August 10, 2026

INVESTMENT CALL

First Cut: Info Edge Q1FY27 Result: Revenue in-line; margins surpassed estimates

• Info Edge reported a healthy Q1FY27 performance, with standalone revenue growing 12.0% YoY to Rs 824 crore, driven by broad-based strength in Recruitment Solutions and 99acres.
• Billings increased 14.4% YoY to Rs 737 crore, indicating continued demand momentum and providing good visibility for future revenue growth.
• Recruitment Solutions revenue remained the key growth engine with revenue up 13.0% YoY to Rs 612 crore with billings growth of 17.5% at Rs 553 crore, while 99acres delivered robust revenue growth of 17.3% YoY at Rs 130 crore and billings growth of 72.5% y-o-y at Rs 163 crore.
• EBITDA increased 30.6% YoY to Rs 363 crore, significantly ahead of revenue growth due to operating leverage and a sharp decline in advertising spends. EBITDA margin expanded by 628 bps YoY to 44.0%, reflecting improved profitability across core businesses. EBIT rose 32.7% YoY to Rs 339 crore, while EBIT margin improved to 41.1% from 34.7% last year.
• PBT grew 23.4% YoY to Rs 427 crore, supported by strong operating performance. Adjusted PAT (before exceptional loss) stood at approximately Rs 318 crore, up 22.3% YoY. Reported PAT after minority interests was Rs 246 crore, down 5.4% YoY, impacted by a Rs 72 crore exceptional loss relating to diminution in carrying value of certain investments.

TOP NEWS

War update: Trump says that his administration is only semi negotiating with Iran  where as Iran says that they are not holding any negotiations with the US and only exchanging messages through intermediaries. Israeli Prime Minister Benjamin Netanyahu has rejected ⁠⁠Trump’s plan for Gaza, saying he will not ⁠⁠withdraw forces until Hamas ⁠⁠fully disarms. So, there is no major clarity on the peace talks. Oil prices sustained near $84/ barrel. Asian markets opened up healthy. Gift nifty indicates a flattish start with 25 points positivity on the bourses.

Hitachi Energy India: Revenue Rs 2,493.7 Cr (↑68.6% YoY) Operational EBITDA Rs 399.9 Cr (↑135% YoY), margin 16.0% vs 11.5% PAT Rs 294.2 Cr (↑123.5% YoY). Order inflows and backlog were at Rs 5096 crore / Rs 32,222 crore respectively. Won multiple AI-driven data centre orders from hyperscalers. Targeting opportunities from India's 15 GW data centre market by 2030.

Oil India: Very good Q1FY27 with strong QoQ and YoY uptick across all parameters. Net profit came at Rs 4027 crore up 97% yoy aided by higher crude oil production as well as robust profits declared by its subsidiary Numaligarh Refinery (NRL). Revenue jumps 58.8% to Rs 7,958.1 crore Vs Rs 5,012.4 crore

Nitin Spinners: Revenue Rs 875.03 Cr (10.30% YoY), EBITDA Rs 155.58 Cr (+39.85% YoY ), EBITDA Margin 17.78% vs 14.02% YoY. PBT Rs 101 Cr (+83.17% YoY), PAT 75.27 Cr (+83.64% YoY)  . Strong set of performance for Q1FY27.

Oswal Pumps Ltd reported a 71% YoY drop in standalone net profit to ₹216.71 million for Q1FY26, while consolidated profit fell 43% to ₹539.64 million. Revenue declined 22% standalone and 8% consolidated. The company consolidated Walso Solar Solution Pvt Ltd after increasing its stake to 51%.Negative

Aarti Pharma reported a strong Q1 performance, with consolidated revenue growing 39% YoY to ₹5.36bn from ₹3.86bn. EBITDA increased 43% YoY to ₹1.36bn, with EBITDA margin improving to 25.4% from 24.7%, reflecting healthy operating leverage. Consequently, consolidated net profit rose sharply by 65% YoY to ₹761mn from ₹460mn. Overall, the quarter reflects strong revenue growth accompanied by margin expansion, leading to robust earnings growth.

