Indian firms beat quarterly estimates amid war risks
India's top listed companies reported a 6.6% rise in net profit for the quarter ended March, surpassing analyst expectations of 2% growth. While domestic consumption and strong bank performance drove the beat, analysts warn that the ongoing Iran conflict and high oil prices now threaten future corporate margins.
India blue-chip firms reported a 6.6% year-on-year profit increase for the quarter ended March 31, beating the 2% growth forecast by analysts. The surprise performance came as domestic consumption tax cuts and easy monetary policy supported activity across the financial and metal sectors. However, a three-month conflict involving Iran has triggered an energy shock that threatens to erode these corporate gains.
### Financials and Metals Drive Earnings Beat Net profit for Nifty 50 constituents rose 6.6%, according to Kotak Institutional Equities data. Lenders and financial firms led the growth due to stable asset quality and improved credit expansion. Metal producers also contributed to the beat, benefiting from a rise in global commodity prices during the period.
