1. Indian Hotels Company:

This hotel company rose 3.9% on Thursday after reporting strong Q2 results and raising its revenue growth forecast for FY27. Indian Hotels now expects revenue to grow 15-17%, up from 12-14% earlier.

In Q2FY27, operating revenue rose 22% YoY to Rs 2,484 crore, comfortably beating Forecaster estimates. Net profit grew 23%. Its hotel business led the growth, helped by higher occupancy and room rates.

Revenue per available room (RevPAR) at domestic hotels rose 25% to Rs 8,220 per night. Occupancy at its standalone full-service hotels reached 82%, helping the hotel business improve its EBITDA margin to 29.7%.

Renovations are also paying off. Room revenue at Taj Palace, New Delhi, jumped 132% after its upgrade, with the BRICS Summit adding to demand. Management believes higher room rates at renovated hotels will support growth in H2.

However, its air-catering business struggled. TajSATS’ EBITDA fell 24% as airlines cut flights amid the West Asia conflict. Management sees a recovery in H2FY27, provided flight schedules normalise.

IHCL is also expanding its hotel network faster than planned. It is on track to reach its 700-hotel target three years early, including properties under development. Most of this expansion involves managing hotels owned by others. The owners receive revenue from room bookings and other services, while IHCL operates the hotels under its brands and earns fees tied to their revenue and profits. This allows IHCL to expand without spending heavily on new properties.

Management fees from these hotels rose 25% in Q2 and accounted for about 6% of consolidated revenue. CFO Ankur Dalwani said, “We’ll be disappointed if annual management fees do not cross Rs 1,000 crore within two years.”

The planned merger with Oriental Hotels will also increase IHCL's direct ownership of hotel properties. Once completed, it is estimated to add 6-7% to operating revenue in FY28.

Following the results, ICICI Securities reiterated its ‘Buy’ rating and raised the target price to Rs 969, implying a 24% upside. It also raised its EBITDA forecasts for FY27-FY29 by 3.7% each year, reflecting the company’s strong performance.

2. Eternal (Zomato):

This internet retail company fell 3.5% on October 21 after reporting Q2FY27 results, with net profit missing estimates by 55% as the company scaled its operations. Revenue rose 76% YoY, while net profit nearly doubled, driven by growth across its businesses. The company appears in a screener of stocks that reported the best revenue and net profit growth last week.

Blinkit remains the main growth driver, as net order value grew 79% during the quarter. CFO Akshant Goyal said, “We now expect to cross 3,500 stores by March 2027, and our current plans point to about 5,000 stores by March 2028.” He added that cash balances and profits from food delivery and quick commerce would help fund the expansion.

Management says stores in smaller cities are reaching order volumes within timelines similar to those in metros, with comparable customer retention. Mature cities already generate adjusted EBITDA margins above 5%, while Blinkit’s adjusted EBITDA margin improved by 28 basis points QoQ to 0.88% of net order value. 

Swiggy saw its shares plunge 15% on October 23 after its quick-commerce arm, Instamart, reported a wider loss of Rs 895 crore. In contrast, Eternal rose 4.3% on the same day, while Blinkit turned EBITDA positive after a loss in the year-ago quarter.

On the food delivery front, the company is increasing investment in growth to expand the market and drive sales, rather than maximise margins. It expects margins to remain broadly flat over the next one to two years as it prioritises customer acquisition and order frequency. Founder Deepinder Goyal said, “Our long-term expectation for food delivery has always been 20%+ annual growth.”

Emkay retained a ‘Buy’ rating and raised its target price to Rs 420, indicating a 32% upside. However, they cut their EBITDA estimates for FY27-28 by about 10% as faster expansion shifts more of the expected earnings contribution into later years. They flag heightened competition that could erode Blinkit’s market share, as well as regulatory hurdles that could slow its expansion.

3. L&T Technology Services (LTTS):

This engineering services company jumped 10.7% on October 21, its biggest single-day gain in five years, following stronger-than-expected Q2FY27 results. Net profit beat Forecaster estimates by 48.7%, helped by a one-time Rs 165 crore gain from the sale of its Smart World & Communication business.

Revenue rose 3.4% QoQ, led by the Sustainability business, which designs industrial facilities and infrastructure. This segment grew 4.9% and contributed 38% of revenue. Demand came from data centres, energy projects, factory automation and industrial plant design. Meanwhile, rising data-centre spending could benefit two LTTS businesses: Sustainability, which designs the infrastructure, and Tech, which designs the underlying chips and computing systems. 

