July 27, 2026

TOP NEWS

War update: The US has paused airstrikes on Iran after nearly two weeks of bombardment, raising hopes that diplomacy could prevent a wider regional conflict. Iran also has halted attacks on US alliance countries. Control over commercial shipping in the Strait of Hormuz remains one of the biggest sticking points in discussions between the United States and Iran. Tehran has repeatedly said its interests in the waterway are non-negotiable, while Washington insists international navigation must remain unrestricted. Brent crude thrashed down to $92/ barrel and Indian markets indicate a positive start of 110 points on bourses.

Laurus Labs : The company reported a 126% year-on-year jump in consolidated net profit to Rs.368 crore for the first quarter ended June 2026, driven by strong growth in its contract development and manufacturing (CDMO) business, improved capacity utilisation, operating leverage and a favourable business mix that lifted margins.

OneSource Specialty Pharma Ltd delivered a strong Q1FY26 performance with consolidated revenue jumping 37.2% YoY to Rs.4,490.23 million. The company achieved a consolidated net profit of Rs.292.97 million, improving from a marginal position in Q1FY25. Standalone results were even stronger, with a net profit of Rs.512.25 million.

Sigma Advanced systems: Company secured an order of Rs 1013 crore from North American customer. Order is for 147,000 units of 155mm base bleed artillery shell bodies. Order execution timeline is 6 to 12 months. The contract is expected to be margin accretive and strengthens the position in global defence supply chain system.

Zen technologies: Reported a weak Q1FY27 with 10.5% YoY revenue decline and significant margin compression. The absence of new order wins raises execution concerns, making the FY27 revenue target of ~₹1,500 Cr challenging. Operational EBITDA margin fell to 27.34%, 767 bps below the company's 35% long-term target. Negative

Imposes MIP on PVC Imports:  The government has imposed a Minimum Import Price (MIP) on low-priced suspension-grade PVC (S-PVC) resin imports for six months. Following the move, domestic PVC resin prices have increased by ₹4/kg, marking the first meaningful hike since the MIP came into effect. The development is expected to improve pricing discipline and is broadly positive for the plastic piping industry, including Astral, Supreme Industries, Prince Pipes, and Finolex Industries.

Hindustan Zinc : The company reported Q1FY27 numbers, which are marginally above estimates, as recorded all-time high quarterly EBITDA of ₹8,074 crores, up 109% YoY, with a leading 59% EBITDA margin, and a record net profit of ₹5,469 crores, up 145% YoY. Revenue from operations reached ₹13,747 crores, up 77% YoY, driven by higher metal production. Positive

Sarda Energy and Minerals: The Board of Directors of Sarda Metals & Alloys, the wholly owned subsidiary of the company, has approved a capital expenditure of Rs 300 crore as part of its green initiative. The investment will be used for the installation of a waste heat recovery power plant and the expansion of the mineral wool manufacturing facility at its existing plant premises in Vizianagaram.

