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Informist, Tuesday, Nov. 18, 2025

 

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--Analysis: Nifty 50 Q2 net profit excluding exceptional items down 0.4% YoY
--Analysis: Nifty 50 Q2 net profit including exceptional items up 1.6% on yr
--Analysis: Undivided Tata Motors, banks, drag Nifty 50 Q2 net profit down
--Analysis: Bharti Airtel, Tata Steel, JSW Steel boost Nifty 50 Q2 net profit
--Analysis: Nifty 50 Q2 adjusted PAT without both Tata Motors up 2.9% YoY
--Analysis: Nifty 50 Q2 adjusted PAT excluding six banks up 2.5% on year
--Analysis: 47 Nifty 50 cos' Q2 adjusted PAT up 0.7% YoY vs 5% rise expected
 

 

By Anshul Choudhary

 

MUMBAI – The Nifty 50 index companies reported a 0.4% year-on-year decline in their cumulative net profit excluding exceptional items for the September quarter. This was largely because of a dismal performance by banks and Tata Motors Passenger Vehicles Ltd.

 

The cumulative adjusted net profit of 47 companies of the Nifty 50 index, for which estimates were available, rose less than 1% on year, missing even the modest expectations of a 5% rise by analysts. Earnings estimates were not available for Adani Enterprises, Bajaj Finserv, and Jio Financial Services.

 

Revenue growth for the Nifty 50 companies picked up slightly in the September quarter but remained in single digit as it was affected by consumers delaying purchases to benefit from the lower goods and services tax which took effect from Sept. 22. The cumulative revenue of these 47 companies rose 8.7% on year during the quarter, higher than the expected rise of 7.3%.

 

However, the year-on-year revenue growth remained in single digit for the 10th straight quarter. The top 50 companies had last reported a combined sales growth of more than 10% during the March quarter of 2023--more than two years ago.

 

The 0.4?cline in the adjusted net profit of the Nifty 50 companies is in sharp contrast to the 8% growth in the net profit these companies had reported for the June quarter and the same growth reported for the year-ago quarter. The calculation for adjusted net profit excludes all one-time exceptional items, including the one-time expense of over INR 20 billion incurred by Tata Motors Ltd. on mark-to-market losses after the listing of Tata Capital Ltd. The new Tata Motors now houses only the commercial vehicle business of the undivided Tata Motors.

 

For a like-to-like comparison with the year-ago quarter, earnings of both Tata Motors Passenger Vehicles and the new Tata Motors have been added to the net profit of the Nifty group in this analysis. The two businesses released their quarterly results separately as the demerger came into effect from October. This analysis is based on the Nifty 50 constituents before the index rejig was announced in August, which came into effect from October.

 

The fall in banks' net profit during the quarter, which contribute nearly 29% of the index companies' profits, also hit the combined earnings of the Nifty 50 companies hard. Four of the six banks in the index reported a fall in their bottom line, excluding exceptional items. Excluding the six banks, the cumulative adjusted net profit of the remaining 44 companies was up 2.5% as compared with the 0.4% for the Nifty 50.

 

The fall in the cumulative adjusted net profit of the Nifty 50 companies was largely due to the loss reported by Tata Motors PV, which was due to the loss its Jaguar Land Rover business reported. Excluding the earnings of the undivided Tata Motors, the combined net profit of 46 of the Nifty 50, for which estimates were available, was up 4.1% on year and missed the consensus estimate of a 5.7% rise in profit expected by analysts for these 46 companies.

Only if we exclude the earnings of all six Nifty 50 banks and the undivided Tata Motors does the September quarter cumulative net profit of the remaining 43 companies show a rise of 7.4% on year as compared with the 0.4?ll in net profit reported by all 50 companies.

 

The Nifty 50 companies reported a cumulative adjusted net profit of INR 1.90 trillion for the September quarter. Including exceptional items, the cumulative net profit of the index companies was INR 1.92 trillion.

