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Alembic Pharma Q4 FY25: Profit Slips 12% Despite Strong Revenue Growth
Result Updates - May 9, 2025

Alembic Pharma Q4 FY25: Profit Slips 12% Despite Strong Revenue Growth

Alembic Pharma Q4 FY25: Profit Slips 12% Despite Strong Revenue Growth

 

Alembic Pharmaceuticals Ltd., one of India’s established pharmaceutical companies, announced its financial results for the fourth quarter of the fiscal year 2024–25 (Q4 FY25), showcasing a mixed performance. While the company achieved robust revenue growth of 17% year-on-year (YoY), its net profit slipped 12%, reflecting the challenges of operating in a highly competitive and regulated global pharmaceutical landscape.
In Q4 FY25, Alembic Pharma reported consolidated revenues of ₹1,770 crore, a significant increase from ₹1,513 crore in the same quarter of the previous year. This growth was primarily driven by a strong performance in the US generics segment and stable growth in the domestic branded formulations business. However, the quarter’s net profit dropped to ₹155 crore from ₹176 crore in Q4 FY24, indicating pressure on operating expenses and margins.
Revenue Drivers and Segment Performance

Domestic Branded Business

In Q4 FY25, Alembic’s India division, which accounts for a significant portion of its total sales, reported a 3% YoY gain, bringing in ₹614 crore. The growth was attributed to increased traction in specialty therapies, including gynecology, cardiology, anti-diabetics, and ophthalmology segments. Alembic has been investing in strengthening its field force and expanding its presence in tier 2 and tier 3 markets, which is gradually reflecting in its numbers.
The company’s consistent focus on specialty therapeutic areas is seen as a positive shift from the generic-heavy approach, helping build long-term brand value and prescription stickiness among healthcare providers.

US Generics Business

Revenue for the US generics business reached ₹521 crore during the quarter, indicating a robust 10% YoY rise. The US continues to be a strategic market for Alembic, supported by the timely launch of new products and a focus on niche complex generics. During Q4, the company launched two products in the US, and with over 20 launches planned for FY25, Alembic expects this momentum to continue.
The company’s recently commercialized manufacturing facilities in Jarod and Karkhadi are expected to play a crucial role in supporting future growth in the US by expanding capacity and regulatory compliance.

Ex-US International Generics

Outside the US, the company’s international generics business—serving regions such as Europe, Canada, Australia, and emerging markets—recorded a 10% YoY growth with revenue of ₹299 crore. Growth in this segment was led by increased demand for select products and the gradual expansion of product offerings across therapeutic categories.

Active Pharmaceutical Ingredients (API) Business

Q4 saw a decline in Alembic’s API business, in contrast to its formulation segments. The API segment generated ₹259 crore in revenue, registering a 10% YoY decline. The dip was attributed to softening global demand, increased competition, and pricing pressures in certain key molecules. Due to destocking efforts, several of Alembic’s API clients in regulated markets also decreased their purchases.
Despite the short-term decline, management remains optimistic about the API business, especially with long-term backward integration plans and differentiated API development.

Profitability and Margins

While revenue growth was solid, profitability faced headwinds. EBITDA for the quarter stood at ₹269 crore, and the EBITDA margin came in at 15.2%, down from 17.5% in the year-ago period. The fall in profit and margin was largely driven by elevated operational expenses, pricing pressure in select international markets, and an increase in R&D spend.
Approximately 8.8% of total sales, or ₹156 crore, was spent on research and development during the quarter. This investment is part of Alembic’s long-term strategy to enhance its complex generics pipeline, particularly in the US market. The company currently has over 180 ANDAs filed with the US FDA, with 126 approvals already received.
Management Commentary and Strategic Direction
Commenting on the results, Mr. Shaunak Amin, Managing Director of Alembic

Pharmaceuticals, stated:

“India’s branded business continues to improve its execution capabilities in both quality and scale. The animal health and specialty markets grew rapidly. The US business outlook appears optimistic, with the commercialization of new facilities and a healthy pipeline of upcoming launches. We are committed to improving cost structures and enhancing profitability going forward.”
Alembic aims to improve its EBITDA margin in the coming quarters by focusing on operational efficiencies, rationalizing R&D expenses, and leveraging scale across its manufacturing platforms. With the US pipeline maturing and global demand for complex generics rising, the company is well-positioned for steady growth over the next two to three years.

Outlook for FY26

In the future, Alembic is still committed to growing its holdings in regulated markets and taking advantage of new product introductions in the US. Its strong ANDA pipeline, expanding international footprint, and capacity additions through new facilities offer visibility for medium-term growth. However, inflationary cost pressures and regulatory hurdles in overseas markets will need careful management.

Conclusion

Alembic Pharma’s Q4 FY25 performance reflects a transitionary phase—while top-line growth is strong, profitability pressures persist. The company’s continued investments in specialty formulations and complex generics, coupled with a long-term vision, are likely to bear fruit as the macroeconomic environment stabilizes and regulatory approvals increase. For investors and stakeholders, the story ahead hinges on execution, especially in high-margin markets like the US.

 

 

 

 

 

 

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Profit Surge Heats Up Blue Star’s Q4: ₹9 Dividend to Cool Investors

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Profit Surge Heats Up Blue Star’s Q4: ₹9 Dividend to Cool Investors
Result Updates - May 8, 2025

Profit Surge Heats Up Blue Star’s Q4: ₹9 Dividend to Cool Investors

Profit Surge Heats Up Blue Star’s Q4: ₹9 Dividend to Cool Investors

Fueled by strong summer demand and a healthy order book, Blue Star announced a more than 20% year-on-year increase in revenue and profit for Q4 FY25. The impressive growth in room air conditioners and project businesses helps maintain momentum into FY26.

Summary:

Blue Star Ltd announced a consolidated net profit of ₹194 crore for Q4 FY25, reflecting a year-on-year increase of 21.5%. This growth was driven by strong demand during the summer months and strategic inventory management by distributors. Revenue from operations grew by 20.8% compared to the previous year, totaling ₹4,018.96 crore. For the entire fiscal year, the company’s net profit surged by 42.7% to ₹591 crore, alongside a revenue achievement of ₹11,976 crore. Blue Star’s board proposed a final dividend of ₹9 per share, underscoring the company’s robust financial position.

Q4 FY25 Results: Robust Growth Driven by Room AC Demand and Project Execution

Blue Star Limited’s performance in the fourth quarter of FY25 showcased robust operational execution and continued consumer interest, especially in its Unitary Products and Electro-Mechanical Projects segments. The company posted consolidated revenue of ₹4,018.96 crore for Q4 FY25, reflecting a 20.8% increase compared to ₹3,327.77 crore in Q4 FY24. The net profit, excluding exceptional items, surged by 21.5% to ₹194 crore, up from ₹159.71 crore in the same quarter the previous year.
Operating profit (PBIDTA excluding other income) rose 15.5% year-on-year to ₹279.40 crore, although the margin slightly declined from 7.3% to 7.0%. This drop was mainly due to increased promotional expenditures in the room air conditioning sector and rising input costs. Nevertheless, the overall operating leverage remained healthy.
Before accounting for exceptional items, the Profit Before Tax increased by 16.2% YoY, reaching ₹248.82 crore. At the same time, other income nearly doubled to ₹23.99 crore, indicating enhanced treasury performance driven by a larger cash surplus.

Full-Year FY25 Performance: Revenue Crosses ₹12,000 Crore Milestone

Blue Star reported a consolidated revenue of ₹11,976.65 crore for FY25, marking a 23.6% year-on-year increase from ₹9,685.36 crore in FY24, highlighting robust growth across its main sectors. The company’s net profit surged by 42.7% year-on-year to ₹591.28 crore, supported by operational efficiencies and a gain of ₹10.37 crore from exceptional items.
Operating profit for FY25 reached ₹875.92 crore, reflecting a 31.8% year-on-year increase and boosting the operating margin to 7.3%. The Earnings Per Share (EPS) grew to ₹28.76, up from ₹20.77 in the previous year.
Finance costs declined 16% year-on-year to ₹48.80 crore due to reduced borrowings and effective working capital management.The company closed the fiscal year with a strong net cash position of ₹640 crore.

