Q1 Earnings Show Slow Growth, But Devarsh Vakil Expects Stronger Recovery Ahead For Markets

Indian markets have witnessed moderate earnings growth, but expectations are improving for the coming quarters. Devarsh Vakil, Head of Prime Research, HDFC Securities, says analysis of nearly 800 companies shows around 5% revenue growth and 7% profit growth so far. He believes earnings could improve as geopolitical concerns and crude oil pressures ease. With expectations of 12–14% growth for FY27, markets are already pricing in a potential recovery. While large caps delivered steady performance, mid and small caps reported stronger numbers and continued to outperform.