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Corporate Earnings Set to Surge 17-20 Percent in Q2FY27 Despite Market Sell-Off
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CNBC TV18•08-10-2026, 15:21
Corporate Earnings Set to Surge 17-20 Percent in Q2FY27 Despite Market Sell-Off
- •Corporate profits are projected to grow 17 to 20 percent year-on-year in the July-September quarter of FY27, building on prior momentum.
- •Recent market sell-offs are driven by macroeconomic concerns like rising bond yields rather than declining corporate earnings.
- •Private-sector banks offer attractive valuations with eased net interest margins and credit costs at decade-low levels.
- •The automobile sector benefits from strong sales volumes and pent-up demand following recent tax rate adjustments.
- •Life insurers are well positioned due to a profitable product mix shift toward higher-margin non-participating and term policies.
Key Questions Answered
Corporate profits are anticipated to grow between 17% and 20% year-on-year in the July-September quarter of FY27, building upon the 15% to 16% growth recorded in the preceding quarter.
Private-sector banks offer very reasonable valuations because concerns regarding net interest margins have eased following the rate-hike cycle, accompanied by rebounds in loan growth, deposits, and decade-low credit costs.
The life insurance sector is experiencing a beneficial shift towards higher-margin non-participating and term insurance products following recent tax adjustments, which helps support overall profitability.
