January 28, 2026

LATEST NEWS/UPDATE

>> 2:23 PM

First cut: Bharat Electronics Ltd Q3FY2026 results – Strong upbeat on all fronts

·         Revenues for Q3FY26 grew by 24% yoy to Rs 7,154 crore strongly above our estimates of Rs 6,983 crore.

·         The operating margins were up by 80 bps to 29.7% vs our expectations of 29.0%. Lower other expenses led to improvement in margins.  Improvement in margins led the PAT to increase by 21% to Rs 1,580 crore vs expectations of Rs 1,536 crore.  

·         View: BEL had showed a strong growth in topline and margins . We shall review our earnings estimates and come out with a detailed note post the conference call. Currently we have a Buy rating on the stock.

Results (consolidated)                                                                                             Rs crore

  Actual vs. estimates                                                                       Rs. Crore

TOP NEWS

EU trade deal:  India and the European Union have signed a free trade agreement that both sides have hailed as “the mother of all deals”. This has came after almost 2 decades and during a geoeconomic crisis triggered by United States President Donald Trump’s trade war. The deal between India and the 27-nation EU represents a combined market of nearly $27 trillion and about 25 percent of the global gross domestic product (GDP). The final draft of the trade agreement must still pass legal scrutiny in Brussels and New Delhi and may only become operational next year.

Benefitting India: The EU will scrap all tariffs on 90 percent of Indian goods, and within seven years, that will be extended to 93 percent of Indian goods. Among those benefitting from zero tariffs immediately are marine/seafood products, such as shrimp and frozen fish (currently levied at up to 26 percent); chemicals (12.8 percent); plastics and rubber (6.5 percent); leather and footwear (17 percent); textiles (12 percent); apparel (4 percent); base metals (10 percent); and gems and jewellery (4 percent).

Stocks Likely to Benefit Indian export-oriented stocks in gaining sectors may see upside:

• Textiles: Welspun Living, KPR Mill, Trident, Arvind, Vardhman Textiles, Indo Count Industries and Gokex
• Pharma: Sun Pharma, Dr Reddy's, Lupin, Aurobindo Pharma, Torrent Pharma.
• Gems & Jewellery: Goldiam International, Vaibhav Global.
• Marine Products: Avanti Feeds, Apex Frozen Foods.
• Leather/Footwear: Relaxo Footwears.
• Chemicals: SRF, Jubilant Ingrevia.

Hindalco Industries Ltd, Aditya Birla Group's metals company announced a major smelter expansion of its aluminium operations in Odisha on Tuesday, 27 January. The company plans to invest ₹21,000 crore in smelter expansion at its Aditya Aluminium complex in Sambalpur, and to commission a 1.7 lakh-tonne-per-annum Flat Rolled Products (FRP) and battery-grade aluminium foil manufacturing facility with a ₹4,500 crore investment. Hindalco’s broader growth capital expenditure plan, with approximately ₹37,000 crore allocated for Odisha's upstream and downstream aluminium operations.(Remains positive for the long term)

Hindustan Zinc/Vedanta Ltd. approves to sell 67 million shares, or a 1.59% stake, in Hindustan Zinc Ltd. via an offer for sale on the stock exchanges, according to a filing.(Neutral)

Spandana Sphoorty Q3 Micro lender cuts losses to ₹83 crore as NII rises 13% : The company reported a net loss of Rs. 83 crore for Q3FY26, significantly lower than the Rs. 218 crore loss recorded in the year-ago period. NII rose 12.7% y-o-y to Rs. 94.5 crore. AUM stood at Rs. 3,948 crore at the end of the quarter, marking a 3% decline from Rs 4,088 crore in Q2FY26, while disbursements grew 27% q-o-q to Rs. 1,188 crore. Asset quality showed marked improvement, with GNPA falling to 2.60% from 4.97% in September 2025, and net NPA at 0.50%.  The company reported loss in the quarter, however healthy performance on all counts in terms of NII, asset quality along with narrowing loss.

RVNL: The company has received a Rs.242.5 crore order from South Central Railway to upgrade the railway electric system on the Ongole–Gudur route.

