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Informist, Friday, May 29, 2026

MUMBAI – Shares of capital goods companies are seen in range amid uncertainity around the US-Iran ceasefire deal and the likelihood of hit to margins in the coming quarters due to high commodity prices. Any indication of a possible ceasefire deal that could lower crude oil prices will be positive for the sector.

Capital goods companies faced pressure on margins during the March quarter as crude oil and related costs surged. Seventeen capital goods companies in the Nifty 200 index reported a combined net profit margin, excluding one-time items, of 8.15% during the March quarter. This is lower than the adjusted net profit margin of 8.5% reported by these companies during the December quarter and the March quarter of 2025.

The 17 companies' combined revenue rose 18% on year during the March quarter but the net profit growth was slower at 12%, indicating pressure to earnings due to higher costs. This margin pressure is likely to continue for several companies in the June quarter as crude oil prices have been high for most of the ongoing quarter, analysts said.

Any positive development related to the US-Iran peace deal can push stocks higher next week. Media reports said US and Iran negotiators have agreed to extend their ceasefire by 60 days but any final decision still hinges on the US President Donald Trump's approval.

BSE Capital Goods index rose more than 3% this week, ending higer for the second week. The sectoral index has gained more than 5% in two weeks and nearly 15% in three months. Kirloskar Oil Engines, AIA Engineering, Thermax, and Siemens Energy India were the top gainers this week with these stocks gaining 10-15%.

TOP HEADLINES

* Analyst Concall: Cummins India sees moderate growth across segments in FY27
* Tega Industries Jan-Mar consol PAT falls 58% YoY as sales down 1.7%
* BEML Jan-Mar net profit falls 38% on year to INR 1.79 billion
* Praj Industries Jan-Mar consol PAT falls 71% on year as sales fall 2%
* RITES, Crisil sign MoU for analytical, advisory support in infra projects
* Nepal govt blacklists Patel Engineering JV over disputes, cancels contract
* Elgi Equipments Jan-Mar consol PAT rises 25.5% YoY to INR 1.28 billion
* Isgec Heavy Jan-Mar consol PAT surges over sixfold on year to INR 732.3 mln
* Earnings Review: Robust sales across segments boost Cummins India Q4 results
* Varroc Engg Jan-Mar consol PAT up over 3-fold YoY at INR 693.15 million
* Earnings Review: Siemens consol PAT falls sharply; misses street view
* AIA Engg Jan-Mar consol PAT rises 37.9% YoY to INR 3.93 billion
* EID Parry posts INR 3.33-billion consol loss in Jan-Mar vs PAT year ago
* Analyst Concall: Suzlon sees annual capex run rate at INR 5.5 bln-INR 6 bln
* Delhi HC allows JSW Infra to levy liquidated damages on Kalpataru Projects
* Earnings Review: Suzlon Energy Q4 PAT falls on year first time in 8 qtrs
* Texmaco Rail to supply alumina transportation wagon to Vedanta arm
* Reliance Infrastructure Jan-Mar consol PAT slumps 79% YoY, revenue down 3%
* Tega Industries gets INR-15-bln loan from 3 bks to fund Molycop acquisition
* Maharashtra Seamless Jan-Mar consol PAT falls 58% YoY, sales fall 9.7%
* IRCON Intl Jan-Mar PAT falls 12% YoY as sales down 7.6%
 

Following are the resistance and support levels for key capital goods stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anshul Choudhary

Edited by Akul Nishant Akhoury

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