Cost pressure to keep Q1 profit growth muted for Nifty 50 companies

Nifty 50 companies are expected to report single-digit net profit growth of 5.8% in Q1FY26, marking the third consecutive quarter of muted profit expansion, even as revenue is projected to grow a healthier 10.6%. Aggregate operating margin is likely to shrink by 100 basis points to 21.9% year-on-year due to elevated crude-linked input costs, logistics expenses and commodity volatility. Analysts expect earnings recovery to strengthen in subsequent quarters, with autos, banking, consumer and metals likely to outperform while capital goods, cement, IT and pharma may report weak numbers.