New Delhi, June 30 -- India Inc has started FY26 on stronger footing, with April-June performance expected to outpace the same quarter last year. Analysts attribute this to a favourable base, continuing recovery in rural demand, and a timely monsoon-but warn that the improvement may not translate into broad-based earnings momentum just yet.

Domestic demand-driven sectors are expected to carry much of the weight in a quarter marred by external shocks, including US tariff threats, geopolitical tensions in West Asia, and heightened cross-border strain following the 22 April Pahalgam terror attack and India's subsequent Operation Sindoor in May, which targeted terrorist camps in Pakistan and Pakistan-occupied Kashmir.

"Rate sensitive sector...