The early signals for the Q2FY26 earnings are here. The previous quarter was tough, with company revenues in Q1 growing at their slowest pace in over two years. Sectors like banking and FMCG felt the squeeze from weak margins and sluggish urban consumption.
Expectations are modest for the second quarter, with profit growth for the Nifty 50 likely to be in the single digits. Motilal Oswal points out that the quarter’s growth will be "anchored by oil & gas, metals, telecom, cement, and technology," with most consumer and banking segments seeing headwinds.
Some analysts have kept the IT services sector in the spotlight, but for the wrong reasons. Growth is likely to stay muted as global clients remain cautious due to economic pressures and the early deflationary effects of AI. While the big IT firms are expected to see slower growth, some mid-tier companies, such as Coforge, might buck the trend. Banks are also preparing for a weaker quarter as the profit margins on loans get thinner due to the RBI’s 100 bps rate cuts this year.
Despite the muted mood, there are still some bright spots. In this edition of Chart of the Week, we look at Nifty 500 companies with the highest projected revenue and EPS growth in Q2FY26. All of these companies also have consensus ‘Buy’ or ‘Strong Buy’ ratings. The screener includes names like Max Healthcare and Syrma SGS Technology, which signal where analysts see sustained momentum despite the broader slowdown.
Exciting growth stories with ‘Strong Buy’ rating
Even in a quarter with modest expectations, some companies stand out for their strong projected performance. The Forecaster expects them to lead in revenue and EPS growth in Q2FY26, while analysts remain bullish on their prospects this quarter.
Neuland Laboratories is set for a major comeback. After a sharp 33.4% drop in Q1 revenue, Trenldyne Forecaster now predicts its revenue will jump by 45.6% and EPS by 111.8%. This turnaround is tied to its new production facility in Telangana, which will boost its peptide capacity (chemical production) by over 12 times. CEO Sucheth Davuluri noted the first quarter was “below par” due to weak customer orders, but it “doesn’t change our outlook on the healthy growth” expected over the year.
Meanwhile, GE Vernova T&D and Schneider Electric Infrastructure are benefiting from India's infrastructure spending and the shift toward green energy. GE T&D has secured large orders, including a Rs 500 crore deal to support the grid integration of renewables. Schneider is seeing strong demand from the expansion of data centres and the broader move towards digitisation. Revenue is projected to rise 42.8%, with EPS estimated at 83.3%, supported by its involvement in AI and networking.
In the consumer market, Radico Khaitan is banking on the strategy of premiumization. Trendlyne Forecaster expects its revenue to grow by 26.8%, driven by its high-end brands, which already make up nearly half of its sales. As more people turn to premium products, the company expects its profit margins to expand significantly.
Big bets on expansion, new frontiers
UltraTech Cement, Max Healthcare, and CG Power are fueling their growth through ambitious expansion plans and investments in high-potential areas. UltraTech, already the world's largest cement producer outside of China, has a production capacity of around 172 million tonnes per annum (MTPA). It is on track to increase its capacity to 200 MTPA by 2026, a year ahead of schedule. Recent acquisitions of other cement businesses will further solidify its top position. Revenue is projected to grow 27.4%, with EPS expected to rise 119.2%.
In the healthcare sector, Max Healthcare is nearly doubling its bed capacity to 10,000 by 2029. A majority of this expansion will come from upgrading existing facilities, which is a faster way than building new ones. The Forecaster projects its revenue to rise 55.1% in Q2 as the company also aims to increase its revenue per patient by focusing on complex and high-value medical treatments.
CG Power is venturing into the high-tech world of semiconductors. The company is setting up India's first complete chip assembly and testing facility in Gujarat with a massive Rs 7,600 crore investment, supported by government incentives. At the same time, its main businesses in power systems and railway parts remain strong, with a record order book of nearly Rs 13,000 crore.
From IT to exchanges: Stocks gaining traction this quarter
Coforge had a good start to the year, with its revenue growing by 52.8% YoY in Q1. CEO Sudhir Singh noted that a strong order book and the largest-ever addition of new employees have positioned the company for growth. For Q2, revenue is projected to grow 33.4%, with EPS expected to rise 87.3%. Analysts at Sharekhan pointed to Coforge’s executable order book of $1.5 billion (~Rs 13,300 crore) over the next 12 months as a key driver of confidence in its FY26 growth trajectory.
Syrma SGS Technology saw its revenue dip in the first quarter, but its net profit soared, highlighting better operational management. The company is now moving into manufacturing printed circuit boards (backward integration), which will give it more control over its supply chain and improve profit margins. The company’s management is focusing on high-growth and high-margin areas like industrial automation, electric vehicles, healthcare, and smart meters.
Meanwhile, BSE is drawing attention ahead of Q2 results, with focus shifting to regulatory changes in derivatives trading. Following a directive from SEBI to streamline trading schedules, from September 1, BSE's weekly contracts now expire on Thursdays, while the NSE has moved its expiry day to Tuesdays. Trendlyne Forecaster expects its revenue to surge 34.8% and EPS by 51% in Q2.
CEO Sundararaman Ramamurthy highlighted that these efforts are aimed at deepening the derivatives market, and he expects a 3–5% growth in trading volumes for monthly and other non-weekly contracts. He added that despite global challenges, strong participation from domestic investors and ongoing reforms provide confidence in the market's long-term growth.
