November 04, 2026

TOP NEWS

War update: Trump has played down on speculation about another round of US strikes on Iran. Trump also mentioned that indirect negotiations over Iran’s nuclear pile is on going. A tanker was struck by two unidentified projectiles in its engine room. Oil prices have dropped down to $102/ barrel. Asian markets traded in negative range and gift nifty indicates margins cut of 50 points on the bourses.

GNG Electronics: Revenue at 625cr vs 412cr, Q1 at 440cr PBT at 68cr vs 36cr, Q1 at 36cr PAT at 56cr vs 29cr, Q1 at 33cr OCF at -96cr with increased inventory.  Strong numbers. Sharp operating leverage and margin expansion continue the growth momentum. Raised FY27 revenue growth guidance to 40% YoY from 30%.  Raised FY27 PAT margin expansion guidance to 150 bps over FY26, from the earlier 75–100 bps.

Tata Steel: Steel price hike across key products. The latest increases follow another round of price hikes in October, when steel companies raised prices by Rs 2,000-2,700 per tonne. That was the third consecutive monthly increase, supported by resilient demand and higher input costs. The latest round of increases comes amid higher costs of key raw materials and transportation. In addition, higher domestic fuel and power costs have added to the pressure. An online market intelligence platform, HRC prices have risen to Rs 64,700 per tonne from Rs 62,000 in September. The increase reflects the cumulative impact of the price revisions over the past few months. Highly positive for domestic players like Tata Steel & JSW steel.

LMEL: Lloyd’s metal & energy reported an 88.1% year-on-year increase in consolidated net profit to ₹1,046 crore for the second quarter, compared with ₹556 crore in the corresponding quarter last year. Revenue rose 55.3% to ₹5,673 crore from ₹3,652 crore in the year-ago period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 75.4% year-on-year to ₹1,804 crore from ₹1,028 crore. The EBITDA margin also improved to 31.8% from 28.2% in the corresponding quarter last year, an expansion of 360 basis points. Lloyds Metals is going to invest 625 cr in Triveni earthmovers. .

Multi Commodity Exchange of India (MCX) reported a sharp rise in profit and revenue for the September quarter of financial year 2026-27 (Q2FY27), with earnings more than doubling from a year earlier. Net profit rose to ₹454.57 crore from ₹197.47 crore in the corresponding quarter of the previous financial year. Revenue increased to ₹799.66 crore from ₹374.23 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed to ₹611.24 crore from ₹243.63 crore. The EBITDA margin - the share of revenue converted into operating earnings - expanded to 76.4% from 65.1% in the year-earlier quarter.  

Neuland Laboratories Limited : Revenue from operations of ₹449.7 crore, down 12.5%, and net profit of ₹51.6 crore on account of lumpiness in the CDMO business. 

Lupin: The company reported Q2FY27 sales of ₹7,785.5 crore, up 14.0% YoY but down 5.3% QoQ from a record Q1. US sales rose 9.3% YoY to ₹3,020.2 crore, and India grew 14.7% to ₹2,383.6 crore, making up 31% of sales. Other developed markets grew 45.7% to ₹1,182.3 crore, while emerging markets fell 3.5% to ₹890.8 crore. Gross margin held at 74.2%, but EBITDA fell. Management attributed the decline in profitability to higher personnel and manufacturing costs, which rose 28.8% and 23.2% respectively. PAT fell 22.2% to ₹1,155.3 crore, from ₹1,484.8 crore a year earlier.

INVESTMENT CALL

Aarti industries - Energy momentum continues; Zone-4 next growth driver

Reco: BUY       CMP: Rs 428      Target: Rs 560

• Revenue/EBITDA/PAT grew 74.7%/38.6%/102.4% y-o-y, driven by a sharp ramp-up in the Energy portfolio aided by volume growth, capacity expansion and favourable pricing.
• The management remains confident of achieving the lower end of its FY28 EBITDA guidance of Rs 1,800-2,200 crore, with room for upside if current business conditions sustain.
• With Phase-1 commissioned and initial facilities ramping up well, Zone-4 is expected to add Rs 250-350 crore to bottom-line in 18-24 months.
• We maintain a BUY with a PT of Rs 560

PCBL -  Mixed Quarter

Reco : Hold       CMP: Rs 282      Target: Rs 350

• PCBL reported a mixed 2QFY27 performance, with revenue, EBITDA and PAT growing 14%, 11% and 20% YoY, respectively, while EBITDA margin moderated to 11.9% and earnings were below consensus expectations.
• Carbon Black profitability remained healthy despite lower volumes, with volumes declining 17% YoY due to weaker exports and a calibrated approach towards lower-margin business, while EBITDA/tonne improved 40% YoY to Rs 19,973/t supported by favourable mix and pricing discipline.

• Aquapharm’s outlook is gradually improving, aided by increasing traction for key products.
• We maintain HOLD on PCBL with a PT of Rs 350.

