We are in the week right before the first quarter results of FY26, when hopes are not yet dashed and anything is possible. The market has been stuck in neutral, awaiting early signals on results and the India-US trade deal.
The deal has been stuck in the "it's almost there" stage for a while now. President Trump said that the India-US trade deal is “close” on July 7, even as the deadline for new tariffs quietly shifted from July 9 to August 1.
The Indian government has also sent mixed signals. Over the past week, the media quoted anonymous government sources promising a trade deal signing “within 48 hours”, “by 10 pm tonight” and so on. But then Commerce Minister Piyush Goyal confused everyone when he said, “India does not negotiate under deadlines”.
The earnings outlook is looking mixed as well. Analysts predict that Nifty 50 companies will post single-digit YoY net profit growth for the first time in nine quarters.
But it’s not all gloom and doom. The market is increasingly favouring the selective investor. Some companies in the pharma, telecom, and banking sectors are expected to deliver double-digit profit growth.
So which stocks are analysts bullish on this Q1?
In this week’s Analytics,
- Growth mode on: Five companies to watch this quarter
- Screener: Stocks with strong bullish forecasts and high upside potential
Five potential winners from analysts
As we head into the Q1FY26 results, we shortlist five stocks from the Nifty 500 that are predicted to post high revenue and net profit growth YoY and QoQ in Q1FY26, according to Trendlyne’s Forecaster. These companies have already set the bar high with strong results in Q4FY25.
Five stocks across industries have strong revenue and profit forecasts
All five stocks, Multi Commodity Exchange, Bharti Airtel, Firstsource Solutions, Lupin and Endurance Technologies, are from different sectors.
Only Lupin has underperformed the benchmark index in the past quarter. But over a longer timeframe, all five stocks have outperformed the index by a good margin.
Four out of five stocks have at least doubled in the past two years
These stocks have either ‘Good’ or ‘Medium’ scores across the Durability, Valuation, and Momentum categories. Bharti Airtel stands out with especially high scores and a DVM classification of ‘Strong Performer’. Good Durability and Valuation scores signal that these stocks may be financially strong, undervalued picks.
Stocks in focus have good Durability scores with strong fundamentals
These stocks also benefit from the industries they are in. Pharma, telecom and software are all expected to deliver good results.
Pharma is gaining from strong US generics sales, new specialty launches, and easing price pressures. Software has been seeing stable deal flows and improved cost control, both good for margins. Telecom has seen recent tariff hikes and steady subscriber growth.
Trading boost: MCX grows thanks to precious metals, energy, and new launches
This commodity derivatives exchange holds a near-monopoly in India’s market, with a share of around 98%.
The company’s growth engine is its bullion (gold and silver), and energy futures & options. These segments are driving volumes amid rising global volatility.
New product launches set to lift MCX’s revenue in Q1FY26
New product launches such as monthly-expiry gold and silver options, upcoming electricity derivatives, and planned weekly crude futures, are diversifying revenue streams and boosting trading volumes.
Praveena Rai, CEO of MCX is bullish about electricity derivatives, saying, “We see significant growth in this space. There is reasonable volatility. There is interest from market participants. And there is also a need for this because India is a huge market when it comes to power.”
With more participants entering the market, MCX looks well-placed for growth, according to analysts. But increased spending on tech has hit margins in recent quarters. In Q4FY25, total expenses jumped 64% YoY due to higher tech spending. Staff costs also surged 50% YoY, which weighed on margins.
Growth in high doses: US traction, new launches boost Lupin’s outlook
Analysts expect this pharma player’s net profit to jump 58.7% YoY in Q1FY26. Complex generics and specialty drugs, which are high-margin segments with low competition, are projected to boost net profit.
US business is expected to remain the key growth driver, on the back of new launches in complex generics and specialty drugs, including Tolvaptan. In Q4FY25, the US business grew 19% YoY, compared to a 6.9% growth in the domestic market.
Lupin banks on complex generics and specialty drugs to fuel growth
Nilesh Gupta, Lupin’s MD, commented on Lupin's shift in focus, “In FY25, complex generics contribute about 30% of our revenues. Over the next five years, this will account for 49% of revenues. The growth drivers for the business remain new product launches (NPLs), and we have more than 100 NPLs.”
As global demand for complex generics and biosimilars rises, Lupin is positioning itself to ride this tailwind.
