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December 2025 quarter earnings preview

We expect 3QFY26 net income of the KIE universe to increase 8.8% yoy, led by (1) capital goods (strong overseas execution for L&T), (2) construction materials (higher volumes yoy, on account of ramp-up of acquired capacities for ACEM and UTCEM, partly offset by lower profitability), (3) metals & mining (strong quarter for base metal players due to higher commodity prices in 3QFY26) and (4) oil, gas & consumable fuels (strong refining and marketing margins of OMCs) sectors. Excluding OMCs, we expect 3QFY26 net income of the KIE universe to increase 5.1% yoy. Meanwhile, (1) automobile & components (low double-digit yoy increase in volumes driven by GST rate cuts, marginal improvement in ASPs due to better mix and favorable forex, offset by weakness in TMPV), (2) banks (modest loan growth, marginal NIM compression), (3) consumer staples (modest recovery in select categories), (4) electric utilities (weak generation, amid weak power demand), (5) IT services (weak revenue growth, profitability pressure) and (6) pharmaceuticals (continued impact of lower gRevlimid sales) sectors are likely to deliver weak PAT growth. We expect 3QFY26 net profits of the BSE-30 Index to increase 5.9% yoy and of the Nifty-50 Index to increase 1.7% yoy. We estimate the ‘EPS’ of the Nifty-50 Index at Rs1,072 for FY2026 and Rs1,267 for FY2027.

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