Investing

The financial year 2025-26 started with the Q4 declaration for the financial year 2024-25 from companies across various sectors in the Indian stock market. While some posted strong gains in profitability and revenue, particularly in financial services, tech, and consumer goods, others reported modest growth or declines, highlighting sector-specific challenges. The stock market’s response varied, with positive results boosting shares and weaker performances weighing them down. 

Some of the major companies that declared their Q4 results include the following:

Tata Consultancy Services:

Tata Consultancy Services (TCS), a leading IT services provider, reported a mixed financial performance in Q4 FY25. 

Parameter	Figure	% Change
Revenue (Q4 FY25)	₹64,479 crore	5.29 YoY growth
Net Profit (Q4 FY25)	₹12,224 crore	1.65% YoY fall
Operating Margin	24.20%	–
Net Margin	19.00%	–

The company achieved a 6% year-on-year growth in annual revenue, crossing the $30 billion mark with ₹255,324 crore. However, TCS faced challenges, including the slowest revenue growth in four years and uncertainties around US tariffs affecting client deals. Additionally, the company announced a delay in salary hikes for FY26, indicating near-term cost management measures. TCS shares remained largely flat post-results, closing at ₹3289.55 on 11th April 2025, slightly lower than the previous day’s close of ₹3292.95. 

(source: Mint)

Hindustan Petroleum Corporation Limited:

HPCL, a major public sector oil marketing company, reported a positive financial performance in Q4 FY25. 

Parameter	Figure	% Change
Net Profit (Q4 FY25)	₹3,355 crore	18.02% YoY growth
Total Income (Q4 FY25)	₹1,19,126 crore	2.67% YoY fall
Crude Throughput	6.74 MMT	15.41% YoY growth
Domestic Sales	12.11 MMT	2.63% YoY growth
Export Sales	0.59 MMT	11.32% YoY growth

Additionally, HPCL reported a negative buffer of ₹10,894.53 crore due to the gap between the market-determined price of LPG cylinders and the effective cost to consumers, which the Ministry of Petroleum and Natural Gas instructed OMCs to retain for future adjustments. Despite these developments, HPCL’s stock closed 3.3% lower at ₹396.90 ahead of the earnings announcement.

WIPRO:

Wipro reported a mixed financial performance for Q4 FY25.

Parameter	Figure	% Change
Revenue (Q4 FY25)	₹22,504.20 crore	1.33% YoY growth
Net Profit (Q4 FY25)	₹3,570 crore	25.9% YoY growth
IT Services Revenue	₹14,504 crore	2.3% YoY decline
Operating Margin (Q4)	17.50%	1.1% YoY expansion

For the full fiscal year 2025, Wipro achieved an 18.9% year-on-year growth in net income. Despite weak revenue growth in the IT services segment, Wipro reported a strong 48.5% year-on-year increase in large deal bookings, which provides a positive outlook for future revenue. The company highlighted that weak discretionary spending had affected growth and projected a 1.5% to 3.5% decline in IT services revenue for Q1 FY26. Plus, the stock market saw Wipro shares increase by 1.5%, closing at ₹247.80 on 16th April 2025, ahead of the earnings announcement.

(source: Mint)

HDFC Life Insurance Company:

HDFC Life Insurance reported strong growth for Q4 FY25, with a 15% year-on-year (YoY) increase in net profit.

Parameter	Figure	% Change
Net Profit (Q4 FY25)	₹475 crore	15% YoY growth
Net Premium Income (Q4)	₹23,842 crore	16% YoY growth
Assets Under Management (AUM)	₹3,36,282 crore	15% YoY growth
Market Share (Individual WRP)	11.10%	70 bps YoY growth

For FY25, the company achieved significant growth driven by a 16% rise in net premium income and an 18% increase in individual APE (Annual Premium Equivalent), reflecting an increase in both the number of policies sold and the average ticket size. HDFC Life also saw a 15% YoY increase in its Assets Under Management (AUM), totaling ₹3,36,282 crore.

(source: Mint)

HDFC Bank:

HDFC Bank posted a positive financial performance for Q4 FY25.

Parameter	Figure	% Change
Net Profit (Q4 FY25)	₹17,616.14 crore	6.7% YoY growth
Net Interest Income (NII)	₹32,065.8 crore	10.28% YoY growth
Net Interest Margin (NIM)	3.54%	–
Gross NPA Ratio	1.33%	–
Dividend (Final)	₹22 per share	–

HDFC Bank also saw improvement in its asset quality, with a reduction in its GNPA ratio to 1.33%. The stock market responded positively, with shares rising over 2% to hit a record high of ₹1,950 per share after the announcement, reflecting investor confidence in the bank’s steady growth and improved asset quality.

(source: Mint)

State Bank Of India:

State Bank of India (SBI) posted a mixed financial performance for Q4 FY25. The bank saw a decline in its net profit, while its operating profit showed growth.

Parameter	Figure	% Change
Net Profit (Q4 FY25)	₹18,642.59 crore	10% YoY decline
Net Interest Income (NII)	₹42,774.55 crore	2.7% YoY growth
Operating Profit	₹31,286 crore	8.83% YoY growth
Loan Loss Provisions	₹3,964 crore	20.35% YoY increase
Dividend (FY25)	₹15.90 per share	–

SBI declared a dividend of ₹15.90 per share for FY25. The bank also saw improvement in its asset quality, with both gross and net NPA ratios declining. Despite downward revisions to its credit growth forecast, SBI announced plans to raise up to ₹25,000 crore in equity capital. The stock market reaction was initially negative, with shares falling sharply. However, SBI’s share price later gained 1.5%, closing at ₹800.05 on 2nd May 2025.

(source: ET)

Reliance Industries:

Reliance Industries reported a solid financial performance for Q4 FY25 with notable growth in key metrics.

Parameter	Figure	% Change
Net Profit	₹22,434 crore	6.1% YoY growth
Revenue from Operations	₹2,64,573 crore	9.9% YoY growth
Digital Services (Jio)	17% YoY growth	–
Retail Segment	15.6% YoY growth	–
Jio Subscriber Base	488.2 million	–
Dividend	₹5.5 per share	–

Reliance’s net profit for Q4 FY25 grew by 6.1% YoY to ₹22,434 crore, with revenue from operations increasing by 9.9% YoY to ₹2,64,573 crore. Jio Platforms saw a 17% revenue increase, and the retail segment grew by 15.6%. Jio’s subscriber base reached 488.2 million. The company declared a ₹5.5 dividend per share. Following these results, the company shares saw a notable increase on 28th April 2025, rising by 3.92% to an intraday high of ₹1,351 on the BSE.

(source: Mint)

Bombay Stock Exchange:

BSE Ltd. reported exceptional financial growth for Q4 FY25.

Parameter	Figure	% Change
Net Profit	₹493 crore	364% YoY growth
Revenue from Operations	₹847 crore	75% YoY growth
EBITDA	₹594 crore	520% YoY growth
Dividend	₹23 per share	–

The company board declared a final dividend of ₹23 per share, including a special dividend to mark its 150th anniversary. Despite a 3.15% decline in share price after the announcement, BSE had recently reached a 52-week high, reflecting its strong performance in the prior months.

Asian Paints:

Asian Paints reported a decline in its financial performance for Q4 FY25, with weak urban demand impacting its overall results.

Parameter	Figure	% Change
Net Profit (PAT)	₹692 crore	-45% YoY
Profit Before Depreciation, Interest, Tax (PBDIT)	₹1,436 crore	-15% YoY
Revenue	₹8329.6 crore	-4.3% YoY
PBDIT Margin	17.20%	-2.2% YoY

The quarterly overall performance was a result of the following sectoral numbers: 

• Decorative Business (India): Volume growth of 1.8%, but revenue declined 5.2%. The segment suffered from weak demand, downtrading, and heightened competition.
• Industrial Business: Saw a 6% revenue growth, driven by strong performance in the General Industrial and Automotive coatings segments.
• Home Décor: Struggled with weak consumer sentiment and low household disposable income. The Beautiful Homes store network synergies couldn’t fully offset the downturn.
• International Business: Revenue dropped 1.5% due to macroeconomic challenges in Africa, though key markets in the Middle East and Asia performed well. On a constant currency basis, international revenues grew by 6%.

