Profits Soar, But Not For All; Swiggy And Ola Caught In The Great Q4 Divide. The Report Card Of India Inc And Its Startup Dreamers, Who’s Winning The Profit Game?

India Inc wrapped up the March quarter with a solid double-digit rise in net profit for the second quarter in a row, thanks largely to lower non-operating expenses such as interest and depreciation. However, revenue growth remained subdued, marking the eighth consecutive quarter of single-digit gains.

From a consistent sample of 3,241 companies that have reported results over the past 13 quarters, net profit grew 14.1% year-on-year – the highest in the last four quarters – while revenue rose by 6.8%. In comparison, the same quarter last year had seen a sharper 22.7% profit growth on 9.2% revenue growth.

Analysts are upbeat about FY26, expecting corporate earnings to pick up, backed by potential tax incentives and easing interest rates. 

However, operating margins for the sample dipped slightly – down 20 basis points year-on-year to 17.5%. Margin pressure was more visible in consumer and chemical companies, which continued to face rising input costs or demand-supply mismatches.

That said, banks and NBFCs weighed on overall profit growth, posting only modest increases in net profit and interest income amid narrowing margins breaking their streak of eight quarters of double-digit growth. When excluding these financial players, profit growth for the rest of the sample improved to 20%.

Looking ahead, analysts maintain a cautiously optimistic stance.

“Domestic demand recovery and supportive policy measures could drive earnings, but global volatility and inflation remain key risks,” said Bolinjkar.

Duggad sees earnings getting a further boost from a low base in FY25 and improving business fundamentals. He’s particularly positive on sectors tied to domestic consumption like banking and finance, industrials, consumer discretionary, healthcare, IT, and telecom, while staying cautious on oil and gas, cement, autos, real estate, and metals.

Vinod Nair, Head of Research at Geojit Financial Services, added that expected tax breaks and higher government spending should fuel demand. “FY26 earnings growth is pegged at 10-12%, a solid rebound from the sub-5% expected in FY25,” he noted. Interest rate-sensitive sectors like banking, auto, and real estate are likely to benefit the most from the improving macro backdrop.

Most New-Age Listed Startups Show Profit Progress in Q4 But Swiggy, Ola Struggle to Keep Pace

India’s new-age startups largely ended FY25 on a stronger note, with 11 of the 17 publicly listed players reporting improved profitability in the January–March quarter either through narrowed losses or profit growth. The trend points to better cost discipline and operational focus among digital-first companies like Nykaa, Delhivery, Paytm, Policybazaar, Go Digit, Ather Energy, Ixigo, and BlackBuck.

However, the quarter wasn’t as encouraging for the remaining six, which saw profitability deteriorate. Food delivery giants Swiggy and Eternal (Zomato’s parent) led the laggards, primarily due to rising cash burn in their quick commerce arms, Instamart and Blinkit.

Ola Electric also saw its losses balloon – more than doubling to ₹870 crore—as operating revenue slumped 62%. Mobikwik and FirstCry also posted wider losses for the quarter.

Among the top performers, beauty and fashion retailer Nykaa and PB Fintech, the parent company of Policybazaar, stood out. Both clocked strong revenue growth –24% and 38% year-on-year respectively – while more than doubling their bottom lines. Analysts flagged improving margin trends for both companies, which debuted on the bourses in 2021.

Citi Research noted that PB Fintech saw a 1-percentage-point uptick in contribution margins after three consecutive quarters of contraction, with reduced ESOP-related costs aiding profitability.

JM Financial illustrated Nykaa’s strengthened working capital management, marking its first year of positive free cash flow (adjusted for leases and capex) post-COVID. “Core BPC (beauty and personal care) is expected to benefit from repeat purchases, driving further margin improvement,” the brokerage said, calling Nykaa’s performance a sign of its unique market position in a sluggish demand environment.

Mamaearth’s parent Honasa Consumer, on the other hand, reported a 15% dip in profits due to restructuring efforts in its offline business. The company’s management believes the real benefits of the rejig will start showing in coming quarters.

Quick Commerce = Quick Burn

The quick commerce segment continues to drain cash for Swiggy and Eternal. Both Blinkit and Instamart weighed on consolidated earnings at a time when food delivery (traditionally the largest business unit) is showing signs of a slowdown.