Segment Performance: Room AC Business Shines Bright

-Unitary Products Segment: Revenue grew by 22.4% to ₹5,621 crore, with segment profits rising by 30.8% to ₹471.26 crore. The growth was driven by robust channel stocking ahead of summer and the introduction of new premium air conditioning products.
-Electro-Mechanical Projects & Commercial Air Conditioning: Revenue increased by 27.2% to ₹5,998 crore, while profits soared by 43.9% to ₹490.88 crore. This growth was fueled by strong demand from data centers, manufacturing, healthcare, and hospitality sectors. However, commercial real estate and banking, financial services, and insurance (BFSI) segments showed slow performance.
-Professional Electronics & Industrial Systems: This segment encountered challenges, with revenue falling by 7.7% to ₹348.55 crore and profits declining by 42.3% to ₹29.72 crore, mainly due to weak demand in the Data Security and Med-Tech sectors.

Dividend and Shareholder Updates

The board has announced a final dividend of ₹9 per share for FY25, which marks an increase from the ₹7 dividend declared the previous year. The company’s 77th Annual General Meeting (AGM) is on August 6, 2025. The record date to be eligible for the dividend is July 18, 2025, with book closure from July 19 to August 6.

Brokerages Maintain Positive Outlook

Brokerages are optimistic about Blue Star’s prospects. The company boasts a solid order book of ₹6,263 crore, representing a 9.9% increase year-on-year. Analysts expect ongoing earnings growth due to the rising demand for cooling solutions influenced by climate change. Blue Star’s strategic emphasis on innovation, a robust supply chain, and customer-focused solutions is vital for sustainable growth.
Nuvama continues to endorse a “buy” rating for the stock and has updated its target price to ₹1,550. They highlight strong earnings visibility, a trend towards premium products in consumer appliances, and a rise in capital expenditure from government and private sectors in infrastructure as significant contributors.

Future Outlook: Optimism Tempered by Market Volatility

Chairman and Managing Director Vir S. Advani stated, “We’re proud to achieve our third consecutive year of remarkable performance. Although April 2025 started slowly due to milder temperatures, we anticipate strong demand in May and June. The challenges in Commercial Refrigeration are now behind us. With our updated product range and the growth of market segments such as data centers and healthcare,” we are confident in our outlook.”
He also emphasized that the company closely monitors geopolitical risks, fluctuations in global commodity prices, and supply chain issues. Despite these challenges, the company is dedicated to enhancing its manufacturing capabilities and maintaining Star’s leadership position in the Indian Market.

Conclusion

Blue Star’s fourth quarter and full year 2025 results highlight the company’s strong business fundamentals, it’s capacity to adapt to economic fluctuations and its enhanced commitment to innovation and operational excellence. With impressive growth across various segments, a growing product portfolio, and a management set, Blue Star is strategically positioned for ongoing growth in fiscal year 2026. The proposed ₹9 dividend demonstrates management’s confidence in creating shareholder value.

 

 

 

 

 

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 Dr. Reddy’s Laboratories Stock Slides Amid High Trading Volumes

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Voltas Q4 FY25: Profit More Than Doubles to ₹241 Crore, Dividend Declared
Result Updates - May 8, 2025

Voltas Q4 FY25: Profit More Than Doubles to ₹241 Crore, Dividend Declared

Voltas Q4 FY25: Profit More Than Doubles to ₹241 Crore, Dividend Declared

 

Voltas Ltd., a leading provider of air conditioning and engineering solutions, part of the prestigious Tata Group, has posted outstanding financial results for the fourth quarter (Q4) of fiscal year 2025 (FY25). The company has reported a net profit of ₹241 crore, which is more than double the ₹116 crore earned in the same quarter last year. This noteworthy 108% year-over-year (YoY) increase illustrates Voltas’ tenacity and fortitude, even in the face of the uncertain 2025 economic environment.
Alongside this impressive profit surge, Voltas has also announced a dividend of ₹7 per share for its shareholders, underlining its commitment to delivering value to investors. The board’s decision to recommend a substantial dividend shows the company’s solid financial health and operational efficiency.

Key Financial Highlights for Q4 FY25

• Revenue Growth: Voltas has registered a 13.42% increase in revenue, rising from ₹4,203 crore in Q4 FY24 to ₹4,767 crore in Q4 FY25. This increase underscores the company’s robust market performance and its ability to generate consistent revenues across its business segments.
• EBITDA Surge: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 74.6% to ₹332.8 crore for the firm, up from ₹191 crore for the same period last year. This remarkable increase in operational profit demonstrates how well Voltas’ operations run and how it can control expenses while boosting its capacity to generate income.
• Operating Margin: Voltas also saw a significant improvement in its operating margin, which increased to 7% from 4.5% in Q4 FY24. This increase highlights the company’s ability to manage its costs while improving profitability, even as the market conditions have been challenging.

Segment Performance: Driving Growth

Voltas operates in two major segments: Unitary Cooling Products (UCP) and Electro-Mechanical Projects and Services (EMPS). Both segments have contributed significantly to the company’s growth in Q4 FY25, showcasing the diversity and stability of Voltas’ revenue streams.
• Unitary Cooling Products (UCP): The UCP segment, which includes Voltas’ air conditioning and refrigeration solutions, has continued to perform well in the market. In Q4 of FY25, this segment’s revenue jumped to ₹892 crore, a significant rise over the ₹693 crore it generated in the same period the previous year. This growth can be attributed to the rising demand for cooling solutions, especially during the peak summer months, and Voltas’ strong brand presence in the Indian market. The company’s innovative offerings and emphasis on energy-efficient solutions have helped it gain a competitive edge in this fast-growing segment.
• Electro-Mechanical Projects and Services (EMPS): The EMPS segment, which deals with large-scale infrastructure projects, also posted strong results, with revenue rising by 13% to ₹4,157 crore for FY25, compared to ₹3,683 crore in FY24. This segment’s growth reflects the increasing demand for infrastructure solutions, especially in the fields of HVAC (Heating, Ventilation, and Air Conditioning), refrigeration, and other engineering services for large commercial and industrial projects. Voltas’ ability to execute complex projects efficiently has allowed it to capitalize on the growing infrastructure boom in India and other regions.

Dividend Declaration: A Shareholder-Friendly Move

Reaffirming its dedication to long-term shareholder value, the Voltas board has recommended a dividend of ₹7 per equity share for FY25. The dividend announcement comes as a reflection of the company’s strong cash flow and profitable operations, enabling it to reward shareholders. This dividend recommendation aligns with Voltas’ consistent track record of providing stable returns to its investors, and it will further enhance investor sentiment and confidence in the company’s long-term growth prospects.
The dividend payout is expected to be approved at the company’s annual general meeting (AGM), and Voltas has yet to announce the record date for the dividend. This decision aligns with Voltas’ ongoing strategy of rewarding investors while continuing to reinvest profits into expanding its operations and developing new business avenues.

Market Performance: Investor Confidence in Voltas

Following the announcement of its impressive financial results, Voltas’ stock price saw a positive movement in the market. The company’s shares rose by over 3% on the Bombay Stock Exchange (BSE), reflecting strong investor confidence. This growth in stock price can be attributed to the company’s strong financial performance, the doubling of profits, and the dividend declaration, all of which have positively impacted investor sentiment.
Investors have shown optimism about Voltas’ ability to sustain its growth momentum, particularly in the air conditioning and engineering solutions markets, which are expected to continue expanding in the coming years. The company’s focus on energy-efficient solutions and innovative product offerings has positioned it well to benefit from growing trends in sustainability and green building solutions.

Conclusion: A Promising Outlook

Voltas’s success in Q4 FY25 shows that it can take advantage of market possibilities and adapt to changing market conditions. The company’s more than doubling of profits, coupled with a solid revenue increase, reflects its strong operational execution and effective market strategy. The dividend declaration further reinforces its commitment to shareholder value, making Voltas a solid choice for investors seeking stable returns.
Looking ahead, Voltas is well-positioned to maintain its growth trajectory, driven by strong demand in both the cooling products segment and the infrastructure services sector. The company’s focus on innovation, sustainability, and operational efficiency will continue to play a crucial role in its future success.