MACRO WRAP

• Global equities opened higher in Asia this morning as geopolitical tensions eased over the weekend. The US refrained from striking Iran for a second consecutive night on Sunday, while Iran said it had also suspended its military response. The pause in hostilities raised hopes of some de-escalation, particularly after Iranian and Omani officials held talks over navigation through the Strait of Hormuz over the weekend However, Iran-backed Houthi forces in Yemen claimed weekend attacks on Saudi Aramco-linked facilities at the Red Sea ports of Jizan and Yanbu. The S&P e-mini futures are up 0.6%, while Brent has fallen more than 5% to below USD92 after dropping 3.9% last Friday.
• The S&P Global US Services PMI rose to 53.6 in July 2026 from 51.2, the fastest growth this year, driven by stronger new work linked to World Cup spending and higher investment. Input costs hit a 14‑month high and output prices a near four‑year high, while sentiment climbed to a one‑year high.  US new single-family home sales rose 1.6% in June to an annualized 628,000, the first increase in three months and above forecasts.
• The S&P Global US Manufacturing PMI edged down to 53.8 in July 2026 from 53.9, below expectations but still near a four-year high. Production, new orders, and inventory building slowed, partly offset by higher factory employment and longer delivery times due to Middle East–related supply disruptions.
• The S&P Global UK Manufacturing (53.6) and services (51.8) both strengthened, helped by easing energy pressures and World Cup–boosted hospitality demand. The S&P Global Eurozone Services PMI rose to 51.6 in July 2026 from 49.4, a five‑month high that signals a return to expansion and beats expectations. Business confidence also improved on a better demand and economic outlook. Sentimentally positive for Euro.
• On Friday the DJIA rose and the S&P500 rose 0.5% and 0.1% respectively while the Nasdaq Composite Index fell 0.6%. The Dollar Index was unchanged last Friday at 101.47 but gained 0.7% for the week. EUR-USD was slightly lower Friday at around 1.1370 and fell 70 pips for the week. The US 2Y yield dipped 2bp to 4.33% last Friday but gained 15bp for the week. The US 10Y yield dipped 2bp to 4.68% last Friday and rose 13bp for the week. Brent crude oil prices fell 3.9% to USD96.78 last Friday but rose 9.9% for the week. It was the fourth consecutive weekly rise. Gold was slightly higher by 0.1% to USD4,053 last Friday and gained 0.9% for the week.
• Data watch this week: Global central banks are lined up with policy meets-The Fed will announce its policy decision on Wednesday. The Fed funds futures are pricing in 34% chance of a 25bp hike and are fully pricing in a 25bp hike by September. The Bank of England (BoE) meets on Thursday and is expected to leave the policy rate unchanged at 3.75%. The Bank of Japan (BoJ) meets on Friday and is expected to leave the Target Rate unchanged at 1% but maintain a hawkish bias..

INVESTMENT CALL

First Cut: RECL Q1FY27 – Benign Credit Costs Soften Impact of Operational Drag

• Net Interest Income (NII): Came in line with estimates at Rs. 5,140 crore, rising 5.0% Q-o-Q and falling 2.2% Y-o-Y. Net Interest Margin (NIM) expanded by 13 bps Q-o-Q to 3.48% (of AUM), beating estimates due to lower borrowing costs.
• Pre-Provision Operating Profit (PPOP): Came in below estimates at Rs. 4,247 crore, down 15.6% Y-o-Y and 14.5% Q-o-Q, primarily dragged down by higher foreign exchange losses and lower other income (dividends, fee income, and others).
• Credit Costs: Stood at -0.65% of AUM (a negative Rs. 963 crore), down 23 bps Y-o-Y and 104 bps Q-o-Q. This negative credit cost significantly offset the impact of lower PPOP.
• Profit After Tax (PAT): Came in slightly below estimates at Rs. 4,149 crore, but grew 23.4% Q-o-Q, driven by benign credit costs and continued improvement in asset quality.
• Asset Quality: Continued its improving trend. GNPA reduced by 82 bps Y-o-Y and 1 bps Q-o-Q to 0.23%. NNPA dropped by 13 bps Y-o-Y and 1 bps Q-o-Q to 0.11%, supported by strong recoveries.
• Assets Under Management (AUM): Almost on expectations at 5,90,000 crore, up 0.9% Y-o-Y and 1.0% Q-o-Q. Growth was led by the renewables segment (+23.1% Y-o-Y, +4.3% Q-o-Q), while generation and distribution segments saw muted growth.
• Disbursements: Sharp decline of 43.3% Y-o-Y and 26.6% Q-o-Q to Rs. 33,741 crore, impacted by higher prepayments and balance transfers (BTs).

View: AUM growth remained muted, and disbursements fell sharply due to elevated prepayments/balance transfers. Higher foreign exchange losses and lower fee income also dragged down other income. However, negative credit costs helped cushion drop of PPOP. We maintain a BUY rating on the stock with a Target Price of Rs. 450. A detailed note will follow post the earnings conference call.

