ICICI Securities Limited Broker Research reports

Supreme Industries (SI) reported Q4FY25 blended plastics volume growth of 2.3% YoY (6-year CAGR of 9.8%) with pipes segment reporting modest 2.2% YoY volume growth (6-year CAGR of 11.7%) on a high base YoY. Blended EBIT/kg contracted 23.1% YoY to INR16.5 (+19.2% QoQ) as pipes EBIT/kg fell 27.8% YoY to INR 13.3 (+22.3% QoQ), partly due to inventory losses.

Aavas Financiers (Aavas) reported in-line Q4FY25 financial performance, evident in strong 6% QoQ AUM growth, steady 15bps credit cost, 46bps QoQ dip in 1+ DPD to 3.39% and RoA at 3.3%.

Cyient-DET reported a miss on revenue growth and margin in Q4, exiting FY25 with a full-year 3% YoY CC decline, steeper than its (-2.7%) guidance. Transportation vertical’s decline was cushioned by some traction in the aerospace sub-vertical and sustainability.

LTTS reported a slight underperformance on the revenue growth front, caused by the prevailing macro uncertainties. The company missed its 10% YoY guided revenue growth target mildly for FY25. Operating margin, at 13.2%, was down 270bps on account of Intelliswift consolidation impact.

TechM’s turnaround efforts are yielding results with its BFSI portfolio strengthening, large logo additions, a stronger deal TCV run-rate and improvement in margins. Strong new deal TCV growth of 42.6% YoY provides some comfort on FY26 growth outlook.

Axis Bank (Axis) reported ~13% rise in Q4FY25 net profit to INR 71.2bn (flattish YoY; 8% beat) on the back of ~2% rise in PPOP (in-line). Provisions declined sharply, led by INR 8bn reversals on government-backed SR.

Nestle’s Q4FY25 operational performance was subdued with revenue growth of 4% YoY on a high base of 9% and ~100 bps margin contraction primarily due to inflationary pressures in key raw materials such as coffee, edible oil and palm oil.

Thyrocare Technologies’ (Thyrocare) outperformance in Q4FY25 was driven by surge in volumes (up 15%) and realisation improvement, partially offset by higher ESOP cost.

LTIM reported muted performance with revenue growth down 0.6%/0.7% CC/USD QoQ, underperforming I-Sec estimates. Factors leading to slower growth were, Delayed ramp-up and deferral of deals, Ramp-down in healthcare vertical and Top-5 clients’ revenue declining from AI-led gain sharing.

Havells reported stronger-than-expected Q4FY25, partially led by higher trade inventory up-stocking in air conditioners. There is strong revenue growth of 39% in Lloyd. While there is healthy growth in primary sales, the company believes there is a possibility for slowdown in secondary sales in Q1FY26.