Q2 FY2025 Results: What's Working and What's Not

Indian corporate earnings were moderately above the market expectations with good sector rotation also witnessed by the market participants from the past few weeks. Many positive and negative surprises were also on board in the last few days amid the ongoing results season in the domestic equities. On the flip side, the underlying strength of the indices looks strong even after the continuous selling from the foreign investors.

Also Read | Sectoral Analysis: Energy & Fast-Moving Consumer Goods (India) - October 2025

Quick Look: Sectors That Did Really Well

What Happened in Different Sectors?

IT Companies Surprised Everyone

Two small IT companies - YAARI and FABETCH - more than doubled their revenues this quarter. That's massive! Even mid-sized players like SIGMASOL and INTELLECT saw 35-50% growth. Looks like businesses are spending heavily on technology right now.

Green Energy is on Fire

SUZLON's numbers looked great - up 84% from last year. Wind and solar companies are clearly getting benefit from India's push towards renewable energy. Meanwhile, old-school oil marketing companies like BPCL and IOC grew just 2%. The shift is real.

Real Estate Boom Continues

RAYMONDREAL tripled its revenue - yes, you read that right, 208% growth! LODHA and BRIGADE also posted strong numbers. People are buying homes, and these companies are cashing in. The property market is definitely back.

Chemicals & Fertilizers Doing Well

Fertilizer companies had a great quarter thanks to good monsoons and government support. CHAMBLFERT and NAVINFLUOR both grew close to 50%. Agricultural tailwinds are helping these businesses.

NBFCs Growing Fast

Lending companies continue to expand as more people take loans. CGCL, SBFC, and APTUS all grew between 30-50%. Credit demand is strong across the board - from personal loans to business financing.

Consumer & Auto Sectors Steady

TVS Motor grew 24% while auto parts suppliers like SONACOMS also did well. In FMCG, while SKMEGGPROD had exceptional growth, Patanjali maintained decent momentum. Festive demand seems to be supporting these sectors.

Defence Stocks Marching Ahead

BEL posted 26% growth as India's defence spending increases. With geopolitical tensions and the government's focus on self-reliance, defence companies are seeing good order books.

Healthcare Mixed Bag

Some pharma companies like TATVA and LAURASLAB reported strong growth (35-48%), but established players grew slowly. The sector is watching global developments closely, especially on the export front.

Infrastructure Still Going Strong

Big infrastructure names like KPIL (up 32%) and L&T (up 10%) continue to benefit from government spending on roads, metros, and other projects. The capex cycle is alive and kicking.

What to Expect Going Forward?

We expect the markets to witness roller coaster ride in the current month of November with stocks from the domestic consumption is expected to do well while on the flip side select energy, chemical & few of the real estate counters may continue to outperform amid good quarterly earnings in the September quarter.

On the other hand, Information technology, pharma and textile stocks may react on the tariff deal and the global scenario which is looking further volatile in the coming weeks.

Where Should You Focus?

Based on these results, here's what looks promising:

Good bets: Companies selling to Indian consumers (FMCG, retail), you can focus on energy and chemical stocks that delivered solid numbers, and quality real estate developers in top cities.

Watch closely: IT and pharma stocks might swing based on what happens globally - tariff talks and geopolitical tensions could impact them.

Stay selective: Not all stocks in a sector will do well. Pick companies with strong fundamentals and good management.

The big takeaway? Companies focused on India are doing better than those dependent on exports. Foreign investors are selling, but domestic money is supporting the market. It's a good time to be selective and focus on quality rather than just chasing momentum.

- Team Research, Bigul