Dhiraj Relli, managing director and CEO of HDFC Securities, has cautioned that a prolonged military conflict between the United States and Iran could force analysts to cut earnings growth estimates for Indian companies.
The warning comes as global markets grapple with the economic fallout from escalating hostilities in the Middle East.
He specifically noted that earnings growth for fiscal year 2027 is likely to outpace that of FY26, despite the near-term headwinds.
Relli highlighted that sustained geopolitical friction poses a direct threat to corporate profitability, primarily through elevated energy costs and supply chain disruptions.
However, he maintained a constructive outlook on the broader market, arguing that India’s domestic consumption engine and evolving business dynamics provide a buffer against external shocks.
He specifically noted that earnings growth for fiscal year 2027 is likely to outpace that of FY26, despite the near-term headwinds.
The broker’s assessment aligns with a broader shift in market sentiment.