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Informist, Monday, Jul. 7, 2025

MUMBAI – Nuvama Institutional Equities expects the net profit of Nifty 50 companies for the June quarter to rise 5% on year. The broking firm warned that earnings downgrades are likely as recovery in profits remains elusive.

"On earnings, we reiterate margins are at peak and top lines weak all across with limited policy support and large global uncertainty," Nuvama said in its earnings preview report Monday. It said that with the margins of Indian corporations at levels from where a further rise is improbable, profit growth for the quarter is likely to align more closely with sales growth, which is expected to be tepid.

Nuvama sees the sales growth of Nifty 50 companies for the June quarter at only 3%. "The top-line slowdown is now being led by weakness in volume growth and becoming quite broad-based," the brokerage cautioned.

Nuvama expects sectors such as information technology, banks, metals, energy, paints, consumer services, and automobiles to report sales growth lower than 10% for the June quarter. It also expects the retail and industrial sectors to report moderate sales growth of 10-15%. Internet, non-banking finance companies, cement, and electronic manufacturing services are the sectors expected to report strong growth of more than 15%.  End

Reported by Anshul Choudhary

Edited by Rajeev Pai

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