New Delhi, August 18: Companies in the Nifty index recorded an 18 per cent year-on-year growth in profit after tax (PAT) in the first quarter of FY27, marking the strongest profit growth in 10 quarters, according to a report by Motilal Oswal Financial Services.
The earnings performance was broad-based, with 19 sectors exceeding expectations and the earnings upgrade-to-downgrade ratio turning positive at 1.5 times. Financials, metals, oil and gas excluding oil marketing companies, technology and telecom emerged among the key growth drivers. Beyond the Nifty 50, companies covered by the brokerage, excluding OMCs, reported 18 per cent sales growth, 15 per cent EBITDA growth and 22 per cent PAT growth, beating estimates across all three parameters.
However, earnings growth within the Nifty 50 remained concentrated to some extent, with the top five contributors accounting for around 60 per cent of the increase in aggregate earnings. The strong Q1 performance comes as the broader Indian corporate sector also reported robust revenue growth, with India Inc revenue rising 19.4 per cent year-on-year, the strongest quarterly performance in at least nine quarters.