August 13, 2026

TOP NEWS

War update: Both the parties are claiming that they have full control of Strait of Hormuz. The Israeli military has launched its first air strikes on Gaza in more than a week, while conducting bombings and demolitions in southern Lebanon, despite “ceasefires” being in effect in both places. Tehran remains resolute, pledging to continue its resistance against the US and keep the strait closed until all its demands are met. Oil prices donw by 1$ to $88/barrel. Asian markets opens up mixed, Gift nifty indicates flattish start with a cut of 35 points on bourses.

Bank of America to invest $1.9 billion for 49.9% stake in Jio Financial NBFC unit: Bank ⁠of America ​will ​invest ​up ⁠to $1.92 ⁠billion for a 49.9% ‌stake in ​Jio Credit, a ⁠unit of ‌Jio ‌Financial Services. The U.S. lender will be a joint venture partner in Jio Financial’s non-bank lending arm through a preferential allotment of equity shares and warrants. The transaction initially gives Bank of America a 26.5% stake, which can go up to 49.9% upon exercise of the warrants.The deal is the latest large investment in India’s financial services sector, which include Japan’s investment in Shriram Finance and Dubai-based bank Emirates NBD’s 60% stake in lender RBL Bank. Positive

Lenskart Solutions Ltd.'s net profit saw a 270% leap or 4x jump in its net profit to Rs 222 crore, according to financial results data for the first quarter of fiscal 2026-27. The firm's profit for the previous year was at Rs 60 crore. Net Profit Up 270% to Rs. 222 crore versus Rs. 60 crore. Revenue Up 43.3% to Rs. 2,714 crore versus Rs. 1,894 crore. Ebitda Up 75.5% to Rs. 588 crore versus Rs. 335 crore. Ebitda Margin at 21.7% versus 17.7%. Q1 FY26 had a one-time loss of Rs. 10.4 crore. Positive

Aditya Infotech: Revenue grew 89.5% to Rs 1402 crore, EBITDA up by 220% to Rs 208 crore, PAT is up by 332.5% to Rs 142 crore. Margins came in at 14.8% vs 8.7% yoy. Currently capacity stood at 2.5 million units per month. Kadapa facility to scale up by 2X in the next 2 years, funded through internal accruals. Construction of the new Housing & Enclosure Plant in Kadapa is progressing as planned. The facility is expected to become operational by Q3 FY2027 with an eventual annual production capacity of 30 million units annually. During the quarter, the Company incorporated Corelink Cable Technology Pvt ltd, a JV with Orient Cables, for the manufacturing of LAN and CCTV cables. The proposed manufacturing facility in Rajasthan, spanning 1,00,000 sq. ft., is expected to commence commercial operations by Q3 FY27. Positive

KRN Heat Exchanger and Refrigeration posted Q1FY27 consolidated net profit of ₹32.9 crore, up 165% YoY, as revenue from operations rose 119% to ₹252.3 crore. EBITDA surged 179% to ₹49.1 crore, with the EBITDA margin expanding to 19.44% from 15.26%. The company also completed a QIP raising ₹341.8 crore and fully utilised IPO proceeds of ₹311.1 crore for its Neemrana facility. Positive

Apollo Hospitals : The company reported 34% growth in consolidated net profit at ₹581 Crore for the quarter ended June 2026 (Q1FY27) as against ₹433 Crore in Q1 FY26 driven by broad-based growth in healthcare services revenue across regions. Consolidated revenue for Q1FY27 stood at ₹7,043 Crore, a 21 per cent growth at ₹5,842 Crore in Q1FY26. The performance was lead by Digital Health and Pharmacy segment where revenue grew a steady 20.4% year-on-year to ₹2977.0 Cr, and its operating profit surged by 120% to ₹152.3 Cr. Hence, the cash losses from the digital platform have successfully bottomed out, moving from a heavy drag to a profitable customer acquisition engine. Core hospital services continue to operate at peak efficiency, with revenue growing 21.7% year-on-year to ₹3619.5 Cr. This growth is highly qualitative, driven by a shift toward high-complexity robotic surgeries and transplants, which increased average revenue per occupied bed. Positive

Va tech Wabag: Rev up 20.8% at Rs 886.8 CR, EBITDA up 21.7% at Rs 116.3 CR, EBITDA margin improves to 13.1% vs 12.5% QoQ & 13% YoY.  Order inflows came in at Rs 3,400 crore and order book at Rs 19,400 crore at all time high. Key updates - Mega SWRO order in Kuwait marks WABAG's entry into Kuwait-  Ajman Sewage Biorefinery project strengthens UAE/GCC presence - Q1 win include BWSSB wastewater facilities, DJB WWTP and Donauinsel Water Works project in Austria - International business drove Q1 growth, with rest-of-world Rev up ~48% YoY. Positive

Bajel Proejcts: Company won order worth over Rs. 600 crore for a 765KV transmission line package under the WR-ER Inter-Regional Network Expansion Scheme, strengthening its position in high-voltage transmission infrastructure. (Positive)

RBI proposes new loan interest-rate framework, tighter rules for floating-rate loans: RBI has proposed a comprehensive new framework governing interest rates on loans and advances, with tighter rules on floating-rate loans, greater transparency in pricing and safeguards for borrowers. This Will come into effect from April 1, 2027. At present, the regulatory framework on interest rates on advances is applicable only to commercial banks, while NBFCs are governed largely by conduct-related aspects. The public has been given time until September 11.

