Analysts lifted bets on India Inc after a strong March quarter

ET Intelligence Group: Better-than-expected growth in corporate profits in the March 2026 quarter has prompted analysts to upgrade earnings estimates for most NSE 500 companies, according to Bloomberg data. For a sample of 335 companies where analysts have forecast earnings in each of the last five quarters, 304 or four out of every five companies reported an earnings upgrade at the end of the March 2026 quarter, the most since the March 2025 quarter when the number of upgrades was 307.

118 companies received positive earnings revisions in the previous quarter. Additionally, the volume of earnings revisions was higher for more companies this time around. As many as 241 companies received earnings revisions of 10% or more compared to seven a quarter ago and 83 in the March quarter of the previous year.

India Inc delivered a multi-quarter high net profit growth for the March quarter aided by non-operating components. ET had earlier reported that the gross profit of 2,956 companies rose 25.5%, the highest in at least nine quarters. Revenue rose 10.8%, marking the second consecutive quarter of double-digit growth. The buoyant performance prompted analysts to upgrade earnings.

Banking and finance, capital goods, healthcare and power were among the leading sectors to receive upgrades. Further, even as the information technology (IT) sector suffered due to the growing influence of artificial intelligence-based solutions, each of the 28 sector companies in the sample showed an improvement in earnings after the latest March quarter results. Cheaper valuations compared to historical averages, a stronger order pipeline and a weakening rupee against major currencies that improved exporters’ sales sentiment helped analysts raise revenue forecasts.

Among companies, IndusInd Bank, Eternal (formerly Zomato), and Tata Motors PV reported a five-fold increase in their one-year forward earnings estimates. On the other hand, analysts have cut estimates for three state-owned oil marketing companies, including Indian Oil Corp (IOCL), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL), by 71-75%, citing the impact of the geopolitical crisis in West Asia on marketing margins.