February 06, 2026

LATEST NEWS

>> 10:55 AM

Update on RBI Policy: The Reserve Bank of India (RBI) has maintained a neutral stance in its latest policy update, keeping the repo rate unchanged at 5.25%, this was a unanimous decision by the MPC. To support the financial system, the RBI intends to ensure sufficient liquidity and remain pre-emptive in its actions. GDP growth for FY26 is projected at 7.4%, bolstered by strong service sector performance and a supportive agricultural sector due to healthy rabi crops sowing and healthy reservoir levels. Additionally, GDP growth for Q1FY27 and Q2FY27 has been revised upward to 6.9% versus 6.7% earlier and 7.0% versus 6.8% earlier, respectively. Private consumption momentum is expected to sustain, while services exports to remain resilient. The CPI for FY26 is projected at 2.1%, while projections for Q1FY27 and Q2FY27 have been revised slightly upward to 4% and 4.2%, primarily due to the prices of precious metals. Core inflation is expected to remain range bound. A new GDP and CPI series is expected to be released later this month. View: We believe this is neutral for banks and NBFCs as far as the overall policy is concerned, though the RBI explicitly did not announce any OMO like measures to boost liquidity, as they want to ensure full transmission of measures taken earlier, but an assurance to pro-actively work towards ensuring sufficient liquidity is comforting.

TOP NEWS

Hitachi Energy: Net Profit Up 90.3% At Rs 261 crore.  Revenue Up 28.5% At Rs 2,082.2 Cr. EBITDA At Rs 345 Cr. Margin At 16.6% Vs 10.3% (YoY).

The company secured orders totaling ₹2,477.6 crore in Q3FY26, up 73.7% YoY (excluding a large order from FY25). Key orders included transformers, reactors, GIS & AIS, with data centers & renewables being major contributors. Export orders grew, contributing 29.8% of total orders, with significant business from Southeast Asia & Southern Africa. - The order backlog reached an all-time high of Rs 29,872.2 crore as of December 31, 2025, ensuring strong revenue visibility. Management emphasized the company's role in powering AI-ready data centers & the sustainable energy future. The focus on grid reliability & capacity expansion in India presents significant long-term opportunities.

Data Patterns: Q3 delivers strong growth with revenue up 48%, PAT rising 31%, EBITDA surging 49%, and margins inching higher to 46.6%. rder book reached an all-time high of ₹1,868 Cr, up from ₹730 Cr at the start of the fiscal year.

Oil India: Brent crude falls by 3% overnight ahead of US Iran talks: Positive read through for Oil India and ONGC.

Axis Bank: Fitch Ratings has revised the Outlook on Axis Bank Limited's Long-Term Issuer Default Rating (IDR) to Positive, from Stable, and affirmed the IDR at 'BB+'. Fitch has also upgraded the bank's Viability Rating (VR) to 'bb+', from 'bb'. The Outlook revision is underpinned by a change in Fitch's outlook on the India banking-sector operating environment (OE) factor score to positive from stable. Positive for the bank

Va tech wabag: Revenue grew by 18.5% to Rs 961 crore. EBITDA margins expanding to 13.63% vs 12.38%. PAT grew by 30% yoy. Robust Order Intake in 9M FY26: Rs 47 billion. Order book as of Dec 2025: Rs163 billion (crossed this milestone), providing excellent revenue visibility for multiple years ahead.  Management project a 15-20% revenue CAGR over the medium term, supported by the strong order pipeline, and sustained margin profile.

RESULTS PREVIEW

*Results on 7^th February 2026

MACRO WRAP

• The DJIA, the S&P500, and the Nasdaq Composite Index fell 1.2%, 1.2%, and 1.6% respectively. The Eurostoxx 50 fell 0.8%. The Dollar Index gained 0.2% to 97.82. EUR-USD slipped 30 pips to 1.1780.
• The US 2Y yield slumped 10bp to 3.45% and the 10Y yield fell over 9bp to 4.18%. The German 10Y yield fell 2bp to 2.84%. The UK 10Y yield edged up 1bp to 4.56%.
• Brent crude oil prices fell 2.8% to USD67.55. Gold fell 3.7% to USD4,779. Silver plunged nearly 20% to USD70.92. Silver has wiped out all its gains this year and is down 1%, while gold is still up 10% year-to-date.
• ECB held interest rates steady at its first 2026 meeting, with the main rate at 2.15%. It views eurozone inflation stabilizing at 2% amid geopolitical risks. President Lagarde noted the inflation outlook is stable but warned against reacting to individual data points due to increased uncertainty.
• US job openings fell by 386,000 to 6.542 million in December 2025, the lowest since September 2020, below the forecast of 7.2 million. Declines occurred in professional services, retail, and finance across all regions. Hires and separations stayed at 5.3 million, with minimal change in quits and layoffs. Positive for Gold
• Bank of England maintained the Bank Rate at 3.75% in February with a close 5-4 vote. Inflation is above 2% but expected to decline by April. Economic and labour market weaknesses persist, and further rate cuts may depend on new inflation data. Negative for GBP
• US initial jobless claims rose by 22,000 to 231,000, exceeding expectations. Continuing claims increased by 25,000 to 1,844,000 due to winter storm disruptions. Federal claims fell by 230 to 568 amid shutdown impacts. Positive for Gold
• Data watch: Market would keep eyes on the development US-Iran talks in Oman, followed by German factory order data and US to see prelim University of Michigan consumer sentiment index for Feb (Bloomberg est. 55.0 from 56.4 in Jan).

