CFO Survey: Financial Optimism Dips in Q1 2025

Financial optimism among Chief Financial Officers (CFOs) in India has dipped by 0.8% in the first quarter of 2025, according to a recent survey conducted by Dun & Bradstreet India. The survey analyzed CFOs’ confidence in various financial parameters and found a decrease in optimism compared to the previous quarter.

The Dun & Bradstreet India Composite CFO Optimism Index, which tracks CFO sentiment on 12 key parameters, revealed a marginal decrease in overall optimism for financial performance in Q1 2025. Specifically, optimism in the industrial sector saw a decline of 7.1% quarter-on-quarter.

One of the reasons for the decrease in optimism is the uncertainty surrounding the global economic recovery, leading to a decline in the macro-economic sub-index for the services sector. CFOs expressed concerns about global policy issues, particularly in trade, which impacted their outlook on the global macro-economic scenario.

Despite the challenges, CFOs are optimistic about benefiting from domestic rate cuts, leading to a delay in the need for long-term funds. However, there was an increase in optimism for short-term funds requirements in Q1 2025.

Key findings from the survey include a Composite CFO Optimism Index of 134.3 for Q1 2025, a decrease of 0.8% in overall financial performance optimism, and a 35.8% increase in optimism for the overall macro-economic scenario. Additionally, optimism for company operating margins decreased by 8% quarter-on-quarter.

Dr. Arun Singh, Global Chief Economist at Dun & Bradstreet, commented on the survey findings, noting a stable yet cautious outlook among CFOs. He highlighted the impact of global trade policies and protectionism on macro-economic optimism, as well as the reduced risk appetite and operating margin optimism in the services sector.

The Dun & Bradstreet India Composite CFO Optimism Index, which has been tracking CFO sentiment since 2012, serves as a leading indicator of the Indian financial market. The survey sample includes companies from various sectors, and CFOs are asked to provide their expectations on financial performance and macroeconomic scenarios for the upcoming quarter.

Dun & Bradstreet, a global provider of business decisioning data and analytics, helps companies improve their performance by delivering insights that accelerate revenue, lower costs, and mitigate risks. The company’s India operations focus on supporting the government’s vision of creating a self-reliant India through data-driven products and technology-driven platforms.

Overall, the survey reflects a cautious approach among CFOs in India towards growth and risk management in the current economic climate. Despite the challenges, CFOs remain optimistic about the potential for recovery and growth in the future.
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