February 20, 2026

TOP NEWS

ABB India: Revenue rose 5.7% year-on-year to Rs 3,557 crore, however net profit declined 18% to Rs 433 crore missing the street estimate. EBITDA fell 17% to Rs 545.6 crore . Operating margin contracted sharply to 15.3% from 19.5%. The company said profitability was impacted by material-cost inflation and higher labour expenses, including costs linked to new labour codes. Despite margin pressures, order momentum strengthened significantly. Fourth-quarter orders surged 52%, marking the highest Q4 order intake in five years, supported by broad-based demand and the timing of certain large orders.

KEI Industries: In the latest interview management identified a massive Rs 25,000 Cr incremental opportunity for the Indian cable industry as the country builds out 10 GW of data center capacity by 2030. Every 1 GW of capacity needs Rs 3,500-4,000 Cr in cables. KEI, with its ~12% market share, is targeting a Rs 3,000 Cr slice of this pie. Management is also planning an additional Rs 2,000 Cr investment over the next 3-4 years to stay ahead of the digital infrastructure curve. KEI is evolving as specialized partner for the AI and Cloud era. For every dollar spent on high-tech GPUs, a significant portion must go into the copper and high-voltage cables KEI manufactures.

Zydus Lifesciences: The company received a major win as its Unit 9 facility in Ahmedabad successfully passed a US FDA inspection for injectable medical devices. The inspection, which concluded on February 19, 2026, had zero observations, signalling strong compliance. This is a significant positive for the company's injectable business, potentially paving the way for smoother market access and approvals for its products manufactured at this site. This development comes after the company has been working to bolster its regulatory standing. Positive

Federal Bank: The bank is due to receive a tax refund of ₹686 crore after the successful resolution of a long-standing tax matter, it announced Thursday. The refund is related to the assessment years - AY 2011-12, AY 2012-13 and AY 2013-14, including interest. Positive

Paras Defence: Paras Defence acquired 49% equity stake in Himanshi Thermal Solutions on February 19, 2026. Himanshi Thermal operates in aerospace and defence engineering, specializing in fabricated metal products and liquid cold plates for space applications. - The company also provides vacuum heat treatment services. - Himanshi Thermal reported nil turnover in FY 24-25 and a PBT of Rs. -8,88,700, with losses over the past three years.

MACRO WRAP

• The main theme overnight was risk-off. US equities fell as oil prices rose on lingering geopolitical risks surrounding Iran.
• The DJIA, the S&P500, and the Nasdaq Composite Index fell 0.5%, 0.3%, and 0.3% respectively. The Eurostoxx 50 fell 0.7%. The Dollar Index edged up 0.2% to 97.93. EUR-USD was a touch lower at around 1.1770.
• The US 2Y yield was unchanged at 3.46% and the 10Y yield dipped 1.5bp to 4.07%. The German 10Y yield was unchanged at 2.74%. The UK 10Y yield edged down 1bp to 4.37%.
• Brent crude oil prices rose 1.9% to USD71.66. Gold rose 0.4% to USD4,996. Silver rose 1.7% to USD78.51.
• Oil steadied near a six-month high with President Donald Trump saying Iran had 15 days at most to strike a deal over its nuclear program, as the US assembled a vast array of forces in the Middle East. West Texas Intermediate traded near $67 a barrel, after rising almost 7% over the previous two sessions, while Brent closed near $72.  If any conflict with Iran escalates into transit disruptions of the Strait of Hormuz, oil prices would likely rise further
• Brent crude call options of $100 June contract traded on Thursday. PCR ration remained tilted towards calls this year due to geo-political risk. Sentimentally negative for broader markets and OMC’s.
• US pending home sales fell 0.8% in January 2026, after a 7.4% drop in December, missing the expected 1.3% increase. Sales decreased in the Northeast and South but rose in the Midwest and West. Year-over-year, sales were down 0.4%. Economist Lawrence Yun emphasized the need for more housing supply to avert higher prices.
• US initial jobless claims fell 23,000 to 206,000 in mid-February, below the expected 225,000. Continuing claims grew 17,000 to 1,869,000, indicating a stable labor market. Federal employee claims rose by 80 to 695 during the government shutdown.
• The US trade deficit grew to $70.3 billion in December 2025, above the $55.5 billion forecast. Exports fell by 1.7%, and imports rose by 3.6%. The 2025 trade deficit was $901.5 billion, slightly less than 2024, with reduced deficits with the EU and China but expanded with Mexico, Vietnam, and Taiwan.
• On the data front, we get the PCE deflator and the advance Q4 GDP today.

