Jefferies says India Q3 corporate earnings “better than feared” Q3 IT results were mostly in-line but outlook has substantially improved on rising discretionary demand in the U.S. Given that the corporate earnings delivery in H1FY25 has been muted, the consensus earnings growth estimates for FY25 now stands in mid - single digits, while expectations remain of mid-teens earnings growth in FY26. This deceleration in earnings in FY25 can be attributed to the slowdown in consumption (especially urban consumption), near term deceleration in government capex, and credit growth easing from 16-17% to ~11-12% at present. From here on, the trajectory of earnings growth in FY26 would depend to a great extent on the revival of demand and resumption of government spending. In that context, the key driver for earnings in FY26 would have to be topline growth as most of the margin levers has been largely exhausted.