ET Intelligence Neighborhood: In a quarter tormented by the labour code modifications, which pulled down the working profitability of companies by 200-300 basis parts, opt consumer going by plan of sectors fared better amid festive demand and GST rate cuts. A sectorwise overview of the December quarter outcomes season to this level unearths that opt companies from autos, banking and finance, cement, and pharma companies reported buoyant performance. Within the approaching quarters, style in rural demand, progress on the US tariff linked measures and raw material costs will likely be important components to overview for.
Automobiles
Hits: GST rate cuts boosted sales volume for the sector. Maruti Suzuki India reported industry beating 22% 300 and sixty five days-on-300 and sixty five days leap in the home passenger autos volume. Tata Motors expanded home passenger autos (PV) market share to 13.8% from 12.8 in the earlier quarter.
Misses: Excessive enter costs along side copper and aluminium costs affected income margins of companies. Tata Motors reported consolidated fetch loss amid weaker performance of the UK subsidiary.
Outlook: Two-wheeler demand has remained firm in the first half of the March quarter driven by marriage season and rural offtake. Tractor sales, too, beget remained stable. On the opposite hand, the traction viewed in the entry-stage tiny autos after the GST rate nick looks to be to be ebbing step by step. Along with, discounts beget remained elevated for electric autos. Original model launches preserve key to high line thunder.
Revenue switch (YoY): -12%
Salvage income switch (YoY): -56.2%
Banking
Hits: Stress relating unsecured loans is waning step by step thereby helping to steal general asset quality.
Misses: Whereas fetch hobby margin (NIM) confirmed modest sequential development, 300 and sixty five days-on-300 and sixty five days weak point continued amid slower reset in the case of deposit charges as banks continued to spin for retail deposits. Also, microfinance linked disorders continued as visible from subdued performance of banks having exposure to this section.
Outlook: Corporate mortgage demand is picking up over once more, driven by rising investments in the inexperienced energy and datacentre segments. Along with, demand from housing, micro, tiny, and medium enterprises (MSME), and reviving momentum in private, unsecured loans is anticipated to preserve mortgage thunder in double digits for FY27 amid stable asset quality.
Revenue switch (YoY): 3.5%
Salvage income switch (YoY): 9.1%
Cement
Hits: Cement sales volume thunder remained in double digits riding the aggregate income thunder moreover in double digits 300 and sixty five days-on-300 and sixty five days. Ultratech posted stable thunder of around 35% on-300 and sixty five days in working income earlier to depreciation and amortisation (Ebitda) unlike some peers, driven by stable volume thunder and value optimisation.
Misses: Elevated enter costs amid mature pricing affected income per tonne of one of the critical crucial tip companies. Ambuja Cement and ACC reported lower profits and profitability,
Outlook: Continued focal level on capability enhancement by cement companies amid the authorities’s rising thrust on infrastructure style augurs successfully for future thunder doable. Also, initiatives taken up by companies to toughen assignment efficiency is probably going to present a boost to profitability in the medium and prolonged time duration.
Revenue switch (YoY): 14.8%
Salvage income switch (YoY): 51.1%
Particular person
Hits: Marico, Dabur India and Emami posted 3-9% 300 and sixty five days-on-300 and sixty five days volume thunder in the December quarter amid firm rural demand despite inventory disruption in October due to the GST rate cuts. Also, tighter cost management and selective label amplify helped Dabur and Emami to submit 31-34% working margin
Misses: Marico posted 240 basis level topple in working profitability to 16.7% 300 and sixty five days-on-300 and sixty five days, tormented by higher enter costs.
Outlook: A volume led thunder is anticipated in FY27 amid moderating raw material inflation. Dabur India expects to advance assist to 20% working profitability when in contrast with 18-19% over the last three years. For ITC, cigarette volumes have a tendency to endure due to the higher taxes; thunder in non-tobacco segments will likely be in focal level.
Revenue switch (YoY): 13.6%
Salvage income switch (YoY): 6.9%
Records Skills
Hits: High companies reported better than anticipated income and income figures for a historically mature quarter due to the holidays. HCLTech reported nine-quarter high original instruct bookings value $3,005 million. HCLTech and Infosys raised income steering marginally for FY26
Misses: The danger for primitive projects remains cloudy amid heightened geopolitical and international trade linked uncertainties.
Outlook: Firms are increasing collaborations with global abilities companions to address the changing nature of consumer choices. The 20-300 and sixty five days tax holiday for datacentre enterprise is probably going to power extra investments on this section.
Revenue switch (YoY): 9.3%
Salvage income switch (YoY): -7.5%
Oil and gasoline
Hits: The consolidated Ebitda margin of Reliance Industries (RIL) crossed double digits for the first time in seven quarters amid stable performance from oil-to-chemical substances (O2C) division amid higher realisation and home sales of gasoline products.
Misses: RIL’s retail section reported weak point due to the a shift in festive season when in contrast with the prior 300 and sixty five days. HPCL’s Mumbai refinery confronted crude contamination arena in October, which pulled down the final refining margin and affected the firm’s profitability
Outlook: RIL’s telecom section is probably going to state stable performance. Analysts beget reduced earnings forecast of GAIL for FY26-28 citing lower marketing margins and weak point in the petrochemicals section.
Revenue switch (YoY): 6.7%
Salvage income switch (YoY): forty eight.3%
Pharma
Hits: Solar Prescription medications reported multi-quarter high Ebitda margin for the December quarter, aided by buoyant home sales. margin growth and an amplify in market share to 8.3% from 8% 300 and sixty five days-on-300 and sixty five days in the Indian market. Combination high line thunder remained at around 10% 300 and sixty five days-on-300 and sixty five days for the ninth consecutive quarter.
Misses: The US enterprise become beneath stress amid decline in Revlimid volume. Cipla has downgraded the Ebitda margin steering to 21% for FY26 from 22.75-24%.
Outlook: Original choices will likely be a key ingredient for home pharma companies. Cipla expects four critical respiratory launches by the quit of FY27, along side generic Advair and two respiratory remedy. For Dr. Reddy’s Laboratories, a portfolio of biosimilars and GLP-1 choices supplies income visibility.
Revenue switch (YoY): 12.7%
Salvage income switch (YoY): 0.8%
