Rupee, price tailwinds for Indian exporters may fade in H2FY27: Nuvama
Indian exporters may see revenue tailwinds from rupee depreciation fade soon. Elevated prices and currency depreciation supported export growth in the first quarter. These supportive factors are expected to diminish in the second half of FY27. The information technology sector's earnings accelerated due to the weaker rupee. Currency movements remain a significant risk for companies with overseas…
Indian exporters may see a slowdown in revenue benefits from a weaker rupee and higher prices, according to Nuvama Institutional Equities. These factors drove export-sector growth during the first quarter of FY27, according to the brokerage's report. The rupee depreciated and prices rose due to supply disruptions, helping export-oriented sectors post strong revenue growth.
Nuvama said IT companies, in particular, saw an earnings acceleration due to the favorable currency movement. However, as these tailwinds begin to fade in the second half of FY27, exporters will face a broader risk. Factors like rupee depreciation, GST cuts, low base effects, and higher metal prices could also start to diminish their positive impact on corporate revenues.
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