YoY vs QoQ Growth: How to Read Both Lines in Indian Quarterly Results

YoY vs QoQ growth is the first choice you face when you open an Indian quarterly results PDF. One number stacks this quarter against the same quarter a year ago. The other stacks it against the quarter just gone. Both can be right at once, and both can mislead you if you mix them up. Below we look at how to read yoy vs qoq growth quarterly results the way Indian filings actually lay them out, when each comparison earns its place, and the traps that turn up every earnings season.

If you’d rather start with the whole results-reading routine, our pillar on how to analyse quarterly results of a company covers it. Here we stay narrow and focus on the two growth lines you’ll find on nearly every results slide and press release.

YoY vs QoQ growth in quarterly results, in plain English

Year-on-year (YoY) growth compares a number for this quarter with the same quarter in the previous year. For an Indian company on an April–March financial year, Q2 FY27 (July–September 2026) is set against Q2 FY26 (July–September 2025). The point is that seasonality cancels out. Festive demand, the monsoon slowdown in construction and the year-end push at banks all fall in the same window in both years.

Quarter-on-quarter (QoQ), which people also call sequential growth, compares this quarter with the one right before it. So Q2 is measured against Q1 of the same financial year. It answers a different question: is momentum picking up or fading right now?

MarketDeck’s guide to NSE announcements and results puts the difference neatly. YoY compares a period with the matching period a year earlier, and QoQ compares neighbouring quarters. Both help, but they’re answering different questions. In a seasonal business, a strong sequential number may tell you very little about whether things are better than the same season last year.

YoY tells you whether the business beat last year’s same-season scorecard. QoQ tells you whether the latest three months improved on the previous three. A healthy company can look weak on one lens and strong on the other — that is not a contradiction.

The growth formula, and why you check units first

The maths is easy. Zerodha Varsity’s equity research chapter calculates year-on-year growth as (current ÷ prior) − 1, shown as a percentage. QoQ uses the same formula, except the comparison period is the previous quarter rather than the year-ago quarter:

Growth % = (Current period value ÷ Comparison period value) − 1, or put another way, (Current − Comparison) ÷ Comparison × 100.

Don’t calculate anything until you’ve read the filing header. MarketDeck’s worked method, which uses an exchange-hosted Infosys consolidated filing approved on 23 April 2026 as a real header example, begins with the currency, the rounding unit (lakhs or crores), the reporting period, consolidated versus standalone scope, and whether the numbers are audited or reviewed. One crore is 100 lakhs, so 12,500 lakhs means ₹125 crore, not ₹12,500 crore. Get the units wrong and you’ve manufactured growth that doesn’t exist.

MarketDeck’s hypothetical example is worth keeping in your head. Say quarterly revenue goes from ₹100 crore in the year-ago quarter to ₹125 crore now. YoY growth is 25%. If the quarter just before was ₹150 crore, sequential growth is about −16.7%. The two figures don’t contradict each other. They simply answer different questions.

Where Indian listed companies publish these numbers

Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 requires listed entities to file financial results with the stock exchanges within fixed windows. A SEBI Board memorandum (April 2023) spells the rule out again: quarterly results within 45 days of the end of every quarter except the last (Regulation 33(3)(a)), and results for the last quarter plus the annual financial results within 60 days of the end of the financial year (Regulation 33(3)(d) and (e)).

The filings show up on exchange portals, NSE’s Corporate Filings → Financial Results page among them, and on the company’s investor-relations site. When you quote a growth rate, go to the exchange PDF or XBRL rather than a paraphrased headline.

When YoY is the better lens

For any business with an obvious seasonal pattern, YoY should be your default. A practical Indian guide from Gale.in (updated August 2026) doesn’t mince words: compare year-on-year first, every time, because that strips out seasonality, and use QoQ only once you know how the business moves through the year. Gale gives examples. Muthoot’s March quarter is usually its biggest, travel peaks in December, and agro sales bunch up before the monsoon.

