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Informist, Saturday, Aug. 23, 2025

 

By Anand JC

 

NEW DELHI – Financial companies excluding banks, oil and gas companies, and metal and mining companies contributed the most to the Nifty 200 companies' bottom line growth in the June quarter. Overall, 10 sectors out of 21 registered a net profit growth higher than that of Nifty 200 companies on an aggregate basis. The top line growth was a tad more broad-based as 13 sectors' revenues grew faster than the aggregate top line of the wider index.

 

The net profit of these 10 sectors form over 43% of Nifty 200's aggregate bottom line, while their total revenue contributes nearly 61% to the overall index.

 

Eight of the 21 sectors--capital goods, cement, chemicals, jewellery, real estate, retail, services, and telecommunications--surpassed the aggregate Nifty 200 companies in both revenue and profit growth for the quarter under review. 

 

The aggregate net profit of the Nifty 200 companies grew 8% on year for the latest quarter. Adjusted for one-time costs and incomes, the profit growth improved to nearly 10%. Both figures largely align with the Informist poll, which had estimated a 9% growth. The revenue growth of nearly 6% on-year for Nifty 200 companies was much better than expectations of an increase of around 2%.

 

Cement companies fared the best in the reporting quarter, driven by healthy demand in core markets. The aggregate net profit of the four cement firms that are part of the Nifty 200 grew just over 42% for the June quarter, roughly 2?low analyst expectations, but faster than the net profit growth of the index companies. Their net sales grew over 14% on year, roughly 2?ove analyst expectations and again stronger than the sales growth of the index group in Apr-Jun.

 

The June quarter was pretty strong for chemical companies as well. The aggregate bottom line of the seven chemical firms that are part of the Nifty 200 was up 20% on year and strongly outpaced the Nifty 200 companies' profit growth for the June quarter. Adjusted for one-time items, this growth moderated to a still respectable 18%. The top line growth outpaced the index as well, as the chemical companies' revenue grew nearly 10% on year. Chemical companies' bottom line growth exceeded analyst expectations for the sector while the top line growth was largely in line.

 

As a whole, the Nifty 200 companies' aggregate bottom line growth for the quarter under review hit a three-quarter low while sales growth was the weakest in the last seven quarters. Their revenue growth trailed the momentum seen in the previous quarters due to the uncertainty over US tariffs and the early onset of the monsoon, YES Securities said in a note.

 

THE OUTPERFORMERS

Financial services companies, excluding banks, outperformed the Nifty 200 in terms of both top line and bottom line growth. The aggregate net profit of the 29 financial services companies that are part of the Nifty 200 grew 24% on year, which moderates to 20% if one-time costs and incomes are excluded. Analysts had expected these companies' net profit to grow around 22% on year. These companies contribute about 15% of the Nifty 200's total profit. While their revenue growth of around 12% was much lower than analyst expectations of a 20% growth, it was still better than the top line growth of the Nifty 200 companies.

 

While, prima facie, the five telecom companies that are part of the Nifty 200 have tripled their profits collectively, a closer look reveals a more complex picture.

 

The telecom sector's overall growth was skewed by one-time gains posted by Bharti Hexacom Ltd. At first glance, Bharti Hexacom's net profit seems to have fallen 23% on year, but it has actually doubled when the one-time gain from the previous year is excluded. In addition, Vodafone Idea Ltd. reported a loss yet again as the company saw its rivals Bharti Airtel Ltd. and Reliance Industries Ltd.-run Reliance Jio Infocomm Ltd. increasing their subscriber count. Excluding Bharti Hexacom and Vodafone Idea, the telecom sector's aggregate net profit grew 23%. These five companies' revenue grew a little over 20%, in line with analyst expectations for the sector, and better than that of the Nifty 200.

 

Retail companies also outperformed the wider index, and surpassed analyst expectations on both the key metrics. These six companies' aggregate net profit grew over 18% on year. Excluding Aditya Birla Fashion and Retail Ltd., which reported a net loss yet again, the five companies' aggregate net profit grew nearly 14%. Including the Birla group retailer, the sector's revenue grew 17% on year. It is to be noted that this growth was delivered despite weak discretionary spending during the June quarter.

 

Three of the four cement companies that are part of the Nifty 200 registered strong double-digit growth in their net profit for the June quarter. Ambuja Cements Ltd. and UltraTech Cement Ltd.'s net profit grew 23% and 49%, respectively, which moderated to 17% and 43% when adjusted for one-time items. Shree Cement was the best performer in the sector, with a 95% profit growth. The collective top line growth of the cement companies exceeded expectations and grew over 14%, an eight-quarter high.

