India's FY27 Earnings Growth May Stay Below 10%: Ambit's Dhiraj Agarwal Warns

• Dhiraj Agarwal of Ambit Investment Managers predicts India's FY27 earnings growth could fall below 10%, contrasting with global peers like Korea (40%), Japan (12%), US (13-14%), and Europe (over 10%).
• Despite consensus estimates of 17% growth for India, Agarwal notes a trend of EPS downgrades, with FY26 closing at 7% growth after starting at 16-17%.
• Agarwal highlights FPI outflows, IPO supply, and limited domestic inflows as factors hindering market recovery, even with corrected valuations.
• Worrying demand trends, with the post-GST cut boost lasting only 4-6 weeks, further contribute to concerns about earnings growth.
• The Union Budget's market impact is expected to be limited, seen more as an accounting exercise with little room for aggressive spending due to fiscal discipline.

Why It Matters: India's FY27 earnings growth is projected to remain under 10%, posing challenges for market performance.