August 04, 2026

>> 1:01

First Cut: Saregama: Margin expansion led by growth across verticals

• Saregama reported strong Q1FY27 with revenue growing 27.5% y-o-y to Rs 264 crore, primarily driven by the Music & Artist Management segment
• The Live Events business also delivered exceptional growth, with revenue increasing 214.1% YoY to Rs 16 crore, supported by the company's multi-format events strategy. However, the Video segment (Films/TV Serials) declined 52.4% YoY to Rs 17 crore as the company continued its strategic shift away from in-house film production
• EBITDA stood at Rs 93 crore, up 68.8% y-o-y led by margin expansion by 866bps y-o-y to 35.4%.
• EBIT grew 84.3% YoY to Rs 70 crore, PBT increased 38.1% YoY to Rs 71 crore, and PAT rose 40.6% YoY to Rs 51.6 crore
• Operationally, the company released over 750 songs across multiple languages, generated 250+ million streams and views, expanded its artist roster by 33 artists to 309, and increased its digital footprint to more than 680 million followers and subscribers. Management highlighted that its integrated entertainment ecosystem across music, artist management, live events, and digital content continues to strengthen monetization and support sustainable long-term growth.

TOP NEWS

War update: US President Donald Trump says talks with Iran are ongoing, but warns that this is the “last chance for them to sign a good document”. Iran denies the negotiations, saying it’s speaking to Oman over the Strait of Hormuz. US Central Command (CENTCOM) says it’s continuing to enforce the blockade against Iran and has redirected 44 commercial vessels transiting the Strait of Hormuz since it reimposed the measure mid-July. Israel continues to pound Lebanon. Oil prices slightly higher at $84/barrel. Asian markets indicate a slow start for the day. Gift nifty remains flattish with 21 point cut on the bourses.

Sambhv Steel's net profit for the first quarter of FY27 was Rs. 56 crore, up from Rs. 34 crore year over year. Revenue was Rs. 732 crore as opposed to Rs. 558 crore year over year. The business paid off ₹390 Cr in debt. This one action reduced quarterly financing expenditures to ₹10.62 Cr, a 33.6% YoY decrease. Consequently, net profit increased 66.2% year over year to ₹56.52 Cr, significantly exceeding the 31.0% growth in revenue. At 12.99%, operating margins were extremely stable, down just 7 basis points year over year. This goes against management's earlier prediction that raw material inflation would cause margins to stabilize to ₹7,500 to ₹8,000 per ton.

GE Shipping: Revenue grew by 67% yoy to Rs 2005 crore a record quarterly high revenues. EBITDA margin expanded 1,321 bps YoY to 66.71%. PAT surged 159.4% YoY to Rs 1,308.84 Cr, exceeding the previous record of Rs 1,044 Cr. Outstanding debt declined 56.9% YoY to Rs 799.48 Cr, with net cash reaching Rs 7,626 Cr. Shipping segment revenue surged 90.2% YoY to Rs 1,890.97 Cr. Offshore segment margin improved sharply from 26.00% to 37.80% QoQ.

LIC: The floor price is at a 10% discount over Monday's closing price of LIC shares of Rs. 424.35 on the BSE. LIC said its trading window will remain closed until August 8, 2026. The government on Monday (August 3) said it will sell up to a 6.5% stake in Life Insurance Corporation of India Ltd (LIC) through an Offer for Sale (OFS) at a floor price of Rs. 382 per share, beginning Tuesday (August 4). The floor price is at a 10% discount over Monday's closing price of LIC shares of Rs. 424.35 on the BSE. LIC said its trading window will remain closed until August 8, 2026.  Negative

Restaurant Brands Asia Limited (RBA): The operator of Burger King in India and Burger King and Popeyes in Indonesia, Restaurant Brands Asia Limited (RBA), reported a combined net loss of ₹28.35 crore in Q1FY27, down from ₹42 crore in the same period the previous year. Rs 28.3 crore was the net loss as opposed to Rs 41.9 crore. Revenue increased from Rs 698 crore to Rs 823 crore, a 17.9% increase. Ebitda increased from Rs 72.8 crore to Rs 100 crore, a 37.6% increase. Ebitda margin was 12.2% as opposed to 10.4%.

Bharat Electronics: signed a Memorandum of Understanding with ESRI to work together on defence projects that use GIS, location intelligence, and GeoAI. Under this MoU, both sides will look for new defence opportunities together. BEL will bring its strong knowledge of defence electronics and system integration. Esri India will bring its GIS, location intelligence, and GeoAI tools.

KEC international: Bags Rs 1,063 Cr in new orders across Civil, T&D, Renewables & Cables. T&D: 400 kV transmission line in Africa + supply orders in the Americas. Renewables: 50+ MW Wind EPC project in Western India. FY27 YTD order intake now exceeds Rs 6,300 Cr.

