November 04, 2025

TOP NEWS

City Union Bank : Strong Results Q2FY26 : The Bank reported a net profit of Rs. 329 crore for Q2FY26, a 15 per cent growth from Rs. 285 crore in Q2FY25. Total income for the quarter stood at Rs. 1,912 crore, up 15 per cent from the same quarter last year. Interest income at Rs. 1,653 crore saw a 15 per cent growth. Profitability growth came from increased lending even as asset quality showed improvements. It was a good quarter overall, both on the growth and asset quality front.  Asset quality improved year-on-year as Gross NPA stood at 2.42 per cent in Q2FY26, compared to 3.54 per cent in same quarter last year. Net NPA was at 0.90 per cent, compared to 1.62 per cent in the year-ago period. Positive

Cipla : The company has acquired Inzpera Healthscience for approximately Rs 111 crore. This strategic move combines Inzpera's paediatric products with Cipla's distribution strength. The deal aims to boost growth and scalability in the pharmaceutical and wellness sector. Inzpera, founded in 2016, focuses on differentiated paediatric offerings. The acquisition marks a significant step for Cipla in expanding its market presence. Positive

Bharti Airtel Reports Strong Q2 Performance with 89% YoY Surge in Net Profit: Telecom major Bharti Airtel delivered a robust financial performance for the quarter ended September 2025 (Q2FY26), reporting an 89% year-on-year (YoY) increase in consolidated net profit to ₹6,792 crore, compared to ₹3,593 crore in the same period last year. The profit after tax (PAT) is attributable to the owners of the parent company.The company’s revenue from operations grew 26% YoY to ₹52,145 crore, as against ₹41,473 crore in Q2FY25. Average Revenue Per User (ARPU) improved to ₹256, up from ₹233 in the previous year’s quarter. Airtel’s total customer base stood at 624 million across 15 countries.The company’s EBITDA rose 36% YoY to ₹29,919 crore, while the EBITDA margin expanded to 57.4%. Positive

RITES: The company has received a Letter of Award worth Rs. 372.68 crore from the National Institute of Mental Health & Neuro Sciences (NIMHANS) for providing Project Management Consultancy (PMC) services for the construction of a new Outpatient Department (OPD) building at the NIMHANS Bangalore campus. The project will be executed on a turnkey basis within 36 months. Positive

Rain Industries: Northern Graphite Corporation and Rain Carbon Canada Inc. have received funding support of up to C$860,000 (€530,000) under the Canada–Germany Collaborative Industrial R&D Program for a 24-month, C$2.2 million project to develop sustainable, battery-grade anode materials. The initiative aims to upcycle low-value graphite by-products into high-performance anode material, reducing waste and mining needs. Supported by NRC IRAP (Canada) and BMWK’s ZIM program (Germany), the collaboration will combine Northern’s graphite processing expertise with Rain’s advanced carbon coating technology (LIONCOAT®) to create a competitive, low-carbon Western supply chain for the energy storage market. Positive

3M India: Q2FY26 results: Profit zooms 43% to Rs 191.3 crore. Revenue increases 14% to Rs 1,266.5 crore Vs Rs 1,110.8 crore. Positive

EARNINGS PREVIEW

STRONG RESULTS

Hitachi Energy: Revenue from operations jumped 23.3 % to  Rs 1,915 crore. EBITDA rose 130 % to ₹291.6 crore, reflecting a margin of 15.2 %. profit after tax (PAT) soaring more than fourfold yoy to Rs 264.4 crore,  driven by higher revenues, margins expansion and better product mix.  Order inflow during the quarter grew 14% to Rs 2217 crore. Current order book stands at Rs 29412 crore.  

MACRO WRAP

·         The DJIA fell 0.5%, the S&P500 rose 0.2%, and the Nasdaq Composite Index rose 0.5%. The Eurostoxx 50 rose 0.3%. The Dollar Index edged up 0.1% to 99.87. EUR-USD fell 20 pips to 1.1520. The US 2Y yield rose 3bp to 3.60% and the 10Y yield also gained 3bp to 4.11%. The German 10Y yield rose 3bp to 2.67%. The UK 10Y yield gained 2.5bp to 4.44%. Brent crude oil prices fell 0.4% to USD64.84. OPEC+ agreed over the weekend to raise output by 137,000 barrels per day in December and to pause increases in the first quarter of next year. Gold was a tad lower to USD4,001.

·         The October ISM US Manufacturing PMI dropped to 48.7, below expectations, signalling eight months of contraction. Production, orders, inventories, and employment declined. Price pressures eased, but delivery slowed. Only two industries, Food, Beverage & Tobacco Products, and Transportation Equipment, expanded. Negative for USD and industrial commodities.

