May 20, 2026

TOP NEWS

War update: US President Donald Trump has warned that Iran has “two or three days” to secure an agreement aimed at ending the conflict or risk facing fresh military strikes.  The warning came as an Iranian official responded to US markets, stating that any threat of a large-scale US attack would be answered “resolutely” and insisting that Iran is “prepared to confront any military aggression”. Oil prices slighty up for $111/ barrel. Amid all the ongoing conflicts 10-year Treasury yield rose to 4.67 per cent from 4.61 per cent in the U.S. bond market. The yield on the 30-year US Treasury bond touched its highest level since 2007 on Tuesday, a sign of rising worries over inflation amid the Middle East war. The rising bond yields have also increased fear of inflation in the markets and therefore Asian markets have opened up negative in the range of 1-1.5%.

Karnataka Bank: Net profit surged to Rs 408.19 crore, supported by an improved Net Interest Margin (NIM) of 3.07% and controlled opex. Asset Quality strengthened, with Gross Non-Performing Assets (GNPA) at 2.78% vs 3.32% QoQ and Net Non-Performing Assets (NNPA) at 0.98% vs 1.31% QoQ. Advances rose by 6.9% YoY to Rs 83,336.92 crore, driven in part by a strong 41.3% surge in gold loans. Total deposits increased by 3.8% YoY. Positive

Aditya Birla Capital: The company has received a Certificate of Registration from the Reserve Bank of India (RBI) to commence the business of factoring. This will now allow the company to deeply penetrate the MSME market, which heavily relies on invoice clearing. Positive

Prince Pipes and Fittings: The company reported a strong Q4FY26 performance driven by robust volume growth and margin expansion. Revenue increased 18% YoY to ₹850 crore, while EBITDA more than doubled, rising 101% YoY to ₹110 crore. EBITDA margins improved sharply to 12.9% from 7.6% last year. Net profit also surged 132% YoY to ₹56 crore. Operationally, sales volume grew 23% YoY to 62,167 MT during the quarter.

Dredging corporation: Net profit came in at Rs 87 crore vs Rs 25 crore in Q4FY25. Revenue grew by 72% to Rs 478 crore. Operating margin expanded to 30% from 12% in Q4FY25. Strong set of results.

Zydus Lifesciences: The company reported 9% growth in consolidated net profit at Rs.1,273 crore for the fourth quarter of the financial year 2025-26 (Q4 FY26) as compared to Rs.1,171 crore in the same period last year. The pharma major’s revenue from operations jumped 16% year-on-year (YoY) to rs.7,587 crore in the January-March period from Rs.6,528 crore in the year-ago period. For FY26, Zydus Lifesciences reported revenue from operations of Rs.27,148.4 crore, marking a 17% increase over the previous year. The company’s R&D investments stood at Rs.2,273.2 crore, accounting for 8.4% of revenues. Along with the earnings, Zydus Lifesciences’ board of directors has recommended a final dividend of Rs.1 per equity share of Rs.1 each (100%) for the financial year, subject to shareholders’ approval at the Annual General Meeting scheduled to be held on August 11, 2026. The board has also approved a buyback of up to 95.65 lakh fully paid-up equity shares of face value Rs.1 each, representing up to 0.95% of the total paid-up equity share capital. The buyback will be undertaken at a price of Rs.1,150 per share, payable in cash.

Mankind Pharma : The pharmaceutical major reported a net profit of Rs.554 crore in Q4FY26, up 31.7 per cent from Rs.421 crore in the year-ago period. Revenue increased 11.8 per cent to Rs.3,443 crore from Rs.3,079 crore. The growth was driven by strong demand for chronic therapies such as cardiac and anti-diabetes treatments and consumer healthcare products.

Godawari Power (Q4, Cons YoY): Revenue up 9.7% at Rs 1,610 crore versus Rs 1,468 crore. EBITDA up 37.9% at Rs 439 crore versus Rs 318 crore. EBITDA margin at 27.3% versus 21.7%. Net profit up 26.6% at Rs 280 crore versus Rs 221 crore.

PNC Infratech Q4 (Consolidated YoY): Profit zooms 42.9% to Rs 107.8 crore Vs Rs 75.5 crore. Revenue slips 5.1% to Rs 1,617 crore Vs Rs 1,704.1 crore. Tax expenses decline to Rs 47 crore Vs Rs 75.6 crore.

