Q4 Earnings Preview: Key Companies and Expected Growth Explained

The fourth quarter earnings season is heating up! On Monday, 16 companies will reveal their financial results. Key companies to watch include Mahindra Logistics and Tata Investment. Other companies like Alok Industries, Anant Raj Ltd, Aditya Birla Money, and Lotus Chocolate Company will also announce their earnings.

So far, the earnings reports from the IT sector have been average, mostly matching what was expected. Overall, it looks like corporate India will have another quiet quarter. Analysts predict that the Nifty Index will only see a tiny earning growth of 2% compared to last year. Kotak Institutional Equities even thinks Nifty profits could fall by 0.6%. The profits have been weak for the first three quarters of FY25, and experts think this trend will continue in the final quarter. This may mean that Nifty could finish FY25 with just 5% growth year-on-year.

Brokerage firm Nuvama has warned that a big recovery in profits seems unlikely for now. With global uncertainties, there’s a chance earnings downgrades might happen, putting the current forecast of 13% earnings growth for FY26 at risk.

For March quarter earnings, some sectors are expected to do better. The metal sector might see a fantastic growth of 24% compared to last year, telecom could change its losses into profits, and healthcare may grow by 11%. The banking, financial services, and insurance (BFSI) sectors, along with IT, are expected to show modest growth of just 2% and 6% year-on-year, respectively.

However, some banks may struggle. Private banks might see their earnings drop by 3%, which would be their first decline since March 2020. Public sector banks (PSUs) are expected to grow their earnings by only 4%, the slowest increase in 19 quarters. Non-banking financial companies (NBFCs) might see a slight dip of 1% compared to last year.

Mahindra Logistics Q4 Expectations
Mahindra Logistics is expected to show a revenue growth of 16%, reaching Rs 1,680 crore. Their earnings before interest, tax, depreciation, and amortization (EBITDA) is expected to grow by 33% to Rs 75 crore, with margins improving slightly to 4.4%. They are predicted to make a profit of Rs 1.7 crore, bouncing back from losses both compared to last year and last quarter, according to estimates from Nuvama.

(Disclaimer: The opinions and views expressed are those of the experts and do not necessarily align with the views of Thellv.news)