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Informist, Thursday, Aug. 21, 2025

 

By Anjana Therese Antony

 

MUMBAI – The June quarter earnings season was 'sombre' but 'resilient', with India's top 200 listed companies seeing a slightly higher-than-expected growth compared with the year-ago quarter. While growth in these companies' aggregate bottom line was the fastest in five quarters, the rise in their top line continued to lag and was the slowest in seven quarters as there was no major pickup in demand and  government capital expenditure was lower-than-expected. For 2025-26 (Apr-Mar), the outlook remains uncertain amid weak household income, fall in corporate capital expenditure, the government's fiscal consolidation, and the impending 50% US tariff, research analysts said. 

 

The cumulative adjusted net profit of the top 200 companies rose 9.4% on year, largely the same as expected, according to an Informist analysis. Including one-time gains and losses, the bottom line rose 7.4% on year, which was sharply slower than the near 15% growth in the trailing quarter, but better than the almost 6% growth posted in the year-ago quarter. 

 

The aggregate revenue of these firms rose 5.6% from the year-ago period, much faster than the 2% rise anticipated for the quarter but it was still the third-slowest on-year growth in at least 17 quarters. "Factors such as tariff uncertainty and early monsoon contributed to a subdued Q1 (for Nifty 200 companies). Ongoing trade uncertainty and signs of moderating economic activity are expected to result in a subdued performance for Q2," YES Securities Institutional Equities said in its earnings review report. 

 

The sequential picture, too, was not as good compared with the previous few quarters. Both the aggregate adjusted bottom line and the top line fell for the first time in three quarters, with the net profit falling almost 9% and the revenue falling nearly 5%. 

 

The Nifty Micap 100 companies--which comprise the bottom 100 constituents of the Nifty 200 index--posted a stronger revenue growth of over 7% on year for the June quarter as compared to the Nifty 100, much better than the mere 2% rise expected, but the slowest in seven quarters as input costs rose at a higher pace. The 14% on-year growth in profit was slightly lower than the 16% anticipated and also was the slowest in three quarters. Motilal Oswal Financial Services said multiple mid-cap sectors clocked impressive growth, with 17 out of the 22 sectors under its coverage delivering a double-digit growth in bottom line for the reporting quarter. 

 

For the top 100 companies in the Nifty 200 index, the aggregate revenue growth of over 5% was higher than the 2% rise projected for these companies. Profit for the latest quarter rose almost 9%, in line with expectation. 

 

The top 50 players constituting the Nifty 50 index saw their aggregate bottom line jumping over 8% on year compared with a slight decline in the previous quarter. Their cumulative on-year revenue growth of almost 6% was the slowest in three quarters and marked the ninth straight quarter of single digit growth in this metric.

 

SECTORAL TRENDS

Out of the eight broader sectors Informist has analysed, four beat the Street's growth expectations for both the top line and the bottom line. These sectors are basic industries, consumer, financial services, and transport. On other hand, two sectors--telecom, media, and technology, and pharmaceuticals and chemicals--failed to meet expectations for both revenue and profit. The remaining two--energy and services--failed to meet the net profit expectation, but beat revenue growth estimates. 

 

Energy companies together have the highest weightage in the Nifty 200 in terms of revenue, accounting for more than a third of the aggregate top line. The next biggest is the financial services sector whose aggregate revenue constitutes 19% of the top line of all the 200 companies, followed by basic industries which accounts for 16%, and then transport that has a 12% weightage. Telecom, media, and information technology together account for 10% of the overall revenue in the Nifty 200 universe, consumer has a 5% weightage, pharmaceutical and chemicals together constitutes 4%, and services has the least contribution of just 2% to the revenue of the Nifty 200. 

 

Among the sectoral outperformers, the 17 consumer goods companies of the Nifty 200 posted almost 16% growth in their revenue and beat the 13% growth expectation. Even though the sector posted a muted bottom line growth, the 3% rise was better than the 2% the Street had projected. The sector comprises fast-moving consumer goods, consumer durables, beverages, jewellery, and cigarette players. The latest earnings season marked a broad-based revenue resurgence for the sector, with several companies delivering multi-year high top lines, Nuvama Institutional Equities said in its review report. Various broking firms said urban demand is showing early signs of revival and rural demand continues to recover gradually. They also said the first half of FY26 will be better than the second half of FY25. 

 

The 40 basic industries companies--real estate, engineering, cement, infrastructure, defence, and metal--together reported almost 8% growth in their revenue, higher than the 6% rise analysts had expected for the sector. Their total net profit growth of almost 19% also beat the expectation of a near 17% increase. Order inflow improved for most construction companies and the government's spending supported cement companies' growth, brokerages said in their reports. For real estate companies, brokerages said pre-sales grew in strong double digits from the year-ago period due to robust increase in launches. They also said launch pipelines remain strong for the current financial year and will help sustain the bokkings momentum going forward. 

 

The financial sector--which comprises 18 banks and 29 non-banking financial services companies--saw better earnings supported by growth in loans and deposits. Some broking houses said the pressure in banks' net interest margins is expected to bottom out in the first half of FY26. The 47 financial companies of the Nifty 200 saw their aggregate top line growing at a higher-than-expected pace of almost 8% on year and the bottom line growth of near 11?at the expectation of a 6% rise. "...overall trends are still not yet showing any signs of stress (for banks). Improvement in the MFI (microfinance) portfolio is largely tracking trends, with slippages likely to decline from 3QFY26 (Oct-Dec) quite sharply," Kotak Institutional Equities said in its report. 

