Nuvama sees West Asia conflict squeezing FY27 H1 earnings, with a rebound expected in H2

Nuvama said the ongoing West Asia conflict is likely to keep corporate earnings under pressure in the first half of FY27 as higher energy costs narrow margins. The impact will vary by sector: some automakers are absorbing the cost increase, while consumer-facing companies such as paint makers are passing it on, risking slower volumes. The report expects earnings to rebound in the second half, but warns that weak demand, fading GST-cut support and subdued income dynamics could put the BSE500’s 19% YoY profit-after-tax growth forecast at risk of downgrades.