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Informist, Wednesday, Aug. 26, 2026

 

By Astha Oriel 

 

NEW DELHI – The June quarter earnings performance of capital goods companies on the Nifty 200 index was better than expected, with the year-on-year growth in aggregate adjusted net profit and aggregate net sales exceeding analysts' estimates. The companies' aggregate adjusted net performance also exceeded that of Nifty 200 and Nifty 50 companies. However, the year-on-year increase in aggregate net sales of the capital goods companies lagged that of Nifty 200 and Nifty 50 companies by a wide margin. 

 

The aggregate adjusted net profit of the 18 capital goods companies grew more than 28% on year, faster than analysts' estimate of a nearly 25% rise for the June quarter. Net profit growth was also higher than that of Nifty 200 and Nifty 50 companies. The aggregate adjusted net profit of Nifty 200 companies grew nearly 12% on year, while that of Nifty 50 companies grew over 17% on year.

 

Aggregate net sales for the 18 companies grew 16% year on year, faster than the Street's estimate of more than 15% for the June quarter.

 

However, net sales growth was below that of Nifty 200 and Nifty 50 companies. Aggregate net sales of Nifty 200 companies jumped over 21% on year, while those of Nifty 50 companies grew nearly 19% on year.

 

At over 28% on-year rise in the June quarter, aggregate adjusted net profit for the capital goods companies grew for the 20th consecutive quarter. Aggregate adjusted net profit grew over 13% on year in the March quarter and 22% on year in the year-ago quarter. 

 

Aggregate net sales rose 16% on year in the June quarter, faster than in the year-ago quarter but slower than in the trailing quarter. Aggregate net sales grew over 13% on year in the year-ago quarter and 18% on year in the March quarter. 

 

The financial performance of the capital goods companies in the Nifty 200 index was driven by Larsen & Toubro Ltd. L&T accounted for nearly 40% of the aggregate adjusted net profit and over 50% of the aggregate top line of the 18 capital goods companies. For the June quarter, Larsen & Toubro's adjusted net profit grew nearly 14% on year, exceeding analysts' consensus estimate of a 6.4% on-year rise. However, the engineering major's net sales rose 6.7% on year, below the Street's estimate of a 7.7% increase.

 

At 14% on-year growth, Larsen & Toubro's adjusted net profit growth fell short of the sector's aggregate growth of 28%. The company's top line grew 6.7% on year, also below the sector's aggregate top-line growth of 16%.

 

Excluding Larsen & Toubro, the aggregate adjusted net profit of the other 17 companies grew 39.8% on year and was in line with analysts' consensus estimates. Analysts had estimated aggregate adjusted net profit to grow nearly 39.5% on year for the 17 companies. The aggregate top line jumped 27.2% on year, exceeding the Street's view. Analysts had estimated aggregate net sales to rise 24.5% on year for the 17 companies in the June quarter.

 

Of the 18 capital goods companies, nine companies surpassed and nine missed the Street's estimates for adjusted net profit. Notably, Bharat Heavy Electricals Ltd.'s adjusted net profit turned positive in the June quarter at INR 3.82 billion versus analysts' estimate of INR 1.6 billion. The company had incurred a net loss of INR 4.55 billion in the year-ago quarter. On revenue growth, 10 companies beat and eight missed analysts' estimates.   

 

CONTRIBUTING FACTORS

 

The 28.2% growth in aggregate adjusted net profit outpaced the 16% year-on-year rise in aggregate net sales for the 18 capital goods companies. Net profit growth was supported by a sharp year-on-year jump in other income. A slower year-on-year rise in total expenses than in revenue from operations also aided net profit growth.

 

Other income grew 40.5% on year and was higher than in the trailing and year-ago quarters. Aggregate other income declined over 1% on year in the March quarter but surged nearly 33% on year in the year-ago quarter.

 

Total expenses grew 15.1% on year, slower than revenue from operations, which rose 16.0% in the June quarter. In the trailing quarter, aggregate adjusted net profit grew over 13% on year, slower than the more than 18% rise in aggregate net sales. In the year-ago quarter, aggregate adjusted net profit rose 22.1% on year, compared with a 13.4% rise in aggregate net sales. 

 

The 15% on-year increase in aggregate total expenses in the June quarter was slower than in the trailing quarter but higher than in the year-ago quarter. Aggregate total expenses grew 18.1% on year in the trailing quarter and 13.1% on year in the year-ago quarter.