 

HIT FROM TATA MOTORS

The undivided Tata Motors had a larger impact on the Nifty 50 index companies' earnings growth than the combined effect of six banks simply because of the sheer size of the net loss reported by the auto company. In absolute terms, the adjusted net loss of the undivided Tata Motors was INR 27 billion from continuing operations, which was a drag on the cumulative adjusted net profit of the Nifty 50. In the year ago quarter, the undivided Tata Motors had reported a net profit of nearly INR 35 billion. That is a cumulative swing of INR 62 billion from the year-ago quarter.

 

In comparison, the fall in six banks' adjusted net profit was only INR 40 billion, which also took the Nifty 50 profit down by that number. At INR 100 billion, the cumulative impact of the swing in the performance of Tata Motors and the six Nifty 50 banks was almost 5% of the net profit reported by the Nifty 50 for the September quarter.

 

Tata Motors Passenger Vehicles reported a net loss due to a sharp drop in volumes of JLR, which had to shut production in September after a cyberattack at its facility in the UK. JLR contributed more than 60% to the revenue of the undivided Tata Motors. JLR's retail volumes during the quarter fell 17% on year to 85,500 units, which led to the undivided Tata Motors' revenue declining more than 10% on year.

 

The undivided Tata Motors was the only automobile company in the Nifty 50 index that saw its revenue fall on year. The cumulative revenue of six automobile companies in the Nifty 50 index, including the undivided Tata Motors, was up 3% on year. However, excluding Tata Motors, the revenue growth of remaining auto companies in the index jumps to over 17% on year.

 

Tata Motors had the same impact on the net profit of automobile companies of the Nifty 50. The cumulative adjusted net profit of automobile companies in the index was down 29% on year. However, excluding the earnings of the undivided Tata Motors, the adjusted net profit of the remaining five companies was up 16% on year--slightly better than expectations of a 15% rise.

 

SKEWED PERFORMANCE

The impact of the earnings of Tata Motors and the index banks is such that the performance of the top 50 seems more skewed in the reporting quarter than in earlier quarters. If we exclude only one company, Bharti Airtel, which reported a 53% rise in net profit, the cumulative adjusted net profit of the remaining 49 companies in the index is down nearly 2% against the 0.4?ll for the entire Nifty 50. To view it differently, Bharti Airtel contributed 4% of the adjusted net profit of the index group in the September quarter.

 

Similarly, if we exclude only the two steel majors--Tata Steel and JSW Steel--the net profit of the remaining 48 companies is down more than 2% on year during the quarter. These two companies contributed nearly 3% of the net profit of the index companies in the reporting quarter.

 

The skewed performance is also visible in that 36 of the Nifty 50 companies' net profit growth was above the 0.4?ll reported by the entire index and only 14 companies' performance was below this level. While 36 companies performed better than the index, the growth was largely limited to some companies with only 10 companies reporting a net profit rise of over 20% and only five companies reporting a rise above 30%.

 

The hit to profits due to the performance of banks and JLR was the major reason why the Nifty 50 index companies' cumulative net profit missed expectations. Excluding the six banks, the undivided Tata Motors, and three companies for which estimates were not available, the cumulative net profit of the remaining 40 companies, adjusted for exceptional items, met the expectations of around 9% year-on-year rise.

 

Without adjusting for exceptional items, the cumulative net profit of these 50 index companies was up 1.6% during the September quarter, as opposed to a 0.4?ll when adjusted for exceptional items. The 1.6% rise is the lowest net profit growth these bellwether companies have reported in at least 40 quarters for which data is readily available with Informist, excluding the six quarters in these 40 when the index companies had reported a fall in net profit.

 

Four of the Nifty 50 companies reported one-time expenses in the September quarter and four others reported one-time income. At a cumulative level, the Nifty 50 companies saw a one-time income of nearly INR 41 billion, net of one-time expenses, during the reporting quarter. These companies had reported a one-time expense of over INR 17 billion in the year-ago quarter, net of one-time income. In the September quarter last year, nine companies had reported a one-time expense and only two companies had reported a one-time income.

