Interestingly, companies that have reported losses in Q2 together boast a market capitalisation of ₹ 11 lakh crore. Further, on average, about 145 companies have reported losses in every quarter since September 2021, according to the Ace Equity database. Only companies with a minimum market capitalisation of ₹1,000 crore and a quarterly revenue of at least ₹100 crore are included in the sample.
While the country’s largest airline—InterGlobe Aviation—slipped to losses for the first time in two years, shadow lender Sammaan Capital reported losses in Q2FY25 for the first time in 20 years. The operating profit of the airline came in below Street estimates due to inflationary pressures and aircraft grounding.
Many analysts, including Morgan Stanley, reduced their earnings targets on the airline after its Q2 losses. While Morgan Stanley cuts its FY25 earnings estimates by 26%, domestic brokerage Nuvama reduced its FY25 and FY26 earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (Ebitdar) by 14% and 7%, respectively.
Other prominent companies that have reported losses in the September quarter include UPL, Poonawalla Fincorp, Mangalore Refinery & Petrochemicals, Chennai Petroleum, India Cements, and among others.
Among listed companies, Vodafone Idea posted the highest net loss of ₹7,176 crore in the September quarter. In fact, the telecom player has been reporting losses in every quarter for the last six years. Similarly, companies like MTNL, Tata Teleservices Maharashtra, Jaiprakash Associates, GMR Airports are some other entities that have been posting losses for the last many quarters.
Even agrochemical major UPL reported losses for the second quarter in a row, taking its total losses for FY25 to ₹ 827 crore. The company attributes the recurring loss due to lower EBITDA and a significant increase in tax provision.
According to the company, non-recognition of deferred tax assets as well as reversal of tax liability caused a dent in the bottom line.
Similarly, Poonawalla Fincorp swung to losses in the September quarter for the first time since FY21. The non-banking finance company reported a net loss of ₹471 crore in Q2FY25 against a net profit of ₹1,260 crore a year ago.
The impact on earnings was largely due to higher investments in technology, distribution, and people during the quarter. Additionally, it made an additional provisioning of ₹666 crore during the quarter for its short-term personal loans (STPL) book.
