Largecap segment shines in Q4 amid broad sectoral divergence: Equirus Sec

Of the 270 companies analysed, largecaps saw a 6 per cent Y-o-Y earnings rise, midcaps gained 2 per cent, while smallcaps slumped 16 per cent.

Equirius Securities on Q4FY25 results: Equirus Securities, in its quarterly market report dated June 14, 2025, highlighted the strong performance of largecap companies during Q4 of financial year 2024-25 (Q4FY25), with earnings and earnings before interest, tax, depreciation and amortisation (Ebitda) figures exceeding expectations across the board. 

 

The brokerage’s analysis, covering 270 stocks, revealed a stark difference between large, mid, and small-cap segments, underscoring investor preference for more established entities amid a volatile economic landscape.

 

While prevailing narratives have focused on earnings downgrades, Equirus Securities countered this with data showing Ebitda and earnings surpassing expectations by 4 per cent and 5 per cent respectively. On a year-on-year (Y-o-Y) basis, Ebitda grew 6 per cent, while earnings rose 4 per cent. Revenue growth remained largely consistent with expectations, posting a 5 per cent Y-o-Y increase.  Catch Stock Market Updates Today LIVE

 

The breakdown by market capitalisation further illustrated the contrast in performance. Among the 270 companies analysed, large-cap firms (54) recorded a robust 6 per cent Y-o-Y earnings growth. Mid-caps (68 firms) managed a modest 2 per cent increase, while small-caps (148 companies) suffered a steep 16 per cent decline in earnings. The sharp contrast, analysts said, signals a continued ‘flight to quality,’ with market participants favouring well-established players that offer greater stability and resilience in uncertain times.

 

When examined sectorally, the Equirus Securities Universe—excluding Oil Marketing Companies (OMCs)—posted Ebitda and earnings growth of 5 per cent and 3 per cent respectively. The performance was even stronger when excluding the BFSI (Banking, Financial Services, and Insurance) sector, with Ebitda rising 7 per cent and earnings 6 per cent Y-o-Y. Sectors such as Retail, Pharma, Capital Goods, and Consumer Durables stood out with high operating profit growth. On the other hand, FMCG, Infrastructure, IT, and Auto sectors registered relatively weaker performance.

 

Top-performing sectors in Q4FY25 included the Internet, which led the way with a 48 per cent revenue growth and a 37 per cent rise in profit after tax (PAT). Chemicals followed with 10 per cent revenue growth and a 46 per cent PAT growth. Consumer Durables also posted robust numbers, with revenue and PAT growth of 19 per cent and 31 per cent respectively. Other sectors like Healthcare, Cement, Auto Ancillaries, and Autos showed moderate to strong growth, underlining sectoral momentum beyond the largecaps.

 

Conversely, sectors such as Building Materials, Consumer Staples, and Industrials lagged behind. Building Materials posted a 6 per cent rise in revenue but suffered an 18 per cent decline in PAT. Consumer Staples’ revenue also grew 6 per cent but saw a 7 per cent fall in profits, while Industrials showed minimal earnings improvement despite a 6 per cent revenue uptick.

 

On the earnings guidance front, about 28 per cent of companies saw upgrades in their FY26 earnings per share (EPS) estimates. The optimism, analysts believe, was largely driven by sectors like Capital Markets, Chemicals, Defence, Metals, and Textiles. In contrast, EPS downgrades were noted in the Consumer Durables, FMCG, and Building Materials sectors—signaling possible structural or demand-side challenges.

 

Therefore, the brokerage concluded with a cautiously optimistic outlook. It noted that while several sectors may grapple with input cost pressures and pricing volatility, initiatives such as cost efficiency, product innovation, and geographical expansion are expected to help companies maintain or enhance profitability.