Q4FY25 marked a fourth consecutive quarter of single-digit Nifty profit growth.
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Q4FY25 earnings wrap: how IT, banks, FMCG, auto and capital goods moved the Nifty
Nifty profits grew just 3% for a fourth straight single-digit quarter. Metals and capital goods carried the index; IT and consumer dragged. Here is the sector-by-sector scorecard.
The fourth-quarter results season for FY2025 is over, and the verdict is a familiar one: another single-digit profit quarter for corporate India. Nifty 50 profit after tax grew just 3% year on year — the fourth successive quarter of single-digit growth since the pandemic — though it did narrowly beat Motilal Oswal's estimate of 2% (Source: Economic Times / MOFSL, June 2025). The index-level number is dull. The sector dispersion beneath it is where the action was.
The leaders
Metals were the standout, with profit up around 45%, followed by consumer durables at roughly 37% and healthcare at 17% (Source: MOFSL / Financial Express, June 2025). Capital goods grew profits about 14%, comfortably ahead of the index, as capex-linked spending and improving order books supported industrials. These are the sectors that pulled the Nifty's aggregate into positive territory.
The drags
IT had its weakest quarter in recent memory. Sector revenue fell about 0.7% quarter on quarter in the MOFSL universe, and five of the top six IT firms missed estimates as tariff fears and macro uncertainty froze client spending; Infosys guided cautiously for FY26 at 0–3% constant-currency growth (Source: MOFSL / Financial Express, June 2025). FMCG revenue grew about 6.2% but profit slipped around 1% as weak demand met input-cost inflation. Private banks saw profit fall about 6% on compressed margins, even as PSU banks grew about 9% on strong loan growth.
The Nifty's 3% was an average of extremes: metals up 45%, private banks down 6%. The index number told you almost nothing.
Why the sector view matters
It matters because of concentration. Financial services alone make up about 37% of the Nifty by weight, with IT at 7.4%, autos at 6.7% and FMCG at 5.8% (Source: NSE Indices factsheet). When the largest bloc — financials — delivers a mixed quarter, the whole index inherits its mediocrity, regardless of how well metals or capital goods do. Autos, up about 8% on 6% revenue growth, quietly did their share, with Tata Motors among the top-five profit contributors.
What comes next
The forward view is more encouraging. Q1FY26 (April–June 2025) previews point to Nifty profit jumping around 12% year on year, driven by oil-marketing companies and BFSI, with NBFCs, chemicals, healthcare and industrials tipped to lead (Source: Equirus / Fortune India, July 2025). FMCG demand is expected to stay tepid and banking margins stable at best. The tracker's read on Q4FY25 is therefore of a trough quarter with a wide spread — the kind where the index disappoints but the right sectors reward, and where the aggregate number is the least useful figure in the report.
Sources
- Nifty PAT grew 3% in Q4FY25, beat Motilal Oswal estimates — Economic Times
- Q4 earnings report card: metals, PSU banks shine; IT, consumer lag — Financial Express
- Nifty 50 monthly factsheet — sector weights — NSE Indices
- Q1FY26 earnings preview: profits to jump 12% on OMC, BFSI — Fortune India / Equirus
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