 

 

 

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Pace 360’s Bold Move: YES Bank Shares Expected to Yield 15-20% Returns

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Sonata Software Sees Solid Q4 Revenue Rise, Minor Profit Decline
Result Updates - May 8, 2025

Sonata Software Sees Solid Q4 Revenue Rise, Minor Profit Decline

Sonata Software Sees Solid Q4 Revenue Rise, Minor Profit Decline

 

The tech services firm announces ₹4.4 per share dividend as it strengthens its position with robust top-line growth and strategic global deals

Introduction

Sonata Software, a prominent player in the digital transformation and IT services sector, has reported a healthy rise in its revenue for the fourth quarter of the financial year 2024–25. Despite a modest drop in net profit, the company’s continued growth in international markets, successful client acquisitions, and strong dividend payout underline a confident and resilient performance.

Revenue Rises Over 19% YoY

During the fourth quarter of fiscal year 2025, Sonata Software generated ₹2,617.2 crore in consolidated revenue, reflecting a growth of over 19% compared to the same quarter in the previous fiscal year. The increase reflects the company’s robust pipeline of enterprise deals and growing demand for its IT and digital transformation services across key geographies.
Much of the company’s revenue boost can be attributed to a surge in its international IT services business, which continues to drive Sonata’s topline. As more global enterprises accelerate their cloud adoption, AI integration, and digital workflows, Sonata has positioned itself as a go-to partner for scalable and efficient solutions.

Net Profit Records Marginal Decline

Sonata Software earned ₹107.5 crore in net profit for Q4 FY25, which is around 3% lower than what it made in the same quarter a year ago, despite solid revenue growth.
This minor dip was due to higher operational costs and increased investment in new strategic initiatives, including talent acquisition and technology upgrades.
However, on a quarter-on-quarter basis, the profit showed a 2% improvement, signaling stability in earnings and the ability to sustain profitability despite competitive industry pressures.

Final Dividend Declared at 440%

Sonata Software announced a final dividend of ₹4.4 per share for FY25, showing its aim to share profits and maintain steady returns for its shareholders.
This payout, which reflects 440% on a face value of ₹1, highlights the company’s continued focus on creating shareholder value even while investing in long-term growth opportunities.
This move comes after a steady track record of dividend declarations by the company and further demonstrates its strong cash position and commitment to distributing profits responsibly.

Share Price Reacts Positively

After the earnings report, Sonata Software’s stock rose by almost 5% in market trading.
The markets responded favorably not just to the revenue growth but also to the company’s execution capabilities, resilient profit margins, and forward-looking dividend declaration.
The uptick in share price also signals investor confidence in the firm’s global expansion strategy and its ability to secure high-value tech transformation contracts.

International Expansion and Strategic Wins

Sonata has made significant inroads in international markets, especially in the US and Europe, with two major client acquisitions during the quarter. These wins reinforce the company’s strengths in delivering complex IT services to enterprise clients looking to modernize operations.
The company’s management emphasized its intent to keep investing in digital capabilities, artificial intelligence, cloud solutions, and customer experience platforms — areas that are critical to its global clients’ business transformation goals.
Sonata also noted a notable improvement in EBITDA margins for its international operations, signaling increased operational efficiency and better resource allocation.

Focus on Technology-Led Growth

With technology at the heart of its strategy, Sonata is committed to deepening its offerings in data-driven digital services. The company continues to focus on building solutions around AI, automation, cloud-native development, and modern enterprise platforms like Microsoft Dynamics and SAP.
Its integrated approach to digital engineering and business IT has helped the firm create value-added services that go beyond traditional outsourcing, offering transformation at scale.

Conclusion

Sonata Software’s fourth-quarter performance for FY25 paints a picture of a company that is growing in both size and strategic focus. While net profit saw a slight year-on-year dip, the significant increase in revenue and solid dividend payout reflect underlying strength.
With momentum from key international deals, increasing EBITDA margins, and a technology-first growth model, Sonata is poised to further strengthen its presence in the global IT services landscape.
Investors, analysts, and stakeholders are likely to view the company’s performance as a mix of prudent financial management and strategic foresight — an encouraging sign for future quarters.

 

 

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FIIs Extend 15-Day Bull Run, Markets Steady Despite Operation Sindoor

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India’s E-Bus Revolution Gets $137 Million IFC Backing
Result Updates - May 8, 2025

JBM Auto's EV Growth Produces Excellent FY25 Results

JBM Auto’s EV Growth Produces Excellent FY25 Results

 

JBM Auto Delivers Robust FY25 Results, Declares Dividend, and Accelerates EV Expansion

JBM Auto Limited, a prominent player in India’s automotive and electric mobility space, has reported a strong financial performance for the fourth quarter and the full fiscal year ending March 31, 2025 (FY25). The company’s results reflect solid momentum across its core segments, improved operational efficiencies, and strategic positioning in the fast-growing electric vehicle (EV) industry.

Q4 FY25 Performance: Growth in Revenue and Profitability

For the January–March 2025 quarter, JBM Auto recorded a total net profit of ₹66.34 crore, up 19% year over year from ₹55.75 crore in Q4 FY24. The company’s operational revenue for the same time last year was ₹1,645.70 crore, which represents a 10.75% increase over ₹1,485.95 crore. Higher domestic demand, more orders coming in, and robust traction in its electric mobility category all contributed to this impressive success. The company also reported an EBITDA of ₹213.60 crore, which was 20.56% more than ₹177.18 crore at the same time previous year. The EBITDA margin rose 50 basis points to 12% in the fourth quarter of FY25. The quarter’s profits per share (EPS), which rose to ₹2.81 from ₹2.36 a year earlier, also showed stronger shareholder returns.

FY25 Annual Results: Continued Growth Trajectory

JBM Auto’s net profit for the year was ₹201.91 crore, 12.91% more than the ₹178.83 crore it earned in FY24. In FY21, the company’s total revenue was ₹5,525.91 crore, up more than 9.87% from FY24’s ₹5,029.67 crore. Over the course of the fiscal year, the EPS rose from ₹7.56 to ₹8.54.

Dividend Announcement: Confidence in Financial Stability

The Board of Directors of JBM Auto declared a final dividend of ₹0.85 per share for FY25, subject to approval at the next Annual General Meeting (AGM), reflecting the company’s sound financial standing and dedication to shareholder returns. Despite the capital-intensive nature of the automotive and electric vehicle industries, the company’s confidence in its profits visibility and future cash flow creation is demonstrated by this dividend distribution.

Segment-Wise Performance: OEM and Components Drive Growth

Among the key business segments:
• The OEM division saw revenues rise 18.11% year-on-year to ₹745.80 crore.
• The component division reported a 5.91% increase, bringing in ₹827.34 crore.
• The tool room division recorded a marginal decline of 0.1%, with revenues at ₹73.07 crore.
These figures highlight broad-based growth in manufacturing and supply chain operations, with the OEM segment benefiting from rising demand in the commercial and electric vehicle categories.

EV Segment: Order Wins Fuel Long-Term Prospects

One of the quarter’s major highlights was JBM Auto’s ₹5,500 crore deal for 1,021 electric buses under the PM e-bus Sewa Scheme-2. The company’s position as a major force in India’s EV revolution is cemented by this order. Both governmental transportation projects and private fleet operators have shown a great deal of interest in its electric bus brand, JBM ECO-LIFE.
The company is now ramping up capacity and infrastructure to meet the growing demand, while also investing in charging solutions, telematics platforms, and battery systems to offer a holistic EV ecosystem. These efforts are aimed at reinforcing its leadership in sustainable mobility and enhancing long-term growth prospects.

Future Outlook: Innovation, Expansion, and Export Potential

Looking ahead, JBM Auto is focused on expanding its EV portfolio to include electric light commercial vehicles (e-LCVs) and smart mobility solutions tailored for urban infrastructure. It is also exploring export opportunities in Southeast Asia, the Middle East, and Africa, capitalizing on the global push toward decarbonized transport.
With a strong order book, improved operational efficiencies, and consistent R&D investment, the company is well-positioned to scale new heights. Collaborations with mobility start-ups and technology partners are expected to accelerate innovation, enabling faster go-to-market strategies for next-generation vehicles.

Stock Performance and Analyst Views

Post-results, JBM Auto’s stock experienced moderate movement. Analysts remain bullish on its long-term prospects, citing its strategic EV investments, steady revenue growth, and robust financials. Brokerages like HDFC Securities and ICICI Direct maintain a positive stance on the stock, highlighting its potential to deliver value amid industry transformation.

