India's third‑quarter earnings season is kicking off with high hopes of a market turn‑around, and analysts say the numbers could be strong enough to attract foreign money back into Indian shares.
Why Q3 Matters
After a tough year, a solid Q3 report card can calm investors’ nerves and ease the pressure caused by past trade tensions. CLSA notes that Indian stocks now look cheaper compared with peers, making them more attractive if earnings keep rising.
Key Earnings Forecasts
Motilal Oswal Financial Services (MOSL) projects:
- Companies it covers could see 16% year‑on‑year (YoY) earnings growth, the best in eight quarters.
- The broader Nifty index is expected to post 8% YoY earnings growth in Q3 FY26.
- Sector drivers – oil & gas, finance (especially NBFC‑lending), autos, metals, telecom, tech, real estate, capital goods, and cement – could contribute about 77% of the total earnings boost.
- Sales for the MOSL universe may rise 8% YoY and EBITDA 12% YoY. For the Nifty, sales could grow 11% YoY and EBITDA 10% YoY.
Six Nifty 50 Companies Poised for >40% PAT Growth
MOSL highlights six Nifty 50 stocks that could post profit‑after‑tax (PAT) growth of more than 40%:
- Tata Steel: PAT could jump 225% YoY to ₹2,410 cr, with sales up 9.5% and EBITDA up 12.9%.
- JSW Steel: Expected PAT of about ₹1,850 cr, a 137% YoY rise.
- Bharti Airtel: Adjusted PAT may rise 55% YoY to ₹8,500 cr, supported by a 19% revenue increase and modest ARPU growth.
- Tech Mahindra: Forecast PAT growth of 48% YoY to ₹1,500 cr, helped by a rebound in the auto and communications segments.
- Eternal: After a recent correction, the firm could see PAT rise 43% YoY to ₹84.1 cr as its quick‑delivery business scales.
- Tata Consumer: Anticipated PAT increase of 41% YoY to ₹399.6 cr, driven by modest tea volume growth and a double‑digit rise in its salt business.
Upcoming Result Dates
Investors should watch these key releases next week:
- Monday: Tata Consultancy Services (TCS)
- Friday: Reliance Industries (India’s most valuable company)
- Weekend: Major banks will report their Q3 numbers.
Bottom Line
If the forecasts hold, Q3 could be the quarter that restores confidence in India’s market. Strong earnings across core sectors and standout profit jumps for six blue‑chip firms may lure foreign investors and give retail traders a clearer direction.
Remember, this is perspective, not prediction. Do your own research and consider consulting a financial advisor before making any investment decisions.