By Trendlyne AnalysisThis tyre manufacturer surged 12% last week after posting Q2FY26 results that beat market estimates across all key metrics. Revenue rose 14% YoY, exceeding Forecaster projections by 3.6%, led by sustained momentum in the OEM and international segments. Softer raw material prices and an improved product mix lifted profitability, with net profit soaring 53% — a 39% beat over estimates.
Volume grew 11%, driven by strong demand from OEMs. Growth across truck & bus, passenger vehicle, and two/three-wheeler segments averaged around 25%, lifting the OEMshare of total sales. Management attributed this to festive-season stocking and robust production schedules by auto manufacturers.
The replacement segment, which forms more than half of sales, saw only modest growth as buyers postponed purchases ahead of the GST announcement. MD & CEO Arnab Banerjee expects replacement demand to rebound “stronger and near double-digit” in the coming quarters as trade restocking resumes.
Exports now account for 19% of total revenue. CEAT reported strong traction across Europe, Africa, and Latin America. Europe emerged as the most profitable and fastest-growing cluster in Q2, led by passenger car sales. Management said international demand remains resilient despite global tariff uncertainty and expects momentum to continue in key markets through FY26.
EBITDA margins rose thanks to lower input costs, pricing discipline, and operating leverage from higher volumes in premium passenger car and two-wheeler tyres. CFO Kumar Subbiah said, “Taking into consideration the current prices of various raw materials and the impact of rupee depreciation in the last eight weeks, we expect raw material prices to remain at the current level in Q3.”
Motilal Oswal maintains a Buy rating on CEAT with a target price of Rs 4,523, citing GST rate cuts as a demand recovery driver. The brokerage believes input cost stability will sustain margins, while the recent Camso acquisition, though not immediately accretive, adds long-term strategic value and global scale to the business.
Thistextile manufacturer surged over 9% last week amid optimism surrounding the proposed US–India trade deal, which could ease export tariffs on Indian textiles. Currently, Indian exports face duties as high as 50%, but the agreement is expected to bring these down to about 15%, improving India’s competitiveness in the global textile market.
InQ2FY26, revenue from operations stood at Rs 2,417 crore, down 2% YoY, while net profit fell 14% to Rs 189 crore, reflecting weak global demand and elevated input costs. Domestic textile consumption has been sluggish across both apparel and home segments. However, early signs of recovery are emerging, helped by festive spending, GST rate cuts, and better consumer sentiment.
The yarn division contributes about two-thirds of total sales, with the remainder coming from grey and processed fabric. Exports account for roughly 45% of Vardhman’s revenue, but limited direct exposure to the US market has shielded it from the full brunt of American tariff pressures. Management expects export momentum to improve as trade terms ease and global demand normalises through FY26.
Recent GST cuts have become a key tailwind.Taxes on man-made fibres (12%) and yarns (18%) have dropped sharply to 5%, lowering input costs and improving working capital. Lower GST on affordable apparel is also likely to lift downstream demand from garment manufacturers, indirectly benefiting Vardhman’s fabric business. Meanwhile, the government’s Cotton Mission and new free trade agreements, including the India–UK pact, are set to strengthen the export ecosystem for integrated textile producers.
Vardhman has lined up a Rs 3,535 crore expansion to boost spinning and aims to add a new performance fabric line by the second half of this fiscal year. Executive Director, Sagarika Jain said, “Our spinning unit runs at over 90-95% utilisation and fabric at around 90%.” The new performance fabric plant will begin production this quarter and ramp up through FY26.
According to Trendlyne’sForecaster, five analysts have a consensus ‘Hold’ rating on Vardhman Textiles, with an average target price of Rs 494 — implying an upside of about 11.7%. The firm appears in a screener for “Strong Performer, Under Radar” stocks, reflecting improving fundamentals and margin visibility heading into FY26.
This wires & cables maker declined 5.6% on October 16 after announcing its Q2FY26 results. During the quarter, net profit grew by 31.5% YoY to Rs 203.5 crore but missed Trendlyne’s Forecaster estimates by 3.1%. The company’s EBITDA margin saw just a slight increase to 9.9%.
Revenue for KEI Industries rose by 19.6% YoY during the quarter. The company's main growth engine, its cables segment, saw a 22.5% increase. Export sales were a standout, nearly doubling to Rs 472 crore for the quarter, fueled by strong orders from overseas clients. As of September 2025, KEI’s order book stood at Rs 3,824 crore.
