May 22, 2026

13:41pm          

INVESTMENT CALL

First cut: Info Edge Q4FY2026 results – Results exceed expectations

·         Revenues for Q4FY26 grew by 5.3% q-o-q to Rs 805 crore, exceeding our estimates of Rs 777 crore. The growth was backed by higher-than-expected 99acres for real estate at Rs 143.7 crore, up 21.2% q-o-q along with steady growth in Naukri with revenue up 1.1% at Rs 581.3 crore.

·         EBITDA grew 7.7% q-o-q to Rs 350 crore, with EBITDA margin at 43.4% up 98bps q-o-q. The sequential improvement in margins is largely attributed to reduced employee costs.

·         EBIT grew 8.4% q-o-q to Rs 328 crore, resulting in EBIT margin stood at 40.7%, up 115bps q-o-q (up 628bps y-o-y).

·         PAT before exceptional items remained flat (down 0.8% q-o-q) to Rs 293 crore.

·         View: InfoEdge Q4FY26 have outperformed our estimates on the bottom line. We shall review our earnings estimates and come out with a detailed note post the conference call. Currently we have a BUY rating on the stock with a PT of 1,400.

Results (consolidated)                                                                                             Rs crore

Actual vs. estimates                                                                                         Rs. Crore

TOP NEWS

Maruti Suzuki has announced a price increase across its portfolio from June 2026. The company cited rising input costs and ongoing inflationary pressures as the reason behind the hike. While the exact revision will differ depending upon the model, prices are set to go up by Rs 30,000.

Dalmia Bharat : The company announced acquisition of a 5.2 MnTPA cement capacity from Jaiprakash Associates Limited (acquired by Adani Group under IBC) at an enterprise value of ₹2,850 crore. The assets include plants in Madhya Pradesh and Uttar Pradesh, along with clinker capacity, thermal power assets, and railway sidings. Post acquisition, Dalmia Bharat’s total cement capacity will increase to 54.7 MnTPA and further expand to 66.7 MnTPA by FY28 with ongoing projects. The acquisition strengthens the company’s presence in Central India and is expected to improve market access, scale, and profitability.

Prestige Estates Projects : The company reported a strong FY26 financial performance with revenue rising 71% YoY to a record ₹13,196 crore. EBITDA increased 43% YoY to ₹4,219 crore, while PAT more than doubled, rising 113% YoY to ₹1,312 crore. Q4FY26 performance was also robust, with revenue surging 161% YoY to ₹4,144 crore and PAT jumping nearly 6x YoY to ₹297 crore. Earlier, the company had reported record operational performance for FY26 with highest-ever sales of ₹30,025 crore and collections of ₹18,515 crore, reflecting strong demand and execution momentum across key markets.

Navin Fluorine, SRF : Trump eases refrigerant rule in a bid to address surging grocery costs. Positive

Ashoka Buildcon : The company reported a mixed FY26 performance. Revenue declined 17% YoY to ₹5,952 crore, while EBITDA fell 6% YoY to ₹636 crore. However, EBITDA margins improved to 10.7% from 9.4% last year. PAT increased sharply by 63% YoY to ₹320 crore. For Q4FY26, revenue declined 10% YoY to ₹1,819 crore, while PAT fell 18% YoY to ₹49 crore. The company’s order book remained healthy at ₹15,312 crore, led by roads EPC, HAM, and power T&D projects. Standalone debt stood at ₹1,127 crore as of March-end FY26. Negative 

Varun Beverages (VBL): The company and PepsiCo Inc. have revised Exclusive Bottling Agreement for India extending the term to April 2049 from April 2039 earlier. Moreover, the revised agreement has removed restriction on non-PepsiCo activities in India, thereby providing flexibility to VBL to explore other consumer categories. Positive

Life Insurance Corporation of India: The insurer reported a 23% year-on-year rise in consolidated net profit for the March quarter of FY26, helped by improved operational metrics and stronger business growth. Net profit for the quarter came in at Rs 23,467 crore compared with Rs 19,039 crore in the corresponding period last year. The insurer also announced a dividend of Rs 10 per share for shareholders. The company’s solvency ratio — a key measure of an insurer’s financial strength — improved to 2.35% during the quarter, up from 2.11% a year ago and 2.19% in the previous quarter. However, LIC’s 13th-month persistency ratio stood at 67.77%, lower than 68.62% in the year-ago period and 69.36% in the December quarter. Assets under management (AUM) rose 5.1% year-on-year to Rs 57.3 lakh crore, while the value of new business (VNB) surged 41.63% to Rs 14,179 crore during the quarter. LIC net VNB margin increasing to 21.2% for the full year up 360 basis point expansion.