Universal Cables: Revenue grew by 58% to Rs 945 crore, EBITDA came in at Rs 94 crore. PAT doubled to Rs 37 crore. Exports, up 187% YoY to Rs 120 crore, now 12.7% of revenue. Order book stands at Rs 2,860 crore as of July 1, including ₹485 crore of export orders, with another Rs 390 crore in the export pipeline. The ongoing MV/HV capacity expansion at Satna increased from Rs 550 crore to Rs 617 crore, funded via a mix of debt and internal accruals.

Macro Wrap

• US nonfarm payrolls surprised to the downside in July, with 23k jobs lost in the month and the cumulative gain for the prior two months revised down by 103k. Year-to-date, the month-average gain is now 61k, consistent with balance between labour demand and supply. The unemployment rate edged down 0.1ppts but only as a result of a further reduction in the participation rate, which is now 1.2ppts lower than January 2025. Sentimentally positive for USD
• The 2Y and 10Y UST yields fell 3-5bps to 4.20% and 4.65%, while Fed funds futures contracts are now only pricing in less than an even chance for a 25bp hike by end 2026, the DXY tumbled 0.4% d/d to its 2-month low of 99.54. JPY strengthened 0.4% d/d to 157.76 against the Dollar, reversing earlier declines from earlier in previous week.
• The S&P 500 gained 0.6%, while the Dow Jones rose 0.3% and the NASDAQ outperformed, advancing 1.3%. European equities also edged higher, with both the Euro Stoxx 50 and FTSE 100 gaining 0.3%
• Chinese CPI inflation slowed to 0.5%yr in July as energy prices snapped back. But, excluding food and energy, inflation was little changed from June at 0.9%yr. Annual headline producer price inflation also slowed abruptly from 4.1% to 3.5% in the month.
• Gold closed above US$4,300/oz, rising 2.4% on Friday and 7% for the week, as investors continued to buy dips despite ongoing Middle East tensions. The Chinese central banks added another 20 tons gold into reserves bringing net ytd purchases to 60 tons.

INVESTMENT CALL

First cut: Sky Gold & Diamonds Q1FY2027 results:

·       Sky Gold & Diamonds showed significant growth, with revenue from operations up 77.97% to ₹2012.794 Cr and net profit up 140.66% to ₹104.902 Cr, a 2.4x jump in PAT compared to Q1 FY26. But the balance sheet reveals a classic cash flow contraction. The operating cash flow for the year was minus ₹44.92 Cr, despite a net profit of ₹282 Cr.

·       EBITDA margins expanded by 148 basis points to 7.79%, driven by the capital-light 'Advance Gold' job-work model, which now accounts for 11.5% of volumes.  This expansion is driven by the rising share of the Advance Gold job-work model, which grew to 11.5% of volumes in FY26, alongside a shift toward higher-margin 18KT and 14KT jewellery.

·       Export revenue surged 185% year-on-year to ₹375.85 Cr in Q1 FY27, up from ₹131.66 Cr in the year-ago quarter. Exports now represent 18.7% of consolidated revenue, up from 11.6% in Q1 FY26.

·       View: Sky Gold’s headline numbers show a massive jump driven entirely by robust EBITDA and PAT margins and export sales in Q1FY27. We will review our estimates and send a detailed note. Currently, we have a buy rating on the stock.

First Cut: Power Finance Corp Q1FY2027 – Muted quarter, Steady asset quality and negative credit costs drive PAT

