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Informist, Wednesday, Jul. 8, 2026

 

By Anshul Choudhary

 

MUMBAI - The companies in the Nifty 50 index are likely to report their best revenue growth in over three years in the June quarter, but this is unlikely to translate fully into profit growth as higher costs hit profitability. The net profit is likely to grow at almost half the pace of revenue growth as disruptions due to the US-Iran war increased input costs for companies, affecting margins.

 

Even this lower growth in profit is thanks to just two companies, Oil and Natural Gas Corp. Ltd. and Bharti Airtel Ltd., without which the profit growth would fall to a third of the revenue growth. If the three metal companies that are a part of the benchmark index were to be excluded, along with ONGC and Bharti Airtel, the growth in net profit for the remaining companies would be a measly 4.5% - better than the 3.7% growth for these companies in the March quarter but lower than the 6.7% growth reported in the year-ago quarter.

 

The 49 constituents of the Nifty 50 index for which estimates are available are likely to report a cumulative revenue growth of nearly 18% on year for the quarter, according to an Informist poll of 18 brokerages. If this estimate comes true, it will be the highest revenue growth for the index companies since the March quarter of 2023. Higher consumption, price hikes put into effect by companies, higher commodity prices, and better credit growth helped companies report a sharp jump in revenue growth.

 

The cumulative net profit of the 49 index companies is likely to rise 10.2%--sharply lower than the revenue growth but still much better than the growth seen in the past several quarters. The over-10% rise in the index companies' cumulative profit will be the best growth in over two years. The rise in the net profit is calculated by comparing the latest quarter profit estimates with the year-ago adjusted net profit, which excludes exceptional items, and not with the reported net profit.

 

The above-10% growth in net profit was largely driven by Oil and Natural Gas Ltd., which likely benefitted from a sharp jump in crude oil prices, and Bharti Airtel, which is expected to benefit from higher average revenue per user and growth in subscriber count. Excluding these two companies, the net profit of the remaining 47 companies is likely to rise around 6% only.

 

Select metal companies also aided the overall profit growth as ferrous and non-ferrous product prices jumped due to supply disruptions caused by the US-Iran war. Excluding ONGC, Bharti Airtel, and three metal companies that are a part of the 50-stock index, the cumulative net profit of the remaining 44 companies is likely to rise only 4.5% as compared with the 10% rise in profit expected for all the 50 companies. Earnings estimates were not available for Adani Enterprises Ltd.

 

Analysts expect higher input costs to hit companies' margins in the quarter. The earnings before interest, tax, depreciation, and amortisation margin for the Nifty 50 index companies, excluding financials, is likely to drop 90 basis points on year to 20.5%, according to Motilal Oswal Financial Services Ltd.

 

The net profit growth would have been much better had it not been for Reliance Industries Ltd., car manufacturers and select banks, all of which struggled due to higher input costs. Excluding Reliance Industries, the net profit of the remaining 48 companies is likely to rise just over 11%. Reliance is likely to report a mere 1% rise in net profit during the June quarter due to weakness in its oil and gas business amid a sharp jump in costs.

 

Sequentially, the cumulative net profit of the 49 companies in the index is likely to see a marginal fall of 0.2% in the June quarter. The index companies' revenue is expected to fall 0.5% sequentially.

 

SECTORAL TRENDS

Non-banking financial services, and some consumer-facing companies from jewellery and paints sectors are expected to outperform the overall index companies in terms of both net profit and revenue growth. Airlines, capital goods, banks, and fast-moving consumer goods companies are likely to be a drag on the overall net profit and revenue growth.

 

The automobile sector is likely to be among the top performing sectors during the quarter based on revenue growth as demand has continued to improve despite these companies raising product prices in the aftermath of the war in West Asia. Retail automobile sales volume rose over 15% during the quarter, which is a sharp improvement compared with the nearly 3% rise reported during the year-ago quarter, according to data from the Federation of Automobile Dealers Associations.

