As stock market volatility and geopolitical tensions put investors on the edge, Indian companies’ revenue in the March quarter (Q4FY25) is becoming a relatively bright spot. But while analysts say the results met expectations in large part, sentiment remains cautious – partly because expectations are already low after two consecutive deficiencies.
but Mint An analysis of 171 profitable companies showed that about 52% and 56% of companies reported “impressive” revenue and net profit growth, respectively, year-on-year. This shows that even though the growth of headlines remains soft, more than half of the company is meaningfully expanding the top and bottom lines.
This trend emphasizes a broader model: even in the absence of strong revenue growth, many companies support profits through cost control and lower input prices.
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So far, an independent analysis of 171 companies showing a narration pattern among the 228 companies that announced fourth-quarter results. About 23% of revenues (“bad”), while 25% of revenues account for the growth of “Tepid” (0-10%). By comparison, 20% reported “good” growth (10-20%), while 32% (over 20%).
The bottom line paints a different picture: 37% report “poor” profit growth, with 8% of them falling into the “moderate” category, with 12% profit being “good”, and 44% of the massive paying “strong” year-on-year profit growth.
Bank leader, it lags
Among the sample companies that disclosed their fourth-quarter results, banking, financial services and insurance (BFSI) companies dominated, followed by IT companies. Others include consumer discretion companies, stockbrokers, healthcare, metals, capital goods and power companies.
In the industry, BFSI leads “impressive” earnings growth, with 60% of companies reporting “good” or “strong” revenue growth, while 66% of companies reported similar earnings growth in the fourth quarter. Given that they account for one-third of the sample, BFSI has also made a huge contribution to the “silent” side of the spectrum.
Similarly, IT companies that make up about 12% of the sample also reported different returns. While 52% of IT companies reported revenue growth from “silence” last year, profits rose by 62% over the same period.
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For a broader analysis, the “solid” and “good” indicators were grouped into “impressive” growth, while the “moderate” and “poor” were classified as “silent.”
Among the best performing BFSI companies, Housing Finance (Bajaj Housing Finance and PNB Housing Finance and Major Non-Bank Financing Companies (NBFC) reported a drop in interest rates that reduced borrowing costs and supported “impressive” earnings growth.
Asset management companies such as Jio Financials and HDFC AMC also stood out alongside public sector banks such as UCO Bank and Maharashtra Bank.
ICICI Bank is the only large private lender to report a “good” quarter, with revenues up 14% and 18% year-on-year.
Most consumer discretion companies (mainly hotels, selected consumer durables, and two-wheeler manufacturers like TVS Motor) consistently saw “impressive” growth in revenue and profits. Laboratories and diagnostic companies follow a similar trajectory, which suggests a rebound in disposable spending in the fourth quarter, especially when those spending is still stuck in the “silent” area compared to consumer staples.
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On the other side, stock brokerage firms are the weakest performing companies, with each listed participant reporting “poor” revenue and profit growth. Experts attribute it to a sharp drop in trading volumes, including cash and derivatives, to curb speculation in the futures and options (F&O) sector with six measures introduced by the Securities and Exchange Commission of India. Volatile global tips increased pressure, causing volume to drop by more than 30%.
This is the third part of a series of data stories about the ongoing earnings season. read The first and Part Two here.
