Best of the Week | India Inc delivers a profit punch in Q4—who’s winning, who’s wobbling?

Dear reader,

In a year overshadowed by global volatility, tariff tremors, and subdued demand, some companies still managed to pull off double-digit profit growth. According to a Mint analysis of 329 listed firms, Q4 net profit rose over 12% year-on-year—even as topline growth stayed tepid at just 2%. Strip out the BFSI sector, and it gets even more interesting: profits rose 14.3%, revealing how margin gains are powering India Inc. through the fog.

The secret sauce? Cost controls, leaner wage bills, smarter pricing, and operational agility. Operating margins rose steadily every quarter, reaching 28.8% in the fourth quarter of 2024-25 from 26% in Q1. Yet, only 8% of companies managed to steadily grow their net profit margins across all four quarters. 

Mint’s Manjul Paul kicked off an exclusive series decoding the hits and misses of India Inc's fourth-quarter earnings season:

Part 1: Early birds steady wings after a dip in December quarter

Part 2: Q4 earnings watch: An unwelcome trend of profit reversals for India Inc

Part 3: Q4 earnings watch: India’s profit-hungry companies go lean on employee costs

Part 4: Q4 earnings watch: Companies shrug off headwinds to pocket more profit per rupee 

On to the best of Mint’s work from his week. 

Green steel push

The Indian government is positioning public sector undertakings as key drivers of India’s green steel revolution by making them early adopters of eco-friendly steel. Following the finalisation of the Green Steel Taxonomy in December, the steel ministry has asked infrastructure-related ministries to direct PSUs under their purview to begin procuring green steel—steel with emissions below 2.2 tonnes of CO2e per tonne of finished steel. The plan includes securing up to 25 million tonnes of demand, encouraging broader adoption, and boosting industry compliance with upcoming carbon regulations. Major producers like AMNS and SAIL are already aligning operations to meet the green criteria. Read more.

Crystal ball gazing

Indian equities are facing a turbulent 2025, shaken by geopolitical flare-ups, weak earnings, steep valuations, and global trade disruptions. A Mint survey of 30 investment professionals found that 77% anticipate moderate-to-high volatility in the next three months, largely due to US-China tariff tensions and concerns over potential Indian military action after a terror attack in Kashmir. Still, India may stand out as a relative safe haven among emerging markets, thanks to policy stability and economic scale. Large-cap stocks, particularly in the BFSI, auto, and healthcare sectors, are seen as attractive after recent corrections, while mid- and small-caps offer mixed opportunities. Read more.

In the know

A forensic audit by Grant Thornton has found that former IndusInd Bank deputy CEO Arun Khurana was aware of incorrect accounting of internal derivative trades, a person aware of the matter told Mint’s banking editor Shayan Ghosh. The incorrect accounting led to a ₹1,959 crore shortfall. Khurana allegedly ignored red flags raised by the finance team, email evidence suggests. Khurana’s dismissal of concerns and conflicting statements from bank officials during the audit further deepened the suspicion. Khurana resigned on 28 April, two days after the audit was submitted, and CEO Sumant Kathpalia stepped down the following day, citing “moral responsibility”. Read more.

Thermax’s big test

Thermax’s stock has tumbled over 40% from its 2024 high as growth slows and losses mount in its green energy ventures. Once a pandemic-era sustainability favourite, the company now faces execution delays, cost overruns, and falling investor confidence. CEO Ashish Bhandari is betting big on energy transition services like renewable steam and bio-CNG, but Thermax’s conservative style, low debt appetite, and limited project execution track record are proving challenging. While core industrial product sales remain stable, analysts argue Thermax lacks the project DNA to scale its new businesses. For now, its reinvention story remains a work in progress. Read more.

Flexing a new fuel?

Last month, Nitin Gadkari, Union minister of road transport and highways, drove a 100% bio-ethanol flex-fuel Toyota Innova to promote the use of ethanol-powered vehicles in India. As a key advocate for reducing oil dependence, Gadkari emphasised ethanol as an eco-friendly and cost-effective alternative to petrol. The government has been pushing for the adoption of alternative fuels like ethanol, alongside electric vehicles and compressed biogas, to reduce both emissions and oil imports. Flex-fuel vehicles, capable of running on a blend of up to 85% ethanol, offer a cleaner alternative since ethanol is derived from agricultural crops such as sugarcane and corn, resulting in lower emissions. With ethanol-based fuel potentially costing ₹60-70 per litre for an E85 blend, compared to ₹95 for petrol, it could be a more affordable option. However, large-scale ethanol production is still in the works, with the government setting up plants to increase supply. Read this Long Story to understand how automakers in India are doubling down on flex-fuel.

India plots third-country trade squeeze on Pakistan

India is set to urge key partners including the UAE, Oman, and Singapore to block Indian goods from being rerouted to Pakistan via third countries—a backdoor trade route worth over $10 billion annually. Following the suspension of the Indus Waters Treaty after a deadly terror attack in Kashmir, this economic countermeasure aims to tighten pressure on Pakistan. Indian exports—especially pharma, food, and chemicals—often reach Pakistan through relabelled shipments at transshipment hubs. The Centre also plans to nudge exporters to avoid trade with intermediaries known to redirect goods to Pakistan. Read more.

Small studios, big dreams!

While big-budget Hindi films struggle, emerging production houses like B62 Studios are rewriting the script. Their low-cost film Article 370 stunned the industry with ₹100 crore in global gross, proving content can trump star power. Over a dozen new studios—helmed by actors, storytellers—are banking on smart production, lean budgets, and multiple revenue streams. Amid a box office crisis, these agile players are fuelling Bollywood’s creative revival. From Netflix deals to global premieres, they’re building the industry’s backbone—one story-driven gamble at a time. Read more.

India to fast-track FDI approvals

India plans to authorize its trade missions abroad to grant in-principle approvals for FDI proposals. The initiative, under discussion by key ministries including commerce, external affairs, and finance, aims to reduce bureaucratic delays and reverse the declining FDI trend. By allowing investors to initiate site selection and partnerships early, the new approach—targeting sectors such as defence, telecom, and e-commerce—promises a streamlined process aligned with India’s ‘Ease of Doing Business’ vision amid global supply chain realignments and waning interest in China. Read more.

India’s deeptech dream

Commerce minister Piyush Goyal’s critique that India lags China in true innovation sparked debate—but also highlighted a hard truth. While Indian startups have flourished in SaaS and food delivery, deeptech innovation—built on slow, costly scientific breakthroughs—remains nascent. Unlike consumer tech, deeptech demands years of R&D, multidisciplinary teams, and patient capital. Startups like Bugworks and Tonbo Imaging thrive by tapping into global ecosystems, not just VC funds. Despite recent policy support, India still lacks the labs, field-testing infrastructure, and collaboration culture vital to building world-class, science-first startups from the ground up. Read more.

FPIs calm amid border tensions

Despite rising geopolitical heat after the terror attack in Kashmir, foreign portfolio investors aren't panicking. Instead, they’ve slashed their bearish option bets—cutting net index put positions from over 170,000 to just 6,359 contracts in a day—signalling confidence in market stability. FPIs also net bought over ₹27,600 crore in the second half of April, reflecting optimism over a potential US-India trade deal. While tensions with Pakistan simmer, FPIs seem to be backing resilience over retaliation. Read more.

That’s all for this week!

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Best,

Shravani Sinha