May 29, 2026

TOP NEWS

War update: US and Iranian negotiators edged toward a deal to extend their fragile ceasefire for 60 days, but the potential breakthrough was still hanging on President Donald Trump's approval. Under the proposed deal, shipping through Hormuz would be unrestricted, with no tolls or harassment; Iran would remove all mines within 30 days; and the United States would lift its naval blockade if commercial traffic resumes. US also threatened Oman if it helped impose a tolling system in the key Strait of Hormuz, warning of sanctions against all parties involved in such actions. The deal was earlier stuck for Nuclear programme then came in picture strait of Hormuz and now one more angle to it is Abraham accords. Both the parties over the weekend have exchanged the strikes on each other. After the extension of time for peace deal Oil flared lower and it currently at $91/ barrel and Asian markets are flaring well with all up around 1-2 %. Gift nifty is broadly up by 3 points.

Varroc Engineering Ltd reported a 238% YoY jump in its consolidated profit after tax (PAT) to ₹69.3 crore for Q4FY26, compared with ₹20.5 crore in the corresponding quarter last year. Consolidated revenue from operations increased 12.8% YoY to ₹2,368 crore in Q4 FY26 from ₹2,099.2 crore a year earlier, marking the company’s highest quarterly revenue since the divestment of its overseas lighting business. The overseas electronics and lighting business is expected to see a more visible turnaround from the second half of FY27, supported by a strong order pipeline.

STRONG RESULTS

Aditya Infotech: Revenues grew by 46% to Rs 1,422 crore. Operating profit grew by 162% to Rs 256 crore. Margins improved to 18.06% vs 10%. PAT was higher by 207% to Rs 169 crore. The strongest margin improvement came in from mix of higher end IP cameras, better product mix, localization etc. Management has upgraded its FY27 guidance to Rs 6000-6500 crore for a growth of 50% and margins to sustain at this levels. The market share of the company has increased to 45% from 30%.

Ashapura Minechem: Revenues grew by 254% to Rs 1968 crore, Operating profit grew by 52% to Rs 128 crore. Margins were lower at 6% vs 15% yoy. PAT was higher by 54% to Rs 120 crore. Guinea business is becoming a support for growth engine.  FY26 performance was strong though the Bauxite prices average around $62/ton during year but for Q1FY27 Bauxite prices are up by 10%.

Axis cades: Q4 FY26 performance was impacted by deffered revenue recognition of Rs 142 crore. Q4 Revenue was impacted by  global logistics disruptions, and input material supply constraints. Revenue came in at Rs 273.01 growing marginally by 2%. Operating profit degrew by 10% for Rs 33 crore. EBITDA Margin 12.31% vs 13.98% YoY.  Marginally weak set of numbers.

PG Electroplast: Revenue degrew by 10% yoy to Rs 1,717 crore. Operating profit was down by 43%. PAT was down by 56% to Rs 64 crore. LPG shortage (Gulf conflict) caused ~2-week plant shutdown in March Shift to alternate fuel increased costs; also led to labour migration issues. Weak set of results.

Lumax Industries: The company reported robust earnings for Q4FY26, with net profit jumping 23% y-o-y to Rs. 54.1 crore and revenue rising 30.4% y-o-y to Rs. 1,200 crore. The board recommended a final dividend of Rs. 55 per share for FY26.

INVESTMENT CALL

First cut: V2 Retail Q4FY26 (Consolidated) results – Strong Q4

·         Revenues grew 60% y-o-y to Rs. 797 crore, versus our expectation of Rs. 798 crore, driven by 7.74% y-o-y same-store-sales growth (SSSG). Volume growth stood at 53% y-o-y. Sales per sq. ft per month fell to Rs. 794 against Rs. 896 in Q4FY25 (decline of 11.4% y-o-y). MRP sales contribution stood flat y-o-y at 89%.

·         Gross margin and EBITDA margin rose by 202 bps y-o-y to 30.3% and 282 bps y-o-y to 14.4% on back of store level efficiencies. EBITDA margin came largely in line with our expectation of 14.6%.

