Metal, HDFC Financial institution, Infosysand TCS – contributed 75% of the incremental YoY accretion in earnings. Conversely, Reliance Industries, Interglobe Aviation, Adani Enterprises, Energy Grid, Dr Reddy’s, Cipla, Tata Motors PV, Solar Pharma, and Maruti Suzuki dragged down earnings. Throughout the Nifty, 15 corporations reported lower-than-expected income, whereas 18 posted a beat, and 17 registered in-line outcomes,” Motilal added.

Additionally learn: IndiGo soars 5% after This autumn outcomes. What Goldman Sachs, Jefferies and others are saying

Largecaps, midcaps beat estimates, smallcaps publish in-line earnings

The home brokerage famous that among the many corporations underneath its protection, round 90 largecap corporations on common posted an earnings progress of 12% YoY. Round 101 midcap corporations, in the meantime, confirmed enchancment and delivered earnings progress of 36% YoY (vs. the brokerage’s estimate of 25%).
“A number of mid-cap sectors, akin to BFSI, metals, OMCs, and healthcare, lifted the general efficiency. These sectors contributed ~89% of the incremental YoY accretion in earnings. In distinction, smallcaps (168 corporations) delivered in-line efficiency, with earnings rising 19% YoY (our estimate of +18%). Inside small-caps, 68% of the protection universe exceeded/met our estimates. Conversely, throughout the large-cap/mid-cap universes, 74%/73% of the businesses exceeded/met our estimates,” Motilal Oswal mentioned.
It famous that Nifty EPS for FY26 stood at Rs 1,065 per share, marking a second consecutive yr of single-digit progress. It minimize its Nifty EPS estimate for FY27 by 0.9% to Rs 1,235 per share, led by SBI, Reliance Industries, JSW Metal, ONGC, and Coal India. “Earnings estimates of the MOFSL Universe have been minimize by 1.3% for FY27, fueled by PSU Financial institution, Oil & Gasoline, Healthcare, Telecom, and Know-how. The MOFSL large-cap universe reported an earnings minimize of 0.9%, whereas the mid-cap universe recorded a downgrade of two.2%, and the MOFSL small-cap universe posted a downgrade of two.8% for FY27,” it added.

This autumn earnings season fared higher than expectations

Motilal concluded by saying that the This autumn earnings season fared higher than expectations, however ahead earnings revisions proceed to exhibit weak point. Following India’s sharp underperformance in FY26 and document FII outflows, a good base has possible been set for Indian equities, it mentioned, including that within the close to time period, nevertheless, the market will stay hostage to risky developments arising from the West Asian disaster.
“Greater commodity costs would be the key monitorables, as a chronic elevated degree might have an effect on India’s macro parameters and engender a good financial coverage stance. Our mannequin portfolio broadly displays our desire for progress visibility, structural home progress performs, and choose international worth names. We firmly consider that this can be a bottom-up market, regardless of India witnessing each time and worth corrections relative to EM friends. Our key obese sectors are Autos, PSU Banks, Diversified Financials, Manufacturing & Industrials, Shopper Discretionary, and New-age platforms. In distinction, we’re underweight on Oil & Gasoline, Personal Banks, Metals, Shopper Staples, IT, and Commodities/Utilities,” the brokerage mentioned.

Additionally learn: PSU financial institution shares vs non-public banks in FY27: The valuation lure you have to keep away from

Motilal Oswal’s high picks

It listed Bharti Airtel, State Financial institution of India (SBI), ICICI BankMahindra & Mahindra (M&M), Titan, Bharat Electronics (BEL), Everlasting, Tata Metal, Infosys and IndiGo as its high Nifty 50 picks, whereas non-Nifty 50 picks included TVS Motor Firm, ICICI Prudential AMC, Groww, Indian Inns, AU Small Finance, Dixon Tech, Lenskart, Waaree Energies, Coforge, Radico Khaitan and Delhivery.

(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Occasions)