{"id":5812,"date":"2025-08-17T07:59:14","date_gmt":"2025-08-17T07:59:14","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/17\/indias-corporate-earnings-show-broad-based-growth-in-q1-fy26-says-motilal-oswal-business-news\/"},"modified":"2025-08-17T07:59:14","modified_gmt":"2025-08-17T07:59:14","slug":"indias-corporate-earnings-show-broad-based-growth-in-q1-fy26-says-motilal-oswal-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/17\/indias-corporate-earnings-show-broad-based-growth-in-q1-fy26-says-motilal-oswal-business-news\/","title":{"rendered":"India’s Corporate Earnings Show Broad-Based Growth In Q1 FY26, Says Motilal Oswal | Business News"},"content":{"rendered":"


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‘Q1 earnings, perceived as the ‘Crossover quarter’, marked a transition from the subdued low-single-digit earnings growth of FY25 to sustainable double-digit growth,’ says MOFSL.<\/h2>\n
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MOFSL expects Nifty-50 EPS growth to recover to nearly 9% in FY26 (from just 1% in FY25), aided by supportive macro conditions.<\/p>\n<\/figure>\n

Corporate India entered FY26 on a stronger footing, according to a report by Motilal Oswal Financial Services (MOFSL), which called the June 2025 quarter (Q1FY26) the \u201cCrossover Quarter”. According to the brokerage, earnings transitioned from the muted single-digit growth of FY25 to a more sustainable double-digit trajectory, driven by better sectoral breadth and resilience in financials, energy, and telecom.<\/p>\n

\u201cCorporate earnings for 1QFY26, perceived as the \u2018Crossover quarter\u2019, marked a transition from the subdued low-single-digit earnings growth of FY25 to a sustainable double-digit growth trajectory. A key highlight of the quarter was better sectoral breadth of earnings growth. Of the 25 sectors under our coverage, 16 delivered double-digit growth, eight reported single-digit growth, and only one sector experienced a decline in PAT,” Motilal Oswal said in the report titled \u2018India Strategy\u2019.<\/p>\n

Broad-Based Earnings Growth<\/strong><\/p>\n

Out of 25 sectors under MOFSL\u2019s coverage, 16 reported double-digit profit growth, eight recorded single-digit gains, and only one posted a decline. Aggregate earnings of the companies tracked by Motilal Oswal rose 11% YoY, ahead of estimates. Excluding financials, profits rose 13% YoY, while excluding global commodities (metals and oil & gas), growth stood at 9% YoY.<\/p>\n

Oil & Gas (+27% YoY), telecom (loss-to-profit), NBFCs (+14%), PSU banks (+7%), technology (+7%), cement (+51%), and healthcare (+11%) contributed nearly 77% of incremental profit accretion. Automobiles (-3%) weighed on performance.<\/p>\n

Nifty-50 Stretches Single-Digit Streak<\/strong><\/p>\n

Nifty-50 earnings rose 8% YoY in Q1, the fifth straight quarter of single-digit profit growth since the pandemic. Reliance Industries, Bharti Airtel, SBI, HDFC Bank, and ICICI Bank alone accounted for 77% of incremental earnings, while Coal India, Tata Motors, ONGC, HUL, Nestle, and others dragged overall growth, according to the brokerage.<\/p>\n

Market-Cap Segment Trends<\/strong><\/p>\n

\u201clarge-caps (87 companies) posted an earnings growth of 10% YoY \u2013 similar to the overall universe. Mid-caps (92 companies) have extended their streak of the past two quarters and yet again delivered a strong earnings growth of 24% YoY (vs. our est. of 20%),” Motilal Oswal stated.<\/p>\n

Large-caps:<\/strong> Earnings grew 10% YoY, in line with estimates.<\/p>\n

Mid-caps:<\/strong> Continued to outperform, rising 24% YoY versus expectations of 20%, with 17 of 22 sectors delivering double-digit profit growth.<\/p>\n

Small-caps:<\/strong> Lagged significantly, with earnings falling 11% YoY against expectations of flat growth. Nearly half of the small-cap coverage universe missed estimates.<\/p>\n

Earnings Outlook<\/strong><\/p>\n

For FY26, MOFSL projects its coverage universe to clock 12% profit growth, led by financials (+8%), metals (+19%), and oil & gas (+9%). Mid-caps are expected to deliver 21% growth, compared with 10% for large-caps and 34% for small-caps.<\/p>\n

However, the brokerage noted that earnings downgrades continued to outpace upgrades, with the Nifty FY26 EPS estimate cut by 1.2% to Rs 1,108, primarily due to weaker forecasts for ONGC, Reliance Industries, Axis Bank, Power Grid, and HDFC Bank.<\/p>\n

Sectoral Highlights<\/strong><\/p>\n

Banks:<\/strong> In-line results but with margin pressure, especially at private lenders.<\/p>\n

Autos:<\/strong> Mixed quarter; OEMs posted modest growth, while ancillaries outperformed.<\/p>\n

Consumer:<\/strong> Demand recovery intact, revenue up 8.3% YoY.<\/p>\n

Oil & Gas:<\/strong> Profits surged but missed estimates due to OMC underperformance.<\/p>\n

Technology:<\/strong> Weak revenue momentum amid macro headwinds.<\/p>\n

Metals:<\/strong> Robust operating performance lifted profits 59% YoY.<\/p>\n

MOFSL expects Nifty-50 EPS growth to recover to nearly 9% in FY26 (from just 1% in FY25), aided by supportive macro conditions. While market volatility may persist due to global tariff concerns, the brokerage believes India remains well-placed for modest gains, with mid-caps offering relatively better earnings visibility.<\/p>\n

The report maintained an overweight stance on BFSI, consumer discretionary, industrials, healthcare, and telecom, while staying underweight on oil & gas, cement, real estate, and metals.<\/p>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Click here<\/a> to add News18 as your preferred news source on Google. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n

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Last Updated:August 17, 2025, 12:36 IST ‘Q1 earnings, perceived as the ‘Crossover quarter’, marked a transition from the subdued low-single-digit earnings growth of FY25 to sustainable double-digit growth,’ says MOFSL. MOFSL expects Nifty-50 EPS growth to recover to nearly 9% in FY26 (from just 1% in FY25), aided by supportive macro conditions. Corporate India entered…<\/p>\n","protected":false},"author":1,"featured_media":1151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5812"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/1151"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}