July 17, 2026

TOP NEWS

Tech Mahindra Ltd: TECHM revenue for Q1FY27 stood at USD 1,660 million, up 2.6% q-o-q (6.6% y-o-y) in CC. EBIT margins continue to expand by ~60bps q-o-q to 14.4, across 11 consecutive quarters of improvement. Tech Mahindra posted revenue of Rs.15,712 crores, up 4.2% q-o-q (+17.7% y-o-y). EBIT stood at 2,264 crores, up 8.6% q-o-q (+53.3% y-o-y). EBIT Margin came in at 14.4% (58bps q-o-q/335bps y-o-y) led by volume growth and savings from Project Fortius. Adj. PAT stood at Rs 1,465 crores, up 8.2% q-o-q (+28.4% y-o-y). PAT Margin came in at 9.3% (up 35bps q-o-q/ up 78bps y-o-y). Other income stood at a loss of 106 crore, due to forex losses

Ceat Q1 (Consolidated YoY): Profit sinks 96.4% to Rs 4 crore Vs Rs 112 crore. Revenue soars 22.4% to Rs 4,318 crore Vs Rs 3,529 crore. Exceptional loss widens to Rs 7 crore Vs Rs 3 crore.

WeWork India Management Limited: WeWork India reported a sharp improvement in Q1 FY27, with its net loss narrowing to Rs. 4.3 crore from Rs. 14.1 crore a year ago. Revenue increased 27.7% YoY to Rs. 684 crores, while EBITDA rose 30.4% YoY to Rs. 438 crore, with the EBITDA margin improving to 64% from 62.7%, driven by strong operating performance.

Diamond Power Infrastructure has secured a Rs. 185 crore order from Adani Energy Solutions to supply AL59 aluminium alloy conductors for the Tuticorin and Pune-III transmission projects. The order will be executed between July 2026 and February 2027, with the final value subject to aluminium prices and exchange rate movements.

Jio Financial Services reported a 155% year-on-year rise in Q1FY27 consolidated net profit to Rs. 830 crore, driven by strong growth across its lending, payments and asset management businesses. Revenue from operations surged 227% YoY to Rs. 2,004 crore, while total income increased 141% YoY to Rs. 1,496 crore. The company also reported 2.6x growth in NBFC AUM to Rs. 30,667 crore, 2.5x growth in payment value to Rs. 19,208 crore, and JioBlackRock AMC AUM of Rs. 18,412 crore, reflecting continued expansion across its financial services platform.

Sky Gold & Diamonds has informed under Regulation 30 of SEBI Listing Regulations that its Subsidiary, Starmangalsutra Private Limited, has suffered a financial loss of ~Rs 10.70 crore due to a fraud incident. The company have already informed the national cyber-crime helpline and is working with its bankers to find and freeze the beneficiary accounts. Based on the facts disclosed by the company, this is an isolated, contained incident with an immaterial financial quantum relative to Sky Gold's overall scale. We do not see this event impacting the company's topline growth, revenue trajectory, or upcoming earnings performance, and business operations remain unaffected, as management confirmed.

MACRO WRAP

·         War-update: The US–Iran conflict intensified as the US carried out a fifth consecutive day of strikes on Thursday, with an oil tanker hit near Iran’s main export terminal. The incident disrupted traffic through the Strait of Hormuz and pushed geopolitical risk premiums higher across markets. This raised the risk that a second major energy chokepoint could be disrupted at the same time. Shipping traffic through the Strait of Hormuz slumped, with the International Maritime Organization maintaining that the waterway remains too dangerous for commercial transit. India has directed shipowners and recruitment agencies to halt deployment of its seafarers on vessels transiting the strait until further notice.

·         US retail sales rose 0.2% month-on-month in June 2026, the smallest gain in five months, in line with forecasts and after a revised 1% rise in May. Excluding gasoline, sales were up 0.7%, and the core control group (excluding food services, autos, building materials, and gasoline) rose 0.5%. positive for USD.

·         US pending home sales fell 5.4% month-on-month in June 2026, the sharpest drop since December 2025 and well below the expected 0.5% decline. Contract signings fell in all regions. Year-on-year, pending sales were down 0.3%, as high mortgage rates and record prices hurt affordability, though a strong labor market remains supportive.

·         The Philadelphia Fed Manufacturing Index rose to 41.4 in July 2026 from 10.3 in June, far above the 13 expected and the highest since November 2021. New orders and shipments strengthened sharply, employment and the workweek improved, and price indexes signaled ongoing cost and selling price increases, while firms stayed optimistic about the outlook.

·         The average US 30-year fixed mortgage rate rose 6 bps to 6.55% as of July 16, 2026, the third straight weekly increase, Purchase demand has softened and pending home sales fell in June as high rates weighed on buyers, while markets still expect at least one more Fed rate hike by end-2026. Negative for US housing market.

·         US jobless claims fell by 8,000 to 208,000 in the week to July 11, the lowest in over two months and below expectations of 217,000. Continuing claims dropped by 16,000 to 1.805 million, also under forecasts, signalling a still-robust labour market.

