Aggregate revenue and net profit across Nifty 50 companies are projected to log double-digit growth year-on-year for the September quarter, driven by automobiles, banking, metals, and oil and gas, according to The Economic Times (ETIG) estimates. Revenue is expected to expand 19.9% while net profit climbs 22.3%, benefiting from a lower base.
Driving Factors Behind September Quarter Earnings
- Aggregate revenue is projected to grow 19.9% year-on-year, supported by steady domestic demand and public sector capital expenditure.
- Net profit estimates stand at 22.3% growth, recovering from a lower base of 8.4% profit growth in the corresponding quarter of the previous year.
- Operating margins at the aggregate level are expected to contract by a marginal 20 basis points to 21.9% due to rising input cost pressures.
Sector-Specific Performance Drivers and Margin Pressures
Automobile manufacturers experienced double-digit sales volume growth across most segments during the quarter, though irregular monsoons weighed on tractor demand. While automaker revenues are expected to rise significantly, profitability remains constrained by higher raw material costs. Banking and finance institutions expect low double-digit growth in net interest income, fueled by strong loan demand rather than increased net interest margins. Non-interest income is expected to soften on lower treasury returns.
Capital goods and infrastructure firms maintained strong order books driven by power generation, transmission, data centers, and infrastructure projects. Raw material costs continue to weigh on margins, though selective price pass-throughs have softened the impact. Cement demand posted higher single-digit growth despite the monsoon season, supported by steady construction activity across central, western, and northern regions.
| Sector | Expected Metric | Primary Driver |
|---|---|---|
| Automobiles | Double-digit revenue growth | Resilient domestic sales volume |
| Banking & Finance | Low double-digit NII growth | Strong credit and loan expansion |
| Information Technology | Under 2-3% sequential revenue growth | Cautious client spending on discretionary projects |
| Metals | Strong non-ferrous performance | Elevated aluminium, copper, and zinc prices |
Divergent Trajectories Across Technology and Pharmaceuticals
Top-tier Information Technology companies face muted top-line growth as clients maintain a cautious approach toward large discretionary projects. Sequential revenue growth is projected to stay below 2–3% in constant currency terms. However, operating margins may show a modest uptick given the absence of major wage increases. The depreciation of the rupee by approximately 8.7% against the dollar during the quarter provides a tailwind for rupee-denominated earnings.
Analyst Projections and Medium-Term Outlook
Gautam Duggad, MD and Head of Sales for Institutional Equities at Motilal Oswal Financial Services (MOFSL), expects Nifty earnings to increase by 27%, with a 22% increase for the broader MOFSL coverage universe. “Excluding oil marketing companies, aggregate earnings for the MOFSL Universe are expected to grow 24% year-on-year during the quarter,” Duggad noted. Feroze Azeez, Joint CEO of Anand Rathi Wealth, highlighted that broader earnings are underpinned by domestic demand, credit growth, government spending, and a private capital expenditure recovery.
Looking ahead to FY27, Anand Rathi Wealth projects Nifty 50 earnings per share to climb to ₹1,240 from ₹1,088, representing 14% growth. Analysts remain constructive on medium-to-long-term performance despite near-term headwinds such as volatile energy prices, geopolitical tensions, and tariff risks.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
