19 Sectors Beat Q1 Estimates, Nifty Profit Growth Hits 10-Quarter High
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…
Mumbai witnessed a robust corporate performance in the first quarter of FY27, with 19 sectors exceeding earnings estimates, as per a Motilal Oswal report. Financials, metals, oil and gas (excluding oil marketing companies or OMCs), and automobiles contributed significantly to the improvement in corporate earnings. The Motilal Oswal Financial Services (MOFSL) Universe, excluding OMCs, saw sales grow by 18% year-on-year, surpassing expectations of 15%.
EBITDA rose by 15% compared to the forecasted 10%, and profit after tax (PAT) jumped by 22%, exceeding the forecast of 15%.
The Banking, Financial Services, and Insurance (BFSI) sector, metals, oil and gas (excluding OMCs), technology, and telecom were the major contributors to the earnings growth. However, the OMC sector was the biggest drag, reporting a loss of Rs 181 billion compared to a profit of Rs 162 billion in the same quarter last year, due to higher crude oil prices impacting profitability. Cement and InterGlobe Aviation also negatively affected the overall performance.
The Nifty companies recorded an impressive 18% year-on-year profit after tax (PAT) growth, the highest in 10 quarters, well above Motilal Oswal's estimate of 10%. On the Sensex front, it declined by 350 points, while the Nifty slipped by 0.37%, as the US-Iran standoff weighed on investor sentiment. Large-cap companies in the MOFSL Universe posted a 21% earnings growth, surpassing the projected 14%.
Mid-caps delivered the highest growth of 23%, their best in 11 quarters, while small-caps showed a robust 31% rise, outperforming the estimated 22%. Out of the companies in the MOFSL Universe, 48% beat PAT estimates, while 25% missed expectations.
Out of the 130 companies in the MOFSL Universe, 57% of large-caps surpassed forecasts, compared to 39% of mid-caps and 48% of small-caps. The trend of earnings revisions remained positive, with 130 companies receiving earnings upgrades of more than 3%, while 89 faced downgrades exceeding 3%.
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