Results Table

Actual Vs. Estimated

Key Metrics

Asset Quality

First cut: SAIL Q1FY2027 results: Margins expanded despite lower volumes              

·         Consolidated revenue from operations was Rs. 26,246 crore in Q1FY27, up 1.3% y-o-y (Rs. 25,921 crore in Q1FY26) but down 14.8% q-o-q (Rs. 30,813 crore in Q4FY26). During the quarter, SAIL moved up some of the planned repairs and maintenance, which was a necessary move due to the geopolitical volatility disrupting the global supply chain. As such, crude steel production stood at 4.76 MT (Q1FY26: 4.85 MT; Q4FY26: 5.08 MT) and sales volume at 4.16 MT (Q1FY26: 4.55 MT; Q4FY26: 5.32 MT).

·         Q1FY27 EBITDA Rs. 4,356 crore, up 48.9% YoY Rs. 2,925 crore in Q1FY26 Rs. 4,762 crore in Q4FY26 Rs. 4,356 crore in Q1FY27, down 8.5% QoQ. Operating margin rose to ~16.6% from ~11.3% in Q1FY26

·         After posting an exceptional charge of Voluntary retirement compensation of Rs. 144 crore in Q1FY27, compared to Rs. 330 crore in Q4FY26 (down 56.3% q-o-q). PBT stood at Rs. 2,187 crore, up 125.9% y-o-y from Rs. 968 crore in Q1FY26, but down 12.6% q-o-q from Rs. 2,502 crore in Q4FY26.

·         The net profit (attributable to the parent's owners) in Q1FY27 increased by 120.8% y-o-y to Rs. 1,644 crore and was down 10.4% q-o-q.

·         View: SAIL have reported stellar standalone topline performance in Q1FY27, led by easing crude steel production and sales volumes, but profitability improved sharply on yoy basis. We will review our estimates and send a detailed note. Currently, we have a buy rating on the stock.

First cut: Five-Star Business Finance Ltd – Q1FY27 Results 

Slow Quarter on Expected Lines; Asset Quality Pressure Persists

●      Net interest income: Slightly above estimates at Rs. 636 crore, up 10.2% y-o-y and 3.6% q-o-q. NIM stood at 18.74% of AUM (down 3 bps q-o-q, flat on yearly basis), reflecting a parallel shift in portfolio yields and borrowing costs.

●      PPOP: In line with estimates at Rs. 424 crore, growing 5.2% y-o-y and 1.5% q-o-q, supported by NII and other income, though partially offset by higher operating expenses.

●      Credit Cost: In line with estimates at 1.8% of AUM (up 27 bps y-o-y, down 2 bps q-o-q), remaining elevated due to deteriorating asset quality.

●      PAT: Almost in line with estimates at Rs. 271 crore, up 1.9% y-o-y and 0.8% q-o-q. Growth was driven by PPOP, though dampened by credit costs. RoA (% of AUM) dropped 70 bps y-o-y and 23 bps q-o-q to 7.91%.

●      Asset Quality: Continued to weaken during the quarter. GNPA rose to 3.46% (up 100 bps y-o-y 9 bps q-o-q), while NNPA increased to 2.10% (up 85 bps y-o-y, 10 bps q-o-q), keeping credit costs elevated.

●      AUM & Disbursements: AUM met estimates at Rs.  13,722 crore (+10.2% y-o-y, +3.8% q-o-q). Disbursements reached a record Rs.  1,496 crore, surging 16% y-o-y and 23.4% q-o-q.

●      Network Expansion: Five-Star Business Finance expanded its footprint to 856 branches across 11 states/UTs after adding 12 new branches this quarter.

View & Valuation

Five Star reported an in-line quarter, starting off strong with record disbursements (+16% y-o-y / +23.4% q-o-q). However, growth remains slower than the industry average. Persistent asset quality pressure and high credit costs continue to weigh on profitability and RoA. We have a HOLD rating on the stock with a target price of Rs.  550, we will come out with detail note post concall today.

