Overview

• Nifty-50 earnings rose only 3% year-on-year in Q1 FY26, falling well short of the 11% growth analysts had projected and heightening downgrade risks.
• A U.S. Federal Reserve rate pause dampened technology revenues and Trump administration tariffs undercut export competitiveness for labour-intensive sectors.
• Motilal Oswal had branded the June quarter a ‘Crossover quarter’ as its coverage universe delivered an 11% profit increase and Nifty-50 earnings grew 8%.
• Mid-caps led the rebound with 24% earnings growth while small-caps fell about 11%, and oil & gas, telecom, NBFCs, PSU banks, technology, cement and healthcare contributed most of the incremental gains.
• Investors are now calling for central bank liquidity measures as beat-miss outcomes remained evenly split and EBITDA margins excluding financials widened by about 70 basis points to 17.6%.