 

Owing to strong volume growth, the cumulative revenue of the five automobile companies of the Nifty 50 index rose 19% on year. However, several companies had to use costlier alternatives to natural gas due to the shortages caused by the war, which affected profits. Car manufacturers were the worst hit, with Tata Motors Passenger Vehicle Ltd.'s net profit likely to fall 54%, that of Maruti Suzuki Ltd. likely to fall 12%, and the net profit of Mahindra & Mahindra Ltd. may see a mere 1% rise. Two-wheeler companies were better off as Bajaj Auto Ltd. is likely to benefit from the depreciation of the rupee and Eicher Motors Ltd. from higher motorcycle prices.

 

The five automobile companies' cumulative net profit is likely to drop 7% on year, largely due to weak performance by car makers. Excluding the three car manufacturers that are a part of the benchmark index, the cumulative net profit of 46 companies is likely to rise 11.7% compared with the above-10% rise expected for all the index companies.

 

Companies in other consumption-dependent sectors such as jewellery, retail, and quick-commerce will likely report strong profit growth while the few large fast-moving consumer goods companies are likely to struggle due to high costs. Nestle India Ltd. and Tata Consumer Products Ltd. are likely to report earnings growth of 23-24% during the quarter on the back of price hikes put into effect during the quarter, while Hindustan Unilever Ltd. and ITC Ltd. are likely to report a decline in profits. ITC's net profit may fall 14% on expectations of a sharp drop in cigarette volumes after higher taxes and price increases hit demand.

 

Banks also struggled due to high costs during the quarter, an otherwise better quarter that saw improvement in credit growth. Loan growth for scheduled commercial banks improved to 17.7% at the end of first fortnight of June from just over 16% growth at the end of the March quarter and a sharp improvement from the nearly 10% growth a year ago, according to data from the Reserve Bank of India.

 

While credit growth improved, higher costs meant the net interest income rose at a much slower pace of 9-11% for the five banks that are a part of the index. Further, the net profit of these banks is likely to rise only 9% on year as some brokerages expect higher slippages in the agricultural loan segment. Excluding these banks, the cumulative net profit of the 44 index companies is expected to rise nearly 11% as against above-10% rise expected, including banks.

 

"We expect NIMs (net interest margins) to decline sequentially across most banks driven by higher growth in low yield corporate, home, loans to NBFCs etc. Furthermore, high-cost CD issuances by banks in Q1FY27 were up 32% YoY to fund gap between credit and deposit growth, which should put pressure on NIMs as well," JM Financial Institutional Securities Ltd. said in an earnings preview.

 

Pharmaceutical sector companies continued to face pressure in the US during the quarter with Cipla Ltd. and Dr. Reddy's Laboratories Ltd. likely to report a decline of 30-50% in their net profit and Sun Pharmaceutical Industries Ltd. likely to see its net profit fall 5%. "The decline reflects intensifying competition across several niche products, including g-Revlimid, resulting in price erosion and lower revenue contribution for domestic generic players...Additionally, high freight costs amid ongoing geopolitical disruptions are expected to weigh on profitability during the quarter," Motilal Oswal Financial Services said in its earnings preview.

 

Information technology companies' cumulative revenue is likely to rise 2% sequentially and net profit may fall 3% as discretionary spending in the US remains weak and the war further hit demand from West Asia. Compared with the previous year, revenue for these companies is likely to rise 14% and net profit may rise 10%. Owing to weak growth, some analysts expect companies to cut revenue growth guidance.

 

Following are the Apr-Jun consensus earnings estimates of companies that constitute the National Stock Exchange's Nifty 50 index. These estimates are based on reports compiled by Informist Media from 18 brokerage houses.

