A Motilal Oswal report reveals mid-cap companies are the standout performers in the Q4 FY26 earnings season, with 29% YoY growth. Large-caps and small-caps posted in-line results, while overall Nifty earnings estimates remained largely stable.
Mid-cap companies have emerged as strong performers in the ongoing fourth quarter earnings season, while Nifty earnings estimates have remained largely stable, according to a report by Motilal Oswal Financial Services.
The report, titled "Interim Review 4QFY26: In-line print; mid-caps stand out", stated that as of May 6, a total of 154 companies in the MOFSL Universe and 28 Nifty companies had announced their Q4 FY26 results. These companies accounted for 56 per cent and 67 per cent of estimated profit after tax (PAT) for the MOFSL and Nifty universe, respectively, along with 39 per cent of India's market capitalisation and 67 per cent weightage in the Nifty.
MOFSL Universe Earnings Growth
According to the report, earnings of the 154 MOFSL Universe companies grew 17 per cent year-on-year in Q4 FY26, broadly in line with estimates of 13 per cent growth. The earnings growth was mainly driven by sectors such as Metals, BFSI, Technology and Automobiles.
Sectoral Growth Drivers
It stated "Mid-caps deliver better-than-estimated numbers, while large-caps and small-caps post in-line results" The report stated that the Metals sector posted the strongest growth at 53 per cent year-on-year, followed by BFSI at 18 per cent, Technology at 12 per cent, and Automobiles at 22 per cent. These four sectors together contributed 96 per cent of the incremental year-on-year earnings growth so far.
Nifty Companies' Earnings
The report further noted that among the 28 Nifty companies that have announced results so far, earnings grew 7 per cent year-on-year, slightly above estimates of 6 per cent.
Key Nifty Contributors
The report highlighted that earnings growth in the Nifty was led by HDFC Bank, Infosys, TCS, Mahindra & Mahindra and Coal India, which together contributed 73 per cent of the incremental earnings growth.
Mid-Caps Deliver Standout Performance
The report stated that mid-cap companies delivered stronger-than-expected earnings growth of 29 per cent year-on-year, compared to estimates of 22 per cent. Large-cap companies posted 14 per cent earnings growth, while small-cap companies recorded 30 per cent growth, broadly in line with expectations.
Nifty EPS Estimates Remain Stable
The report also said that earnings estimates for the Nifty remained stable. It shared that Nifty earnings per share (EPS) estimate for FY26 remained almost unchanged at Rs 1,059 compared to Rs 1,060 earlier, while FY27 EPS estimate stood at Rs 1,247 against Rs 1,246 previously. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)