October 27, 2026

TOP NEWS

War update: Oil prices edged lower as the potential for a resolution in the US-Israeli war on Iran kept supply fears at bay, but Brent stayed close to six-month highs as attacks on Saudi Arabia lowered hopes of immediate stability in the region. Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday aimed at easing tensions in the Middle East. On the other side Trump said that  ceasefire during the war with Iran “sort of a waste of time,” as he touted the US blockade and said Washington now had “total control. Oil prices is hovering around $115/barrel. Asian markets are trading positively as the tech rally rebounds on wall street due to optimism surrounding IPO of AI firm Anthropic. where as gift nifty indicates a 100-point cut on the bourses.

Defense sector: The Defence Acquisition Council has granted in-principle approval to defence procurement proposals worth approximately Rs 2.12 lakh crore for the Indian Army, Navy and Air Force. The proposals include advanced artillery systems, helicopters, air defence systems, counter-drone technology, surveillance and long-range kamikaze drones, along with naval platforms and mobile weather radars. Around 82% of the proposed procurements are expected to be sourced from Indian industry, strengthening domestic defence manufacturing. Key potential beneficiaries include HAL (helicopters), BEL (C-UAS, radars, air defence, electronics), L&T (self-propelled guns/K9 Vajra), BDL (VSHORADS), BEML (high mobility vehicles), Zen Technologies/ideaForge/Paras Defence/Data Patterns (UAVs, kamikaze drones, counter-drone systems), Mazagon Dock/Cochin Shipyard/GRSE (naval platforms). AoN is only initial approval and contracts take time.

Paramount Communications: Revenue grew by 31% yoy to Rs 560 crore with margins improving by 585 bps yoy to 7.3%. Operating profit was up by 560% yoy to Rs 41 crore. PAT was higher by 83% to Rs 24 crore. Wire and cables segment profit rose to Rs 36.48 crore from Rs 1.98 crore. Finance costs nearly doubled to Rs 7.89 crore.

Bajel Projects: bags its highest ever transmission order: Rs 1,500 Cr. The landmark order covers a critical renewable-energy transmission corridor in Gujarat, including ~270 km of 765 kV double-circuit transmission lines. The project will help evacuate nearly 14 GW of renewable power from Lakadia, Jam Khambhaliya and Jamnagar—strengthening India's clean-energy grid. And there's more: Bajel also secured a ₹200+ Cr order for 400 kV GIS substations in Mumbai.

Paytm: One 97 Communications (Paytm) Q2 (Consolidated YoY): Profit soars nearly 11-fold to Rs 226 crore Vs Rs 21 crore. Revenue surges 28.5% to Rs 2,648 crore Vs Rs 2,061 crore.

Sona BLW Precision Forgings Q2 (Consolidated YoY): Profit grows 29.3% to Rs 223.4 crore Vs Rs 172.8 crore. Revenue jumps 34.9% to Rs 1,535.8 crore Vs Rs 1,138.3 crore. Positive

RECL reported weak Q2: The company reported a 21.2% y-o-y decline in net profit to Rs. 3,478 crore for the Q2FY2027 due to higher credit costs reported in the quarter (as compared to the negative credit costs in the comparative quarters). Net interest income (NII) fell 9% y-o-y to Rs. 5,478 crore from Rs. 6,022 crore.  AUM grew by 5% on q-o-q. AUM grew to Rs. 6.17 lakh crore, slightly above estimates, up by  6.0%  y-o-y and 5% q-o-q driven by renewable energy portfolio which grew by 27% y-o-y to Rs. 86,660 crore. Asset quality continued stayed strong. The proposed merger of Power Finance Corporation (PFC) and REC is moving closer to the Union Cabinet. The government is considering issuing preference shares to maintain its minimum 51% stake in the merged entity, replacing alternatives discussed earlier, including recapitalisation bonds and a fresh equity infusion. The merger is targeted to take effect from April 1, 2027. Overall, weak quarter for the company. Negative for the stock.

E2E Networks: The company is planning a significant capacity addition focused on NVIDIA's next-generation Blackwell GPU platform (B300s and others) The proposed 59% increase in capacity will support future growth which will be financed by internal accruals and Debt.

Sigma Advanced systems: Secured a $102.23 million (~₹973 crore) order to manufacture and supply Base Bleed Units for 155mm artillery ammunition to a NATO customer. Execution timeline: 12 months. The company already has capabilities in 155mm artillery shells and fuzes. Adding Base Bleed Units strengthens its ambition to manufacture more components across the artillery ammunition value chain.

Venus Remedies: Revenue Rs 219 Cr (+13.49% YoY), EBITDA Rs 42.50 Cr (+37.27% YoY), EBITDA Margin 19.43% vs 16.06% YoY, PAT Rs 25.65 Cr (+27.42% YoY)

INVESTMENT CALLS

First Cut: Dalmia Bharat Q2FY27 Consolidated Results –. Below Expectations

• Revenue grew 4.3% YoY to Rs. 3,563 crore, missing our estimate by 2.4%. Growth was driven by 2.9% YoY volume growth and a 1.3% YoY increase in realizations
• EBITDA/tonne declined sharply by 31.2% YoY to Rs. 694, impacted by higher input costs. Power & fuel costs increased 19% YoY, while modest volume growth and limited realization gains were insufficient to offset the cost pressure.
• Operating profit fell 29.2% YoY to Rs. 493 crore, with EBITDA margin contracting 653 bps YoY to 13.8%.
• Adjusted PAT declined 45.3% YoY to Rs. 129 crore, reflecting the sharp drop in operating profitability.