 

The services sector collectively reported a loss of INR 2.19 billion for the reporting quarter, having reported a profit of INR 4.82 billion in the year-ago quarter. Swiggy Ltd., still a loss-making company, reported a narrower quarterly loss of INR 11.97 billion as spending on its quick-commerce vertical weighed on its earnings. Eternal Ltd. also felt the strain of quick-commerce, with its profit tumbling 90% on-year due to investments in Blinkit.

 

Excluding Eternal and Swiggy, the remaining five services companies collectively showed a 14% net profit growth, which was just under the 15% growth analysts had expected. Despite the fall in profit growth, these seven companies saw a strong revenue increase, with their total top line growing by a remarkable 46%, as Eternal, whose revenue was up 70%, and Swiggy, whose revenue was up 54%, delivered robust growth.

 

The net profit and revenue growth of the six real estate Nifty 200 companies beat the index's aggregate performance and exceeded analyst expectations for the sector. Their net profit grew 11% for the reporting quarter. This was despite the 28?ll in Oberoi Realty Ltd.'s net profit, which was in part due to a 30% on-year fall in its revenue and a cost uptick. Excluding Oberoi Realty, the sector's profit growth improved markedly to 22%.

 

The Nifty 200 metal and mining firms' bottom line grew by a robust 28%, better than the 11% growth that was expected. Adjusted for one-time items, these nine companies' June quarter profit growth moderated to a still high 20% in Apr-Jun. However, this profit figure is heavily influenced by a 64-fold year-on-year increase in the bottom line of Steel Authority of India Ltd. This staggering gain in net profit of SAIL comes after a 61% on-year fall in the June quarter of 2024-25 (Apr-Mar), a 74?ll in June quarter of FY24, and a 79?ll in FY23. Excluding SAIL, the sector's net profit growth moderated to a still-respectable 23%. After adjusting for all one-time items, the sector's growth moderated to 18%.

 

THE UNDERPERFORMERS

Banks, which faced pressure on net interest margin and loan growth fronts, fared rather poorly in the latest quarter, but public sector banks performed better than private sector banks. The 18 banks that are part of the Nifty 200 collectively contributed 25% to the Nifty 200's overall profit, the most among all sectors.

 

The bottom line of the Nifty 200 banks grew 2%, which improved to over 6% when one-time items are excluded. This is mainly because of a 68?ll in the net profit of IndusInd Bank Ltd., a 65% contraction in the net profit of Bandhan Bank Ltd., a 32?ll in the net profit for IDFC First Bank Ltd., and a 49?ll in net profit of Punjab National Bank Ltd. Excluding these, the Nifty 200 banks' net profit growth adjusted for one-time items improved to 13% on year for the June quarter.

 

The 18 Nifty 200 banks' revenue growth was just 2%--one of the weakest growth rates among all Nifty 200 sectors in the latest quarter.

 

The Nifty 200 automobile companies fell victim to poorer-than-expected sales volumes in the June quarter, which weighed on their revenues and profitability. These 12 automakers' aggregate bottom line fell nearly 18% on year. However, correcting the one-time items registered by Bharat Forge Ltd., Escorts Kubota Ltd., and Tata Motors Ltd., the fall moderated to a disappointing 3%. The aggregate top line of these automobile companies grew 3.3%--better than analyst expectations of a 3.7?ll but weaker than sales growth of the Nifty 200 companies.

 

Auto ancillary firms followed the auto-makers as both their revenue and net profit growth were weaker than the aggregate of the Nifty 200 companies and missed analysts' expectations. The aggregate profit of six auto component makers fell over 6%, which worsens to a 9?ll if one-time items are excluded. Their revenue growth of just over 5% was poorer than analyst expectations of a 7% growth.

 

The net profit and revenue growth of power utility players that are part of the Nifty 200 was poorer than the index and below expectations for the sector. These 14 companies collectively reported a 4?ll in profit, which worsened to 9% on the removal of one-time items. Adani Enterprises Ltd., whose net profit was down 50%, Coal India Ltd., whose net profit fell 20%, SJVN Ltd., whose net profit was down 21%, and Torrent Power Ltd., whsoe net profit fell 25%, dragged down the sector's profitability the most. The sector's revenue fell about a percent, mainly due to a 4?ll in the top line of sector heavyweight NTPC Ltd.

 

MIXED PERFORMERS

The Nifty 200 oil and gas companies, which make up 15% of the Nifty 200's total profit, had a good quarter, at least on the profitability front. Their profits grew by a strong 29%, beating that of the overall index, but fell short of the 43% growth analysts had expected. This growth was not uniform across the sector. For example, Hindustan Petroleum Corp. Ltd.'s profit skyrocketed nearly sixfold on year due to lower crude prices. Excluding this Maharatna company, the sector's overall profit growth moderated to 18%. Despite this strong bottom line reading, the total revenue for these 10 firms barely grew by a percent.