Going forward, the two firms are taking divergent strategic bets. Eternal has signaled its intention to prioritize market share over short-term profit, while Swiggy CEO Sriharsha Majety said Instamart’s peak losses are now behind them, and the company will look to steadily cut its cash burn.

Still, the numbers were sobering. Eternal’s net profit fell 78% to ₹39 crore in Q4, while Swiggy’s net loss almost doubled to ₹1,081 crore.

A research note from HSBC Securities offered more context: Blinkit lost ₹2 for every ₹100 of gross order value (GOV), while Swiggy lost ₹18 – indicating the operational strain.

“Cash burn at Swiggy was even higher than its accounting losses. While short-term conditions may favor both Blinkit and Instamart, competitive intensity could rise again by the second half of FY26,” the brokerage warned.

EVs a Mixed Bag, Ola Stumbles as Ather Steadies

The March quarter proved challenging for Ola Electric, with the company reporting not only widening losses but also a sharp decline in operating revenue. Once the market leader in India’s electric two-wheeler segment, Ola Electric has now ceded ground to traditional automakers like TVS Motor and Bajaj Auto.

Kotak Institutional Equities downgraded its rating on Ola Electric to ‘sell’, citing mounting credibility concerns and execution challenges. The brokerage emphasized that the company’s future depends on its ability to scale up volumes and make a successful entry into the electric motorcycle segment.

Ola’s recent performance has been impacted by declining scooter volumes and rising warranty-related provisions, both of which have dented its profitability.

“Volume trends have been adversely affected by increased competitive pressure and recurring quality issues raised by customers,” the analysts noted.

For Q4 FY25, Ola Electric’s operating revenue stood at ₹611 crore—lower than rival Ather Energy’s ₹676 crore, despite Ather selling fewer than half the number of scooters Ola did during the fiscal year. While Ola’s losses deepened, Ather managed to trim its quarterly loss by 17%, reflecting better cost control and stable revenue growth. Ather also went public in May, adding further confidence to its forward trajectory.

Logistics Delivers Results

In contrast to the mixed EV narrative, the logistics sector turned in a solid performance. Both Delhivery and BlackBuck posted profits for the March quarter, reversing losses from the same period last year.

For Delhivery, this marked its first full year of net profitability, driven by improved operating leverage in its core transportation business. Operational efficiency gains, cost discipline, and better asset utilization helped the company cross this key milestone.

BlackBuck, which debuted on the bourses last year, posted a net profit of ₹280 crore in Q4, aided significantly by a one-time tax credit. But even on a pre-tax basis, the company turned profitable with a ₹41 crore profit, thanks to prudent cost-cutting in areas such as employee benefits and interest expenses.
Profits Soar, But Not For All: India Inc’s Mixed Q4 Tells Two Tales

The Last Bit,

India Inc’s March quarter results paint a tale of two realities – one of surging profits in traditional sectors driven by cost efficiencies and another of teetering new-age startups caught in a maze of high cash burn and shaky fundamentals.

While overall net profit for listed companies rose a solid 14.1% buoyed by sectors like metals, oil marketing, and healthcare revenue growth remained sluggish for the eighth straight quarter, underscoring a broader demand malaise. Cost rationalisation, easing interest rates, and lower depreciation helped many firms shore up their margins, even as operating performance in consumer-facing sectors like IT, auto, and FMCG remained tepid.

Startups told a more nuanced story. A majority of India’s listed digital-first ventures reported better profitability metrics in Q4 FY25, signalling improved cost control and maturing operations. Nykaa, PB Fintech, Ather Energy, Delhivery, and BlackBuck stood out as key beneficiaries of this shift. However, the sheen wore off quickly for others like Swiggy, Ola Electric, and FirstCry – whose mounting losses raised red flags about scalability and sustainability.

Ola Electric, once the EV poster child, is rapidly losing its edge to legacy automakers. Swiggy’s deepening losses from Instamart offset gains in food delivery, while Blinkit’s marginal edge couldn’t lift Eternal’s falling bottom line either. These quick commerce ventures are proving that scaling fast doesn’t guarantee profitability – especially when every delivery chips away at the balance sheet.

Looking ahead, while the macro setup remains favourable with potential policy support and a rate-easing cycle, the Q4 scoreboard makes one thing clear, India’s profit party is well underway – but not everyone’s invited to the VIP section.

Legacy players are milking efficiencies, while some digital dreamers are learning the hard way that growth without grit is just a burn rate waiting to spiral.

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