October 26, 2026

LATEST NEWS

>>16:06

First Cut: Sumitomo Chemicals – Slight Miss with discipline execution offsetting higher costs

• Sumitomo reported an inline sales no with revenues down 2.4% YoY as Indian agrochemical sector continues to be  impacted by an adverse operating environment.
• Despite higher input prices which put pressure on GPM down 240bps YoY, disciplined execution, possibly timely pricing actions and a favourable product mix cushioned EBITDA % margin impact with EBITDA % coming 65 bps below expansion.
• Higher Other Income supported PAT
• PAT came in at Rs 157 crore and was 3% below estimates.
• We are entering RABI season and increased risk of El-Nino looms over agrochemicals recovery. Though, the Company continued to strengthen its commercial execution during the quarter through annual sales alignment, regional marketing execution meetings, focused channel engagement and division-wise product prioritization
• We have a Con call on 27 October 2:30 PM, post which we will come out with a detailed report.

>> 09:17 AM

Jindal Steel: In Q2FY27, Jindal Steel reported strong performance. With steel sales volume of 2.4 MT (up 17% YoY), the quarter's consolidated topline was ₹16,679 crore (up 43% YoY). The quarter's reported EBITDA was ₹2,572 crore, with margins at 15.4% (down 176 bps QoQ). EBITDA/tonne decreased by about ₹1,100/tonne QoQ to ₹10,808 in Q2FY27 from ₹11,930 in Q1FY27. Thanks to record Q2 sales volume and continued cost optimization efforts, PAT for the quarter was ₹771 crore (up 21% YoY).

GrafTech International Ltd. published Q3CY26 financial results, with net sales of $140 million (up 10% quarter on quarter, down 3% year on year) and a net loss of $46.8 million. Adjusted EBITDA for the quarter was $8.6 million (compared to $2 million in Q2CY26). Graphite electrode sales volume was 29k tons, with a derived blended realization of $4,867 per MT (up 18% QoQ, down 3% YoY), notwithstanding the company's remark of practically stable ASPs on a QoQ basis.

TOP NEWS

War update: Saudi Arabia has intercepted a ballistic missile launched by the Houthis towards Riyadh as the rebels continue their siege of the Yemeni city of Taiz. President Trump has ruled out military actions against Iran. Oil prices have fallen this morning after surging to near-six-month highs last week. Oil prices currently trading at $115/barrel. Asian markets trade in the range of flattish to negative gift nifty indicates a flattish start for the day.

Netweb Technologies: Blockbuster Q2FY27 with big QoQ and YoY uptick across all parameters with a very strong order book. Revenue grew 335% to Rs 1323 crore vs Rs 303 crore in Q2Fy26.  Operating profit also grew by 334% to Rs 197 crore.  PAT was also up by 334% to Rs 136 crore vs Rs 31 crore in Q2FY26. Order book stands strong at Rs 2,507 crore.  H1 profits have already eclipsed full year 2026.

Apollo Micro Systems: Q2 FY27 revenue Rs 388.15 Cr (+72.3% YoY), EBITDA Rs 111.18 Cr (+87.8%) and PAT Rs 46.15 Cr (+53.7%). Order book stands at Rs 1,765 crore. EBIDTA margins improved to 28.64% vs 26.28% in Q2FY26.

Infosys (-ve): Revenue stood at $5,145 million, up 1.2% q-o-q (up 1.4% y-o-y), in line with our estimates. Inorganic contribution accounted for 0.4% q-o-q growth. In CC, revenue grew 1.2% q-o-q (1.5% y-o-y). FY27 revenue growth guidance has been cut to 1-2% from 1.5-3.0%, primarily due to higher-than-expected pricing pressure, softer-than-expected volumes, and slower discretionary spending particularly in the retail and high-tech verticals. Assuming acquisition contribution remains at ~170bps, the revised guidance implies an organic growth midpoint of around -0.2% versus 0.5-0.6% earlier. H2 margins are expected to be impacted by wage hikes, seasonal softness, AI-related productivity sharing and large-deal ramp-ups, partly offset by benefits from Project Maximus.