Conclusion: Strong Fundamentals with Future-Ready Focus

In India’s fast-paced automotive industry, JBM Auto’s Q4 and FY25 performance attest to its standing as a high-performing, innovation-driven business. JBM Auto is well-positioned to take the lead in the nation’s shift to environmentally friendly transportation because to its increasing sales, better profit margins, and expanding electric vehicle footprint.

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DMart Maintains Solid Growth Amid Margin Pressures and Fierce Retail Rivalry

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DMart Maintains Solid Growth Amid Margin Pressures and Fierce Retail Rivalry
Result Updates - May 7, 2025

DMart Maintains Solid Growth Amid Margin Pressures and Fierce Retail Rivalry

DMart Maintains Solid Growth Amid Margin Pressures and Fierce Retail Rivalry

Avenue Supermarts Limited

Company Overview

Avenue Supermarts Ltd., the parent company of DMart, continues to hold a significant position in India’s organized value retail market. Guided by its EDLC–

EDLP (Everyday Low Cost – Everyday Low Price) strategy, the company delivered a robust revenue growth of 16.7% in FY25, reaching ₹57,790 crore, while expanding its store base to 415 outlets. Despite strong top-line

performance, EBITDA margins compressed due to inflationary pressures, wage hikes, and intensifying competition in the FMCG segment. The company remains committed to expanding its digital footprint through DMart Ready and broadening its geographic reach. However, evolving market dynamics and operational costs present headwinds for near-term profitability.

Founded by veteran investor Mr. Radhakishan Damani in 2000, Avenue Supermarts has scaled rapidly while adhering to a cost-conscious retail model. Under the leadership of Mr. Neville Noronha, the company has become synonymous with operational efficiency and value pricing. DMart’s operations are divided across:

• Foods – 56% of revenue
• Non-food FMCG – 21%
• General Merchandise & Apparel – 23%

As of March 2025, DMart operated 415 stores, covering 17.2 million sq. ft. of retail space. The company’s tight control over its

Price performance (%) CAGR 1Yr. 5Yr. 10Yr.
Nifty 8.78 21.06 11.7
NSE Mid-cap 7.3 33.6 16.1
NSE Small-cap (1.9) 33.6 12.1

supply chain and pricing strategy supports high inventory turnover and strong customer loyalty.

Industry Overview

India’s organized retail segment is on a growth trajectory, projected to expand at a CAGR of 9–10% over the next five years. DMart’s focus on grocery and daily essentials gives it a stable market foundation. However, this space is being rapidly reshaped by e-commerce entrants like JioMart, Amazon Fresh, Blinkit, and Swiggy Instamart, which are eroding traditional retailers’ margins through deep discounting and convenience-based offerings. Rising input costs, wage inflation, and urban rental expenses further add to industry-wide margin pressures

 

Particulars FY24 FY25 YoY Change
Revenue (₹ crore) 49,533 57,790 +16.7%
EBITDA (₹ crore) 4,101 4,543 +10.8%
EBITDA Margin (%) 8.3% 7.9% -40 bps
Net Profit (₹ crore) 2,695 2,927 +8.6%
Net Profit Margin (%) 5.4% 5.1% -30 bps
Basic EPS (₹) 41.43 44.98 +8.6%
Store Count (Nos.) 365 415 +50
Retail Area (mn sq. ft.) 15.7 17.2 +1.5

Financial Performance Overview

During FY25, Avenue Supermarts Ltd. reported a healthy 16.7% year-on-year growth in revenue, increasing from ₹49,533 crore in FY24 to ₹57,790 crore. This growth was largely driven by strong traction across existing stores and supported by aggressive store expansion during the year. However, profitability growth was comparatively moderate. EBITDA for the year stood at ₹4,543 crore, registering a 10.8% increase over the ₹4,101 crore reported in FY24. Despite this absolute growth, EBITDA margins experienced a contraction of 40 basis points, declining from 8.3% in FY24 to 7.9% in FY25. This margin pressure is primarily attributed to rising wage costs, higher operational expenses, and increased competitive intensity in the FMCG segment, which constitutes a significant share of DMart’s revenue.

Net profit for FY25 rose by 8.6%, moving from ₹2,695 crore in FY24 to ₹2,927 crore, in line with the EBITDA trajectory. Correspondingly, the net profit margin narrowed by 30 basis points, dipping from 5.4% in FY24 to 5.1% in FY25. The earnings per share (EPS) increased from ₹41.43 to ₹44.98, reflecting the modest growth in net income. On the operational front, the company added 50 new stores during the year, bringing the total count to 415 stores, up from 365 in FY24. The total retail area expanded from 15.7 million square feet to 17.2 million square feet, marking an addition of 1.5 million square feet. This store network expansion aligns with the company’s strategy of increasing its physical footprint in both established and emerging urban centers across India.

Particulars FY24 FY25 YoY Change
Revenue (₹ crore) 49,533 57,790 +16.7%
EBITDA (₹ crore) 4,101 4,543 +10.8%
EBITDA Margin (%) 8.3% 7.9% -40 bps
Net Profit (₹ crore) 2,695 2,927 +8.6%
Net Profit Margin (%) 5.4% 5.1% -30 bps
Basic EPS (₹) 41.43 44.98 +8.6%
Store Count (Nos.) 365 415 +50
Retail Area (mn sq. ft.) 15.7 17.2 +1.5

Q4 FY25 Performance Snapshot

In the fourth quarter of FY25, Avenue Supermarts reported a 16.6% year-on-year increase in revenue, rising to ₹14,462 crore from ₹12,409 crore in Q4 FY24. This robust top-line growth was primarily driven by sustained consumer demand and the incremental revenue contribution from new store additions over the past year. Despite the revenue uptick, operating profitability faced pressure during the quarter. EBITDA declined by 3.9% to ₹981 crore, compared to ₹1,021 crore in the same quarter last year, indicating margin headwinds amid rising wage costs and elevated operating expenses, especially in the core FMCG category. Consequently, EBITDA margins contracted on a year-over-year basis.

Net profit for Q4 FY25 came in at ₹620 crore, reflecting a modest 1.6% growth from ₹610 crore in Q4 FY24. However, the PAT margin saw a decline of 60 basis points, dropping from 4.9% to 4.3%. This margin compression underlines the growing cost pressures and heightened competitive environment, which are weighing on the company’s profitability metrics. Despite these challenges, Avenue Supermarts managed to sustain its bottom-line growth, albeit at a slower pace, demonstrating operational resilience in a competitive retail landscape.

 

Particulars Q4 FY24 Q4 FY25 YoY Change
Revenue (₹ crore) 12,409 14,462 +16.6%
EBITDA (₹ crore) 1,021 981 -3.9%
Net Profit (₹ crore) 610 620 +1.6%
PAT Margin (%) 4.9% 4.3% -60 bps

In FY25, Avenue Supermarts showed marginal improvements in its financial efficiency and stability. Return on Equity (ROE) edged up to 17.2% from 17.0%, and Return on Capital Employed (ROCE) increased to 18.5% from 18.2%, indicating slightly better capital utilization. The current ratio improved from 1.4x to 1.5x, reflecting stronger short-term liquidity. While the debt-to-equity ratio remained extremely low at 0.02x, suggesting minimal leverage, inventory days rose from 30 to 32, implying a slightly slower inventory turnover. The company’s market capitalization also increased from ₹2.31 lakh crore to ₹2.49 lakh crore, showcasing positive investor sentiment.

Metric FY24 FY25
Return on Equity (ROE) 17.0% 17.2%
Return on Capital Employed 18.2% 18.5%
Inventory Days 30 days 32 days
Current Ratio 1.4x 1.5x
Debt-to-Equity Ratio 0.02x 0.02x
Market Cap (₹ lakh crore) 2.31 2.49

Recent Developments

  • Store Network Expansion: Added 50 new stores in FY25, surpassing FY24’s 40-store addition.
  • E-commerce Growth: DMart Ready is now operational in 23 cities, growing at 21.8% YoY in H1 FY25.
  • Geographic Reach: Entered Gurugram, expanding presence in northern India.
  • Leadership Change: Mr. Anshul Asawa is set to take over as CEO from Mr. Neville Noronha by FY26, ensuring continuity.

