After four years of high double-digit growth in profits, corporate earnings of Indian companies hit a speed bump in the April-June quarter of 2024 (Q1FY25), leading to the risk of a downward revision in India Inc profit estimates for FY25 and volatility in the equity market.

Earnings growth slowed despite companies in most non-financial sectors reporting higher operating margins from lower commodity prices and a decline in interest costs.

Sectorally, the earnings slowdown was largely led by oil & gas companies, non-bank lenders, fast-moving consumer goods, cement and iron & steel firms. By comparison, banks, automotive companies,

India Inc earnings slow down in Q1FY25 despite operating margin gains

The companies in our sample reported a combined net profit of Rs 3.39 trillion in Q1FY24, down 4.23 per cent from a record high quarterly net profit of Rs 3.54 trillion in Q4FY24