India Inc earnings surge, 19 sectors beat Q1 estimates across key metrics

India Inc delivered a stronger-than-expected performance in the first quarter of FY27, with 19 sectors surpassing forecasts and earnings growth spreading across market-cap segments, according to a Motilal Oswal Financial Services (MOFSL) report.

The brokerage said financials, metals, automobiles, and oil and gas excluding oil marketing companies (OMCs) were among the principal growth engines. Technology, telecom, chemicals, textiles and real estate also supported the earnings expansion.

Forecasts surpassed: Across the MOFSL Universe excluding OMCs, revenue climbed 18% year-on-year, beating the brokerage’s 15% forecast. EBITDA increased 15%, against 10% expected, while PAT jumped 22%, compared with the estimated 15%. BFSI, metals, oil and gas excluding OMCs, technology and telecom contributed significantly to the better performance. OMCs were the notable exception. Elevated crude prices pushed the segment to a ₹181-bn loss, reversing a ₹162-bn profit in the corresponding period last year. Cement and InterGlobe Aviation also dragged aggregate earnings. 

Nifty strengthens: Nifty companies recorded 18% year-on-year PAT growth, their strongest showing in 10 quarters and substantially above MOFSL’s 10% estimate. Large-cap companies delivered 21% earnings growth, compared with the projected 14%.  Mid-cap earnings advanced 23%, marking an 11-quarter high, while small-caps recorded the strongest expansion at 31%, against the brokerage’s 22% forecast.

Upgrades outpace cuts: The strength was broad-based at the company level. About 48% of companies in the MOFSL Universe exceeded PAT forecasts, while 25% missed. Among large-caps, 57% beat estimates, compared with 39% of mid-caps and 48% of small-caps.