October 13, 2026

LATEST NEWS

>> 02:38 PM

First Cut: ICICI Prudential Life: Q2FY27 result - Protection & annuity drive healthy VNB growth; Margin moderates sequentially

• Value of New Business (VNB) grew 20.3% YoY to Rs. 712 crores (~3% ahead of our estimate). VNB margin expanded 100 bps YoY to 25.4% but moderated 130 bps QoQ from 26.7% (vs our estimate of 26.1%).
• APE grew 15.6% YoY to Rs. 2,799 crores (~5% ahead of our estimate), led by Annuity (+65.5% YoY), Group funds (+51.5% YoY) and Protection (+33.7% YoY). However, Retail APE growth was moderate at 10.7% YoY, with Agency and Bancassurance growing only ~4% YoY each and Non-linked savings APE declining 0.6% YoY.
• Profit After Tax (PAT) grew 25.1% YoY to Rs. 374 crores (down 3.1% QoQ), driven by higher shareholders' investment income and lower transfer of funds to the policyholders' account.
• New Business Premium grew 27.8% YoY to Rs. 6,958 crores, while the number of policies grew 10.6% YoY in H1FY27.
• Retail Protection APE grew 36.5% YoY to Rs. 232 crores, sustaining strong momentum post GST reforms (H1FY27: +47.2% YoY); retail sum assured rose 34.9% YoY in H1FY27.
• We currently have BUY rating on the stock and will come out with detailed note shortly.

TOP NEWS

War update:  The Saudi Civil Aviation Authority said an attack on King Khalid International airport in Riyadh has killed at least 12 people and injured 309 others. Trump said the US may join Saudi Arabia in attacking the Houthis following the latest Riyadh attack, adding that he is considering resuming strikes on Iran. A tanker reported being hit by an unknown projectile in the Strait of Hormuz, causing a fire on board. Oil is hovering around $ 105/ barrel. Asian markets trading in red and gift nifty indicates a positive start with 54 points gain on the bourses.

RBL Bank: The Bank reported a strong Q2FY27, with net profit up 170% YoY to Rs482 crore. NII grew 37% YoY to Rs2,131 crore as NIM expanded 48bps QoQ to 4.61%. With opex up only 3% YoY, cost-to-income improved to 56.5% (70.7% a year ago), lifting operating profit 92% YoY to Rs1,396 crore, though provisions rose 53% to Rs771 crore. Advances grew 42% YoY to Rs1.42 lakh crore, led by wholesale (+56%) and secured retail (+52%), while deposits rose 34%, aided by FCNR mobilisation. GNPA/NNPA improved to 1.02%/0.29%. RoA rose to 0.92%, while RoE stays low at 4.4% given the large capital buffer (CAR 30.1%).

ICICI Prudential AMC: Revenue from operations rose 16.3% YoY to Rs1,674 crore in Q2FY27, driven by 14.4% YoY growth in total MF QAAUM to Rs11.6 lakh crore. Equity QAAUM grew 16.3% YoY to Rs6.6 lakh crore, with the company retaining leadership in equity (13.7% market share) and equity hybrid (26.4%) schemes. Operating profit grew 15.7% YoY to Rs1,181 crore despite a 30% rise in fees and commission. PAT growth, however, was muted at 6.1% YoY (down 7.8% QoQ) to Rs889 crore, as other income fell to Rs17 crore from Rs72 crore a year ago. H1FY27 revenue yield stood at 53bps. The board declared an interim dividend of Rs30 per share.

Azad Engineering: Secures a two-year long-term rate contract worth ~INR 527mn from BHEL for supply of critical stationary & rotating airfoils (stator vanes and rotor blades) for heavy-duty gas turbines, with execution scheduled through October 2028. See development as supportive of thesis around Azad’s increasing participation in the domestic gas turbine supply chain, particularly given : 1) growing opportunities for indigenization of critical turbine components 2) expansion of its customer base beyond global OEMs into domestic power equipment manufacturers 3) continued order wins supporting the ramp-up of its energy business.

Aequs: Company entered in to an long-term supply agreements with Safran Aerosystems and Safran Landing Systems for superalloy machining, coatings and landing gear assembly on A320/A330/A350 and B787. Value not disclosed.

Good luck India: Subsidiary GDAL named sole technically qualified bidder for 155 mm artillery shells from Munitions India; value not disclosed. Capacity being expanded from 1.5 L to 4 L shells a year. The earlier merger approval was filed at 12:57 and is already priced in.

Kalpataru Projects: Announced new order wins aggregating Rs 2,225 Crores. Rs 2,031 crore orders in T&D business and Rs 194 crore order received by Linjemonte. KPIL has secured orders worth approximately Rs 20,000 Cr so far in the current fiscal year. - This represents over 30% YoY growth, reinforcing confidence in achieving targeted growth numbers.