Despite the weak demand conditions, the board recommended a final dividend of ₹20.55 per share for FY25, subject to shareholder approval, with 10th June as the record date.

(Source: ET)

Kajaria Tiles:

Kajaria Ceramics’ Q4 FY25 results reflected a challenging quarter, with net profit declining by 59% year-on-year to ₹43 crore, primarily due to losses of ₹30.79 crore from discontinued plywood operations. The company’s revenue from operations rose marginally by 1.1% to ₹1,222 crore, supported by a 5.73% sequential increase. However, EBITDA contracted by 20% to ₹138.4 crore, with margins narrowing to 11.3% from 14.3% a year ago.

Parameter	Figure	% Change
Revenue (Q4 FY25)	₹1,222 crore	1.1% growth
Net Profit (Q4 FY25)	₹43 crore	59% fall
EBITDA	₹138.4 crore	20% fall
EBITDA Margin	11.30%	3% fall
Tile Volumes (FY25)	114.7 MSM	6% growth

During the quarter, Kajaria wound down its UK JV due to high operating costs and scrapped plans for a ₹30 crore tile facility under Kajaria Ultima Pvt. Ltd. The company is proceeding with a ₹15 crore adhesives plant in Rajasthan, slated to begin operations in June 2025. Kajaria also added a new subsidiary, Kajaria Adhesive Pvt. Ltd., expanding its product portfolio and maintaining a total production capacity of 90.5 MSM across India and Nepal.

(Source: CNBC)

In the Q4 FY2025 earnings season, you would have observed mixed performances across sectors. Financial services generally showed strong profit growth and asset quality improvements, while IT companies faced varied outcomes amid global uncertainties. Consumer goods and export-driven sectors reported both gains and challenges, reflecting shifting demand and operational pressures. As the market reacts to these diverse results and broader economic factors, you may want to keep a close eye on evolving trends and potential impacts on key sectors. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

In a development that has raised eyebrows across global financial markets, credit rating agency Moody’s Investors Service has revised India’s GDP growth forecast for 2025 from 6.5% to 6.3%. The downgrade, though modest in numerical terms, signals deeper economic undercurrents—ranging from geopolitical tensions with Pakistan to trade policy uncertainty in the United States.

This article delves into the economic rationale behind the downgrade, the sectors likely to be impacted, and what it spells for India’s investment and market landscape.

What Prompted Moody’s to Cut India’s Forecast?

According to Moody’s, three key risks informed the downgrade (Economic Times):

1. Escalating Indo-Pak Tensions:
   While full-blown conflict is unlikely, increased skirmishes, militant infiltration, and cross-border provocations have led to a risk premium on the region’s stability. This dampens foreign investor sentiment, particularly in long-term infrastructure and manufacturing projects.
   
2. Uncertainty Around US Trade Policy:
   With the US presidential elections looming, markets anticipate a potential shift toward protectionist trade policies, especially if tariffs return under a Trump administration. Given that the US is India’s largest export market, this directly affects India’s goods and services exports.
   
3. Soft Global Economic Activity:
   Continued weakness in China, muted recovery in Europe, and geopolitical flashpoints in the Middle East and Ukraine are dragging global demand down, further constraining India’s external sector performance.
   

Implications for Indian Markets and Businesses

1. Capital Flows May Become Volatile

Moody’s rating revisions are closely watched by foreign institutional investors (FIIs). With India’s equity markets already trading near record valuations, any increase in risk perception can trigger FII outflows, pressuring the rupee and equity indices.

Data Point: In FY24, FIIs invested a net ₹1.3 lakh crore in Indian equities. Even a 10% pullback could shave off ₹13,000 crore in market liquidity.

2. Exporters Face Headwinds

Sectors like textiles, IT services, and pharmaceuticals—heavily reliant on US and EU markets—could face demand contraction. According to Statista, India exported goods worth $78 billion to the US in 2023. A 5% decline would translate into a $3.9 billion hit.

Chart Idea: Bar chart showing India’s top 5 export destinations (2023) with % share—highlighting vulnerability to the US market.

3. Manufacturing and Capex Could Slow

The momentum of ‘Make in India’ depends significantly on policy certainty and geopolitical calm. Moody’s concerns may delay private sector capital expenditure, especially from global firms. Textile and apparel exporters like Arvind Ltd. and Welspun reported 8–10% quarterly declines in overseas orders in Q1 2025, per Fibre2Fashion.

What This Forecast Means in a Broader Context

India remains among the fastest-growing major economies in the world, even at 6.3%. However, the downgraded figure marks a potential deceleration from the momentum seen in 2023 and 2024, when India grew at 7.2% and an estimated 6.9%, respectively.

India’s GDP Growth Trend (FY22–FY25E)

Fiscal Year	GDP Growth (%)	Notes
FY22	8.70%	Post-COVID recovery peak
FY23	7.20%	Robust domestic demand
FY24 (Est.)	6.90%	Services-led expansion
FY25 (Moody’s)	6.30%	Tensions and global slowdown

(Sources: Ministry of Statistics, Moody’s, World Bank)

Sectoral Impact: Winners and Losers

The downgrade to 6.3% GDP growth may appear numerically minor, but it sends significant signals across sectoral dynamics, especially in capital-intensive and globally linked industries.

🔻 Vulnerable Sectors

1. Export-Heavy Sectors (Textiles, IT, Auto Components)

According to Ministry of Commerce data, India’s merchandise exports contracted 3% in FY24. With heightened Indo-Pak tensions and uncertainty over US trade policy, India’s major exporters now face dual risks—logistical disruptions due to geopolitical tensions and potential tariff barriers in their primary markets.

• Textiles: Already battling competition from Bangladesh and Vietnam, Indian textile exporters face elevated freight costs and possible buyer diversification away from the South Asia region. For instance, apparel exports dipped by 11.7% YoY in Q1 2025.
  
• IT Services: With over 60% of revenues coming from the US, Indian IT firms are vulnerable to any US policy shifts under a new administration.
  
• Auto Components: The US is India’s second-largest auto parts export destination. Moody’s downgrade and trade war fears may delay order flows and impact margins.
  

2. Capital Goods and Infrastructure

Private sector capex recovery has been tentative. With rating downgrades influencing cost of capital, this sector could see a slowdown in project finalization and tendering activity.

RBI’s April 2025 bulletin showed that new investment proposals from the private sector dropped 9.2% YoY in Q4 FY24, reflecting early signs of caution.

3. Financial Markets

Equity markets, particularly mid- and small-cap segments, remain highly sensitive to FII flows. Any moderation in the growth outlook typically leads to defensive repositioning by global investors.

• Banking Stocks: Though resilient on the surface, banking is indirectly affected via slower credit demand from corporates.
  
• NBFCs: Face risk of asset-liability mismatches if liquidity conditions tighten due to FII outflows or currency depreciation.
  

Resilient or Counter-Cyclical Sectors

1. Domestic Consumption (FMCG, Retail, Consumer Durables)

India’s consumption resilience—driven by a young demographic and rising disposable income—provides a safety net.

• Data Point: Rural demand has shown signs of a comeback after two weak years. FMCG rural volume growth hit 6.5% YoY in the March 2025 quarter (source: NielsenIQ).
  
• Retail and durables may benefit from festival demand, government transfers, and stable service employment.
  

2. Banking & Financial Services

Despite volatility, PSUs and private banks remain well-capitalized. Credit demand from individuals and SMEs—especially in Tier II/III cities—continues to hold up.

According to RBI’s April data, personal loans grew 18.7% YoY in FY24, led by housing and vehicle segments.

3. Energy & Infrastructure

Government-led capex remains robust, insulating the sector from private capex volatility.

• Union Budget 2025 raised infrastructure capex by 16.2% YoY, targeting green energy corridors, national highways, and metro projects.
  
• Renewable energy projects (solar/wind) under PLI schemes continue to attract domestic and foreign investment, albeit cautiously.
  

The Way Forward: 

India’s medium-term growth potential remains intact. However, short-term risks call for strategic policy actions across diplomacy, diversification, and domestic fortification.

