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Rising energy costs cloud India earnings momentum

A temporary U.S.-Iran ceasefire has ended, leaving crude elevated, which investors fear could squeeze inflation, fiscal balances, and corporate margins into Q2 and Q3.

Reported · Written up by our desk · Trade & Tariffs

AI Quick Read India Inc. has posted one of its strongest earnings seasons in recent quarters, with corporate results beating expectations as revenue growth accelerated and earnings upgrades reappeared, according to LiveMint Markets.

LiveMint Markets reports that the Nifty50 delivered 17% year-on-year growth in PAT, well above a 10% estimate, and that 33 Nifty50 constituents surpassed forecasts versus 17 misses. The outlet also points to broad participation, including strong showings in metals and improving profitability in telecom, where higher average ARPU supported results.

Still, investors have stayed cautious as markets swing between optimism and nervousness, LiveMint Markets says. The gap is tied to what the report calls the biggest near term challenge, a sharp rise in energy prices that could drag performance in Q2 to Q3 even if Q1 looked better due to cost lags and firms' ability to pass through price increases.

LiveMint Markets adds that crude oil remains elevated after the temporary U.S.-Iran ceasefire ended and no lasting diplomatic solution has been reached. With India reliant on energy imports, the report highlights risks for inflation and fiscal balances, and notes that sectors that benefited in Q1 could face weaker outcomes if higher input costs persist into the next quarters.

Latest closeWTI crude $82.40 ▲1.4%

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