Macro Wrap

• IndiaInc CPI reviews: September CPI inflation rose to 5.5% yoy (est- 5.6%) vs 4.8% in August, the highest reading since December 2024, Core CPI, which excludes food and fuel prices, climbed to 4.6% yoy vs 4.2% in August, above the RBI’s 4% target midpoint, with year-on-year price gains recorded across all baskets except personal care. The food and beverage inflation surged to 7.4% yoy vs 5.4% in August, partly reflecting softer base effects as food prices fell 1.4% in September last year.
• Energy inflation remained elevated at 5.3% yoy vs 5.2% in August, reflecting higher crack spreads and global crude oil prices. However, the rise in core inflation appears to have been largely driven by higher precious metal prices, with core inflation excluding precious metals softer at 3.2%.
• The India Meteorological Department (IMD) reported that rainfall was 12.6% below normal, the lowest since 2015, for the four-month period between June to September 2026. However, food price pressures could moderate in the medium term as sowing activity has reportedly recovered to last year’s levels, which could support crop supply.
• The dominant story overnight was the escalating Houthi campaign against Saudi Arabia. A barrage of drone and missile attacks on Riyadh's main airport over the weekend killed at least 16 people including a US citizen and wounded roughly 300. A growing number of supertankers have reportedly been diverting away from the Persian Gulf as Iranian attacks threaten a critical oil transfer hub.
• IMF  projects U.S. GDP growth of 2.3% in 2026 — unchanged from its July forecast and matching the 2025 pace — and 2.3% in 2027, up from 2.2% in July. US inflation  forecast for 2026 at 3.6% and raises the 2027 forecast to 2.8% from 2.4%.
• IMF projects global growth of 3.4% in 2027, unchanged from July, and raised its forecast for this year to 3.1%. projects global inf rising to 4.7% in 2026, then easing to 4.1% in 2027, roughly returning to 2025 levels. IMF says AI-driven investment should accelerate global growth next year but warns the world economy’s resilience is nearing its limit amid energy strains and mounting financial risks.
• IMF projects India's GDP growth at 7.0% in 2026 and 7.0% in 2027, compared with July WEO forecasts of 6.4% and 6.7%.
• IMF World Economic Outlook projects average oil price of $96 per barrel in 2026 and $87 per barrel in 2027, versus July forecasts of $89 and $78, respectively as it assumes the Strait of Hormuz will reopen in March 2027, and shipping will be largely restored to pre-war levels by October 2027.
• The DJIA rose 0.4%, while the S&P500 and the Nasdaq Composite Index fell 0.1% and 0.4% respectively. The Euro Stoxx 50 rose 0.5%. The Dollar Index firmed 0.4% to 102.59. EUR-USD fell 40 pips to around 1.1160. Brent crude oil prices rose 1.8% to USD 106.65 as fresh Houthi attacks on Saudi infrastructure and continued tanker diversions from the Persian Gulf stoked supply fears. Gold fell 0.5% to USD4,172.

EARNINGS PREVIEW

OTHER NEWS

Swan Defence: Revenue grew 73% yoy at Rs 69 crore. EBITDA loss widens to Rs 17 crore vs Rs 8 crore in Q2FY26. Net profit was higher at Rs 566 crore due to tax write back of Rs 563 crore. Domestic shipbuilding demand expected to improve over 12–18 months; legacy NOPV monetization targeted for FY27/FY28.

IRCON International: The company has Received an Rs. 862.46 crore EPC order from East Central Railway for track laying and material supply for the 3rd and 4th lines under the Son Nagar–Andal project, to be completed within 365 days.

Vikran Engineering: Its wholly owned subsidiary secured a Rs. 2,941 crore term loan from IREDA to part-finance a 969 MW AC (1,163 MWp) solar project across 152 locations in Maharashtra, with a total project cost of Rs. 4,202 crore. The financing finalises funding arrangements for Vikran’s Rs. 3,518 crore EPC contract, marking a key step towards project execution.

Polycab India: Polycab India said NCLT Ahmedabad admitted an insolvency petition against it over a disputed operational debt of Rs 2.79cr. Polycab will appeal to the NCLAT, calling it a commercial dispute, and expects no material impact. It cites net cash above Rs 4,000cr. Going on with this news  stock has been banned from F&O for today.

Plastiblends India Q2 (YoY): Profit jumps 43.3% to Rs 10.65 crore Vs Rs 7.4 crore. Revenue soars 18.8% to Rs 228.8 crore Vs Rs 192.6 crore