INVESTMENT CALL

Stock update: Jyothy Labs Q3FY26 (Consolidated) result update – Margins drag Q3; outlook cautious

Reco: Buy                  Reco. Price: Rs. 241                  Price Target: Rs. 315

• JLL’s Q3FY26 numbers were muted, with revenue growth at 5% y-o-y, OPM down 149 bps y-o-y to 15% (versus 16.3% expected) and PAT lower 7% y-o-y.
• Management eyes volume-led double-digit growth trajectory in the near term, with sustained brand investments and innovation driving growth.
• Near-term margin pressure to persist, especially in dishwashing and liquid detergents, on rising input costs and reduced MRPs. Greater focus on premium product sales and scale-up of new launches would ease margin pressures.
• Stock has corrected 22% over the past three months and trades at 25x/23x/20x its FY26E/FY27E/FY28E EPS, respectively. We maintain Buy with a revised PT of Rs. 315.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

Stock update: Indian Hotels Company Q3FY26 (Consolidated) result update – Steady Q3; Outlook positive

Reco: Buy                  Reco. Price: Rs. 672                  Price Target: Rs. 891

• IHCL’s Q3FY26 consolidated revenues grew by 12% y-o-y, EBITDA margin stood flat y-o-y at 37.9% and adjusted PAT grew by 7% y-o-y.
• Management expects to sustain double-digit revenue growth in the hotels segment in FY26 and FY27, with 12-14% growth in Q4 supported by strong tailwinds from upcoming events.
• About 89 hotels with ~3,700 rooms were operationalised in Q3. Currently IHCL has 361 operational hotels and 256 in the pipeline, taking total operational keys to ~32,300 and ~30,200 under development.
• We maintain a Buy with an unchanged PT of Rs. 891. Stock trades at 25x/21x/18x its FY26E/FY27E/FY28E EV/EBITDA, respectively.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

Sector Update:  Cement– Weak Q3 pricing impacted realizations, while volumes remained good.

• Cement stocks in our coverage clocked revenue growth of 16.6% y-o-y, as volumes grew 18% y-o-y, while realisations fell by 0.2% y-o-y. UltraTech realisation fell highest by 4.1% y-o-y.
• EBITDA per tonne fell 1.4% y-o-y though per tonne costs had also fallen, as lower realisations amid price corrections in certain regions offset the benefits of cost efficiencies.
• Cement prices have started rising from January alongside a pick-up in demand. Industry demand is expected to grow 7–8% in FY26, with most leading companies likely to outperform the industry growth rate.
• Preferred Pick - Ultratech Cement, Grasim Industries

OTHER NEWS

Power Ministry forms panel to monitor PFC-REC merger progress. The Ministry of Power on Thursday constituted a high level committee to monitor progress on the merger of  the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). It also set up a three-member working group to examine modalities for the merger. The working group will be headed by the Director (Distribution) of the Ministry of Power with executive directors of both the entities as members. It has been tasked with studying and making recommendations on personnel and technology integration, corporate and functional restructuring, harmonisation of stakeholder interests, and any other matters relevant to the merger process. The high-level committee will be convened by the Joint Secretary (Distribution) in the ministry, with the Chairman and MDs of PFC and REC as members. Positive for PFC

Karur Vysya Bank: The bank has revised its one-year and six-month MCLR (Marginal Cost of Funds-Based Lending Rates) from 9.20 percent to 9.10 percent, effective February 22. The one-month and three-month MCLR have been revised to 8.95 percent from 9.05 percent.

ICICI Prudential Life Insurance: The company has received an appellate order upholding a tax demand of Rs. 984 crore, the insurance informed in an exchange filing. The Commissioner of CGST and Central Excise (Appeals-III), Mumbai, dismissed its appeal at 9:15 AM on Thursday, thereby sustaining the tax demand originally raised under Form GST DRC-07. The demand pertains to the reversal of input tax credit under the GST law for the period from July 2017 to July 2022. Negative.