NewsEarningsIndia Inc Q2 Earnings: Mixed Performance with 53 Listed Companies Facing Profit DeclinesIndia Inc Q2 Earnings: Mixed Performance with 53 Listed Companies Facing Profit Declines
Motilal Oswal Financial Services estimates show challenges for major players in India's Q2 earnings season. 53 listed companies are expected to report double-digit profit declines, including Tata Motors (31%), Axis Bank (20%), and Hindalco (15%). However, Nifty 50 earnings are projected to rise 6% year-on-year. Sectors like Oil & Gas, NBFC-Lending, Telecom, and Cement are expected to support overall market earnings. Banks face profit declines due to margin pressure. Nuvama Institutional Equities forecasts 6% revenue growth, marking the tenth consecutive quarter of sub-10% top-line growth. Tata Motors has changed its name to 'Tata Motors Passenger Vehicles Limited' as part of a corporate restructuring.
*this image is generated using AI for illustrative purposes only.
India's corporate sector is bracing for a mixed bag of results as the second-quarter earnings season unfolds. Recent estimates from Motilal Oswal Financial Services paint a picture of challenges for several major players, while some sectors show resilience and growth.
Key Highlights
- 53 listed companies expected to report double-digit declines in net profit
- Nifty 50 earnings projected to rise 6% year-on-year
- Tenth consecutive quarter of sub-10% top-line growth
Companies Facing Significant Profit Drops
Several major companies are anticipated to face substantial profit declines in Q2:
| Company | Estimated Profit Decline |
|---|---|
| Tata Motors | 31.00% |
| Axis Bank | 20.00% |
| Hindalco | 15.00% |
| Deepak Nitrite | 41.00% |
Sector-wise Performance
Despite individual company struggles, certain sectors are expected to support overall market earnings:
| Sector | Projected Growth |
|---|---|
| Oil & Gas | 25.00% |
| NBFC-Lending | 21.00% |
| Telecom | Returning to profit |
| Cement | 62.00% |
However, both private and public sector banks are forecasted to report around 7% profit declines, primarily due to margin pressure and moderating credit growth.
Market Outlook
Nuvama Institutional Equities forecasts Q2 revenue growth at 6% year-on-year, marking the tenth consecutive quarter of sub-10% top-line growth. Motilal Oswal maintains a cautiously optimistic outlook:
- Nifty EPS growth projection: 8% this year
- FY27 Nifty EPS growth projection: 16%
- FY26 EPS estimate trimmed by 1.1%
Corporate Action: Tata Motors Name Change
In a recent development, Tata Motors Limited has undergone a name change to "Tata Motors Passenger Vehicles Limited" effective October 13. This change is part of a Composite Scheme of Arrangement involving TML Commercial Vehicles Limited and Tata Motors Passenger Vehicles Limited. The scheme, sanctioned by the National Company Law Tribunal, Mumbai Bench, reflects ongoing corporate restructuring in the auto sector.
As India Inc navigates through this earnings season, investors and analysts will be closely watching how companies manage the challenges of a complex economic environment. The divergent performance across sectors underscores the importance of a nuanced approach to market analysis in the current climate.
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