Shakti Pumps: Q2 profit fell 58% to Rs 38.5cr even as revenue rose 12% to Rs 746cr. EBITDA margin dropped to 8.6% from 20.4% on lower realisations and costlier raw materials and logistics, well below the 15% FY27 margin it targeted in May

Tru Alt Bio Energy: Rev at Rs 811cr vs Rs 114cr.  EBITDA at 101cr vs -5cr with OPM at 12.4% PBT at 47cr vs -49cr, Q1 at 78cr PAT at 35cr vs -38cr, Q1 at 59cr OCF at 192cr vs 99cr

KEC international: Company won Rs 2,872cr of 765 kV transmission line orders from Power Grid, the largest single order in its India T&D history. The lines will evacuate 8.5 GW of renewable power from Gujarat and take FY27 order intake past Rs 13,500cr.

Dr Reddy’s Laboratories’ consolidated net profit declined 36 per cent at ₹925 crore in the September quarter, compared to ₹1,437 crore in the corresponding quarter of the previous financial year. The total revenue of the Hyderabad-based company declined 1.5 percent at ₹8,671 against ₹8,805 crore in the year-ago period. Overall, results were better than market estimates.

IndusInd Bank Q2 (Standalone YoY) : Profit stands at Rs 1,176.1 crore Vs loss of Rs 444.8 crore . Net interest income grows 3.6% to Rs 4,569.5 crore Vs Rs 4,409.4 crore. Operating profit jumps 37% to Rs 2,778 crore Vs Rs 2,028 crore. Provisions & contingencies fall 53.6% to Rs 1,216.2 crore Vs Rs 2,622.4 crore. Gross NPA declines to 2.73% Vs 3.25% (QoQ). Net NPA slips to 0.83% Vs 0.95% q-o-q.  The company beat PAT estimates also reported strong results. Strong quarter.

IDFC First Bank : The bank reported a net profit of ₹1,044.6 crore for Q2FY27, compared with ₹352.3 crore in the year-ago period. Net interest income (NII) rose 21% year-on-year to ₹6,184.5 crore from ₹5,112.6 crore, while operating profit increased 35% to ₹2,538 crore from ₹1,880 crore. Asset quality improved sequentially, with gross non-performing assets declining to 1.32% from 1.51% in the previous quarter, while net non-performing assets (NNPA) fell to 0.40% from 0.44%. Strong Quarter

VRL Logistics shares in focus on share buyback; board meets on Nov 2: VRL Logistics will buy back up to 87.5 lakh fully paid-up equity shares, representing 5% of its total paid-up equity capital, at Rs 320 per share. The buyback will have a maximum aggregate outlay of Rs 280 crore and will be conducted through the tender offer route. CMP Rs. 260. Positive

INVESTMENT CALLS

First Cut: Lumax Auto Technologies Ltd: Strong all round performance

Reco: BUY       CMP: Rs 1807       Target: Rs 2284

• Consolidated revenue grew by 35% y-o-y and 14% q-o-q to Rs 1556 crores (vs our estimate of Rs1432cr) primarily led by an increase in volumes of OEMs across categories, scaling up of existing products and increasing wallet share of existing customer base. Gross margins were reported at 34.4% lower by 214bps y-o-y and 163bps q-o-q led by a sharp increase in raw material costs by 43% y-o-y.
• EBITDA grew by 36% y-o-y and 10% q-o-q to Rs 209 crore led by a strong topline, effective inventory management, operational efficiency and favorable mix. EBITDA margins were relatively stable at 13.5%, marginally higher by 11bps y-o-y but lower by 48bps q-o-q amid rising input costs and associated recoveries from OEMs.
• PAT saw a significant growth of 50% y-o-y and 18% q-o-q to Rs117cr (vs our estimate of Rs93crore) while PAT margins grew by 79bps y-o-y and 27bps q-o-q to 7.5% for the quarter. This strong profitability was driven by technologically led operational excellence and improving asset turns and utilizations.
• New product launches across CV and PV along with increasing contribution from advanced plastics and 2-wheelers have significantly bolstered the quarterly performance for the company.
• The company will invest ~₹150 crore to set up a mechatronics manufacturing facility in Manesar, Haryana, focused on electronic components such as body control modules for OEMs. The project, funded through debt and internal accruals, will be commissioned in two phases starting Q3 FY28 and is expected to generate ~₹500 crore annual revenue at peak capacity.
• Our view: Lumax continues to grow outpacing the broader market led by premiumisation, increasing wallet share from existing clients, cost optimisation, new product launches and all round customer focused growth. We continue to maintain a Buy rating on the stock with a price target of Rs2284.