1. Reinvigorate Regional Diplomacy

The geopolitical flashpoint with Pakistan raises India’s risk premium in global investment decisions. Reviving backchannel diplomacy, cross-border trade arrangements (mainly for Punjab and Sindh border trade), and confidence-building military measures could help tone down market fears.

Post-Kargil normalization in 2001–03 helped Indian markets attract robust FDI, particularly in telecom and financial services.

2. Expand Trade Diversification

India must reduce its over-reliance on the US and EU. ASEAN, Africa, and Latin America offer untapped potential:

• Finalizing FTAs with the EU and UK can unlock textile, auto, and service trade growth.
  
• The India-Mercosur agreement needs expansion beyond basic agri-products to include pharma and IT services.

India’s trade with Africa stood at $98 billion in FY24. A 10% annual growth rate could add nearly $50 billion by 2030.

3. Bolster Domestic Manufacturing and Capex

Moody’s concerns highlight the importance of inward-looking resilience:

• Expand PLI schemes to new sectors like semiconductors, green hydrogen, and EV components.
• Provide faster clearances and stable tax regimes to accelerate FDI in manufacturing.
• Encourage MSME access to credit by digitizing land records and simplifying collateral mechanisms.
  

SIDBI data shows that only 17% of MSMEs access formal credit, indicating latent investment capacity.

4. Maintain Fiscal and Policy Credibility

While India’s fiscal deficit has narrowed from 6.4% in FY22 to 5.8% in FY24, any external shock will test the government’s ability to maintain its current course.

• Avoid populist spending ahead of elections that could spook bond markets.
• Ensure inflation targeting remains a core RBI mandate, especially with rising crude oil prices in Q2 2025. 
• Enhance transparency in GDP, employment, and inflation data to maintain investor trust.
  

5. Strengthen Financial Market Depth

Moody’s downgrade also reflects a need to make Indian financial markets more resilient to external shocks.

• Encourage domestic institutional participation (insurance, pension funds) to counterbalance volatile FII flows.
  
• Deepen corporate bond markets, which still account for less than 20% of total credit compared to 70% in the US.
  

Is This a Cause for Alarm? Not Yet, but Caution is Warranted

Moody’s has not altered India’s sovereign rating, which remains at ‘Baa3’ with a stable outlook. This means the long-term fundamentals are not in question, but near-term caution is advised.

Economists have echoed that while India is not insulated from global shocks, its domestic drivers—such as strong tax collections, robust forex reserves ($645 billion as of April 2025), and infrastructure-led government spending—offer buffers.

“India still offers a compelling growth story but may need to recalibrate expectations in the face of geopolitical friction,” said a policy note from Outlook Business.

Conclusion

Moody’s 20-basis point cut to India’s GDP growth forecast 2025 may appear minor at first glance, but it reflects the complex interplay of domestic stability and external volatility. Indo-Pak tensions and uncertainty over US trade policy are clouding the growth horizon, just as India is poised to become the world’s third-largest economy by 2027. While fundamentals remain strong, navigating these headwinds with strategic clarity is critical for sustaining investor confidence and economic momentum.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Alphabet Inc., the parent of Google, saw its stock tumble by more than 7% on Wednesday, erasing around $150 billion in market value. The sharp drop came after reports revealed that Apple is considering integrating artificial intelligence-powered search options into its Safari browser — a move that could fundamentally shift the balance in the search engine market and hit Google where it hurts most: its dominance on Apple devices.

What Triggered the Stock Drop?

The sell-off was sparked by revelations during an ongoing antitrust trial. Apple’s senior vice president of services, Eddy Cue, testified that the company is “actively looking at” reshaping its Safari browser with new AI-powered search options. Cue’s statement specifically pointed out a trend where users are increasingly turning to AI tools for finding information, leading to the first recorded decline in Safari-based searches last month.

Alphabet shares responded swiftly, closing the day 7.51% lower at $152.80. This decline wiped out roughly $150 billion from Alphabet’s market capitalization — one of its steepest single-day losses in recent history.

Why This Matters for Google

The timing and implications of Cue’s statement couldn’t be more critical for Google. For years, Google has paid Apple billions annually — reportedly around $20 billion in 2022 alone — to remain the default search engine on Safari. This arrangement contributes significantly to Google’s ad revenues, with about 36% of its search ad revenue estimated to come from Safari users.

If Apple decides to offer or promote AI-powered alternatives from providers like Perplexity, OpenAI, or Anthropic, Google’s dominance in mobile search, especially on iPhones, could be at risk.

In a market that’s becoming more AI-first by the day, this shift in search behavior represents not just competition, but a foundational challenge to Google’s core business.

Google Responds, but Questions Remain

In response to the headlines and investor concerns, Google maintained that its search ecosystem remains strong. “People are seeing that Google Search is more useful for more of their queries — and they’re accessing it for new things and in new ways,” the company stated, highlighting its voice and visual search innovations as evidence of ongoing growth.

However, there’s a critical catch — it remains unclear whether Eddy Cue’s comments about declining Safari searches were based on comparable metrics or an internal trend that could be interpreted in multiple ways. The ambiguity has only fueled further speculation. Source: The Mint

Apple’s Strategy: Keep Options Open

Cue’s testimony also emphasized Apple’s intent to keep its options open. The company is exploring partnerships with various AI players, suggesting it’s not tied to any one solution and may be positioning itself to shift search behavior across its platforms based on performance, innovation, and possibly regulatory developments.

Importantly, Apple has not announced any formal partnerships or immediately changed Safari’s default search setup. But the mere suggestion that Google’s place as the default could be challenged was enough to send Alphabet’s stock into a tailspin.

Alphabet’s Performance: A Mixed Picture

Wednesday’s decline was dramatic, but it’s not the whole story. Here’s a breakdown of Alphabet’s stock performance:

• Past 1 Day: Down 7.51%
• Past 1 Month: Up 2.4%
• Past 6 Months: Down 16%
• Year-to-Date (YTD): Down 20%
• 1-Year Performance: Down 12%
• 5-Year Performance: Up 120%

While long-term returns remain strong, the recent downward trend highlights growing investor anxiety, particularly as AI reshapes the competitive dynamics in tech.

Regulatory Shadows Looming

The timing of this news also overlaps with the broader legal scrutiny Google faces. The U.S. Department of Justice has proposed several remedies in ongoing antitrust lawsuits, including banning payments made by Google to secure default status in browsers like Safari.

If enacted, such a ban could strike at the heart of Google’s iOS search strategy, potentially unraveling one of the most lucrative deals in digital advertising history.

With the regulatory environment heating up, Apple’s decision to explore alternatives could be as much about reducing its own antitrust exposure as it is about enhancing user experience with AI tools.

What Comes Next?

This episode highlights the growing tension between big tech players as they race to define the future of search in the age of AI. Apple’s quiet but strategic push into AI search suggests a world where Google no longer dominates by default — especially on devices it doesn’t control.

Meanwhile, Google must not only compete technologically but also navigate a shifting regulatory and business landscape where its default status is no longer guaranteed. 

Source: The Mint

• Final Word

Alphabet’s $150 billion wipeout is a reminder of just how sensitive the market has become to AI developments — especially when they involve heavyweight players like Apple. As AI reshapes how people access and consume information, the old search engine model is being challenged from multiple angles. And for investors and industry watchers alike, all eyes are now on what Apple does next.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

MRF raced ahead in the stock market on 7 May, rolling out a strong Q4 performance that increased its shares by 4%. The share price of one of India’s most expensive stocks by value touched a high of ₹1,41,500 on the NSE, after opening at ₹1,31,500, reflecting a gain of over ₹10,000 per share in just one day. It finally closed at ₹1,40,420, a ₹5,430 surge over the previous closing. In the past month, the stock has climbed nearly 28%, adding more than ₹30,000 per share to its value. The spike was witnessed after the tyre giant reported a 31% year-on-year jump in net profit for the March 31, 2025, quarter. 

The company reported consolidated revenue of ₹6,944 crore, an increase from ₹6,316 crore in the same period last year. Rising demand in both OEM and replacement tyre markets supported this growth. This solid growth in revenue and profit for the country’s iconic tire brand reflects improved demand, better cost control, and a resilient market outlook. 

