India Inc’s strong Q1 performance has set a high bar for the earnings season ahead, with investors looking to Q2 for signs that the momentum can be sustained. As the calendar moves into Q3, however, a favourable base effect that has supported year-on-year growth will begin to fade, putting the focus on whether earnings growth is being driven by revenue, demand and margins.
The key question is whether Corporate India can replicate Q1’s performance in Q2, and how much of the earnings growth will hold up when the base-effect support weakens in Q3.
