US President Donald Trump is hopeful that the tension in the ongoing war in the Middle East will reduce slightly after the ceasefire. There are still reports of missiles being fired at some places, but overall the tension seems to be reducing. But the impact of this Iran-Israel war can be seen on the major companies of India, the results of which will start coming from today. According to the report, the profit of some companies may fall by 20 percent in Q4.
The sudden increase in crude oil prices had an impact on many sectors dependent on energy and oil, which clearly affected the earnings of companies. Market watchers say that the trend of improvement in earnings estimates, which was going on for the last two quarters, was reversed in March 2026. Earnings growth in Q4 for Nifty is estimated to be between 4-6% on an annual basis. In the ET report, Motilal Oswal says that automobile, machinery, logistics, technology and utility sectors have cut the earnings estimates for FY26 the most.
According to Motilal Oswal data, a sharp increase in earnings is expected in some sectors like telecom, plastic pipe, retail and NBFC lending. At the same time, profits at the company level may decrease in many sectors. The oil and gas sector has suffered the most due to the increase in crude oil prices and its impact. Companies in this sector are directly affected by changing oil prices and refining margins.
According to the report, Indraprastha Gas's profit will decline by 45.1% on an annual basis, while Petronet LNG's net profit will be Rs 815.9 crore, which is 23.8% less on an annual basis. The reason for this is that with the increase in global gas prices, the cost of LNG import has also increased rapidly. HPCL's profits are also expected to decline by 31%.
The auto sector has had to face the impact of rising raw material costs, high steel prices and decline in demand following geopolitical impact. It is expected that Hyundai Motor India's profit will decline by 26.7% on an annual basis. This would be the steepest decline among major auto companies, reflecting pressure on margins due to higher component costs and tough competition. Despite the headwinds, the overall earnings picture for 4QFY26 remains largely positive. The NBFC-lending sector is expected to be the best performer, with earnings growing by 30% year-on-year (YoY). Which is the highest in the last ten quarters.
A good growth of 27% is also expected in the metal sector on annual basis. An annual growth of 12% is expected in private banks. Which is the highest in many quarters, while 11% YoY growth in technology and 10% YoY growth in consumer is also expected to lead to good double digit growth. MOFSL's large-cap, mid-cap and small-cap profit growth estimates for 4QFY26 are 7%, 25% and 18% year-on-year, the report said.
Nuvama analysts say that investors will have to prepare for a possible reduction in demand soon, because the condition of the global economy was weak even before the war and at the same time the slowdown in US private credit is also increasing the threat to demand. The brokerage said that going forward, while overall sales may remain stable, supply disruptions due to the war may impact profits. Along with this, it is necessary to invest carefully in view of the uncertainty at the global level.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
