August 05, 2026

TOP NEWS

Rashi Pheripherals: Revenue surged 62% to Rs 5,102 crore, EBITDA margin stood at 3.04%, exceeding management's guided range of 2.5–2.7%. Net profit was up 70% yoy to reach Rs 105 crore. Rashi also announced a 74:26 semiconductor joint venture with Japan’s Restar Corporation, scheduled to commence operations in October 2026. Rashi acquired 67% of VDA Infosolutions for Rs 368.50 Cr after the quarter

Welspun Enterprises: Net profit down 22% to Rs 80.6 crore versus Rs 103.3 crore, Revenue down 8.5% to Rs 774 crore versus Rs 845 crore Ebitda down 17.4% to Rs 150.5 crore versus Rs 182.2 crore Ebitda margin at 19.5% versus 21.6%. The company witnessed weaker financial performance due to softer execution and margin pressure. Negative

Avalon Technologies: Revenue grew 50% yoy to Rs 484 crore, EBITDA grew 94% to Rs 58 crore with margins at 11.96% improving 273 bps. PAT grew by 145% to Rs 35 crore. The US plant have have turned profitable in Q1FY27 vs the guidance of break even in FY27. The US subsidiary posted profit of Rs 6 crore. This early turnaround completely alters the consolidated margin profile, removing the single largest drag on the company's profitability. The margins improvement confirms shift toward high-value box-builds, which accounted for 56% of sales, is successfully translating into superior unit economics. The company's massive order book of ₹3,441 Cr provides high revenue visibility for the next 18 to 36 months. With project readiness for its global semiconductor partner complete and aerospace cabin sub-assemblies entering volume production, these high-barrier verticals are poised to drive the next leg of growth starting in H2 FY27.

Marico Limited: Marico reported a strong Q1 FY27 performance, with consolidated revenue rising 22.9% YoY to Rs. 3,957 crore and net profit increasing 27% YoY to Rs. 652 crore. Growth was driven by robust domestic demand, with India revenue up 21% YoY to Rs. 3,003 crore, supported by multi-quarter high volume growth. International business also remained strong, with revenue increasing 29.3% YoY to Rs. 954 crore.

MACRO WRAP

• China’s July Rating Dog China services PMI 50.4, down 3.7 pts from June, the weakest pace since January 2024. New export business remained resilient, employment continued to expand and cost pressures eased, the pullback was led by a sharp slowdown in services output while manufacturing output expansion also slowed, and input-price inflation moderated further. Services and overall activity are expected to remain in expansion but at a slower pace.
• Asian stocks tracked Wall Street higher after optimism over a possible interim deal between Washington and Tehran eased concerns about energy supplies. Oil extended its losses. US Treasury Secretary Bessent said a deal with Iran to reopen the Strait of Hormuz could come as soon as Tuesday or Wednesday, noting that some ships are already transiting the strait.
• Japan’s average cash earnings rose 3.4% year-on-year in June 2026, slightly above May’s revised 3.3% and in line with forecasts. It was the 54th consecutive month of nominal wage growth and the fifth with gains above 3%. Base pay also increased 3.4%. Real wages rose 1.6% for a sixth month, bolstering the case for further central bank rate hikes.
• US job openings fell by 178,000 to 7.36 million in June 2026, below expectations. Hires held at 5.3 million and separations at 5.4 million, with quits and layoffs little changed.
• US imports fell 1.8% in June 2026 to $388 billion, with goods down on weaker capital and consumer goods, partly offset by more telecom equipment. Services imports rose slightly, led by intellectual property, transport, and insurance, while travel declined.
• Commodities : Brent fell 5.3% on Tuesday to settle around $79 per barrel — its lowest since 10 July  as Hormuz deal optimism intensified. WTI declined toward $75 per barrel. Oil has now lost more than 10% over two sessions. LME copper rose above $14,000 per tonne on Tuesday, its highest in two months, as traders monitored ballooning US inventories ahead of an expected Trump administration decision on import tariffs. The copper cash-to-3-month spread rose sharply to $102.38 per tonne, its highest since October 2025, signalling tightening near-term supply.
• Data watch: Market looks for RBI to hold its repurchase rate at 5.25%, we are in line with the market. Any deviation from hold, or a notably dovish/ hawkish accompanying statement will drive INR.

INVESTMENT CALL

First Cut: BSE Ltd – In-line overall performance, impact regulatory changes to be monitored

• Operating revenue rose 63% YoY to Rs1,566 cr (broadly in-line), driven by a 93% YoY surge in the equity derivatives segment to Rs1,160cr on higher volumes and market share gains; cash segment grew 19% YoY, partly offset by a 4% YoY decline in services to corporates.
• Core EBIDTA jumped 71.4% YoY and 1.0% QoQ and EBIDTA margin stood at 68.4% versus 65.3% YoY. Q1FY27 PAT jumped 66% YoY (+10% QoQ) to Rs873cr (in-line)
• Average ADTO stood at Rs2.97 lakh cr in Q1FY27 but declined to Rs2.54 lakh cr in July post the new regulatory framework effective July 1; this moderation is expected to weigh on the equity index options segment, a key revenue driver.
• We currently have a BUY rating on the stock and will come out with detailed note shortly.

