April has arrived, and with it, the much-anticipated Q4 earnings season. Over the next few weeks, a flurry of financial results from major Indian firms will give investors a critical read on how corporate India wrapped up FY25, and what might lie ahead as we head into FY26.
The first week kicks off with big names and a mix of small- and mid-cap companies, all set to declare their performance for the January–March 2025 quarter. While some sectors may shine, others are entering this earnings cycle under a cloud of global uncertainty, margin pressure, and cautious forward guidance.
So, what should you be watching for?
TCS to Set the Tone for IT Services
All eyes are on Tata Consultancy Services (TCS), which will report its Q4FY25 results on April 10. As India’s IT bellwether, TCS often sets the tone for the entire IT pack.
In Q3, TCS posted healthy revenue growth and a strong $10.2 billion TCV (total contract value), thanks to disciplined execution and operational efficiencies. But Q4 may be trickier. Market watchers expect muted numbers this time, with persistent global uncertainty and soft discretionary IT spending in the West likely weighing on deal momentum.
That said, investors will pay close attention to management commentary, particularly on deal pipelines, client budgets, and hiring outlook, for cues on the health of the tech sector in FY26.
Mid & Small-Cap Earnings: Volatility Meets Opportunity
Beyond TCS, a number of smaller names will unveil their results this week:
- Anand Rathi Wealth (April 11): A key player in the wealth management space, its earnings will shed light on investor behavior amid recent market volatility.
- Transformers & Rectifiers (India) (April 8): A mid-cap industrial player whose results could offer insights into the broader capex and infrastructure trends.
- BF Utilities (April 9): Investors will be keen to see if this small-cap name has maintained financial discipline and capital efficiency in a choppy environment.
- OK Play India (April 9): Operating in the plastics segment, its performance may reflect input cost dynamics and rural demand strength.
- Padam Cotton Yarns (April 11): Results from this textile firm could signal trends in export demand, raw material pricing, and inventory management in the broader textiles space.
What the Street Expects
Broadly, expectations for Q4FY25 are moderate at best. According to market experts, earnings growth may face downward revisions, especially in export-facing and margin-sensitive sectors.
Here’s the pulse going into this earnings season:
- IT Sector: Soft performance expected. Margin pressures, global demand softness, and delayed client spends may impact earnings.
- Consumer-Facing Companies: FMCG and discretionary consumption may report steady growth, especially as raw material prices ease.
- Financials: Private banks and wealth managers could see solid performance driven by loan growth and stable asset quality.
- Industrial & Infra: Results here could reflect the ongoing momentum in India’s capex cycle. Expect a positive tone, especially if order books remain robust.
- Textiles, Chemicals, Exporters: These sectors could lag due to weak global demand and margin compression from input cost volatility.
Why This Earnings Season Matters More
This is not just another quarterly update. These earnings will provide:
- A health check of how corporate India exited FY25
- The first formal commentary on FY26 expectations
- A gauge of resilience in the face of global uncertainty, from Trump tariffs to inflation concerns in the U.S.
With the RBI policy, macro data, and geopolitical news continuing to drive sentiment, earnings may provide much-needed clarity—and possibly surprises.
Conclusion
As always, the headline numbers matter, but this quarter, the tone of commentary will be just as crucial. Are companies seeing demand recovery? Are input costs under control? Are order books filling up? Or are there signs of caution ahead?
For investors, this earnings season offers both opportunity and insight. Use it to recalibrate, reassess, and realign your portfolio as we transition into a new fiscal year—one that promises both challenges and potential.
Stay tuned. This quarter could set the stage for what’s next.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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