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Informist, Wednesday, Jan. 7, 2026

 

--Nuvama: Oct-Dec Nifty 50 EPS growth to be flat vs 5% rise H1 

--Nuvama: Nifty 50 Q3 flat EPS growth poses downgrade risks for FY26 estimate 

--Nuvama sees Nifty 50 cos' PAT up 1% on year in Oct-Dec 

--Nuvama sees Nifty 50 cos' sales up 5% on year in Oct-Dec 

 

MUMBAI – Nuvama Institutional Equities expects the Nifty 50 companies to record a net profit growth of just 1% on year in the December quarter, lower than the 5% growth in Jul-Sept as well as Apr-Sept. The brokerage sees the growth in revenue of Nifty 50 companies at 5% on year for the reporting quarter, down from 8% growth reported in Jul-Sept.

 

The growth in earnings per share of Nifty 50 companies is likely to be flat on year in the quarter under review, Nuvama said. This flat growth is seen posing downgrade risks to consensus estimates of mid-teens growth in profit in Oct-Mar, 2025-26 (Apr-Mar) and 2026-27, it added.

 

The consensus of 15% growth in earnings per share for FY27 could disappoint, the brokerage firm said. Consensus estimates see earnings per share of Nifty 50 companies at INR 1,090 for FY26 and INR 1,250 for FY27. The weak global growth and risks to margins owing to increased competition are seen offsetting tailwinds of "domestic easing" and a weaker rupee, it said. "All in all, we argue earnings downgrades along with high valuations warrant a defensive bias," the brokerage said.

 

For the companies under its coverage, excluding oil marketing companies, Nuvama projects a net profit growth of 5% on year for

Oct-Dec. The growth in net profit is seen weak for sectors such as automobile, chemicals, pharmaceuticals, information technology, banking, financial services, and insurance, fast-moving consumer goods companies, and electronics manufacturing services. However,  growth is seen strong for domestic automobile, durables, industrial, and metal companies. 

 

Nuvama expects the revenue of companies under its coverage, excluding oil marketing companies, to grow 8% on year, similar to 8% growth recorded in the September quarter. This marks the 11th straight quarter of single-digit subdued revenue growth, the broking firm said. The growth in revenue is likely to be more than 15% on year for sectors such as the internet, telecommunications, domestic automobile, insurance, jewellery, and non-lending financial companies, Nuvama said.

 

The revenue is seen rising in a range of 10-15% on year for pharmaceuticals, industrials, consumer services, electronics manufacturing services, and non-banking financial companies. The revenue of banks, metals, energy, durables, paints, IT, and FMCG companies is seen rising less than 10% on year.  End

 

Reported by Simran Rede

Edited by Vandana Hingorani

 

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