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Informist, Tuesday, Jul. 7, 2026

 

--Nuvama estimates Nifty 50 Apr-Jun earnings to grow 9% on year 

--Nuvama says West Asia war likely to hurt Apr-Jun earnings of Indian cos 

--Nuvama says Q1 margins to take a hit on higher input costs 

 

MUMBAI – Cumulative profits of Nifty 50 companies are expected to rise 9% on-year in the June quarter and by 14% in 2026-27 (Apr-Mar), according to Nuvama Institutional Equities. The impact of the war in West Asia is likely to affect the first half of FY27, with margins seen taking a hit due to higher input prices. In the second half of the financial year, focus is expected to shift to top-line growth, the brokerage said. 

 

In the second half of FY27, demand-related risks could rise, Nuvama said. The benefits of recent tax cuts and a low base are fading, while risks from El Nio are likely to rise, the brokerage said. These factors may lead to cuts in earnings-per-share estimates for companies in FY27 with a defensive bias, it said. 

 

Excluding oil marketing companies, Nuvama forecasts the cumulative profit of the companies in its coverage to grow around 12% on year in the June quarter, while sales are estimated to increase 17% on year. "This is encouraging, but is partly influenced by the war-led supply shock and low base," the brokerage said.  

 

For the June quarter, the profits of companies across the automobile, cement, chemicals, pharmaceuticals, electronic manufacturing services, and fast-moving consumer goods sectors are expected to either be flat or contract, largely due to supply disruptions caused by the war, Nuvama said. 

 

On the other hand, commodity sectors, excluding oil marketing companies, are expected to post strong profit growth as they have benefited from supply-related shocks, the brokerage said. Profits of non-banking financial companies and consumer durables companies are likely to increase over 20% on year owing to a lower base. Information technology companies and industrials, meanwhile, are projected to see profit growth of 10-12% in the June quarter, according to Nuvama. 

 

The brokerage remains overweight on cement, IT, pharmaceuticals, consumer, private banks, and chemicals. On the other hand, it is underweight on industrials, metals, power, and public sector banks. End

 

Reported by Ruchira Kagita

Edited by Saji George Titus

 

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