Business
India’s Corporate Earnings Show Broad-Based Growth In Q1 FY26, Says Motilal Oswal
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‘Q1 earnings, perceived as the ‘Crossover quarter’, marked a transition from the subdued low-single-digit earnings growth of FY25 to sustainable double-digit growth,’ says MOFSL.
MOFSL expects Nifty-50 EPS growth to recover to nearly 9% in FY26 (from just 1% in FY25), aided by supportive macro conditions.
Corporate India entered FY26 on a stronger footing, according to a report by Motilal Oswal Financial Services (MOFSL), which called the June 2025 quarter (Q1FY26) the “Crossover Quarter”. According to the brokerage, earnings transitioned from the muted single-digit growth of FY25 to a more sustainable double-digit trajectory, driven by better sectoral breadth and resilience in financials, energy, and telecom.
“Corporate earnings for 1QFY26, perceived as the ‘Crossover quarter’, marked a transition from the subdued low-single-digit earnings growth of FY25 to a sustainable double-digit growth trajectory. A key highlight of the quarter was better sectoral breadth of earnings growth. Of the 25 sectors under our coverage, 16 delivered double-digit growth, eight reported single-digit growth, and only one sector experienced a decline in PAT,” Motilal Oswal said in the report titled ‘India Strategy’.
Broad-Based Earnings Growth
Out of 25 sectors under MOFSL’s coverage, 16 reported double-digit profit growth, eight recorded single-digit gains, and only one posted a decline. Aggregate earnings of the companies tracked by Motilal Oswal rose 11% YoY, ahead of estimates. Excluding financials, profits rose 13% YoY, while excluding global commodities (metals and oil & gas), growth stood at 9% YoY.
Oil & Gas (+27% YoY), telecom (loss-to-profit), NBFCs (+14%), PSU banks (+7%), technology (+7%), cement (+51%), and healthcare (+11%) contributed nearly 77% of incremental profit accretion. Automobiles (-3%) weighed on performance.
Nifty-50 Stretches Single-Digit Streak
Nifty-50 earnings rose 8% YoY in Q1, the fifth straight quarter of single-digit profit growth since the pandemic. Reliance Industries, Bharti Airtel, SBI, HDFC Bank, and ICICI Bank alone accounted for 77% of incremental earnings, while Coal India, Tata Motors, ONGC, HUL, Nestle, and others dragged overall growth, according to the brokerage.
Market-Cap Segment Trends
“large-caps (87 companies) posted an earnings growth of 10% YoY – similar to the overall universe. Mid-caps (92 companies) have extended their streak of the past two quarters and yet again delivered a strong earnings growth of 24% YoY (vs. our est. of 20%),” Motilal Oswal stated.
Large-caps: Earnings grew 10% YoY, in line with estimates.
Mid-caps: Continued to outperform, rising 24% YoY versus expectations of 20%, with 17 of 22 sectors delivering double-digit profit growth.
Small-caps: Lagged significantly, with earnings falling 11% YoY against expectations of flat growth. Nearly half of the small-cap coverage universe missed estimates.
Earnings Outlook
For FY26, MOFSL projects its coverage universe to clock 12% profit growth, led by financials (+8%), metals (+19%), and oil & gas (+9%). Mid-caps are expected to deliver 21% growth, compared with 10% for large-caps and 34% for small-caps.
However, the brokerage noted that earnings downgrades continued to outpace upgrades, with the Nifty FY26 EPS estimate cut by 1.2% to Rs 1,108, primarily due to weaker forecasts for ONGC, Reliance Industries, Axis Bank, Power Grid, and HDFC Bank.
Sectoral Highlights
Banks: In-line results but with margin pressure, especially at private lenders.
Autos: Mixed quarter; OEMs posted modest growth, while ancillaries outperformed.
Consumer: Demand recovery intact, revenue up 8.3% YoY.
Oil & Gas: Profits surged but missed estimates due to OMC underperformance.
Technology: Weak revenue momentum amid macro headwinds.
Metals: Robust operating performance lifted profits 59% YoY.
MOFSL expects Nifty-50 EPS growth to recover to nearly 9% in FY26 (from just 1% in FY25), aided by supportive macro conditions. While market volatility may persist due to global tariff concerns, the brokerage believes India remains well-placed for modest gains, with mid-caps offering relatively better earnings visibility.