Investment Risks

  • Margin Compression: Competitive pricing in FMCG and grocery is limiting profitability.
  • Cost Pressures: Higher wage, rental, and input costs threaten operating leverage.
  • E-commerce Uncertainty: Profitability timeline for DMart Ready remains unclear.
  • Valuation Sensitivity: The current valuation leaves little room for earnings disappointment or macroeconomic headwinds.

Final Thoughts

Avenue Supermarts continues to be a structurally strong player in India’s organized retail ecosystem. Its disciplined cost management, customer-first pricing, and expanding omni-channel presence are long-term positives. However, elevated input costs and competitive pressures in its core segments demand close monitoring. As the company enters a new leadership phase and accelerates its digital and geographical expansion, execution and margin resilience will be the key factors determining its performance in the coming quarters.

 

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MUFG Plans ₹12,000 Cr Investment to Acquire Stake in HDB Financial

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HPCL Posts 18% Surge in Q4 Net Earnings
Result Updates - May 7, 2025

HPCL Posts 18% Surge in Q4 Net Earnings

HPCL Posts 18% Surge in Q4 Net Earnings

 

HPCL Reports a ₹10.5 Dividend and Increases Net Profit by 18% to ₹3,355 Crore in Q4

Hindustan Petroleum Corporation Limited (HPCL), one of India’s leading oil marketing companies, announced its financial results for the fourth quarter of the fiscal year, reporting a notable 18% increase in net profit. The profit surged to ₹3,355 crore in the quarter ending March 2024, up from ₹2,846 crore in the same period last year. The company’s strong earnings report is a reflection of both operational efficiency and a favorable market environment. HPCL’s board has announced a final dividend of ₹10.5 per share, acknowledging shareholders’ confidence and support with appreciation.
This announcement comes at a crucial time for the Indian energy sector, which has faced volatility due to fluctuating global crude oil prices, inflationary pressures, and changing government policies. Despite these challenges, HPCL has shown resilience and delivered solid results, reinforcing its position as a major player in India’s oil and gas landscape.

Strong Financial Highlights

The company’s revenue from operations for the quarter stood at ₹1.16 lakh crore, marking a steady year-on-year performance. Though revenue growth remained relatively flat due to global oil price fluctuations, profitability improved on the back of better refining margins, inventory gains, and a recovery in marketing margins.
With Q4 earnings of ₹6,250 crore, HPCL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were much higher than ₹5,290 crore during the same time last year. The improvement in margins and efficient cost management played a key role in this growth.
Total expenses were controlled effectively, with cost optimization measures across refining and marketing operations contributing positively. The company also benefited from the softening of crude oil prices in early 2024, which provided relief on input costs.

Dividend Declaration Reflects Confidence

HPCL’s board of directors has declared a final dividend of ₹10.5 per equity share, complementing the company’s strong quarterly performance. This is in addition to any interim dividends declared earlier in the year, indicating the company’s healthy cash position and commitment to rewarding its investors.
The dividend will be subject to shareholder approval and will be paid within the statutory timeline. At the current market price of HPCL’s stock, the dividend yields a respectable return, making it attractive for both retail and institutional investors.

Refining Segment Shows Improvement

Two significant refineries run by HPCL are situated in Visakhapatnam and Mumbai. During the fourth quarter, both refineries operated at optimal capacity, benefiting from improved gross refining margins (GRMs). The average GRM for Q4 was $9.85 per barrel, compared to $7.45 per barrel in Q4 of the previous year.
This improvement in refining performance was driven by better product spreads in diesel and petrol, higher export realizations, and overall better efficiency in plant operations.
HPCL’s refinery throughput during the quarter stood at 5.04 million metric tonnes (MMT), marginally higher than last year, indicating steady demand and operational stability.

Marketing Segment Bounces Back

The marketing segment also showed a marked recovery. Sales volumes improved, particularly in petrol, diesel, aviation turbine fuel, and lubricants. HPCL’s retail network continued to expand, and the company strengthened its digital payment infrastructure and loyalty programs to enhance customer experience.
Total sales volume during Q4 was 10.1 MMT, up from 9.5 MMT in Q4 FY23. Domestic demand remained robust, especially in urban and semi-urban areas, driven by increased mobility, industrial activities, and economic recovery.
HPCL’s strategy to diversify product offerings, along with expanding its LPG and lubricants footprint, helped strengthen its market share in key categories.

Digital and Green Energy Initiatives

HPCL has also been investing in digital transformation and green energy projects to align with India’s evolving energy goals. The company continues to invest in electric vehicle (EV) charging infrastructure, biofuels, and hydrogen-based solutions.
During Q4, HPCL added over 100 EV charging stations across its fuel retail outlets and entered into partnerships with technology companies to develop future-ready clean energy solutions. These moves are part of the company’s broader ESG (Environmental, Social, and Governance) agenda.

Outlook for FY2025

Looking ahead, HPCL’s management expressed optimism for the coming financial year. With expectations of stable crude oil prices, continued growth in domestic fuel demand, and improving global economic conditions, the company anticipates further improvement in its financial and operational performance.
The company also plans to invest significantly in capacity expansion projects, pipeline infrastructure, and digital retail initiatives to maintain competitiveness and support long-term growth.
Furthermore, HPCL’s parent company, Oil and Natural Gas Corporation (ONGC), has outlined a roadmap for deeper integration and better synergy within the group, which could further enhance HPCL’s operational efficiency and profitability.

Conclusion

Strong financial success, operational discipline, and strategic vision are all evident in HPCL’s fourth-quarter results. With an 18% rise in net profit to ₹3,355 crore and the declaration of a ₹10.5 per share dividend, the company has delivered value to both its customers and shareholders. As India continues its journey toward energy security and sustainability, HPCL remains well-positioned to lead from the front and capitalize on emerging opportunities in the oil and gas sector.

 

 

 

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Zerodha Cuts API Charges as NSE Simplifies Algo Trading for Retailers

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Coal India Reopens 32 Mines as Clean Energy Progress Falters
Result Updates - May 7, 2025

 Coal India Q4 FY24 Results: Profit Soars 26%, ₹25.5 Total Dividend

Coal India Q4 FY24 Results: Profit Soars 26%, ₹25.5 Total Dividend

 

Coal India Limited (CIL), the state-owned coal mining behemoth and the largest coal producer in India, has outperformed market forecasts with an impressive financial performance in the fourth quarter of FY24. The company reported a consolidated net profit of ₹8,682 crore—marking a 26% year-on-year (YoY) surge—despite facing a slight decline in revenue.

Coal India’s Strong Finish to FY24

In Q4 FY24, Coal India, the state-run coal giant, demonstrated impressive financial strength, achieving solid profit growth despite challenges in revenue. The company reported a 26.2% year-on-year surge in consolidated net profit, reaching ₹8,682.2 crore, surpassing market forecasts. This result outpaced analyst predictions, as highlighted by sources like NDTV Profit and CNBC TV18.
The profit surge came even as consolidated income declined slightly to ₹39,654.5 crore, down from ₹40,359 crore in the same period last year. Revenue from operations fell nearly 2% YoY to ₹37,410 crore, according to Economic Times and Moneycontrol.

Dividend Bonanza: ₹25.5 Per Share for FY24

Coal India’s board approved a final dividend of ₹5 per share, which will be paid out in addition to the interim dividends of ₹15.25 and ₹5.25 already declared earlier in FY24. This brings the total dividend payout to ₹25.5 per share for the financial year.
This hefty payout underscores Coal India’s commitment to shareholder returns, despite moderate topline performance. The final dividend is pending for approval by shareholders it will get possibly in coming Annual General Meeting.

Operational Highlights

Coal India upheld steady operational efficiency, producing 241.75 million tonnes of coal during the quarter, sustaining the growth observed in prior periods. The company continues to dominate the domestic coal market, supplying nearly 80% of India’s coal needs.
Production efficiency, cost control, and better realization from e-auction sales contributed significantly to the bottom-line growth. The company also leveraged better pricing in the non-power sector, which supported profitability.

Market Reaction and Analyst Takeaways

The Q4 performance triggered a positive response from market analysts and investors alike. Brokerage houses revised their target prices upward following the earnings announcement, citing strong profit visibility and consistent dividend payouts.
NDTV Profit reported that analysts appreciated the beat on net profit and the disciplined capital expenditure that helped maintain free cash flows. The high dividend yield continues to be a major draw for long-term investors.
Coal India shares reacted modestly post-announcement, as much of the positive news had already been priced in. However, the stock remains a high-yielding defensive option in volatile markets.

