By Trendlyne AnalysisThis telecom services provider rose 13.6% last week after announcing Q2FY26 results as well as plans to expand data centre capacity. The company is teaming up with its sister firm, Tata Consultancy Services, on a $6.5 billion investment to add 1 gigawatt of data center capacity.
As part of this expansion, Tata Communications will handle connectivity and infrastructure support. MD & CEO Amur Lakshminarayanan said, “In India, we saw a growing demand for data centres; we see that in the next five years, data centre capacity will double.” To meet this demand, the company is also investing in AI cloud services and offering powerful computer chips (GPUs) to businesses. Its cloud and security business grew 13% YoY to Rs 469 crore in Q2.
Despite a 6.5% YoY rise in revenue, the company’s net profit fell 27% in Q2. This was mainly because of higher costs related to network and transmission, which pushed total expenses up 6.8%. However, its core data business, which brings in most of the money, grew by 7%, driven by digital services. Tata Communications aims to increase data revenue to Rs 28,000 crore by FY28, up from Rs 19,300 crore in FY25.
Lakshminarayanan explained that the company is shifting away from its older network services business, which face pricing and operational challenges. It is now focusing on digital services like cloud connectivity, cybersecurity, and communication platforms to create new revenue streams.
CFO Kabir Shakir said that new products like Voice AI (speech-driven customer assistant) and cloud networking are proving popular with customers. He expects these new offerings to boost the company's profitability and margins in the second half of FY26.
ICICI Securities has a ‘Buy’ rating for the stock with a target price of Rs 2,390. The brokerage says the company’s strong mix of cloud services and network offerings could help it maintain a leading market share. It expects Tata Communications’ revenue and net profit to grow at a CAGR of 8.2% and 51.1% over FY26-27.
This department stores chain declined 2.7% on October 13 after announcing its Q2FY26 results. Avenue Supermarts’ net profit grew 3.9% YoY to Rs 685 crore, but missed Trendlyne’s Forecaster estimates by 2.5%.
During the quarter, revenue increased 15.3% YoY to Rs 16,696 crore, driven by improvements in its foods segment. For DMart, food continued to be the largest contributor to sales at 58%, while general merchandise and apparel made up 22%.
However, the company continued to face margin pressures, with its EBITDA margin declining by 28 bps to 7.6%. Increased competition in the fast-moving consumer goods sector, rising employee costs, and higher investments in service levels dragged down these margins.
DMart continues to focus on store expansion. It opened 8 new stores in Q2, taking its total count to 432, and plans to add another 60 stores in FY26. Like-for-like (LFL) sales grew 6.8%, up from 5.5% a year ago.
The company's e-commerce business, DMart Ready, is consolidating its operations to focus on large metro areas. Commenting on this, Vikram Dasu, CEO of Avenue E-Commerce, said, “We shut down operations in five smaller cities (Amritsar, Belagavi, Bhilai, Chandigarh, and Ghaziabad) while adding 10 new fulfilment centres in metros.” DMart Ready now operates in 19 cities.
Analysts noted that growth remained subdued, despite the onset of the festive season early this year (versus Q3 last year). The pressure comes from competition: while DMart’s core strength is still the large, monthly grocery trip, the rise of quick commerce is capturing the smaller, high-frequency "top-up" trips, potentially slowing growth in these high-demand categories.
Following the company’s earnings announcement, Motilal Oswal reiterated its ‘Buy’ rating on the company with a higher target price of Rs 4,770. The brokerage believes DMart's value-driven model and efficient store operations will help it stay competitive over the long term, despite the growing appeal of quick-commerce’s convenience-based approach.
This renewable energy financier surged 3% on Tuesday following its second-quarter results. Revenue climbed 26% YoY, while net profit jumped 42%, fueled by a growing asset base and improving margins. The company appears in a screener of stocks with annual profit growth more than sector profit growth.
Loans sanctioned in the second quarter jumped 145% compared to last year, while disbursements climbed 81%, reflecting strong demand for green financing. This surge pushed assets under management to over Rs 84,000 crore. Analysts project IREDA’s loan book to grow at a CAGR of 28% over the next two years, crossing Rs 1.2 lakh crore by FY27.
A strong funding profile underpins this performance. Aided by its AAA credit rating, the company gets about 86% of its funding from domestic investors, keeping borrowing costs around 7.2%. This helped expand the net interest margin by 40 basis points in Q2. The firm also received approval to issue tax-efficient bonds in July this year, a move expected to attract retail investors seeking tax benefits while further reducing funding costs.