Stock update: Shree cement– Strong volume growth; fuel costs hit margins

Rec: BUY                CMP: Rs. 22,750             Target: 26,000

• Revenue/EBITDA/PAT came in 10%/16%/15% above our estimates, driven by strong volume growth of ~18% YoY (vs. industry growth of ~7–10%).
• EBITDA/tonne fell 15% YoY to Rs.912 as fuel costs rose sharply, though it was 10% above our estimate.
• FY27 India volume guidance maintained at 40-41 MT (9–10% YoY growth).
• October prices were higher than September; the management expects Q3 realisations to improve over Q2, aided by a higher premium mix.
• We maintain Buy with a revised PT of Rs. 26,000, factoring in near-term cost pressures, while a healthy volume growth and a rising premium mix support our positive view.

Stock update: Mahindra Logistics– Improving margin levers ahead

Rec: BUY                CMP: Rs. 371             Target: 480

·         Revenue rose 24.3% y-o-y and EBITDA rose 45.7% y-o-y. PAT stood at Rs. 26 crore versus a loss of Rs. 10 crore in Q2FY26.

·         B2B Express business (MESPL) turned EBITDA positive for the first time, at Rs. 2.3 crore. Contract Logistics continued to add clients and gain wallet share, and the 95% warehouse whitespace reduction target (from 1.6 mn sq ft in June 2025) has been achieved.

·         Company reiterated its target of a ~100 bps improvement in Contract Logistics gross margin from the FY26 exit level over the medium term.

·         We retain a Buy rating with a PT of Rs. 480, given the visible turnaround and improving profitability.

Stock update: HPCL– Refining leads beat; boiling crude keeps H2 uncertain

Rec: HOLD              CMP: Rs. 338           Target: Rs 360

• Earnings rebounded sharply, driven by strong refining performance and a meaningful narrowing of marketing losses, driving up all key metrics.
• Favourable refining and marketing conditions boded well, but we expect some of these tailwinds to moderate amid volatile crude procurement costs, elevated LPG under-recoveries and normalizing refining economics.
• Key projects remain on track, with HRRL ramp-up progressing steadily and Vizag RUF continuing to stabilise, although the bulk of the earnings benefits are likely to accrue only after full stabilization.
• We maintain our Hold rating with a PT of Rs. 360.

Stock update: Atul - Earnings Moderate as Margins Reverse

Rec: BUY              CMP: Rs. 5,325           Target: Rs 6,250

• Results lagged our expectations, with EBITDA and PAT were impacted by a sharp fall in gross margins as the favourable inventory gains and spread benefits seen in Q1FY27 reversed.
• Performance & other chemicals space was the key growth driver, supported by healthy demand and improved realizations, although profitability was impacted by higher input costs. Life Science Chemicals, meanwhile, faced volume pressure in crop protection segment and high input prices, resulting in weaker segment profitability despite better pricing.
• The Board approved a share buyback of up to Rs. 90 crore through the open market route at a maximum price of Rs7,500/share.
• We retain a BUY with a revised PT of Rs 6,250

First Cut : Five Star Business Finance – Weak Q2

• AUM grew 14.0% y-o-y and 6.7% q-o-q to Rs. 14640, in line with estimates.
• Profit was in line with expectation, barring tax reversal.
• The company reported GNPA on elevated level. Overall weak Q2FY27 for the company .

First Cut

Other News

Nazara Technologies Q2 (Consolidated YoY): Profit stands at Rs 35.36 crore Vs loss of Rs 33.9 crore. Revenue spikes 52.6% to Rs 803.2 crore Vs Rs 526.5 crore.

KFin Technologies Q2 (Consolidated YoY): Profit rises 7.5% to Rs 100.3 crore Vs Rs 93.3 crore. Revenue jumps 30% to Rs 401.8 crore Vs Rs 309.2 crore

Gravita India has incorporated a new wholly owned subsidiary, Gravita Recyclers USA Inc., to expand its scrap trading operations in the United States. The company invested an initial capital of USD 50,000 in this entity, which was incorporated on October 16, 2026. This move is part of the company's strategy to diversify its international scrap sourcing.

According to data from the World Steel Association, India's crude steel production rose 5.6% YoY to 130 million tonnes (MT) during January–September 2026, maintaining its position as the world's second-largest steel producer. India's growth came despite a 0.7% contraction in total global crude steel output (which fell to ~1.37 billion tonnes over the same nine-month period).

Genus Power Infrastructures: The Board of Directors has approved a share buyback worth up to Rs 148.2 crore at a price of Rs 312 per share, involving the purchase of up to 47.5 lakh equity shares.

Raymond Realty: The company's subsidiary, Ten X Realty West, has executed an investment agreement with Raymond Realty and ICICI Prudential Real Estate Development Fund. Under the agreement, the investor has agreed to invest up to Rs 210 crore in Ten X Realty West.

Aavas Financiers | The firm reported a 10.75% year-on-year rise in net profit to ₹182 crore in Q2 FY27, compared with ₹164 crore a year ago. Net interest income (NII) increased 10.1% to ₹431 crore from ₹391 crore. Gross NPA stood at 1.11%, while net NPA was 0.70.