Cumulative listed company earnings end seven-quarter growth run

Earnings fall 12% YoY to Rs. 176 b in Sep. 2025, first decline in two years

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CORPORATE earnings declined year-on-year (YoY) in the September 2025 quarter, ending a seven-quarter growth streak, as sharp contractions in food, beverage and tobacco and capital goods outweighed continued strength in banks and diversified financials.

According to earnings compiled by First Capital Research, aggregate profits of 273 listed companies fell 12% YoY to Rs. 176.5 billion in the Sep-25 quarter from Rs. 200.2 billion a year earlier. On a sequential basis, however, earnings rose 14% quarter-on-quarter, indicating that underlying momentum remained intact despite near-term sectoral pressures.

First Capital said banking (Rs. 52 billion, up 39% YoY) and diversified financials (Rs. 39 billion, up 112% YoY) continued to underpin overall earnings resilience, while weakness in food, beverage and tobacco (Rs. 32 billion, down 60% YoY) and capital goods (Rs. 11 billion, down 72% YoY) weighed heavily on aggregate performance.

Three sectors reported losses: Consumer services (Rs. 1.3 billion, down 43% YoY), commercial and professional services (Rs. 97 million, down 56% YoY) and software and services (Rs. 26 million, down 80% YoY).