RESULTS PREVIEW

STRONG RESULTS

Bikaji Foods Q3FY26: Revenue up 10.7% y-o-y to Rs 790 crore, with volume growth of 8.4% y-o-y. EBITDA grew 77.1% y-o-y to Rs. 98 crore with a margin of 12.5% (up 466 bps y-o-y) due to favorable raw material prices. Net Profit at Rs 62.2 crore versus Rs 28.8 crore. To invest Rs 50 crore in Bikaji Foods Retail. Stock is not in our coverage

PC Jeweller Q3FY26: Revenue up 36.9% at Rs 875 crore. Ebitda up 79.7% at Rs 202 crore. Margin at 23% versus 17.5%. Net Profit up 28.48% at Rs 190 crore. To open 100 franchise showrooms in 12–18 months. Stock is not in coverage

Vishal Mega Mart: Revenue from operations stood at Rs. 36,70.4 crore, y-o-y growth of 17.0%. Adjusted SSSG stood at 9.6%. Adjusted EBITDA (pre-INDAS 116 and pre-ESOP charges) stood at Rs. 4,68.5 crore (12.8% margin), y-o-y growth of 18.8%. PAT stood at Rs. 3,12.9 crore (8.5% margin), y-o-y growth of 19.1%. In Q3, 29 stores were added. Stock is not in coverage

Bondada Engineering: Revenue from Operations stood at Rs 7,12 crores up 89.4% YoY - EBITDA stood at Rs 85 crores up 121.5% YoY - EBITDA Margin stood at 11.9% up +173 bps YoY - Net Profit stood at Rs 54 crores up 119.1% YoY.

Prime Focus: Net Profit at ₹709 Cr vs loss of ₹602 Cr (YoY) — strong turnaround. Revenue rises to Rs 11.92 Cr vs Rs 8.9 Cr (YoY). EBITDA jumps to Rs 3.89 Cr vs Rs 1.74 Cr (YoY) EBITDA Margin expands sharply to 34.41% vs 19.55% (YoY).

Motilal Oswal Financial Services Ltd posted a resilient performance in the Q3FY26: The company reported its highest-ever operating profit PAT of Rs. 611 crore in Q3FY26, up 16% y-o-y  and 10% q-o-q. Total PAT, including treasury and OCI gains, surged 58% y-o-y to Rs. 721 crore, underlining the strength of its diversified business model. Performance was led by strong momentum in asset and private wealth management. The asset management business saw PAT jump 65% y-o-y to Rs. 227 crore, with total AUM rising 33% to Rs. 1.89 lakh crore. Mutual fund AUM grew 40%, while private alternatives expanded 62%. Private wealth management reported PAT of Rs. 82 crore, with AUM up 31% y-o-y to Rs. 1.96 lakh crore, supported by steady net inflows and improved relationship manager productivity. Capital markets PAT grew 15% y-o-y Rs. 70 crore. The board declared an interim dividend of Rs. 6 per equity share for FY26. Healthy Quarter

MACRO WRAP

• The DJIA fell 0.8% while the S&P500 and the Nasdaq Composite Index rose 0.4% and 0.9% respectively. The Eurostoxx 50 rose 0.6%. The Dollar Index fell 0.9% to 96.22, approaching its lowest level since February 2022. EUR-USD rose above the psychological 1.20 level for the first time since June 2021.
• The US 2Y yield dipped 2bp to 3.57% and the 10Y yield rose 3bp to 4.24%. The German 10Y yield edged up 1bp to 2.88%. The UK 10Y yield rose 3bp to 4.53%. Brent crude oil prices jumped 3.0% to USD67.57. Gold rallied 3.4% to USD5,180.
• The focus today turns to the Fed meeting. The Fed is expected to leave the Fed funds target range unchanged at 3.50-3.75%. The focus will be Fed Chair Jerome Powell’s press conference and guidance on the timing for the next Fed rate cut. The Fed funds futures are only fully pricing in the first rate cut in July 2026. They are pricing in a total cut of 49bp by year-end and no change in 2027.
• The US dollar sank to a near four-year low of 95.80 against the major currencies on Tue, as traders kept watch for possible coordinated currency intervention by US and Japanese authorities and following comments from Trump, US President Donald Trump said he was not concerned with the currency’s decline.  Positive for Gold/silver
• The finalized EU-India trade deal creates a free trade zone covering a quarter of global GDP and two billion people after nearly 20 years of negotiations. It aims to open markets amidst US tariffs and Chinese controls, with the EU expecting exports to India to double by 2032. Sentimentally positive for broader market.
• The ADP reported that US private employers added an average of 7,750 jobs per week (four-week moving average, seasonally adjusted) for the four weeks ending 3 Jan. Job gains have edged down for a third consecutive week from 8,000 the prior week and 11,000 two weeks earlier.
• Data watch: US Fed rate decision.

