MUMBAI : Large-cap companies demonstrated stronger earnings growth compared to their mid and small-cap counterparts, with overall EBITDA and Earnings surpassing expectations in the last quarter of fiscal 24-25 according to an analytical report issued by leading brokerage firm Equirus Securities.
While the popular discourse has been around earnings cuts the report reveals that the universe of 270 leading stocks analysed indicates a robust performance, with EBITDA and Earnings exceeding estimates by 4% and 5% respectively. This translated into a year-on-year (YoY) growth of 6% in EBITDA and 4% in Earnings. Revenue remained largely in line with expectations, registering a 5% YoY increase.
A deeper dive into the market capitalization segments reveals a clear divergence:
- Large Caps (54 companies) within the Equirus Universe reported a healthy 6% YoY earnings growth.
- Mid Caps (68 companies) experienced a more modest 2% YoY increase.
- In contrast, Small Caps (148 companies) saw a significant 16% YoY decline in earnings.
This disparity underscores a flight to quality or a consolidation trend favoring larger, more established entities in the current economic environment.
Sectoral Performance Insights: Excluding Oil Marketing Companies (OMCs), the Equirus Universe reported EBITDA and Earnings growth of 5% and 3% YoY. The ex-BFSI (Banking, Financial Services, and Insurance) sector delivered even higher growth, with 7% and 6% YoY in EBITDA and Earnings respectively. Sectors such as Retail, Pharma, Capital Goods, and Consumer Durables exhibited high operating profit growth. Conversely, FMCG, Infrastructure, IT, and Auto sectors reported lower growth.
| Q4 FY 24-25 | Large Caps | Mid Caps | Small caps |
| YOY Earnings growth in % | 6 | 2 | -16 |
Source: Equirus Securities
| Top performing Sectors under Equirus universe | Q4 FY 24-25 Revenue growth in % | Q4 FY 24-25 PAT growth in % |
| Autos | 8 | 1 |
| Auto ancillaries | 13 | 2 |
| Cement | 9 | 10* |
| Chemicals | 10 | 46 |
| Consumer Durables | 19 | 31 |
| Healthcare | 12 | 13 |
| Internet | 48 | 37 |
*EBITDA growth Source: Equirus Securities
| Lagging sectors under Equirus universe | Q4 FY 24-25 Revenue growth in % | Q4 FY 24-25 PAT growth in % |
| Building Materials | 6 | -18 |
| Consumer Staples | 6 | -7 |
| Industrials | 6 | 2 |
Source: Equirus Securities
Earnings Per Share (EPS) Updates: Around 28% of companies saw EPS upgrades for FY26, driven primarily by strong performance in sectors like Capital Markets, Chemicals, Defence, Metals, and Textiles. In contrast, Consumer Durable, FMCG, and Building Materials sectors experienced EPS downgrades, indicating potential headwinds in these segments.
Outlook: Looking ahead, Equirus Securities offers a cautiously optimistic outlook. While some sectors may continue to face challenges from pricing pressures, input costs, and demand volatility, strategic initiatives like cost savings, new product introductions, and market expansion efforts are expected to support overall profitability and growth. The performance of Large Caps reinforces their resilience in a dynamic market, suggesting continued stability in the near term.
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