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Informist, Monday, Oct. 6, 2025

 

NEW DELHI – Motilal Oswal Financial Services has cut the earnings per share estimates for Nifty 50 for 2025-26 (Apr-Mar) and FY27, mainly due to weakness in metal, cement, automobile, technology, banking, financial services, and insurance stocks, according to its latest India Strategy report released Monday. The firm cut the earnings per share estimates for FY26 by 1.1% and for FY27 by 1.7%. Motilal Oswal has also pencilled in modest growth expectations for the September quarter earnings.

 

Motilal Oswal expects Nifty 50's earnings per share to grow 8% on year to INR 1,096 in FY26 and 16% on year to INR 1,274 in FY27. The firm noted that the performance of Indian equities is primed to revert to "mean" going forward. "While Indian equities have registered lackluster performance in the past one year, we continue to highlight that the Indian markets now appear to be in a healthy state vs. last year," it said. The recent slew of reforms undertaken by the government is expected to "reset" the trajectory of corporate earnings.

 

However, it expects a stalemate in the resolution of India's tariff tiff with the US to be a key external catalyst in the earnings of companies. "We see potential for further market upside, especially in an environment characterised by improving corporate earnings growth, low interest rates, ample liquidity, and macroeconomic recovery," Motilal Oswal said.

 

Hopeful of a revival in domestic demand, the company's model portfolio is more aligned towards India-centric companies. Valuations of Nifty 50 companies are reasonable, according to Motilal Oswal. 

 

ALL EYES ON Q2

Motilal Oswal expects defensive stocks to support companies' earnings growth for Jul-Sept, with oil and gas companies anticipated to lead the charge. Nifty 50 companies' net profit for the September quarter is expected to grow 6% on year. This is lower than the 9% growth registered in the June quarter and same as the growth seen in the September quarter last year.

 

Excluding financial companies, Nifty 50 companies' net profit is expected to grow 10% for the latest quarter. This is much higher than the 2% growth in the year-ago quarter and slightly higher than the 8% growth seen in the June quarter.

 

Motilal Oswal expects the top line of Nifty 50 companies to grow 7% on year for the September quarter, while their earnings before interest, tax, depreciation, and amortisation could grow 8% on year. 

 

"Beyond 2QFY26 earnings, given the evolving macro and global backdrop, we believe markets will start focusing to 2026 soon and keenly analyze evidence of the positive effects of various policy measures," Motilal Oswal said.  End

 

Reported by Anand JC

Edited by Avishek Dutta

 

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