India Inc reported better-than-expected earnings for the March quarter of FY26, with the Nifty-50 Index's net income increasing by 6.6%, significantly higher than the anticipated 2.2% growth. The KIE Coverage Universe saw a 14% rise in net income, compared to the predicted 7.3%. However, Kotak Institutional Equities cautioned that the current quarter (1QFY27) may face challenges due to the ongoing conflict in West Asia, which could lead to increased oil prices and supply disruptions. The report indicates that the future performance of corporate earnings will heavily depend on developments in this region. While a quick resolution to the conflict may have limited negative impacts, a prolonged crisis could adversely affect economic growth and company profits. Despite these near-term risks, Kotak remains optimistic about the long-term earnings outlook, predicting a recovery in profits for Nifty-50 companies in the coming years, with expected growth rates of 18% for FY2027 and 14% for FY2028.