First Cut Q1FY27

Source: company, Mirae Asset Sharekhan Ltd.

Actual/Estimates

Source: company, Mirae Asset Sharekhan Ltd.

Source: company, Mirae Asset Sharekhan Ltd.

Source: company, Mirae Asset Sharekhan Ltd.

First Cut: Lodha Developers Ltd (Macrotech) – Q1FY27 Consolidated Results: A Good Quarter

●      Pre-sales grew 4.0% YoY to Rs. 4,629 crore, a steady show given Q1 is seasonally a light launch quarter. Collections were the standout, up 46% YoY to Rs. 4,205 crore, reflecting healthy construction progress and better cash conversion from past sales.

●      Revenue stood at Rs. 4,996 crore, up 43.1% YoY, helped by strong project completions and revenue recognition. EBITDA came in at Rs. 1,922 crore, up 95.3% YoY, with margin expanding 1,028 bps YoY to 38.5% — driven by better pricing, a richer project mix, and operating leverage on a larger revenue base.

●      Net debt fell Rs. 446 crore during the quarter to Rs. 4,931 crore on the back of strong operating cash flows. Net debt/equity is at 0.2x, comfortably below the company's self-imposed ceiling of 0.5x, leaving ample room to fund business development.

●      The company carries a robust pipeline with GDV of nearly Rs. 2,00,000 crore available for sale, giving multi-year visibility on launches without needing aggressive land buying.

●      Annuity income run-rate is currently ~Rs. 300 crore, which management expects to scale to ~Rs. 3,000 crore over the next six years. The three engines here are data centres (targeting 1GW capacity), warehousing & industrial parks, and high-street retail.

●      Digital Edge India — a JV between Digital Edge (Singapore) and the National Investment and Infrastructure Fund (NIIF) — has been onboarded as another leading global operator at Lodha's Green Data Centre Park at Palava, Navi Mumbai. Land was sold at over Rs. 42 crore per acre during the quarter, a price that has risen more than 15x over the last five years. Beyond the monetisation value, each new marquee operator strengthens the cluster effect and improves pricing power for the remaining land bank.

First cut: AU SFB – Q1FY27 -  Robust core performance; growth-profitability flywheel intact

●      NII grew 32% YoY to ₹2,695 cr (largely in line with our estimate of ₹2,692 cr) on 26.2% loan growth and 47bps YoY NIM expansion to 5.9%; NIM moderated 7bps QoQ on reversal of Q4FY26 seasonal one-offs

●      Core PPoP showed strong 41% YoY uptick, while sharp fall in credit cost on YoY basis lead to PAT growth of 37% YoY. Operating profit was ~2% above estimates while PAT was ~2% below estimates.

●      Slippages fell 22% YoY to ₹798 cr, GNPA/NNPA declined to 2.10%/0.76%; credit cost (incl. CGFMU) nearly halved YoY to 0.8% from 1.4%.

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

First cut: Bank of Baroda – Q1FY27 - Mixed show, One-offs dent profitability.

• Q1FY27 PAT was down 71.9% y-o-y and 77.2% q-o-q, entirely on account of a Rs. 5,680 crore exceptional charge relating to the out-of-court settlement of the legacy NMC Group litigation.
• NII grew 9.5% y-o-y to Rs. 12,525 crore, while advances and deposits grew strongly at 17.4% and 13.8% y-o-y respectively.
• Asset quality was largely stable barring seasonal Agri NPA slippage, however owing to muted sequential growth in advances GNPA and NNPA ratio optically increased by 10 bps and 5 bps QoQ.
• Overall, we believe banks financials are healthy and profitability to be maintained at respectable levels going ahead. We have BUY rating and will come out with detailed note shortly.