MACRO WRAP

Iran signalled that the latest US proposal has “narrowed gaps somewhat,” but key disagreements persist on its nuclear program and reopening of the Strait of Hormuz. Mixed messaging from both sides has kept uncertainty elevated, with recent escalation concerns weighing on market sentiment. Traders remain cautious on the timeline for normalization of energy flows through the strait. Oil prices reflected the uncertainty, with July WTI falling nearly $2 to $96.4, while Brent edged slightly lower to just under $105. The lack of clarity continues to drive volatility across crude markets. Sentimentally positive for Crude oil.

US housing starts fell 2.8% in April, though most of the decline was offset by an upward revision to March, from 10.8% to 12.0%. Building permits surprised to the upside in April, gaining 5.8% against a 2.5% expectation, though this result only partly reverses March’s 11.5% decline. US initial jobless claims were essentially unchanged at 209k last week, a low level versus history, signalling stable conditions in the US

The Philadelphia Fed business outlook index dropped from 26.7 in April to -0.4 in May, modestly below the 5-year average of 4.0. The Kansas City manufacturing index edged down from 10 to 8 in April. Meanwhile, the US S&P Global PMI suggested more resilience of the economy to the energy price shock. The manufacturing PMI strengthened from 54.5 to 55.3 while the service PMI was broadly unchanged at 50.9.

Euro area’s S&P Global manufacturing PMI softened from 52.2 to 51.4 in April, and the services PMI from 47.6 to 46.4. Having fallen sharply in the prior month, the euro area consumer confidence improved at the margin, from -20.6 to -19.0, remaining below the 5-year average of -14.2.

The UK S&P Global PMI manufacturing PMI was unchanged in April at 53.7. However, the services PMI fell sharply from 52.7 to 47.9, suggesting a sharp loss of momentum last month.

Markets continue to assess the prospects for further rate hikes by Asian central banks, either due to inflationary concerns or to stem FX depreciation pressures, The DJIA, the S&P500, and the Nasdaq Composite Index rose 0.6%, 0.2%, and 0.1% respectively. The DJIA closed at a record high. The Eurostoxx 50 fell 0.3%. The Dollar Index rose 0.2% to 99.26. EUR- USD was unchanged at around 1.1620. The US 2Y yield rose 3bp to 4.08% while the 10Y yield fell 2bp to 4.57%. The US 30Y yield fell 3bp to 5.09%. The German 10Y yield was unchanged at 3.10%. The UK 10Y yield fell 2bp to 4.97%. Gold was unchanged at USD4,543.

PREVIEW

INVESTMENT CALL

Stock Update: Astral Ltd – Bright times ahead

Reco: BUY                CMP: Rs. 1,443             Target: 1,850

• Revenue/EBITDA/PAT missed expectations by 12.3%/16.2%/23.1%, on weak demand.
• CPVC backward integration is expected to begin trials around December, with benefits likely flowing in by FY28, which will boost margins.
• Management guided for a 10-15% growth in piping volumes/ 20-25% value growth and margins of 16-18%. Similarly, Adhesive India eyes a 15-20% revenue growth, while a 25-30% growth is eyed in paints, with positive EBITDA expected.
• We maintain a Buy with an unchanged PT of Rs. 1,852, on rising polymer prices and improving demand outlook.

First cut: Va Tech Wabag Q4FY2026 (Consolidated) results – Healthy quarter

·         Company reported a revenue of 1,414 crore, up 22.3% y-o-y. It was higher than our estimates.

·         Operating profit of Rs. 157 crore crore was up 11.8% y-o-y.

·         Adjusted Net profit of Rs. 128 crore rose 28.6% y-o-y and was almost inline with our estimates.

·         The international business is now operating at a 29% profit margin, nearly triple the 10% margin seen in the India segment. This confirms that the company is successfully pivoting away from low-margin domestic municipal bidding toward complex, multilaterally-funded global projects. Looking ahead, the entry into the Bio-CNG space with the Ghaziabad plant and the focus on Ultra-Pure Water for the semiconductor industry are the catalysts to watch. We have a Buy rating on the stock and will come with a note soon.

Results (Consolidated)                                                    Rs. crore

Stock update: Jubilant Foodworks Q4FY26 (Consolidated) result update – Muted Q4; near-term outlook bleak

Reco: Buy                  Reco. Price: Rs. 436                 Price Target: Rs. 545

• Domino’s India’s like-for-like (LFL) growth was muted owing to a high base, lower average bill value, weaker dine-in sales and transient concerns.
• In Q1FY27, LFL growth likely to be better, while margins to stay stressed. The management has maintained a long-term guidance of 5-7% annual LFL growth and margin expansion of 200 bps over the next two years.
• JFL plans to open ~230-250 restaurants in FY27, focusing on smaller delivery carry-out stores in Metros.
• Stock trades at 15x/13x its FY27E/FY28E consolidated EV/EBIDTA, respectively. We maintain a Buy rating with a revised PT of Rs. 545.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

First cut: ITC Q4FY26 (Standalone) results – Strong FMCG biz performance; beat on margin front

As a result of significant changes in the taxation structure for cigarettes from 1st February 2026, gross revenue and excise duties are not comparable with previous periods.