Gulf Oil Lubricants Q1 (Consolidated YoY): Profit spikes 28.4% to Rs 123.2 crore Vs Rs 95.9 crore. Revenue jumps 30.6% to Rs 1,327.2 crore Vs Rs 1,016.5 crore. View-Strong quarter, positive

SBI Fund Q1FY2027 Results: In its post-debut earnings release, SBI Funds Management reported a 3.7% year-on-year increase in consolidated net profit to ₹880.3 crore for the June quarter, driven by strong domestic inflows into mutual funds. Revenue from operations climbed 15.2% YoY to ₹1,152.7 crore, lifting operating profit by 17% to ₹907 crore. However, a 28% decline in other income to ₹237 crore due to lower treasury returns partially offset top-line gains. Average Assets Under Management grew 11% YoY to ₹12.6 lakh crore, maintaining its status as India’s largest asset manager with a 15.1% market share and a dominant 27.4% share in passive funds.

Indian Renewable Energy Development Agency Q1 (Consolidated YoY): Profit soars 37.1% to Rs 338.5 crore Vs Rs 246.9 crore. Net interest income grows 24.1% to Rs 857.5 crore Vs Rs 690.8 crore. Net Interest Margin (Annualised) improved to 3.75%, compared with 3.60% in Q1 FY26 and 3.65% in Q4 FY26. Gross NPA ratio improved to 3.76% from 4.13% a year ago while sequential up from 3.49% which is around 27 bps. while the Net NPA ratio improved to 1.23% from 2.06% y-o-y and 1.29% q-o-q. View-Strong quarter however asset quality deteriorated on sequential basis

One 97 Communications Paytm: SAIF Partners is likely to sell a 2.3 percent stake in Paytm through block deals, with the deal size estimated at Rs 2,002 crore and the floor price set at Rs 1,339.65 per share, CNBC-TV18 reported, citing sources. The group holds more than 12% stake, so sentimentally negative for the stock and if continue selling then hangover expected. View-Negative

Meesho: Peak XV Partners and Elevation Capital are likely to sell a 2.3 percent stake (representing 10.5 crore shares) in Meesho through block deals, with the deal size estimated at Rs 1,900 crore and the floor price set at Rs 182.08 per share, as per media sources.

INVESTMENT CALL

First Cut: DLF Q1FY27 Consolidated Results: Performance declined; launches deferred

• DLF reported pre-sales of ₹657 crore in Q1FY27, down 94% YoY, reflecting the timing impact of deferred project launches. Collections declined 27% YoY to ₹2,406 crore.
• Consolidated revenue stood at ₹1,280 crore, down 53.0% YoY and 46% below our estimates. EBITDA declined 59% YoY to ₹150 crore, with margin contracting sharply to 11.7% (down 167 bps YoY and 78 bps below our forecast).
• Adjusted PAT increased marginally by 4.1% YoY to ₹794 crore.
• The annuity business remained resilient, with DCCDL rental income growing 22% YoY to ₹1,444 crore.
• The rental portfolio, spanning approximately 50 msf, continued to demonstrate strong operating performance, with industry-leading occupancy of 95%.

Bajaj Finserv Q1FY27 Results update : Lending business scaling, quality improving in insurance segment

View – Buy, CMP Rs. 2065, PT Rs. 2380

• Consolidated PAT rose 12% y-o-y to Rs. 3,132 crore as total income grew 19% y-o-y to Rs. 42,037 crore.
• Bajaj Finance was the primary earnings engine, with consolidated PAT rising 28% y-o-y.
• Life insurance delivered standout numbers, with VNB rising 87% y-o-y to and new business margin expanding ~480 bps y-o-y to 15.9%, even after absorbing a ~290 bps GST-related headwind.
• General insurance segment’s growth was more measured as the management continued to prioritise underwriting discipline over volume amid a soft motor and crop pricing cycle. We maintain BUY with a revised SOTP-based target price of Rs. 2,380.

Bajaj Finserv consolidated

Bajaj Finance

Stock update: Rainbow Children’s Medicare Ltd. - Volumes Firm, New Hospitals in Ramp-Up Mode

Rating: Buy                  Reco. Price: Rs. 1,522           Price Target: Rs. 1,757

• Consolidated revenue grew 33.2% y-o-y to Rs. 4,70 crore. and EBITDA rose 29.9% y-o-y to Rs. 1,35 crore, but margin pressure prevailed on account of ramp up in bed utilisation and focus being on volume growth.
• ARPOB rose 6% y-o-y to Rs. 67,256 and occupancy improved 3 pps y-o-y to 41.2%, led by mature hospitals at 45% occupancy, and 34.4% occupancy for new hospitals.
• At Rs.59,133, new hospitals’ ARPOB is at ~20% below the mature book’s Rs. 70,662, and unlike the mature patient groups’ 10% y-o-y ARPOB gain, new group’s gain was flat y-o-y. We expect new hospitals’ ARPOB to improve as case mix and complexities improve.
• We value the stock at a historic avg 1-yr fwd P/E of 46x on FY8E EPS of Rs. 37.4 and arrive at a target price of Rs. 1,722. 