Results Highlights (consolidated)                                                             (Rs. Cr.)

Margin Profile:

First cut: JSW Steel Q2FY2027 results: Volume led Q2, deleveraging continues  

·         Consolidated revenue from operations stood at Rs. 54,486 crore, ~31% y-o-y (excluding BPSL; ~21% on a reported basis) and ~15% q-o-q. Annual growth was led by higher realisations and volumes, while quarterly growth was volume-led, offset partially by lower realisations. The company sold a record high 7.46 MT of steel (up 13% y-o-y and 19% q-o-q) and produced a record high 7.27 MT of crude steel.

·         Adjusted EBITDA rose over 39% y-o-y and 6% q-o-q to Rs. 9,941 Crore, with a margin of 18.3%. Reported EBITDA was Rs 10,120 crore. Adjusted EBITDA per ton sequentially fell 11% to Rs. 13,329. Higher volumes contributed Rs 1,893 crore q-o-q; higher expenses (mainly coking coal) removed Rs 965 crore, and lower realisations impacted Rs 387 crore.

·         PAT was Rs. 5,359 Crore, up ~222% year on year and ~14% quarter on quarter. PAT attributable to owners was Rs 5,279 crore; diluted EPS was Rs 21.59. Finance costs dropped by 29% year-on-year to Rs. 1,602 Crore, aided by lower debt and interest rates.

·         View: JSW Steel had a volume-led quarter with record production and sales and continued deleveraging. Profitability was affected by higher coking coal costs and lower realisations. FY27 volume guidance remains at 29.75 MT production and 28.6 MT sales. The company expects to sell 14.9 MT of H2, compared to 13.71 MT in H1. We will revise our estimates and issue a full note. We have a Buy recommendation on the stock.

Results (consolidated)                                                                                                   Rs crore

Actual vs. estimates                                                   Rs. crore

Bank of India: Q2FY27 first cut- Strong beat on profits, growth/asset quality keep improving

• PAT grew 25.4% y-o-y to Rs. 3,202 crore, ~10% above our estimate, helped by an 18.5% y-o-y growth in NII and a 33.2% growth in operating profit.
• Asset quality improved further as GNPA ratio fell to 1.60% (down 94 bps y-o-y, 21 bps q-o-q) and NNPA eased to 0.42% from 0.51% q-o-q.
• Global gross advances rose 20.6% y-o-y to Rs. 8.55 lakh crore, with RAM up 18.7% (58.6% of domestic advances), global deposits grew 21.6% y-o-y to Rs. 10.38 lakh crore.
• RoA held at 1.01% and the bank looks on track to stay above 1% in FY27.
• We have BUY rating on the stock and will come out with detailed note shortly

AU SFB – Q2FY27 first cut - Deposit franchise shines, asset quality steady

●      NII grew 32% y-o-y to Rs. 2,820 crore, 1.4% above our estimate of Rs. 2,781 crore, led by a 28% loan growth and a 33 bps y-o-y rise in NIM to 5.8%, NIM slipped 9 bps q-o-q on higher liquidity and seasonality.

●      Operating profit rose 25% y-o-y and came ~2% above our estimate, while lower provisions drove PAT up 53% y-o-y to Rs. 858 crore, in line with our estimates.

●      Deposits grew a strong 29% y-o-y (8% q-o-q) and CASA ratio rose 70 bps q-o-q to 29.5%, GNPA/NNPA stood at 1.99%/0.81% and credit cost eased to 0.8% from 1.2% y-o-y.

• RoA held at 1.7% and RoE improved to 16.1%. We have BUY rating on the stock and will come out with detailed note shortly

Kotak Mahindra Bank – Q2FY27 first cut - Core numbers steady; FCNR(B) inflows dent NIM

●      NII rose 15.7% y-o-y to Rs. 8,459 crore, 2.9% ahead of estimates, though NIM fell 22 bps q-o-q to 4.31% largely as FCNR(B) deposits surged

●      Fee income was strong, up 21% y-o-y, while core opex was flat q-o-q, taking cost-to-income down to 45.2%.

●      PAT grew 29.5% y-o-y to Rs. 4,212 crore, 2% below estimates on higher standard asset provisions.

