The brokerage’s coverage universe, excluding oil-marketing companies, recorded sales, Ebitda and profit growth of 18%, 15% and 22%, respectively.
Non-bank lenders added Rs 8,000 crore, private sector banks Rs 7,300 crore and state-run banks Rs 3,900 crore.Metals produced one of the sharpest turnarounds.
Hindalco’s profit increased 118%, while JSW Steel posted growth of 96%.
Mid-cap profit increased 23% against an expected 17%, reaching an 11-quarter high.Small caps recorded the fastest growth, with profit surging 31% versus an estimate of 22%.
About 57% of large-cap companies exceeded Motilal Oswal’s profit estimates, compared with 39% of mid caps and 48% of small caps.
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Profit at Nifty50 companies climbed 18% from a year earlier in Q1 of FY27, the fastest growth in 10 quarters and well above Motilal Oswal Financial Services ’ estimate of 10%. Yet five companies—ONGC, Hindalco Industries JSW Steel and Bharti Airtel—accounted for 60% of the incremental earnings.Motilal Oswal described the quarter as a “picture-perfect” period of broad-based performance, with 19 sectors exceeding its expectations. The brokerage’s coverage universe, excluding oil-marketing companies, recorded sales, Ebitda and profit growth of 18%, 15% and 22%, respectively. Its estimates had called for growth of 15%, 10% and 15%.But while earnings surprises were widespread, the actual profit expansion remained clustered. The five biggest sector contributors generated 73% of the incremental profit in Motilal Oswal’s universe during the quarter.Oil and gas companies excluding OMCs contributed Rs 16,900 crore to the year-on-year profit increase, followed by metals at Rs 15,700 crore. Non-bank lenders added Rs 8,000 crore, private sector banks Rs 7,300 crore and state-run banks Rs 3,900 crore.Metals produced one of the sharpest turnarounds. The sector moved from being among the bottom 10 profit contributors a year earlier to the second largest contributor in the June quarter. Hindalco’s profit increased 118%, while JSW Steel posted growth of 96%. Vedanta ’s profit surged 152%. Nifty ’s earnings strength was similarly concentrated. Beyond the five leading contributors, InterGlobe Aviation ITC , Dr. Reddy’s Laboratories, Tata Motors ’ passenger vehicle business and Cipla weighed on profit growth.The divergence becomes more evident in earnings revisions. Despite the Nifty’s 18% profit growth and sizable beat against expectations, Motilal Oswal raised its fiscal 2027 Nifty earnings-per-share estimate by just 0.6% to Rs 1,232. Its FY28 estimate was increased by 0.3% to Rs 1,425 from Rs 1,422.Reliance, Hindalco, ONGC, ICICI Bank and State Bank of India drove the FY27 upgrade. Hindalco received the biggest revision among Nifty companies, with its estimate raised 21.9%. Tata Motors’ passenger vehicle business was upgraded 12.3%, SBI Life Insurance 9.5%, ONGC 7.8% and Reliance 7.4%.At the other end, InterGlobe Aviation’s estimate was cut 32.8%, the steepest reduction in the index. Dr. Reddy’s was lowered 19%, Tata Steel 13.4% and Wipro 11.8%.The broader market-cap data presented a stronger growth profile. Excluding OMCs, profit at large-cap companies in Motilal Oswal’s universe rose 21%, compared with its 14% estimate. Mid-cap profit increased 23% against an expected 17%, reaching an 11-quarter high.Small caps recorded the fastest growth, with profit surging 31% versus an estimate of 22%. That performance, however, was supported by a favourable comparison with the year-earlier quarter, when profit had increased just 1%. Financial and oil and gas companies were the principal drivers of the small-cap improvement.The quality of the earnings beat also varied across market-cap segments. About 57% of large-cap companies exceeded Motilal Oswal’s profit estimates, compared with 39% of mid caps and 48% of small caps. Across the entire coverage universe, 48% beat estimates while 25% missed them.Oil marketing companies were the biggest drag on the overall results. The group reported a combined loss of Rs 18,100 crore, compared with a profit of Rs 16,200 crore a year earlier, as elevated crude oil prices hurt performance. InterGlobe Aviation also swung to a loss of Rs 380 crore from a profit of Rs 2,160 crore.The earnings season nevertheless produced more upgrades than cuts. Motilal Oswal raised FY27 estimates by more than 3% for 130 companies and lowered them by a similar magnitude for 89, resulting in an upgrade-to-downgrade ratio of 1.5 times, the strongest in 22 quarters.The brokerage increased its FY27 profit estimate for the overall coverage universe by 2%. Large-cap estimates rose 2.5% and small-cap projections increased 1.1%, while the mid-cap forecast was virtually unchanged, declining 0.1%.
