Bernstein on Trent
O-P, TP Rs 5000
3Q26: Robust margins delivered; development revival nonetheless loading
Progress challenges, however was recognized since enterprise replace
Community development is regular.
Margin enchancment trajectory stabilizes and is sustainable.
Worker Prices leverage has performed out and can rely on SSSG revival from right here on.
Jefferies on Trent
Maintain, TP Rs 4575
3Q rev development was at a multi‑qtr low (recognized from pre‑qtr launch), however margins drove an EBITDA shock.
Destructive style LFL was partly attributable to shift within the festive calendar, a development additionally noticed throughout different retailers.
Mgmt stays centered on growth in current & new markets.
Regardless of sharp inventory correction, favor to remain on the sidelines till there’s clearer proof of a sustained restoration
Like enhancing disclosure requirements
CITI on Trent
Promote, TP Rs 4350
Whereas income development was broadly in-line with Citi est, EBITDA/adj PAT development of 27%/40% YoY was 6%/27% forward of Citi est – the standard of beat implies profitability/margin could not maintain. Beat on EBITDA was led by GM growth (+29bps YoY to 45% vs Citi est of 43.8%; improved YoY after 5 consecutive qtr of decline) whereas beat on PAT was additional fueled by 201% YoY development in different revenue
See danger to margins given GM growth is just not sustainable (resulting from altering enterprise combine) and worker and lease price development development within the final 4qtr has been solely -7% to three% and 0-7% respectively vs space development of 38-43% YoY.
GS on Trent
Impartial, TP Rs 4530
Gross margin led EBIT beat
Working price advantages doubtless behind, 4Q profitability to be underneath stress
Destructive LFL development in 3Q a danger to FY27-28 development and margin est.
UBS on Trent
Purchase, TP Rs 5300
Q3 manages to shock on earnings positively
Regardless of weaker topline (and -ve SSSG), delivers robust margin growth
Trent continues to pursue its core development technique
Est. c22% income development for FY27E, which may nonetheless carry upside danger if demand situations additionally enhance, whereas Trent continues to resolve for its personal operational excellence.
Nuvama on Trent
Maintain, TP Rs 4543
Standalone income/EBITDA/adjusted PAT development of 16%/28%/19% YoY in Q3.
Working deleverage resulting from unfavourable LFL throughout Q3 was offset by gross margin enchancment (+29bp) probably resulting from beneficial combine in favour of Westside and decrease worker price (-73bp). Administration did point out that each one advantages of automation at the moment are realised, implying productivity-led margin enchancment going forward, which has been underneath stress from previous 12 months
Hire (mounted & variable) development at 17% YoY was in step with income development.
Jefferies on IT
Anthropic’s Cowork plug‑ins and Palantir’s claims of quicker SAP migrations spotlight how AI may probably erode software service revenues for IT corporations.
With software providers being 40-70% of revenues, IT corporations face development pressures.
Consensus development estimates don’t absolutely mirror this, posing draw back danger to valuations
Reiterate selective stance & favor HCLTech/Infosys amongst massive IT & Coforge/Sagility amongst smidcaps
Macquarie on IT sector
AI influence issues overdone
Imagine there is no such thing as a vital income disruption danger
Indian IT Providers corporations usually cater to massive enterprise prospects with multi nation operations who’ve extraordinarily complicated SAP environments
Giant-cap India IT Providers corporations have vital income publicity to Enterprise Useful resource Planning (ERP) instruments like SAP and Oracle
Nevertheless, most India IT Providers corporations now not disclose their income from ERP
CITI on IT
CTSH 4Q25 earnings & CY26 Steering — 4Q Revenues of $5.3b, +4.9% yoy .
Income development in cc got here in at +3.8% yoy – high 6 Indian IT had reported flattish cc yoy development.
CY25 income got here in at $21.1b, up 6.4% cc yoy (consists of ~260bps from Belcan acquisition).
Adj. EBIT margins got here in at 16% in 4Q. Cognizant expects cc income development of +4% to +6.5% yoy in CY26, which incorporates inorganic contribution of ~150bps.
1Q26 cc income steering represents +2.7% to +4.2% qoq development in cc (consists of ~100 bps from acquisition).
CY26 EBIT margin steering at 15.9% to 16.1% (growth of 10-30bps yoy).