 

Company name	Sales, INR million	PAT, INR million	Sales Y-o-Y Change %	PAT Y-o-Y Change %	Sales Q-o-Q Change %	PAT Q-o-Q Change %	EBITDA, INR million	Result date	Number of estimates available
AIRPORTS & AVIATION
Interglobe Aviation	241,542	12,830	17.85	(40.63)	7.65	N.A.	49,150	--	2
Total	241,542	12,830	17.85	(40.63)	7.65	N.A.
AUTO
Bajaj Auto	169,493	28,038	34.68	33.77	5.90	3.51	34,357	--	3
Eicher Motors +	63,854	14,022	26.65	16.34	5.02	(7.75)	15,176	--	3
M&M	410,955	34,763	20.36	0.77	3.77	(6.98)	52,030	May. 5	3
Maruti Suzuki	523,636	32,705	36.32	(11.89)	(0.16)	(8.91)	50,118	--	3
Tata Motors PV +	940,924	11,872	7.32	(53.72)	(10.77)	(79.07)	64,594	--	2
Total	2,108,862	121,399	18.57	(6.82)	(3.96)	(29.54)
BANK
AXIS Bank *	148,196	69,998	9.29	20.56	2.51	(1.01)	N.A.	--	7
HDFC Bank *	344,026	194,093	9.43	6.91	3.99	0.98	N.A.	Apr. 18	7
ICICI Bank *	236,884	147,884	9.49	15.82	3.09	7.93	N.A.	Apr. 18	7
Kotak Mahindra *	80,038	40,084	10.26	22.15	1.63	(0.45)	N.A.	--	5
SBI *	455,750	191,993	10.96	0.20	2.69	(2.46)	N.A.	--	6
Total	1,264,894	644,052	10.03	8.84	3.03	1.10
CAPITAL GOODS
Bharat Electronics	50,187	10,937	13.63	12.85	(50.69)	(50.45)	14,308	--	2
L&T +	656,425	36,189	3.08	0.05	(20.69)	(31.16)	60,775	--	2
Total	706,611	47,126	3.77	2.75	(23.97)	(36.86)
CEMENT
UltraTech Cement +	242,308	25,087	13.89	10.79	(6.08)	(16.20)	49,316	Apr. 27	6
Total	242,308	25,087	13.89	10.79	(6.08)	(16.20)
CHEMICAL
Asian Paints +	101,793	12,674	13.88	15.24	10.09	8.13	18,794	--	5
Grasim Industries	124,710	1,001	35.21	N.A.	5.92	N.A.	8,311	--	2
Total	226,502	13,675	24.71	39.31	7.75	25.40
FINANCE
Bajaj Finance *+	129,661	58,769	26.78	25.05	10.06	7.55	N.A.	Apr. 29	5
Bajaj Finserv + @	391,000	28,000	10.29	0.39	1.54	10.29	N.A.	Apr. 30	1
HDFC Life Insurance Co. >	163,900	6,000	10.18	9.80	(37.97)	21.05	N.A.	Apr. 16	1
Jio Financial Services *+	3,961	3,345	50.00	12.97	15.01	22.88	N.A.	--	1
SBI Life Insurance Co. >	202,100	6,700	13.45	12.72	(27.66)	(16.73)	N.A.	--	1
Shriram Finance*	71,592	30,811	24.02	42.92	6.04	2.24	N.A.	--	6
Total	962,214	133,625	14.00	20.59	(13.89)	6.14
FMCG
Hindustan Unilever	172,558	27,876	8.32	(2.50)	9.68	2.71	39,601	Apr. 30	6
ITC	192,748	42,580	(2.41)	(14.43)	20.09	(16.69)	53,432	--	7
Nestle India	60,326	8,203	18.38	24.43	(10.60)	(28.69)	13,286	Apr. 21	7
Tata Consumer Product +	53,273	4,099	11.47	22.67	(1.96)	(2.69)	7,214	--	5
Total	478,904	82,758	5.12	(6.26)	8.93	(11.93)
IT
HCL Tech +	343,765	44,520	13.27	15.85	1.16	(0.80)	67,816	Apr. 21	14
Infosys +	484,692	79,015	14.64	14.17	4.46	(7.05)	118,585	Apr. 23	14
TCS +	718,436	133,918	13.25	4.95	1.62	(2.38)	183,272	Apr. 9	14
Tech Mahindra +	154,588	15,810	15.79	38.61	2.54	16.78	27,017	Apr. 22	14
Wipro +	248,148	34,281	12.11	2.93	2.39	(2.11)	48,007	Apr. 16	14
Total	1,949,629	307,544	13.65	9.86	2.40	(2.56)
