19 Sectors Beat Q1 Estimates, Nifty Profit Growth Hits 10-Quarter High
· Free Press Journal
Mumbai: Corporate India delivered a stronger-than-expected performance in the first quarter of FY27, with 19 sectors beating earnings estimates and growth spreading across large-, mid- and small-cap companies, according to a Motilal Oswal report.
Financials, metals, oil and gas excluding oil marketing companies (OMCs), and automobiles were among the main contributors to the improvement in corporate earnings.
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Earnings Outperform
For the Motilal Oswal Financial Services (MOFSL) Universe excluding OMCs, sales increased 18 per cent year-on-year, ahead of the brokerage's estimate of 15 percent.
EBITDA rose 15 per cent against an expected 10 percent, while profit after tax (PAT) jumped 22 percent, compared with the forecast of 15 percent.
BFSI, metals, oil and gas excluding OMCs, technology and telecom were major contributors. Chemicals, textiles and real estate also supported earnings growth.
OMCs, however, were the biggest drag as higher crude oil prices hurt profitability. The segment reported a loss of Rs 181 billion compared with a profit of Rs 162 billion in the corresponding quarter last year.
Cement and InterGlobe Aviation also pulled down the overall performance.
Nifty Growth
Nifty companies recorded 18 per cent year-on-year PAT growth, the strongest in 10 quarters and well above Motilal Oswal's estimate of 10 per cent.
Sensex Down 350 Points, Nifty Slips 0.37% As US-Iran Standoff Weighs On Investor SentimentLarge-cap companies in the MOFSL Universe posted 21 percent earnings growth against the projected 14 percent.
Mid-caps delivered 23 percent growth, their highest in 11 quarters, while small-caps recorded a stronger 31 per cent rise against the estimated 22 per cent.
Around 48 percent of companies in the MOFSL Universe beat PAT estimates, while 25 per cent missed expectations.
Sensex Declines 0.25%, Nifty Down 100 Points As Investors Await US Inflation DataAmong large-caps, 57 percent surpassed forecasts, compared with 39 percent of mid-caps and 48 per cent of small-caps.
The earnings revision trend also remained positive. The report said 130 companies received earnings upgrades of more than 3 per cent, while 89 faced downgrades exceeding 3 per cent.