Nifty 50 earnings likely contracted in Q4

The January-March 2025 quarter (Q4FY25) is expected to show a decline in the combined net profits of Nifty 50 companies, according to brokerages.

- Krishna Kant

Various estimates say the fall is anticipated at 1.9 per cent year-on-year (Y-o-Y), the first such contraction for the index companies since the September 2022 quarter, when their combined earnings were down 6 per cent.

For comparison, the index companies' combined net profits were up 18.1 per cent Y-o-Y in Q4FY24 and had increased 4.9 per cent Y-o-Y in Q3FY25.

The contraction is likely to have been caused by a margin compression for banks and manufacturers and a further slowdown in revenue growth.

The 50 companies combined net sales (net interest income in the case of bank and non-bank lenders) are expected to have grown 5.6 per cent Y-o-Y, increasing at the slowest pace in at least 14 quarters.

Their combined net sales were up 8.9 per cent Y-o-Y in Q4FY24 and they increased 6.3 per cent Y-o-Y in Q3FY25.

The analysis is based on quarterly revenue and earnings estimates of the Nifty 50 companies for Q4FY25.