By the end of fiscal year 2026, financials had emerged as the top performer and the largest sector by market value, as per NSE's market pulse report.
"Based on FY26, Financials increased their share of Nifty 500 net sales from 14.6% in FY00 to 25.6% in FY26, overtaking Energy as the largest revenue contributor in FY25 and FY26," the report stated.
In the first quarter of financial year 2027, the momentum kept going with Financials leading the earnings growth beat alongside Metals, Oil & Gas (ex-OMCs), and Automobiles, as per research by Motilal Oswal Financial Services.
With a rapidly transforming market map, top Indian brokerages like Nuvama Securities, MOFSL, and ICICI Securities have outlined their top financial picks based on Q1 FY27 performances.
1. ICICI Bank: ICICI Bank was a leader among private lenders in the first quarter of financial year 2027, and broadly every brokerage's preferred pick including Motilal Oswal, and Nuvama Securities.
The bank reported a strong start to FY27, with standalone net profit rising 16% year-on-year to Rs 14,804 crore in the June quarter from Rs 12,768 crore a year ago, while comfortably beating Bloomberg's consensus estimate of Rs 13,373 crore.
Net interest income (NII), the difference between interest earned and interest paid, increased 13% year-on-year to Rs 24,385 crore, compared with Rs 21,635 crore in the corresponding quarter last year.
2. RBL Bank: RBL bank was a close second for brokerages, with Nuvama and MOFSL's bullish stance on the bank. The bank's net profit for the first quarter of fiscal year 2027 rose 26.6% year-on-year, according to an exchange filing on Friday.
The bank posted a bottom-line of Rs 254 crore, compared to Rs 200 crore in the year ago period. Net interest income grew 12% to Rs 1,654 crore from Rs 1,481 crore, and operating profit jumped 31.3% to Rs 923 crore from Rs 703 crore in the corresponding quarter of the last fisca
3. Kotak Mahindra Bank: KMB's strong Q1 performance, coupled with its attractive valutions make it a compelling choice for brokerages like ICICI Securities and Nuvama.
"We have recently upgraded KMB to ‘BUY' given inexpensive valuations and hopes abound for positive management change," MOFSL said in its review note.
The bank reported a net profit of Rs 4,123 crore for Q1FY27 supported by healthy growth in net interest income and operating profit. The private-sector lender's net profit increased 26% year-on-year from Rs 3,282 crore, surpassing Bloomberg estimate of Rs 3,975 crore.
Net interest income, the difference between interest earned and interest paid, rose 9.2% year-on-year to Rs 7,928 crore from Rs 7,260 crore.
4. State Bank of India: SBI reported a stronger-than-expected June quarter, beating Street estimates on profit, net interest income and operating profit, while continuing to improve its asset quality. The bank gets positive views from Motilal Oswal and ICICI Securities.
The country's largest lender posted a 10.2% year-on-year increase in standalone net profit to Rs 21,121 crore, comfortably ahead of the Bloomberg consensus estimate of Rs 19,052 crore.
Net interest income rose 14.9% to Rs 46,992 crore, exceeding the estimate of Rs 46,214 crore, while operating profit increased 9.8% to Rs 33,529 crore, compared with the estimated Rs 30,403 crore. Interest income grew 8.5% year-on-year to Rs 1.28 lakh crore.
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5. Shriram Finance: Shriram Finance is among the top picks for Nuvama Securities after it posted higher standalone profit and net interest income for the June quarter, while asset quality improved from a year earlier.
Standalone net profit rose 59.8% year on year to Rs 3,445 crore in the quarter ended June, compared with Rs 2,156 crore in the corresponding period last year. Profit increased 14.3% from Rs 3,014 crore in the preceding quarter.
Net interest income increased 33.7% to Rs 8,056 crore from Rs 6,026 crore a year earlier and rose 16.8% sequentially from Rs 6,899 crore
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