First cut: State Bank of India – Q2FY27: Strong core growth and healthy asset quality

• Net interest income rose 14.7% YoY to Rs49,143 crore, 2.4% ahead of our estimate, driven by strong balance-sheet growth and resilient margins. Margins held up better than expected
• Other income declined 23.8% YoY to Rs11,777 crore, on lower treasury gains and a high base. The Rs2,410 crore gain from the NSE stake sale was credited to capital reserve rather than the P&L.
• Opex rose 9.6% YoY, taking the cost-to-income ratio to 55.8%. Operating profit came in at Rs26,937 crore (-1.4% YoY).
• Provisions fell 21.9% YoY to Rs4,217 crore, and annualised credit cost stayed benign at 0.33%, below the FY27 guidance of 0.41%. Asset quality improved further: GNPA was 1.39% (down 34 bps YoY and 8 bps QoQ), NNPA 0.36% and PCR 74.4%.
• Net profit grew 14.3% YoY to Rs23,038 crore, in line with our estimate. It was aided by a Rs7,288 crore exceptional gain on the stake sale in SBI Funds Management.
• Advances grew strongly, up 18.2% YoY and 3.3% QoQ, well ahead of the FY27 guidance of 14.5%. Deposits grew 12.3% YoY and 4.5% QoQ, keeping the C/D ratio comfortable at 82.1%.
• We have a BUY rating on the stock and will come out with a detailed report shortly.

First cut: Bajaj Finserv – Q2FY27: Lending arm leads strong earnings growth; Bajaj Life’s VNB margin expands sharply

• Bajaj Finserv reported a healthy quarter. Consolidated total income rose 16.7% YoY to Rs43,416 crore, and consolidated PAT grew 25.4% YoY to Rs5,952 crore. PAT attributable to owners was up 22.9% YoY at Rs2,758 crore; adjusted for MTM and realised equity gains, the company puts that growth at 22%.
• Bajaj Finance led the way. Its consolidated PAT rose 28.7% YoY to Rs6,367 crore, AUM grew 26.5% YoY to Rs5.85 lakh crore, and it added 44 lakh new customers in the quarter. GNPA improved by 18 bps YoY to 1.06%. Excluding the Rs337 crore prudent/macro provision, loan losses fell 12.1% YoY.
• Bajaj Life had a strong quarter on profitability. VNB grew 39.6% YoY to Rs512 crore, and VNB margin expanded 450 bps YoY to 21.6%, helped by a better product mix, with retail protection up 51% YoY. GWP grew 22.8% YoY to Rs10,277 crore, and renewal premium rose 17%. Retail-weighted premium growth was muted at 5%.
• Bajaj General’s core business grew well. GWP excluding crop and government health rose 21.3% YoY, well ahead of the industry’s 13.2%, led by health (+31.5%) and motor (+18.3%). Total GWP was up 10.0% YoY.
• Bajaj General’s PAT fell 18.8% YoY to Rs420 crore. This was due to lower capital gains, Rs75 crore of net NATCAT claims and the capital reduction from the buyback and dividend. The combined ratio rose to 104.5%, but excluding NATCAT it was 102.0%, better YoY.
• Both insurers remain well capitalised, with solvency at 255% for Bajaj Life and 229% for Bajaj General. Bajaj Life began operations in GIFT City in October and will start retail distribution through IndusInd Bank from Q3FY27.
• We have a BUY rating on the stock and will come out with a detailed report shortly.

First cut: MGL Q2FY2027 results:

-          Mahanagar Gas Ltd. reported a sharp decline in profitability for the September quarter, as higher gas procurement costs weighed on margins despite an increase in revenue and growth across its compressed natural gas (CNG) and piped natural gas (PNG) businesses.

-          EBITDA declined 9.8% YoY to ₹304.75 crore. Margin contracted 448 bps YoY to 12.0%, and fell 245 bps QoQ from 14.5%, as gas costs rose 34.1% YoY, outpacing revenue growth. On a per-unit basis, EBITDA fell to ₹6.77/scm from ₹7.91/scm in Q1FY27, as gas cost per scm rose 6.3% QoQ against a 3.3% rise in realisation.

-          Total sales volume grew 2.6% QoQ to 4.89 mmscmd. Industrial/commercial PNG led with 8.1% QoQ growth, while CNG grew 1.6% and domestic PNG grew 2.6%. For H1FY27, total volumes were up 6.75% YoY.

-          The company recognised an exceptional impairment loss of ₹17.33 crore on its investment in 3EV Industries. Excluding this, adjusted PAT stood at ₹154.36 crore, down 20.2% YoY and 20.3% QoQ.

-          View: Mahanagar Gas reported a weak Q2FY27. Adjusted PAT fell 20% YoY and EBITDA declined 10% YoY, even though revenue grew 24%, because rising gas costs squeezed margins. Volume growth remained healthy, led by the industrial/commercial segment. Currently, we have a [rating] on the stock. We will review our estimates and send a detailed note

OTHER NEWS

Sandur Manganese & Iron Ores reported Q2 FY27 consolidated revenue of ₹1,506.13 crore, up 22.2% year-on-year. Consolidated PAT rose 87.4% year-on-year to ₹260.28 crore in the quarter ended 30 September 2026. Steel segment profit increased 157.9% year-on-year to ₹103.74 crore.

