Profit and revenue growth was robust across sectors among ​the large-, mid- and small-caps in a quarter that Motilal Oswal described ​as "picture perfect", with oil marketing firms being the sole weak spot ⁠in the wake of the uncertainty in the Middle East.

Nineteen sectors beat estimates ​and the upgrade-to-downgrade ratio improved to 1.5, according to Motilal Oswal, implying that ​15 companies were upgraded for every 10 downgrades, signalling a broad-based improving profit outlook for the rest of the fiscal year.

Festive demand, GST-related consumption support, credit expansion and investment activity are ​key factors expected to underpin fiscal 2027 earnings, the brokerages said.

SECTOR WINS

Large-cap firms ​such as Hindalco (HALC.NS), Reliance Industries (RELI.NS), JSW Steel (JSTL.NS), ONGC (ONGC.NS) and Bharti Airtel (BRTI.NS) led the earnings beat on the Nifty 50 (.NSEI), analysts said.

Lenders ‌benefited ⁠from faster loan growth, low credit costs and operating leverage, according to Jefferies. Non-bank lenders, meanwhile, saw robust growth in assets under management and broadly benign asset quality.

Metals gained from improved pricing, the brokerage said, adding that retail, jewellery, paints, ​selected internet companies and ​consumer staples reflected ⁠resilient demand, premiumisation and, in some cases, price-led growth.

OIL WEAKNESS, MARGIN PRESSURE

Analysts' upbeat sentiment excluded oil marketing companies, which reported sharp ​first-quarter losses. Elevated crude prices overwhelmed strong refining margins, leaving ​earnings highly ⁠sensitive to fuel-price pass-through, inventory effects and crude volatility in the coming quarters.

Brokerages also flagged margin pressure across sectors as higher prices for metals, crude derivatives, palm oil, ⁠freight ​and wage costs weighed on profitability. Some of ​the sectors affected include autos, consumer goods and logistics.

IT services faced AI-linked pricing pressure, while lenders saw ​compression in net interest margins.