Indian firms post mixed Q1 results as tech profits rise, real estate dips
India's first-quarter earnings season showed diverging corporate performance, with IT contractors like Tech Mahindra posting strong profit growth while a high-base effect dragged down real estate bookings at Prestige Estates.
Indian IT contractors showed diverging growth trajectories in the June quarter. Tech Mahindra posted a consolidated net profit of Rs 1,465 crore, a nearly 28% year-on-year increase from Rs 1,140.6 crore in the prior year. Rival Wipro reported a more muted 1% rise in net profit to Rs 3,352 crore, up from Rs 3,330 crore, but its board approved an interim dividend of Rs 2 per share.
The contrast highlights varying execution speeds among India's top outsourcing firms as they navigate shifting global technology demand. While Tech Mahindra's double-digit profit surge suggests strong operational leverage, Wipro's marginal bottom-line growth points to ongoing margin pressures despite returning cash to shareholders.
Outside of technology, the real estate sector showed signs of normalising after a period of exceptional growth. Prestige Estates Projects reported a 46% decline in first-quarter sales bookings to Rs 6,579.3 crore, down from Rs 12,126 crore a year earlier. The drop was driven by a high base effect following a major big-ticket project launch in the Delhi-NCR region during the same period last year.
Conversely, the hospitality sector continued its upward trajectory. ITC Hotels reported a 35.5% year-on-year jump in first-quarter net profit to Rs 180 crore, up from Rs 133 crore, indicating sustained travel and leisure spending.
In the energy transition space, ACME Solar Holdings secured Rs 2,646.64 crore in long-term project financing from state-run REC Limited. The capital will fund a 450MW solar generation project paired with 1,800MWh of battery storage, a significant step for delivering firm, dispatchable renewable power in the Indian market.
Consumer goods conglomerate ITC signalled confidence in its expanding packaged food business. Hemant Malik, executive director and food division chief executive, said the company expects stronger demand in the second half of the fiscal year. Malik cited the upcoming festive season, a shift toward premiumisation in both urban and rural markets, and growing consumer preference for health-oriented products.
In the automotive sector, Maruti Suzuki said it will challenge a ruling by the District Consumer Disputes Redressal Commission in Raipur. The commission ordered the carmaker to replace a customer's vehicle with a new E20 compatible model due to fuel contamination, a rare legal development for India's dominant passenger vehicle manufacturer.