INVESTMENT CALL

First cut: Aditya Birla Fashion & Retail (ABFRL) Q3FY26 (Consolidated) results – Beat on all fronts

·      ABFRL’s consolidated revenue grew by 7.9% y-o-y to Rs. 2,374 crore, slightly beating our expectation of Rs. 2,326 crore. Adjusting for festival and EOSS shift, Pantaloons format LTL stood at 3%. Ethnic businesses grew 20% y-o-y, with overall ethnic portfolio registering ~10% LTL growth. TMRW’s revenue was up 29% y-o-y.

·      Gross margin rose by 199 bps y-o-y to 58.8%, while EBITDA margin fell by 70 bps y-o-y to 13%, higher than our expectation of 11.1%.

·      EBITDA grew by 2.3% y-o-y to Rs. 309 crore. The company reported adjusted loss of Rs. 105 crore against a loss of Rs. 94 crore in Q3FY25. ABFRL expanded its retail footprint with ~50 gross store additions during Q3,

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

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

First cut: Astral Ltd Q3 results – Modestly weaker-than-expected performance in Q3

·        Revenue stood at Rs. 1,542 crore, up 10.3% YoY, but 2.3% below our estimates. EBITDA came in at Rs. 237 crore, up 8.1% YoY, though 2.9% below estimates, while OPM declined marginally by 32 bps YoY to 15.4%, slightly lower than our expectations. Adjusted net profit rose 8.9% YoY to Rs. 124 crore, broadly in line with our estimates..

·        Piping volumes remained flat YoY at 61,688 MT, while realizations declined ~10% YoY due to continued volatility in polymer prices. piping segment revenue increased 8.3% YoY.

·        The Paints and Adhesives business recorded healthy growth of 15.4% YoY to Rs. 470 crore.

·        Management maintained its EBITDA margin guidance, with 16–18% for the piping segment and 12–14% for the Adhesives & Paints business.

Consolidated                                                              Rs. crore

Actual vs estimates                                       Rs. crore

Stock update: Trent Q3FY26 (Standalone) result update – Revenue moderation continues; margins shine

Reco: Buy                  Reco. Price: Rs. 4,132                 Price Target: Rs. 5,220

• Trent’s Q3FY26 profitability beat estimates, with EBITDA margins rising 182 bps y-o-y to 20.4% (versus 19.4% expected) and PAT rising 40.4% y-o-y to Rs. 659 crore (against Rs. 537 crore expected). Revenue grew 16% y-o-y.
• LFL growth was marginally negative in Q3 (at low single-digits for 9MFY26). It is witnessing a gradually improving trend and the outlook over the medium term is positive.
• Store expansion is balanced between deepening density in existing Tier-I/II cities and accelerating penetration in Tier II/III cities and new micro-markets.
• Stock has fallen by 12% from recent highs and trades at 38x/31x/26x its FY26E/ FY27E/FY28E EV/EBITDA, respectively. We maintain a Buy with a revised SOTP based PT of Rs. 5,220.

Valuation (Standalone)                                                   Rs. crore

Results (Standalone)                                                                               Rs. crore                                                   

Stock update: Bajaj Finserv – One-offs hit bottom-line, respectable on growth front

Reco: Buy                  Reco. Price: Rs. 2007                Price Target: Rs. 2450

• Consolidated PAT was flat y-o-y at Rs. 2,229 crore, affected by the new labor code and high ECL provisions. Excluding these two, net profit would have risen 32% y-o-y.
• Bajaj General Insurance’s GWPs grew 12% y-o-y to Rs 7,389 crore. Ex-crop GWP growth was at 17%.
• Bajaj Life’s new business premium rose 27% to Rs3,501 crore, while GWPs rose 23% y-o-y. NBM margins rose 390 bps y-o-y to 19%.
• Results bode well for growth and we maintain a Buy rating with an unchanged PT of Rs. 2450.

Stock update: JK Lakshmi Cement result update – Capacity Expansion Remains Intact

Reco: Buy                  Reco. Price: Rs. 747                 Price Target: Rs. 930

·        Standalone revenue rose 6.1% y-o-y to Rs. 1,588 crore, slightly below estimates, while EBITDA rose 2.1% y-o-y to Rs. 206 crore, ~7% below expectations.

·        The company's phase-wise expansion plan to reach 22.6 mtpa by FY28 remains firmly on track.

·        It also aims to reduce costs to Rs. 100–120/tonne in 18-24 months.

·        We retain our BUY rating on JK Lakshmi Cement while revising our target price downward to Rs. 930, reflecting moderation in near-term performance versus our earlier estimates.

Viewpoint: Allied Blenders & Distillers Q3FY26 (Consolidated) result update – On a strong growth path

View: Positive                  Reco. Price: Rs. 515                 Price Target: Rs. 715

• Revenues grew 3% y-o-y (volumes rose 1.3%), with OPM rising ~150 bps y-o-y that led to a 15% y-o-y growth in the adjusted PAT.
• Management is targeting double-digit value growth in Q4FY26 and expects growth momentum to sustain driven by premiumisation and high double-digit P&A growth.
• Management expects FY28 OPM to be at 17-18%, supported by backward integration (up 230 bps), a better product mix, and potential benefits from the India-UK FTA (up 200 bps).
• Stock trades at 57x/43x/31x its FY26E/FY27E/FY28E earnings, respectively. We stay Positive and revise PT to Rs. 715.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore