Red Alert! Over 70% Nifty companies staring at earnings slump through FY26
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Following a weak third quarter on the earnings front, analysts now expect over 70% or 36 Nifty companies to report slower than expected earnings growth in the next fiscal year. Weaker demand outlook amid global uncertainties, subdued household spending, slower credit growth as well as not so meaningful pick up in corporate capex could keep the earnings in check. Motilal Oswal has trimmed the overall Nifty EPS growth estimate by 1.4% for FY26 after the profits managed to grow just 4% in the nine-months ended December 2024 period. This is particularly stark when compared with a CAGR of 20% during FY20-24. "This is the third consecutive quarter of low-single digit earnings growth," the brokerage said. This downgrade was driven by heavyweight stocks such as ONGC, HDFC Bank, JSW Steel, Axis Bank, and SBI. For instance, EPS growth for SBI is pegged at 9% in FY26E, which is 1.5% lower than the previous estimate. Similarly, HDFC Bank is...