India Inc’s strongest earnings quarter in years may already contain the seeds of a slowdown. The favourable base and consumption stimulus, a weaker rupee and rising commodity prices that propelled Q1 results are all set to lose force in the second half, just as forecasts demand another year of robust profit growth.
“Unless there is a fresh demand stimulus, expect sharp top line/PAT deceleration in H2FY27,” Nuvama analysts Prateek Parekh and Priyanka Shah said. The brokerage said the 19% profit growth forecast for its BSE 500 universe excluding oil-marketing companies remains a “tall task.”
