QE June-26 Earnings so Far: India Equity Strategy | Asia Pacific

Research evidence excerpt

QE June-26 Earnings so Far: India Equity Strategy | Asia Pacific

Update

July 31, 2026 11:17 AM GMT

Morgan Stanley India Company Private Limited+MIndia Equity Strategy | Asia Pacific Nayant Parekh

Equity Strategist

QE June-26 Earnings so Far Nayant.Parekh@morganstanley.comRidham Desai +91 22 6118-1008

Ridham.Desai@morganstanley.com +91 22 6118-2222

Key Takeaways

For our coverage, revenue, EBITDA and net profit growth stood at 19%, 0% and

4% YoY, respectively, 6ppt, 5ppt and 14ppt above our analysts' estimates.

Average EBITDA margin is 20%, in line with our analysts' estimates.

31 Nifty stocks have reported revenue growth of 18% (4ppt above our estimate)

Exhibit 2 : Financial results versus consensus and net profit growth of 14% (10ppt above our analysts' estimates).

Financial results versus Consensus

Two-thirds of our coverage universe that have reported so far have surpassed our 60 Meaningful shortfall Modest shortfall In-line

50 Modest upside Meaningful upside Average Score

analysts' estimates, with relative stock performance at 40%*. 40

So far, the broader market (889 companies) has reported revenue and net profit 30

growth (YoY) of 22% and 12% , respectively, and margin compression of 162bp. 10

• 21 Sensex stocks have reported revenue growth of 18% (3ppt above -10 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27*

our estimate) and net profit growth of 13% (8ppt above our analysts' Source: IBES, Morgan Stanley Research

estimates).

Exhibit 3 : Direction of next 12-month

• Profit growth was strongest for Utilities, Materials and Financials,

consensus EPS

while and Energy reported profit declines. Margins expanded for 45%

Meaningful revision lower Modest revision lower of our coverage. Direction of next 12-month consensus EPS