·         UK manufacturing output rose 0.1% month-on-month in May 2026, defying expectations for a 0.2% fall. Growth in machinery, electronics, electrical equipment, and chemicals offset declines in metals and rubber/plastics. Year-on-year, output was up 2.3%, the fastest since March 2024.

·         UK GDP grew 0.1% month-on-month in May 2026, in line with forecasts and reversing April’s 0.1% drop. Services rose 0.3%, offsetting declines in production and construction. Over the three months to May, GDP increased 0.7%, and was 1.3% higher year-on-year, the strongest annual growth since July 2025.

·         The DJIA, the S&P500, and Nasdaq Composite dipped 0.2%, 0.5%, and 1.5% respectively. The selloff in chip stocks was driven by AI spending anxiety. The Eurostoxx 50 rose 0.3%. The Dollar Index was slightly firmer by 0.2% to 100.76. EUR-USD dipped 20 pips to1.1440.

·         The US 2Y and 10Y yields rose 1bp to 4.14% and 4.55%, respectively. The German 10Y yield rose 1bp to 3.13%. The UK 10Y yield rose 3bp to 4.97%.

·         Brent crude oil fell 0.9% to USD 84.23, remaining up about 11% on the week on Strait of Hormuz disruption fears. Gold fell 2.1% to USD 3,977, its lowest settlement since November 2025.

INVESTMENT CALL

Stock Update: Tech Mahindra Ltd – Above peer growth momentum   

Rating: Buy                   Reco Price: Rs 1,510                   Price Target: Rs 1,700

• TECHM revenue for Q1FY27 stood at USD 1,660 million, up 2.6% q-o-q (6.6% y-o-y) in CC. EBIT margins continue to expand by ~60bps q-o-q to 14.4%, across 11 consecutive quarters of improvement.
• Tech Mahindra posted revenue of Rs.15,712 crores, up 4.2% q-o-q (+17.7% y-o-y). EBIT stood at 2,264 crores, up 8.6% q-o-q (+53.3% y-o-y). EBIT Margin came in at 14.4% (58bps q-o-q/335bps y-o-y) led by volume growth and savings from Project Fortius. Adj. PAT stood at Rs 1,465 crores, up 8.2% q-o-q (+28.4% y-o-y). PAT Margin came in at 9.3% (up 35bps q-o-q/ up 78bps y-o-y). Other income stood at a loss of 106 crore, due to forex losses.
• The company is benefiting from strong traction in Manufacturing, BFSI, Healthcare, and Europe, while the gradual recovery in the Communications business and upcoming ramp-up of large telecom deals provide additional growth levers. Further, increasing monetization of AI-led capabilities through Project Helix, expanding client mining efforts, and record LTM deal wins of USD 4.1bn enhance revenue visibility over the next few quarters.
• Overall, with EBIT margins already at 14.4% and management confident of achieving its 15% FY27 target, alongside a healthy order book, strong deal conversion, AI-led transformation opportunities and above-industry growth aspirations, we believe Tech Mahindra is well placed to deliver a favorable mix of growth and profitability improvement over the medium term.

Valuation                                                                                                                       Rs Crore

OTHER NEWS

HCLTech: HCLTech has signed a seven-year expanded partnership with Guardian Life Insurance to accelerate the insurer’s AI-led technology and operations modernization. As part of the agreement, HCLTech will acquire Guardian India, integrating nearly 2,000 employees into a dedicated business unit, while deploying AI-driven solutions to improve operational efficiency, reduce costs, and enhance customer experience across Guardian’s insurance, retirement and wealth management businesses.

Shyam Metalics and Energy Limited: SMEL Steel Structural Pvt. Ltd., a step-down subsidiary of Shyam Metalics, announced the commencement of commercial production at its Aluminium Foil facility in Sambalpur, Odisha. The facility has an installed operational capacity of 18,000 tonnes per annum (TPA) and is equipped to manufacture premium-grade foils in the thickness range of 6 to 40 microns. The company also confirmed that its Aluminium Flat Rolled Products (FRP) facility is in the final readiness phase and is on track for commercial launch by September 2026, further strengthening its presence in the value-added aluminium products segment.

Coal India Limited (CIL) has achieved a significant milestone in its renewable energy journey with the successful commissioning of 200 MW out of its 300 MW Solar Power Project at Khavda, Gujarat. This marks a major step forward in Coal India’s green energy diversification strategy. The remaining 100 MW capacity is expected to be commissioned soon.

Ajmera Realty & Infra India reported 35% year-on-year growth in Q1FY27 sales bookings to Rs. 146 crores, driven by stronger realizations despite lower sales volumes. However, collections declined 26% YoY to Rs. 173 crores, while carpet area sold fell 31% YoY to 43,737 sq. ft. The company said performance was impacted by the absence of new project launches, geopolitical uncertainties, elevated input costs, and cautious homebuyer sentiment, but remains optimistic about long-term growth supported by a robust launch pipeline.

Borosil Renewables : The company reported a consolidated net profit of Rs. 86.8 crore in Q1FY27, reversing a Rs. 167 crore loss a year ago, while revenue rose 17.1% YoY to Rs. 405.7 crore. EBITDA more than doubled to Rs. 127.2 crore, with the margin expanding to 31.3%, aided by anti-dumping duties on solar glass and the elimination of recurring losses from its European operations.