Result preview: Capital goods sector may see modest profit growth in Q4

It would be supported by a rebound in defence and transmission orders

India’s capital goods sector is expected to post modest profit growth during the fourth quarter of 2024-25 (FY25), supported by a rebound in order inflows from the defence and transmission segments. This comes even as a broader revival in public and private sector ordering remains elusive.

 

Analysts tracking the sector expect improved execution and a healthy backlog to drive revenue growth.

 

Bloomberg analysts’ poll shows a likely double-digit rate of growth in net sales, earnings before interest, tax, depreciation and amortisation (Ebitda) and profit after tax (PAT) for most companies in this segment.

 

Analysts with brokerage firm Motilal Oswal said