New Delhi — Companies in the Nifty index reported 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 released Monday.
Motilal Oswal Financial Services said the gains were broad-based, with 19 sectors exceeding expectations and the ratio of earnings upgrades to downgrades improving to 1.5 times.
The five largest contributors to Nifty 50 earnings accounted for about 60% of the overall increase in profits.
The strength extended beyond the Nifty 50. Excluding oil marketing companies, businesses covered by the brokerage reported an 18% increase in sales, a 15% rise in EBITDA and a 22% increase in profit after tax, all above expectations.
Financial services, metals, oil and gas excluding oil marketing companies, technology and telecommunications were among the main drivers of growth.
Mid- and small-cap companies also posted strong results. Large-cap earnings rose 21% from a year earlier, while mid-cap earnings increased 23%, the strongest performance in 11 quarters. Small-cap earnings climbed 31%, well above the 22% estimate, led largely by financial services and oil and gas companies.
About 48% of companies covered by the brokerage exceeded profit estimates, while 25% missed forecasts. Among large-cap companies, 57% reported better-than-expected profits.
The earnings outlook also improved, with 130 companies receiving earnings upgrades of more than 3%, compared with 89 companies receiving downgrades of more than 3%.
The stronger performance 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.
Automobiles, chemicals, textiles and real estate also recorded strong earnings growth during the quarter.
Oil marketing companies, however, remained a drag on overall earnings as elevated crude oil prices weighed on their performance. (Source: IANS)