The framework will cover commercial banks, regional rural banks, urban and rural cooperative banks, all-India financial institutions and non-banking financial companies, including housing finance companies, for their domestic operations, the RBI said.

• Lenders can offer loans at fixed or floating rates. Interest on advances will generally be charged at monthly rests and calculated on a daily reducing balance using the actual/actual day-count convention. Agricultural loans will have separate provisions linked to crop seasons, it said.
• A key change concerns floating-rate loans. Commercial banks will have to link all floating-rate personal loans and floating-rate loans to MSMEs to an external benchmark. These can include the RBI’s policy repo rate, Government Treasury Bill yields or other benchmarks published by Financial Benchmarks India Pvt Ltd, the RBI said. Lenders will not be allowed to price a loan below the applicable benchmark.
• The benchmark, reset frequency and reset date will have to be clearly specified in loan agreements.
• The RBI has also proposed stricter rules on spreads charged over benchmarks. The spread can include a credit-risk premium, operating costs, term premium and business-strategy considerations.
• For microfinance and small-value loans, lenders will have to set an explicit ceiling on the annual percentage rate, including interest and other charges, while ensuring the rates are not usurious.

View: Overall impact across banks and NBFCs wherein more impact on high charging interest rate companies like NBFCs on unsecured loans, MFI players.  Five Star, SBFC, LT finance, Ujjivan, Equitas, Jana Small Finance Bank and other unsecured lenders.

Macro Wrap

• US inflation slowed to 3.4% y/y in July from 3.5%, as energy pressures eased. Headline CPI rose 0.1% m/m, with shelter and food both up 0.1%, Energy prices continued to move lower, falling 1.5% for the month, although they remain 14.7% higher versus a year ago, while core CPI increased 0.2% m/m and 2.5% y/y (from 2.6%). Real average hourly earnings – the cash earnings of all workers, adjusted for inflation – declined 0.1% in July and are down 0.2% in the past year. Real average weekly earnings are up 0.1% in the past year.
• The US 2Y Treasury yield dipped 1bp to 4.20%, while the 10Y yield was little changed at 4.69%. The 30Y yield edged up 2bp to 5.26%. The German 10Y Bund yield was unchanged at 3.16%, while the UK 10Y Gilt yield gained 1bp to 4.97%.
• The Fed funds futures subsequently pared expectations for a September rate hike, with markets pricing around a 40% probability of a 25bp increase compared with 52% on Monday. They are pricing in a total hike of 27bp by year-end compared with 32bp on Monday. Sentimentally negative for Gold
• Japan’s producer prices rose 7.2% y/y in July, slightly below 7.3% in June and 7.4% expected. On the month, prices edged up 0.1% after a revised 0.5% gain, the weakest increase in five months.
• Germany’s inflation accelerated to 2.8% y/y in July from 2.3%, driven by an 8.3% jump in energy and higher motor fuel costs after tax relief ended. Services inflation eased to 2.9%, food stayed at 0.4%, core dipped to 2.4%, and CPI rose 0.8% m/m; EU‑harmonized inflation also reached 2.8%.
• Japan’s producer prices rose 7.2% y/y in July 2026, slightly below June’s revised 7.3% and the 7.4% consensus, indicating softer‑than‑expected cost pressures. On the month, prices rose 0.1% after a 0.5% gain, the weakest increase in five months.
• The International Energy Agency (IEA) now estimates that the global oil market will face a deficit of 1.8mn barrels per day in Q3, more than double its previous estimate, as the US-Iran conflict drags on. For 2026, the deficit is expected to be the largest in five years. This reinforces the risk that another sharp rise in oil prices could reverse some of the recent improvement in the US inflation outlook and complicate the Fed's policy calculus. Sentimentally positive for Crude oil.
• The DJIA was little changed, while the S&P500 and Nasdaq Composite Index rose 0.3% and 0.5% respectively. Technology stocks led the gains, with the Nasdaq 100 rising 0.7%. The Euro Stoxx 50 fell 0.3%. The Dollar Index gained 0.2% to 100.01. EUR USD fell around 20 pips to 1.1530. Brent crude oil prices edged up 0.1% to USD88.98, with the lack of progress over Hormuz offset by some easing in immediate supply concerns. Gold rose 0.9% to USD4,408.

