Several major Nifty stocks, including Bharti Airtel, Tech Mahindra, Larsen & Toubro, and ICICI Bank, saw earnings per share (EPS) adjustments following their Q2 results.
Bharti Airtel, for example, recorded a notable year-over-year increase in net profit, which reflected an improvement in average revenue per user due to recent tariff adjustments.
The telecom sector, in particular, demonstrated positive revenue trends as companies continue to focus on strategic pricing and market expansion.
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Bharti Airtel had the highest EPS upgrade post-Q2 results. Brokerage firm Motilal Oswal Financial Services Limited raised its EPS estimate for Airtel by a substantial 16.3% to Rs 30.80.
Bharti Airtel’s Q2 results showcased a 168% year-over-year surge in net profit to Rs 3,593 crore, backed by a 12% increase in revenue to Rs 41,473 crore.
The company’s Average Revenue Per User rose from Rs 203 to Rs 233, boosted by recent tariff hikes and a 22.6% increase in mobile data consumption.
With customers using an average of 23.9 GB per month. Airtel’s strategic focus on “tariff repair” highlights its plan to strengthen ARPU further to support investments and sustain growth.
Airtel announced leadership changes as part of its structured succession plan. CEO Gopal Vittal will transition to Executive Vice Chairman in January 2026, with Shashwat Sharma set to become CEO.
The EPS revision was largely driven by the full flow-through of recent tariff hikes, strengthening Airtel’s Average Revenue Per User and revenue figures during Q2FY25.
Analysts noted a possibility of the momentum to continue into Q3FY25 as the benefits of the tariff increases become more evident.
This double-digit EPS upgrade sets Bharti Airtel apart, as it was the only Nifty-listed company to receive such a significant revision.
Among the 34 Nifty companies analyzed by MOFSL, Airtel’s performance signals a robust trajectory, supported by favorable telecom sector market conditions and its successful monetization strategies.
Tech Mahindra saw an 8.8% increase in its FY25 EPS estimates, bringing it to Rs 44. This EPS boost signals optimism for Tech Mahindra’s long-term prospects as the IT giant continues to drive digital transformation for global enterprises.
In Q2 FY25, Tech Mahindra posted a substantial increase in net profit, which more than doubled to Rs 1,250 crore, driven by asset sales and strong performance in non-American markets and the BFSI segment.
Revenue grew by 3.49% year-over-year, reaching Rs 13,313.2 crore. This boost was partly due to a special income from the sale of land and property, generating Rs 4,502 million, which the company plans to reinvest over a structured period.
CEO Mohit Joshi highlighted the early impact of “Project Fortius,” a three-year transformation plan focused on expanding operating margins to 15% by FY27.
This strategic effort, alongside Tech Mahindra’s focus on strengthening client relations and enhancing technical specializations in AI and cloud, underpins the company’s goal for sustainable growth amid industry challenges.
Tata Consumer Products Limited and Larsen & Toubro received notable EPS upgrades of 6.3% and 2.9%, respectively, reflecting positive momentum in the consumer goods and infrastructure sectors.
ICICI Bank was another notable contributor to Nifty’s EPS growth, with a 2.8% upgrade, highlighting its consistent performance in the banking sector.
HCL Technologies and Wipro also saw moderate EPS increases of 2.4% and 2.3%, while Kotak Mahindra Bank and Sun Pharma recorded smaller upgrades of up to 1%. These EPS adjustments, although modest, indicate steady gains in these sectors.
Broader Nifty Impact
The broader picture shows that the 34 Nifty companies that reported Q2 results account for 74% of the estimated PAT for the Nifty universe, representing half of India’s market capitalization and a weightage of 81% in the Nifty index.
Despite the EPS upgrades, these companies recorded a flat year-over-year growth in Q2, contrary to the initial estimate of a 2% YoY increase.
Strong performances from ICICI Bank, Bharti Airtel, NTPC, and HDFC Bank offset weaker results from companies like BPCL, JSW Steel, Coal India, Reliance Industries, and Ultratech Cement.
While 10 companies outperformed expectations and nine underperformed, the remaining 15 recorded results that were largely in line with estimates, showcasing a mixed performance landscape within the Nifty.
Despite the positive EPS upgrades for certain stocks, the broader Nifty index is contending with valuation challenges.
Nifty EPS has faced a 7% downward revision over the past six months, bringing the expected FY25 earnings growth to just 5%, marking the slowest rate since FY20.
As a result, the Nifty is trading at a 12-month forward P/E ratio of 20.7, roughly in line with its historical average of 20.5.
Valuations in the broader markets remain elevated. The NSE Midcap 100, for instance, is trading at an estimated forward P/E of approximately 30 times, indicating that despite a 7-8% market correction from recent highs.
Final Note – The information presented in this article is for informational purposes only and should not be construed as financial advice or an endorsement of any specific stocks or investment strategies. MarketScope Daily does not recommend or promote any securities mentioned. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