You’ll see the same pattern in plenty of NSE sectors:

• FMCG and retail: festive and wedding seasons push volumes up in some quarters, so a soft sequential number after Diwali can be perfectly normal while YoY growth looks fine.
• Auto and auto ancillaries: festival buying, new launches and dealer inventory cause swings from one quarter to the next, and YoY smooths them out.
• Cement, construction and power: the monsoon slows outdoor work and summer peak loads shift utility demand. Comparing the same quarter keeps the weather on equal terms.
• Banks and NBFCs: fee income, credit growth and recoveries tend to bunch up around the fiscal year-end. YoY gives the cleaner trend unless you’re specifically tracking a sequential turnaround.

Varsity’s fundamental-analysis process also leans on multi-year YoY and CAGR when it screens for growth. In its Amara Raja Batteries (ARBL) worked example, the P&L chapter shows operating revenue of ₹3,436 crore in FY14 against ₹2,959 crore in FY13. The equity-research checklist then shows FY14 revenue growth of 15.9% and PAT growth of 27.8% over the previous year. That’s textbook annual YoY framing for a manufacturer.

When QoQ is the better lens

Sequential growth comes into its own when you’re looking for momentum or a turning point. A recovery often shows up in QoQ two or three quarters before YoY turns positive, and a sudden stall after a good run shows up there first too. QoQ also helps when the year-ago base is distorted by a one-off gain, a strike, a pandemic low or an unusually weak comparable quarter.

IT services and many exporters get read on both lenses in the same release: rupee YoY for progress over the year, and QoQ (plus constant-currency QoQ) for near-term demand. Banks and cyclical commodity names can look jumpy on QoQ because of treasury gains, inventory valuation and commodity price moves. So before you celebrate or panic, be clear what the percentage refers to: NII or PAT, revenue or EBITDA.

A mixed headline that shouts “profit up 40%” without saying YoY or QoQ is incomplete. Ask: up versus which period, on which line, and after stripping other income?

Worked example: Tata Elxsi Q2 FY27 (company filing)

Tata Elxsi’s Q2 FY27 results, for the quarter ended 30 September 2026 and announced on 13 October 2026, show what reading both lines together looks like. According to the company’s press release:

• Revenue from operations came in at ₹1,055.7 crore, up 3.4% QoQ and 15.0% YoY (2.3% QoQ in constant-currency terms).
• EBITDA was ₹231.4 crore, up 7.1% QoQ, with the EBITDA margin at 21.9%.

Fortune India, quoting the company’s investor presentation, fills in the profit side. Net profit was ₹170.3 crore, down 0.2% QoQ from ₹170.6 crore in the June quarter but up 10% YoY from ₹154.8 crore a year earlier. On revenue, the year-ago base was ₹918.1 crore and the sequential base was ₹1,021.1 crore.

So you can’t sum this quarter up as “flat” or “strong”. Revenue grew on both YoY and QoQ. Operating profit (EBITDA/EBIT) improved from the previous quarter. PAT barely moved QoQ yet was still higher YoY. That’s why careful readers keep both columns open, and why our companion guide on operating profit vs net profit goes so well with understanding growth rates.

Reading the revenue, EBITDA and PAT growth lines

Go down the P&L in order. Varsity’s P&L Part 1 chapter stresses that revenue from operations is the top line, that other income is usually non-operating, and that a big chunk of other income relative to operations is worth looking into. Run YoY and QoQ on each major step:

1. Revenue from operations: is the core business actually selling more? Lean on YoY for seasonal names and add QoQ for momentum.
2. EBITDA / operating profit: are margins holding up as sales grow? A flat-to-higher margin on rising revenue is usually healthier than PAT growing only because of other income or a lower tax rate.
3. PAT / EPS: what’s left for shareholders after interest, tax and one-offs? If PAT grows much faster than operating profit, look hard at other income, exceptional items and tax.

Gale’s 15-minute method ranks things the same way. Start with revenue, operating margin and net profit/EPS on a YoY basis, then run honesty checks for padding from other income, strange tax rates, confusion over seasonality and segment mix. Once you understand the quality of the growth, PE ratio explained covers the valuation side.

