1. Gravita India:
Thisrecycling company rose 3% on July 29 after announcing its Q1results. Revenue went up 17% YoY, outperformingForecaster estimates, driven by higher volumes and a better product mix. Net profit also came in ahead of estimates, rising 39% YoY.
Chairman and MD Rajat Agrawal credited the aluminium recycling business for this outperformance,saying, “Our aluminium business has contributed significantly, with profitability across the value chain: from scrap procurement to ingot manufacturing and downstream products.”
The companygets 90% of its revenue from lead recycling, and the remaining from aluminium and plastics. Aluminium was the clear outperformer in Q1, with volumes doubling from a year ago. The lead and plastics businesses remained steady, pushing total volumes up 12% YoY. The revenue share of value-added products improved to 47%, helping EBITDA margins expand to 11.8%.
Gravita has an ambitiousroadmap: it aims to grow volumes at 25% CAGR and profits at 35% CAGR through FY28. It also plans to double its recycling capacity with a capex of Rs 1,500 crore over the next four years. The company is entering new verticals such as lithium-ion battery, rubber, paper, and steel. Of these, rubber and paper are expected to go live this fiscal year.
The global business continues to play a big role, contributing over 50% to the topline. Agrawalsaid, “We are working on expanding our overseas recycling facilities, with a focus on Africa and Latin America.” We are also securing new collection and supply partnerships to de-risk procurement and improve operating leverage.
Axis Securitiesmaintains a ‘Buy’ rating on Gravita with a target price of Rs 2,600, implying a 45% upside. It sees the company’s integrated model, rising share of value-added products, and policy support from the government as strong positives. That said, it flags base metal price volatility as a key short-term risk to margins.
2. Cipla:
This pharma company gave up its post-result gains after Trump sent a letter to 17 global drugmakers on August 1, asking them to cut US drug prices and match what other countries pay. He also demanded lower prices for existing drugs and guarantees that future medicines will be priced in line with other countries. These moves could hit US revenue for Indian pharma exporters. Cipla earns over a quarter of its revenue from the US.
The company had jumped over 5% in two sessions following a target price upgrade to Rs 1,651 from Nuvama, with the ‘Hold’ rating maintained. This came after its Q1FY26 results, where net profit rose 10% YoY, beating Forecaster estimates by 7.4% on higher other income and lower depreciation costs.
Cipla’s revenue rose 5% YoY but fell short of estimates due to a drop in US sales, which came in at $226 million. This was mainly due to weaker sales in its cancer drug Revlimid, while Lanreotide, used for rare tumors, saw flat sales. The company is targeting $1 billion in US revenue by FY27, backed by new product launches in areas like respiratory, cancer, peptides, and biosimilars.
Cipla’s India business grew 6% in Q1, slower than expected due to a dip in demand for acute therapies (treatments like colds, fevers, and infections), which rose only 4–5%. However, the management expects growth to align with the market over the next 2–3 quarters. MD & CEO Umang Vohra said the company is preparing to launch GLP-1 products (used for diabetes and weight loss) in India and other global markets, and sees it as a major growth opportunity from FY27 onwards.
Vohra added, “We ended the quarter with a net cash balance of Rs 10,400 crore, which we plan to use to fill gaps in our India portfolio through acquisitions, expand manufacturing capacity, and acquire specialised assets in the US and other international markets.”
Axis Securities has a ‘Buy’ rating on Cipla, noting its focus on expanding the branded prescription business in India through new launches and a stronger sales team. It projects Cipla’s sales and net profit to grow at a CAGR of 8.1% and 7.9%, respectively, over FY26–28.
3. Zen Technologies:
Thisdefence company has fallen 17.9% over the past week after it announced weakQ1FY26 results. Its net profit declined 37.8% YoY to Rs 47.8 crore, while revenue fell 37.9% YoY to Rs 158.2 crore. This was a twinForecaster estimate miss. The company underperformedbecause it could not book Rs 60-70 crore in revenue this quarter as customers requested changes in product specifications, which delayed this revenue to the next quarter (Q2FY26).
Commenting on the results, Ashok Atluri, the company's Chairman and Managing Director,said, “Regular procurements slowed down because of new emergency procurement happening post Operation Sindoor.” Regular procurements such as simulators, were slightly delayedas the Ministry of Defence prioritised emergency purchases following the operation.
Zen Technologies remains optimistic about its future order inflow and revenue. The managementexpects an order inflow of Rs 650 crore by the end of Q2FY26, driven by anticipated orders for anti-drone systems (ADS) as part of emergency procurement. The company’s order bookstands at Rs 754.6 crore. Atlurisaid, “We are confident in maintaining our targeted cumulative revenue of Rs 6,000 crore over the next three financial years.”