Source: Economic Times, Money Control

Profit Jumps as Operational Strength Shines

MRF’s net profit rose to ₹493 crore in Q4, showing a 33% increase compared to ₹370 crore a year ago. Better cost control, increased volumes, and improved product mix across categories drove this sharp growth. Its EBITDA also rose by 18% to ₹1,043 crore in the March quarter. The EBITDA margin improved to 15%, reflecting stronger operating efficiency.

The company announced a final dividend of ₹229 per equity share, equalling 2290% on the face value of Rs 10. Including previous payouts, the total dividend for FY25 stood at ₹369 per share, continuing MRF’s long-standing tradition of rewarding its shareholders. The company had earlier declared and paid two interim dividends of ₹3 per share each for the March 31, 2025, financial year. With the final dividend, the total payout for the year amounts to ₹235 per share.

Despite the sizable dividend payout, MRF’s dividend yield stays relatively low at just 0.15%, considering its current stock price of approximately ₹1,40,000. Source: Business Today, Economic Times

However, although Q4 numbers were robust, the full-year net profit came in at ₹1,939 crore, slightly lower than last year’s ₹2,025 crore. The dip reflects earlier pressure from high raw material costs and a mixed global demand environment. Source: Business Standard

Reasons for MRF’s Solid Performance

Multiple strategic and operational factors drive the performance in MRF’s Q4 FY25 results. Here’s a breakdown of the key contributors to this success:

1. Tyre Demand on the Rise as Auto Sector Recovers

The broader tyre industry is gaining momentum, thanks to a revival in automobile sales and increased infrastructure activity. MRF’s substantial brand equity and vast distribution network helped it capitalise on this demand.

2. Efficiency Measures Drive Margin Growth

MRF’s management attributed the improved margins to stringent cost control and enhanced internal efficiencies. The softening of raw material prices further supported this margin expansion.

3. Steady Gains from Global Footprint

Despite global market uncertainties, MRF’s presence in key export regions provided stability. The company is cautiously expanding its international operations to maintain balance and mitigate risks.

4. Product Diversification and New Launches

The introduction of new stock-keeping units (SKUs) across various product categories, including passenger, motorcycle, truck, light commercial vehicle (LCV), and off-the-road (OTR) tyres, contributed to the company’s growth momentum during the year.

5. Strategic Price Adjustments

MRF implemented price hikes during the year to counteract rising input costs. These strategic adjustments helped offset increased raw material expenses and rupee depreciation.

6. Strong Performance Across Market Segments

The company’s growth was driven by all three key market segments: replacement, institutional, and export. This diversified performance underscores MRF’s robust market presence and adaptability.

The Road Ahead: Cautious Optimism

MRF’s strong Q4 performance has created optimism, but the company still faces challenges. The tyre industry is expected to grow further, supported by rising vehicle sales, better roads, and higher replacement demand. These trends should help MRF continue on a steady path.

However, there are areas to watch out for. Competition is increasing, and low-cost tyre imports could affect market share. Fluctuating raw material prices—especially rubber and oil-based products—may also impact profit margins. On the global front, export demand remains uncertain, even though MRF is slowly expanding its presence overseas.

Despite these factors, MRF’s ability to manage costs, launch new products, and maintain strong dealer relationships puts it in a good position. Its trusted brand name and stable performance make it a reliable player in the long run.

Conclusion

MRF ended FY25 on a high note, backed by a rise in revenue, profit, and margins, which shows that the company has used its strengths well during tough times. While some risks remain, MRF’s focus on efficiency, steady demand, and shareholder value gives it a strong base for future growth.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

After over two years and 13 negotiation rounds, India and the United Kingdom signed a historic Free Trade Agreement (FTA), marking a milestone in post-Brexit UK’s global trade realignment and India’s strategic economic diplomacy. This deal, billed as mutually beneficial, will see tariffs slashed or eliminated on a wide array of goods and services, covering industries from automobiles and spirits to textiles and IT services.

A Long Road to a Strategic Pact

Negotiations began in January 2022, aiming to deepen bilateral ties amid global supply chain realignments and economic uncertainties. According to India’s Ministry of Commerce, bilateral trade between the two countries stood at $20.36 billion in FY23, with India exporting goods worth $11.4 billion and importing goods worth $8.96 billion from the UK (Indian Express).

The UK government says this is its most comprehensive deal post-Brexit and estimates it will boost UK-India trade by over £10 billion annually over the next five years (Gov.uk).

What’s in the Deal? Key Goods and Sectors

Tariff Reductions:

• Automobiles: Tariffs on premium cars (currently 100%) will be cut by up to 50% for vehicles priced above $80,000, leading to expected price drops for brands like Jaguar, Land Rover, Bentley, and Rolls-Royce (NDTV Auto).
  
• Scotch Whisky: UK’s iconic export, currently taxed at 150%, will see phased tariff reduction to 75% over 10 years (Times of India). 

• Textiles & Apparel: India gains preferential access to UK markets, potentially expanding its $2 billion textile exports to the UK (Financial Express).

🔁 Services Trade:

• UK legal, accounting, and financial services firms will benefit from easier entry into India’s regulatory environment.
  
• Indian IT and professional services are already a strong export segment (valued at $24.4 billion globally in FY23, Statista), and they get smoother visa access and mutual recognition of qualifications.

📈 Pharma and Chemicals:

• Faster regulatory approvals and reduced compliance checks for Indian pharma exports to the UK.
  
• The chemical trade (India exported chemicals worth $2.1 billion to the UK in 2023) is set to benefit from duty waivers. 

What It Means for Indian Businesses

Opportunities:

1. Export-Led Growth: Lower duties make Indian products more competitive in the UK market. It is crucial as India aims to achieve a $1 trillion export target by 2030. Eliminating tariffs on textiles, apparel, and leather goods gives Indian exporters a competitive edge in the UK market, potentially increasing export volumes and market share.
   
   
2. Value Chain Integration: The UK’s R&D, combined with India’s low-cost manufacturing, could spur joint ventures in healthcare, clean energy, and fintech.  Indian processed food and jewellery sectors can now explore new opportunities in the UK, leading to diversification and reduced dependency on traditional markets.
   
3. Ease for Startups & SMEs: Provisions for IP protection and digital trade allow smaller firms to enter the UK ecosystem with fewer compliance hurdles. 
4. Boost to MSMEs: Micro, Small, and Medium Enterprises (MSMEs) in India stand to benefit from simplified trade procedures and reduced tariffs, enabling them to compete more effectively globally. 
5. Technology and Skill Transfer: Collaboration in sectors like advanced machinery and medical devices can lead to technology transfer, skill development, and innovation in Indian industries.

Challenges:

• UK’s High-Standard Compliance: Indian exporters must adhere to stringent UK quality and safety standards, necessitating investments in quality control and certification processes. Food, pharma, and textile exporters must meet strict UK quality benchmarks. 
• Intellectual Property Rights (IPR) Enforcement: Strengthening IPR enforcement is crucial to protecting Indian innovations and complying with UK regulations, which require legal and infrastructural enhancements.
• Pressure on Domestic Players: The influx of UK products, especially in the automotive and spirits sectors, may intensify competition for domestic producers, potentially impacting market dynamics. 
• Services Access Is Not Equal: While Indian IT gains, sectors like legal services still face entry barriers in the UK due to licensing rules. Indian businesses must stay abreast of regulatory changes in the UK, including sustainability and environmental standards, to maintain market access.

Economic Impact: By the Numbers

Category	Current India-UK Trade Value	Projected Growth by 2030
Total Bilateral Trade	$20.36 billion (FY23)	$30–35 billion
Indian Exports to the UK	$11.4 billion	60% (projected)
UK Exports to India	$8.96 billion	45% (projected)
Premium Car Segment	~$300 million	70% (projected)
Whisky Imports	~$170 million	90% (projected)

Source: Indian Commerce Ministry, Statista, Financial Express

Political and Labor Sensitivities

The deal was not without contention. UK labor unions raised concerns about local job protections, fearing the outsourcing of services. However, British PM Keir Starmer reassured workers that the agreement preserves domestic interests (Reuters).

Conversely, India has maintained its red lines—excluding dairy and sensitive agricultural items from tariff reductions, safeguarding millions of rural livelihoods. 

