Capital Goods Stocks Outlook
Stock-specific reaction likely on Q2 earnings
This story was originally published at 22:13 IST on 31 October 2025
Register to read our real-time news.Informist, Friday, Oct. 31, 2025
MUMBAI – The capital goods sector is likely to witness stock-specific action next week with several major companies scheduled to report their September quarter earnings. Analysts are concerned that order inflows may slow down in upcoming quarters with demand from the government expected to come down even as demand from private players is yet to pick up.
Among major companies, ABB India is scheduled to report its earnings growth Thursday. The company earns significant revenue from private companies and its earnings will help to assess demand from the private sector. ABB India is expected to report a 9% fall in net profit for the quarter to INR 4.01 billion, according to an average of estimates by nine brokerages. The company's margins are likely to have taken a hit as competition increased during the quarter with demand slowing down.
Among others, Suzlon Energy will report its results Tuesday. Astral and Tube Investments of India are scheduled to announce their earnings Wednesday.
This week, Larsen & Toubro's stronger-than-expected deal wins in the September quarter gave the market hope. However, analysts were mixed as execution was disappointing, which is likely to be the problem across the sector.
Given the issues, there is a risk of investors shifting to consumption-dependent stocks from stocks that are driven by capital expenditure. There is also the risk of slower capital expenditure as the government needs to offset the impact of lower revenue due to some of its measures, including the cut in goods and services tax and the cut in income tax.
Government spending has increased significantly this year, but the rise is on last year's low base, when elections had hit government spending. Growth in government capex slowed to nearly 31% on year in Jul-Sept from a 52% rise in Apr-Jun. During the six months ended Sept. 30, the government's capital expenditure was INR 5.81 billion, up 40% on year.
TOP HEADLINES
* Kalpataru Projects Jul-Sept net profit surges over 51% YoY to INR 2 billion
* L&T partners with US co to indigenously manufacture drones for Armed Forces
* Carborundum Universal Jul-Sept consol PAT falls 35.7% YoY to INR 745.1 mln
* BEML gets orders worth INR 3.5 bln from Dredging Corp
* Cemindia Projects' Jul-Sept consol PAT rises 49.4% on yr to INR 1.08 billion
* Ashoka Buildcon arm gets nod for resolution plan for Shree Sainath Land
* Netherlands-based TenneT nominates L&T for offshore wind program
* Analyst Concall: Hyderabad Metro posts INR-1.8-bln loss Q2, says L&T mgmt
* BHEL order book at INR 2.2 tln on Sept 30; gets orders of INR 350 bln in H1
* Earnings Review: L&T Q2 sales, PAT growth steady, but below Street view
* Samvardhana Motherson board OKs acquiring Australian Rubbertec Group
* Need to see if initial signs of pickup in pvt capex becomes trend, says L&T
* Texmaco Rail gets over INR 446-mln order Maharashtra Metro Rail Corp
* Samvardhana Motherson appoints Gandharv Tongia as CFO from Nov 15
* Earnings Review: BHEL Q2 PAT quadruples YoY, sales growth fastest in 3 qtrs
* V-Guard Industries' Jul-Sept net profit rises over 26% YoY to INR 659.7 mln
* L&T gets large power transmission, distribution orders from Saudi Arabia
* Suzlon Energy appoints Rahul Jain as CFO, effective Dec 15
* Syrma SGS arm sees 4-10% sops on revenue from project under govt scheme
* ABB India launches new speed drive production line, capacity rises 25%
* BEML inks MoU with Deendayal Port Authority, Delhi Metro Rail, Umeandus Tech
* L&T's heavy engg vertical wins 'significant' orders in intl, domestic mkts
* Govt OKs projects by Kanyes Tech, Syrma SGS, SRF under electronics mfg scheme
* Ircon Intl in JV with Finolex J-Power Systems gets contract of INR 1.68 bln
Following are the resistance and support levels for key capital goods stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Heavy Electricals | 265.49 | 15.00 | 270.00 | 258.40 |
| CG Power and Industrial Solutions | 736.65 | 1.80 | 752.00 | 718.90 |
| Larsen & Toubro | 4,030.90 | 3.20 | 4,084.70 | 3,953.30 |
| Siemens | 3,096.30 | (-)1.80 | 3,174.20 | 3,054.20 |
| Thermax | 3,218.80 | (-)1.80 | 3,313.70 | 3,165.70 |
| Bharat Electronics | 426.10 | 1.00 | 439.60 | 401.40 |
| S&P BSE Capital Goods | 70404.39 | 1.60 | 71056.90 | 69656.20 |
| Nifty 50 | 25722.10 | (-)0.30 | 26038.20 | 25553.10 |
| S&P BSE Sensex | 83938.71 | (-)0.30 | 84992.90 | 83378.60 |
End
Reported by Anshul Choudhary
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