IREDA’s loan book is well diversified across India, lowering regional risk while keeping a 100% focus on renewable energy — from solar and wind to bioenergy and EV infrastructure. The top 20 borrowers account for about 45% of the portfolio, a moderate concentration given the wholesale nature of renewable projects.
Asset quality continues to strengthen, with both gross and net non-performing assets improving sequentially. Provision costs dropped by 80% compared to a quarter ago after the RBI lowered provisioning norms from 5% to 1.25%, freeing capital to support faster growth.
ICICI Direct maintains a ‘Buy’ rating on IREDA, citing its strong growth prospects, healthy margins, and improving asset quality. The brokerage expects return on assets to remain steady at 1.9% and projects net interest income to grow at a CAGR of 26% through FY27. With the government targeting to double India’s renewable capacity by 2030, IREDA is well-positioned to capitalise on India’s expanding green-finance boom.
The stock of this IT consulting & software company rose over 7% in the past week. It reported its Q2FY26 results on October 14th. Its net profit surged 45.1% YoY to Rs 471.5 crore, while revenue climbed 23.4% to Rs 3,632.5 crore. This performance was fueled by robust growth across the banking, healthcare, and high-tech divisions.
The company’s Q2 net profit surpassed the Trendlyne’s Forecaster estimate by 5.5% on the back of strong Annual Contract Value (ACV) and broad-based client growth which was well-spread across North America, Europe, & rest of the world (RoW). Its strategic client mining expanded high-value accounts. The stock features in a screener of companies which have shown relative outperformance versus their peers over the past month.
Profit margins also saw a healthy expansion this quarter, rising to 16.3%. This was partly due to favourable currency movements and absence of software license costs in certain projects. However, the company is preparing for a near-term margin squeeze, as wage hikes effective from October 1st are expected to impact profits in the next quarter. Management anticipates offsetting a portion of this impact through improved efficiency and offshoring.
Looking ahead, CEO Sandeep Kalra expressed confidence in the company's long-term vision. He reaffirmed the goal of hitting $2 billion in revenue by FY27 through a mix of organic growth and strategic acquisitions. To reach its more ambitious target of $5 billion by FY31, the company plans to push into new sectors like manufacturing and retail. "We expect our operating margins to improve by 2-3% in the next 2-3 years," he added.
Brokerage firm Axis Direct remains positive on the company's prospects, maintaining a ‘Buy’ rating on the stock, though it has slightly lowered its target price to Rs 6,160. The firm praised Persistent’s ability to secure major strategic deals even in a tough economic climate. However, it also cautioned that rising subcontracting costs and currency fluctuations could pose a challenge to operating margins in the future.
This construction & engineering company’s stock rose 1.9% over the past week after announcing a series of big order wins across its business segments. The largest order was in the hydrocarbon onshore business, on October 9, worth more than Rs 15,000 crore. The company won the order in a consortium with Consolidated Contractors Group SAL to set up a natural gas liquids (NGL) plant in the Middle East.
L&T's power transmission & distribution (PT&D) business bagged orders worth Rs 2,500–5,000 crore in the Middle East on October 13. The projects include building a 400 kV substation in the UAE, new 132kV substations in the Middle East, and the construction of 380 kV overhead transmission lines in Saudi Arabia.
The company’s buildings & factories (B&F) business also won an order worth Rs 5,000-10,000 crore to set up an IT park in Bengaluru with a development area of 59 lakh sq. ft, earlier in the month. The company's strong order book provides visibility for future revenue. In total, L&T reportedly bagged orders worth Rs 62,900 crore in Q2FY26, with a significant portion coming from international markets, particularly the Middle East.
Speaking on the company’s order inflow, L&T’s Head of Investor Relations, P Ramakrishnan, noted, “We expect our group order inflows and group revenues to grow at 10% and 15% respectively for FY26.” The company expects international projects, particularly in the Middle East's hydrocarbon and energy transition sectors, to be the primary driver of this growth.
Reflecting this optimism, global brokerage firm Jefferies reiterates its 'Buy' rating on L&T, with a higher target price of Rs 4,125. The brokerage remains bullish on the company, citing its dominant market position, strong execution capabilities, and the government's continued focus on infrastructure development. Jefferies expects L&T's order inflow to remain strong, driven by both domestic and international opportunities.
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