Q4 Superstars! DLF, Zen Tech among 58 companies that posted over 100% YoY jump in profit and revenue. Do you own?
In a welcome departure from the past three quarters, the January-March earnings season turned out to be ahead of analysts' estimates. In this quarter, some 60 BSE-listed companies reported over 100% growth in both profit and revenue from operations, according to an analysis by Mint.
However, the list largely included names from the mid-cap and small-cap segment, with only realty major DLF and Adani group company Adani Energy Solutions making the cut from the large-cap space.
DLF, whose shares have lost almost 7% in the last one year, reported a 250% year-on-year (YoY) rise in Q4 profit to ₹ 1,550 crore while its total income surged 142% YoY to ₹ 3057 crore during the same period.
Meanwhile, Adani Energy Solutions has seen a 166% YoY rise in Q4 PAT along with a 127% jump in total income. Despite that, Adani Energy shares have cracked 29% in a year, plagued by various issues ranging from US bribery indictment to regulatory scrutiny. Late last night, The Wall Street Journal reported that the US prosecutors are probing the Indian conglomerate's possible dealings with sanctions-hit Iran, resulting in a decline in the company's shares today, June 3.
Apart from these two biggies, from the 56 mid-cap and small-cap stocks that featured on the list, some prominent names are Zen Technologies, KPI Green Energy, Bharat Dalmia, Keystone Realtor, Allcargo and MRP Agro, among others.
The multibagger small-cap defence stock Zen Technologies (up 117% in a year) has hogged the limelight amid the India-Pakistan conflict amid Operation Sindoor. In the last one month alone, the stock has gained 55%. During the March 2024 quarter, it witnessed a 157% jump in Q4 PAT and a 126% rise in Q4 income to ₹ 85 crore and ₹ 494 crore, respectively.
However, domestic brokerage Motilal Oswal had downgraded the stock to 'Neutral' from 'Buy', citing expensive valuations amid a strong run-up.
KPI Green Energy, another small-cap multibagger, saw a 232% growth in profit. Meanwhile, Dalmia Bharat's PAT surged a whopping 600%.
In the small-cap space, Harsh Goenka-owned RPG Life Sciences reported a massive 786% jump in Q4 profit to ₹ 117.35 crore, while its income rose 101% YoY to ₹ 258.05 crore.
Some 13 minnows also posted a four-digit PAT growth, which included names like Corporate Merchant Bankers, Choice International, Indian Hume Pipes, MRF Agro and Yogi Limited.
Maharashtra Scooters stood out for reporting a 51,530% YoY surge in Q4 PAT, as the bottomline jumped from ₹ 0.1 crore to ₹ 51.63 crore. Its revenue also zoomed 1144% YoY.
Analysts at Motilal Oswal Financial Services said that the quality of results was notable in Q4, with widespread distribution of strong growth across several mid-cap sectors – in several cases better than the large-cap counterparts.
While some small-caps stood out for their exceptional performance, MOSL added that the segment overall missed estimates.
"The small-cap segment saw a sharp earnings miss in Q4FY25, with overall PAT down 16% YoY—significantly worse than the already muted expectations. Financials, retail, and discretionary consumption dragged down performance, while only a few sectors like EMS and Capital Goods delivered meaningful gains," it said.
Commenting on the outlook for small-cap stocks' earnings, MOSL said that small-caps remain a barbell segment — capable of both strong rebounds and deep corrections.
"Earnings volatility remains high, and stock selection is critical. Investors should focus on quality names with sustainable business models, visibility, and operating leverage," the brokerage advised.
With the macroeconomic conditions favourable, the only missing piece for the Indian stock market has been the earnings recovery. However, despite the Q4 earnings season being better than expected, analysts at Kotak Institutional Equities expect markets to be rangebound.
The Indian market may stay rangebound over the next few months given (1) rich valuations in general, (2) continued weakness in domestic consumption and investment demand and (3) global geopolitical and macroeconomic uncertainty, KIE said.
It believes that the large-cap index may find some support from continued optimism among investors about India's long-term growth prospects and lower interest rates. However, it cautioned that small-cap and mid-cap stocks still have a long way to correct to their fair values.
(Note: For the purpose of this study, companies with profit of less than ₹ 1 crore were not considered)
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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