The company highlighted significant delays for its Sanand plant expansion, stating that the first phase has been pushed back due to contractor-side challenges and a labour shortage. The second phase also faces a nine-month delay because of complexities in constructing the vertical tower. Despite these setbacks, the company remains optimistic about the project's massive potential.
The fully operational plant is still expected to eventually generate revenue of Rs 6,000 crore. Commenting on this, CEO & MD Amit Gupta said, "The first phase of the new facility, expected by November, will support growth. Once the Sanand plant is fully operational by FY27, the company aims to improve its operating margin by 100-150 bps."
Going forward, the company expects steady demand, driven by strong activity in emerging sectors such as data centres, renewables, real estate, and infrastructure projects. Based on this outlook, KEI projects revenue growth of over 20% for FY26.
After the results, Nuvama maintained its ‘Buy’ rating on KEI with a target price of Rs 4,450. The brokerage believes that, with robust export growth, operational efficiency gains, and capacity expansion on track, KEI remains well positioned for continued outperformance.
Thisrealty company rose 1.7% on October 20 after announcing itsQ2FY26 results. Net profit grew 1.8X YoY to Rs 72.5 crore, and revenue increased 50.8% during the quarter. Both figures surpassed Trendlyne’sforecaster estimates, beating them by 18.3% and 29.8%, respectively.
Existing project sales drove this growth, as no major projects were launcheddue to regulatory delays in Bengaluru. The city proved to be a powerhouse,contributing 69.7% of overall sales.
Commenting on the order pipeline, MD Jagadish Nanginenisaid, “Overall, we have a strong residential pipeline of 16 million square feet across 13 projects in nine cities and a commercial pipeline of about 0.7 million square feet. We expect to launch these projects in the next 4 to 6 quarters.”
Looking ahead, Sobha is gearing up tolaunch residential projects worth Rs 22,000 crore over the next 18 months. The company’s strategy remains focused on strengthening its presence in key markets through a balanced portfolio of residential and commercial projects.
While project launchesslowed in H1 FY26 due to regulatory hurdles, management now aims to launch 8-9 million sq ft across 7-8 projects in H2FY26. Backed by a strong pipeline and Rs 632 crore in strategic land investments, the company is positioned to accelerate project rollouts and sustain growth.
HDFC Securitiesmaintains its “Buy” rating and with a target price of Rs 2,459 for Sobha. H2FY26 presales are expected to reach ~Rs 6,000 crore, pushing full-year sales beyond Rs 10,000 crore—a ~70% YoY growth. The company’s strong brand, premium positioning, and robust execution give it pricing power and resilience against market headwinds.
This ceramics player rose over 1.1% on October 16 following the announcement of its Q2FY26 results. Kajaria’s net profit jumped 57.8% YoY to Rs 133 crore, beating Trendlyne’s Forecaster estimates by 9.1%.
During the quarter, revenue grew just 0.6% YoY to Rs 1,186 crore, reflecting persistent weakness in tile sales amid soft domestic demand. The company has now seen single-digit revenue growth for eight consecutive quarters. However, operating margins expanded significantly, rising by 452 bps to 18%, thanks to lower costs for procurement, materials, employee benefits, and fuel.
The management highlighted that the building materials sector, aside from cement and steel, has remained sluggish. MD Ashok Kajaria said, “Q2 performance was adversely affected by heavy rains and flooding across Northern and Eastern India, which disrupted construction activities. However, we are optimistic of a pickup in volume growth during the second half of the fiscal year, as construction activity resumes.”
Meanwhile, the company's smaller bathware segment grew around 14% YoY in the September quarter, driven by the ramp-up of a newly commissioned sanitaryware facility in Morbi, Gujarat.
Going forward, the company remains focused on managing costs and gaining market share in the tile industry (up from the current 11%). It expects sales volume to pick up in the coming quarters, helped by better reach into tier-2 and tier-3 towns, an increase in demand from business clients, and a potential revival in direct consumer sales.
Following the company’s earnings announcement, ICICI Direct maintained its ‘Buy’ rating with a target price of Rs 1,450. The brokerage believes Kajaria is a solid player in the tiles sector with its expanding reach into smaller cities. It projects earnings will grow by roughly 40% annually over the next two fiscal years, driven primarily by margin improvements and a recovery in sales volume.
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