What’s the performance report like for corporate India in Q2 so far? According to Kotak Institutional Equities, the performance of companies across sectors, though mixed, could mark a turning point for India Inc as earnings momentum improves in select sectors.
Kotak expects Nifty 50 profit to grow 10% in FY26, 17% in FY27
We currently expect the net profit of Nifty-50 companies to grow by 10% in FY26E and 17% in FY27E, which is broadly unchanged over the 2QFY26 results season,” Kotak said in its report. Kotak attributed the upward revision to strong results from HDFC Bank, ICICI Bank and Reliance Industries.“Companies have maintained a neutral to optimistic outlook. We expect FY27 earnings to be more broad-based,” the brokerage said.
Consumer sector faces GST transition pain
Analysts believe that consumer company volumes are likely to improve in Q3FY26, driven by a recovery in underlying demand and channel restocking. The report noted that “the expected bump in GST-cut-led sales was not observed in the second quarter but started showing in October 2025,” Kotak said.
Cautious on IT services companies: Kotak
Kotak remained cautious on the IT sector. “IT companies maintained a guarded tone amid ongoing macroeconomic headwinds and technology disruption risks,” it said.
Kotak ups Reliance and L&T weights, drops Hindalco from portfolio
The brokerage increased the weight of Reliance Industries by 100 basis points to 9.9% in its model portfolio and raised Larsen & Toubro’s weight by 70 basis points to 2.7%. It removed Hindalco from the portfolio, citing recent outperformance and limited upside. “We expect strong performance across all the three major segments- Reliance’s refining, digital and retail segments over the next few quarters,” Kotak said, assigning a 12-month fair value of Rs 1,600 for the stock. For L&T, Kotak expects continued strength driven by a robust project pipeline both in India and the Middle East, and values the stock at Rs 4,200.