Equirus Securities expects strong earnings growth for the September quarter of FY26 across sectors such as automobiles, building materials, chemicals, consumer durables, metals, and oil marketing companies (OMCs), while the BFSI sector (excluding NBFCs), construction, and textiles are projected to report earnings declines. IT, healthcare, industrials, FMCG, and logistics are anticipated to post moderate growth.
According to Equirus, revenue for companies under its coverage is projected to rise 9% year-on-year in the quarter, with EBITDA and PAT also increasing 9%, supported by robust performance from OMCs. Excluding BFSI, EBITDA and PAT are expected to climb 16% and 19%, respectively.
In autos, two-wheeler wholesales rose 10% year-on-year, aided by festive-season stocking, while passenger vehicle exports grew 24%. Margins for OEMs are likely to improve sequentially due to higher volumes and favorable product mix, while tire companies are expected to benefit from softer raw material prices.
Building material demand remained uneven, with weakness in tiles and bathware offset by recovery in wood panels. Construction firms are expected to benefit from changes in NHAI’s bidding norms and improved project visibility, though execution challenges persist.
In financials, most banks are projected to see modest NIM compression, while asset quality remains stable. NBFCs are expected to record margin expansion, supported by lower funding costs and stable asset quality trends in housing and gold finance.
The IT sector is likely to see marginal sequential revenue growth of up to 2.1% in constant currency terms, supported by cost-optimization deals, while healthcare companies face pressure from GST-led destocking and weaker U.S. sales.
Equirus identified Hero MotoCorp, Lumax Industries, APL Apollo, HDFC Bank, Infosys, Lupin, and Arvind Fashions among its preferred stocks across sectors.
