Motilal Oswal Financial Services estimates that 53 listed companies may post double-digit declines in net profit during the second-quarter (Q2) earnings season of 2025. Key companies facing significant drops include:
- Tata Motors: 31% decline in net profit
- Axis Bank: 20% decline
- Hindalco: 15% decline
- Deepak Nitrite: 41% decline
Overall Market Outlook
Despite these individual company setbacks, the overall market earnings are expected to stay stable. The Nifty 50 earnings are projected to grow 6% year-on-year. Key sectors contributing to growth include:
- Oil & Gas: Up 25%
- NBFC-Lending: Up 21%
- Telecom: Returning to profit
- Cement: Up 62%
However, both private and public sector banks are likely to see around 7% profit decline due to margin pressure and moderating credit growth.
Revenue and Earnings Forecast
Nuvama Institutional Equities forecasts Q2 revenue growth of 6% year-on-year, marking the tenth consecutive quarter of sub-10% top-line growth. Motilal Oswal expects Nifty EPS to grow 8% in FY26 and 16% in FY27, while trimming its FY26 EPS estimate by 1.1%.
Summary
In short, while several companies face profit declines in Q2, strong sectoral growth in Oil & Gas, NBFC, Telecom, and Cement supports the overall market. Investors should monitor banks’ performance closely amid margin pressures.
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