Q4 Results, Curtain Raiser

When markets correct after a record high, the earnings season takes on a whole new level of importance. As global headwinds jostle investor sentiment, domestic fundamentals step into the spotlight. As part of this special story, Sama Manoj Reddy breaks down the early Q4 FY25 results across key sectors—banking, IT, FMCG, housing finance, and transmission—highlighting where resilience is emerging and where pressure persists. Amid the noise of tariffs, liquidity moves, and policy shifts, he helps investors focus on what matters most: earnings quality, execution strength, and macro adaptability 

Indian stock markets have entered 2025 on a negative note. After hitting lifetime highs in September 2024, benchmark indices have taken a U-turn, primarily due to a selling spree by Foreign Institutional Investors (FIIs). This sell-off was triggered by the high valuations of Indian markets and lower earnings growth reported in the first two quarters. As a result, a widespread correction has been witnessed across the market, with midcaps and smallcaps bearing more brunt due to their steeper valuations. 

Adding to the uncertainty was the U.S. tariff policy under President Trump, which raised fears of a potential recession in the U.S.. This contributed further to the FII exodus. In just the first two months of 2025, FIIs sold equities worth over ₹1.46 lakh crore, dragging indices to fresh lows by initial trading sessions of March. 

Markets briefly saw a relief rally in March as FII selling cooled off, and they turned into net buyers for the month. However, the uptrend was short-lived, as fresh tariff announcements from the U.S. pulled markets lower across the globe. 

On the brighter side, the U.S. has announced a 90-day tariff pause for all countries except China, allowing time for negotiations. More importantly, President Trump hinted that the final tariff rates on China would be significantly lower than the previously feared 145 per cent after the negotiations. 

This has eased fears of a full-blown trade war. In another positive development, India and the U.S. have finalised the terms of reference for a proposed Bilateral Trade Agreement (BTA), paving the way for formal negotiations. 

With the macro setup now stabilising, it’s time to shift focus back to the basics which is the company's financial performance. As the Q4 results season gets underway, let’s review how the earnings have shaped up so far—especially in sectors where multiple companies have announced results. 

March Ending Results:
As of April 24, 2025, 135 companies have announced their Q4 FY25 results out of which, 73 companies have shown positive profit growth, 53 companies have shown degrowth in their profits and 9 companies have given flat numbers. Let’s look at financial performance in some of the key sectors in which companies have reported Q4 results. 

Bank Sector 

Note : • PAT: Profit After Tax • ROA: Return on Assets • CASA: Current Account & Savings Account • GNPA: Gross NonPerforming Assets • NNPA: Net Non-Performing Assets 

HDFC Bank : HDFC Bank showed steady growth in Net Interest Income (10.3 per cent) and Profit After Tax (PAT) (6.7 per cent) in Q4 FY25 compared to the previous year. However, Net Revenue saw a decline of 6.7 per cent. The bank's asset quality, as indicated by GNPA% and NNPA%, saw a slight deterioration. Return on Assets (ROA) also improved marginally. A notable point is the decrease in CASA % by 3 per cent. 

ICICI Bank : ICICI Bank showed a healthy 11 per cent YoY growth in NII and a 13 per cent rise in Net Revenue, reflecting strong operational performance. PAT jumped 18 per cent, underlining profitability strength. Asset quality improved significantly (GNPA down to 1.67 per cent, NNPA to 0.39 per cent), and the ROA improved to 2.49 per cent, highlighting efficiency gains. CASA % remained relatively stable with a minor decrease. 

Yes Bank : Yes Bank reported modest NII growth (5.7 per cent), but Net Revenue and PAT rose strongly at 7.9 per cent and a massive 63.3 per cent YoY, respectively, due to the low base effect. The bank significantly improved its asset quality, with both GNPA% and NNPA% seeing a considerable reduction. CASA % increased by 3.4 per cent, indicating an improved deposit mix. ROA improved by 20 bps but remains relatively low at 0.7 per cent. 

The overall banking sector seems to be on a positive trajectory, with strong growth in profitability and improving asset quality across the board. Net Interest Income growth remains a positive trend across the board, indicating continued credit demand. Asset quality shows signs of improvement or stability for ICICI Bank and Yes Bank, although HDFC Bank saw a minimal increase in bad loans. The sector remains fundamentally strong, with clear signs of revival, supported by recent policy actions from the RBI. Two rate cuts and a shift in the monetary policy stance from "neutral" to "accommodative" reflect the central bank’s intent to stimulate borrowing and investment. 

Additionally, the RBI has deferred the implementation of stricter Liquidity Coverage Ratio (LCR) norms by at least a year and eased final LCR requirements, effectively freeing up more funds for lending. To further boost liquidity, the RBI injected ₹60,000 crore into the banking system through government securities' purchases in three tranches. These measures are expected to enhance banks’ liquidity positions and enable more aggressive credit expansion, reinforcing the sector’s growth momentum. 

IT Sector 

TCS reported its slowest revenue growth in four years, with Q4 FY25 revenue at `64,479 crore, up from ₹61,237 crore in the same quarter last year. However, its consolidated profit after tax (PAT) declined by 1.7 per cent to ₹12,224 crore, compared to ₹12,434 crore in Q4 FY24. 