Challenges Ahead

Despite the strong quarter, Coal India faces several challenges going forward. Declining demand from the power sector, rising competition from renewable energy, and environmental regulations could pressure margins and growth.
Moreover, any increase in global coal prices or disruption in logistics could impact coal availability and pricing strategies. The company must also ramp up efforts to diversify into cleaner energy options to align with India’s long-term sustainability goals.

Conclusion

Coal India has capped off FY24 with strong earnings and a generous dividend payout, reinforcing its position as a reliable and profitable public sector undertaking. While revenue growth remained muted, disciplined cost management and strong operational performance enabled a substantial jump in net profit.
Investors and analysts alike have applauded the company’s financial prudence and shareholder-friendly approach. As India’s energy transition picks up pace, Coal India will have to balance its traditional strengths with future readiness.

 

 

 

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HDFC Life Sells Some Kesoram Shares in Portfolio Change.

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SBI Lowers Interest on Savings and Term Deposits
Result Updates - May 5, 2025

Decoding SBI’s Q4 Surge: Strategic Gains and Headwinds

Decoding SBI’s Q4 Surge: Strategic Gains and Headwinds

 

STATE BANK OF INDIA

 CMP* (₹) 792
 Company Sector Banking
 Company Symbol State Bank of India                                                                                                                                                                                      

About the Company: –

State Bank of India (SBI) stands as the largest public sector bank in India and a pillar of the country’s financial ecosystem. With a legacy that dates back over two centuries, SBI has built an unmatched scale and reach across the Indian subcontinent. The bank caters to more than 51 crore customers, encompassing individuals, businesses, government bodies, and institutions, reflecting its deep penetration and trust across all economic segments.

SBI operates through a vast physical infrastructure of 22,542 branches and 65,004 ATMs/CDMs, making banking services accessible across urban, semi-urban, and rural areas. This widespread network not only enhances customer convenience but also supports the government’s financial inclusion initiatives. Internationally, SBI has established a presence in 29 countries, operating through 229 global offices that include branches, subsidiaries, and representative offices, thus catering to the banking needs of Indian diaspora and global corporates. In recent years, SBI has aggressively digitized its services to stay ahead in the evolving financial landscape. Its flagship digital platform, YONO (You Only Need One), has become one of India’s most widely used integrated banking and lifestyleapps.

With over 7.1 crore downloads and 2.7 crore monthly active users, YONO enables customers to perform a wide range of activities from opening bank accounts, applying for loans, investing in mutual funds and insurance, to shopping and travel bookings all through a single interface. The success of YONO underscores SBI’s commitment to innovation and customer- centric digital transformation, helping the bank expand its reach and efficiency while significantly lowering the cost-of-service delivery.

Key Financial

Particular Amount
MARKET CAPITALIZATION (₹ CRORE) ₹7,13,970
DEBT (₹ CRORE)  ₹5,06,027
EV (₹ CRORE) ₹12,20,000+
52 WEEK H/L ₹826 / ₹542
EQUITY CAPITAL (₹ CRORE) ₹892
FACE VALUE (₹) 1.00
DIVIDEND YEILD 1.99%
NO OF SHARES (CRORES) 89.2
Quarterly Performance
SBI’s Q4 FY25 results reflect strong operational momentum with improvements in both core and non-core income. Net Interest Income (NII) increased by 3.2% quarter-on-quarter (QoQ) to ₹42,775 crore, driven by a steady interest income growth of 1.91%. However, Net Interest Margin (NIM) slightly declined to 3.00% at the bank level, indicating pressure on yields.

The standout metric this quarter was Non-Interest Income, which surged 119% QoQ to ₹24,210 crore, supported by strong treasury gains and higher fee income. Consequently, Operating Income grew 27.6% QoQ to ₹66,985 crore, and Operating Profit rose 32.8% to ₹31,286 crore despite a 23.4% increase in operating expenses. On the bottom line, Net Profit came in at ₹18,643 crore, up 10.4% from the previous quarter but down 9.9% YoY, due to higher provisions of ₹12,643 crore (up 89.9% QoQ). Despite this, SBI maintained healthy profitability metrics, with Return on Assets (ROA) at 1.12% and Earnings Per Share (EPS) at ₹84.72. The cost-to-income ratio moderated slightly to 53.29%, indicating improved efficiency over the previous quarter.

Overall, the bank demonstrated operational resilience with strong income growth, though rising provisions and narrowing margins slightly offset the earnings upside.

Particulars Q4FY24 Q3FY25 Q4FY25 QoQ (%) YoY (%)
Interest Income 1,11,043 1,17,427 1,19,666 1.91% 7.77%
Interest Expenses 69,387 75,981 76,892 1.20% 10.81%
Net Interest Income (NII) 41,655 41,446 42,775 3.21% 2.69%
Non-Interest Income 17,369 11,041 24,210 119.28% 39.38%
Operating Income 59,024 52,486 66,985 27.62% 13.49%
Operating Expenses 30,277 28,935 35,698 23.37% 17.91%
Operating Profit 28,748 23,551 31,286 32.84% 8.83%
Total Provisions 8,049 6,659 12,643 89.86% 57.08%
Net Profit 20,698 16,891 18,643 10.37% -9.93%
NIM (Whole Bank) 3.30% 3.01% 3.00% -1 bps -30 bps
NIM (Domestic) 3.47% 3.15% 3.15% 0 bps -32 bps
Cost to Income Ratio 51.30% 55.13% 53.29% -184 bps +199 bps
Cost to Assets (%) 1.99% 1.79% 2.15% +36 bps +16 bps
EPS (₹) 93.28 75.09 84.72 — —
ROA

(Annualized)

 1.36% 1.04% 1.12% — —

Revenue Disclosure

In Q4FY25, State Bank of India (SBI) reported a total income of ₹1,29,173 crore, marking a YoY growth of 13.8% over ₹1,13,469 crore in Q4FY24. The growth was primarily driven by a strong increase in interest income, which rose 20.3% YoY to ₹1,14,782 crore.

  • The largest contributor was Interest on Advances, which increased to ₹84,017 crore (up 18.3% YoY), reflecting strong credit growth and improved yields.
  • Interest on Investments saw a substantial growth of 28.2%, reaching ₹24,580 crore, likely supported by increased SLR securities and favorable interest rates.
  • Other Interest Components also grew steadily, indicating better treasury and liquidity management.

However, Other Income declined by 20.5% YoY to ₹14,391 crore. This drop was largely attributed to lower treasury income and fee-based earnings, which affected the non-interest revenue profile for the quarter.

 

Key Revenue Financials  (Rs.in crore)

Particulars Q4FY25 Q4FY24 YoY Change (%)
Interest Earned ₹1,14,782 ₹95,374 20.3%
– Interest on Advances ₹84,017 ₹71,008 18.3%
– Interest on Investments ₹24,580 ₹19,181 28.2%
– Interest on Balances with RBI & Banks ₹1,258 ₹975 29.0%
– Others ₹4,927 ₹4,210 17.0%
Other Income ₹14,391 ₹18,095 –20.5%
Total Income ₹1,29,173 ₹1,13,469 13.8%

Liabilities Table – SBI Q4FY25 (₹ in Crore)

Component Q4FY25 Q4FY24
Deposits ₹47,20,887.67 ₹44,23,778.45
Borrowings ₹3,18,374.62 ₹3,26,214.70
Other Liabilities & Provisions ₹2,20,244.82 ₹2,03,651.46
Capital ₹892.46 ₹892.46
Reserves & Surplus ₹2,98,072.11 ₹2,79,830.44
Minority Interest ₹1,169.03 ₹1,187.13
Total Liabilities ₹62,58,942.71 ₹59,53,475.55

Description of the above table

State Bank of India (SBI) recorded total liabilities of ₹62.59 lakh crore as of Q4FY25, indicating a year-on-year (YoY) growth of 5.13% from ₹59.53 lakh crore in Q4FY24. The major component remains customer deposits, which rose by over ₹2.97 lakh crore YoY, reinforcing SBI’s strong retail franchise and deposit mobilization strength .Borrowings, which include funds raised from RBI, banks, and other institutions, showed a slight decrease, suggesting greater reliance on deposits for funding. Other liabilities and provisions, primarily consisting of provisioning for bad loans and other obligations, increased by around ₹16,500 crore—pointing to prudence in financial risk management. SBI’s capital base remained stable at ₹892 crore, while reserves and surplus grew significantly, reflecting retained earnings and enhanced internal accruals. The minority interest represents the stake of minority shareholders in SBI’s subsidiaries and showed little change.

