Corporate India is structurally stronger than in past cycles, backed by a decade of deleveraging, effective corporate tax cuts to 25 percent, and strong cash flows, said Dimplekumar Shah, Managing Director and CEO – Equity Broking, Business Affiliates & Retail Wealth at JM Financial Services, in an interview with Moneycontrol.
Over the next 12–18 months, he said, becoming materially more bullish on equities would require de-escalation in West Asia accompanied by lower oil prices, a broad-based recovery in urban and rural consumption, a pickup in private capex reflected in order books, positive FII flows, and confirmed delivery of around 15 percent or higher FY27 Nifty-50 earnings growth.
Meanwhile, Q2FY27 results will test margin resilience. A failure to deliver could raise second-half earnings expectations, likely prompting profit-booking and consolidation in stretched small-, mid- and large-cap (SMID) segments, he said.
Are corporate India’s balance sheets strong enough to withstand a prolonged period of higher commodity and financing costs?
Corporate India is structurally stronger than in past cycles, backed by a decade of deleveraging, effective corporate tax cuts to 25 percent, and strong cash flows that have left Nifty-50 non-financials with low net debt and substantial net cash buffers.