With India Inc having turned in a fairly good performance in the September quarter thus far, earnings estimates for the current year have been revised upwards, albeit marginally, by about 50-60 basis points. Earnings for the Nifty50 set of companies are now expected to grow at 9.8-10% in FY26, as companies stay with a neutral-optimistic outlook. Among the companies whose profit estimates have been raised include Reliance Industries, HDFC Bank and ICICI Bank, Ultratech Cement and Dr Reddy’s Laboratories. Analysts have also upped forecasts for a few IT players that have reported good margins, aided by the weakening currency. Analysts maintain that the performances have been generally in line with expectations. While there have not been too many surprises, the disappointments too have been few. The estimates for FY27 earnings have remained broadly stable so far with the increase pegged at 16.5-17%. Experts believe these could also be upgraded if results for the December quarter come in as per expectations. The current round of upgrades has largely been prompted by the resurgence in topline growth as also operating profit margins. For a sample of 1,059 companies (excluding banks, financials and oil marketing companies), net sales have seen a good increase of 11% year-on-year (y-o-y). Operating profit margins have expanded by 51 basis points y-o-y, driving up the operating profit by a strong 14% y-o-y. As such, net profits have risen by a smart 13% y-o-y. (ICE NEW DELHI)

Fonte notizia: Financial Express