Mumbai, Aug 16 (IANS) Indian corporate earnings delivered a broad-based performance in the first quarter of FY27, with 19 sectors exceeding expectations and financials, metals, oil and gas excluding OMCs, and automobiles emerging as key growth drivers, a report said on Sunday.
The data compiled by Motilal Oswal showed the Q1 FY27 earnings season concluded on a strong note, with corporate performance exceeding expectations across major aggregates.
While elevated crude oil prices weighed heavily on oil marketing companies (OMCs), sectors such as Financials, Metals, Oil and Gas excluding OMCs, Technology, Telecom, Chemicals, Textiles and Real Estate contributed positively to earnings growth.
For the Motilal Oswal Financial Services (MOFSL) Universe excluding OMCs, sales, EBITDA and profit after tax (PAT) grew 18 per cent, 15 per cent and 22 per cent year-on-year, respectively, compared with the brokerage’s estimates of 15 per cent, 10 per cent and 15 per cent growth.
The report attributed the strong performance primarily to BFSI, Metals, Oil and Gas excluding OMCs, Technology and Telecom.
On the other hand, OMCs remained the biggest drag, reporting a loss of Rs 181 billion against a profit of Rs 162 billion in the year-ago period.
Cement and InterGlobe Aviation also weighed on the overall earnings performance, according to the report.
The Nifty delivered 18 per cent year-on-year PAT growth, marking a 10-quarter high and significantly exceeding Motilal Oswal’s estimate of 10 per cent.
Across market-cap segments, earnings growth exceeded estimates. Large-cap companies in the MOFSL Universe reported 21 per cent year-on-year earnings growth against the estimated 14 per cent.
Mid-caps recorded 23 per cent growth, marking an 11-quarter high, while small-caps delivered 31 per cent growth, compared with the brokerage’s estimate of 22 per cent.
The earnings beat was also broad-based. Around 48 per cent of companies in the MOFSL Universe exceeded estimates at the PAT level, while 25 per cent reported a miss.
Among large-caps, 57 per cent of companies beat expectations, compared with 39 per cent among mid-caps and 48 per cent among small-caps.
The report further highlighted a favourable upgrade cycle, with 130 companies receiving earnings upgrades of more than 3 per cent against 89 companies witnessing downgrades of more than 3 per cent.
–IANS
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