Motilal Oswal boosts India’s profit outlook after Q2 earnings surge
Motilal Oswal has raised its profit forecast for the Indian stock market today after reviewing September-quarter earnings. The brokerage increased its FY26 aggregate PAT estimate by 2%, marking the first upgrade since Q1FY25. Analysts now expect stronger growth, driven by improved corporate earnings and a stable domestic economy.
The latest earnings season showed mixed results across market segments. Mid-cap stocks led with upgrades of 3.1%, while large caps saw a 2% increase. Small caps, however, continued to struggle, facing downgrades of 5.5%.
Sectors like Oil & Gas, Telecom, PSU Banks, Insurance, and NBFCs drove the upgrades. Utilities, Autos, and Healthcare weighed down performance. The brokerage remains optimistic, forecasting FY26 and FY27 earnings growth of 12% and 15% for the Nifty 50, and 15% and 16% for its broader coverage universe.
Motilal Oswal favours diversified financials, automobiles, capital goods, IT services, and telecom. It remains cautious on energy, metals, utilities, and consumer staples. Among its top large-cap picks are Bharti Airtel, ICICI Bank, SBI, Infosys, and L&T. For mid-caps, Swiggy, Dixon Technologies, Suzlon Energy, and Coforge feature prominently.
The brokerage believes Indian equities are set to recover from their 2025 underperformance. Supportive factors include stronger earnings, stable domestic conditions, and a calmer geopolitical climate. The revised estimates suggest renewed confidence in stock market growth over the next two years.
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