The report maintained an overweight stance on BFSI, consumer discretionary, industrials, healthcare, and telecom, while staying underweight on oil & gas, cement, real estate, and metals.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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Business
Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India
GST collections: The Gross Goods and Services Tax (GST) collections for the month of November came in at over Rs 1.70 lakh crore. This is a rise of 0.7%, according to official data.SBI Research in a report in November had estimated that the gross domestic GST collections may come around Rs 1.49 lakh crore for November 25 (returns of October 25 but filed in Nov’25), a YoY growth of 6.8%.“Coupled with Rs 51,000 crore of IGST and cess on Import, the November GST collections thus could cross Rs 2.0 lakh crore, driven by the peak festive season demand led by lower GST rate and increased compliance while most of states experience positive gains,” SBI Research had said.This story is being updated
New Delhi: Several crucial deadlines have been extended in December 2025, including ITR for tax audit cases, ITR filing and PAN and Aadhaar linking. These deadlines will be crucial in ensuring that your financial affairs operate smoothly in the months ahead.
Here is a quick rundown of the important deadlines for December to help you stay compliant and avoid last-minute hassles.
ITR deadline for tax audit cases
The Central Board of Direct Taxes has extended the due date of furnishing of return of income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26 which is October 31, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of the Act, to December 10, 2025.
Belated ITR filing deadline
A belated ITR filing happens when an ITR is submitted after the original due date which is permitted by Section 139(4) of the Income Tax Act. Filing a belated return helps you meet your tax obligations, but it involves penalties. You can only file a belated return for FY 2024–25 until December 31, 2025. However, there will be a late fee and interest charged.
PAN and Aadhaar linking deadline
The Income Tax Department has extended the deadline to link their PAN with Aadhaar card to December 31, 2025 for anyone who acquired their PAN using an Aadhaar enrolment ID before October 1, 2024. If you miss this deadline your PAN will become inoperative which will have an impact on your banking transactions, income tax return filing and other financial investments.
Business
Stock Market Live Updates: Sensex, Nifty Hit Record Highs; Bank Nifty Climbs 60,000 For The First Time
Stock Market News Live Updates: Indian equity benchmarks opened with a strong gap-up on Monday, December 1, touching fresh record highs, buoyed by a sharp acceleration in Q2FY26 GDP growth to a six-quarter peak of 8.2%. Positive cues from Asian markets further lifted investor sentiment.
The BSE Sensex was trading at 85,994, up 288 points or 0.34%, after touching an all-time high of 86,159 in early deals. The Nifty 50 stood at 26,290, higher by 87 points or 0.33%, after scaling a record intraday high of 26,325.8.
Broader markets also saw gains, with the Midcap index rising 0.27% and the Smallcap index advancing 0.52%.
On the sectoral front, the Nifty Bank hit a historic milestone by crossing the 60,000 mark for the first time, gaining 0.4% to touch a fresh peak of 60,114.05.
Meanwhile, the Metal and PSU Bank indices climbed 0.8% each in early trade.
Global cues
Asia-Pacific markets were mostly lower on Monday as traders assessed fresh Chinese manufacturing data and increasingly priced in the likelihood of a US Federal Reserve rate cut later this month.
According to the CME FedWatch Tool, markets are now assigning an 87.4 per cent probability to a rate cut at the Fed’s December 10 meeting.
China’s factory activity unexpectedly slipped back into contraction in November, with the RatingDog China General Manufacturing PMI by S&P Global easing to 49.9, below expectations of 50.5, as weak domestic demand persisted.
Japan’s Nikkei 225 slipped 1.6 per cent, while the broader Topix declined 0.86 per cent. In South Korea, the Kospi dropped 0.30 per cent and Australia’s S&P/ASX 200 was down 0.31 per cent.
US stock futures were steady in early Asian trade after a positive week on Wall Street. On Friday, in a shortened post-Thanksgiving session, the Nasdaq Composite climbed 0.65 per cent to 23,365.69, its fifth consecutive day of gains.
The S&P 500 rose 0.54 per cent to 6,849.09, while the Dow Jones Industrial Average added 289.30 points, or 0.61 per cent, to close at 47,716.42.
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Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India
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