Analysts cut India FY27 profit growth outlook to 9.2%
Consensus estimates for covered listed companies fell as energy and input costs rose, while real estate forecasts moved higher.
Key takeaways
- FY27 profit growth consensus fell to 9.2% in September from 16.5% in February.
- Energy-sector earnings growth estimates shifted from 2% to a 16.9% decline.
- Real estate FY27 growth estimates rose to 28.1% from 24.6%.
Analysts’ consensus for profit growth among a group of Indian listed companies fell to 9.2% for FY27 in September, from 16.5% in February. The figures come from the National Stock Exchange’s Market Pulse report and cover 200 companies followed by at least five analysts.
The 730-basis-point decline came as energy and raw material costs rose amid the conflict that began in February, according to the report. Energy had the steepest downgrade: its FY27 earnings growth estimate moved from 2% in February to a 16.9% contraction in September.
Consumer staples estimates also turned negative, falling from 9.8% growth to a 3.8% decline. Estimates for consumer discretionary, industrials, information technology and financials each fell by between 100 and 500 basis points.
Real estate was the exception. Its projected FY27 earnings growth rose to 28.1% from 24.6%, with the report citing sustained demand for premium housing.
Analysts raised their FY28 profit growth consensus to 17.2% in September from 14.3% in February. For FY26-28, the financial sector is expected to contribute 40.8% of incremental earnings, followed by consumer discretionary at 13.1% and industrials at 11.3%.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