·       ITC’s standalone net revenues (net of excise) fell 6.9% y-o-y to Rs. 16,050 crore. Non-cigarette FMCG business grew by 14.7% y-o-y, Paper, paperboard & packaging (PPP) business registered revenue growth of 1.8%, while Agri business revenue declined 15.7% y-o-y driven by gains in FMCG – others and Paper business.

·       Gross margin and OPM rose by 931 bps and 533 bps y-o-y to 64% and 40%, respectively, much higher than our expectation of 34.1%.

·       Operating profit grew by 7.3% y-o-y to Rs. 6,426 crore. Lower other income and higher interest cost to 4.9% y-o-y growth in the adjusted PAT to Rs. 5,113 crore, slightly beating our expectation of Rs. 5,048 crore. The board has declared a final dividend of Rs. 8 per share for FY26.

·       View: We shall review our estimates and come out with a detailed note soon. Currently we have a Buy rating on the stock.

Results (Standalone)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

First cut: Emami Q4FY26 (Consolidated) results – Soft Q4 amid seasonal weakness and geopolitical disruptions

·         Consolidated revenue fell 4% y-o-y to Rs. 925 crore, with domestic business declining 3% y-o-y (volumes fell 7% y-o-y) owing to unfavourable seasonal conditions, while geopolitical disruptions in West Asia led to 5% y-o-y decline in international business. Excluding the summer portfolio, the domestic business grew 11% y-o-y (volumes grew 7% y-o-y). Revenue missed our expectation of Rs. 953 crore.

·       Gross margin rose 255 bps y-o-y to 68.4% y-o-y aided by disciplined cost management, calibrated pricing actions and operational efficiencies, while OPM contracted 260 bps y-o-y to 20.2% due to higher ad-spends and negative operating leverage. OPM lagged our expectation of 21.5%.

·       Operating profit decreased by 14.9% y-o-y to Rs. 187 crore and adjusted PAT fell by 12% y-o-y to Rs. 158 crore, slightly missing our expectation of Rs.164 crore.

·       View: We shall review our earnings estimates and come out with a detailed note soon. Currently we have a Buy rating on the stock.

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

First cut: Welspun Corp Q4FY2026     

-       Revenue for the fourth quarter increased by 9.9% to Rs 4,312.56 crore from Rs 3,925 crore in Q4FY25 (YoY), driven by strong sales volume growth across key segments i.e. Line Pipes (India + USA) up 4% y-o-y to 255 KMT, DI Pipes up 38% to 105 KMT, and Stainless-Steel Bars up 28% to 6.6 KMT.

-       EBITDA for Q4FY26 came in at Rs 539 crore (up 7% y-o-y), with full year FY26 EBITDA at Rs 2,371 crore, comfortably surpassing the guidance of Rs 2,200 crore. EBITDA margin expanded to 14.0% for FY26 versus 13.1% in FY25.

-       But the apparent decline in adjusted PAT of 46.8% in Q4 and 15% for the full year is entirely attributable to one-time exceptional gains in the prior year.

-       View: Welspun Corp reported average performance for FY26, comfortably below its own expectations, but made considerable investments in capacity addition and balance sheet strengthening. The company is well-positioned for rapid growth in FY27 and beyond with a record order book, improving cash generation, expanding ROCE and diverse global demand tailwinds. The FY27 projection of Rs 2,850 crore EBITDA is indicative of ongoing margin discipline. “We will review our estimates and will come out with a detailed note. We currently have a bullish view on the stock.

Results (consolidated)                                                                                                  Rs crore

Actual vs estimates                                                   Rs. Crore

OTHER NEWS

Indian Overseas Bank: The Board has approved raising funds of up to Rs 5,000 crore through an FPO, rights issue, QIP, or preferential issue in one or more tranches. Further, the Board also approved the issuance of 10 crore shares to employees and the issue of BASEL III-compliant Tier II bonds up to a maximum extent of Rs 1,000 crore, with or without a green shoe option.

Fino Payments Bank: The Board of the bank is of the view that Rishi Gupta is ‘fit and proper’ to continue as the MD & CEO of the bank. However, Rishi Gupta has opted for voluntary early retirement from the position of MD & CEO, effective May 21. Meanwhile, the Board approved the extension of Ketan Merchant’s tenure as Interim Chief Executive Officer of the bank, subject to approval from the Reserve Bank of India, for carrying out the duties of MD & CEO for three months effective May 27.