Overall, SBI’s liability’s structure continues to be robust, with healthy growth in core funding and a conservative approach to provisioning and capital management.

FINANCIAL STATEMENT

P&L Statement (In Cr.)

Particulars Q4FY25 Q4FY24 YoY Growth FY25 FY24 YoY Growth
Interest Earned 1,07,678 92,951 15.8% 4,03,057 3,48,302 15.7%
Interest Expended 62,796 51,099 22.9% 2,26,304 1,88,491 20.1%
Net Interest Income (NII) 44,882 41,852 7.2% 1,76,753 1,59,811 10.6%
Other Income 20,958 18,094 15.8% 47,375 47,761 -0.8%
Total Income 65,840 59,946 9.8% 2,24,128 2,07,572 8.0%
Operating Expenses 28,873 24,496 17.9% 95,589 83,796 14.1%
Operating Profit 36,967 35,450 4.3% 1,28,539 1,23,776 3.9%
Provisions and

Contingencies

 1,609 3,276 -50.9% 14,578 20,489 -28.9%
Profit before Tax (PBT) 35,358 32,174 9.9% 1,13,961 1,03,287 10.3%
Tax Expense 8,906 7,950 12.0% 29,746 26,640 11.6%
Net Profit 26,452 24,224 9.2% 84,215 76,647 9.9%

Description of the above table

State Bank of India (SBI) reported a net profit of ₹26,452 crore in Q4FY25, marking a 9.2% year-on- year (YoY) growth from ₹24,224 crore in Q4FY24. For the full year FY25, net profit stood at ₹84,215 crore, an increase of 9.9% over FY24. Interest income rose significantly by 15.8% YoY in Q4FY25 to ₹1,07,678 crore, supported by growth in the loan book and improved yield on advances. However, interest expenses also grew by 22.9%, reflecting the impact of rising deposit costs and cost of funds.Despite higher interest costs, Net Interest Income (NII) – the core income from lending – grew by 7.2% YoY in Q4FY25 to ₹44,882 crore, while for the full year it increased 10.6%, reaching ₹1,76,753 crore. Other income, comprising fees, commissions, treasury operations, and recoveries, rose by 15.8% YoY in Q4 but remained nearly flat for the full year. Operating expenses increased by 17.9% YoY due to higher employee and administrative costs, slightly compressing the operating profit margin. Still, operating profit grew by 4.3% YoY in Q4FY25 and 3.9% for FY25, touching ₹1,28,539 crore for the year. A major contributor to net profit growth was the sharp decline in provisions and contingencies, which fell by 50.9% YoY in Q4FY25 and by 28.9% YoY annually, indicating better asset quality and lower credit costs.

The Profit Before Tax (PBT) grew by 9.9% YoY to ₹35,358 crore in Q4FY25. After a tax provision of ₹8,906 crore, the bank posted its record quarterly and annual net profits.

Summary of Balance Sheet

Particulars FY24 FY25 YoY Growth
Total Assets 59,84,781 65,98,819 10.2%
Deposits 45,03,700 51,30,072 13.9%
Gross Advances 33,03,731 36,48,564 10.4%
Capital & Reserves 3,62,996 4,23,019 16.5%

Description of above table

SBI’s balance sheet for FY25 reflects a robust and healthy financial trajectory, marked by substantial growth across key parameters. The total deposits surged to ₹51.3 lakh crore, representing an impressive 13.9% year-on-year (YoY) growth compared to ₹45.03 lakh crore in FY24. This strong deposit mobilization highlights the bank’s continued dominance and customer trust in India’s banking landscape, underpinned by its extensive branch network and strong retail franchise. On the asset side, gross advances rose to ₹36.48 lakh crore, reflecting a 10.4% growth YoY from ₹33.03 lakh crore. This expansion in lending activity signals robust credit demand across sectors, including retail, agriculture, MSME, and corporate segments. The bank’s ability to grow advances while maintaining asset quality showcases sound credit risk management and a growing economy. Additionally, the capital and reserves component, a key indicator of financial strength and stability, saw a noteworthy rise of 16.5%, increasing from ₹3.63 lakh crore in FY24 to ₹4.23 lakh crore in FY25. This growth may be attributed to higher retained earnings from record profits, prudent capital management, and possibly fresh equity infusion or revaluation reserves. A stronger capital base not only ensures regulatory compliance under Basel III norms but also enhances the bank’s capacity to support future business growth and absorb potential shocks.

In summary, SBI’s balance sheet for FY25 paints a picture of sustained growth, increasing financial resilience, and strategic positioning for future expansion in a dynamic economic environment.

Summary of Cash Flow Statement

Particulars FY25
Net Profit ₹61,077 Cr
Operating Profit ₹96,275 Cr
Provisions and Contingencies ₹19,384 Cr
Dividend Declared ₹13.70/share

Description of above table

In FY25, the State Bank of India (SBI) achieved a record-breaking net profit of ₹61,077 crore, showcasing exceptional earnings performance and a strong operational foundation. This remarkable profitability was supported by a healthy growth in core income streams, including interest income from advances and investments, as well as fee-based income. The record profit reflects efficient cost management, stable asset quality, and a favorable interest rate environment that supported net interest margins (NIMs). A key factor contributing to improved cash flows was the reduction in provisions and contingencies, which stood at ₹19,384 crore—lower than previous years. This decline indicates better credit discipline and improved asset quality, as fewer resources had to be set aside for non-performing assets (NPAs) and potential loan losses. As provisioning requirements ease, more of the bank’s operating profit translates directly into net cash flows, enhancing its liquidity and financial flexibility. SBI’s ability to declare a final dividend of ₹13.70 per share further underscores its strong free cash flow position and commitment to shareholder value. Dividend payouts of this magnitude are generally indicative of surplus cash after meeting capital expenditure and regulatory requirements, reflecting a confident outlook on future profitability and capital adequacy. While the detailed cash flow statement was not disclosed in the presentation, the combination of a high operating profit of ₹96,275 crore and lower provisioning strongly suggests healthy internal accruals and sustainable financial operations. These internal cash flows are crucial for funding future growth, managing liabilities, investing in digital infrastructure, and maintaining a robust capital buffer.

Ratio Analysis

Ratio FY25 FY24 Change / Remarks
Earnings Per Share (EPS) 63.1 57.7 ▲ Improved due to higher net profit
Book Value Per Share 209.6 183.3 ▲ Indicates stronger capital base
Dividend Per Share 33.0 34.0 ▼ Slight decline despite record profit
Revenue Growth (%) 1.9 4.7 ▼ Slower topline growth rate
Operating Profit Margin (%) 20.7 21.6 ▼ Marginal drop in operating efficiency
Net Profit Margin (%) 16.7 16.3 ▲ Improved profitability
Return on Net Worth (%) 30.1 31.5 ▼ Slight decline in efficiency of equity usage
Asset Turnover Ratio 1.2 1.3 ▼ Slight reduction in asset utilization
Fixed Asset Turnover Ratio 3.6 3.9 ▼ Indicates higher investment in fixed assets
Current Ratio 2.6 2.4 ▲ Improved short-term liquidity
Quick Ratio 2.6 2.4 ▲ Strengthened liquidity without inventories
Interest Coverage Ratio 134.1 149.1 ▼ Slight decline, but remains very strong

Description of Ratio Analysis

State Bank of India (SBI) reported a net profit of ₹26,452 crore in Q4FY25, marking a 9.2% year-on-year (YoY) growth from ₹24,224 crore in Q4FY24. For the full year FY25, net profit stood at ₹84,215 crore, an increase of 9.9% over FY24. Interest income rose significantly by 15.8% YoY in Q4FY25 to ₹1,07,678 crore, supported by growth in the loan book and improved yield on advances. However, interest expenses also grew by 22.9%, reflecting the impact of rising deposit costs and cost of funds. Despite higher interest costs, Net Interest Income (NII) – the core income from lending – grew by 7.2% YoY in Q4FY25 to ₹44,882 crore, while for the full year it increased 10.6%, reaching ₹1,76,753 crore. Other income, comprising fees, commissions, treasury operations, and recoveries, rose by 15.8% YoY in Q4 but remained nearly flat for the full year. Operating expenses increased by 17.9% YoY due to higher employee and administrative costs, slightly compressing the operating profit margin. Still, operating profit grew by 4.3% YoY in Q4FY25 and 3.9% for FY25, touching ₹1,28,539 crore for the year. A major contributor to net profit growth was the sharp decline in provisions and contingencies, which fell by 50.9% YoY in Q4FY25 and by 28.9% YoY annually, indicating better asset quality and lower credit costs. The Profit Before Tax (PBT) grew by 9.9% YoY to ₹35,358 crore in Q4FY25. After a tax provision of ₹8,906 crore, the bank posted its record quarterly and annual net profits.