PREVIEW

MACRO WRAP

• Global Bonds: Global bond yields continued to trend higher amid unabating investors’ concerns on inflation risks and a higher-for-longer policy rate environment. UST yields closed 6-9 bps up across the curve, the 30-year Treasury yield rose to 5.20%, the highest level since July 2007, marking its third consecutive day of gains and largest three-day yield gain since Wednesday, May 21, 2025. Negative for broader equity markets
• President Trump threatened Iran with a "big hit", potentially within two to three days, if no deal is reached, while simultaneously signalling that a deal is desirable. VP Vance offered a more constructive tone, saying the US has made "a lot of progress" and that Iran wants an agreement. Iran's state media dismissed the US proposal outright, with a senior official reiterating that concessions surrounding nuclear enrichment are not on the table.
• NATO allies are in discussions about deploying assets to assist commercial shipping through the Strait of Hormuz if it remains closed by early July. This could provide some relief for the energy markets. However, it is still unclear how NATO countries could ensure safe passage for commercial vessels through the strait.
• The DJIA, the S&P500, and the Nasdaq Composite Index fell 0.7%, 0.7%, and 0.8% respectively. The Eurostoxx 50 was little changed. The Dollar Index edged up 0.1% to 99.33. EUR-USD fell 50 pips o 1.1600. The US 2Y yield rose over 7bp to 4.12% and the 10Y yield rose 8bp to 4.67%. the US 30Y yield rose 6bp to 5.18%, the highest since 2007. Brent crude oil prices fell 0.7% to USD111.28. Gold fell 1.8% to USD4,483.
• Data watch: we get the FOMC minutes for the 28-29 April meeting.

INVESTMENT CALL

First Cut: PI Industries Q4FY26: Weakness continues, all round miss

• Revenues declined 12% Y-o-Y coming 15%/7% our and street estimates, respectively. CSM exports declined 19% Y-o-Y with volumes decline 14% and pricing pressure. Domestic volumes to declined and was impacted by lower volumes (down 1% Y-o-Y)
• Despite higher GPM, higher employee and other costs led to lower EBITDA and EBITDA margin again below our and street estimates.
• Pharma sales were up 23% Y-o-Y, however segment continued to face operating loses, though losses have been narrowing down.
• Adverse weather conditions, lower crop prices, regulatory disruptions in Biologicals and elevated channel inventories continue to weight on the CSM business and are key monitorable for FY27.
• We currently have a HOLD rating on the name, will update the numbers post the call that will take place tomorrow at 3:00 PM.

Stock update: Restaurant Brands Asia Q4FY26 (Consolidated) result update – India biz shines

Reco: Buy                  Reco. Price: Rs. 68                 Price Target: Rs. 85

• Consolidated revenues grew 12% y-o-y, EBITDA margin rose 187 bps y-o-y to 13.4%, with loss shrinking to Rs. 47 crore versus Rs. 60 crore in Q4FY25.
• India business reported strong operating performance in Q4. RBA targets to achieve positive FCF in the next 4-6 quarters and internally fund its annual target of 60 to 80 restaurant additions.
• Popeyes in Indonesia remains a concern offsetting the gains from Burger King. RBA is onboarding new promoters to align strategy and is considering Popeyes’ transfer to another portfolio.
• Stock trades at 9x/8x its FY27E/FY28E EV/EBIDTA, respectively. We maintain a Buy with a revised PT of Rs. 85.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

First cut: Bharat Electronics Ltd Q4FY2026 results – In line performance

·         Revenues for Q4FY26 grew by 12% yoy to Rs 10,224 crore broadly meeting our estimates.

·         The operating margins were down by 162 bps to 29.2% also operating profits were marginally by 6%. PAT also managed to grow by 5% 

·         View: BEL posted inline set of numbers . We shall review our earnings estimates and come out with a detailed note post the conference call. Currently we have a Buy rating on the stock.

Results (consolidated)                                                                                     Rs crore

Actual vs. estimates                                                Rs. Crore

OTHER NEWS

Tata Steel UK has secured a US tariff exemption allowing steel manufactured at its Port Talbot plant in Wales to be exported to the United States at a 25% duty, regardless of the origin of the raw material. The exemption has been granted despite the UK facility currently being dependent on imported material, since its blast furnaces are set to close in 2024 as part of the transition to electric arc furnace (EAF)-based steelmaking.

Hindalco's fully owned subsidiary in the United States, Novelis, reported consistent performance in the fourth quarter of fiscal year 26. The quarter's total operating income was around $4.8 billion, up 4% YoY and 14% QoQ. Flat rolled product exports totalled 844 kt, down 12% YoY but up 4% QoQ.

Sambhv Steel Tubes: Companies have received approval from the Chhattisgarh Environment Conservation Board (CECB) to build 1.2 MT per year cold rolling mills.

United Breweries Limited (UBL): The company has announced the launch of Heineken® Silver in Haryana. Crafted from only Barley, hops and water, Heineken® Silver, offers a crisp, refreshing taste and is exceptionally smooth. It is crafted for consumers seeking easy enjoyment without compromising on flavour. The introduction of this variant across bars and retail outlets marks a significant milestone in Heineken’s expansion in India. Positive

Bharti Airtel: The telecom operator has launched a new 5G service called 'Priority Postpaid', with plans ranging in price from Rs 449 to Rs 1,749.

Bharat Petroleum Corporation Q4 (Standalone YoY): Profit falls 0.7% to Rs 3,191.5 crore Vs Rs 3,214 crore. Revenue grows 6.7% to Rs 1,18,649.4 crore Vs Rs 1,11,179 crore. Exceptional loss stands at Rs 4,349.1 crore Vs loss of Rs 1,773.9.

Orkla India Q4 (Consolidated YoY): Profit zooms 108.4% to Rs 73.4 crore Vs Rs 35.2 crore. Revenue rises 5% to Rs 625.8 crore Vs Rs 596.2 crore. Exceptional loss stands at Rs 0.8 crore Vs loss of Rs 33.6 crore