Q1 earnings: The first quarter earnings season of the financial year 2025-2026 (FY26) is upon us, with IT behemoth Tata Consultancy Services (TCS) ready to set the ball rolling this week.
Q1 was a tumultuous period, marked by heightened market volatility driven by tariff concerns and geopolitical risks. Nevertheless, the resilience of the Indian economy bolstered investor sentiment, with the Nifty 50 rising over 8%, inching closer to its September highs.
Domestic brokerage Motilal Oswal Financial Services (MOSL) has dubbed Q1FY26 the “Crossover Quarter,” anticipating a shift from the subdued, low single-digit earnings growth seen in FY25 to a more sustainable double-digit growth trajectory over the next four quarters.
Estimates by MOSL analysts suggest a 10% and 5% YoY growth in 1QFY26 MOFSL and Nifty earnings, respectively.
In contrast, Nuvama Institutional Equities remains cautious, expecting the weak earnings momentum of FY25 to persist into Q1FY26. “In Q1FY26E, profit growth for our coverage (ex-OMCs) shall grow 5% YoY (versus 8% in Q4FY25). On a YoY basis, profits are likely to be weak for metals, IT, pharma, autos and durables. Chemicals, telecom and industrials shall post strong profit growth,” it said.
Profit Churners
Despite the divergence, there will unlikely be few standout performers. Taking into consideration the companies under MOSL’s coverage universe, there are 25 such names that could see an over 100% boost to their bottomline.
According to MOSL, six companies are expected to post PAT growth in four digits, with renewable energy company ACME Solar projected to lead with an 8,188% growth in Q1 PAT to ₹115.1 crore, while the company is likely to report revenue growth of ~67% YoY to ₹520 crore.
SignatureGlobal follows with a profit growth expectation of 2,910% to ₹203.6 crore. The company recently acquired two land parcels in Gurugram totalling 10 acres to build housing projects. The company plans to invest ₹2,500 crore in 2025-26 fiscal on construction activities as against ₹1,900 crore in the preceding fiscal.
Meanwhile, another real estate firm Kolte-Patil Developers is seen posting a 1,673.90% rise in Q1 PAT to ₹110.5 crore.
PSU oil marketing companies – HPCL, BPCL and IOCL – all are expected to post a strong surge in Q1 PATs, driven by an improvement in marketing margins. HPCL’s PAT is seen growing 1283%, IOCL’s 168% and BPCL’s 129%. As per MOSL, the Oil & Gas Universe earnings are expected to grow 42% YoY, fueled by OMCs.
Other prominent names part of the list are JSW Steel, SAIL, Sobha Limited, Bharti Airtel, and Navin Fluorine.