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Informist, Monday, Jul. 6, 2026

 

--Motilal Oswal sees Nifty 50 cos' cumulative PAT rising 10% on year in Q1 

--Motilal Oswal sees Nifty 50 cos' cumulative sales rising 16% on year in Q1 

--Motilal Oswal sees 23 Nifty 50 cos posting over 15% on-year rise in Q1 PAT 

--Motilal Oswal sees 12 Nifty 50 cos posting loss, on-year fall in Q1 PAT 

 

MUMBAI – The benchmark Nifty 50 constituents' cumulative net profit is seen rising 10% on year in the June quarter while revenues are expected to go up 16%, Motilal Oswal Financial Services Ltd. said. Twenty three companies are estimated to post a more than 15% on-year growth in the June quarter and 12 are expected to either see a loss or a contraction in profit, according to the brokerage. 

 

Earnings before interest, taxes, depreciation, and amortisation of the 50 companies are cumulatively seen rising 8% on year, but their EBITDA margin is estimated to fall by 90 basis points to 20.5% from 21.4% a year ago, Motilal Oswal said in a research report.

 

Oil and Natural Gas Corp. Ltd. is pegged to contribute 34% to the Nifty 50 companies' total net profit, which is the most among all constituents. This is followed by Bharti Airtel Ltd., which is expected to contribute 13.5% to overall profit. Besides these two companies, Hindalco Industries Ltd., JSW Steel Ltd., and Shriram Finance Ltd. are likely to drive Nifty 50 earnings, according to the report. On other hand, Cipla Ltd., ITC Ltd., State Bank of India Ltd., Dr. Reddy's Laboratories Ltd., and Tata Motors Passenger Vehicles Ltd. are seen as the ones dragging down the headline index's June quarter earnings.

 

Tata Motors PV is the only company among the Nifty 50 constituents which is seen posting a loss in the June quarter. The Sierra maker is projected to report a loss worth INR 1.18 billion on revenues of INR 934.36 billion. The company's EBITDA margin is estimated to decline by 290 bps to 5.7% in the quarter due to commodity pressure, the brokerage said. 

 

The brokerage slashed its earnings per share estimate for the Nifty 50 by 0.8% to INR 1,225 for 2026-27 (Apr-Mar) and to INR 1,422 for FY28. Telecommunications, logistics, healthcare, consumer, and banking, financial services, and insurance sectors have contributed to majority of the reduction in its FY27 earnings estimate, Motilal Oswal said.

 

Meanwhile, valuations of the Nifty 50 companies are attractive even as those of the mid and smallcap companies are elevated, the brokerage said. The Nifty 50 is trading a 12-month forward price-to-earnings multiple of 18.8, which is 11?low its long-period average of 21, Motilal Oswal noted. The Nifty Midcap 100 and the Nifty Smallcap 100 indices, meanwhile, are trading at a multiple of 27.3 and 22.4, respectively, according to the report. The midcap index's valuations are at a 16% premium to its long-period average while those of the smallcap index are at a 27% premium, Motilal Oswal said.

 

The midcap companies under its coverage are expected to report a 14% on-year fall in net profit for Apr-Jun, Motilal Oswal said. Its smallcap universe, on other hand is seen posting a 20% growth in the bottom line. Financials are likely to drive the growth in companies, especially non-banking financial institutions and private banks, as per the report. However, overall earnings of the companies under its coverage radar are estimated to decline by 3% on year, due to weakness in downstream oil companies in the wake of higher crude oil prices. Excluding the earnings of oil marketing companies, profit is projected to grow 14% year on year. 

 

The profit of all companies under the firm's coverage is expected to rise around 15% at a compounded annual growth rate over FY26-28, Motilal Oswal said. "Any broadening of global market leadership or rotation away from AI-centric trades toward a wider range of sectors and markets is likely to serve as a meaningful tailwind for Indian equities," the broking firm said in the report.  End

 

Reported by Ruchira Kagita

Edited by Akul Nishant Akhoury

 

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