Dalal Street is wrapping up the Q4 FY26 earnings season on a strong note, but the positive sentiment may not spill over to the next financial year. JM Financial warned that FY27 earnings downgrades warrants caution as it believes the expectations are likely to remain skewed on the downside against the backdrop of elevated crude oil prices, potential inflationary pressures and rising external uncertainties.
In its latest ‘Strategy’ note, JM Financial highlighted that at the beginning of FY25, the consensus expectation for Nifty 50 EPS growth stood at 15%. However, the actual growth came in at only 3.4%. Similarly, at the beginning of FY26, FY26, earnings were expected to grow 12–15%, whereas actual growth was only 4.5%.