Bank of India: Q1FY27 -  Core performance intact, credit-off take garners traction

• PAT grew 36.2% y-o-y to Rs. 3,068 crore, aided by 12.6% y-o-y growth in NII and 26.0% y-o-y growth in operating profit;
• Asset quality improved on overall basis as GNPA ratio improved to 1.81% (down 111 bps y-o-y, 17 bps q-o-q) and NNPA declined to 0.51% vs 0.56% QoQ.
• Global gross advances grew 18.6% y-o-y to Rs. 7.98 lakh crore led by RAM growth of 19.75% (58.3% of domestic advances); global deposits grew 14.9% y-o-y to Rs. 9.58 lakh crore.
• The bank is poised to post steady ROA of ~1% mark for FY27. We have BUY rating and will come out with detailed note shortly.

OTHERS

Jindal Steel: The company reported an adjusted EBITDA of Rs 2,667 crore for the April-June quarter of FY27, as higher realisations, tighter cost control and a richer product mix helped cushion the impact of lower production and sales caused by planned maintenance shutdowns at key facilities. A consolidated profit after tax of Rs 844 crore during the quarter, while gross revenue stood at Rs 17,834 crore.

Caliber Mining and Logistics: Vikas Khemani-backed Carnelian Asset Management & Advisors acquired 20 lakh shares, representing a 3.05% stake, in Caliber Mining at Rs 494.85 per share, valued at Rs 98.97 crore. Meanwhile, global investor Goldman Sachs Bank Europe SE ODI purchased 3.34 lakh shares, representing a 0.51% stake, worth Rs 16.65 crore at Rs 497.94 per share.

Shakti Pumps (India) Limited: Shakti Pumps reported Q1 FY27 revenue of Rs. 859 crore, up 38.1% YoY, driven by higher execution of solar water pumping projects. However, PAT declined 46.7% YoY to Rs. 51.6 crore and EBITDA fell 42.3% YoY to Rs. 83.1 crore, with the EBITDA margin contracting to 9.68% from 23.06%, due to higher raw material and logistics costs. The company also invested an additional Rs. 5 crore in Shakti EV Mobility Pvt. Ltd. to expand its motors and EV charger manufacturing business.

NTPC: Q1 consolidated net profit grew 12% YoY (above consensus estimate), driven by strong capacity adds & higher plant availability. EBITDA margin improved to 28.81% vs 24.16% yoy. NTPC added 1.8GW capacity in 1Q FY27 (thermal: 820MW, hydro: 250MW, renewable: 730MW), taking the total installed group level capacity to 90.9GW.

Hind Rectifiers: Receives Rs  60 Crore Propulsion Order from Indian Railways. The order opens up a big market for Hind Rectifiers. Order is from Modern Coach Factory (MCF) / Indian Railways.  Order is for supply of complete Propulsion Systems for 4 MEMU trainsets.

Waaree Renewable: Bags EPC orders for 800 MWac Solar PV Projects. The new orders further strengthen the company's execution pipeline in the renewable energy sector. Reinforces Waaree Renewable's position as a key EPC player in India's fast-growing solar industry.

IDFC First Bank: The Bank’s net profit more than doubled to Rs. 1,075 crore from Rs. 465 crore y-o-y. NII increased 21.1% to Rs. 5,972.3 crore. gross NPA contracted to 1.51% from 1.61% q-o-q. Provisions Saw a sharply decline, dropping 31.1% y-o-y to Rs. 1,144 crore, reflecting stable asset quality. Total loans and advances grew 20.6% y-o-y, while customer deposits climbed 16.6% y-o-y. Besides, bank received Rs. 514.82 crore from the National Credit Guarantee Trustee Company (NCGTC) under the Credit Guarantee Fund for Micro Units (CGFMU) scheme: Strong quarter

DCB Bank Q1 (YoY): Profit sharply rose 35.6% to Rs 213.2 crore. Net interest income grows 17.8% to Rs 684 crore. Provisions and contingencies sharply fell 50.4% to Rs 57.1 crore Vs Rs 115.1 crore. Gross NPA slips to 2.43% Vs 2.45% (q-o-q). Strong quarter.