 

BANKS' MARGINS HIT

Most banks reported a decline in margins during the quarter as they continued to see the impact of cuts in the benchmark repo rate by the Reserve Bank of India. Credit growth improved slightly towards the end of the quarter owing to the cut in the GST but this failed to offset the impact of lower margins.

 

Credit growth for scheduled banks improved to 11.5% in the fortnight to Oct. 17, which was significantly better than the growth of just over 10% during the month before the GST cuts took effect. However, the 11.5% credit growth is still around the level seen in 2024-25 (Apr-Mar) and sharply slower than the 19% growth in FY24.

 

The six banks in the benchmark index reported a growth of over 3% in the cumulative net interest income, which was better than analysts' expectations of an over 1% rise. All the five private sector banks in the index reported a sequential decline in their net interest margin. State Bank of India was the only bank in the Nifty 50 index which reported a rise in its net interest margin even though the rise was only of 3 basis points.

 

Lower margins hit banks' profits despite higher interest income during the September quarter. The six banks in the index reported a year-on-year decline of nearly 7% in net profit, excluding exceptional items, more than a 1?ll forecast by analysts.

 

TOP GAINERS AND LOSERS

The cumulative revenue of the 47 of the index companies for which earnings estimates were available rose 8.7% on year during the quarter, higher than the 7.3% rise expected. Including the three companies for which estimates were not available, the Nifty 50 companies' cumulative revenue growth was 8.5% on year--the highest growth in five quarters.

 

The near-9% growth in revenue was driven by automobile, cement, retail, services, telecommunication, metal, and capital goods companies. Sales of power companies fell on year and sales of information technology companies remained weak.

 

The services sector, which has only Eternal Ltd. in the Nifty 50 index, was the top performer in terms of revenue growth in the reporting quarter. Eternal's revenue nearly tripled on year to INR 135.90 billion during the September quarter. The services sector was followed by the logistics sector, represented by only Adani Ports and Special Economic Zone in the index. Adani Ports reported a rise of nearly 30% in its consolidated revenue to INR 91.68 billion.

 

In terms of the net profit, steel makers reported the best growth figures as volumes from India operations improved on year and lower coking coal prices helped keep input costs in check. Tata Steel more than quadrupled its net profit and JSW Steel doubled its net profit during the quarter becoming the top two performers in the Nifty 50 index. This growth in steel companies' net profit can be seen more starkly in that the cumulative net profit of the remaining 48 index companies, excluding the two steel makers, fell more than 2% on year during the quarter.

 

The undivided Tata Motors reported the biggest fall in bottom line during the quarter as it reported a net loss against a net profit in the year-ago quarter. While Eternal was the top performer in terms of sales growth, it was the worst performer among the companies that saw their net profit decline. The Zomato-owner's net profit fell more than 63% on year to INR 650 million during the quarter.

 

IndusInd Bank reported the worst fall in top line as it was the only Nifty 50 bank that reported a year-on-year fall in net advances. The bank's net interest income was down more than 17% on year to INR 44 billion as net advances at the end of the September quarter fell nearly 9%. This was followed by the undivided Tata Motors with a more than 10?ll in revenue to INR 909 billion.

 

Bharti Airtel also had a major impact on the cumulative earnings of the Nifty 50 index. The company's consolidated revenue during the September quarter was up nearly 26% on year to INR 521 billion and net profit rose nearly 53% to around INR 68 billion--beating analysts' expectations on both counts. Excluding Bharti Airtel, the cumulative adjusted net profit of the remaining 49 companies in the index was down nearly 2% against the 0.4?ll for the entire Nifty 50.