NSEIT has underperformed NIFTY by 24% in previous 12m; stay cautious
Nomura on Cognizant
Beat in 4Q FY25, robust deal wins to help development Firmly establishing itself within the winner’s circle
FY26E steering affordable within the face of macro uncertainties
Margin restoration continued underneath NextGen initiative
Macquarie on Devyani
O-P, TP Rs 160
Sustaining Jan pickup in identical retailer gross sales is vital
3Q Ebitda beneath est
appreciated: 1) optimistic identical retailer gross sales development witnessed in Jan throughout codecs besides Pizza Hut;
2) profitability enchancment in lately acquired manufacturers/ Vaango with break-even in Biryani by Kilo format achieved earlier than the Mar-26 goal;
3) wholesome sequential gross margin restoration throughout codecs, which Devyani expects to maintain; and
4) wholesome development in worldwide codecs
Didn’t like:
1) the continued margin weak spot throughout most codecs in India;
2) larger India overheads albeit firm expects this to stabilise at 5% of gross sales going ahead; and
3) the cautious outlook on demand pickup in Jan sustaining in 4Q, given historical past of false begins
Jefferies on Devyani
Improve to Purchase, TP Rs 145
Co introduced elevation of Manish Dawar from CFO to CEO wef Apr-26 – whereas this ensures management continuity, anticipate new CEO to take a tough have a look at enterprise & put the franchise again on a sustainable development path
Chairman additionally indicated that PH turnaround is underway; Jan-26 additionally began on a optimistic observe (SSSG) for all manufacturers (ex-PH)
Introduced merger with Sapphire could contain ST uncertainty however view as a LT optimistic
Bernstein on Devyani
O-P, TP Rs 160
New CEO begins an extended highway to restoration for the franchise
Reported +12% YoY consol. income development in 3Q26, with 40% development resulting from current acquisition of Sky Gate (Biryani By Kilo and Goila Rooster manufacturers)
Remainder of India enterprise income development continued to be weak – with KFC India (+6%), PH India (-6%), Vaango (+3%) and Franchisee manufacturers (+9%).
Nevertheless, margins weakened throughout board with larger supply prices and de-leverage influence.
Consol model contribution margins fell to 13.9% (-40 bps YoY), with India enterprise BC margin at 13.1% (-80 bps YoY).
CITI on Devyani
Purchase, TP Rs 192
Income grew by 11% YoY (2% above Citi est.) whereas EBITDA grew by 3% YoY (8% above Citi est.).
KFC witnessed enchancment in SSG (-2.9% in 3Q vs -4.2% in 2Q) regardless of the partial shift of festive from 3Q to 2Q.
Administration highlighted: (a) early indicators of consumption enchancment – DIL noticed optimistic SSG throughout all its manufacturers (ex-Pizza Hut) in Jan; (b) initiative/experiments on promotions/offers and altered in technique for on-line and offline enterprise driving enchancment in SSG; (c) biryani by kilo achieved model EBITDA BEV forward of its goal.
GS on Devyani
Purchase, TP Rs 160
Firm noticed optimistic SSSG in January, however will wait to name out restoration
KFC SSSG beneath estimates, EBITDA in line
Gross margin beat throughout codecs
India income in line, EBITDA beat as BBK achieves break even forward of steering
JPM on Westlife
OW, TP lower to Rs 560
Q3 EBITDA forward of estimates whilst income was in-line.
SSSG at -3.2% stayed subdued, although tendencies improved sequentially with optimistic SSSG in Jan month
Retailer openings had been a tad mushy at 10 (vs 15 in Q3FY25, 2 closures), however WESTLIFE is assured of opening 20-25 shops in This autumn & reiterated its goal of 580-630 shops by CY27.
Macquarie on Westlife
O-P TP Rs 600
3Q EBITDA beat on decrease royalty payout
Preferred
1) positive-same-store gross sales development seen in January;
2) normalisation of the third-party aggregatory supply enterprise in 4Q;
3) wholesome traction within the dine-in enterprise on worth choices and improvements.
Nevertheless, didn’t like incapability to extrapolate decrease royalty prices in 3Q & issues that January restoration is probably not sustained given prior false begins in trade
MS on Adani Vitality Options
Provoke OW, TP Rs 1133
AESL has massive scale, a robust execution report, and diversified earnings development levers throughout transmission, distribution and good meters
Earnings outlook has upside as AESL wins extra good meter contracts & as distribution alternative opens for personal sector
Challenge EBITDA CAGR of 21%, F25-30e
Transmission: AESL targets 20-25% share; EBITDA CAGR: 30%, F25-28e
Distribution: AESL targets 20% share in parallel licensing.
Sensible metering: AESL targets 20% share; 9% of F28e EBITDA.
Nomura on Cummins
Purchase, TP Rs 4780
Income down 1% y-y, +1%/-2% vs our/consensus estimates
EBITDA +6%/-9% y-y/q-q, as weaker working leverage offset gross margin growth
Administration sees resilience in home demand led by sustained capex throughout key sectors
Whereas exports face near-term stress resulting from geopolitical uncertainties, administration expects better stability over the medium to long run
Administration stays watchful on coverage developments and sees continued collaboration with key commerce companions as a key enabler of development throughout finish markets
KKC is sustaining execution self-discipline together with prudent capital allocation, robust price controls, a wholesome stability sheet, & a sturdy money stability
UBS on Cummins
Promote, TP Rs 3400
Q3FY26 – Rev down 1%; EBITDA up 6percentYoY, margins at 20.8%; rev/EBITDA miss of two/1% vs road.