Strategic Recommendations for Indian Businesses

This FTA marks a significant geopolitical and economic alignment. It signals that India can strike ambitious trade deals while protecting domestic interests. For the UK, it marks a strategic pivot toward the Indo-Pacific.

1. Invest in Quality Enhancement: Allocate resources towards improving product quality to meet international standards, thereby enhancing competitiveness in the UK market.
   
2. Leverage Government Schemes: Utilize government initiatives like the Production Linked Incentive (PLI) scheme to boost manufacturing capabilities and export readiness.
   
3. Explore Joint Ventures: Form strategic alliances with UK companies to facilitate technology transfer, market access, and shared expertise.
   
4. Focus on Branding and Marketing: Develop strong branding strategies to establish a presence in the UK market, emphasizing the uniqueness and quality of Indian products.
   
5. Enhance Supply Chain Efficiency: Optimize supply chain operations to ensure timely delivery and cost-effectiveness, which are crucial for maintaining competitiveness in the UK market.

Conclusion

The UK-India FTA is more than a trade pact; it is a symbol of shifting economic power dynamics. It offers real opportunities for Indian exporters, especially in textiles, pharma, IT, and auto parts. However, the gains will depend on execution, compliance readiness, and sustained policy support.

As both nations seek to position themselves as global trade hubs, this deal could start a broader Indo-Western economic realignment.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

In a major development for India’s banking sector, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to acquire a 51% stake in private sector lender Yes Bank. 

This marks a turning point for Yes Bank, which has struggled since its near-collapse in 2020. The proposed deal, which may value Yes Bank at around $1.7 billion, sets the stage for a new strategic owner with strong financial backing and global experience. It also offers an exit opportunity for the consortium of Indian banks, led by the State Bank of India (SBI), that had stepped in to rescue the lender five years ago. Source: LiveMint

Yes Bank Shares Surge on the News

Yes Bank’s stock reacted positively to the news. On 6 May 2025, its share price jumped over 10%, opening at ₹19.24 on the National Stock Exchange (NSE) compared to the previous close of ₹17.70. During intraday trade, it soared to a high of ₹19.44, a gain of 9.83%.

The Deal Structure: 51% Stake in Phases

Sources familiar with the transaction explained that SMBC will initially buy up to 26% of Yes Bank and then increase its holding to 51% in phases. Two possible methods are being discussed:

1. A direct purchase of less than 26% followed by a merger using a share swap.
2. A purchase of up to 26% followed by an open offer to the public shareholders.

Whichever method is chosen, SMBC’s voting rights will be capped at 26%, in line with RBI’s regulations that prevent any single entity from gaining complete control. This model is similar to the case of Catholic Syrian Bank, where the RBI allowed a majority stake acquisition but limited voting rights to maintain balance in decision-making.

SBI and Other Banks to Exit

Yes Bank has been without a promoter since Rana Kapoor, its founder and former CEO, left in 2019. Since then, the bank has been owned by a consortium of Indian banks, led by SBI, which acquired stakes as part of an RBI-supervised rescue plan in 2020.

Currently, the combined ownership of SBI and other banks is 33.74%, broken down as follows:

• SBI: 23.99%
• HDFC Bank: 2.75%
• ICICI Bank: 2.39%
• Kotak Mahindra Bank: 1.21%
• Axis Bank: 1.01%

Source: LiveMint

These shareholders are now preparing to gradually sell their holdings to SMBC, which will become the strategic promoter of Yes Bank. SBI’s lock-in period for its shares ended in 2023, and the bank has been actively exploring an exit strategy since then.

Why SMBC is a Good Fit for Yes Bank

SMBC brings significant strength to the table. It is part of the Sumitomo Mitsui Financial Group (SMFG), which offers commercial banking, leasing, securities, and consumer finance services. As of 31 March, SMFG had total assets worth ₹162 trillion and posted a net profit of ₹44,900 crore. Source: LiveMint

SMBC began operations in India in 2013 and currently operates three branches: Mumbai, New Delhi, and Chennai. It has also received approval to open a branch in GIFT City (Gujarat International Finance Tec-City). An offshore team based in Singapore supports its Indian operations, especially for funding Indian businesses.

Its financial strength, global experience, and long-term vision make SMBC a credible and capable promoter for Yes Bank.

RBI’s Strategic Push and Guidelines

According to people familiar with the matter, the RBI has actively ensured a smooth transition. The central bank reportedly approved after SMBC followed Indian regulatory guidelines.

One such guideline involves establishing a wholly owned subsidiary (WOS) in India. This model is favored by the RBI because:

• It allows better regulatory control.
• It protects Indian operations from global crises faced by the foreign parent bank.
• It ensures a local bank-like structure, giving equal treatment to Indian banks.

Since 2013, the RBI has encouraged foreign banks to follow this model by offering incentives like easier branch expansion and permission to acquire Indian banks. SMBC may adopt this approach to further integrate into India’s financial ecosystem.

Advisers and Deal Coordination

SMBC has appointed JPMorgan as its financial advisor and J Sagar Associates, a prominent Indian law firm, as its legal advisor for this high-profile acquisition. These firms will help SMBC structure the transaction, navigate legal complexities, and ensure regulatory compliance.

SMBC, RBI, SBI, or other banks involved made no official comments. However, people in the know confirmed that discussions had been underway for some time, and SBI, in particular, had shown readiness to sell its stake to a serious long-term investor like SMBC.

Yes Bank Needs a Strong Promoter

Experts believe bringing in a global player like SMBC as a strategic promoter is crucial for Yes Bank’s long-term success. They also emphasize that Yes Bank needs a strategic promoter with strong management skills to ensure long-term growth. The exit of SBI and other temporary shareholders can be successful only if a reliable and committed new owner takes charge. 

Others in the Race

Before SMBC emerged as the frontrunner, other global financial institutions were reportedly interested in acquiring Yes Bank. These included:

• Mizuho Bank (Japan)
• Emirates NBD (UAE)

Ultimately, SMBC’s robust presence in India and strategic alignment with RBI’s vision helped it secure the necessary approvals.

Background: Yes Bank’s Rescue in 2020

Yes Bank was once a fast-growing private sector bank in India. However, its fortunes took a sharp turn due to:

• Excessive exposure to risky corporate loans.
• Governance issues under the former CEO Rana Kapoor.
• Inability to raise fresh capital.

In 2020, as Yes Bank teetered on the edge of collapse, the RBI stepped in with a carefully crafted rescue plan. SBI and a group of Indian banks were asked to inject capital and stabilize the bank. This move protected depositors, restored confidence, and allowed Yes Bank to continue operating.

Five years later, this strategic ownership transition from Indian banks to SMBC signals the completion of that rescue mission. Source: LiveMint/ Moneycontrol

What This Means for the Banking Sector

The SMBC-Yes Bank deal is a significant moment for India’s banking sector. Here’s why:

1. Foreign Investment Boost: Global banks are confident in India’s banking space and regulatory framework.
2. Exit for Indian Banks: SBI and others can exit their temporary investments and focus on their core operations.
3. Strategic Revival for Yes Bank: With a strong promoter, the bank is expected to strengthen its retail and corporate banking offerings.
4. Better Governance: Global risk management and corporate governance standards are expected to be introduced.
5. Regulatory Maturity: RBI’s handling of the situation demonstrates its ability to balance stability with reform.

Conclusion

The Reserve Bank of India’s approval for Sumitomo Mitsui Banking Corporation (SMBC) to acquire a 51% stake in Yes Bank marks a historic moment in the bank’s journey. After being rescued in 2020, Yes Bank is now poised to take a fresh step forward under the leadership of a globally reputed financial institution. The phased acquisition, capped voting rights, and regulatory safeguards protect all stakeholders’ interests.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Amidst volatility in the Indian stock market and aggressive selling by foreign investors, Life Insurance Corporation of India (LIC) emerged as a steady hand. During the March 2025 quarter, LIC made significant equity purchases worth over ₹47,000 crore, offering much-needed support to domestic markets. Alongside mutual funds and retail investors, LIC played a key role in cushioning the blow from foreign capital outflows. Source: Moneycontrol

Let’s take a closer look at how LIC reshaped its equity portfolio during the quarter.

