As per Nuvama’s Q4FY25 earnings preview, India’s internet sector continues to display robust revenue traction, with Zomato leading the charge. The food delivery giant is expected to post 9.6% QoQ and 66.2% YoY revenue growth. However, margins may come under pressure, particularly due to elevated competition in Blinkit, which is set to post a 123.8% YoY revenue surge but with an adjusted EBITDA loss of INR 2.36 billion. Zomato’s core food delivery business, meanwhile, is forecast to deliver a healthy INR 4.5 billion in adjusted EBITDA.
Nykaa is projected to see strong 25% YoY revenue growth, backed by 29% and 10% YoY GMV growth in its beauty and fashion segments, respectively. EBITDA margin is expected to improve 10bps QoQ to 6.3%. Info Edge is likely to maintain momentum in its non-recruitment verticals, with total revenues expected to rise 2.9% QoQ and 13.6% YoY. IndiaMART and JustDial are expected to post modest topline growth, with margins slightly under pressure due to seasonality in the former.
In telecom, Bharti Airtel is seen reporting a 5.2% QoQ rise in consolidated revenue, though ARPU growth may be muted due to fewer working days. EBITDA margin is estimated to fall 80bps QoQ. Vodafone Idea is likely to see a 0.6% QoQ decline in revenue, with further subscriber loss expected, even as ARPU holds steady. Tata Communications is forecast to post 2.6% QoQ growth, with 60bps margin expansion.
Among staffing players, TeamLease is expected to report 0.4% QoQ and 20.6% YoY growth, with General Staffing driving gains. SIS revenue is likely to rise 9.9% YoY. Route Mobile is estimated to grow 1.5% QoQ, but with margins falling 120bps to 10.1% amid elevated costs.
The mixed performance across segments suggests investors will closely track profitability trends and commentary around competitive intensity in internet and telecom.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
