Q4FY24 Results Review: While the March season (Q4FY25) earnings season did not make a strong positive surprise, it also did not disappoint. The majority of experts found the results healthy, broadly in line with expectations, and in some sectors, even better than estimated. According to one of the top domestic brokerage firms, Motilal Oswal Financial Services, the Q4FY25 corporate earnings ended on a strong note, with a widespread achievement over aggregates. Motilal observed that healthy performance is led by metals, OMCs (oil marketing companies), PSU banks, cars, healthcare, technology and capital goods. On the OTEHR hand, oil and gas (excluding OMCs) and private banks dragged the total profitability. The Nifty’s profit after tax (PAT) grew by a year-on-year (Yoy) with a year-on-year (yoy) against Motilal’s +2 percent estimates. Motilal emphasized that the Nifty reported a single-digit profit growth for the fourth consecutive quarter since the pandemic (June 2020). “Five Nifty Companies – Bharti Airtel, Hindalco, ICICI Bank, Tata Motors and HDFC Bank – contributed 137 percent of the incremental yoya commercial in earnings. Conversion. “Nifty’s earnings per share (EPS) for FY25 ended on a high basis of FY24 (+24 percent Yoy) at £ 1,013 (+1 percent), as earnings normalized and detected the revenue trend,” the brokerage firm said. Motilal underlines that the Nifty EPS estimate for FY26 was cut by 1.9 percent to £ 1.135, largely due to SBI, Ongc, Indusind Bank, Tata Motors and TCs. FY27E EPS was also reduced by 1.1 percent to £ 1,314 (from £ 1.328) due to downgrades in SBI, Ongc, Indusind Bank, TCS and Reliance Industries. The best earnings upgrades in FY26E According to Motilal, Bharat Electronics (BEL) (7.1 percent), Bharti Airtel (6.6 percent), Hindalco (5.8 percent), Adani ports (4.6 percent), and M&M (4.4 percent) are top upgrades. The top earnings downgrades in FY26E Eternal (-53.9 percent), Indusind Bank (-45.6 percent), Ongc (-13.4 percent), Tata Motors (-11.6 percent) and JSW steel (-8.5 percent) are the top downgrades, Motilal says. “The Q4FY25 earnings performed better than expectations. However, the revisions of advance earnings still have weakness, with downgrades that exceed upgrades,” Motilal said. Q4FY25 Earnings: Sectoral Snapshot banks According to Motilal, the banking sector was a mixed quarter. There was a divergence in the margin result between the private and public banks. “Most of the major private banks have a successive improvement in the net interest margins (NIMs) amid lower-day adjustments in the third quarter, while public banks still see a moderation in NIMs, although calibrated with low single digits,” says Motilal. It is believed that the background for the IT sector remains challenging, as macro uncertainty still weighs on request, which marks a softer exit to FY25. “FY26 setups differ on Tier-1 enterprises: TCS and Wipro led for poor Q1; Infosys hits a cautiously optimistic tone with the top of its guidance (3 percent yoy organic constant currency growth) assuming that a stable to improve the 2-5 percent environment. Universe a higher growth of 8 percent year, Motilal said. However, Energy & Mobility and Samvardhana Motherson International was one of the most important missions from the sector. Gamble Hygiene & Health Care The underachiever was. OMCs, were in accordance with estimates (flat yoy). This growth was mainly led by the resumption of construction activity and the mitigation of imports, along with a low base effect, Motilal said. Certified experts are watching before making investment decisions, as market conditions can change quickly, and conditions can vary.
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