Strong signals: 5G and broadband gains lift Airtel’s outlook
Airtel is expected to build on its momentum in FY26 with another strong set of results. The aggressive 4G-to-5G transition, combined with its industry-leading average revenue per user (ARPU) of Rs 245, is set to drive growth.
The company has focused on expanding its high-speed network, customer additions and increasing tariffs is boosting growth in its mobile services segment.
Gopal Vittal, Airtel’s MD, noted, “Most of the customers who we acquire come via family plans. That means three, two, three, or four family members. They tend to be on different operators, so aggregating them onto our family plans becomes a very important driver of our growth.”
Fast lane to growth: Airtel rides 5G wave and tariff hikes
Industry trends, such as the surge in broadband users and the rapid shift to 5G, provide a favourable environment for Airtel's sustained growth.
Higher gear: EV focus, new orders accelerate Endurance Tech’s growth
Endurance Technologies has been a key player in the auto component industry in India and Europe, supplying aluminium castings, suspensions, transmissions, braking systems, and battery management systems.
Its revenue driver is India’s two and three-wheeler segments, supported by new model launches. A growing focus on EV components, combined with the upcoming ABS mandate for two-wheelers, effective from January 2026, is expected to drive growth this FY.
EV order wins and two-wheeler demand power Endurance Tech’s revenue growth
Endurance's expansion into the four-wheeler segment, both in India and Europe, is also contributing to the topline. In Europe, it secured €12.4 million in new orders, including major deals from Volkswagen and BMW in the hybrid segment.
However, tariff escalations continue to be a concern for the company’s export business.
Europe's slowing growth is another issue. Massimo Venuti, CEO of Endurance Overseas, said, “In Q4FY25, new car registrations in the European Union dropped by 1.9% YoY, and production of new light vehicles in Europe is expected to decline by over 2% in the 2025 calendar year.”
Digital edge: AI, 'un-BPO' strategy to boost Firstsource
This BPO company is on track to post YoY revenue growth for the tenth straight quarter, driven by its “UnBPO” transformation—a shift from traditional outsourcing to a tech-led, 'digital-first' business model.
The company secured five major deals in Q4, four of which were valued at over $10 million. North America remains a major market for the company, accounting for over 67% of its revenue.
BFSI and healthcare to drive Firstsource’s 10th straight YoY revenue gain
Growth is led by the healthcare, BFSI, and media-tech verticals, with strong traction in GenAI services, claims processing, and digital intake.
Regarding deal wins in Q4, Ritesh Idnani, Firstsource’s CEO, said, “We won our largest deal in healthcare this quarter from one of the mid-market health plans in North America. This is also a new logo for us. This is a five-year business process as a service deal for us, with an annual contract value of well over $50 million in steady state”.
Screener: Stocks with strong bullish forecasts and high upside potential
Banks have the highest bullish forecasts and high target upside
As we approach the Q1FY26 results season, we examine stocks with the highest number of bullish estimates. This screener shows stocks with a high number of bullish forecasts from institutional analysts, and the highest Forecaster estimates 12-month target price upside %.
The screener includes stocks from banks, cars & utility vehicles, cement & cement products, IT consulting & software, and pharmaceutical industries.
Major stocks that appear in the screener are ICICI Bank, HDFC Bank, Mahindra & Mahindra, ITC, Axis Bank, State Bank of India, Tata Consultancy Services, and Crompton Greaves Consumer Electricals.
HDFC Bank has 38 bullish forecast estimates, with a Forecaster 12-month target price upside of 10.2%. Analysts at Geojit BNP Paribas believe that the bank is well-positioned to capitalise on improving liquidity, strong capital foundation, and enhanced tech capabilities to drive loan growth. They also expect HDFC Bank’s margins to expand, led by favourable asset composition, an improved borrowing mix and lower funding costs. Analysts expect the lender’s net interest income (NII) and net profit CAGR of 7.8% and 7.7% over FY26-27, respectively.
Mahindra & Mahindra also features in the screener with 35 bullish forecast estimates and Forecaster 12-month target upside of 13%. According to BOB Capital Markets, this cars & utility vehicles company’s automotive and farm equipment sector (FES) segments will grow on the back of healthy monsoons and a strong launch pipeline. The brokerage expects a revenue and net profit CAGR of 13.1% and 17% over FY26-27.
You can find some popular screeners here.
