Q2FY27 earnings seen mixed as demand supports select sectors

Q2FY27 earnings seen mixed amid demand momentum: Report

New Delhi, Oct 12

A report by PL Capital said that asset management firms are likely to benefit from healthy average equity assets under management.

Core income for coverage universe is projected to rise 3.6 per cent quarter-on-quarter and 11.8 per cent year-on-year, although revenue yields may soften slightly, it said.

Moreover, banks are expected to see continued loan growth while net interest margins remain key monitorable.

The report further noted that steady disbursement momentum among auto financiers and housing finance companies is likely to support growth but hardening bond yields could pressure margins.

In autos, dispatches were supported by retail demand and festive stocking but elevated raw material costs and supply-chain disruptions are expected to constrain profitability, it said.

In addition, building materials are expected to see divergent trends with pipes performing relatively better while wood panels face export-related headwinds.

The cement industry's volumes are projected to grow about 10 per cent year-on-year, although elevated fuel costs are likely to weigh on profitability, according to the report.

Similarly, consumer staples are forecast to post double-digit growth, though second half of FY27 may be impacted by inflation and rainfall uncertainties.

Consumer durables are expected to benefit from growth in wires and cables, it said.

The education sector's stationery coverage universe is expected to face pressure, with EBITDA projected to decline 17.7 per cent year-on-year amid raw material inflation.

Among industrials, capital goods firms focused on transmission and distribution are expected to perform better, while execution challenges may weigh on engineering, procurement and construction activity, the report said.

Infrastructure execution is expected to remain steady, although order inflows have moderated, it added.

— IANS