 

Transport companies altogether reported better-than-expected but tepid growth for the reporting quarter. Original equipment manufacturers saw weak operating performance due to muted consumer demand and tyre players' performance was hit due to higher rubber prices. The luxury vehicle segment remained under pressure amid the uncertainty over US tariffs and the ultra-luxury tax in China, analysts said. 

 

The 21 auto companies of the Nifty 200 together posted a 4% growth in their top line, better than the near 1?cline anticipated. Their cumulative net profit decline of 5% was better than the 11?ll anticipated.

 

The weak performance by the sector giant Tata Motors, which accounts for a third of the sector's aggregate top line, primarily capped the sector's growth. The company had reported a fall in sales volume across all business segments and profitability from its major Jaguar Land Rover division dropped due to US tariffs. Excluding Tata Motors, the sector's bottom line was up 1% on year and the top line was up almost 8%. 

 

 

Among the sectors that showed mixed trends in earnings, the heavyweight energy space--comprising oil, gas, coal, and utility players--together reported a 0.5% growth in revenue for the reporting quarter, way better than the near 6?cline the market had expected. However, they failed to meet the 23% growth expected in their bottom line and posted just a 11% rise on year. Oil and gas contributes to 81% of the energy sector's overall revenue. 

 

Strong fuel retail margins, improvement in oil-to-chemicals giant Reliance Industries' consumer segments drove the on-year operational improvement for the sector even as refining margins fell due to high inventory losses seen by oil marketing companies, ICICI Securities said in its report. Upstream oil companies delivered broadly in-line volume growth for the June quarter, but lower crude realisations dragged their results, it said. "We remain positive structurally, but note that near-term headwinds on pricing, regulations, and margins may keep stocks rangebound in the near term," it said. 

 

A similar mixed trend was also seen for the services space. The 12 Nifty 200 companies engaged in the business of retail, quick commerce, tourism, and hospitality reported an aggregate revenue growth of 26.2%, which was largely in line with the 25.9% growth expected, but their bottom line fell 28%, which was sharper than the 8?ll the Street had anticipated. 

 

The following is a snapshot of the companies in the Nifty 50, the Nifty next 50, the Nifty 100, the Nifty Midcap 100, and the Nifty 200 for the June quarter, along with year-on-year and sequential changes juxtaposed with the consensus estimates from the Informist Poll of 23 brokerages:

 

Indices	Revenue	Other Income	Total Income	Total Expenses	Material Cost	Employee Expenses	Depreciation	Finance Costs	Other Expenses	PAT	Adj. PAT
NIFTY 50	POLL: 3.69%									POLL: 5.89%	POLL: 5.89%
YoY	5.90	40.25	7.51	6.56	3.81	6.62	7.48	9.34	10.00	2.83	8.03
QoQ	-4.94	3.78	-1.92	-3.12	-3.01	1.41	-0.03	1.01	-7.14	-12.31	-4.54
NIFTY NEXT 50	POLL: -1.15%									POLL: 17.95%	POLL: 17.95%
YoY	4.25	34.28	5.45	3.03	-1.52	8.13	13.07	11.81	9.98	15.04	9.91
QoQ	-5.35	1.60	-1.77	-0.54	-6.13	0.55	-1.72	1.75	0.06	-11.00	-15.57
NIFTY 100	POLL: 2.04%									POLL: 8.69%	POLL: 8.69%
YoY	5.28	38.82	6.72	5.28	1.61	6.93	8.80	10.11	9.99	6.14	8.57
QoQ	-5.09	3.27	-1.86	-2.22	-4.28	1.23	-0.45	1.25	-5.39	-11.93	-8.01
NIFTY MIDCAP 100	POLL: 2.09%									POLL: 16.27%	POLL: 16.27%
YoY	7.21	12.25	7.72	6.86	9.78	13.42	9.76	11.16	14.53	15.32	14.20
QoQ	-3.16	-13.70	-3.18	-3.10	-5.06	3.46	-0.42	1.08	-4.09	-10.15	-11.30
NIFTY 200	POLL: 2.05%									POLL: 9.81%	POLL: 9.81%
YoY	5.64	33.11	6.90	5.59	3.19	7.96	8.99	10.35	10.85	7.43	9.38
QoQ	-4.73	-0.28	-2.11	-2.40	-4.45	1.60	-0.44	1.21	-5.14	-11.66	-8.52

 

 

The following table shows the net profit margin of companies in the various indices as well as their net profit margin excluding exceptional items:

Profit Margin	Jun-25	Jun-25 (Adj)	Mar-25	Mar-24 (Adj)	Jun-24	Jun-24 (Adj)
Nifty 50	14.10%	14.18%	15.28%	14.12%	14.52%	13.90%
Nifty Next 50	9.85%	9.68%	10.48%	10.85%	8.93%	9.18%
Nifty 100	12.51%	12.50%	13.48%	12.90%	12.41%	12.12%
Nifty Midcap 100	9.41%	9.33%	10.14%	10.18%	8.75%	8.76%
Nifty 200	11.92%	11.89%	12.85%	12.39%	11.72%	11.49%

 

End

 

Data Compiled by Vinod Bhovad

Edited by Akul Nishant Akhoury

 

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