July 30, 2026

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First Cut: Mahindra and Mahindra Ltd Q1FY27 Standalone results – Inline results

CMP: Rs. 3265              Target Price: Rs 4120              Reco: BUY

• Revenue grew 23% y-o-y and 6% q-o-q to Rs 41,959 crore on bac of strong volume growth across auto and farm divisions. Gross profit increased by 13% y-o-y to Rs. 9,264 crore while gross margin declined 200bps y-o-y and 161bps q-o-q to 22.1% on back of higher COGS (RM cost inflation)
• EBITDA grew by 7% y-o-y to Rs 5,150 crores but margins declined by 177bps y-o-y and 164bps q-o-q to 12.3% on higher other expenses despite controlled employee expenses.
• PAT grew by 7% y-o-y to Rs. 3,685 crores while PAT margins declined by 132bps y-o-y and 65 bps q-o-q to 8.8%.
• We continue to remain positive on the stock on back of strong operational efficiency, robust domestic demand, larger EV adoption and increasing exports.

TOP NEWS

MTAR Technologies Q1 (Consolidated YoY): Revenue grows 130.4% to Rs 360.7 crore Vs Rs 156.6 crore. Profit jumps nearly 5-fold to Rs 50.2 crore Vs Rs 10.8 crore. The management had said that it is confident of receiving large orders across business verticals this financial year and expects to close out the year with an order book of ₹5,000 crore, which is double the current size. Positive

Piramal Pharma reported a narrower net loss in Q1FY27, aided by strong revenue growth and a sharp improvement in operating performance across its businesses. The company posted a consolidated net loss of ₹69.39 crore for the quarter, compared with a loss of ₹81.7 crore in the same period last year. Revenue grew 17.4% year-on-year to ₹2,269.9 crore from ₹1,933.7 crore, while EBITDA surged 82.9% to ₹195.2 crore from ₹106.7 crore. EBITDA margin expanded to 8.6% from 5.5% a year earlier. Higher capacity utilization, operating leverage, pricing discipline and operational excellence supported EBITDA margin expansion. Positive

Bajaj Housing Finance Q1 FY27 Results: AUM stood at Rs. 1,49,624 crore, up 24% YoY. Disbursements Climbed 33% year-on-year to an all-time high of ₹19,509 crore, easily outpacing broader industry projection. NII stood at Rs. 968 crore, registering a 9% YoY increase from Rs. 887 crore. PPOP rose 19% YoY to Rs. 945 crore, compared with Rs. 795 crore.  PAT stood at ₹715 crore, up 23% y-o-y, around 4% on lower credit costs and stable asset quality Annualised Return on Assets (ROA) remained stable at 2.3%. Annualised ROE improved to 12.5%, compared with 11.6% in Q1 FY26. Asset quality was stable, GNPA stood at 0.29%, compared with 0.30% a year earlier. View: The company delivered a strong quarterly performance, PAT beating market estimates. Results were backed by robust disbursement growth, steady AUM expansion, stable asset quality, and lower credit costs. However, margins faced slight pressure as Net Interest Margin (NIM) compressed over the course of the quarter. Positive

Redington Q1 (Consolidated YoY): Revenue grows 34.6% to Rs 34,922.5 crore Vs Rs 25,952 crore. Profit spikes 76.5% to Rs 486 crore Vs Rs 275.3 crore. On the Resulticks Deal: Signed a 5-year strategic distribution partnership to drive AI-driven customer engagement. On Microsoft AI Project: Recognized as a Frontier Distributor within the Microsoft AI ecosystem. Positive

Vedanta Oil and Gas Q1 (Consolidated YoY): Profit stands at Rs 945 crore Vs loss of Rs 103 crore. Vedanta Oil & Gas reported a consolidated net profit of Rs. 945 crore for the Q1FY27, announced a new gas discovery in Rajasthan, and approved employee stock plans. Positive