GMs wholesome at 37.9% (+309/+133bps YoY/QoQ) and EBITDA at 20.8%(+133/– 115bps YoY/QoQ).
Exports gross sales +2%/-14percentYoY/QoQ; home -2%/-2percentYoY/ QoQ.
9M income/EBITDA up 16%/26% YoY.
Leads to-line; inventory response hinges on mgt commentary
MS on HAL
Downgrade to UW from EW. TP lower to Rs 3355 from Rs 5092
HAL has outperformed Nifty by 4% YTD & consensus P/E is down 15% in previous 12 months
See draw back danger to inventory given elevated personal sector competitors & if slower execution persists resulting from excessive import dependance as a number of nations look to extend defence spend.
decrease our EPS by 2% & 5% for F27 & F28e
JP Morgan On Hindustan Aeronautics
Advice Obese, Goal Value ₹6004
Out of the AMCA bid – can’t have all of it
This occasion is unfavourable for HAL, however was largely anticipated
That is given the necessity for a fast-track growth of AMCA
HAL’s already massive order guide (7x income) and a delay in supply of the LCA Mk1A
After immediately’s correction valuations look enticing
Imagine HAL has an ample alternative to win massive orders, excluding the AMCA
CITI on India Protection Manufacturing
AMCA shortlist introduced as per press stories
L&T-Bharat Electronics JV amongst shortlisted consortia
Tata Superior Techniques and Bharat Forge-BEL additionally shortlisted
Last winner to be chosen submit RFP and prototype analysis
HAL not shortlisted for subsequent stage
No influence on HAL current order backlog
Goldman Sachs on Photo voltaic Industries
Preserve Purchase; goal value ₹18,900
Q3FY26 efficiency forward of estimates and consensus
Protection income to select up in This autumn led by Pinaka execution
Worldwide enterprise to profit from Africa mining traction
India non-defense volumes seen at 10–12% income ~15%
EPS CAGR of 20%+ seen possible on robust order guide
EPS estimates raised 2–3% for FY26–28
Nuvama on Photo voltaic Ind
Purchase, TP Rs 15800
Regardless of delayed Pinaka deliveries, Photo voltaic Industries (SOIL) reported an in-line Q3FY26 versus Road led by Worldwide (+35% YoY) and Defence (+72% YoY) income development with OPM at 27.8% (versus Road estimate of 26.1%).
Administration reiterated FY26 income steering of INR100bn (30% defence combine) and 27% OPM.
Commercialisation of 155mm shell and Pinaka supply pickup stay key catalysts.
Jefferies on Emcure Pharma
Purchase, TP Rs 1780
Delivered an all spherical beat with Gross sales/PAT development of 20%/50% YoY.
India grew 15% YoY whereas exports grew 25% YoY.
Mgmt commentary was bullish and indicated development momentum ought to stay robust in coming years as effectively
Emcure banks on complicated launches, injectable platform, biosimilars and in-licensed portfolio to drive mid to long run development
Enhance FY26-28 EPS by 2-4%.
Jefferies on DR Agarwal’s Healthcare
Maintain TP Rs 470
Dec-Q numbers had been broadly in-line with estimates with gross sales/EBITDA development of 23%/26% YoY.
Middle growth continues in step with steering and is on monitor so as to add 53 amenities in present fiscal.
Throughout Qtr, quantity development was strong at 11% and low teenagers SSSG development.
Premiumization development offered a robust increase to case combine and better worth per surgical procedure.
Jefferies on Emami
Purchase, TP Rs 650
Reported c9% quantity development, a optimistic – a part of this was led by larger grammage (LUPs) to go on GST cuts.
Some elements of the portfolio nonetheless witnessed decline, however this was greater than made up by a robust efficiency in different segments.
Administration sounded optimistic in its demand outlook, esp on rural India.
