Q1 earnings suggest an improving earnings cycle, but the recovery remains uneven across sectors

Q1 FY27 earnings signal an improving corporate earnings cycle with NSE500 profit growth at 21%, outpacing expectations. However, recovery remains uneven and concentrated in Metals, BFSI, and IT. Sustainable long-term growth will require broader capex participation, enhanced R&D intensity, power and land reforms, and higher export competitiveness.