Infosys posted an 11.75 per cent year-on-year drop in consolidated net profit for Q4 FY25, coming in at ₹7,033 crore. Meanwhile, its revenue from operations grew by 8 per cent YoY, reaching ₹40,925 crore, up from ₹37,923 crore in the year-ago quarter. Looking ahead, Infosys has projected revenue growth between 0 per cent and 3 per cent for FY26 in constant currency terms, marking its weakest annual guidance since April 2009. 

LTI Mindtree reported a 9.9 per cent year-on-year growth in revenue for Q4 FY25, reaching ₹9,772 crore, up from ₹8,893 crore in the same quarter last year. The company’s profit after tax (PAT) rose marginally by 2.5 per cent to ₹1,129 crore, compared to ₹1,101 crore in Q4 FY24. However, operating margin declined to 13.8 per cent from 14.7 per cent, and net margin slipped to 11.6 per cent from 12.4 per cent, indicating some pressure on profitability despite top-line growth. 

Based on Q4 FY25 results of major IT players like TCS, Infosys, and LTI Mindtree, the Indian IT services sector is witnessing moderate revenue growth but persistent pressure on profitability. While top-line performance remains stable, the ability to convert revenue into operating and net profits has weakened, leading to margin contractions across the board, especially at the net margin level and at the EBIT level for TCS and LTI Mindtree. 

Looking ahead, the FY26 outlook remains cautious, shaped by global economic headwinds, including high interest rates, inflation, and fears of a U.S. recession. The situation is further complicated by reciprocal and sector-specific tariffs introduced by U.S. President Donald Trump, prompting clients to delay or reconsider discretionary IT spending. The sector is also grappling with softening demand and a fragile business environment, as reflected in conservative revenue guidance from key players. 

While a marginal improvement over FY25 is possible, the industry remains at an inflection point, navigating uncertainty from trade policies, macroeconomic challenges, and the impact of AI on enterprise tech priorities. 

FMCG sector 

Nestlé India posted a 4.5 per cent year-on-year growth in revenue from operations in Q4 FY25, reaching ₹5,504 crore compared to ₹5,268 crore in the same quarter last year. EBITDA rose modestly by 2.9 per cent to ₹1,389 crore, but EBITDA margin slipped slightly to 25.24 per cent from 25.63 per cent. Despite top-line growth, net profit declined by 6.5 per cent to ₹873 crore, reflecting margin pressures or higher costs. 

Hindustan Unilever (HUL) reported a 3.5 per cent YoY increase in revenue, coming in at ₹15,979 crore against ₹15,441 crore in Q4 FY24. EBITDA rose 2.2 per cent to ₹3,691 crore, though the EBITDA margin narrowed slightly to 23.1 per cent from 23.4 per cent. Net profit dropped 3.4 per cent to ₹2,475 crore, indicating that cost pressures or subdued demand may be weighing on bottom-line performance. 

Commodity inflation and sluggish volume growth resulted in only a modest uptick in sales for FMCG players. Both Nestlé India and HUL expressed caution regarding input cost pressures, which have begun to weigh on margins. However, they remain moderately optimistic that a gradual improvement in macroeconomic conditions could support stronger growth in the coming fiscal compared to the previous year. 

Q4 Highlights: Beyond the Majors Housing Finance companies 

Based on the Q4 FY25 results of Bajaj Housing Finance and Can Fin Homes, the housing finance sector appears to be experiencing continued growth in AUM and profitability. 

Bajaj Housing Finance showed particularly strong performance across key metrics, with its AUM, NII, and PAT growing by 26 per cent, 31 per cent, and 54 per cent respectively. Assets under management (AUM) rose to ₹1,14,684 crore in Q4 FY25, while profit after tax (PAT) surged to ₹587 crore, reflecting strong profitability. Asset quality remained stable, with gross NPA at 0.29 per cent and net NPA at 0.11 per cent, underscoring the company's prudent risk management. 

Can Fin Homes also grew, albeit at a slower pace, and faced some pressure on Net Interest Margin (NIM) and asset quality. The overall picture suggests a favourable environment for housing finance, driven by demand, but individual company performance can vary based on factors like geographical presence, scale, strategy, and asset quality management. 

Transmission Sector 

Based on the Q4 FY25 results of Transformers & Rectifiers India (TRIL) and Shilchar Tech, both companies, which operate in electrical equipment manufacturing, have shown robust growth in Key Performance Indicators (KPIs) like Net Sales, EBITDA, PAT, and Order Book. Both companies have delivered strong top-line and bottom-line expansion, coupled with healthy growth in profitability margins (EBITDA %). The significant increase in the Order Book for TRIL and the reported order book for Shilchar Tech suggest a strong demand environment and future revenue potential for companies in this domain. 

Conclusion: The early Q4 FY25 earnings season indicates a mixed but revealing snapshot of India Inc. Amid global uncertainty and domestic macro headwinds, corporate India has shown resilience, particularly in the banking, housing finance, and transmission sectors. Banks have posted steady growth with improving asset quality, supported by RBI’s liquidity measures. In contrast, the IT sector continues to face headwinds from global demand softness and cautious client spending. FMCG players have battled margin pressures, reflecting broader consumer sentiment and input cost volatility. Encouragingly, housing finance and transmission companies reported strong growth, signalling momentum in government’s capital expenditure and credit demand. With over 100 companies already reporting, early trends point to sectoral divergence— where fundamentals and forward visibility are guiding investor interest. As Trump tariff policy clarity improves and global risks settle, the focus now shifts to bottom-up stock selection driven by earnings quality, execution strength, and macro adaptability. The curtain may be up—but the drama of FY26 has just begun.