LIC’s Portfolio Snapshot

As of the March 2025 quarter (Q4), LIC held stakes in 351 stocks, a marginal decline from 352 in the previous quarter. The total value of its equity holdings stood at ₹15.18 lakh crore, down from ₹15.88 lakh crore in Q3. During this period, LIC increased its holdings in 105 stocks, trimmed its stake in 86 companies, exited or reduced its stake below 1% in 15 companies, and added 13 new stocks. Source: Moneycontrol

Fresh Addition to LIC’s Portfolio	Net Buying (in Crore)	Stocks Removed from LIC’s Portfolio	Net Selling (in Crore)
IRFC	1814.9	Macrotech Developers	-1347.2
Jindal stainless	640.2	ICICI Securities	-485.6
KPIT Technologies	484.8	Piramal Pharma	-396.7
Punjab & Sind Bank	419.6	Paradeep Phosphates	-191.6
BLS International Services	178.8	Kaveri Seed Company	-73.3
JTL Industries	95.2	Texmaco Rail & Engeenering	-68.2
Enviro Infra Engineers	50.7	Gateway Distriparks	-40.0
Quality Power Electricals	50.1	Suraj Estate Developers	-22.6
Avalon Technologies	49.0	Divgi Torqtransfer systems	-18.4
Jai Corp	35.3	Yuken India	-12.2
Bombay Dyeing & Mfg.	21.0	SV Global Mill	-4.6
Praveg	32.7	Aban Offshore	-4.6
		Reliance Home Finance	-2.5
		Binny Mills	-1.5

13 New Additions in the Portfolio

Among the newly added stocks in LIC’s Q4 portfolio is IRFC, which acquired a 1.05% stake for ₹1,815 crore. This was followed by investments in Jindal Stainless and KPIT Technologies, with stakes of approximately 1.24% and 1.32%, valued at around ₹640 crore and ₹485 crore, respectively. Additionally, LIC received shares worth ₹3,325 crore in ITC Hotels, representing a 9.22% stake, as part of the demerger from ITC Ltd.

Major Investments by LIC

Among its key acquisitions in Q4, LIC notably raised its stake in Hero MotoCorp, investing ₹4,968 crore and increasing its shareholding from 5.53% to 11.84%. Its second-largest investment was in Reliance Industries Ltd, where it bought shares worth ₹3,675 crore, taking its stake up from 6.52% to 6.74%. 

LIC also made substantial investments in Larsen & Toubro (₹2,975 crore), Asian Paints (₹2,466 crore), Hindustan Unilever (₹2,361 crore), and Bajaj Auto (₹1,983 crore). Additionally, LIC increased its holdings by over ₹1,000 crore each in Bharat Electronics, Nestle India, LTIMindtree, Britannia Industries, and ITC.

LIC Increases Stake in Existing Holdings
	No. of Shares ( in Crore)			Net Buying (in Crore)
	March 2025 quarter	Dec 2024 quarter	Difference
Hero Motocorp	2.4	1.1	1.3	4967.8
Reliance Industries	89.4	86.4	3.0	3674.9
Larsen & Toubro	18.0	17.1	0.9	2975.2
Asian Paints	7.9	6.9	1.1	2466.3
Hindustan Unilever	14.1	13.1	1.0	2361.5
Bajaj Auto	0.7	0.4	0.2	1983.2
SBI	82.9	80.7	2.2	1652.9
Patanjali Foods	2.8	1.9	0.9	1638.3
Tata Motors	11.6	9.4	2.2	1577.2
Maruti Suzuki India	1.5	1.4	0.1	1493.4
HCL Technologies	13.1	12.3	0.8	1441.6
Indraprastha Gas	13.2	6.4	6.8	1332.9
Bharat Electronics	13.8	9.2	4.6	1269.8
Nestle India	4.5	4.0	0.5	1187.1
LTMindtree	2.3	2.1	0.2	1136.9

LIC Trims Holdings in Key Financial and Tech Stocks

On the divestment front, LIC reduced its stake in ICICI Bank by ₹1,987 crore, bringing its holding down to 6.8% from 7.14%. In the technology sector, it trimmed its investments in Infosys, Tata Consultancy Services, and Wipro, offloading shares worth ₹1,652 crore, ₹1,625 crore, and ₹1,234 crore, respectively. 

As a result, its revised stakes now stand at 10.45% in Infosys (down from 10.58%), 4.63% in TCS (from 4.75%), and 2.67% in Wipro (from 3.08%). Additionally, LIC scaled back its positions in several other companies, including Pidilite Industries, Divi’s Laboratories, Coromandel International, Bajaj Finserv, JSW Energy, Bajaj Finance, and HDFC Bank, with divestments ranging between ₹300 crore and ₹800 crore.

LIC Reduces Stake in Existing Holdings
	No. of Shares ( in Crore)			Net Selling (in Crore)
	March 2025 quarter	Dec 2024 quarter	Difference
ICICI Bank	39.4	41.0	-1.6	-1987.0
Infosys	38.8	39.7	-0.9	-1652.5
TCS	16.8	17.2	-0.4	-1624.0
Wipro	28.0	32.2	-4.2	-1233.9
Pidilite Industries	1.7	2.0	-0.3	-791.0
Divi’s Laboratories	1.5	1.6	-0.1	-605.3
Coromandel International	0.5	0.7	-0.2	-417.4
Bajaj Finserv	4.1	4.3	-0.2	-338.5
JSW Energy	11.5	12.1	-0.6	-318.6
Bajaj Finance	1.7	1.8	0.0	-313.5
HDFC Bank	36.1	36.3	-0.2	-309.1
Jubilant Foodworks	1.2	1.7	-0.5	-307.7
SRF	1.4	1.5	-0.1	-247.3
Lupin	0.9	1.0	-0.1	-206.4
Tata Power	9.4	10.0	-0.6	-199.8

LIC’s Rs 47,000 Crore Equity Buying: Why It Matters

The scale of LIC’s equity purchases over Rs 47,000 crore in one quarter is significant for multiple reasons:

1. Market Stabilization Role

LIC stepped in when FIIs turned net sellers due to global economic concerns, including interest rate uncertainty and geopolitical tensions. Such buying helped prevent deeper market falls and injected confidence among domestic investors.

2. Support for Mid and Small-Caps

Many of the stocks in which LIC accumulated shares were in the mid-cap and small-cap segments. These segments often face higher volatility during FII outflows, so LIC’s buying likely helped stabilize prices and support valuation levels.

3. Long-Term Investment Strategy

Unlike many short-term institutional players, LIC typically invests with a long-term horizon. It’s buying signals long-term confidence in the fundamentals of Indian companies, encouraging retail and mutual fund investors to follow suit.

Disappearance of 15 Companies

The 15 companies from which LIC’s name disappeared from the shareholding data include Aban Offshore, Binny Mills, Divgi Torqtransfer Systems, Futura Polyesters, Gateway Distriparks, Kaveri Seed Company, Macrotech Developers, Paradeep Phosphates, Piramal Pharma, Reliance Home Finance, Suraj Estate Developers, SV Global Mill, Texmaco Rail & Engineering, and Yuken India Ltd.

These exits could be attributed to factors such as weak performance or governance issues within some companies, sector-specific challenges, or a strategic redeployment of funds into stocks with stronger growth potential.

March 2025: A Volatile Quarter in Indian Markets

Indian markets witnessed notable volatility in Q4, with benchmark indices Sensex and Nifty registering declines of 0.9% and 0.5%, respectively. The broader BSE MidCap and SmallCap indices saw steeper corrections, falling over 10.6% and 15.5%. The March 2025 quarter was marked by:

• Fears of global rate hikes and geopolitical risks drive high market volatility.
• Heavy FII selling, with foreign investors pulling out capital across emerging markets.
• Fluctuating bond yields and inflation data are creating uncertainty.

During this period, foreign investors pulled out more than ₹1.18 lakh crore from equities, while domestic institutional investors stepped in, making net purchases worth over ₹1.86 lakh crore. Their continued buying kept the market from slipping into deeper corrections. LIC alone emerged as a key buyer during the dips, reflecting its role as a market anchor in times of uncertainty.

