Double-Digit Earnings Growth Expected Amid Higher Oil Prices

Oil prices may be increasing as a macro headwind for equity markets, but they do not necessarily prevent positive returns, especially when supported by improving domestic fundamentals and stronger earnings expectations. According to Shailendra Kumar, Chief Investment Officer at Narnolia Financial Services, Indian corporate earnings are expected to deliver double-digit growth in FY27. This is based on leading indicators such as credit growth, GST collections, automobile sales, and cement dispatches.

The earnings momentum is also likely to strengthen through the second half of FY27, resulting in robust year-on-year earnings growth during the period. Companies remain optimistic about underlying demand and margin stabilization.