Q1 Scorecard: Firms Comprising 50% Of Nifty Weightage Post Earnings — A Mix Of Beats, Meets & Misses

As the Q1 earnings season progresses, 16 out of the Nifty 50 companies — representing over 50% of the index's weightage — have reported their results so far. The early trend paints a mixed picture: only three companies have delivered earnings above Street estimates, five have fallen short of expectations, while eight have reported results that were broadly in line with the projections.

Of the two newest additions to NSE's flagship index, Eternal Ltd. (formerly Zomato) posted earnings that surpassed the analysts' estimates, whereas Jio Financial Services reported results in line with the Street expectations.

Sectoral Trend – IT: Cautious Optimism

The IT sector has largely posted muted numbers, with most large-cap players witnessing a downtick in constant currency (CC) growth. However, Infosys bucked the trend by delivering the highest CC growth of 2.6% among peers, supported by strong client spends and execution.

Deal wins were positive across the board. TCS reported a $9.4 billion in deal wins, while Infosys saw a 46% sequential uptick in total contract value (TCV). Despite topline challenges, margins across companies have remained broadly in line with estimates. Wipro, Infosys, and HCLTech reported slight degrowth, highlighting lingering global macro uncertainties.

Key Outperformers

Among the notable outperformers this season is Eternal, whose revenue came in ahead of expectations. Importantly, losses narrowed for its Blinkit and Hyperpure verticals, indicating improving unit economics and execution strength.

ICICI Bank also stood out with a robust performance. The private lender reported strong operating profit growth, and its net profit beat estimates, driven by healthy loan growth and controlled provisions.

JSW Steel delivered a positive surprise on the margin front. The steelmaker saw improved EBITDA, aided by lower coking coal costs and better realisations on account of firm steel prices.

Key Underperformers

On the flip side, Axis Bank was disappointed with higher-than-expected slippage and a sequential drop in net interest margins, which weighed on profitability and raised asset quality concerns.

Reliance Industries reported a mixed set of numbers. While net profit got a boost from the sale of its investment in Asian Paints, the core EBITDA came in below expectations due to underwhelming performance across all verticals, barring Jio. Notably, the retail business witnessed its steepest sequential revenue and EBITDA decline in the last five quarters.

The oil-to-chemicals (O2C) segment also faced challenges from plant shutdowns and inventory losses. However, Jio saw growth driven by subscriber additions and the full impact of tariff hikes implemented four quarters ago.

Dr. Reddy's Laboratories faced headwinds in the US market, with North America revenue declining by 11% even as India revenue grew by a healthy 11%, highlighting regional divergence in demand dynamics.

Tata Consumer Products reported a sharp contraction in margins, raising concerns around cost pressures and operational efficiencies.

HCL Tech's EBIT margin, 16.28%, fell short of the estimate of 18.4%.

Earnings That Met Estimates

HDFC Bank reported net interest income (NII) in line with estimates, despite a sharp spike in provisioning drew attention. Infosys raised the lower end of its revenue growth guidance from 0–3% to 1–3%, indicating a modestly improved outlook. Tata Consultancy Services delivered results that were in line with estimates, reflecting steady operational performance. UltraTech Cement posted largely in-line numbers and remains optimistic, expecting double-digit volume growth in FY26.

Jio Financial Services continued its business-building journey, with results suggesting gradual but consistent progress. Tech Mahindra posted in-line numbers, while HDFC Life Insurance reported APE and VNB growth in line with expectations. Wipro stood out in terms of deal momentum, with total deal wins rising 25% sequentially to $5 billion, highlighting strong client demand.