Elara Securities: India's Margins Not Peaked, 27 Sectors Set for Expansion by FY27E

• Elara Securities challenges market consensus, stating Indian corporate margins have not peaked and will expand across 27 sub-sectors by FY27E.
• Sectors like Internet, Agro Chemicals, Cement, Real Estate, Utilities, and Hotels are expected to show strong margin momentum due to scale benefits and easing costs.
• Pharmaceuticals, IT Services, Defence, and Capital Goods face limited margin progress due to pricing pressure and wage inflation.
• EBITDA margins (excluding Financials) are projected to rise from 15% (FY25) to 17% (FY27E), with net profit margins (including Financials) expanding from 12% to 13%.
• Elara anticipates a re-acceleration of Nifty earnings, compounding at 14-15% through FY27E and FY28E, driven by a shift in FII flows towards undervalued markets like India.

Why It Matters: Elara Securities predicts significant margin expansion and earnings growth in India, driven by sectoral tailwinds and FII shifts.