YoY vs QoQ: how to read a startup's quarterly results

Year on year, written YoY, sets a quarter's number against the same quarter of the previous year. The September quarter of this year is compared with the September quarter of last year. Quarter on quarter, written QoQ, sets it against the quarter immediately before, so September against June.

Both are percentage changes. If revenue was ₹100 crore and is now ₹114 crore, the change is 14%. The only difference is which earlier period sits in the denominator. A StopDown story on FirstCry's September quarter is a live case: its operating revenue grew 14% year on year to ₹2,396 crore, and its loss was ₹51 crore a year earlier and ₹44 crore in the June quarter, so the story carries both comparisons.

Most Indian consumer businesses are seasonal. Sales jump around Diwali, weddings and big sale events, and dip in other months. A quarter that holds a festival will almost always beat the quarter before it, which says little about the business.

Comparing with the same quarter a year ago removes most of that effect, because both quarters hold the same festivals and the same weather. That is why headlines about listed startups usually quote YoY growth first. It is the cleaner test of whether the business actually grew.

QoQ shows momentum. If a company turned a corner three months ago, the year-on-year number still includes old, weaker months, while the quarter-on-quarter number shows the change quickly. A shrinking loss is a good example: a loss that falls from ₹44 crore to ₹12.6 crore in one quarter says more about recent cost control than a comparison with a year back.

QoQ is the better lens for a business with little seasonality, such as software subscriptions. It is the weaker lens for retail, travel, food delivery and anything tied to festivals, because the calendar does most of the work.

Indian companies follow a financial year from 1 April to 31 March. The first quarter (Q1) runs April to June, Q2 July to September, Q3 October to December and Q4 January to March. A company's FY27 means April 2026 to March 2027.

This catches readers out. The September quarter is Q2 of the financial year, not the third quarter of the calendar year. Foreign companies listed in the US often use the calendar year, so a Q3 there means July to September. Always check which calendar a story is using.

A company listed on an Indian stock exchange must publish quarterly financial results under Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. As of November 2026, results for the first three quarters are due within 45 days of the quarter ending, and results for the last quarter, together with the yearly accounts, within 60 days of the year end.

For a March year end, those dates fall around 14 August, 14 November, 14 February and 30 May. This is why mid-November is crowded with results from listed startups. Unlisted companies do not publish quarterly results. They file yearly accounts with the Registrar of Companies under the Companies Act, 2013, which is why many startup numbers appear months after the year ends.

The usual items are revenue from operations, total income, expenses, profit or loss after tax, and sometimes EBITDA. Each can be compared year on year and quarter on quarter. Total income includes other income such as interest on cash, so operating revenue is the cleaner measure of sales.

A story may also show the half year (April to September) or the nine months against the same period last year. These are cumulative figures and move more slowly than a single quarter.

• Revenue from operations: sales of the core business, before other income.
• Total income: operating revenue plus other income.
• Profit or loss after tax (PAT): what is left after all costs and tax.
• Growth: usually YoY, with QoQ as a second line.
• Margin: a profit measure as a share of revenue, covered in the operating margin guide.

First, check which comparison the headline uses. A strong QoQ jump in a festive quarter may be seasonal. A strong YoY gain is harder to explain away.

Second, watch the base. A loss that shrinks 75% sounds dramatic, but it depends on what the earlier loss was. Going from a ₹51 crore loss to a ₹12.6 crore loss is a real improvement, yet the company is still not profitable. Percentage changes on small bases can look large.

Third, look for one-off items. A gain from selling an asset or a tax credit can flatter a single quarter. Exceptional items are usually shown separately, and a good story says so.

The Indian festive season usually falls across the September and December quarters, but the dates move each year because the festival calendar follows the lunar cycle. If Diwali lands in October one year and early November the next, the same quarter can hold more or fewer festive days. A year-on-year gain can then come partly from timing.

Big sale events work the same way. A marketplace that moves its main sale from late September to early October shifts revenue from one quarter to the next. For this reason analysts often add the two quarters together, or compare the half year or nine months, before drawing a conclusion.

A newly listed company may have only a few quarters of published history, and its early filings may show restated figures. The year-ago quarter in a story can therefore come from the offer document, not from a results announcement. Treat the first few comparisons with some care, and check whether the earlier period was restated.

An annual result covers twelve months and smooths seasons completely. It is the number that appears in IPO filings and company profiles. A quarterly YoY figure is a faster signal but a noisier one. Use the quarter to spot a trend and the full year to judge its size. As with any rules or accounting topic, check with a professional before relying on a figure for a decision. Treat the two views as partners rather than rivals.