Indian Q1 earnings growth hits four-quarter high as Goldman targets rebound
A batch of 41 Indian companies begin reporting June-quarter results today, offering the first major test of a 10% earnings growth forecast and shifting investor focus toward value stocks.
India’s June-quarter earnings season begins in earnest today with 41 companies scheduled to post results, including Wipro, Jio Financial Services and BHEL. The filings mark the start of a busy week that will see 143 firms report their financials. Analysts expect aggregate corporate earnings to grow around 10%, which would represent the strongest expansion in four quarters and provide a crucial test for the market's recent valuation adjustments.
The initial batch of reports cuts across information technology, financial services, fast-moving consumer goods and manufacturing. Market participants will be closely parsing the releases for concrete evidence of domestic demand strength and forward-looking sector guidance. Specific attention will fall on IT outsourcers like Wipro and Tech Mahindra, as well as varied financial names such as South Indian Bank, Piramal Finance and Muthoot Capital Services. Other notable names reporting today include ITC Hotels, Polycab India, WeWork India and CEAT.
The pace of data releases accelerates tomorrow, bringing results from Reliance Industries, JSW Steel, Tata Technologies and major lenders like Federal Bank and RBL Bank. These filings from conglomerates, steelmakers and real estate firms will provide a broader view of underlying sectoral trends. The results land against a backdrop of improving macroeconomic conditions that are reshaping equity strategies.
Goldman Sachs has turned more constructive on Indian equities, pointing to lower commodity prices, a stable currency and resilient domestic growth as primary catalysts. "We see room for the Nifty to recover towards our June 2027 target of 26,500, implying a 10% upside from current levels following a 9% drawdown in the first half," the brokerage said. The Nifty 50's current record high stands at 26,373.
Crucially, the anticipated earnings recovery is expected to trigger a structural shift in market leadership during the second half of the year. Growth stocks outperformed in the first half due to a scarcity of earnings, but Goldman Sachs predicts investors will now rotate capital into reasonably valued segments. As expectations of an economic recovery improve and foreign outflows reverse, the brokerage anticipates the biggest beneficiaries will be the most-sold and attractively valued pockets of the market, particularly large-cap stocks and banks.