 

The information technology sector had a satisfactory June quarter. While 13 IT firms that are part of the Nifty 200 did not outperform the index on either revenue or profitability fronts, they largely met the revenue growth forecasts and just about surpassed expectations for profits. Their aggregate bottom line, which is about 10% of overall Nifty 200 profit, grew just over 6% on year and the top line grew over 5% on year.

 

The Nifty 200 pharmaceutical and healthcare firms' net profit fell 4% on year for the reporting quarter but grew 5% when adjusted for one-time items. Biocon Ltd.'s net profit fell 95% for the June quarter due to a high base. Excluding Biocon, the sector's bottom line growth improved to 1% and further to 11% when adjusted for one-time items. The revenue growth of 10% posted by these companies was better than that of the Nifty 200, but below analyst expectations for the sector.

 

Fast-moving consumer goods companies' revenues beat sector expectations and the Nifty 200 companies' revenue for the June quarter, but their profits fared poorer on both counts. This was due to a 16% growth in the cost of raw materials for these 12 companies. Seven of the 12 Nifty 200 FMCG companies reported a double-digit growth in input price.

 

Their revenue grew 11% on year, higher than expectations of an over 7% increase. However, their profits disappointed, growing by only a paltry percent, which was even less than the already low forecast of 1.1%.

 

Viewed as a whole, the chemical sector's profit growth of 20% appeared to be strong, beating both analyst predictions and the Nifty 200's overall performance. However, excluding two major loss-making companies, Grasim Industries Ltd. and UPL Ltd., the profit growth for the remaining five firms was a more modest 8%. The profit growth reduced post exclusion of the two companies because UPL's loss narrowed to INR 880 million in the June quarter from INR 3.84 billion a year ago. In terms of revenue, the seven chemical companies saw a collective growth in top line by around 10%, which was slightly below expectations but still much better than that of the Nifty 200.

 

The net profit of 20 capital goods companies that are part of the Nifty 200 grew 10% for the June quarter. Excluding loss-making Bharat Heavy Electricals Ltd., their collective bottom line growth improved slightly to over 12% in Apr-Jun. While it is better than the profit growth of the Nifty 200 companies, it's poorer than expectations of a 17% growth for 18 of these companies. Their revenue grew around 14% on year, about a percent lower than expected.

 

The following table is a snapshot of the sector-wise performance of the Nifty 200 companies, sorted in the order of number of companies per sector, during the June quarter as compared with the same quarter last year and with the Informist Poll: 

 

SECTORS	Number of cos	Apr-Jun net sales	Apr-Jun PAT excluding exceptional items		No. of cos for which estimates were available	Apr-Jun sales as per Informist Poll	Apr-Jun PAT as per Informist Poll
		(% change YoY)	(% change YoY)			(% change YoY)	(% change YoY)
NIFTY 200	200	5.64	9.95		182	2.11	10.30
Financial services, ex-banks	29	11.5	19.9		19	19.5	21.6
Capital goods	20	13.9	13.5		18	14.7	17.2
Banks	18	2.0	6.5		17	2.0	3.4
Pharma and healthcare	14	10.1	5.4		14	11.5	4.1
Power	14	(-)1.1	(-)9.3		9	0.4	(-)7.8
Information technology	13	5.2	6.5		13	5.6	5.3
Automobile	12	3.3	(-)2.6		12	(-)3.7	(-)13.2
FMCG	12	10.6	2.1		12	7.5	1.1
Oil and gas	10	0.9	28.8		9	(-)6.7	42.5
Metal and mining	9	4.2	20.4		9	1.2	11.0
Chemicals	7	9.5	17.7		7	10.9	4.0
Real estate	6	19.4	11.2		6	17.9	6.7
Retail	6	16.6	18.4		6	18.1	20.9
Services*	6	45.9	--		6	42.1	(-)80.6
Auto-ancillary	6	5.2	(-)9.2		6	7.1	1.6
Telecommunications*	5	20.1	--		5	20.1	--
Cement	4	14.4	38.1		4	12.8	44.0
Consumer durables	3	28.4	(-)18.4		3	29.3	(-)4.0
Jewellery	2	24.2	36.5		2	21.9	21.6
Others	4	11.3	(-)9.4		4	10.9	(-)9.4

* Absolute number of profit has been given for telecommunication and services instead of a percentage change because the sectors have reported a net profit from a net loss in the year-ago quarter.

 

Note: Analyst estimates for each index group are derived from estimates for companies that are part of the respective sub-sectors classified by Informist.

 

End

 

Data compiled by Vinod Bhovad

Edited by Tanima Banerjee

 

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