General margins had been additionally forward, which primarily drove the earnings shock
Elara on Kansai Nerolac Paints
Accumulate, goal value ₹2440
Q3 income miss led by weak ornamental demand
Industrial coatings robust pushed by auto and infra
Prolonged monsoon and shorter festive season hit development
This autumn ornamental development seen mid single digit
Margin steering maintained at 13–14%
Earnings lower for FY27–28 on decrease topline
Valuation rolled ahead to 25x FY28 PE
Morgan Stanley on Aptus Worth Housing Finance
Obese, goal value ₹420
3QFY26 adjusted PAT beat by 5% ROE at 20%
Mortgage unfold at 8.9% different revenue above estimates
AUM development 21% YoY administration guides 20–21% for FY26
Festive season led to larger stress formation QoQ
Valuation enticing at ~13x NTM PE vs friends regardless of superior ROE
Citi on Aptus Worth Housing Finance
Preserve Purchase; goal value ₹350
Credit score price elevated at 56bps resulting from aggressive write-offs
AUM development moderated to 21% YoY
Spreads steady aided by decrease price of funds
ROA and ROE stay wholesome
Progress steering trimmed however medium-term outlook intact
Nuvama on Restaurant Manufacturers Asia
Maintains Purchase | goal value ₹75 (earlier ₹81)
Gross margin growth aided by supply-chain efficiencies and decreased supply discounting
Margin goal achieved forward of earlier FY29 timeline
Pre-Ind-AS EBITDA margin improved to 7%, highest since itemizing; resulting from gross margin beneficial properties and working leverage
India enterprise delivered robust development; supply portfolio margins improved ~200 bp
44 shops added in Q3, taking whole to 577; steering maintained at 60–80 shops yearly
Indonesia enterprise remained weak with 4% YoY income decline
Burger King ADS enhancing however EBITDA unfavourable resulting from larger advertising and marketing spend
‘Popeyes’ continues to face scale and profitability challenges
FY26E/27E income revised by +0.4%/+1.1% and EBITDA by -6.5%/-3.2% primarily based on YTD FY26 efficiency
Nuvama on Pidilite Industries
Preserve Purchase with goal value of ₹1,915 (earlier ₹1,895)
Firm income and revenue grew strongly 12 months on 12 months
Progress was pushed primarily by the home enterprise
Building and adhesives phase confirmed stable demand
B2B home gross sales elevated at a wholesome tempo
Waterproofing and tile adhesive classes grew effectively
Export enterprise declined sharply resulting from weak markets
Nuvama on TeamLease Providers
Maintains Purchase | goal value ₹2,400 (earlier ₹2,600)
Q3FY26 income impacted by headcount decline in Common Staffing
Specialised Staffing income development supported by GCC demand; GCCs now contribute 65% of Specialised staffing income
EBITDA margin in step with estimates; Common Staffing margin improved sequentially
Specialised Staffing margin moderated QoQ
Adjusted PAT (excluding labour code influence) stood at ₹483 mn; larger different revenue from tax refunds aided earnings
Administration expects Common Staffing headcount restoration over the subsequent two quarters; full restoration assumed by end-H1FY27E
FY26E/27E EPS revised by +7.9%/-4.0%
Morgan Stanley on Apollo Tyres
Advice Equal-weight; Goal ₹542
Q3 – According to consensus; a contact beneath estimates
Indian enterprise margins had been weaker than anticipated, however EU enterprise was stronger
Firm has additionally introduced its FY29 capability growth plans
Proposed an growth of capability of three.7mn models for PCR and 1.3mn models for TBR
Capital outlay of Rs 5810 cr, funded through inner accruals and debt
Morgan Stanley on Tata Energy
Advice Equal-weight; Goal ₹399
Q3 – weak quarter
Q3 was affected by larger losses in Mundra cluster and continued delays in RE commissioning
Underneath building renewable portfolio has 50:50 wind:photo voltaic combine
Fairness IRR may very well be in danger resulting from will increase in wafer costs
Any additional delay in Mundra decision would weigh on profitability
Earnings sensitivity is larger from inexperienced enterprise; leverage stays comfy
Citi on India fairness technique
3Q earnings largely in step with EBITDA development close to 9% YoY
Macro sentiment enhancing on easing inflation and commerce offers
Manufacturing and infrastructure spending supportive
Valuations affordable on absolute and relative foundation
Citi constructive on Indian equities
Nifty Dec 26 goal implies ~12% upside
Jefferies India technique
December 25 mid-quarter evaluate – Improved development
FY26 EPS has been upgraded by 0.6% in the course of the outcomes season to this point, a development reversal
For 135+ corporations underneath protection reporting as but, the upgrades to 48% of cos are additionally trending higher to this point
Financials, IT, staples delivered outcomes above estimates
Reported nos. had been decrease on one-off influence (7% of PBT) because of the implementation of the brand new labor codes
BoFA India technique
Enhancing MFI metric; mass consumption development sluggish
Premium consumption classes proceed to do effectively
Obese price delicate and well-off consumption
Charge delicate – Financials, Actual Property, Passenger/Industrial automobile & regulated Energy utilities
Anticipate Capex development to meaningfully sluggish for Central govt given restricted fiscal room
Preserve Underweight stance on Industrials & Cement however favor choose Capex performs on development visibility
Inside world performs, favor Pharma & Aluminum however are Underweight on IT, Metal & Vitality
Want Defensives: Telecom & Hospitals
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