More Stories

Informist, Tuesday, Oct. 7, 2025

MUMBAI – Nuvama Institutional Equities expects the net profit of Nifty 50 companies to expand 8% on year in the September quarter and revenue to grow 5% on year. It expects earnings before interest, tax, depreciation, and amortisation of the Nifty 50 companies to rise 6% on year in the reporting quarter.

It also sees a 9% growth in earnings per share of the Nifty 50 companies for 2025-26 (Apr-Mar). "The downgrades risks are still high for FY27, wherein consensus is building in 15% EPS growth, which we think could disappoint," the brokerage said. It expects weak global growth and US tariffs to likely have an adverse impact on the top line of two–thirds of BSE 500 companies. "The impact is likely to be broad-based and not just on exporters' as weak exports force corporates to scale back costs/capex, impacting domestic cyclicals' demand as well," it said. 

While the cut in goods and services tax will be postive, it will not be able to fully offset the hit from US tariffs, Nuvama said. It forecasts the consensus Nifty 50 EPS for FY26 at INR 1,090 and for FY27 at INR 1,250. "All in all, we argue earnings downgrades along with high valuations warrant a defensive bias," the brokerage said.

Nuvama said the large margin expansion post COVID has stabilised at elevated levels and the profit growth is now reconciling with the weak top line growth, it said. In Jul-Sept, profit growth for companies under its coverage, excluding oil marketing companies, is projected to grow 8% on year compared to 7% growth in the June quarter. On a year-on-year basis, profits are likely to be weak for banking, financial services, fast moving consumer goods, and export segment of automobiles. Cement and consumer durables' companies are expected to post strong growth, Nuvama said.

Nuvama expects only 6% year-on-year growth in the top line for companies under its coverage, excluding oil marketing companies. This marks the tenth straight quarter of revenue growth below 10% on year for companies under its coverage, Nuvama said. 

On the sectoral front, the revenue growth is likely to be more than 15% for companies in electronics manufacturing services, internet, telecom, non-banking financial services, cement, and non-lending financials. Nuvama sees a 10–15% year-on-year growth in retail, industrials, domestic segment of automobiles, and consumer-facing services such as hotels, hospitals, airlines, among others. On the other hand, information technology, banks, metals, energy, fast-moving consumer goods, and consumer durable companies are expected to post a less than 10% revenue growth in the reporting quarter.  End

Reported by Simran Rede

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.