October 12, 2026

>> 9.11

INVESTMENT CALLS

First Cut: CanFin Homes – Q2FY27

• In line Q2, IT and digital transformation impacted disbursements
• Net Interest Income (NII) came in line with estimates, growing 6.7% YoY and 1% QoQ to Rs. 431 crore. Net Interest Margin (NIM) contracted by 12 bps YoY  and 2 bps Q-o-Q to 3.98% (as a % of AUM), primarily driven by faster rise in the cost of borrowings.
• Pre-Provision Operating Profit (PPOP) grew 6.0% YoY and1.0% q-o-q was almost in the line with expectation.
• Profit After Tax (PAT) slightly exceeded estimates, rising 9.2% YoY to ₹268 crore. The credit costs stayed continued benign.
•  Asset quality remained stable and healthy, with GNPA at 0.9% and 0.42% as of September 2026.
• Assets Under Management (AUM) expanded by 9.8% YoY and 1.3% QoQ to ₹43539 crore. Disbursements fell by 7% y-o-y due to IT transformation.
• View: The company reported in line with expectation performance however it has some impact on disbursements due to IT and digitalisation transformation. Today, we have call at 3:00 pm and then will update you with detail note.

First Cut Table

Actual Vs. Variance

Asset Quality

Key Metrics

TOP NEWS

Poonawalla Fincorp reported strong Q2 FY27 performance, with AUM growing 10.4% QoQ to ₹74,008 Cr, while net income rose 75.6% YoY to ₹1,589 Cr. NIM + fees expanded 16 bps QoQ to 9.26%, while PAT increased 21.8% QoQ to ₹375 Cr and RoA improved 20 bps QoQ to 2.18%. Asset quality improved, with GNPA declining to 1.20% from 1.37% QoQ and credit costs moderating to 2.19% from 2.40%. Gold and consumer durable loans recorded healthy disbursement growth, while new products contributed 28% of quarterly disbursements. AI adoption continues to support customer acquisition and operating efficiency. Management remains focused on sustainable growth and RoA improvement, with credit costs, rising borrowing costs, fee-income pressures and branch expansion expenses being key monitorables.

Premier Polyfilm reported a 39.33% YoY and 16.64% QoQ growth in revenue (net of GST) to ₹102.55 crore in Q2FY27. EBITDA increased 18.23% YoY and 7.47% QoQ to ₹14.53 crore, while EBITDA margin declined to 14.17% from 16.70% in Q2FY26 and 15.38% in Q1FY27, indicating margin contraction despite strong revenue growth. PBT rose 19.18% YoY and 7.99% QoQ to ₹13.11 crore, while PAT increased 22.47% YoY and 8.04% QoQ to ₹9.81 crore.

KEC International: co. Secures new t&d orders of rs. 1,014 crores in india. With these wins, our ytd order intake stands at over rs. 9,600 crores.

Signature Global: Q2FY27 pre-sales declined 9% YoY to Rs. 1,830 crore, while collections rose 51% QoQ to Rs. 1,010 crore. Average realization increased to Rs. 17,122/sq. ft., supported by premium launches. The company added 194.22 acres in Farrukhnagar, Gurugram, with development potential of 6.77 million sq. ft. H1FY27 pre-sales declined 18% YoY to Rs. 3,800 crore.

Bajel Projects: The company has secured a major EPC order worth more than Rs 200 crore from Tata Power Company for the supply and installation of 220 kV gas-insulated switchgear (GIS) substations at Salsette and Powai in Mumbai.

Domestic Steel & mining players: India's Ministry of Steel has outlined its 2047 strategic roadmap under the draft National Steel Policy, establishing a framework to scale domestic crude steel capacity to 604 MT and production to 531 MT to support projected finished steel demand of 505 MT (raising per capita consumption to 302 kg). The export target is set at 45 MT. Key pillars focus on structural decarbonization, raw material security, logistics optimisation, and secondary steel modernisation to lower sector emissions intensity. For integrated steelmakers, the policy guarantees multi year volume visibility driven by infrastructure and construction demand (67 % usage share). Logistics infrastructure expansion such as scaling slurry pipelines beyond 299 MTPA and increasing rail freight shares will systematically reduce freight costs, which currently comprise 12% of realisation. This would be a positive development for domestic steel players like Tata Steel, Jindal Steel, SAIL, and Jindal Stainless. Also, mining players will also take positive cues, like NMDC and Coal India, as this will be helpful for the supply chain.

