From Reliance’s retail strength to Infosys’ cautious outlook, the earnings season is reshaping investor sentiment
Optimism and caution somewhat dominated the Indian stock market’s reaction to the Q4 earnings for FY2024-25. Various sectors and companies showed strong performance, while a certain set had tough times reflecting on the diverse economic conditions.
Market Review
The BSE Sensex and benchmark Nifty 50 had gained strength as of May 1, 2025, on the back of strong earnings from some major players and continued interest from foreign institutional investors. The Nifty 50 was above 0.90 percent at 24,255.55, while the BSE Sensex gained around 0.98 percent at 79,989.97-the highest gain for this index after Reliance Industries showed better-than-expected earnings.
Confidence in the market is also further supported by foreign institutional investors’ approximately ₹32,465 crore ($3.8 billion) inflow into Indian equities within the last eight days, indicating the likely returns with the ongoing global uncertainties.
Winners: Businesses and Sectors That Have Surpassed Expectations
Reliance Industries Ltd.: RIL declared a consolidated profit of ₹19,407 crore [$2.27 billion] in Q4, which turned out to be above the analysts’ expectation. The company performed well in retail and digital services, primarily in Jio Platforms, offsetting an approximately 10 percent decline in oil-to-chemicals.
Vedanta Ltd.: The company’s Q4 profit soared 154% to ₹3,483 crore [$412 million] on the back of higher commodity prices and a lower tax rate, of which aluminum and zinc prices rose by 19.6% and 17.5%, respectively, thereby giving rise to a 14% increase in revenue.
Trent Ltd.: The Tata Group’s apparel retailer, Trent, more than doubled its adjusted Q4 profit to ₹318 crore ($37.34 million), driven by strong sales and improved operating margins. The company’s focus on Gen-Z consumers and rapid expansion of its Zudio stores have been instrumental in this growth.
ICICI Bank: ICICI Bank reported a 15.4% year-on-year increase in net profit to ₹12,350 crore, supported by robust loan growth and improved asset quality. Net interest income rose by 9.1%, and the bank’s loan book expanded by 14.3%.
Paras Defence and Space Technologies: The company announced a 117% year-on-year increase in Q4 net profit to ₹20.83 crore, alongside a 36% rise in revenue. Additionally, Paras Defence declared a 1:2 stock split and its first-ever dividend of ₹0.50 per share.
Losers: Businesses in the Rough
Infosys Ltd.: Infosys has been shunted to the 0-3% revenue growth forecast for FY-2026, and that is below-industry expectations. The revenues for Q4 of the company have gone up 7.9% over the last year, ending up with ₹40,925 crores ($4.79 billion) in Q4 revenues, which were below expectations owing to soft North American markets.
HCL Technologies Ltd.: HCL Tech’s revenues for Q4 increased 6.1% to ₹30,246 crore ($3.6 billion) from the previous year, but fell short of expectations. The company is hoping for revenues between 2% and 5% growth for FY-2026, which further corroborates the studied global economy during this time.
Maruti Suzuki India Ltd.: Q4 revenue growth is expected to be between 4% and 10% for Maruti Suzuki, attributed to an increase in volumes and price changes. However, high input costs may hurt profitability, with brokerages forecasting marginal declines in net profit.
Surprises: Significant Events
Bandhan Bank: Bandhan Bank reported a 482% year-on-year increase in net profit for quarter four to ₹318 crore, despite the 3.6% decline in net interest income. Much of the weight behind this performance has come as a result of improved asset quality and reduced provisions.
Indian Oil Corporation (IOC): IOC posted a 50% year-on-year rise in Q4 net profit to ₹7,265 crore, with revenue from operations remaining steady at ₹2.17 lakh crore. The company also recommended a final dividend of ₹3 per share for FY25.
Sectoral Insights
Banking and Financial Services: The banking sector demonstrated resilience, with major players like ICICI Bank and Bandhan Bank reporting strong earnings. Improved asset quality and robust loan growth contributed to this performance.
Information Technology: The IT sector faced headwinds, with companies like Infosys and HCL Tech projecting muted revenue growth due to global economic uncertainties and reduced client spending in key markets.
Retail: Retailers like Trent Ltd. outperformed, leveraging consumer demand and strategic expansion to drive sales and profitability.
Automotive: The automotive sector presented a mixed picture, with companies like Maruti Suzuki experiencing revenue growth but facing profitability pressures due to rising input costs.
The Q4 earnings season for fiscal year 2024–25 has highlighted the varied performance across sectors in the Indian market. While companies in banking, retail, and certain industrial segments have shown strong results, the IT and automotive sectors have faced challenges. Investors and stakeholders will closely monitor these trends as they navigate the evolving economic landscape.