Valuation (Consolidated)                                                                              (Rs. crore)

Stock Update: Thermax Q1FY27 Results – Muted challenging quarter- Maintain Hold

Rating: Hold     Reco Price: Rs 4,133      Price Target: Rs 4,300

• Revenue grew 7% y-o-y led by industrial products (up 10% y-o-y) and green solutions (up 41% y-o-y) segments and compensated by a decline in industrial infrastructure (-12% y-o-y).
• Margins fell 749 bps to 3% vs 10.5% a year ago. Higher RM costs dragged down gross margins by 300 bps y-o-y. Margins were lower due to one project cost overrun of Rs 91 crore in the Industrial Infra segment.
• Order bookings rose 2% to Rs 2,809 crore. order book grew by 23% y-o-y to Rs 14,045 crore.
• With stock prices, order book visibility and premium multiples having already run up, we maintain a Hold rating; for a price target of Rs 4,300. Thermax trades at ~58x/45x its FY2027E and FY2028E EPS.

Valuation (Consolidated)                                                           (Rs. crore)

Result Summary                                                                                                Rs. Crore

Stock update: Dixon Technologies – Strong show in challenging times

Rating: Buy                  Reco. Price: Rs. 13,985               Price Target: Rs. 16,300

• Revenue grew 21%, beating our expectations, led by strong execution and pass-through of higher memory chip prices. The growth was seen across the segments.
• EBITDA fell 4% to Rs 463 crore with margins reducing 78 bps to 3%. Management remained cautious of margin pressure in FY27 and expects the same to be at 3-3.1%.  PAT rose 156% led by higher other income and lower interest cost.
• Management commentary remains very constructive and guided a 20-25% volume growth for Q2FY27 in mobiles segment and flat volumes y-o-y (ex-Vivo) in FY27. Margins to be in the range of 3.0-3.1% for FY27.
• We retain a Buy rating with a PT of Rs. 16,300, factoring in a 24%/6% revenue/PAT CAGR (FY26–28E). Stock trades at 49x FY27E and 34x FY28E earnings.

  Valuation (Consolidated)                                       (Rs. crore)

Result Summary                                                                                              Rs Crore

First cut: KEI Industries Q1FY2027 results – Strong show on margins

·         Revenues for Q1FY27 grew by 23% to Rs 3,185 crore broadly meeting our estimates. The revenue growth was backed by spectacular growth of 57% in Cables and Wires Other segments declined compensating the growth. Domestic business posted a growth of 29% where as international business declined by 7%. EHV cable sale increased to ` 186 crore in Q1 FY27 from ` 126 Crore in Q1 FY26, registering robust growth 47.74% YOY.

·         Operating profit grew by 53% y-o-y to Rs.396 crore as an impact of growth in revenues. Operating profit margins improved by 247 bps yoy . In line with operating profit growth adjusted PAT grew by 40% y-o-y to Rs. 274 crores.

·         View: KEI Q1FY27 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 hold rating on the stock.

Results (consolidated)                                                                                             Rs crore

OTHER NEWS

Stove Kraft : The company reported a strong Q1 FY27 performance, with revenue rising 41.3% YoY to Rs. 480.6 crore, driven by broad-based growth across product categories and channels. EBITDA grew 50.9% YoY to Rs. 53.8 crore, while PAT increased 63.5% YoY to Rs. 17.1 crore, supported by operating leverage and margin expansion. The induction cooktop segment was the key growth driver with 315.9% YoY growth, while the company continued to expand its retail footprint by adding 17 stores during the quarter. Management remains optimistic on growth, backed by premiumisation, wider distribution reach and festive season demand.

Doms industries: Revenue grew 19% to Rs 670 crore, EBITDA declined by 16% to Rs 83 crore, Margins declined to 12.3% vs 17.6%. Net profit was down by 22% to Rs 44 crore. company is prioritizing volume-led growth and market share expansion over near-term margin considerations due to commodity inflation. Commercial operations for the first phase of the 50+ acre greenfield facility, with over 300,000 sq ft of manufacturing area, are expected to commence by the end of Q2 FY27. This will significantly enhance capacities for scholastic stationery and office supplies.

Narayana Hrudayalaya : The company's profit after tax increased 5.7% YoY but declined 9.2% QoQ to Rs 207.30 crore in Q1 FY27. Revenue from operations jumped 78.0% YoY and 3.5% QoQ to Rs 2,683.60 crore in the quarter ended 30 June 2026. EBITDA increased 40.0% YoY but fell 6.4% QoQ to Rs 505.20 crore. EBITDA margin contracted to 18.8% from 23.9% in Q1 FY26 on account of hgher operating costs. . Total expenses rose 89.2% YoY to Rs 2,213.90 crore. Employee expenses (excluding doctors) surged 145.3% YoY to Rs 724.80 crore, other administrative expenses increased 99.4% YoY to Rs 647.80 crore, doctors' expenses rose 33.9% YoY to Rs 327.00 crore, consumption costs increased 68.2% YoY to Rs 514.30 crore. Finance costs climbed 92.0% YoY to Rs 86.80 crore, while depreciation and amortisation expenses rose 85.2% YoY to Rs 156.10 crore.

Krishna Institute of Medical Sciences : Revenue jumps 35.3% to Rs 1,179.5 crore Vs Rs 871.6 crore  but profit sinks 47.2% to Rs 41.5 crore Vs Rs 78.6 crore as operating costs weigh on the results due to high capex.