• Net Interest income (NII), missed estimates by 2.8%, declining 4.3% y-o-y and 5.2% q-o-q. This drag was primarily driven by NIM compression (-31 bps y-o-y and -14 bps q-o-q) alongside muted AUM growth due to weak disbursements.
• Pre-Provision Operating Profit (PPOP), outperformed expectations significantly, surging 10.9% y-o-y on the back of a sharp rise in other income.
• Credit Costs came in at a negative Rs. 556 crore against our forecast of negative Rs. 115 crore, providing substantial relief to the bottom line.
• Profit after tax (PAT), surpassed consensus estimates by 7.2%, largely driven by negative credit cost due to improvement in asset quality.
• Assets Under Management (AUM), stood at Rs. 570,045 crore (+3.7% y-o-y / -1.7% QoQ), missing expectations by 3.1% due to sharp fall in disbursements (down by 44.2% y-o-y and 49.6% q-o-q)
• Dividend Declaration: The Company an interim dividend of Rs. 3.90 per share.
• View: The company delivered beat-on-profitability results and declared a dividend, but core performance remains soft. NII growth was impacted by NIM compression, while persistent prepayment pressures significantly dragged down disbursements. Overall, muted operational quarter and weak top-line performance made for a sluggish quarter despite the beat on PAT

Fist Cut: Q1FY2027

Actual Vs Estimates

Key Metrics

Asset Quality Detail

First cut: Ratnamani Metals & Tubes Q1FY2027 results:

-        Company’s consolidated net profit declines 37.67% in the June 2026 quarter. Net profit of Ratnamani Metals & Tubes declined 37.67% to Rs 82.16 crore in the quarter ended June 2026 as against Rs 131.82 crore during the previous quarter ended June 2025.

-        The core Steel Tubes segment was hit hard by Middle East shipping delays and slow domestic water projects, with sales falling 27.7% YoY to ₹767.81 Cr. Its operating profit margin collapsed from 16.50% to just 7.62%

-        Ratnamani completed the acquisition of a 75% stake in Ratnamani Middle East Company LLC in Saudi Arabia for SAR 1,500,000 on June 23, 2026. This localisation strategy is designed to bypass future GCC import duties and tap directly into Saudi Arabia's massive energy capex cycle, with trials targeted by March 2027.

-        The core Steel Tubes and Pipes segment was the primary drag on the quarter, with sales declining 27.7% YoY to ₹767.81 Cr and margins collapsing from 16.50% to 7.62%. This operational slowdown was driven by a temporary capacity shift between Odisha and Kutch, reduced demand for domestic water projects, and Middle East shipping disruptions.

-        View: Ratnamani Metals’ headline numbers show a 15.66% decline in revenue and a 14.18% drop in operating profit. But those numbers hide a massive structural shift inside the business. We will review our estimates and send a detailed note. Currently, we have a buy rating on the stock.

First Cut: Affle 3i Ltd: Results beat across all metrics

• Revenue grew 3.1% q-o-q (+20.4% y-o-y) to y-o-y 747 Cr, driven by broad-based growth across India, Emerging and Developed Markets
• Converted Users grew 3.0% q-o-q (+15.8% y-o-y) to 123.9 million.
• Average cost per converted users (CPCU) grew by 0.3% q-o-q (+3.8% y-o-y) to 60.2
• EBITDA surged by 4.0% q-o-q (+20% y-o-y) to Rs 168 crore with margins increasing to 18bps q-o-q (down 7bps y-o-y) to 22.4%.
• PAT increased to Rs 128 crore, up 7.5% q-o-q (21.7% y-o-y).
• PAT margin stood 69bps q-o-q (19bps y-o-y) to 17.2%.

Stock Update: Dee Development Ltd Q4FY26 results update – Debt reduction plans

Rating: Buy    Reco Price: Rs 650    Price Target: Rs 740

• Revenue grew 32% led by execution of oil & gas orders. Margins improved by 87 bps to 16.9% led by a favorable product mix.
• Order book is strong at Rs. 2,428 crore, while Q1 order inflows stood at Rs 700 crore.
• Management has reiterated growth guidance at Rs 1,500 crore (bare minimum) with margins of >19% and order inflows of Rs. 2000 crore.
• We expect company to deliver a strong revenue/PAT CAGR growth of 27%/58% respectively over FY26-28E. At CMP, the stock trades at a P/E of 35x/24x its FY2027E/FY2028E EPS. We remain positive and assign a PT of Rs. 720.

