Nifty Q4 Earnings Scorecard: India Inc Sees Steady Sailing Amid Global Turbulence

More than half of the companies in Indian equities' benchmark index announced their fourth quarter results in line with analysts' consensus expectations, even amid a globally volatile policy backdrop.

Out of the fifty large-cap companies in the Nifty 50 index, 27 reported in-line results, while those that surpassed street expectations outnumbered those that missed them.

Cumulative profits for the index companies grew 2.7% when compared against the same quarter last year, while revenue grew faster at 7.8%.

Of the two newest additions to NSE's flagship index, Bharat Electronics Ltd. reported a beat against Bloomberg estimates for its fourth-quarter earnings, while Eternal Ltd. (formerly Zomato) missed the consensus forecast for its results.

Most sectors reported largely in-line results, with seven of 10 companies in the financial services sector meeting analysts' forecasts.

A similar trend was observed in companies that belong to the fast-moving consumer goods space, the automobiles and auto components sector, and the information technology sector.

On a cumulative basis, profits increased the most for companies in the metals and metal mining sector, while they fell the most for those in consumer services, followed by the auto sector.

Compared against the year-ago period, the sum of profits reported by all metals and metal mining companies in Nifty 50 more than doubled with a growth of nearly 117%.

Beat Against Estimates

Adani Enterprises surpassed estimates with an 8.5 times surge in profits, mainly driven by a large one-time exceptional gain from the sale of a stake in Adani Wilmar. Its incubating businesses also showed strong underlying operational performance with increased Ebitda.

Adani Ports beat estimates across all metrics with a 48% rise in net profit and a 23.1% revenue increase, driven by strong cargo volume growth and expanded market share. The company also provided robust guidance for the financial year ending March 2026.

Bharat Electronics Ltd. beat estimates with an 18.4% surge in net profit, supported by improved operational profitability and a substantial order book of Rs 71,650 crore. This strong order pipeline indicates future revenue visibility from the defence sector.

Coal India surpassed profit estimates with a 12% increase, likely due to improved cost efficiencies or favorable pricing dynamics. This profit beat was achieved despite a marginal decline in revenue.

Hindalco Industries beat estimates with a 66.45% profit increase, driven by record performance in its Indian aluminium and copper businesses due to lower input costs and favourable market conditions. The company also saw an improvement in its net debt to Ebitda ratio.

ICICI Bank beat estimates with an 18% surge in net profit, primarily due to significantly lower-than-expected provisions and notable improvements in asset quality. The bank's net interest income also saw a healthy increase.

Larsen & Toubro beat estimates with a 25% rise in net profit, driven by strong order inflows that exceeded guidance, particularly from international energy projects. The company's consolidated order book grew significantly, ensuring future revenue.

Mahindra & Mahindra surpassed estimates with a 22% rise in standalone net profit, fuelled by strong SUV sales growth that outpaced the market and robust tractor segment margins. The company's electric vehicle business also reached Ebitda breakeven.

NTPC Ltd. reported a 23.4% rise in consolidated net profit, beating estimates primarily due to a significant net movement in regulatory deferral account balances. This accounting adjustment allowed for immediate recognition of certain foreign currency exchange gains.

SBI Life Insurance missed profit estimates as its consolidated net profit remained flat year-on-year. However, its Value of New Business (VNB) grew by nearly 10%, and VNB margins significantly improved, indicating better operational efficiency and customer retention.

Titan Company beat estimates with a 10.7% rise in net profit, driven by strong growth of 25% in its jewellery segment despite gold price hikes. Gains from its watches, wearables, and eyewear divisions, along with hedging benefits, also contributed.

UltraTech Cement beat estimates, driven by a recovery in cement prices and robust volume growth, which led to strong Ebitda per tonne. The company's performance was attributed to pricing discipline and cost initiatives.

Miss Against Estimates

Asian Paints missed its estimates as profits fell 45% due to increased competitive intensity, notably from Birla Opus, and muted demand, further impacted by a significant one-time cost. This one-time cost included impairment losses and loss from asset disposal.

Bajaj Finance missed profit estimates despite a 16% rise, primarily due to higher-than-expected loan loss provisions, including a specific additional provision for the redevelopment of its expected credit loss model. However, its net interest income grew strongly, and asset quality improved.

Grasim Industries missed estimates with a widened net loss, mainly due to significant capital expenditure on its new Birla Opus paints business leading to higher expenses. An exceptional loss from ceasing a non-viable unit also contributed to the wider loss.

IndusInd Bank reported a wider-than-expected net loss, missing estimates significantly due to severe accounting discrepancies, including incorrect entries and misclassification of loans. This was coupled with a substantial drop in net interest income and sharply increased provisions.

Infosys missed its March quarter revenue estimates and full-year guidance, citing a seasonally weak quarter, lower third-party revenues, and ongoing global economic uncertainty impacting client spending. The company provided muted revenue growth guidance for FY26.

Maruti Suzuki India missed estimates with a 4.3% profit decline, attributed to margin pressures from one-off costs like new plant ramp-ups and higher advertising expenses. The company also maintained a cautious outlook for FY26 domestic demand.

Power Grid Corporation missed estimates with a marginal profit decline, primarily due to project execution delays linked to land acquisition challenges for its large-scale infrastructure projects. This occurred despite a slight increase in revenue from core operations.

Sun Pharmaceutical Industries missed profit estimates with a 19% decline, largely due to a significantly higher exceptional loss. Despite the profit miss, the company's revenue increased, and Ebitda saw strong growth.

Tata Steel technically missed overall consensus estimates on revenue and Ebitda due to declines in these metrics and ongoing losses in its European unit. However, its net profit surged impressively on a sequential basis, exceeding expectations.

Eternal missed profit estimates with a 34% drop, primarily due to slowing food delivery growth and intense competition. This was despite its revenue growing and surpassing estimates, largely driven by the strong performance of its quick commerce arm, Blinkit.