·         EBIDTA grew by 98.7% y-o-y to Rs. 115 crore and PAT grew by 2.4x y-o-y to Rs. 22 crore led by strong revenue growth and improved operating efficiencies. V2R opened 31 net stores during Q4FY26, taking the total count to 325 stores at FY26-end, with total retail area of ~35.35 lakh sq. ft.

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

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First Cut: Lemon Tree Hotels Q4FY26 (Consolidated) results – Operating performance in-line

·       Consolidated revenues grew by 10% y-o-y to Rs. 416 crore; in line  with our expectation of Rs. 419 crore. Revenue growth is driven by 6% y-o-y growth in gross ARR and 96 bps y-o-y improvement in occupancy to 78.5%, leading to RevPAR growth of 7% y-o-y. Total management fees increased by 13% y-o-y.

·       EBITDA margin fell by 223 bps y-o-y to 51.7%, in line with our expectation of 51.8% mainly due to higher renovation cost and GST impact.

·       EBITDA increased by 5.5% y-o-y to Rs. 215 crore and adjusted PAT grew by 9% y-o-y to Rs. 119 crore, versus our expectation of Rs. 106 crore. AT FY26-end LTHL’s combined operational and signed pipeline inventory now stands at 22,581 rooms across 268 hotels.

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

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First cut: Relaxo Footwears Q4FY26 (Standalone) results – Better than expected results

·       Revenue grew 8% y-o-y to Rs. 751 crore, ahead of our expectation of Rs. 722 crore driven by 11% y-o-oy volume growth, while realisation fell by 2% y-o-y. Growth was broad-based across all channels.

·       Gross margins improved by 186 bps y-o-y to 56.8%, while EBITDA margin rose 39 bps y-o-y to 16.5% led by continued focus on operational efficiencies. EBIDTA margin came in higher than our expectation of 14.7%.

·       EBITDA grew by 10.6% y-o-y to Rs. 124 crore, while Adjusted PAT increased by 20.5% y-o-y to Rs. 68 crore aided by stable depreciation charges, beating our expectation of Rs. 55 crore. The Board has recommended final dividend of Rs. 3.5 per share for FY26.

·       View: We shall come out with a detailed note soon. Currently we have a Hold rating on the stock.

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Actual vs estimates                                                   Rs. crore

First cut: Bata India Q4FY26 (Standalone) results – Beta on revenue front; margins miss the mark

·       Revenue grew 5.1% y-o-y to Rs. 828 crore, beating our expectation of Rs. 808 crore, supported by broad-based performance across channels. Premium portfolio, led by Hush Puppies and Power, continued to outpace overall growth.

·       Gross margin and EBITDA margin fell 241 bps and 134 bps y-o-y to 56.4% and 20.9%, respectively owing to increased raw material cost and higher other expenses. EBITDA margin missed our expectation of 22.5%.

·       EBIDTA stood largely flat y-o-y at Rs. 173 crore. Lower other income led to 8.6% y-o-y decline in the adjusted PAT to Rs. 40 crore, lagging our expectation of Rs. 48 crore. Considering exceptional items related to VRS cost and one-time non-cash forex loss, reported PAT came in at Rs. 2 crore. The board has recommended dividend of Rs. 9 per share for FY26.

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

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Stock update: Aditya Birla Fashion & Retail Q4FY26 (Consolidated) result update – Near-medium term outlook bleak; downgrade to Hold

Reco: Hold                  Reco. Price: Rs. 64                 Price Target: Rs. 70

• ABFRL’s cash burn is high and consolidated profitability is weak despite operational improvements in Q4 led by turnaround in Pantaloons and improved profitability in the Ethnic/TMRW businesses.
• Maintaining growth momentum in Pantaloons would be difficult given ongoing macroeconomic uncertainties, while investments in emerging businesses would continue to impact earnings for the next few years.
• Near-term challenges remain, with an inflation-led consumption slowdown likely in H2FY27 and balancing aggressive expansion with profitability and cash discipline.
• In view of the near to medium term uncertainty, we downgrade the stock from Buy to Hold with a revised SOTP-based PT of Rs. 70. We will revisit our view as and when profitability improves. Stock trades at 17x/13x its FY27E/FY28E EV/EBITDA, respectively.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore