Despite a tough global economic environment, Indian companies have reported satisfactory performance in the fourth quarter of financial year 2025, according to a recent report by Bank of Baroda. The report highlights that most companies are optimistic about their future growth prospects, with potential for further improvement once consumption demand picks up in FY26.
### Key Highlights of Q4 Performance
– *Aggregate Net Sales*:
A sample of 1,893 companies reported a 5.4% increase in aggregate net sales.
– *Net Profits*:
Net profits rose by 7.6% due to controlled expenses and interest costs.
– *Debt Repayment Ability*: Companies’ debt repayment ability improved due to better financial management.
### Sectoral Performance
– *Infrastructure Sector*:
Steady growth was observed in sectors linked to infrastructure, despite being compared to a high base from last year.
– *Consumer-Related Sectors*: Strong rural demand and seasonal factors supported recovery in FMCG and consumer durables.
– *Services Sector*:
The services sector continued to grow at a steady pace, driven by strong demand.
### Challenges and Opportunities
– *Slowdown in Sales*:
Some large sectors like oil and gas, textiles, and iron and steel experienced a slowdown in sales, but this is likely a one-time occurrence.
– *BFSI Sector*:
The BFSI sector saw moderation in growth due to a slowdown in credit growth.
– *Growth Drivers*:
Stable commodity prices, low inflation, favorables monsoon outlook, trade agreements, government spending on infrastructure, and tax benefits are expected to drive growth and demand in the coming months.
### Outlook for FY26
– *Optimism*:
Companies remain positive about future growth prospects, with potential for further improvement once consumption demand picks up.
– *Supportive Policy Measures*: Government initiatives and RBI’s monetary policy are expected to support growth.
– *Domestic Demand*:
Strong domestic demand is likely to drive economic growth in FY26.
Some notable companies that have already released their Q4 results include:
– *Indian Hotels Company*: Reported a 25.02% growth in profit, with revenue from operations increasing by 27.28%.
– *Coforge*:
Reported a 16.76% growth in profit, with revenue from operations increasing by 47.08%.
– *Ethos*:
Reported an 8.18% growth in profit, with revenue from operations increasing by 23.29%.
– *Mahindra & Mahindra*:
Reported a consolidated Q4 revenue of Rs 9,914 crore, up 12%, with PAT in line with the previous year.
