New Delhi, June 23 -- The ongoing conflict in West Asia is anticipated to pressure corporate profit margins across sectors in the first half of FY27, though a reversal of this trend is expected in the subsequent half. According to a research report by Nuvama, the exact impact on sectoral earnings will vary based on how companies distribute the oil shock, the competitive intensity within their industries, and shifting demand dynamics.

The report stated that the distribution of the energy shock differs significantly among industries. Certain automobile manufacturers have largely absorbed the higher costs, a move that directly compresses their profit margins.

Conversely, consumer-centric peers, such as paint manufacturers, have passed on t...