How it plays out in banks, IT and commodities

IT services: management presentations often open with QoQ constant-currency growth, because clients set budgets in dollars and euros. Rupee YoY still matters for the reported Indian P&L. The Tata Elxsi release above is a typical case, quoting rupee QoQ/YoY as well as constant-currency QoQ.

Banks: net interest income, fees, provisions and treasury can all move in different directions within one quarter. A YoY jump in PAT that comes from lower provisions or trading gains is a different animal from growth led by NII. Compare like with like, and use consolidated group numbers when subsidiaries carry weight (see consolidated vs standalone results).

Commodities and metals: realisations move with global prices. Strong QoQ revenue after a price spike can reverse the next quarter even with steady volumes. YoY helps, but the notes on volume and mix often tell you more than any single percentage.

Traps that come from mixing YoY and QoQ

1. Vague headlines. “Sales up 12%, profit up 40%” with no mention of YoY or QoQ, and no clarity on revenue versus PAT, is marketing, not analysis. Work out both percentages again from the filing.

2. Base effects. A weak year-ago quarter inflates YoY, and a strong previous quarter drags QoQ down. Neither is “fake”, but both need context. Recoveries after a shock (say, after an unusually weak comparable) flattered YoY numbers across many sectors for several quarters, and Gale calls out this kind of distortion.

3. One-offs and other income. Varsity treats large other income, relative to operating revenue, as a red flag. Gale’s honesty checks add tax-rate quirks and one-off losses in other income that can hammer PAT while the operating line is fine. Always ask whether the growth figure is on operating profit or on PAT.

4. Restatements. Varsity points out that P&L figures can be revised later, and that companies show current and earlier periods side by side. MarketDeck warns that if you derive a quarter by subtracting YTD figures, a restatement in one piece but not the other can throw the result off. Use the restated comparables in the latest filing.

5. Scope mismatch. Don’t put consolidated revenue YoY next to standalone PAT QoQ. Check standalone versus consolidated and keep the perimeter the same. MarketDeck’s Infosys example shows how both filings can exist for the same company and period.

6. Annualising one quarter. Multiplying a good quarter by four is arithmetic, not a forecast. MarketDeck suggests labelling any annualised number as a judgement call and testing it against seasonality and one-offs.

A checklist for every results PDF

1. Confirm the period end, units, currency, standalone or consolidated, and whether it’s limited-review or audited.
2. Note YoY and QoQ for revenue from operations, then for EBITDA/operating profit, then for PAT. That’s three pairs, not one number.
3. Think about seasonality: is a sequential dip normal for this sector in this quarter?
4. Check other income, exceptional items and the tax rate.
5. Skim the notes for restatements, segment mix and guidance language.
6. Only then decide whether the quarter changes your view.

During results weeks, the Stock Market Today hub pulls together the day’s tape and live calendars. Use it for timing, not as a stand-in for the exchange filing.

Quick FAQ

Is YoY always better than QoQ? For seasonal Indian businesses, YoY is the safer default. QoQ makes sense once you understand the seasonal pattern, or when you’re tracking a momentum turn or a distorted year-ago base.

Why do companies report both? Because investors ask both questions: how far has the business come since last year, and what’s the run-rate right now? SEBI’s disclosure framework requires timely quarterly statements. How growth gets spun in the press release is the company’s choice, so recompute it from the numbers yourself.

Where do I get the source document? Start with NSE’s financial-results filings page (linked above), the matching BSE announcement or the company’s IR PDF. Then check any media paraphrase against that primary document.

Bottom line

Getting yoy vs qoq growth quarterly results right has less to do with formulas and more to do with discipline: the same period length, the same scope, a named metric and a clear reason for picking the comparison. YoY takes out the calendar’s seasonal noise. QoQ shows you turning points. Read both, label both, and don’t let a headline make the choice for you.

Educational content only. Not investment advice. All illustrative company figures above are from named filings or articles fetched for this guide; always verify the latest exchange PDF before acting.