·         Germany and Eurozone manufacturing PMI stayed at 49.6 and 50.0 respectively in Oct, unchanged from its preliminary read., On the other hand, UK and US PMI improved to 49.7 (from 49.6) and 52.5 (from 52.2) respectively.

·         Datawatch: We have US economic data slated for release by the Census Bureau today but likely to get postponed due to the US government shutdown. These data include trade balance, JOLTS job openings, factory orders, and durable goods orders.

INVESTMENT CALLS

First cut: Titan Company Q2FY26 (Consolidated) results – Early Festive Cheer Drives Strong Q2

• Titan’s consolidated revenue (excluding bullion and digi–gold sales) grew by 21.3% y-o-y to Rs. 16,346 crore, against our expectation of Rs. 16,458 crore. Revenue of the domestic jewellery (ex-bullion), Caratlane, Watches, Eyecare and Emerging businesses grew by 18%, 32%, 13%, 8% and 34% y-o-y, respectively. International business grew by 84% y-o-y. Titan’s subsidiary, TEAL registered revenue growth of 1.1x y-o-y.
• Consolidated gross margin and EBITDA margin fell by 127 bps and 49 bps y-o-y to 21.4% and 10.0%, respectively. EBITDA margin missed our expectation of 10.9%.
• EBITDA grew by 22.9% y-o-y to Rs. 1,875 crore and adjusted PAT grew by 21.9% y-o-y to Rs. 1,120 crore. PAT came in line with our expectation of Rs. 1,115 crore.
• View: We shall review our estimates and come out with a detailed note post the conference call. Currently we have a Buy rating on the stock.

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

Stock update: Bata India (Standalone) result update – Weak Q2

Reco: Hold                  Reco. Price: Rs. 1,071                 Price Target: Rs. 1,140

·         Bata India (Bata) registered yet another quarter of weak performance with revenue falling 4% y-o-y; EBIDTA margins down by 282 bps y-o-y to 18.1% and adjusted PAT falling by 62% y-o-y.

·         Deferment of purchases due to GST 2.0 implementation and disruption in one of the largest warehouses in July hit revenue growth, while higher markdowns, rising marketing investments and negative operating leverage led to lower margins.

·         Bata is cautiously optimistic on a demand recovery in H2FY26, supported by its robust brand equity, extensive retail network, and a steady emphasis on cost optimisation and operational efficiency.

·         Stock trades at 61x/54x/45x its FY26E/FY27E/FY28E EPS, respectively. We maintain Hold with a revised PT of Rs. 1,140.

Valuation (Standalone)                                                   Rs. crore

Results (Standalone)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

Stock update: Dabur India (Consolidated) result update – GST transition and Nepal unrest hit Q2; eyeing better H2

Reco: Buy                  Reco. Price: Rs. 488                 Price Target: Rs. 560

·         Dabur India’s (Dabur’s) Q2FY26 performance was impacted by GST transition and unrest in Nepal, with consolidated revenue and adjusted PAT rising 5.4% and 6.6% y-o-y, respectively; OPM rose slightly by 18 bps y-o-y to 18.4%.

·         Management guided for mid-high single-digit revenue growth & low-mid single-digit volume growth in H2FY26; EBITDA growth to be better than topline growth in FY26.

·         Company has announced the launch of Dabur Ventures, a Rs. 500 crore investment platform (funded via internal accruals), which would invest in acquiring new-age digital-first consumer businesses.

·         Stock trades at 46x/40x/36x its FY26E/FY27E/FY28E earnings, respectively. We maintain a Buy rating with a revised PT of Rs. 560.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

Stock update: ITC (Standalone) result update – Core biz healthy; agri mars Q3

Reco: Buy                  Reco. Price: Rs. 420                 Price Target: Rs. 505

·         ITC’s Q2FY26 standalone revenue fell 3.4% y-o-y largely due to a drag in the agri business, while core business (cigarette & FMCG others) delivered a healthy performance. OPM rose 186 bps y-o-y to 34.7% and adjusted PAT grew 2.8% y-o-y.

·         Cigarette business reported 6.7% y-o-y volume-led gross revenue growth, FMCG business revenue grew 6.9% y-o-y, agri business revenue fell 31% y-o-y on a high base and subdued exports, while PPP business’ revenue grew by 5% y-o-y.

·         PBIT margin for the cigarette/FMCG/PPP businesses fell by 91/54/286 bps y-o-y to 71.2%/7.4%/8.6%, respectively, while agri business posted 368 bps y-o-y rise in margin to 11.5%.

·         Stock continues to trade at discounted valuations of 24x/22x/20x its FY26E/FY27E/FY28E EPS, respectively. We maintain a Buy with an unchanged PT of Rs. 505.

Valuation (Standalone)                                                   Rs. crore

Results (Standalone)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

Viewpoint: DLF– Pre-sales robust; Outlook bright.

