The Q2 earnings season has highlighted concerns in the Indian economy, with 44% of companies missing profit estimates, as reported by JM Financial.
Of the 157 companies analyzed, 69 fell short of expectations, while 65 exceeded them, and 23 met forecasts. Key sectors, including chemicals, FMCG, retail, and auto, are facing slowed urban demand, impacting revenue growth for 27% of companies. Financial sectors are also under pressure, as microfinance and private banks see increased risks in unsecured lending. Rising credit costs signal challenges for these sectors moving forward.