As stock market volatility and geopolitical tensions keep investors on edge, India Inc.’s March-quarter (Q4FY25) earnings are emerging as a relative bright spot. But while analysts say results have largely met expectations, sentiment remains cautious—partly because expectations were already low after two consecutive underwhelming quarters.
But a Mint analysis of 171 profitable listed companies reveals that around 52% and 56% of them have reported “impressive” revenue and net profit growths respectively, on a year-on-year basis. That suggests more than half the firms expanded their top and bottom lines meaningfully, even if headline growth remains subdued.
This trend underscores a broader pattern: many companies are shoring up profits through cost control and lower input prices, even in the absence of robust revenue gains.
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Of 228 companies that have declared Q4 results so far, standalone analysis of 171 shows telling patterns. About 23% saw a contraction in revenue (“poor”), while 25% posted “tepid” growth (0–10%). In contrast, 20% reported “good” growth (10–20%), and 32% delivered “strong” growth (over 20%).
The bottom line paints a different picture: 37% reported “poor” profit growth, 8% fell in the “tepid” category, 12% were “good,” and a substantial 44% delivered “strong” year-on-year profit gains.
Banks lead, IT lags
Among the sample of the companies that have disclosed their Q4 results, banking, financial services and insurance (BFSI) firms dominate, followed by IT companies. Others include consumer discretionary firms, stockbrokers, healthcare, metals, capital goods, and power companies.
Among sectors, BFSI leads the charge on “impressive” earnings growth, with 60% of companies reporting “good” or “strong” revenue growth, and 66% posting similarly strong profit growth in Q4. Given they account for a third of the sample, BFSI firms also contribute heavily to the “muted” end of the spectrum.
Similarly, IT companies, which form around 12% of the sample, have also reported divergent earnings. While 52% of IT companies have reported “muted” revenue growth over last year, 62% saw “impressive” growth in their profits during the same period.
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For broader analysis, “solid” and “good” metrics are grouped under “impressive” growth, while “tepid” and “poor” are classified as “muted.”
Among the top performing BFSI companies, housing finance companies like Bajaj Housing Finance and PNB Housing Finance and major non-banking finance companies (NBFCs) have reported “impressive” earnings growth, supported by a falling interest rate regime which reduced their borrowing costs.
Asset management companies like Jio Financials and HDFC AMC also stood out along with public sector banks like UCO Bank and Bank of Maharashtra.
ICICI Bank was the only large private lender to report a “good” quarter, with revenue rising 14% and profit up 18% year-on-year.
Most consumer discretionary companies—primarily hotels, select consumer durables, and two-wheeler makers like TVS Motor—delivered consistent “impressive” growth in both revenue and profit. Laboratories and diagnostics firms followed a similar trajectory, pointing to a rebound in discretionary spending in Q4, especially when compared to consumer staples, which remained stuck in the “muted” zone.
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At the other end of the spectrum, stockbroking firms were the weakest performers, with every listed player reporting “poor” revenue and profit growth. Experts attribute this to a sharp drop in trading volumes—both in cash and derivatives—following a set of six measures introduced by the Securities and Exchange Board of India to curb speculative activity in the futures and options (F&O) segment. Volatile global cues added to the pressure, dragging volumes down by over 30%.
This is the third part of a series of data stories about the ongoing earnings season. Read the first and second part here.
