New Delhi, Oct 10 () – The Indian stock market’s listed companies are set to see a 9 % jump in revenue for the second quarter of FY26, with earnings before interest, tax, depreciation and amortisation (EBITDA) and profit after tax (PAT) projected to rise by the same margin, said Equirus Securities on Friday.
Oil marketing companies (OMCs) will be the main driver of this growth. “Strong performance in OMCs offsets the headwinds in the banking, financial services and insurance (BFSI) sectors,” the research firm explained. If the BFSI segment is excluded, EBITDA and PAT could climb 16 % and 19 % respectively. On the other hand, without OMCs EBITDA and PAT would grow just 6 % and 5 %.
Mid‑cap stocks are the best performers: they are expected to post high‑teen earnings growth that surpasses both large‑cap and small‑cap peers, while sales growth remains roughly similar across all cap sizes.
Autos – Mixed performance
Two‑wheeler wholesales rose 10 % year‑on‑year, with exports up 26 %. Retail sales for two‑wheelers in the quarter only grew 1 % because buyers postponed purchases after the GST cut was announced. Demand stayed weak through most of Q2 but spiked sharply during the Navratri festival, which coincided with the GST reductions.
Passenger vehicle wholesales increased 3 %, whereas exports jumped 24 %. Medium‑and‑heavy commercial vehicle (MHCV) truck wholesales are expected to rise 6–7 %, while light‑commercial vehicle (LCV) sales may climb 13–15 %. Original‑equipment manufacturer (OEM) margins are set to improve sequentially, helped by higher volumes and operating‑leverage benefits.
Tyres and ancillary firms
In the tyre segment, replacement volumes are forecast to grow in the high‑single‑digit range, OEM volumes in the mid‑single‑digit, and exports remain moderate. Margins for ancillary companies should improve thanks to operating‑leverage advantages.
Credit quality and asset‑under‑management trends
Equirus believes asset‑quality trends will stay healthy across most corporate and retail credit areas. Trends should improve in micro‑finance institutions (MFIs) and credit‑card portfolios, but the vehicle‑finance segment may see a rise in delinquencies. Asset‑management companies (AMCs) are expected to generate 3–6 % more EBITDA sequentially as quarterly average assets under management (QAAUM) grow, although overall earnings might dip because of lower treasury income.
Overall, the forecast points to a moderately strong Q2 for India’s listed universe, with key sectors like oil marketing and mid‑caps positioned for growth, while auto sales and credit quality trends add nuance to the outlook.
Source: ianslive
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