MACRO WRAP

• Geopolitical risks returned to the forefront as US military struck multiple location in southern Iran in retaliation to Iran’s surprise attack on US bases in Jordan, while a drone also hit LNG gas tanker on the Egyptian ports yesterday.  Brent crude surged almost 8% in reaction. The brief pause in hostilities now appears to be over, with fighting spreading across Iraq, Jordan, and the Red Sea. Negotiations over reopening shipping through the Strait of Hormuz have reportedly stalled, while shipping disruptions continue to raise concerns over global energy supply. The renewed escalation largely reversed the sharp decline in oil prices seen earlier this week and reignited concerns over the inflation outlook. Sentimentally negative for Inr OMC’s and paint stocks
• The Fed kept rates at 3.50%–3.75% for a fifth meeting in July 2026, with three officials favouring a hike, leaving a September increase possible. It reported solid growth, strong productivity and investment, stable unemployment, and inflation still above the 2% target, and reaffirmed its commitment to price stability. Kevin Warsh offered little guidance but said the Fed “will not hesitate to act” and that higher rates “could well be part of the solution” to curb excessive inflation.
• US Interest-rate swaps imply roughly a 60% probability of a 25bp rate hike at the September FOMC meeting, down from levels seen prior to the Fed decision.
• The 30-year Treasury yield surged more than 10bps to 5.20%, its highest level in 19 years. In contrast, the two year Treasury yield, which is more sensitive to monetary policy expectations, declined 6bps to 4.23%. The benchmark 10-year Treasury yield rose 5bps to 4.66%, reflecting growing term-premium pressures even as markets moderated expectations for additional near-term tightening.
• The 30-year fixed US mortgage rate rose 7 bps to 6.76% in the week ending July 24, 2026, the highest since August 2025, amid higher Treasury yields and persistent inflation fears tied partly to Middle East tensions. Rates are up about 70 bps since late February, reinforcing “higher for longer” Fed expectations. Higher costs are cooling housing demand: total applications fell 6.4%, with purchases down 3.6% and refis down 9.9%.
• The DJIA, the S&P500, and the Nasdaq Composite Index fell 2.2%, 1.5%, and 1.7% respectively. The Eurostoxx 50 fell 0.7%. The Dollar Index fell 0.5% to 100.89 and EUR-USD gained 80 pips to 1.1470. The US 2Y yield dipped 1bp to 4.27% while the 10Y yield rose 7bp to 4.68%. The UK 10Y yield rose 9bp to 5.04%. Brent crude oil prices jumped 7.9% to USD90.74. Gold rose 0.9% to USD4,068.
• Data watch: The Bank of England (BoE) meets today and is expected to leave the Base Rate unchanged at 3.75%, personal income, personal spending, PCE inflation, initial jobless claims, and the advance estimate for Q2 GDP. The market consensus is at 2% qoq annualized vs 2.1% in Q1. The Atlanta Fed GDPNow forecast is at 1.6% as of 27 July 2026.
• US PCE is expected to ease to -0.1% m/m and 3.7% y/y (from 0.4% m/m and 4.1% y/y in May), while core PCE is projected at 0.2% m/m and 3.3% y/y (from 0.3% m/m and 3.4% y/y previously).

INVESTMENT CALL

Preview

PCBL First Cut: A very strong quarter

•              Company posted a solid beat, on all fronts and posted a good recovery from 4Q26 lows.

•              Carbon black was strong and saw increase in momentum, on account of strong volumes and possible pricing pass throughs.

•              Margins also recovered strongly after a very weak Q4 possibly on better product mix , though are slightly comparable YoY.

•              We currently have a HOLD on PCBL with a TP of Rs 340, more to follow after the call today.

•              Key monitorable from Call: Volume guidance, Aquapharm recovery, and how product mix is improving?

First cut Eicher Motors Ltd Q1FY27 Consolidated results – Volumes and Price mix boost ASP while margins bear brunt of macro headwinds

• Consolidated revenue increased by 31.5% y-o-y to Rs. 6,632 crore led by strong volumes growth of 24% y-o-y and 4.1% q-o-q during the quarter while average realisation improved by 5.7% y-o-y and 4.8% q-o-q. Gross margin declined by 271bps y-o-y and 287bps q-o-q to 41.5% reflecting the raw material cost inflation impacting the entire industry.
• EBITDA grew 32.2% y-o-y and 5.1% q-o-q to Rs. 1,591 crore while EBITDA margin remained relatively flat at 24%. Slower operational costs primarily in other expenses help sustain EBITDA margins.
• Although PAT grew by 21.3% y-o-y to Rs. 1,463 crore, margins declined by 185bps y-o-y and 295bps q-o-q to 22.1% on back of higher depreciation, finance costs.
• The company has approved a new greenfield capacity at Rs1,225 crore for phase one and expects capacity to increase to 2.45mn units once the plant comes online by FY30.
• VECV continues its dream run with volumes increasing 14.8% y-o-y to 24,815 units and share of Eicher’s profits increasing 6.6% y-o-y to Rs.167.5 crore.
• With ASP increases aided by prices hikes, capacity expansion to cater to booming domestic demand and increasing contribution from export Eicher cements itself as a heavyweight in the premium motorcycle category. We remain positive on the stock with a target price of Rs 8,830.

Results Highlights (Consolidated) (Rs. Cr.)

Margin Profile

Stock Update: Supreme Industries Ltd– Polymer prices stabilising; long-term outlook strong

Reco: BUY                CMP: Rs. 3,488             Target: 4,200

• Revenue grew 4% y-o-y on better realisations and a favourable product mix, even as volume fell 14% y-o-y on channel destocking.
• Q1 demand was hit by sharp polymer-price volatility; prices have since stabilised and channel restocking has begun. Management retained FY27 volume-growth guidance of 15-17% for plastic piping and 12–13% for the company, with EBITDA margin guidance maintained at 14-14.5%.
• Supreme targets total exports of ~$150 million over six to seven years (from ~US$26 million last year), prioritising markets where India has signed free-trade agreements.
• We maintain a Buy with a price target of Rs. 4,200, supported by the expected recovery in piping volumes, benefits from the Wavin integration, an expanding value-added product portfolio.

