SYNOPSIS: Motilal Oswal flags a potential earnings turnaround, naming 10 large- and mid-cap stocks for 2026, citing improving profit estimates, sectoral strength, and scope for meaningful upside in the next market phase.
After a prolonged period marked by earnings downgrades and subdued sentiment, India’s equity market may finally be seeing a turn for the better. A recent report from Motilal Oswal indicates that the phase of sharp earnings cuts could be nearing its end, with corporate profit estimates witnessing their first upward revision in more than a year.
Looking ahead to 2026, the brokerage has also highlighted a basket of large- and mid-cap stocks that are likely to stay in the spotlight as the market enters its next phase.
Motilal Oswal pointed out that this marks the first earnings upgrade since the close of the Q1 FY25 results season, signalling a meaningful shift after five consecutive quarters of downward revisions.
Here are Motilal Oswal’s top 10 stock picks for 2026, offering potential upside of up to 50 percent:
With a market capitalisation of Rs. 1.83 lakh crores, the stock closed in the green at Rs. 3,868.05 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for TVS Motor, setting a target price of Rs. 4,159 per share, indicating a potential upside of around 8 percent from Tuesday’s closing price.
TVS Motor is outperforming the broader auto industry, supported by strong festive demand, market share gains, and rising traction in electric vehicles. Backed by a healthy product pipeline, the brokerage expects revenue, EBITDA, and PAT CAGRs of 21 percent, 25 percent, and 29 percent, respectively, over FY25-FY28E.
State Bank of India
With a market capitalisation of Rs. 9.4 lakh crores, the stock closed in the green at Rs. 1,018.75 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for State Bank of India (SBI), setting a target price of Rs. 1,100 per share, indicating a potential upside of around 8 percent from Tuesday’s closing price.
As per the brokerage, SBI remains well-positioned with a diversified business mix, robust balance sheet, and improving asset quality. Credit growth is tracking at around 13 percent YoY, while management has guided for 12-14 percent loan growth and NIMs to stay above 3 percent.
Bharti Airtel Limited
With a market capitalisation of Rs. 12 lakh crores, the stock closed in the green at Rs. 2,105.95 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for Bharti Airtel, setting a target price of Rs. 2,365 per share, indicating a potential upside of over 12 percent from Tuesday’s closing price.
The company continues to deliver strong execution across mobility, broadband and digital infrastructure, driven by premiumisation and steady ARPU expansion. Motilal Oswal expects consolidated revenue and EBITDA CAGR of 15 percent and 18 percent over FY25-28E.
Biocon Limited
With a market capitalisation of Rs. 51,479.7 crores, the stock closed in the red at Rs. 385.05 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for Biocon, setting a target price of Rs. 460 per share, indicating a potential upside of over 19 percent from Tuesday’s closing price.
Biocon’s acquisition of Viatris’ biosimilars business has significantly strengthened its global biologics presence. The brokerage expects an earnings recovery over FY26-FY28, led by biosimilar launches, scaling of generics, and operating leverage at Syngene.
Max Financial Services Limited
With a market capitalisation of Rs. 59,749.7 crores, the stock closed in the green at Rs. 1,731.3 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for Max Financial, setting a target price of Rs. 2,100 per share, indicating a potential upside of over 21 percent from Tuesday’s closing price.
Max Financial is delivering above-industry APE growth, driven by a richer mix of protection, non-par, and annuity products. Motilal Oswal expects VNB margins to improve to 25-26.5 percent during FY26-FY28, supporting long-term profitability.
J K Cements Limited
With a market capitalisation of Rs. 44,367.4 crores, the stock closed in the red at Rs. 5,743.25 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for JK Cement, setting a target price of Rs. 7,000 per share, indicating a potential upside of around 22 percent from Tuesday’s closing price.
JK Cement continues to demonstrate operational resilience despite near-term pricing pressure. Strong volume growth in central and southern India, along with effective cost control, is expected to support healthy earnings compounding over FY25-FY28, according to Motilal Oswal.
Poonawalla Fincorp Limited
With a market capitalisation of Rs. 38,937 crores, the stock closed in the red at Rs. 479.15 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for Poonawalla Fincorp, setting a target price of Rs. 600 per share, indicating a potential upside of over 25 percent from Tuesday’s closing price.
Poonawalla Fincorp is steadily transforming into a technology-led, multi-product retail lending platform under its new leadership. Rapid scale-up across personal loans, gold loans, commercial vehicles, and education loans is driving strong growth in assets under management (AUM). Motilal Oswal expects this momentum to translate into sharp earnings growth over the coming years.
HCL Technologies Limited
With a market capitalisation of Rs. 4.38 lakh crores, the stock closed in the green at Rs. 1,616.3 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for HCL Tech, setting a target price of Rs. 2,150 per share, indicating a potential upside of around 33 percent from Tuesday’s closing price.
HCL Tech continues to outperform peers, driven by steady momentum in IT services and ER&D, along with early traction in AI-led offerings, which now contribute about 3 percent of revenues. Motilal Oswal forecasts USD revenue CAGR of 5.3 percent and INR PAT CAGR of 7.2 percent over FY25-FY27E.
Eternal Limited
With a market capitalisation of Rs. 2.69 lakh crores, the stock closed in the red at Rs. 278.75 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for Eternal, setting a target price of Rs. 410 per share, indicating a potential upside of around 47 percent from Tuesday’s closing price.
According to the brokerage, Eternal is seeing strong revenue traction as it shifts toward an inventory-led business model, helping drive faster net revenue growth and improving gross margins. At the same time, Blinkit continues to scale up rapidly, supported by aggressive store expansion and improving operational execution, which adds further momentum to the company’s growth outlook.
Privi Speciality Chemicals Limited
With a market capitalisation of Rs. 10,310.6 crores, the stock closed in the red at Rs. 2,639.5 on Tuesday. The analysts of domestic brokerage firm Motilal Oswal have issued a ‘buy’ rating for Privi Speciality, setting a target price of Rs. 3,960 per share, indicating a potential upside of around 50 percent from Tuesday’s closing price.
Privi Speciality Chemicals is well placed to benefit from the expanding global aroma chemicals market, which is projected to reach $9.2 billion by 2030. Planned capacity expansions and the proposed merger with Privi Fine Sciences are expected to strengthen its focus on green chemistry and higher-margin products. Motilal Oswal anticipates strong revenue and EBITDA compounding over FY25-FY28.
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