As Indian equity markets head into 2026 after a year marked by consolidation, brokerage Motilal Oswal Financial Services (MOSL) believes the next phase will be driven by earnings recovery and steady growth,
rather than sharp, euphoric rallies.
The brokerage pointed out that the Nifty closed 2025 with gains of nearly 10 per cent despite global trade uncertainties, sustained FII selling and muted earnings momentum. It expects corporate earnings growth to rebound to around 9 per cent in FY26 and accelerate to about 15 per cent in FY27 and FY28, supported by policy stability, RBI rate cuts and a revival in private capital expenditure.
Against this backdrop, MOSL has shortlisted 10 high-conviction stock ideas for 2026, backed by strong earnings visibility and reasonable valuations.
Here are MOSL’s stock picks for 2026:
Bharti Airtel | Target: Rs 2,365 | Upside: 12%
MOSL said Bharti Airtel continues to execute strongly across mobility and digital infrastructure, aided by premiumisation, ARPU expansion and steady broadband growth. Moderating capex and operating efficiencies are strengthening free cash flow, even as investments in 5G and digital platforms continue. The brokerage expects consolidated revenue and EBITDA to grow at a CAGR of 15 per cent and 18 per cent, respectively, over FY25–FY28.
State Bank of India | Target: Rs 1,100 | Upside: 14%
According to MOSL, SBI remains a preferred large-cap banking play due to its diversified franchise, strong balance sheet and improving asset quality. Credit growth is healthy at around 13 per cent year-on-year, with management guiding for 12–14 per cent loan growth and net interest margins above 3 per cent. Structural initiatives such as Project Saral and a corporate credit pipeline of nearly Rs 7 lakh crore add comfort. MOSL expects FY27 RoA and RoE of about 1.1 per cent and 15.5 per cent, respectively.
HCL Technologies | Target: Rs 2,150 | Upside: 29%
MOSL said HCL Technologies stands out among large-cap IT peers, driven by IT services and engineering R&D growth. Early traction in AI-led solutions, now contributing roughly 3 per cent of revenue, is improving productivity and enabling non-linear growth. The brokerage expects USD revenue CAGR of 5.3 per cent and INR PAT CAGR of 7.2 per cent over FY25–FY27, supported by large deal ramp-ups and AI adoption.
Eternal | Target: Rs 410 | Upside: 46%
Zomato-parent Eternal is seeing strong revenue momentum as it shifts to an inventory-led model, resulting in better net revenue recognition and gross margins, MOSL said. The rapid scaling of quick-commerce platform Blinkit, supported by store expansion and execution, remains a key driver. Franchise and e-commerce segments are also gaining share, improving diversification, while contribution and EBITDA margins are gradually improving.
TVS Motor | Target: Rs 4,159 | Upside: 14%
Motilal Oswal noted that TVS Motor continues to outperform the broader auto sector, supported by strong festive demand, GST-led recovery and rising market share across two-wheelers and EVs. Export performance remains robust, with growth across Africa and Latin America. Improved product mix, operating leverage and a strong launch pipeline underpin upgraded earnings estimates. MOSL expects revenue, EBITDA and PAT to grow at CAGRs of 21 per cent, 25 per cent and 29 per cent, respectively, over FY25–FY28.
Max Financial Services | Target: Rs 2,100 | Upside: 26%
MOSL said Max Financial is delivering better-than-industry APE growth, supported by higher contribution from protection, non-par and annuity products. Growth remains strong across proprietary and bancassurance channels, while persistency has improved across long-term cohorts. The brokerage expects value of new business margins to rise to 25 per cent in FY26, 26 per cent in FY27 and 26.5 per cent in FY28.
Biocon | Target: Rs 460 | Upside: 16%
Biocon is well positioned for a biologics-led earnings revival following the acquisition of Viatris’ biosimilar business, MOSL said. The expanded commercial footprint complements its development and manufacturing capabilities. The brokerage expects broad-based scaling across biologics, generics and CDMO businesses over FY26–FY28, supported by new product launches, portfolio scaling and operating leverage at Syngene.
JK Cement | Target: Rs 7,000 | Upside: 23%
According to MOSL, JK Cement continues to show operational resilience despite near-term pricing pressures. Strong volume growth in central and southern markets, effective cost control and gradual premiumisation remain positives. Capacity additions at the Jaisalmer integrated plant and the Buxar grinding unit are progressing as planned. Green energy adoption is expected to rise to about 75 per cent by FY30, aiding margin expansion.
Poonawalla Fincorp | Target: Rs 600 | Upside: 27%
MOSL said Poonawalla Fincorp is executing its strategy to build a digitally enabled, multi-product retail lending platform. New growth engines such as personal loans, gold loans, CV finance and education loans are scaling rapidly, supporting an AUM CAGR of around 50 percent over FY25–FY28. Investments in AI and machine learning are expected to bring down the cost-to-income ratio from 51 per cent in FY25 to about 42 per cent by FY28.
Privi Speciality Chemicals | Target: Rs 3,960 | Upside: 21%
MOSL believes Privi is well placed to benefit from the global aroma chemicals market, expected to reach USD 9.2 billion by 2030. Capacity expansion from 48,000 MT to 66,000 MT by March 2028 supports sustained growth. The proposed merger with Privi Fine Sciences will add high-margin bio-based products and strengthen its green chemistry portfolio. The brokerage expects revenue and EBITDA to grow at CAGRs of 27 per cent and 34 per cent, respectively, over FY25–FY28.
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