INVESTMENT CALL

First Cut – Tata Motors Ltd – Revenue, EBITDA inline with estimates, PAT a surprise beat

• Revenue for the quarter was reported at Rs.19,329 crore which is 23.3% y-o-y growth led by strong volume growth of 26.7% y-o-y along with pricing discipline and planned price hikes.
• EBITDA grew 9.5% y-o-y to Rs. 2,176 crore on back of operational efficiency, better inventory management and effective cost control. EBITDA margin declined 141bps y-o-y and 227bps q-o-q to 11.3% which is one of the most controlled we have observed across all major OEMs.
• PAT grew 8.3% y-o-y to Rs. 1528 crore which is a positive beat over our earnings while PAT margins mirrored the EBITDA margins with a relatively controlled decline of just 109bps y-o-y and 193bps q-o-q to 7.9%.
• Strong operational performance and continued efficient working capital management resulted in positive Free Cash Flow of Rs.1.1K Cr (+Rs.2.9K Cr) in the first quarter. Net cash for the domestic business stood at Rs. 7.1K crore as of June 30, 2026, post dividend payout of Rs.1,473 Cr in the quarter. Auto ROCE continues to be robust for the quarter and stood at 68% (72% in FY26).
• On the whole a strong set of numbers in a challenging macro environment. We believe that with demand coming in from fleet replacement and increased industrial activity along with new products across all powertrains have aided the company and shall continue to do so. IVECO amalgamation would be a near term catalyst while acquisition of FleetEdge and Freight Tiger will provide better control over digital ecosystem of logistics value chain covering both trucks and trips.
• We maintain a positive rating on the stock and will review the target price in our detailed report (previous TP already achieved).

Results Highlights:

Margin Profile:

First Cut: Astral Ltd Q1FY27 Results – Below Expectations – Flat Volumes

• Revenue stood at Rs. 1,578 crore, up 15.9% YoY, but 4.8% below our estimates. EBITDA came in at Rs. 231 crore, up 25% YoY, but 11.8% below estimates. OPM expanded by 107 bps YoY to 14.7%, though it was also 115 bps below our expectations. Adjusted net profit increased 48.2% YoY to Rs. 120 crore, missing our estimates by 11.6%.
• Piping volumes remained flat at 56,164 MT, while realizations increased 10% YoY. Overall demand in the plastic pipes industry remained weak during Q1FY27. Realizations improved as PVC prices have been inching up, while the implementation of MIP is also expected to support stabilization of PVC prices.
• Plumbing segment EBITDA margin stood at 18.9% during the quarter, the highest in the industry, supported by a higher mix of value-added products. The backward integration into CPVC resin is expected to commence trial runs by the end of FY27, which should help the company gain market share in the piping segment.

Consolidated                                                              Rs. crore

Actual vs estimates                           Rs. crore

OTHER NEWS

Shringar House of Mangalsutra: In Q1 FY27, revenues were Rs 548.5 crores, up 64.9% year on year. EBITDA was Rs 57 crores, up 17.5% year on year, with an EBITDA margin of 8.9%. Profit after tax for the quarter was Rs 34 crore, up 19.3% YoY. Margins were at 6.2%. Bridal jewellery segment continued to acquire great growth during the quarter. The headline numbers show a massive 64.71% year-on-year revenue jump to Rs 548.49 Cr, but the underlying mechanics reveal a structural shift in the business model. The company is aggressively moving from low-margin job work to outright sales, which now make up 70% of the product mix.

Black Box reported revenue from operations of ₹1,718.5 Cr in Q1 FY27, up 23.9% YoY and 1.6% QoQ.  EBITDA (excluding other income) stood at Rs 148.9 Cr, up 42.1% YoY but down 5.3% QoQ, with EBITDA margin at 8.7%, expanding 111 bps YoY but declining 63 bps QoQ. PAT stood at ₹55.9 Cr, up 17.9% YoY but down 13.7% QoQ, while PAT margin was 3.3%, down 17 bps YoY and 58 bps QoQ

Black Box shares are likely to remain in focus after the company announced a $131 million (around Rs 1,240 crore) order from a new US-based global hyperscaler for a data centre project in the US.

Midwest Limited reported a 49% YoY increase in consolidated net profit to Rs 310.39 million in Q1FY27, while revenue from operations increased by 35% to Rs 1,918.39 million. EBITDA climbed to Rs 268 million from Rs 222 million YoY, but the margin decreased to 27.22% from 28.30%. The standalone net profit increased to Rs 211.33 million from Rs 141 million, while sales increased to ₹985 million from Rs 787 million in Q1 FY26.

Sudarshan Chemical Industries: The company reported a strong Q1FY27 performance, with revenue growing 5.4% YoY to ₹2,642.1 Cr, though down 5.3% QoQ. EBITDA grew a robust 34.5% YoY and 13.8% QoQ to ₹258.8 Cr, with EBITDA margin improving to 9.8% vs 7.67% YoY and 8.15% QoQ. PBT before exceptional items and share of JV/associates increased 92.0% YoY to ₹144.2 Cr, while PBT ex-exceptional items rose 91.5% YoY to ₹157.4 Cr. PAT surged 88.0% YoY to ₹103.4 Cr, with PAT after minority interest more than doubling by 106.1% YoY to ₹97.3 Cr. Other income stood at ₹19 Cr vs ₹25.8 Cr YoY and ₹10.4 Cr QoQ. Overall, the quarter reflected strong profitability improvement despite relatively modest revenue growth.