 

Following are the Jul-Sept actual sales, earnings, and earnings growth of 47 companies of the National Stock Exchange's Nifty 50 index for which earnings estimates were available. All absolute numbers are in INR million and all percentage changes are year-on-year. The actual growth is juxtaposed with the estimates for each of the companies:

 

Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
AUTO
Bajaj Auto	24,797	24,806	23.68	23.72	1,49,221	1,47,199	13.67	12.13
Eicher Motors +	13,695	14,143	24.46	28.53	61,716	60,325	44.77	41.51
Hero Motocorp	13,928	14,294	15.73	18.77	1,21,264	1,19,272	15.90	13.99
Mahindra and Mahindra	45,205	40,195	17.69	4.65	3,50,798	3,39,694	21.30	17.46
Maruti Suzuki India	32,931	36,035	7.30	17.41	4,21,008	3,94,111	13.17	5.94
Tata Motors (PV & CV) +	-26,680	25,092	N.A.	-27.94	9,09,340	9,59,371	-10.14	-5.19
Total	1,03,876	1,54,565	-29.34	5.14	20,13,346	20,19,973	3.16	3.50
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	NII Actual	NII Expected	NII Growth Actual	NII Growth Expected
BANKS
Axis Bank *	50,896	59,301	-26.42	-14.27	1,37,446	1,32,945	1.94	-1.40
HDFC Bank *	1,86,413	1,75,112	10.82	4.10	3,15,515	3,13,955	4.77	4.26
ICICI Bank *	1,23,589	1,23,148	5.22	4.84	2,15,295	2,15,782	7.39	7.63
Indusind Bank *	-4,448	5,826	N.A.	-56.04	44,094	44,647	-17.54	-16.51
Kotak Mahindra Bank *	32,533	33,385	-2.70	-0.16	73,107	73,134	4.15	4.19
State Bank of India *	1,55,665	1,80,387	-15.08	-1.60	4,29,841	4,11,959	3.28	-1.02
Total	5,44,648	5,77,160	-6.87	-1.31	12,15,297	11,92,421	3.31	1.37
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
CAPITAL GOODS
Larsen and Toubro +	39,261	40,820	15.63	20.23	6,79,835	7,10,633	10.44	15.45
Total	39,261	40,820	15.63	20.23	6,79,835	7,10,633	10.44	15.45
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
CEMENT
Ultratech Cement +	12,316	14,773	75.23	110.19	1,96,069	1,84,766	20.33	13.39
Total	12,316	14,773	75.23	110.19	1,96,069	1,84,766	20.33	13.39
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
CHEMICALS
Asian Paints +	9,936	9,008	13.58	2.97	85,313	81,291	6.28	1.27
Grasim Industries	8,046	7,930	4.37	2.88	96,103	93,372	26.06	22.48
Total	17,981	16,938	9.27	2.93	1,81,416	1,74,663	15.91	11.60
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
DEFENCE
Bharat Electronics	12,861	11,156	17.86	2.23	57,637	53,131	25.75	15.92
Total	12,861	11,156	17.86	2.23	57,637	53,131	25.75	15.92
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
FINANCE
Bajaj Finance + *	48,754	51,156	21.89	27.90	1,07,847	1,17,349	22.03	32.78
HDFC Life Insurance #	4,472	4,751	3.27	9.73	1,87,773	1,91,452	13.32	15.54
SBI Life Insurance #	4,946	5,439	-6.58	2.74	2,48,483	2,35,058	22.61	15.99
Shriram Finance *	23,072	22,194	11.39	7.15	60,258	61,606	10.28	12.75
Total	81,243	83,540	15.51	18.78	6,04,361	6,05,465	18.18	18.40
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
FMCG
Hindustan Unilever	25,060	24,765	-4.64	-5.76	1,55,850	1,58,427	0.50	2.16
ITC	50,917	50,885	2.33	2.26	1,80,213	1,95,120	-3.37	4.63
Nestle India	7,532	7,234	8.29	4.01	56,436	53,368	10.57	4.56
Tata Consumer Products +	4,045	3,641	3.29	-7.03	49,659	47,691	17.83	13.16
Total	87,554	86,525	0.74	-0.44	4,42,158	4,54,607	1.70	4.57