Oswal Pumps: Its subsidiary has approved a 1.2 GW solar cell manufacturing plant in Karnal, Haryana, at a cost of ₹455.85 crore. The facility is expected to meet around 75 per cent of the company’s solar cell requirements, reduce reliance on external suppliers and improve backward integration.

Saatvik Green Energy: The company secured a ₹100 crore order from Maharashtra State Electricity Distribution, providing fresh business visibility.

Avenue Supermarts (DMart): The company’s net profit rose 8.5 per cent year-on-year to ₹743.6 crore, while revenue climbed 17.8 per cent to ₹19,644 crore.

Adani Green Energy: Operational capacity rose 24 per cent year-on-year in H1 FY27, while energy sales increased 32 per cent to 25,747 million units, highlighting growth in its renewable energy business.

Can Fin Homes' Q2 FY27 :Profit after tax grew 9.6% to ₹275cr from ₹251cr a year ago. Net interest income rose 6.7% to ₹431cr. The loan book reached ₹43,539cr, up 9.8% over the year. Margins held steady — net interest margin at 3.89% and spread at 2.81%, with yields at 9.84% and cost of funds at 7.03%. Asset quality stayed healthy: gross NPA at 0.90% and net NPA at 0.42%, both slightly better than last year, with low credit costs. The weak spot was disbursements, which fell about 7% to ₹2,373cr — the result of Project Tejas, the company's ₹297cr IT overhaul, which caused a temporary dip as 252 branches switched to the new loan systems during the quarter. Return on assets was 2.42% and return on equity 17.12%, while the cost-to-income ratio edged up to 19.59% as the technology costs flowed in. For the half-year, profit grew 14% to ₹542cr.

Macro Wrap

• Saudi Arbia’s Riyadh’s airport attack kills 12 over weekend with fresh strikes this morning, Iran-backed Houthi militants struck King Khalid International Airport in Riyadh on Saturday, killing 12 people and injuring more than 300 in what Saudi authorities described as the deadliest attack on the kingdom in more than a decade.
• Russia diesel deal: Russia partially lifted its diesel export ban, agreeing to supply 500,000 tonnes to global markets pursuant to a Trump-Putin agreement effective October 10, adding modest relief to energy markets. Negative for OMC’s having larger export shares
• US midterms approaching: With midterm elections weeks away, Trump faces political pressure on energy costs and tariff impacts. US manufacturers continue to flag significant cost increases from tariffs, with Mexico vehicle exports plunging in September.
• European sovereign bond markets remain a source of concern for global fixed income investors. French government bonds have come under sustained selling pressure, with the spread between French and Italian 10-year yields hitting a record 30bps, a historic inversion of the traditional risk hierarchy between the two countries. The German 10Y fell 1bp last Friday to 3.48% but rose 2bp for the week. The UK 10Y fell 4bp last Friday to 5.44% but gained 8bp for the week
• The US equity market is opened today but the Treasury market is closed for Columbus Day. Japan market is closed today as well. For the week, the DJIA, the S&P500 and Nasdaq rose 0.9%, 1.2% and 0.6% respectively. The Philadelphia Semiconductor Index fell 0.4% last Friday and fell 4.3% for the week, underperforming amid renewed doubts over the durability of AI-driven demand.
• The DXY dollar index ended the session a tad higher by under 0.1% at 102.213 (from previous session close of 102.138). The US 2Y yield rose 3bp last Friday to 4.79% but fell 4bp for the week. The US 10Y rose 1bp last Friday to 5.24% but fell 3bp for the week. The US 30Y auction last Thursday drew solid demand and helped pull 30Y yield back from their highest levels in more than two decades.
• Brent crude oil prices edged up 0.4% to USD 104.72 last Friday and gained 2.4% for the week. Gold rose 1.5% to USD4,194 last Friday and gained 1.3% for the week, recovering from a two-month low earlier in the week.
• University of Michigan sentiment: The preliminary October consumer sentiment index fell to 46.3, below the 47.6 consensus estimate and down from 48.1 in September, reflecting persistent inflation and geopolitical anxiety inflation expectations rose to 4.7% from 4.6%, the second-highest print on record.

OTHER NEWS

Shilpa Medicare: The Austrian Agency for Health and Food Safety (AGES) inspected the company's Unit 4 in Jadcherla, Telangana, from July 27 to 30, 2026. Following the inspection, the regulator issued a Good Manufacturing Practices GMP) certificate for the unit

Avantel: The company received a ₹12.04 crore order from Larsen & Toubro for comprehensive annual maintenance of satellite communication equipment, adding to its order book.