Indian companies seen posting 20–22% earnings growth in Q2

Brokerage firms expect Indian corporate earnings to accelerate in the second quarter of fiscal 2026–27. Their estimates range from 20% to 22% year on year, with banks, automakers, metals and energy companies expected to lead.

Kotak Institutional Equities forecasts a 21% annual increase in net profit for Nifty 50 companies. It estimates earnings per share at 1,227 rupees for fiscal 2026–27 and 1,398 rupees for 2027–28. Motilal Oswal Financial Services expects aggregate earnings across its coverage universe to rise 22%, the strongest growth in 11 quarters.

YES Securities projects banks’ net interest income to grow 14.7% year on year, and small finance banks and non-banking financial companies to grow 21.2%. In autos, Kotak expects manufacturers’ revenue to increase 29%, supported by sales, price rises and demand for higher-value models.

These are brokerage forecasts, not reported results. They reflect resilient domestic indicators but also account for foreign investor outflows, geopolitical uncertainty, inflation and potentially higher borrowing costs. YES Securities sees IT revenue growth ranging from minus 0.2% to 2.1% sequentially, while the pharmaceutical sector is expected to remain steady.