India Inc Q4 earnings beat estimates, but growth slows

Corporate earnings for the January-March 2025 quarter (Q4FY25) surpassed Street expectations, led by Bharti Airtel, Indian Oil Corporation (IOC), and base metal producers Hindalco and Vedanta, as well as leading private-sector lender ICICI Bank.

- Krishna Kant

The combined net profit (adjusted for exceptional gains and losses) of 1,555 companies (excluding their listed subsidiaries) grew 6.6 per cent year-on-year (Y-o-Y) in Q4FY25, well above most brokerage estimates. In their earnings previews, various brokerages had projected Y-o-Y growth of -5 per cent to 1 per cent for companies in their coverage universe.

However, despite exceeding expectations, the pace of earnings growth remained similar to the previous quarter (Q3FY25) and marked a slowdown from the double-digit rise in Q4. For comparison, the sample's combined net profit grew 10.8 per cent Y-o-Y in Q4FY24 and by 6.5 per cent Y-o-Y in Q3FY25. In absolute terms, the combined adjusted net profit grew to a new high of 3.6 trillion in Q4, up from 3.39 trillion a year ago and ₹3.23 trillion in Q3FY25.

Telecom major Bharti Airtel emerged as the single largest contributor to incremental earnings growth, accounting for nearly a third (32.5 per cent) of the total increase in corporate profits. This was followed by Indian Oil Corporation (13.3 per cent) and Hindalco (9.4 per cent).

Together, the top five contributors accounted for 73 per cent of the total Y-o-Y growth in corporate earnings during the quarter.

Bharti Airtel's consolidated net profit surged 185.7 per cent Y-o-Y in Q4FY25. Similarly, net profits of Indian Oil and Hindalco increased 57.8 per cent and 66.3 per cent Y-o-Y, respectively.