Indian benchmarks retreat as consumer profits jump and pharma sales slide
Benchmark indices retreated as broader markets weakened, even as companies like Voltas and Patanjali Foods reported strong profit growth while Natco Pharma struggled with falling generic drug sales.
Indian equity benchmarks closed lower on Friday as broader indices bore the brunt of selling pressure, despite crude oil prices stabilizing near $87 per barrel. The Sensex declined 71 points to finish at 78,009, while the Nifty 50 shed 30 points to end the session at 24,366.
Smaller companies faced steeper declines, with both the Nifty Smallcap 100 and Nifty Midcap 100 indices dropping approximately 0.7 percent. According to technical analysis from SBI Securities, the Nifty faces immediate resistance between 24,500 and 24,550. A breakthrough could push the index toward 24,700 and eventually 24,850, while downside support rests in the 24,200 to 24,230 range.
Corporate earnings presented a divided picture for investors, with consumer-facing businesses delivering robust bottom-line expansion. Voltas posted a 52 percent year-on-year jump in fourth-quarter consolidated net profit to 214 crore rupees. This growth was driven by a 19 percent increase in operational revenue to 4,673 crore rupees.
Similarly, Patanjali Foods saw its first-quarter consolidated net profit surge 86 percent to 335.73 crore rupees. The manufacturer benefited from a substantial rise in total income, which climbed to 11,341.89 crore rupees from 8,779 crore rupees a year earlier. Kwality Wall’s also participated in the consumer rally, reporting a 35 percent profit increase to 51 crore rupees for its fourth quarter as revenue expanded to 880 crore rupees.
In the education technology sector, PhysicsWallah continued its path toward sustainable margins by narrowing its consolidated net loss by 31 percent to 88.3 crore rupees for the April-June period. Operating revenue grew 24 percent to 1,054 crore rupees, primarily led by its online division. The company maintained its fiscal 2027 guidance for over 30 percent revenue growth and full-year profitability, noting that a delayed NEET examination cycle merely shifted student enrollments to subsequent quarters.
State-owned miner NMDC provided steady returns, posting a marginal 2 percent rise in first-quarter consolidated net profit to 2,005.71 crore rupees. The slight earnings bump was underpinned by higher iron ore sales, which pushed total income up 1.5 percent to 7,142.54 crore rupees.
However, the pharmaceutical sector faced notable headwinds during the reporting period. Natco Pharma reported a severe 57 percent plunge in first-quarter consolidated net profit, dropping to 206.5 crore rupees. The generic drugmaker’s top line contracted sharply to 735.2 crore rupees from 1,328.9 crore rupees in the prior year, heavily impacted by diminished sales of its lenalidomide cancer treatment.