What This Means for Investors and the Market

LIC’s actions during the March 2025 quarter offer several takeaways for retail investors and market watchers:

1. Follow the Long-Term Trend

LIC’s consistent investment even during volatile phases shows that market downturns are often opportunities, not threats, for long-term investors.

2. Diversification Is Key

With over 351 stocks in its portfolio, LIC demonstrates the power of diversification across sectors and market caps. This reduces risk and improves the stability of returns.

3. Fundamental Strength Over Hype

LIC tends to stick with fundamentally strong companies, particularly those with consistent earnings, strong balance sheets, and good corporate governance. Investors can take cues from such preferences.

Looking Ahead

To sum up, LIC’s equity investment activity in the March 2025 quarter reveals a carefully thought-out strategy to capture value amidst market uncertainty. The insurer’s net equity buying worth over Rs 47,000 crore, accumulation in 105 stocks, introduction of 13 new names, and strategic exits all point to an agile yet fundamentally grounded investment approach.

As a trusted long-term investor, LIC’s actions impact its portfolio and influence broader market sentiment. For retail investors and mutual funds, LIC’s moves offer important cues on navigating volatility with patience, discipline, and a clear eye on long-term value.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

In a major milestone for India’s stock market, Domestic Institutional Investors (DIIs) have overtaken Foreign Institutional Investors (FIIs) in equity holdings for the first time. This shift highlights the rising strength of local investments as global uncertainties and changing investor preferences reshape the market.

As of March 2025, the assets under custody of DIIs stood at Rs 69.80 lakh crore, while those of FIIs totaled Rs 69.58 lakh crore. Although the gap may appear narrow, the trend represents a major turning point in Indian capital markets, where FIIs have historically commanded the lion’s share of institutional inflows. Source: Moneycontrol/CNBCTV18

The transition reflects the maturing nature of India’s investor base and signifies a potential rebalancing of market forces, where domestic money plays an increasingly central role in driving market sentiment.

A Landmark Shift in Equity Ownership

According to the latest data from ACE Equities, DIIs held approximately 16.91% of Indian equities as of the March 2025 quarter, slightly surpassing FIIs, whose holdings dropped to 16.84%, marking a 50-quarter low. This marginal but symbolically significant shift highlights how domestic capital has steadily gained prominence against foreign capital, particularly in a volatile global macroeconomic environment. Source: Moneycontrol

This shift did not happen overnight. It follows months of consistent domestic buying, which began gaining momentum toward the end of September 2024. During this period, DIIs invested a whopping Rs 3.97 lakh crore, even as FIIs withdrew over Rs 2.06 lakh crore, per data from the National Stock Exchange (NSE) and National Securities Depository Ltd. (NSDL).

What’s Driving the Change?

The growing preference for DII-led investments reflects a lasting change in investor behavior. Market experts believe this shift isn’t only temporary but a long-term trend. While FIIs have been selling steadily due to global issues like geopolitical tensions and rising interest rates, domestic investments have stayed strong. 

This strength is mainly driven by regular investments from retail investors through mutual fund SIPs, which have recently hit record highs. While this shift may not immediately change market valuations, it could help reduce market ups and downs since domestic money tends to stay invested longer, unlike the more volatile FII flows.

A Trend in the Making

This shift has been brewing over the past few years. Since 2021, DIIs have consistently been more aggressive investors in Indian equities than their foreign counterparts. Here’s a year-wise breakdown:

• 2021: DIIs invested over Rs 98,000 crore, while FIIs added a modest Rs 26,000 crore.
• 2022: DIIs stepped up significantly, pouring in over Rs 2.76 lakh crore, as FIIs pulled out a massive Rs 1.28 lakh crore.
• 2023: Investment activity nearly balanced out, with DIIs contributing Rs 1.81 lakh crore and FIIs putting in Rs 1.74 lakh crore.
• 2024: DIIs again took the lead with Rs 5.23 lakh crore in net investments, even as FIIs remained net sellers to Rs 8,000 crore.
• 2025 (so far): The trend continues, with DIIs investing over Rs 2.1 lakh crore, and FIIs withdrawing over Rs 1.07 lakh crore.

These figures underscore a sustained pattern of progressively stronger domestic capital and more erratic foreign flows.

Retail Investors and SIPs: The New Powerhouses

The surge in retail investor participation is a key contributor to the riseof DII . Thanks to improved digital infrastructure, investor education, and long-term awareness campaigns, platforms like mutual funds, pension schemes, and insurance-based investments have attracted growing retail interest.

Systematic Investment Plans (SIPs), in particular, have become a vital component of this trend. Monthly SIP contributions have remained consistently above Rs 15,000 crore, indicating not just the volume but also the discipline of Indian retail investors. This shift is helping transform the Indian market from externally driven to internally funded and supported.

FIIs Still Important, But Less Predictable

While DIIs are rising fast, FIIs are still key players in India’s stock market. Their large and quick trades often influence short-term market movements. However, their behavior has become more unpredictable, driven by global factors like U.S. rate hikes, a strong dollar, or geopolitical tensions. This has led to more frequent sell-offs during periods of market uncertainty.

Market analysts note that FII participation has been inconsistent in recent years. Their periodic outflows have often been synchronized with major corrections in the Indian equity markets. In contrast, domestic flows have acted as a stabilizing counterforce, reducing the amplitude of these corrections.

Implications for Indian Markets

This shift in ownership has several important implications for the future of Indian markets:

1. Lower Volatility: With more stable domestic capital entering the markets, volatility may moderate over time.
2. Greater Resilience: Reduced dependence on foreign flows will likely make Indian equities more resistant to global shocks.
3. Policy Confidence: A rising share of domestic investments reflects growing confidence in India’s economic policies and market infrastructure.
4. Market Depth: More retail and DII participation contributes to broader and deeper capital markets.
5. Shift in Narrative: The traditional belief that Indian markets move only in response to FII action may weaken as domestic flows become dominant.

Conclusion

The overtaking of FIIs by DIIs in equity holdings marks more than a statistical milestone—it’s a paradigm shift. It shows the increasing maturity of India’s investment ecosystem, where homegrown capital now plays the lead role. While foreign investors will continue to remain influential, their role is balanced by strong domestic inflows that are consistent, reliable, and rooted in long-term financial planning.

This shift also aligns with the broader theme of ‘Atmanirbhar Bharat’, as India becomes a global investment destination and a self-sustaining financial powerhouse. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

Last week, the NIFTY with a marginal rise of around 0.05% and the SENSEX with a 0.32% increase, ended the week on a flat note. Though the markets stayed muted throughout the week with minimal fluctuations, a few stocks reached the limelight with their recent financial results. RailTel Corporation of India Limited, or RailTel, posted a share price growth of 13% after announcing the financial results for FY2025 Q4.

Let’s look at the company’s recent performance and understand the surging prices.

Overview Of RailTel

RailTel is one of India’s largest neutral telecom infrastructure providers. Its pan-India optical fiber network is built along railway tracks. RailTel plays a strategic role in Indian Railways’ digital modernization, delivering services like e-Office, video surveillance, and high-capacity connectivity. 

RailTel Corporation of India Limited: Snapshot
Key Metrics	Details
Status	Navratna CPSE under the Ministry of Railways
Year of Incorporation	2000
Optic Fiber Network	61,000+ route km
Railway Stations Connected	6,100+
Citywide Access Network	21,000+ km
Tier-III Data Centers	2 (Gurugram & Secunderabad)
Public Wi-Fi Deployment	6,100+ stations

RailTel enables enterprises and telecom operators with broadband, VPN, leased lines, and internet services, and leads major national projects like BharatNet and the National Knowledge Network. The company also offers large-scale public Wi-Fi and IT/ITES solutions and is expanding into data center and edge computing services to meet rising digital demand.

Q4 Financial Results Highlights:

1. Revenue and Net Profit:

The company’s revenue mix consists of six streams of income-

Income Source	Revenue Share (%)
ISP services	17%
IP-1 Services	9%
NLD Services	23%
Income from railway projects	10%
Income from other projects	39%
Other Income	2%

In Q4 FY25, RailTel reported a revenue of Rs. 1,308.28 crore, reflecting a 57% year-on-year increase from Rs. 832.7 crore in Q4 FY24. This was the highest revenue recorded across the past five quarters, with sequential growth observed throughout the fiscal year. Plus, the net profit for Q4 FY25 stood at Rs. 113.4 crore, up 46.3% year-on-year from Rs. 77.53 crore in the same period last year. This was also the highest net profit among the last five quarters. 

