India Inc Set For Robust Earnings Growth In 2026, Says Gautam Duggad
Duggad admitted he is slightly more constructive on Indian markets, particularly on account of better corporate earnings visibility.
After a sluggish 2025, corporate earnings in India are poised for a rebound in this new year, with the trend likely to be driven by government reforms and tax cuts, according to a top strategist at Motilal Oswal Financial Services, Gautam Duggad.
Gautam Duggad, director and head of research for institutional equities at the firm, spoke to NDTV Profit, offering insights about the upcoming earnings season.
Duggad admitted he is slightly more constructive on Indian markets, particularly on account of better corporate earnings visibility.
"In fact, this quarter we are projecting a 16% earnings growth, which is the best that we have seen in the last seven or eight quarters for our coverage," Duggad said. "The narrative around India, which had gotten a bit slack, I expect that to improve as we progress in 2026."
Duggad explained that this shift in dynamics will be led by the combined effect of recent policy changes, including GST rationalisation as well as income tax cuts and interest rate adjustments.
While the broader Nifty index is not expected to see immediate margin expansion, Duggad highlighted specific sectors poised for outperformance.
He further noted a strategic shift in his firm’s model portfolio regarding the technology sector, upgrading it from underweight to overweight in November.
"This is the space which is most neglected right now," Duggad said regarding technology stocks. "The risk-reward is very attractive in that space today than it was two or three years back."
The automotive sector also remains a top pick, with Duggad identifying it as the primary winner from recent tax policy changes.
"The single largest beneficiary of the GST reductions in India has been automobiles," he said, forecasting 25% earnings growth for the sector this quarter.
Within financial services, Duggad expressed a preference for Public Sector Undertaking (PSU) banks over private lenders, citing reasonable valuations.
"The whole capital market ecosystem is coming alive," Duggad said. "Not just brokers but even exchanges, wealth managers, asset management companies."
