New Delhi, Nov. 25 -- After a difficult earnings season, Jefferies believes the worst of the downgrade cycle is now behind India Inc. The brokerage said corporate results have likely moved past their weakest phase, projecting 10% earnings growth in H2FY26 and a stronger 16% rise in FY27 as sectoral disruptions fade.

Jefferies noted that the first half of FY26 was weighed down by erratic weather, muted power demand, slower construction activity and delayed consumption, but these pressures are easing. Downgrades in financials have stabilised, while cuts in IT and energy appear largely complete.

The report highlighted that India Inc. has been navigating an unusual mix of challenges - a cooler summer, heavy monsoons that hit power and const...