Indian companies’ profit puzzle: When global turmoil meets economic theory

Indian companies began 2025 on a great note. Inflation was falling, the economy was growing at 6.5-7%, and the rate-cutting cycle had started. But cut to the April-June quarter, and it is an entirely different story. Crisis after crisis has erupted, starting with US President Donald Trump's tariffs in April, followed by tighter US visa and immigration norms, the India-Pakistan conflict in May, and the Israel-Iran face-off in June. The result? Uncertainty that brings with it downside risks to economic growth and, by extension, corporate profitability. So, what's the link between corporate profits and the economy anyway? Let's find out…