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Nifty earnings encouraging amid geo-political tensions

ICICIdirect Research 07 Nov 2025 DISCLAIMER

A total of 39 companies has come out with results till date for Q2FY26. This represents roughly 88% of the index weight.
Nifty Earnings for Q2FY26 came in at 4% growth on YoY basis. This is encouraging amidst fluid global macro-economics and geo-political tensions.
Topline growth for the quarter is pegged at closer to double digit i.e. 9.6% YoY.
Ex financials, PAT growth at Nifty is pegged at 6% YoY. The margins for this domain cooled off 100 bps QoQ at 21.9% (seasonality effect)
In Financials space, PAT growth came in 2% YoY, led by bottoming out of NIM compression.
On the sectoral front, Telecom, Auto, Capital Goods and Oil & Gas outperformed.
In the telecom space, better than expected ARPU at the industry leader lifted the topline and bottom-line performance.
In the auto space, early onset of festive season coupled with initial robust response to GST rate cut, lifted volumes and consequent profitability for the space.
In the auto space, total production volume growth for the quarter came in at 10% YoY which includes domestic sales growth of 6% while exports grew handsomely by 26% on YoY basis.
As on date, we stick to our Nifty target of 27,000 over next 12 months, valuing the index at 22x PE on FY27E
We shall revisit aggregate Nifty EPS and Nifty target as the result season concludes.

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