Trump’s rhetoric on tariffs may ripples in global markets amid geopolitical uncertainty, but Indian companies managed to produce the usual surprises in the fourth quarter revenue season. Repeated narratives of business turnover – a delicate balance between “happy landing” and “unpleasant landing point” – this turn.
In a staggering profit reversal, the last quarter of the fiscal year 2024-25 showed a surge in companies from falling profitability to losses. one Mint An analysis of 184 BSE listed companies shows that more than 9% of companies experienced a profit reversal, shifting from positive earnings in the previous quarter to losses in the March quarter, marking the most important negative sequential earnings transfer in the fiscal year.
Please read also: Fourth Quarter Earnings Live Tracker: Latest Information on the Largest Companies of India
A detailed analysis of independent financial data from the Capitaline database reveals that this negative trajectory is in stark contrast to the previous quarter’s performance. In the December quarter, only 2.2% of companies reported a return on earnings, 1.6% in the September quarter, while in the June quarter, the earnings reversal.
Among companies reporting negative profit reversals, this alarming shift (from 6% in June to 9% in March) suggests that the disturbing escalation goes beyond temporary setbacks and vulnerabilities, which could worsen as macroeconomic snobbery and geopolitical tensions create a perfect storm for corporate finance.
Please read also: What will analysts miss when pursuing guidance
At the same time, a positive income shift occurred, but was getting further and further away, falling to 4.3% in the March quarter, from 7.1% during the December period to 4.3%. However, the June quarter showed that less than 1% of companies witnessed positive profits.
Among those who witnessed positive turnaround, Kesoram Industries stood out, with the highest profit in the March quarter due to net losses in the previous quarter.
In the absolute figure, 17 companies lost losses, compared with only four companies in the December quarter, three in the September quarter, and 11 in the June quarter.
Among the most intensely affected companies, five companies – Tejas Networks, Motilal Oswal Financial Services, Network18 Media, Rallis India and Nelco – report that massive losses exceed ₹The March quarter was 100 million. The financial losses of these companies account for 30% of the total sample losses (all these 17 companies with negative profit turnover reported).
Media group Network18 experienced a particularly dramatic financial deterioration, causing huge losses in the March quarter after recording about about approximately a significant profit ₹The previous quarter was 34.32 million. Similarly, Tata Group’s Tejas network sees its quarterly profit drop ₹1.65 million ₹620 million losses between the two quarters.
The market responded quickly and severely. Tejas Networks shares were more than 15% on Monday after its latest earnings announcement, highlighting investors’ concerns about this broader profit downturn.
This is the second part of a series of data stories about the ongoing income season. Read Part 1 here.