INVESTMENT CALL

First Cut: Sunteck Realty Q3FY26 Consolidated Results – Pre-sales Momentum Continues; New Andheri Project Bolsters Portfolio

·         Pre-sales increased 15.6% YoY to Rs.734 crore, driven by steady demand across ongoing premium and mid-income projects. However, collections declined 5.1% YoY to Rs.319 crore

·         Consolidated revenue stood at Rs.344 crore, up 113% YoY, EBITDA grew 68.5% YoY to Rs.82 crore, while EBITDA margin contracted by 622 bps YoY to 24%.

·         Net profit rose 34% YoY to Rs.57 crore.

·         Business development (BD): The company acquired a 1.75-acre land parcel at Andheri, near the International Airport, Mumbai. The project carries an estimated GDV of ~Rs.2,500 crore, further strengthening its presence in Western Mumbai.

Results (Consolidated)                                                                     Rs cr.

First Cut: Mahindra Logistics Q3FY26 Consolidated Results – Net profit turns positive after 11 straight quarters.

• Consolidated revenue rose 19.1% YoY to Rs.1,898 crore, supported by broad-based traction across 3PL, Freight Forwarding, Mobility, and Express businesses.
• Segment wise – Contract logistics/B2B Express/Freight Forwarding/Last Mile Deliver/Mobility/ revenue 19.7%/30.5%/31.7%/-20.8%/37.8% y-o-y.
• EBITDA margin expanded by 79 bps YoY to 5.4%, reflecting operating leverage, automation-led productivity gains, and cost discipline.
• Adjusted PAT came in at Rs. 10.6 crore, marking first positive quarter after 11 consecutive quarters of losses driven by sharper execution, stronger cost discipline, and a more focused growth strategy.
• We have a Buy rating on the stock and will provide a detailed update following our interaction with the management later today.

Results (Consolidated)                                                                     Rs cr.

First cut: Marico Q3FY26 (Consolidated) results – In line performance

·       Marico’s consolidated revenue grew by 26.6% y-o-y to Rs. 3,537 crore, in-line with our expectation of Rs. 3,527 crore. India business revenue grew by 28% y-o-y (8% volume growth), while international business revenue grew by 21% y-o-y on CC terms. Over 95% of the business gained/sustained market share and ~80% of the business gained/sustained penetration. Parachute Rigids reported volume decline of 1%, while revenue grew by 50%. Value-Added Hair Oils delivered a stellar quarter, recording 29% value growth. Saffola Edible Oils had a soft quarter, with flat revenue growth and marginal decline in volumes. Foods grew 5% y-o-y, while premium personal care, including the Digital first portfolio, sustained its accelerated growth momentum.

·       Gross margin and OPM fell by 596 bps y-o-y to 43.5% and 234 bps y-o-y to 16.7%, respectively owing to unprecedented hyperinflation in input costs. OPM came in line with our expectation of 16.8%.

·       Operating profit grew by 11.1% y-o-y to Rs. 592 crore. In line with operating profit growth, adjusted PAT grew by 13.3% y-o-y to Rs. 460 crore against our expectation of Rs. 461 crore.

·       View: We shall review our earnings estimates and 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

Stock update: Godrej Consumer Products Q3FY26 (Consolidated) result update – India and AUM drive Q3; Indonesia stabilising

Reco: Buy                  Reco. Price: Rs. 1,174                 Price Target: Rs. 1,460

• GCPL’s Q3FY26 consolidated revenues grew 9% y-o-y (volumes grew 7% y-o-y), OPM rose 142 bps y-o-y to 21.5% and adjusted PAT increased by 12% y-o-y.
• The management maintained guidance of high single-digit consolidated revenue growth in FY26, with 6-7% y-o-y volume growth in India business.
• India business OPM guidance maintained at 24-26% for the near term. Despite temporary macroeconomic and pricing pressures in Indonesia and LatAm, management is confident of sustained profitability momentum by FY27.
• Stock trades at 54x/45x/39x its FY26E/FY27E/FY28E EPS, respectively. We maintain a Buy with a revised PT of Rs. 1,460.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

Stock Update : APL Apollo Tubes – Guidance raised; demand, margin drivers intact.