 

LAGGARDS, OUTSHINERS

 

Hitachi Energy India Ltd, Polycab India Ltd., and GE Vernova T&D India Ltd. were the only companies that outperformed analysts' estimates for both adjusted net profit growth and top-line growth. Hitachi Energy's adjusted net profit grew over 123% year on year, higher than analysts' estimate of over 121% growth. Its top line jumped nearly 69% on year, above the Street's estimate of more than 53% growth.

 

Polycab India's adjusted net profit rose over 32% on year, above the Street's estimate of more than 19%. The company's net sales rose 39% on year, above analysts' estimate of a 33% increase.

 

GE Vernova's adjusted net profit grew 24.7% on year, above analysts' estimate of a 17.4% rise. The company's top line jumped 38.0% on year, above analysts' estimate of a 32.3% increase.

 

Of the companies whose adjusted net profit growth lagged analysts' estimates, Siemens Ltd., Cummins Ltd., and Tube Investments of India Ltd. were the worst underperformers. Siemens' adjusted net profit declined nearly 19% on year, compared with analysts' estimate of a nearly 8?cline. Cummins' adjusted net profit fell nearly 8% on year, compared with analysts' expectation of nearly 12% growth. Tube Investments' adjusted net profit fell nearly 6% on year, compared with the Street's estimate of more than 6% growth.

 

Meanwhile, of the eight that underperformed analysts' estimates for year-on-year top-line growth, Container Corp. of India Ltd. and Supreme Industries Ltd. were the biggest underperformers. Container Corp. of India's net sales remained flat, compared with analysts' expectations of a 3% on-year rise. Supreme Industries' top line grew over 4% on year, below analysts' estimate of nearly 14% growth.

 

Following is the June quarter performance of the 18 companies in the capital goods sector vis-a-vis analysts' average estimate for each company as well as against the average estimates for the sector and the Nifty 200 index on aggregate:

 

Company	PAT beat analysts' estimate	Adjusted PAT growth %	Analysts PAT growth estimate %	PAT beat sector estimate	PAT beat Nifty 200 estimate	Net sales beat analysts' estimate	Net sales growth %	Analysts Net sales growth estimate %	Net sales beat sector estimate	Net sales beat Nifty 200 estimate
Capital goods sector	YES	28.22	24.68	-	YES	YES	16.01	15.32	-	NO
Nifty 200 index	YES	11.73	-6.02	-	-	YES	21.12	18.67	-	-
ABB India	NO	5.21	8.97	NO	NO	YES	21.03	14.31	YES	NO
APL Apollo Tubes	NO	10.94	15.14	NO	NO	YES	8.45	1.16	NO	NO
Astral	YES	47.97	47.90	YES	YES	NO	15.93	17.10	NO	NO
Bharat Heavy Electricals	YES	(INR 3.82 billion)	(INR 1.69 billion)	-	-	YES	40.29	29.05	YES	YES
CG Power and Industrial Solutions	NO	16.26	24.56	NO	YES	NO	13.99	22.84	NO	NO
Container Corp. of India	NO	7.74	10.73	NO	NO	NO	0.21	3.01	NO	NO
Cummins India	NO	-7.85	11.72	NO	NO	YES	17.86	10.55	YES	NO
GE Vernova T&D India	YES	24.65	17.41	NO	YES	YES	38.04	32.34	YES	YES
Hitachi Energy India	YES	123.52	121.09	YES	YES	YES	68.62	53.46	YES	YES
KEI Industries	YES	40.05	26.19	YES	YES	NO	22.97	24.37	YES	YES
Larsen and Toubro	YES	13.98	6.44	NO	YES	NO	6.69	7.67	NO	NO
Polycab India	YES	32.46	19.40	YES	YES	YES	39.01	33.01	YES	YES
Premier Energies	YES	50.45	48.69	YES	YES	NO	35.25	36.93	YES	YES
Rail Vikas Nigam	NO	21.72	89.68	NO	YES	YES	9.62	9.54	NO	NO
Siemens	NO	-18.82	-7.94	NO	NO	YES	14.75	12.44	NO	NO
Supreme Industries	YES	38.76	10.29	YES	YES	NO	4.16	13.86	NO	NO
Tube Investments of India	NO	-5.63	6.13	NO	NO	YES	17.92	12.69	YES	NO
Waaree Energies	NO	14.09	31.64	NO	YES	NO	79.22	83.42	YES	YES

End

 

Edited by Saji George Titus

 

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