Infosys and IndiGo Set to Report Q1 Earnings Amid Indian Market Sell-off
Around 60 major Indian companies are set to release their first-quarter earnings on Thursday, offering crucial insights into corporate resilience following a sharp market decline.
Around 60 Indian companies are scheduled to release their financial results for the quarter ending June 30, 2026, on Thursday. Major names including Infosys, Interglobe Aviation, Cipla, and Meesho are among the key reporters in this heavy earnings slate.
The results arrive against a backdrop of negative market sentiment. On Wednesday, widespread selling pressure pushed the benchmark BSE Sensex down 715.06 points, or 0.92 percent, to close at 76,755.05. The NSE Nifty 50 also fell 191.45 points, or 0.79 percent, settling at 23,996.25.
For Infosys, analysts are closely watching revenue guidance and margin performance. Brokerage firm Motilal Oswal expects the technology services provider to report 2.0 percent quarter-on-quarter constant currency revenue growth, including 1.0 percent organic growth supported by recent acquisitions.
However, the firm anticipates Infosys will lower the upper end of its fiscal year 2027 revenue growth guidance by 50 basis points to a range of 1.5 to 3.0 percent year-on-year. While the US banking, financial services, and insurance sector is expected to remain resilient, telecom and manufacturing segments may struggle due to client-specific issues and the Daimler ramp-down.
Operating margins are still projected to improve by 40 basis points quarter-on-quarter to 21.4 percent. This expansion is attributed to the absence of first-quarter wage hikes, the reversal of visa-related costs incurred in the previous quarter, and ongoing cost efficiencies from Project Maximus.
In the aviation sector, Interglobe Aviation, operating as IndiGo, faces a mixed operational landscape. Kotak Institutional Equities forecasts a strong 17 percent year-on-year increase in yields, driven by fuel surcharges and a weak comparative base from the previous year.
Despite higher yields, the airline is expected to see a 40 basis point year-on-year decline in its load factor to 84 percent. Analysts project revenue per available seat kilometer less cost per available seat kilometer at 0.03 rupees per ASK, down significantly from 0.3 rupees per ASK in the first quarter of fiscal year 2026, largely due to a steep 40 percent quarter-on-quarter increase in fuel costs.
Kotak noted that a flat end-of-period currency exchange rate in the first quarter of fiscal 2027 should provide some relief. This stability may result in only miniscule mark-to-market forex losses for the airline during the quarter.
