Indian companies overall posted better-than-expected earnings for the first quarter of FY27, which led to analysts upgrading their forecasts, but there is a risk of downgrades in the coming quarters, HSBC said in its latest India equity strategy report.
Approximately 70% of Indian firms' Q1 results beat or were in line with HSBC’s expectations, with mid caps and small caps leading the way by posting up to 35% YoY growth. Consumption stayed resilient after the GST cuts and RBI easing last year, HSBC further said, adding that firms also rolled out calibrated price increases and, along with inventory gains, these partially offset higher raw material costs.