Conference Highlight

1. Robust Credit Growth Outlook

  • SBI projects credit growth of 14–15% year-on-year in
  • Retail loans (especially housing and personal loans) and SME lending are the major growth
  • The bank has witnessed strong demand in home loans, Xpress Credit (personal loans), and small ticket MSME loans.
  • Corporate loan growth is expected to be moderate but steady, driven by working capital demand and select capex

2. Net Interest Margin (NIM) Stability

  • SBI guided for domestic NIMs at 4%–3.5% in FY25, despite a high cost of deposits.
  • There is a re-pricing benefit on the loan book as older low-yield loans get replaced with higher-rate
  • Deposit rates have been inching up, but asset yields have also improved, helping protect
  • NIM pressure from overseas operations is expected to normalize by

3. Strong Asset Quality and Credit Discipline

  • SBI reported best-in-class asset quality metrics among PSU
  • Gross NPA (GNPA) ratio is expected to fall further below 4%, and Net NPA below 0.6%, reflecting healthy recoveries and upgrades.
  • Credit cost is guided below 1%, supported by a strong PCR (Provision Coverage Ratio) of 76%+.
  • Slippage ratios remain under control, with no large stress emerging across retail or corporate

4. Healthy Return Metrics (Profitability)

  • SBI aims to maintain a Return on Assets (RoA) near 1% and Return on Equity (RoE) around 16–17%.
  • Operating performance is being driven by growth in core earnings, better asset quality, and efficiency in opex (operating expenses)
  • Continued focus on cost rationalization and productivity enhancement supports profit sustainability.

5. Digital Banking and CASA Strategy

  • SBI is ramping up its digital initiatives through platforms like YONO to drive customer engagement and reduce operational cost.
  • Over 95% of transactions now happen through digital channels, underscoring SBI’s shift toward a digital-first
  • CASA (Current Account Savings Account) ratio is expected to remain stable despite intense deposit competition from peers and NBFCs.

6. Strong Performance of Subsidiaries

  • SBI’s subsidiaries — SBI Life Insurance, SBI Cards, SBI General Insurance, and SBI Mutual Fund — continue to perform well.
  • SBI Life and SBI MF saw strong growth in AUM and premiums, boosting consolidated
  • The bank mentioned the potential to unlock further value through IPOs or stake monetization in non-banking

7. Comfortable Capital Position

  • SBI is well-capitalized with CET-1 ratio around 9% and total capital adequacy >14%.
  • There are no near-term equity dilution plans, as internal accruals and retained earnings are sufficient to support
  • Management is confident in supporting credit expansion without external capital infusion.

 

 

 

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Kotak Mahindra Bank stock slips following Q4 earnings announcement.

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Kotak Mahindra Bank stock slips following Q4 earnings announcement.
Result Updates - May 5, 2025

Kotak Mahindra Bank stock slips following Q4 earnings announcement.

Kotak Mahindra Bank stock slips following Q4 earnings announcement.

 

 Kotak Mahindra Bank’s Q4 shortfall prompts analyst downgrades, fueling uncertainty over its future performance trajectory.

 Kotak Mahindra Bank Faces a Challenging Quarter

Kotak Mahindra Bank’s financial performance for the fourth quarter of FY2025 came as a surprise to investors, as the bank posted a notable decline in profits, falling short of analysts’ expectations. Following this disappointing result, the bank’s share price plummeted by more than 5%, triggering multiple downgrades from leading brokerages. The primary concerns stemmed from rising credit costs and a weaker loan growth outlook, leading to a re-evaluation of the stock’s investment potential.

Q4 Earnings Fall Short: Key Highlights

Kotak Mahindra Bank reported a 14% drop in standalone net profit for Q4 FY2025, which came in at ₹3,552 crore. Analysts had predicted a higher profit margin, but the actual results were marred by a significant increase in provisions for bad loans. This surge in provisions raised concerns about the bank’s asset quality and its ability to maintain profitability in the near term.
“Higher credit costs, driven by an increase in non-performing assets, have hurt Kotak Mahindra Bank’s earnings this quarter,” said a senior analyst from a leading brokerage firm.
Moreover, the bank’s revenue growth also came in weaker than expected, raising doubts about its ability to deliver strong loan growth going forward. These factors collectively contributed to the negative market reaction.

Analyst Downgrades and Revised Targets

Following Kotak Mahindra Bank’s underwhelming Q4 performance, multiple leading analysts have revised their outlook on the stock, opting for downgrades. Leading brokerages, including BofA Securities, Bernstein, and Nomura India, have revised their target prices for the bank, lowering their expectations based on the weaker outlook for loan growth and rising credit costs.
• BofA Securities lowered its price target for the bank from ₹2,100 to ₹1,900, citing concerns about profitability pressure.
• Bernstein shifted its stance from “Outperform” to “Market Perform,” reflecting a more reserved outlook for the short term.
• Nomura India also revised its price target downward, citing subdued credit growth and rising provisions.
The downgrades reflect widespread skepticism regarding the bank’s ability to maintain strong performance in the face of increasing competition and economic uncertainty.

Rising Credit Costs: A Major Concern

A key concern following Kotak Mahindra Bank’s Q4 results is the rising credit costs, which have been increasing due to a higher provisioning for bad loans. While the bank has managed to maintain a relatively low level of non-performing assets (NPAs) in the past, the surge in provisions suggests that the economic environment is starting to take a toll on asset quality.
“While the bank’s core operations remain robust, the higher-than-expected credit costs are likely to weigh on its profitability in the coming quarters,” noted a senior market strategist.
This is a crucial factor for investors to consider, as it suggests that Kotak Mahindra Bank may face challenges in maintaining its historical profitability, especially if economic conditions worsen or if the bank’s loan book becomes more vulnerable.

Weak Loan Growth Outlook

Another issue highlighted by analysts is the bank’s modest loan growth in the quarter, which has raised concerns about its future prospects. Kotak Mahindra Bank has traditionally relied on strong loan growth to drive its earnings, but with a weaker growth outlook, there are questions about the bank’s ability to sustain its current trajectory.
Analysts believe that the slower loan growth, combined with the rising credit costs, could result in lower-than-expected returns for investors. This is particularly concerning given the competitive nature of India’s banking sector, where other players are aggressively expanding their loan books.

Looking Forward: Can Kotak Mahindra Bank Recover?

While the immediate outlook for Kotak Mahindra Bank seems uncertain, the long-term picture is still relatively positive. The bank has a strong capital base, a diversified portfolio, and a solid reputation for financial discipline. However, it will need to address its rising credit costs and moderate loan growth to regain investor confidence.
Analysts also highlight the importance of macroeconomic factors in shaping the bank’s future performance. A stable economic environment, coupled with effective management of credit risks, could help Kotak Mahindra Bank navigate these challenges and return to growth.

Conclusion: Caution in the Short Term, Potential in the Long Run

In conclusion, Kotak Mahindra Bank’s Q4 earnings miss has sent ripples through the market, with downgrades and revised target prices reflecting a cautious short-term outlook. While credit costs and loan growth remain areas of concern, the bank’s strong fundamentals and management expertise provide a foundation for long-term growth. Investors should carefully monitor the bank’s progress in addressing these challenges and consider the stock’s potential once these issues are mitigated.

 

 

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Rupee Surges to 7-Month High at 83.78/USD Amid Strong Inflows, Trade Optimism

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