J.P. Morgan: Indian mid- and small-cap companies’ Q2FY27 earnings growth may outpace large caps

A J.P. Morgan report expects earnings growth at Indian mid- and small-cap companies to exceed that of large-cap companies in Q2FY27, supported by capital expenditure, modern manufacturing, and investment in AI data centers. The firm expects Nifty 50 companies’ earnings to grow 17% year on year in the second quarter of this fiscal year, while net profits at companies it covers are projected to grow 16%, with revenue growth rising to 20% from 19% in the previous quarter. Higher raw material, fuel, freight, and packaging costs could weigh on margins, and the EBITDA margin at covered companies is expected to contract by 121 basis points year on year.