Valuation                                                                                                          Rs Crore

Stock Update: Cummins India Stock update – Power Biz driving demand

Rating: Buy     Reco Price: Rs 5,390       Price Target: Rs 6,300

• Q1 numbers were a mixed bag as revenue beat estimates but margins disappointed. Revenue grew 18% y-o-y led by a strong show in the powergen (35% yoy).
• Operating profits remained flat and margins declined 346 bps to 18%. Higher cost due to West Asia war crisis led to margins decline. Reported PAT grew marginally by 4% to Rs 519 crore.
• Management is highly optimistic on the domestic business led by demand for data centers, supported by a recovery in capex cycle.
• We expect a 17%/16% CAGR in revenue/PAT (for FY26-28E) as the business benefits from data centers, healthcare, infrastructure, and real estate segments.  We maintain a Buy rating with a PT of Rs 6,300.

Valuation (Consolidated)                                                           (Rs. crore)

OTHER NEWS

Hindalco: Headline earnings conceal a much stronger core. Hindalco recorded a net profit of ₹7,013 Cr, up 75.15% year on year, despite a significant ₹2,299 Cr loss from the Oswego plant fire. Revenue from Operations came at Rs. 84825 Cr (8.6% QoQ, 32.1% YoY) vs expectation of Rs. 82512.9 Cr, QoQ Rs. 78133 Cr, YoY Rs. 64232 Cr. EBIDTA came at Rs. 13932 Cr (39.1% QoQ, 76.2% YoY) vs expectation of Rs. 11158.5 Cr, QoQ Rs. 10018 Cr, YoY Rs. 7906 Cr. EBITDA Margin came at 16.4% vs expectation of 13.5%, QoQ 12.8%, YoY 12.3%

Vedanta Aluminium: Subsidiary BALCO declared preferred bidder for Karlapat Bauxite Block in Odisha, with estimated reserves of around 248 million tonnes. Quarterly result revealed a structural transformation that headline numbers do not fully capture. Following its demerger, the company has emerged as a pure-play aluminium giant with a clean standalone balance sheet, with standalone net worth surging to ₹33,046.0 Cr from just ₹2,830.0 Cr last year. The acquisition of a 51% stake in BALCO for ₹22,180.0 Cr was structured entirely through Compulsorily Convertible Debentures, preserving immediate liquidity while consolidating high-margin smelting capacity.

Deccan Gold: Q1 FY27 Net Profit stood at Rs. 1.1 crore vs loss Rs. 1.5 crore YoY. Revenue stood at Rs. 11.4 crore vs Rs. 3.0 crore YoY. Deccan Gold Mines is presenting a classic pre-revenue mining tale in which the headline metrics conceal the true operational turning point. In Q1 FY2027, revenue was only ₹0.602 Cr and operational losses were -₹11.628 Cr. However, the situation changed immediately before the announcement.

Godawari Power and Ispat: Company reported Q1 FY27 consolidated net profit of Rs. 221 crore against Rs. 217 crore YoY. Revenue stood at Rs. 1,750 crore against Rs. 1,320 crore YoY.

Akums Drugs & Pharma posted a 56% YoY increase in consolidated net profit to ₹1,009.78 million for Q1FY27, with revenue growing 14% to ₹11,666.29 million. The growth was primarily driven by the CDMO segment, which saw an 18% revenue increase, while the API segment losses were curtailed. The company also announced the acquisition of Oriflame India’s manufacturing business for ₹560.00 million to expand its skincare and cosmetics capabilities.

Anant Raj Limited: Anant Raj reported a strong Q1 FY27 performance, with net profit rising 19% YoY to Rs. 150 crore and revenue increasing 7% YoY to Rs. 631 crore. EBITDA grew 22% YoY to Rs. 183 crore, with the EBITDA margin expanding to 29.1% from 25.4%. During the quarter, the company incorporated Anant Raj Cloud Singapore Pte. Ltd. to market data centre, cloud and AI services globally, and increased its stake in Romano Projects Pvt. Ltd. to 100%. Separately, the board approved the demerger of its data centre and cloud business into Ashok Cloud Pvt. Ltd., creating two independently listed entities focused on real estate and digital infrastructure, respectively.