●      Asset quality improved; GNPA fell 14 bps q-o-q to 1.04% and NNPA declined 3 bps to 0.24%.

●      Healthy core trends and improving asset quality keep us positive

●      We have BUY rating on the stock and will come out with detailed note shortly

Stock Update: KEI Industries Q2FY27 Results – Shortfall in margins

Rating: Hold     Reco Price: Rs 3,715       Price Target: Rs 5,000

·         Revenue rose 39% y-o-y, beating our estimates majorly driven by higher realizations due to price hikes and very minimal volume growth.

·         OPM remains flattish with marginal increase of 9 bps to 10% below our estimates of 11%. Despite a lower margin in Q2FY27 H1FY27 margins remained in the guided range of 11%

·         Management guided for an overall revenue growth of 25% and downgraded the margins to 11% for FY27. Management expects the full year FY27 volumes to be 10%. On Sanand facility management highlighted an overall capex incurred of Rs 1800 crore out of total Rs 2000 crore.

·         We cut down our estimates for FY28 and FY29 as an baking in operating margins at 11% by FY29 based on conservative guidance by management. After a major fall in stock prices leading to supporting valuations we remain positive on the stock with target price of Rs 5,000. Stock trades at 31x/24x to FY27/FY28 EPS estimates.

Valuation                                                                                                          Rs Crore

Other News

JK Cement: Q2FY27 revenue rose 23.7% YoY to Rs. 3,733 crore, while PAT increased 6.3% to Rs. 169 crore. Grey cement volumes grew 21% to 5.37 MT, while white cement volumes increased 13% to 0.49 MT, despite cost pressures. Separately, its paints subsidiary, JK Maxx Paints, approved a Rs. 130 crore investment in a new 75,000 KL water-based paint plant in Telangana, expected to be commissioned within 12 months of construction commencement.

Kajaria Ceramics: Revenue grew 24% YoY to ₹1,468 crore. EBITDA increased 34% YoY to ₹286 crore, with EBITDA margin expanding to 19.5% from 18.0% in Q2FY26. PAT rose 42% YoY to ₹189 crore. Overall, the company delivered a strong performance driven by healthy growth and margin expansion. Positive.

DCB Bank Q2 (YoY): Profit jumps 28.3% to Rs 236 crore . Net interest income grows 17.3% to Rs 699 crore. Operating profit saw a strong growth at 26% to Rs 383 crore Vs Rs 304 crore. Gross NPA falls to 2.29% Vs 2.43% (QoQ). Net NPA drops to 0.73% Vs 0.84% (QoQ).

Jana Small Finance Bank | Jana SFB reported a more than two-fold increase in Q2 net profit to ₹170 crore, compared with ₹75 crore in the year-ago quarter. Net interest income rose 34.7% year-on-year to ₹819 crore. Asset quality was mixed sequentially, with gross NPA improving to 2.34% from 2.39%, while net NPA increased to 1.17% from 0.91. Strong results, but avoid such stocks while draught situation and high market uncertainty.

SBI Funds Management Q2 (Consolidated YoY): SBI Funds Management reported a 20.3% quarter-on-quarter decline in net profit to ₹701.2 crore in the second quarter of FY27, compared with ₹880.3 crore in the previous quarter as higher expenses weighed on earnings. Total expenses rose to ₹301.17 crore from ₹242.21 crore, 25% up. Average assets under management in mutual funds stood at ₹13.1 lakh crore for the quarter ended September 30, 2026, up 10% year-on-year. Its market share was 15%. The performance during the quarter was supported by healthy equity and passive investment flows, sustained systematic investment plan (SIP) momentum, rising retail participation and continued investments in people and technology. QAAUM in actively managed equity funds rose 9% year-on-year to about ₹9 lakh crore, giving the company a market share of 12.4%. Passive QAAUM increased 11% to ₹4.2 lakh crore, with a market share of 27.4%. Assets under management in SIPs stood at ₹2.07 lakh crore, up 15% year-on-year, with a market share of 12.3%. Overall – below expectation results.

UTI Asset Management Company | The asset management firm reported a 23.1% quarter-on-quarter decline in Q2 revenue to ₹337 crore, while net profit fell 34.4% to ₹143 crore. EBITDA declined 35% to ₹195 crore, and the EBITDA margin narrowed to 57.9% from 68.6% in the previous quarter. Negative for the stock.