Viewpoint: Positive         Reco. Price: Rs. 756          Price Target: Rs. 1,010

·         Pre-sales was strong at Rs. 4,332 crore (up 526% y-o-y), driven by the successful launch of The West Park in Mumbai. Collections rose 13% y-o-y to Rs. 2,672 crore, underscoring healthy cash inflows.

·         Consolidated revenues stood at Rs. 1,643 crore (down 17% y-o-y), while EBITDA margins was at 17.3% (down 816 bps y-o-y).

·         Management maintained pre-sales of Rs. 20,000- 22,000 crore for FY26 and expects the exit rental to reach Rs. 6,700 crore by FY26.  It expects collections of Rs. 13,000 -14,000 crore annual run rate going forward.

·         We remain positive and expect an upside of 32%, given strong growth potential in the residential segment and scaling-up of rental portfolio.

  Valuation (Consolidated)                                                                Rs. crore

Viewpoint: Lodha Developers Limited– H2 to drive growth; FY26 outlook intact.

Viewpoint: Positive         Reco. Price: Rs. 1,198          Price Target: Rs. 1,545

·         Pre-sales rose 6.5% y-o-y to Rs. 4,570 crore, on limited launches, while collections grew 13.4% y-o-y to Rs. 3,480 crore. Net debt-to-equity remained comfortable at 0.25x, well below the 0.5x ceiling.

·         One project was added in MMR (GDV Rs. 2,300 crore), taking H1 FY26 GDV additions to Rs. 25,000 crore, already meeting full-year guidance.

·         FY26 targets include pre-sales of Rs. 21,000 crore (+19% y-o-y), embedded EBITDA margin ~33%, OCF Rs. 7,700 crore, price growth of 5-6%, and net debt/equity < 0.5x.

·         We remain Positive, expecting a ~29% upside, backed by a strong launch pipeline, robust cash generation, and structural growth tailwinds in housing demand.

  Valuation (Consolidated)                                 Rs. crore

Stock Update: Kalpataru Projects International Ltd – Bright Prospects ahead

Rating: Buy         Reco Price: Rs. 1,257  Target price:  Rs. 1,570

·         Standalone revenues surged 31% on a rise in T&D (51%), urban infrastructure (65%) and B&F (20%) businesses, but this was offset by a decline in the water segment (5%). Results beat our estimates.

·         Q2FY26 order inflows stood at Rs. 5,052 crore, taking total order book to Rs. 64,682 crore, reflecting strong revenue visibility for three years.

·         Management maintained its guidance for a 25% revenue growth and 5.5% PBT margins and order inflow guidance of Rs 26000-28000 crores.

·         Performance would improve, driven by a robust order book and tender pipeline, improving JV and subsidiary financials, monetisation of non-core assets, and a reduction in promoter’s pledge, which could be key re-rating catalysts. We maintain a Buy with a PT of Rs. 1,570. At CMP, the stock is valued at ~18/~14x FY2026/FY2027E P/E.

Valuation Table  (Consolidated)                                                  Rs. crore

Stock Update: Bharat Electronics Ltd Q2FY26 Results – Strong order prospects buoy growth momentum

Rating: Buy     Reco Price: Rs 422     Price Target: Rs 500

·         Q2FY26 numbers were strong, with revenue growth of 26% meaningfully ahead of our estimates. Margins fell 101 bps to 29.4% as expected. Order book stays robust at Rs 74,453 crore providing a healthy growth visibility.

·         Order inflows stood at Rs 13500 crore; management is confident that order inflow guidance of Rs 27,000 (Ex QRSAM) crore will be easily achieved.

·         Order pipeline over the medium term looks very strong with orders worth more than Rs. 50,000 crore from recently approved AONs of Rs 1.5L crore by Ministry of Defence..

·         Hence, we retain a Buy rating with revised PT of Rs. 500. At CMP, the stock trades at 46x/40x its FY2026/ FY2027 earnings estimates.

Valuation                                                                                                   Rs Crore

Stock update: Dr Reddys Laboratories – New launches hold key; US price erosion a worry

Reco: Hold                  Reco. Price: Rs. 1,196                Price Target: Rs. 1,302

·         Key launches are set to be the next trigger, but growth is currently led by smaller launches and geographical diversification.

·         Non-clearance for Semaglutide in Canada would mar near-term growth prospects, with an approval likely to take another 6-12 months. However, the approval for the injectable is in advanced stages in other countries.

·         Q2FY26 was in line with or estimates with Europe portfolio aiding growth and the US continuing to be affected by price erosion.

We continue to value the stock at 20x on FY27E earnings and retain our HOLD rating with a revised target price of Rs. 1,302.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                         Rs. crore

OTHER NEWS

Zee Media: The Board has approved the appointment of Raktimanu Das as the Chief Executive Officer of the company, effective November 4.