Iran-US war to pressure Q4 profits of Nifty 50 firms: analysts

Net profit growth for Nifty 50 companies in the fourth quarter of fiscal 2026 is expected to slow on a year-on-year basis due to price effects from the Iran-US war, brokerages said. Estimates range from 0.6% to 6%.

Net profit for Nifty 50 companies, representative of Indian corporates, is projected to grow between 0.6% and 6% year-on-year in the fourth quarter of fiscal 2026, brokerages reported. The slowdown stems from price effects of the Iran-US war.

Motilal Oswal Financial Services estimated a 6% year-on-year increase. Kotak Institutional Equities offered a more conservative forecast of 2.6% growth.

These projections account for India's crude oil import reliance amid the West Asia conflict. Analysts note the war's impact on corporate earnings, with official figures pending.

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Realistic illustration showing India's economic growth with cityscape and financial symbols amid global challenges.
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India's economy grows 7.7 per cent in 2025-26 amid global shocks

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Provisional GDP estimates released on Friday show 7.7 per cent growth for 2025-26. The figure exceeds the government's February prediction by 0.1 percentage points. Outlook for 2026-27 points to a slowdown.

Nifty 50 firms expect double-digit revenue growth for the June 2026 quarter but project only single-digit profit increases due to rising costs. Input cost inflation and higher crude prices are squeezing margins across sectors.

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Indian equities rose more than 1 percent on Monday amid optimism over a potential peace deal between the United States and Iran. Broader Asian stocks also posted modest gains following the news. Traders reduced bearish positions as crude oil prices eased.

Most listed brokers reported earnings pressure during the June quarter. Equity derivatives trading slowed while gold and silver rallies reversed.

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Steel Authority of India posted a sharp increase in net profit for the fourth quarter of fiscal 2026. Consolidated profit after tax climbed 47% year on year to 1,835 crore rupees. Revenue grew 5% over the same period.

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