Research Reports
|
Updated on 10 Nov 2025, 07:48 am
Reviewed By
Satyam Jha | Whalesbook News Team
▶
The news highlights a crucial trend for investors: companies successfully transitioning from losses to profits. This often signifies effective management of operational or financial challenges, paving the way for sustainable growth. A turnaround in profitability can attract more investors, potentially boosting stock prices.
Here's a look at the five companies that reported profits in the September 2025 quarter compared to the September 2024 quarter:
1. **Indian Oil Corporation**: Reported a net profit of Rs 81,910 million (m) from a loss of Rs 4,490 m. This was driven by improved Gross Refining Margins (GRM) to US$ 19.6 per barrel and an expansion in gross operating profit margin to 9% from 2% YoY. The company is also investing heavily in petrochemicals and green hydrogen. 2. **Chennai Petroleum Corporation**: Posted a net profit of Rs 7,190 m against a loss of Rs 6,340 m. Higher refining margins (US$ 9.04 per barrel vs. negative US$ 1.63) and cost control measures were key drivers. Future plans include retail outlets and a new refinery. 3. **PVR Inox**: Recorded a net profit of Rs 1,060 m, a significant turnaround from a loss of Rs 120 m. Despite headwinds in FY25, the company is focused on expanding revenue streams and operational efficiency post-merger. 4. **Wockhardt**: Achieved a net profit of Rs 820 m, moving from a loss of Rs 160 m. This is bolstered by its novel antibacterial agent's New Drug Application (NDA) submission to the US Food and Drug Administration (USFDA). 5. **India Cements**: Reported a net profit of Rs 88.1 m against a loss. The company, now a subsidiary of UltraTech Cement, also saw domestic sales volume growth and has approved expansion plans.
**Impact** This news is significant for the Indian stock market as it showcases companies achieving profitability after periods of loss. Such turnarounds can restore investor confidence and signal potential investment opportunities. However, it is crucial for investors to analyze whether the recovery is sustainable over multiple quarters rather than relying on a single profitable period. Rating: 7/10
**Difficult Terms** * **Net Profit**: The profit remaining after all expenses, taxes, and interest have been deducted from total revenue. * **YoY (Year-on-Year)**: A comparison of performance between two consecutive years, for the same period (e.g., Q2 2025 vs. Q2 2024). * **Gross Refining Margin (GRM)**: The profit a refinery makes by processing crude oil into refined products. It's calculated as the difference between the market value of refined products and the cost of crude oil. * **MMTPA (Million Metric Tonnes Per Annum)**: A unit of measurement for the annual processing capacity of refineries or production volumes. * **Asset-light growth**: A business model that focuses on growth without substantial investment in physical assets, leveraging technology or partnerships. * **New Drug Application (NDA)**: A formal request to regulatory bodies like the USFDA for approval to market a new drug. * **QIDP Status (Qualified Infectious Disease Product)**: A designation by the USFDA for certain antibacterial or antiviral drugs that treat serious infections, offering incentives. * **Capex (Capital Expenditure)**: Money spent by a company to acquire, upgrade, or maintain its long-term assets. * **Subsidiary**: A company controlled by a parent company.