2. Order Book:

As of May 2025, RailTel’s order book stands at Rs.  6,616 crore, reflecting a solid pipeline for future revenue. This marks an increase from Rs.  4,900 crore in January 2025. 

Client/Partner	Project Description	Value
Ircon International	Tunnel communication for the Sivok-Rangpo rail line	Rs.  163 crore
East Central Railway	Kavach (train collision avoidance system)	Rs.  288 crore
EPFO	Infrastructure development	Rs.  170.25 crore
Gujarat Government	CCTV surveillance system	Rs.  144.88 crore
Adani Connex	Service order	Rs.  134.46 crore
Western Railway	Unified communication infrastructure	Rs.  124.90 crore
REC Limited (MoU)	Funding support for infra projects (5-year plan)	Rs.  30,000 crore

Additionally, RailTel has secured multiple IT and telecom projects from HPCL, GAIL, the Ministry of Defence, and various railway zones, including Northern, North Central, and Western Railways. 

3. Other KPI Metrics:

RailTel Corporation of India Limited reported an Earnings Per Share (EPS) of Rs. 3.53 in Q4 FY25, compared to a full-year EPS of Rs. 7.67 in FY24. The company offered a dividend yield of 0.90% and had declared 10 dividends since March 2021, including multiple interim dividends during FY25. 

Plus, the EBITDA margin for Q4 FY25 stood at 13.73%, compared to 14.0% in Q4 FY24 and 19.2% in Q4 FY23. As of March 2025, the company maintained a debt-to-equity ratio of 0%

Implications Of The Q4 Results on The Share Price:

Following announcing its Q4 FY25 results, RailTel Corporation of India’s shares witnessed a sharp rally, rising over 13% in intraday trading on Friday. The stock touched a high of Rs. 336.40, driven by a 46.33% year-on-year increase in quarterly profit. It later closed at Rs. 316. As of 1 PM on 5th May 2025, the stock was trading at Rs. 321.60, reflecting a 1.7% gain from the previous close.

Though the Q4 results were the primary driver of the surge, other factors likely contributed. These include RailTel’s expansion into data centers, the Rs. 30,000 crore MoU with REC for future projects, and international opportunities with NBCC. Continued government focus on digital and railway modernization also supports positive investor sentiment.

Takeaway For Investors:

RailTel Corporation of India Limited, a Navratna PSU, has consistently grown, particularly in Q4 FY25. Its strong financial results and new work orders in defense, railways, and public infrastructure have driven share price appreciation. Additionally, with expansions into data centers and international markets, RailTel is positioning itself for future growth. However, whether the growth trajectory continues or changes depends on multiple external factors. 

Bottomline:

RailTel Corporation of India Limited has demonstrated a robust performance in Q4 FY25, with strong revenue growth, rising net profits, and a growing order book. The recent surge in its share price highlights investor optimism around its financial results and strategic expansions. However, as with any stock, research is essential, as other factors may influence future performance.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Corporate actions often create ripples across the stock market, impacting stock prices, investor sentiment, and long-term valuations. The most recent instance of this effect was seen on 29th April 2025, when Bajaj Finance announced a bonus share issue, a stock split, and declared a dividend, making it one of the most shareholder-friendly steps by a major Indian financial company. What does this series of corporate actions signify? How are the shareholders affected by this move? Let’s understand. 

Overview of Bajaj Finance Limited:

Founded 1987 as a vehicle financing firm, Bajaj Finance Limited (BFL) has grown into one of India’s largest and most diversified non-banking financial companies (NBFCs). BFL serves over 101 million customers as of March 2025, with operations across 4,145 locations in India. The company has established a strong presence in urban and rural markets, offering financial services tailored to various customer segments. Over the years, it has introduced 26 product lines and 51 product variants, supported by technology-driven innovations such as the EMI Card and Flexi loan offerings.

1. Operational Overview:

Bajaj Finance operates across three segments:

• Consumer finance: personal loans, gold loans, home loans, lifestyle, and digital product financing
• SME finance: business loans, working capital loans, and loans against property
• Commercial lending: vendor finance, lease rental discounting

The company also accepts deposits and offers investment products like fixed deposits and mutual funds. Through subsidiaries Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd., it has expanded into housing finance and capital markets.

2. Financial Picture:

Bajaj Finance has recorded steady financial growth over the past five fiscal years. 

The company’s key profitability metrics, such as ROA and ROE, stood at 4.6% and 19.2%, respectively, while asset quality remained stable with a Gross NPA of 0.96% and Net NPA of 0.44%. Bajaj Finance maintained a healthy Capital Adequacy Ratio (CAR) of 21.93% as of March 2025.

Additionally, 

Financial Metric	FY25 (as of March 2025)	FY24 (as of March 2024)	YoY Growth
Assets Under Management (AUM)	Rs.416,661 crore	Rs.3,30,615 crore	26%
Net Interest Income (NII)	Rs.9,807 crore	Rs.8,013 crore	22%

Corporate Actions Of Bajaj Finance:

On 29th April 2025, Bajaj Finance Limited unveiled a trio of shareholder-centric corporate actions: bonus shares, a stock split, and substantial dividend payouts.

1. Bonus Share Issue – 4:1 Ratio:

Bajaj Finance announced a bonus share issue in a 4:1 ratio. Shareholders will receive four additional equity shares for every one share held, with a face value of Rs.1 each. The bonus issue will be funded through the company’s free reserves of Rs.497 crore. The process is scheduled for completion on or before 27 June 2025, subject to necessary approvals. This is the company’s second bonus issue, which occurred in September 2016 in a 1:1 ratio.

2. Stock Split – 1:2 Ratio:

The board approved a stock split in the Ratio of 1:2. Each equity share with a face value of Rs.2 will be subdivided into two equity shares of Rs.1 each. The record date for the split has yet to be announced, and completion is planned by or before 27 June 2025. This is Bajaj Finance’s second stock split; the first took place in September 2016 in a 1:5 ratio.

3. Dividend Declaration – Rs 56 per Share:

The company declared a special interim dividend of Rs.12 per share (600% of face value). It recommended a final dividend of Rs.44 per share (2200% of face value), bringing the total dividend to Rs.56 per share for FY25. The special dividend is linked to gains from Bajaj Housing Finance Limited’s IPO. 

The record date for the interim dividend is 9 May 2025, with payment scheduled on or around 26 May 2025. The final dividend is subject to shareholder approval at the AGM on 24 July 2025, with a record date of 30 May and expected payment on or about 28 July 2025. 

Implications Of The Corporate Actions:

• Market Reaction: Shares fell nearly 5% on 30 April 2025, closing at Rs.8,634.50 after the announcements. However, they rebounded 2.7% on 2 May, closing at Rs.8,868, reflecting a short-term market adjustment to the corporate actions.

• Stock Split (1:2): Each existing share will be split into two, doubling the number of shares held while halving the price per share. This does not affect the total value of holdings but improves stock accessibility and liquidity.
• Bonus Share Issue (4:1): Shareholders will receive four additional shares for every one share owned (post-split), increasing their total share count fivefold. The share price will adjust accordingly, with no change in overall portfolio value. Bonus shares are not taxed upon receipt, but capital gains tax applies to future sales.

So, as a result of the corporate actions, say if you owned 1,000 shares of Bajaj Finance before the corporate actions, the 1:2 stock split would double your shares to 2,000. After that, the 4:1 bonus issue would give you 8,000 more shares (4 bonus shares for every 1 held). So, in total, you would now have 10,000 shares. However, while the number of shares increases, the total value of your investment stays the same right after the changes, as the share price adjusts accordingly. 

Bottomline:

Bajaj Finance’s recent corporate actions, including declaring bonus shares, stock splits, and dividends, showcase its strong financial position and commitment to rewarding its shareholders. While these changes will affect your shareholding and the stock’s market dynamics, the overall value of your investment remains unchanged initially. As always, evaluating these developments carefully and conducting thorough research before making any investment decisions is essential.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