First Cut - Pondy Oxides : Middle East war impacted volumes which were offset by higher VAP.

• Volumes on Lead were impacted badly mostly due to disruptions caused by the war.
• Copper’s contribution continued to inch up in the product mix – this is good in long term but it is margin dilutive in NT.
• However, the biggest positive was increasing share of VAP – Lead EBITDA/T improved to Rs 21,595 from Rs 19,739 in Q426, whereas copper EBITDA/T improved to Rs 48,448 from Rs 45,556.
• We have a concall today at 3:30 PM.
• Key monitorable: how is the company managing the sourcing for lead and copper as that becomes an overhang in the NT.
• We expect the stock to be volatile, but Risk-Reward is more favorable with the given correction. We have a BUY with a TP of Rs 680.

Stock Update: APL Apollo Tubes– Capacity expansion and focus on VAP to boost profitability

Reco: BUY                CMP: Rs. 1,944             Target: 2,327

·         Consolidated revenue/EBITDA/PAT beat estimates by 11% / 1.1% / 2.0%, respectively.

·         Another quarter of strong EBITDA/tonne at Rs. 5,521 (up 17.8% y-o-y) despite lower volumes, on better realisation and brand premium.

·         FY27 guidance maintained - Volume growth of 15–20%, absolute EBITDA growth of ~20%, and EBITDA/tonne of Rs. 5,000–5,500.

·         We maintain a Buy rating with a PT of Rs. 2,327, supported by capacity ramp-up visibility and structural demand drivers.

First Cut: PNB Housing Finance – Soft Q1, below estimates performance

• PAT came in below estimates by 4.5% at Rs. 557 crore, though it rose 4.5% y-o-y and fell by 15.0% due to lower disbursement growth and NIM contraction.
• Net Interest Income missed expectations by 6.7%, coming in at Rs. 800 crore (+7.2% y-o-y). Net Interest Margin (NIM) contracted to 3.44% of AUM, down 20 bps y-o-y and 12 bps q-o-q.
• Opex-to-AUM reduced to 1.02% (down 2 bps y-o-y, 7 bps q-o-q. However, single-digit PPOP growth (+9.1% y-o-y, +1.6% q-o-q) slightly lagged forecasts.
• Credit Costs remained benign and aligned with projections at -13 bps of AUM, cushioned by Rs. 71 crore in recoveries from written-off accounts.
• Asset Quality Displayed overall stability as Gross NPA fell by 11 bps y-o-y to 0.95%, despite a minor 2 bps uptick q-o-q.
• Assets Under Management (AUM) missed estimates by 2.3%, reaching Rs. 93,021 crore (+13.3% y-o-y, +2.3% q-o-q). Softness was driven by weak disbursements, which dropped 37.4% q-o-q despite growing 13.4% YoY.
• The company reported a soft quarter showing below estimates performance, we have a buy rating on stock and update you detail with detail note post concall (8:00 am today).

First Cut – Q1FY27

Company, Mirae Asset Sharekhan Research

Key Metrics

Company, Mirae Asset Sharekhan Research

Company, Mirae Asset Sharekhan Research

OTHER NEWS

Graphite India reported strong Q1 FY27 results with consolidated net profit rising 28.6% to ₹171 crore from ₹133 crore on increased volume realisation and net sales growth of 26.6% to ₹842 crore. EBITDA rose by 24.9% to ₹241 crore, but the operating margin dipped to 28.6% from 29.0% with higher raw material and logistics costs negating the marginal increases in electrode prices. Capacity utilisation improved to 97% from 82% a year ago. The company continued to have a strong balance sheet with gross debt of Rs 266 crore and net cash of Rs 3,939 crore. Standalone profit grew 8.3% to Rs 157 crore on 19% sales growth on resilient Indian steel demand despite subdued Chinese and flat European production, despite marginal margin pressure. Underlying economics of the business shows turn around, as Operating margin improved to 17.1% from 6.4% a year ago. Operating profit was 17.1% versus 6.4% last year, demonstrating a turnaround in the company's core business economics.

Indian Metals and Ferro Alloys (IMFA) reported a two-fold jump in standalone net profit to Rs 191.49 crore for the June quarter, helped by revenue increase. The company had posted Rs 91.48 crore net profit a year before, an exchange filing stated. Revenue increased to Rs 960.45 crore from Rs 641.54 crore. For the first time, all four furnaces of the KNR 2 are operating, bringing total production for the quarter to more than 80,000 tonnes.