Hindustan Zinc Limited, the world’s largest integrated zinc producer and one of the top 10 silver producers globally, today announced the launch of VedAZ and VedAyush, two next-generation zinc alloys. Developed to address diverse requirements across the galvanizing value chain, the alloys are designed to enhance process efficiency, improve coating consistency and strengthen long-term performance of galvanized steel. The move comes as corrosion-related losses in India are estimated at approximately 4.3 percent of the country's annual gross domestic product, according to a 2026 report by the CII and Nomura Research Institute.

Graphite India* reported a steady performance in Q2FY27. Total operating income came in at ₹826 crore (up 13.3% YoY). EBITDA for the quarter stood at ~₹83 crore with corresponding EBITDA margins at ~10% (up ~415 bps YoY). Resultant PAT for the quarter stood at ₹94 crore (up 23.7% YoY).

HEG Advanced Materials* reported healthy quarterly performance in Q2FY27. Total operating income came in at ₹429.94 crore (up ~144% YoY). EBITDA for the quarter stood at ₹196.13 crore (up ~150% YoY) with corresponding EBITDA margins at 46% (up ~1286 bps QoQ) largely driven by its hydropower business. Resultant PAT for the quarter stood at ₹208.89 crore (up 202% YoY). The board approved phase-2 expansion of anode plant (envisaged capacity to be increased from 20KT to 44KT) with a capex of ₹1606 crore (for 24KT) and crucible project with a capex of ₹475 crore. Alongside, it also approved graphene project with a capex of ₹500 crore. It also increased capex outlay of phase-1 of anode material plant from ~₹2,000 crore in the past to ~₹ 2,300 crore now.

NSE Q2 profit rises 23%, but sequential earnings dip 17%: The exchange reported a 23% year-on-year (YoY) increase in its consolidated profit after tax (PAT) to Rs 2,578 crore in the second quarter of FY27 (Q2FY27), compared with Rs 2,098 crore in the corresponding quarter of the previous fiscal year (Q2FY26). EBITDA stood at ₹3,079 crore, compared with ₹1,484 crore in the year-ago period. EBITDA margin expanded to 75.7% from 40.4%. The cash market trading segment recorded an average daily traded volume (ADTV) of ₹1,18,377 crore, up 24% YoY. ADTV for equity options (premium value) increased 3% YoY to ₹47,977 crore, while ADTV for the equity futures segment stood at ₹1,24,574 crore in Q2 FY27. The results were marginally better than estimates. The sequential weakness was largely driven by a slowdown in transaction activity, with transaction volumes declining 16% QoQ and average daily traded volumes (ADTV) falling across segments.

ADTV in equity options premium declined 25% QoQ, while yields moderated by 3 basis points. Income from heightened IPO activity provided some cushion against the weakness in transaction-related income. In the commodities segment, futures ADT rose 38% QoQ to ₹138 crore, while options premium turnover surged 116% QoQ to ₹297 crore, driven by strong traction in crude oil contracts. EBITDA declined 13% QoQ, with margins contracting 215 basis points, primarily due to operating deleverage. Income from treasury investments also fell 30% to ₹479 crore from ₹682 crore in the previous quarter. Net profit recorded falling 17% QoQ to around ₹2,576 crore. NSE's market share remained largely stable across segments, although its share in the cash market declined by 1 percentage point to 92%. Neutral for the stock today, however  we are positive for the medium to long term.

Capital Advisors Limited reported a consolidated net profit of ₹13.54 crore for the Q2FY27), marking a 74% y-o-y. Total revenue from operations stood at ₹54.24 crore, a decrease of 49.3% from ₹107.05 crore in Q2FY26. Despite the YoY contraction, the company witnessed a strong sequential recovery, with total income rising 81.0% QoQ from ₹30.0 crore in Q1FY27. The company's performance reflects the cyclical nature of its investment banking segment, which saw reduced deal flow compared to the strong base effect of the previous fiscal year. While stock broking revenue remained relatively stable, the volatility in investment banking fees impacted the bottom line significantly. The PAT margin stood at 25.0% in Q2FY27, up from 0.5% in Q1FY27 but down from 48.7% in Q2FY26. The company maintains a robust pipeline with 19 IPOs currently in progress, having added 3 new IPOs to the pipeline in Q2FY27. These transactions span diverse sectors including Realty, Utilities, Transport Services, and Financial Services. Since November 2019, the firm has executed 106 ECM transactions, raising over ₹1,93,200 crore, establishing its position as one of India's fastest-growing merchant banks.

Seamec: Revenue Rs 198.13 Cr vs Rs 97.42 Cr (+103.38% YoY), EBITDA Rs 38.25 Cr vs Rs 7.84 Cr (+387.88% YoY), EBITDA Margin 19.31% vs 8.05% YoY, PAT Rs 50.48 Cr vs -₹25.73 Cr YoY. This Q2 Exceptional Gain of Rs 42.43 Cr.