India's GDP Grew At 7.8% YoY In Q1, But Caution Ahead Says Dolat Capital — Read Report

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Dolat Capital Report

India’s gross domestic product grew by 7.8% YoY in Q1 FY26 highest since Q4 FY24, drastically beating the expectations of 6.7% YoY (Bloomberg). Growth in the previous quarter (Q4 FY25) was 7.4% YoY, and it was 6.5% YoY Q1 FY25.

Overall real GVA grew by 7.6% beating the expectation of 6.4% while it was 6.8% YoY in Q4 FY25 and 6.5% YoY Q1 FY25.

Market View -

The latest GDP figure comes as a surprise and India’s equity market is expected to react positively. With the anticipated GST rate cuts ahead of the festive season, a much-needed revival in consumption is expected.

This could act as a key catalyst for the long-overdue demand recovery. In turn, corporates are likely to step up their investment activity, further reinforcing the growth momentum.

While the near-term outlook remains constructive, elevated tariffs of 50% pose a potential headwind to growth over the remainder of the current fiscal year.

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