A study of earnings predictions by Nuvama, Kotak Institutional Equities, and Motilal Oswal shows there are at least 9 companies which are likely to report a profit decline of 50% or more year-on-year in the October-December quarter of FY26.
IndusInd Bank is expected to witness the steepest fall, with core profit projected to plummet 92% year-on-year to ₹113 crore from ₹1401 crore in the same quarter last year. The private sector lender continues to grapple with asset quality pressures and provisions that have weighed heavily on its bottom line.
In the specialty chemicals space, PI Industries is headed for a challenging quarter with profit expected to nosedive between 69% and 80% year-on-year. The agrochemicals major is facing headwinds from weak pricing in key molecules, particularly after profit warnings from its Japanese partner Kumiai Chemicals regarding Pyroxasulfone, one of its flagship products.
The textile sector is witnessing severe stress, with Welspun Living likely to swing into losses. The home textile exporter’s profit is expected to crash 99% year-on-year to just ₹10 lakh from ₹120.8 crore, hurt by tariff impacts and absorption of higher costs amid a difficult demand environment, according to Nuvama.
GAIL India, the nation’s largest natural gas transmission company, is projected to see its core profit decline 55% year-on-year to ₹1742 crore from ₹3867 crore. Weakness in its LPG and petrochemical segments due to low regional LPG prices and continued losses in its petchem division are expected to drag down overall profitability.
In the pharmaceutical sector, NATCO Pharma is likely to report a 73% year-on-year profit decline. While the company’s domestic pharma and agrochem businesses are expected to show modest growth, the significantly lower contribution from gRevlimid compared to the high base last year will severely impact margins.Orchid Pharma is expected to report a 73% year-on-year profit decline, impacted by slower exports and pricing pressure in its key markets. The company’s EBITDA margin is likely to contract significantly to around 4.4%.
Bajaj Electricals, facing weak consumer demand and adverse operating leverage, is expected to see its profit tumble 52% year-on-year. The consumer durables company has been struggling with weak demand scenarios and competition that have pressured margins.
Sapphire Foods India, which operates Pizza Hut and KFC outlets, is expected to see its net profit falling 62% YoY. The QSR operator has been battling weak same-store sales growth, with KFC expected to report flattish SSSG and Pizza Hut facing 11% decline.
KNR Construction is expected to report a sharp 55.7% year-on-year decline in adjusted PAT to ₹40 crore, according to Motilal Oswal. The infrastructure company’s operating
margin is expected to increase by 160bp YoY on better execution post weak Q2 execution.
Weak global growth, margin compression due to increased competitive intensity, and muted consumer demand in certain segments are the primary factors behind the earnings slowdown. While some sectors like industrials, domestic auto, metals, and durables are expected to show strong growth, exporters in chemicals, auto, and pharma segments are likely to face headwinds.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)