- India's FY27 earnings outlook is improving after a resilient March quarter
- Midcap earnings grew 27%, smallcap 17%, and largecap around 10-11% recently
- Helios Capital raised FY27 earnings growth forecast to 14-15% from low double digits
India's earnings outlook for FY27 may be turning stronger than previously expected, according to Dinshaw Irani, who said analysts at his firm are upgrading growth estimates after a surprisingly resilient March quarter. Speaking to NDTV Profit, Irani said earnings growth across midcap companies has held up despite disruptions caused by the ongoing West Asia conflict and elevated crude oil prices.
“We've seen almost 90% plus of the market cap reporting,” Irani said, referring to the Nifty 500 universe. “The earnings growth for the midcap universe is almost 27%, which is fairly healthy.” According to him, smallcap earnings growth is currently around 17%, while largecap companies are reporting growth of roughly 10-11%.
The stronger-than-expected performance has prompted Helios Capital's analysts to revise FY27 earnings assumptions upward. “After the war had broken out, my analysts had cut the numbers down for earnings growth to around low double digits,” Irani said. “Now they are upping it to 14-15%.”
Even the June quarter, which many investors expected to be the weakest period because of geopolitical uncertainty and rising input costs, is now looking stronger than initially feared. “The June quarter which was supposed to be the worst quarter is now looking at high single-digit growth,” he added.
Irani attributed the resilience largely to steady domestic demand and the ability of companies to gradually pass on higher raw material costs to consumers. “You've seen that in oil and gas companies, auto companies and consumer companies,” he said.
Helios Capital has consequently become more constructive on discretionary and “new-age” consumption businesses, while trimming exposure to some banking names. “Consumption is the area where you want to be in,” Irani said, adding that demand trends remain healthy despite global uncertainties.
At the same time, Irani cautioned that large market rallies may be harder to sustain globally, given slowing macroeconomic conditions and concentration in AI-linked technology stocks in markets such as the US and Taiwan. Still, he believes India's earnings trajectory remains supportive for equities if geopolitical tensions stabilise and crude oil prices cool from current levels.
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