Motilal Oswal on interim review of the 1QFY26 earnings season!
Data based on 1QFY26 results
38 Nifty companies that have declared results so far
👍 Earnings +7.5% YoY vs. est. of +5.7% YoY
Nifty EPS cut for FY26E/FY27E
👉 Nifty EPS for FY26E has been cut by 1.1% & currently stands at Rs.1110
👉 FY27E EPS has also been cut by 0.8% to Rs.1,297 vs Rs.1,308 due to cuts in earnings of Reliance Industries, Axis Bank, Power Grid Corp, HDFC Bank, and Kotak Mahindra Bank
Nifty EPS Outlook
👉 Nifty50 EPS growth is projected to rise to ~10% in FY26 vs. an anemic 1% in FY25
👉 Nifty trades at 22.1x FY26E earnings vs its Long-period average of 20.7x
On Midcaps
👉 Turned more constructive towards mid-caps with 22% weight vs. 16% earlier
