Profit at Nifty50 companies climbed 18% from a year earlier in Q1 of FY27, the fastest growth in 10 quarters and well above Motilal Oswal Financial Services’ estimate of 10%. Yet five companies—ONGC, Hindalco Industries, Reliance Industries, JSW Steel and Bharti Airtel—accounted for 60% of the incremental earnings.

Motilal Oswal described the quarter as a “picture-perfect” period of broad-based performance, with 19 sectors exceeding its expectations. The brokerage’s coverage universe, excluding oil-marketing companies, recorded sales, Ebitda and profit growth of 18%, 15% and 22%, respectively.

But while earnings surprises were widespread, the actual profit expansion remained clustered. The five biggest sector contributors generated 73% of the incremental profit in Motilal Oswal’s universe during the quarter.

Oil and gas companies excluding OMCs contributed Rs 16,900 crore to the year-on-year profit increase, followed by metals at Rs 15,700 crore. Non-bank lenders added Rs 8,000 crore, private sector banks Rs 7,300 crore and state-run banks Rs 3,900 crore.

Metals produced one of the sharpest turnarounds. The sector moved from being among the bottom 10 profit contributors a year earlier to the second largest contributor in the June quarter.

Hindalco’s profit increased 118%, while JSW Steel posted growth of 96%. Nifty’s earnings strength was similarly concentrated.

Beyond the five leading contributors, InterGlobe Aviation, ITC, Dr. Reddy’s Laboratories, Tata Motors’ passenger vehicle business and Cipla weighed on profit growth.

The divergence becomes more evident in earnings revisions. 6% to Rs 1,232.

3% to Rs 1,425 from Rs 1,422.. Why the index is still not cheapReliance, Hindalco, ONGC, ICICI Bank and State Bank of India drove the FY27 upgrade.

9%. 8%, the steepest reduction in the index.

Dr. The broader market-cap data presented a stronger growth profile.

Excluding OMCs, profit at large-cap companies in Motilal Oswal’s universe rose 21%, compared with its 14% estimate. Mid-cap profit increased 23% against an expected 17%, reaching an 11-quarter high.

Small caps recorded the fastest growth, with profit surging 31% versus an estimate of 22%. That performance, however, was supported by a favourable comparison with the year-earlier quarter, when profit had increased just 1%.