Q1FY27: What the Earnings Numbers Are Telling Us

Hello investors!

It has been a while since we last posted a newsletter here, so we hope you are doing well!

In the last couple of months, a lot has happened in the market. But if you look at the performance of the Indian market compared to many other emerging markets, it has remained resilient. And the primary driver behind this has been the earnings of India Inc.

When we talk about India Inc., we don’t mean just the Nifty 50. In other pockets of the market, earnings have been surprisingly strong, and that is what we are going to talk about in this newsletter.

Do note that the Q1FY27 earnings season is still underway, and we are only halfway through it. So, consider this Part 1 of our analysis. We will share another blog once we have all the results.

So, without wasting any more time, let’s look at the data (that’s why you are here, right?).

1. If we look at all the results combined, then the median sales and PAT growth are at 18.34% and 25.94%, respectively.

   

   If we check the trend compared to the last few quarters, then it is strong and positive.

   

2. Now let’s look at various market caps. And if you see, Micro and Midcaps are doing really well. Smallcap names are also not very far behind, but not as good as the other two. That is why all three indices are near or at their ATH (check their charts).

   

   Some of the grwoth can be attributed to the low base of Q1FY26, but in general companies are doing well.

3. Now let’s look at sectors with the most topline and bottomline grwoth.

   

   Rigt now, it is hard to find a chemical company with bad Q1FY27 numbers. Also, metal, consumer durables, Healthcare, Pharma, Finance and Realty sectors are doing well.

   For Realty names this is a strong quarter after a gap of three quarters.

   

4. Some other pockets we would like to highlight is QSR, Precision engineering, and midcap IT companies.

5. Now, let’s talk about stocks. If we only consider stocks above 1000 Cr. market cap then the growth is in line with market.

   

6. But the best way to find strong stocks is using a screener. So let’s filter names with 20%+ sales and profit growth YoY and positive growth QoQ. On top of that let’s filter only strong names that are trading near their 52 week high.

   

   So out of 2000+ names we only have 113 names. If you want to check the complete list along with their charts, click here.

You should also compare the growth of the companies in your own portfolio against the broader market. You can do this easily with WealthView on sharpely. Simply connect your stock portfolio and analyse the latest earnings of your portfolio companies.

If a company’s growth is significantly below the market median, it may be worth taking a closer look to understand whether the business is underperforming and whether it still deserves a place in your portfolio.

We have done all the analysis using our quarterly results tracker. You should also leverage this tool (it is free) to find companies with strong earnings.

One last update before we end this blog. Our Independence day offer is live right now. You can get 15% off on all the plans with code ‘BHARAT15’.

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That is it for today!

Happy investing.