First cut: MOIL Q1FY2027 results

·         Revenue from Operations in Q1FY27 increased by 7% to ₹370.88 crore, up from ₹348.06 crore. Total Revenue: Rose by 6% to ₹391.13 crore compared to ₹370.52 crore. Profit Before Tax (PBT): Registered a 75% increase to ₹111.62 crore from ₹63.82 crore. Profit After Tax (PAT): Increased by 70% to ₹87.62 crore compared to ₹51.51 crore.

·         Manganese Ore Production: Stood at 507,605 MT, marking a 1% increase over 502,260 MT recorded in Q1 FY26. Manganese Ore Sales: Reached 369,049 MT, up by 4% from 356,196 MT in the same period last year.

·         Because of the high profits, there is a stretch in the working capital. Stock rose to ₹363.29 Cr in FY26, which meant that cash flow from operations was only ₹157.26 Cr, even though the company made a net profit of ₹267.48 Cr. For every 100 naira in earnings, only 59 naira were paid out in cash.

·         Operating margins rose to 36.6% (up 1390 bps) from the previous year. The main mining segment produced strong results, generating ₹360.08 Cr.  However, the manufactured products segment fell 71.1% to ₹8.46 Cr due to factory shutdowns for repairs. Although temporary, this stoppage lowers product mix.

·         View: MOIL have reported performance beating estimates in Q1FY27 as the headline numbers show a massive jump driven entirely by strong realisations in the core mining segment. We will review our estimates and send a detailed note. Currently, we have a buy rating on the stock.

OTHER NEWS

Mahindra and Mahindra: Mahindra Truck and Bus Division to subsidiary SML Mahindra for ₹525 crore, creating a unified commercial vehicle entity. The formal business transfer agreement is expected by August 7, 2026, with full transaction closure targeted for January 31, 2027. The move consolidates light, intermediate, and heavy trucks alongside buses into SML Mahindra, lifting shares by 20% following the announcement.

Shyam Metalics: Company has commissioned a new 1.5 MTPA Beneficiation Plant in Sambalpur, Odisha, with a capital investment of Rs. 150 Crore. This facility processes low-grade ore into high-grade feedstock for its downstream operations. It aims to improve resource efficiency and boost operating margins by reducing reliance on external raw materials.

ACME Solar Holdings Q1 (Consolidated YoY): Profit soars 80% to Rs 235.3 crore Vs Rs 130.8 crore. Revenue jumps 67.8% to Rs 857.5 crore Vs Rs 511 crore. Strong quarter

TBO Tek Q1 (Consolidated YoY): Profit rises 32.4% to Rs 83.4 crore Vs Rs 62.9 crore. Revenue surges 81.1% to Rs 925.8 crore Vs Rs 511.3 crore, strong quarter.

Vedanta Iron and Steel released its Q1 FY27 results, showing Revenue of Rs. 3,662 Crore (+18% YoY) and EBITDA of Rs. 515 Crore (+54% YoY). PAT turned positive to Rs. 121 Crore compared to a loss of Rs. 145 Crore in Q1 FY26. Higher production volumes in pig iron and iron ore drove performance. Management highlighted improved margins and a 55% reduction in finance costs due to debt restructuring.

Balkrishna Industries: reported a strong performance for the first quarter of the financial year, with consolidated net profit rising 56.4% yoy, aided by robust revenue growth and improved operating margins. The company's consolidated net profit stood at Rs 451 crore in Q1FY27, compared with Rs 288 crore in Q1FY26. Revenue from operations increased 25% to Rs 3,455 crore, up from Rs 2,760 crore a year ago. Operating performance also improved during the quarter. The company's board declared a first interim dividend of Rs 4 per equity share (200% on the face value of Rs 2 each) for FY27. August 4, 2026, has been fixed as the record date.

Dabur India Q1 (Consolidated YoY): Profit rises 15.3% to Rs 586.2 crore Vs Rs 508.3 crore. Revenue increases 10.6% to Rs 3,764.4 crore Vs Rs 3,404.6 crore driven by steady demand and judicious price hikes countering raw material inflation. India FMCG business reports 9.5% growth with underlying volume growth of 5%. International business grew by 15.5% in rupee terms, led by strong performances in Bangladesh (34.3%) and Egypt (28.4%).

Waaree Energies Q1 (Consolidated YoY): Profit grows 14.1% to Rs 850.2 crore Vs Rs 745.2 crore. Revenue zooms 79.2% to Rs 7,931.8 crore Vs Rs 4,425.8 crore

Quess Corp Q1 (Consolidated YoY): Profit soars 60.9% to Rs 81.9 crore Vs Rs 50.9 crore. Revenue grows 14.5% to Rs 4,181.7 crore Vs Rs 3,651.4 crore

Chalet Hotels Q1 (Consolidated YoY): Profit tanks 57.6% to Rs 86.1 crore Vs Rs 203.2 crore. Revenue falls 42.7% to Rs 512.3 crore Vs Rs 894.6 crore

Hirect: Hirect has secured its first order from the United States for traction motor assemblies, marking its initial entry into the U.S. market. The order is scheduled for delivery during FY27