As the IT sector reveals its Q2 results alongside major player Reliance Industries (RIL), the trend of earnings continues with several key companies set to report their Q2 earnings after Diwali 2025. With the arrival of Samvat 2082, analysts are optimistic that earnings will improve and support the broader market.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments believes that the important takeaway from Samvat 2081 is India’s huge underperformance. Even though there are many reasons, including Trump tariffs, for this underperformance, the single major factor is the sharp decline in India’s earnings growth to 5 % in FY 25 from average 24 % during the three years before that.
Since “ in the long run the market is a slave of earnings” the major trend, going forward, will depend on how earnings growth pans out, said Vijayakumar.
The domestic benchmark indices, Sensex and Nifty 50, are anticipated to open higher on Thursday, fueled by optimism regarding a potential trade agreement between India and the US. The GIFT Nifty futures were up by 363 points, reaching 26,267.
The stock market was closed on Wednesday, October 22, on account of Diwali Balipratipada.
Asian markets are experiencing declines, influenced by the drop in Wall Street due to worries over US-China trade tensions. Most recently, Japan’s Nikkei 225 index decreased by 0.1%, Hong Kong’s Hang Seng index fell by 0.22%, and South Korea’s KOSPI index went down by 0.09%.
In the US, the equity markets finished lower after a busy day filled with corporate earnings reports and renewed tensions surrounding US-China trade. During this period, with the US government shutdown stretching into its fourth week, the tech-heavy Nasdaq fell by 0.9%, the Dow Jones Industrial Average declined by 0.7%, and the S&P 500 dropped by 0.5%.
Q2 results today
Today, a handful of major companies will be releasing their Q2 results, including Andhra Cements Ltd, Colgate Palmolive (India) Ltd, Fabtech Technologies Ltd, Hindustan Unilever Ltd (HUL), Jumbo Bag Ltd, Laurus Labs Ltd, PTC India Financial Services Ltd, Sagar Cements Ltd, South India Paper Mills Ltd, Tata Teleservices (Maharashtra) Ltd, and Vardhman Textiles Ltd.
Hindustan Unilever Ltd
HUL is projected to show a subdued performance for the September quarter, as recent GST rate reductions and prolonged monsoon conditions hindered sales momentum, coupled with weak underlying demand and inventory destocking affecting volumes. Analysts suggest that the short-term weaknesses are primarily temporary, anticipating that the company will bounce back in the upcoming quarters once the effects of the GST normalization occur.
Kotak Equities indicated that HUL’s business performance is anticipated to remain nearly flat or show low single-digit growth, with de-stocking across various product categories impacting overall revenue expansion.
“We anticipate 0.5% growth in underlying volume and sales due to the temporary effects of the GST rate adjustment,” the brokerage remarked, predicting a 7.6% reduction in PAT attributed to decreased other income and weakened operating leverage.
Nuvama also highlighted temporary disruptions resulting from the GST adjustment, forecasting flat underlying volumes and a 1% increase in revenue for Q2FY26. The brokerage projects a 5% year-over-year decline in EBITDA as gross margins are expected to drop by 159 basis points to approximately 50%, influenced by lower prices conveyed to consumers.
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