New Delhi, April 7 -- Corporate earnings, which had shown signs of recovery in recent quarters, are now on the cusp of a shift, as brokerages flag that rising crude and gas prices amid geopolitical tensions may trigger a fresh cycle of earnings downgrades.

Brent crude oil prices have risen over 60% since the start of the West Asia conflict on 28 February, while the closure of the Strait of Hormuz has effectively disrupted gas inflows to India. The impact is already being felt across a majority of sectors, from paints, aviation, and FMCG to QSR, with analysts warning that it could compress margins in the near term.

Stock markets were among the first to react to the geopolitical tensions and were heavily impacted in March, as the 11.3% de...