Reco: BUY                Reco. Price: Rs. 2,061            Price Target: 2,460

·         Consolidated revenue rose 7% y-o-y to Rs 5,815 crore, while EBITDA surged 36.5% to Rs 471.8 crore.

·         Sales volumes grew 10.7% to 917 kt, and EBITDA/tonne increased 22.3% to Rs 5,145.

·         Management upgraded FY26 guidance - volume growth to ~20% (from 10–15%) and EBITDA/tonne to Rs 5,500 minimum (from Rs 4,800–5,000). Capacity expansion is on track to reach 8 mtpa by FY28 and 10 mtpa by FY30.

·         We maintain a Buy rating with a revised target price of Rs 2,460, driven by higher guidance, capacity ramp-up, and structural demand.

Consolidates                                                          Rs. In crore

Stock Update : Ultratech Cement– Robust Q3 beats estimates.

Reco: BUY                Reco. Price: Rs. 12,368            Price Target: 14,800

·         Consolidated revenue stood rose 22.8% y-o-y to Rs. 21,830 crore on a 28% y-o-y volume growth (excl ICL), while Adj volume grew by 15% y-o-y; EBITDA/tonne rose to Rs. 1,007 (+5.7% y-o-y), aided by operating leverage

·         Revenue/EBITDA/PAT beat estimates by 5.8%/11%/21%, respectively. Grey cement capacity at 188.8 mtpa and is on track to add another 8-9 mtpa in Q4.

·         Q4 expected to be stronger than Q3, on robust demand, company will operate at over 90% at its existing installed capacity.

·         We maintain a Buy with a revised price target of Rs. 14,800, backed by strong growth visibility and margin recovery.

Consolidated                                                  Rs. in crore

Stock Update : Generics drive growth in Q3, Awaiting further scale up in CDMO 

Reco: Hold                Reco. Price: Rs. 1,000                Price Target: 1,101

·         Generic formulations revenue drove growth, segment rose ~37% y-o-y

·         Margins now back in ‘high-20s’, on a better mix (more CDMO and higher-value generics) and improved cost absorption. ROCE improved to ~18.5%, indicating better asset productivity as new capacities start contributing.

·         CDMO business continues to scale up and can significantly add to bottomline in 2-3 years.

·         With improving asset utilisations, we value the stock at 47x on FY28E earnings of 23.4 and retain the Hold rating with a PT of Rs.1,101.

Results (Consolidated)                                                                     Rs cr.

OTHER NEWS

Titagarh Rail Systems : Titagarh Rail Systems and ABB India have signed an agreement to jointly develop and supply propulsion systems for 25kV driverless metro trains in India, with a strong focus on technology transfer and local manufacturing under the Make in India initiative.Under this deal, ABB will provide propulsion technology and transfer Train Control & Monitoring System (TCMS) know-how for 25kV metros, while gradually shifting the manufacturing of traction motors and converters to India. The agreement supports Titagarh’s ₹MMRDA metro order of 240 coaches for Mumbai Metro Lines 5 and 6, including maintenance. This partnership significantly boosts localisation, backward integration, and self-reliance (Atmanirbhar Bharat) in advanced metro technologies.

Caplin Point Laboratories Limited : The company’s subsidiary, Caplin Steriles Limited, has received final USFDA approval for Methylprednisolone Acetate Injectable Suspension USP in 40mg/mL and 80mg/mL strengths, a generic equivalent of Pfizer's DEPO-MEDROL. The anti-inflammatory treatment targets a $57.4 million US market opportunity and addresses multiple therapeutic areas including allergic states, dermatologic diseases, and respiratory conditions

Metro Brands Q3 (Consolidated YoY): Profit zooms 35.7% to Rs 128.4 crore Vs Rs 94.6 crore. Revenue jumps 15.4% to Rs 811.3 crore Vs Rs 703.1 crore.  Strong quarter

Life Insurance Corporation of India: The insurer said it has invested in 5.12 lakh debentures issued by Bajaj Finance Ltd, each with a face value of Rs. 1 lakh, taking the total investment to Rs. 5,120 crore.