JEWELLERY
Titan Co.	201,159	12,788	38.12	24.16	(15.95)	18.96	20,903	--	4
Total	201,159	12,788	38.12	24.16	(15.95)	18.96
METAL & MINING
Hindalco Industries +	791,089	65,265	23.16	63.00	1.25	(4.29)	108,165	May. 22	2
JSW Steel +	452,015	34,352	4.76	57.29	(11.68)	N.A.	86,866	May. 14	3
Tata Steel +	576,671	21,235	8.44	(3.91)	(8.86)	(34.98)	92,222	--	3
Total	1,819,774	120,852	13.34	43.91	(5.51)	41.07
OIL & GAS
ONGC	462,399	137,730	44.49	71.64	28.70	107.11	269,202	--	5
Reliance Ind +	3,107,960	182,526	27.57	1.01	5.69	7.55	457,118	--	4
Total	3,570,359	320,256	29.53	22.73	8.20	35.58
PHARMA, Healthcare
Apollo Hospitals Enterprise +	69,042	5,731	18.18	32.42	4.52	8.28	10,363	--	3
Cipla +	72,028	8,943	3.53	(31.08)	10.11	61.25	13,639	May. 13	3
Dr. Reddy's Lab +	83,922	7,027	(2.10)	(50.45)	11.21	218.12	14,917	May. 12	3
Max Healthcare Institute +	27,732	4,105	36.78	33.28	29.42	19.94	6,997	--	3
Sun Pharma +	154,458	29,323	11.51	(5.31)	5.71	8.04	42,140	--	3
Total	407,182	55,130	9.31	(15.87)	8.73	26.41
POWER
Adani Enterprises +	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	--	--
Coal India +	453,593	82,658	26.55	(5.46)	(2.43)	(23.74)	117,561	--	3
NTPC	463,208	44,175	8.80	(7.48)	7.45	(49.50)	121,400	--	3
Power Grid	120,929	38,405	21.80	5.13	21.28	(15.65)	98,113	--	3
Total	1,037,730	165,238	17.47	(3.77)	4.22	(31.55)
PORTS
Adani Ports and SEZ +	107,367	34,541	17.65	4.21	(0.01)	1.87	62,089	--	3
Total	107,367	34,541	17.65	4.21	(0.01)	1.87
RETAIL
Trent	58,336	5,005	22.01	18.44	18.17	10.06	10,330	--	3
Total	58,336	5,005	22.01	18.44	18.17	10.06
SERVICES
Eternal +	191,484	3,272	167.17	1,208.60	10.74	88.02	6,729	--	4
Total	191,484	3,272	167.17	1,208.60	10.74	88.02
TELECOM
Bharti Airtel +	573,107	89,112	15.87	49.82	3.48	(15.02)	326,890	--	6
Total	573,107	89,112	15.87	49.82	3.48	(15.02)
Nifty Total	16,147,964	2,194,285	17.93	10.24	(0.48)	(0.21)

 

Notes:

+ Consolidated Figure

* Net interest Income

Y-o-Y: Year-on-Year

Q-o-Q: Quarter-on-Quarter

# Net premium income

@ Total income

> Gross premium income

N.A.: Not Available

 

Estimates from:

Anand Rathi Share and Stock Brokers Ltd., Axis Securities Ltd., Centrum Broking Ltd., Dolat Capital Market Pvt Ltd., Elara Securities (India) Pvt. Ltd., Emkay Global Financial Services Ltd., HDFC Securities Ltd., ICICI Securities Ltd., IDBI Capital Market Services Ltd., JM Financial Institutional Securities Pvt. Ltd., Kotak Securities Ltd., Motilal Oswal Financial Services Ltd., Nirmal Bang Equities Pvt. Ltd., Nomura Equity Research, Nuvama Wealth Management Ltd., Prabhudas Lilladher Pvt. Ltd., Systematix Shares and Stocks (India) Ltd. and YES Securities (India) Ltd.

End

 

Compiled by Mayur Nijap

Edited by Deepshikha Bhardwaj

 

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