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
IT
HCL Technologies +	42,350	42,752	0.00	0.95	3,19,420	3,15,983	10.67	9.48
Infosys +	73,640	71,969	13.19	10.62	4,44,900	4,41,135	8.55	7.63
Tata Consultancy Services +	1,32,100	1,24,958	10.92	4.93	6,57,990	6,51,435	2.40	1.38
Tech Mahindra +	11,945	12,945	-4.45	3.55	1,39,949	1,38,078	5.12	3.72
Wipro +	32,462	33,172	1.17	3.38	2,26,973	2,27,251	1.77	1.90
Total	2,92,497	2,85,795	7.90	5.42	17,89,232	17,73,882	5.42	4.52
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
JEWELLERY
Titan Co.	10,060	10,699	42.70	51.75	1,65,340	1,54,782	25.12	17.13
Total	10,060	10,699	42.70	51.75	1,65,340	1,54,782	25.12	17.13
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
METAL & MINING
Hindalco Industries +	49,230	45,366	11.30	2.57	6,60,580	6,64,235	13.50	14.12
JSW Steel +	16,230	17,807	107.81	128.00	4,51,520	4,44,739	13.78	12.07
Tata Steel +	35,222	27,675	331.98	239.42	5,86,893	5,55,393	8.88	3.03
Total	1,00,682	90,848	67.26	50.93	16,98,993	16,64,366	11.93	9.65
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
OIL & GAS
ONGC	98,480	93,859	-17.82	-21.68	3,30,306	3,27,395	-2.51	-3.37
Reliance Industries +	1,81,650	1,89,115	9.67	14.18	25,46,230	24,68,682	9.97	6.62
Total	2,80,130	2,82,974	-1.87	-0.87	28,76,536	27,96,077	8.38	5.35
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
PHARMA, HEALTHCARE
Apollo Hospitals +	4,772	4,502	25.98	18.85	63,035	62,285	12.78	11.44
Cipla +	13,512	13,922	3.73	6.89	75,894	74,251	7.64	5.31
Dr. Reddy's Lab +	13,471	14,045	7.28	11.85	88,283	87,000	9.83	8.23
Sun Pharmaceutical +	31,180	29,442	2.56	-3.15	1,44,783	1,42,507	8.93	7.22
Total	62,934	61,912	5.29	3.58	3,71,996	3,66,044	9.51	7.76
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
PORTS
Adani Ports +	31,091	33,201	24.52	32.98	91,675	91,515	29.72	29.50
Total	31,091	33,201	24.52	32.98	91,675	91,515	29.72	29.50
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
POWER
Coal India +	43,543	52,951	-30.76	-15.81	3,01,867	2,97,379	-3.19	-4.63
NTPC	46,533	44,934	0.10	-3.34	3,91,666	4,25,116	-2.90	5.39
Power Grid Corp	35,548	37,835	-4.21	1.95	99,996	1,11,310	-2.54	8.49
Total	1,25,624	1,35,719	-14.24	-7.35	7,93,529	8,33,806	-2.97	1.96
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
RETAIL
Trent	4,508	4,417	6.45	4.30	47,241	47,594	17.06	17.94
Total	4,508	4,417	6.45	4.30	47,241	47,594	17.06	17.94
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
SERVICES
Eternal +	650	1,123	-63.07	-36.18	1,35,900	87,574	183.18	82.48
Total	650	1,123	-63.07	-36.18	1,35,900	87,574	183.18	82.48
Company Name	PAT Actual	PAT Expected	PAT Growth Actual	PAT Growth Expected	Sales Actual	Sales Expected	Sales Growth Actual	Sales Growth Expected
TELECOM
Bharti Airtel +	67,917	64,615	52.73	45.30	5,21,454	5,05,359	25.73	21.85
Total	67,917	64,615	52.73	45.30	5,21,454	5,05,359	25.73	21.85
Grand Total	18,75,832	19,56,778	0.69	5.04	1,38,82,013	1,37,16,656	8.56	7.27

 

Notes:

+ Consolidated Figure

* Net interest Income

Y-o-Y: Year-on-Year

# Net premium income

N.A.: Not Applicable

 

End

 

Data compiled by Vinod Bhovad 

 

Edited by Ashish Shirke

 

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