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Nifty Profits Soar: Top 5 Firms Drive Decade's Best Growth
17 Aug
Summary
- Nifty companies achieved 18% profit growth in Q1 FY27, a decade high.
- Five firms, including ONGC and Reliance, contributed 60% of the profit surge.
- Metals and oil sectors showed remarkable profit recoveries and strong earnings.
Nifty companies achieved their strongest profit growth in a decade during Q1 FY27, with an 18% year-on-year increase. This exceptional performance surpassed expectations, with five major corporations—ONGC, Reliance Industries, Hindalco Industries, JSW Steel, and Bharti Airtel—accounting for 60% of the incremental earnings.
The oil and gas sector, excluding oil marketing companies, added ₹16,900 crore to profit growth, followed closely by metals with ₹15,700 crore. The metals sector, in particular, saw a dramatic turnaround, moving from minimal profit contribution to becoming the second-largest contributor.
Broader market segments also performed well, with mid-cap profits rising 23% and small-cap profits surging 31%, their fastest growth in eleven and one quarters, respectively. Despite this broad-based strength, certain companies like InterGlobe Aviation and Dr. Reddy's Laboratories negatively impacted overall growth.
The quarter's earnings season resulted in more upward revisions of future earnings estimates than downward ones, indicating a positive outlook. Motilal Oswal raised its FY27 Nifty earnings-per-share estimate to ₹1,232, reflecting confidence in continued growth.