So far this year, the company has invested around Rs 160 crore in fouracquisitions to strengthen its presence in naval simulation, drones, defense robotics, and loitering munitions. These include Vector Technics, Applied Research International (ARIPL) and its affiliate ARI Labs (ALPL), Bhairav Robotics, and TISA Aerospace, which are all expected to open new areas for growth.
Following the results, ICICI Securitiesdowngraded the stock to ‘Hold’ from ‘Buy’, citing weaker Q1FY26 performance due to execution delays. However, it remains positive on Zen’s long-term outlook, backed by strong revenue guidance and expected order inflows. But to deliver growth, Zen must improve order flow and execute key contracts like the anti-drone system.
4. Nestle India:
The stock of this packaged foods company dropped 1.9% over the past week following the announcement of its Q1FY26 results. The company posted a 5.1% YoY increase in revenue, led by strong performance in the powdered & liquid beverages and breakfast cereal segments. However, net profit dropped 13.4% to Rs 646.6 crore, impacted by high input costs for milk, cocoa, and edible oil. The profit figure also missed Forecaster estimates by 18.9%, largely due to increased operational expenses from recent capacity expansions. The stock features in a screener of companies where FIIs and FPIs are raising their holdings.
Nestle’s revenue growth in the milk products & nutrition segment remained muted, with a mid-single-digit decline in infant nutrition due to advertising restrictions and increased competition. Commenting on the category’s performance, Nestlé India Chairman and MD, Suresh Narayanan, said, “The milk and nutrition category has been hit by inflation and price hikes, limiting volume growth. It also faces strong competition from cooperatives, pressuring both volumes and pricing. We remain focused on sustainable, profitable growth and have proactively removed refined sugar from baby food to meet regulatory and consumer expectations. Portfolio challenges in this category are also being addressed.”
The company’s e-commerce segment maintained its growth momentum, contributing 12.5% to domestic sales, driven by quick commerce and new product launches. Export revenue rose 16% YoY to Rs 214 crore, recovering from a 7% drop in Q1FY25, with solid performance in coffee, instant tea, and breakfast cereals, despite pressure from high commodity costs.
Sharekhan maintained a ‘Buy’ rating on Nestlé India but lowered the target price to Rs 2,600. The brokerage noted that Q1FY26 was weak due to multiple headwinds impacting profitability. Despite this, Nestlé’s strong domestic presence, expanding distribution & capacity, and rising out-of-home consumption position it well for growth in a stable demand environment. While volatile commodity prices are expected to pressure margins, the company’s pricing power and cost-saving efforts could help offset the impact.
5. MphasiS:
ThisIT consulting and software firm rose 5% on July 25 after reporting total contract value (TCV) wins of $760 million inQ1FY26, nearly double the previous quarter. AI-led deals made up 68% of the TCV, compared to 30% a year earlier. Management expects to complete these orders within the next two quarters.
Mphasis' revenue grew 1.2% QoQ in Q1FY26, supported by strong order execution and demand for its AI-led digital transformation services. Net profit declined slightly due to a higher tax rate, and delayed client payments.
Management noted that macro volatility and slower decision-making, influenced by tariff and geopolitical uncertainties, have delayed client spending. Despite these delays, CEO Nitin Rakesh is optimistic,saying, “We aim to grow revenue at nearly twice the industry pace in FY26, targeting over 8% growth.”
The top four IT firms—TCS, Infosys, HCLTech, and Wipro—reported flat to mixed results in Q1FY26, as US tariff-related risks slowed deal activity. TCS’s deal wins fell 22.9% QoQ due to the BSNL contract wind-down and client payment delays, while HCLTech posted a 39.4% QoQ drop from delays in new deal closures and project ramp-downs.
In contrast, Infosys and Wipro reported deal growth of 46.1% and 24.1% QoQ, supported by strong demand for AI, cloud, and digital transformation services across the banking, energy, and manufacturing sectors.
Mphasis earns 13.7% of its revenue from the insurance segment, which grew 20.4% QoQ. Rakeshnotes, “We closed several deals in this segment over the past three months, turning them into revenue. Insurance has become a key growth driver, and we expect this momentum to continue in FY26, helped by large signed deals and new client wins in the pipeline.”
Following the results, Jefferiesupgraded Mphasis to 'Buy' and raised its target price to Rs 3,100. The brokerage noted that Q1 earnings were in line with estimates, with strong deal bookings as a key positive. It expects revenue growth to improve in the near term, supported by deal wins and higher client spending in the BFSI vertical. Jefferies projects earnings per share to grow at a 12% CAGR over FY26–28.
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