Indian companies have kept a positive view for FY27 even amid geopolitical tensions and fluctuating commodity prices. Key sectors including telecom, defence, metals, building materials, power, banking and consumption are seen as main growth areas, according to an ICICI Securities note following its India Investor Conference 2026.
The brokerage reported that corporate leaders expressed confidence in demand trends and capital spending plans. They noted that higher crude oil-linked costs could be offset through efficiency measures and gradual price adjustments.
NSE500 companies recorded about 12 percent profit growth in Q4FY26, supported by wider market performance. Participants raised no major concerns over demand or capex for FY27 linked to the Gulf conflict and stated that crude-related cost increases would be handled through savings and phased pass-through to customers.
Recent economic developments have bolstered confidence, including stronger GDP figures, Reserve Bank of India steps to draw foreign debt inflows, a current account surplus from services exports and remittances, and softer crude prices.
Telecom stands to gain from rapid growth in artificial intelligence infrastructure, with strong demand expected for core connectivity due to expanding data centres. Defence manufacturing should maintain momentum on solid order books and capacity investments.
Power and capital goods remain strong themes, with favourable prospects across generation, transmission and distribution. Newer areas such as data centres and semiconductor plants are also expected to support demand.
Banks anticipate sustained credit growth, with the West Asia situation unlikely to cause significant disruption. FCNR-B inflows are projected to aid deposit expansion.
Consumer sectors show a positive trend, driven by premiumisation and discretionary spending. Firms are addressing raw material cost pressures through operational efficiencies and selective price increases.
Hospitality and real estate are seeing gradual demand improvement in early FY27, aided by rising foreign tourist arrivals, new hotel capacity and steady residential launches.
