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Informist, Thursday, Jan. 8, 2026

 

--Motilal Oswal: Expect Nifty 50 cos net profit to rise 8% on year in Oct-Dec 

--Motilal Oswal: Expect Nifty 50 cos revenue to rise 11% on year in Oct-Dec 

--Motilal Oswal: Cut Nifty 50 FY26 EPS by 2.2%; see it rising 9% on year 

--Motilal Oswal: Cut Nifty 50 FY27 EPS by 1.1%; see it rising 15% on year 

 

MUMBAI – Motilal Oswal Financial Services expects the bottom line of Nifty 50 companies to rise 8% on year in the December quarter. It sees 11% on-year growth in the revenue of these companies, according to its India strategy report. The brokerage said it is optimistic that the earnings cycle will look more reasonable, given a favourable backdrop.

 

Motilal Oswal has cut the estimate for earnings per share of Nifty 50 companies by 2.2% for FY26 and by 1.1% for FY27. It expects the metric to rise 9% on year in FY26 and 15% on year in FY27. The brokerage believes the cycle of cuts in earnings estimates has started to moderate with a lower intensity of earnings estimates cuts during Jul-Sept of 2024-25 (Apr-Mar) and Apr-Jun of FY26. 

 

Further, it expects the earnings of Nifty 50 companies to rise 8% on year in FY26. The overall earnings growth is expected to be strong, led by earnings of oil and gas, non-banking financial, automobile, metal, telecom, information technology, real estate, capital goods, and cement companies. These sectors are likely to contribute 77% of the incremental on-year accretion in earnings.

 

For companies under its coverage, Motilal Oswal projects a 16% rise on year in net profit for the December quarter and 8% rise in revenue. Excluding financial companies, the net profit of the companies tracked by the brokerage is expected to jump 19% on year and that of Nifty 50 companies is seen up 9% on year.

 

The earnings before interest, tax, depreciation, and amortisation of Nifty 50 companies is likely to rise 10% on year. Excluding metal and oil and gas companies, it is seen up 13% on year, the brokerage said. 

 

Of the Nifty 50 companies, 19 are likely to report net profit growth of over 15% on year and 12 companies are expected to report either a loss or an on-year dip in net profit, Motilal Oswal said.

 

The Nifty 50 closed the year 2025 with 10.5% gains amid highetened volatility due to geopolitical tensions, US trade tariff headwinds, and the Japan carry-trade unwind, among other factors. Additionally, the absence of a strong investment in artificial intelligence, sharp depreciation in the rupee, moderate domestic corporate earnings, subdued consumption growth, and concerns around relatively high valuations led to heavy outflow of foreign investments during the year.

 

However, multiple fiscal and monetary policy measures, such as personal income tax cuts, lower goods and services tax, repo rate cuts, and several liquidity measures implemented by the RBI, along with record inflows by domestic investors, helped the Indian equity market end the year in positive territory, testing fresh record highs. Despite all this, the Nifty 50 underperformed its gloabl peers. 

 

The valuation of the Nifty 50 remains fair while that of broader markets remains elevated, Motilal Oswal said. The 50-stock index is trading at a 12-month forward price-to-earnings ratio of 21.2 times. "In contrast, the Nifty Midcap-100 and the Nifty Smallcap-100 indices are trading at 28.4x and 23.7x, implying premiums of ~22% and ~40% to their LPAs (long period average), respectively," the brokerage firm said.  End

 

Reported by Simran Rede

Edited by Avishek Dutta

 

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