Broad-based momentum missing as largecaps outperform Nifty 500 profit growth in Q2FY25: Motilal Oswal

During the first half of the fiscal, largecaps earnings grew faster than the broader markets, said MOSL note.

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26 Aug, 2025 12:21

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September quarter results of Nifty 500 companies were muted, kept in check by a broad-based consumption slowdown as well as global volatility, a note by Motilal Oswal said on November 26, adding that oil and gas space was a major drag.

Financials were a saving grace with a 14% on year earnings growth and so was IT with a 11% pick up, while cement and oil & gas were among the top laggards, reporting earnings decline of 56% and 52% respectively, the note said.

Overall, the pack of Nifty 500 companies reported a marginal one percent decline in earnings growth. Excluding BFSI, this earnings decline aggregated to 10% on year. However, if one removes earnings of sectors reliance on global commodities, ie metals and oil & gas, the pictures looks respectable, with a growth of 10.3% on year in aggregate earnings. The adjusted PAT for the universe inched lower by 1% on year to Rs 3.4 lakh crore, the MOSL note said.

Out of 18 major sectors, eight reported profit growth, while 10 saw a decline in Q2FY25.

The Nifty 100 as well as Nifty Midcap 100 index too saw an earnings decline of 1% and 2% on year respectively, while Nifty Smallcap 100 saw a 5% earnings growth compared to a year ago.

The September quarter earnings picture showed that the broad-basing of earnings has moderated, as it was the largecaps that primarily drove the September quarter earnings growth for the Nifty 500 universe. MOSL analysis showed that Nifty 100 companies accounted for 77% of the incremental profit, as compared to 70% last year.

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