Global brokerage CLSA has reported a better-than-expected Q3 earnings season, contradicting market scepticism. Despite concerns, nearly 30 per cent of the companies under CLSA’s coverage outperformed estimates, while 46 per cent lagged.

For the first time in nine quarters, urban-focused businesses saw profit-before-tax (PBT) growth turn positive, outpacing their rural counterparts. Despite this, Nifty 50's earnings per share (EPS) estimates for FY26 and FY27 were trimmed by around 3 per cent in consensus forecasts, while CLSA made a more modest 2 per cent cut.

CLSA analysts made bold moves, upgrading 18 per cent of stocks for FY26 while downgrading 63 per cent. Among the biggest winners were , which received notable upgrades. On the flip side, saw downgrades due to weaker-than-expected performances.

While Nifty 50 posted decent results, it wasn’t enough to prevent downward EPS revisions. Companies like were key contributors to earnings growth. However, weighed on overall performance.

With earnings momentum mixed and broader market correction underway, investors remain cautious. CLSA’s bold calls reflect both optimism in specific stocks and caution in others. As economic conditions evolve, stock selection will be key for investors aiming to navigate this volatile market.