However, LTTS’ Tech business revenue declined 0.9% as a large medical technology project ended. Amit Chadha, CEO and MD, said, “Tech will be muted in Q3, but beyond that, we do see growth coming back.” Fresh chip-design contracts and a massive AI-led telecom deal will power the rebound.

AI-led work is becoming a significant revenue stream for LTTS, reaching $120 million on an annualised basis in Q2, or about 10% of revenue. More than half of its Q2 large-deal wins were also related to AI. 

Chadha added, “What I am confirming is that H2 will be better YoY and QoQ than H1.” This confidence stems from a growing order backlog and a deal pipeline up over 25% YoY. Over the next five years, it targets 13–15% compound annual revenue growth and operating margins of 16–17%.

Near-term profitability faces pressure as upcoming wage hikes could trim Q3 operating margins by 50–80 basis points. LTTS had already reached its mid-16% margin target, two quarters ahead of schedule. It expects improved efficiency and a higher share of profitable projects to offset much of the impact.

IDBI Capital upgraded LTTS to ‘Buy’ from ‘Hold’, with a target price of Rs 4,170, an upside of 6.6%. It expects revenue to grow 7.6% in FY27 and 10.7% in FY28, below management’s long-term growth target. The brokerage projects large contract conversions, high-margin projects, and surging demand for AI and data-centre engineering to sustain momentum.

4. Tata Communications: 

This digital connectivity provider jumped 6.3% on October 15 after reporting strong Q2FY27 results. Revenue climbed 9.6% YoY, driven by demand for data services and campaign registry solutions. Net profit surged 86% as the company slashed employee and finance costs. Revenue was in line with Forecaster estimates, while net profit beat expectations.

The digital portfolio grew 18.6%, and core data revenue jumped 12.2%. The company nearly halved its losses from the digital segment, improving EBITDA loss margin by 330 basis points to 3.6%, thanks to a richer product mix. However, event cancellations due to the West Asia conflict softened growth in the media segment. Additionally, a Rs 7,845 crore license-fee demand from the Department of Telecommunications remains a significant unresolved hurdle.

Shrinking losses in the digital business helped overall EBITDA margins expand roughly 200 basis points to 21.3%. Buoyed by this rising profitability, MD & CEO Ganesh Lakshminarayan said, “We aim to deliver double-digit EBITDA growth in FY27 and turn the digital portfolio EBITDA positive in the coming quarters.”

The company reported a double-digit expansion in its order book. Surging demand for data-centre-to-data-centre connectivity and a recent cloud deal drove this growth. A growing share of recurring, higher-margin network contracts and AI-led opportunities, coupled with a diversified deal pipeline, is expected to support margin growth.

Management is focusing on higher-margin proprietary platforms and recurring revenue over lower-margin offerings to drive digital segment profitability. They believe that the core connectivity segment margin at 45% is sustainable going forward. The company highlighted a potential revival in enterprise voice traffic, driven by increasing adoption of AI-powered voice agents across customer service and enterprise workflows. 

Following the results, Motilal Oswal maintained a ‘Neutral’ rating with a target price of Rs 1,980, implying a 19.4% upside. The brokerage acknowledges the record margins and strong AI-led demand but remains cautious due to soft media growth and regulatory threats. They expect the firm to deliver revenue and EBITDA CAGRs of 10% and 13.5%, respectively, over FY27-29.

5. Hindustan Zinc:

The stock of this non-ferrous metals company fell by over 4% on October 23 as silver prices softened following reports that the Indian Government allowed 6,500 metric tonnes of silver imports over six months to meet peak festive demand. This policy relaxation comes after India imposed sweeping restrictions on silver imports across nearly all categories back in May. The stock appears on a screener of companies having high promoter stock pledges.

Despite recent stock volatility triggered by cooling metal prices, the firm delivered a standout September quarter. Q2FY27 revenue jumped 76% YoY to Rs 15,467 crore, propelled by favourable commodity pricing, higher sales volumes, and a strengthening US dollar. Net profit surged 142% to Rs 6,412 crore on reduced borrowing and production costs. 

Operational momentum remained firm as mined metal output grew 5% during the quarter on higher ore extraction. At the same time, refined metal production increased 7%, supported by additional capacity unlocked through smelter debottlenecking projects. Confident in its operational trajectory, management reaffirmed its full-year FY27 refined metal production target of 1.1 million tonnes (MT).

Under its Vision 2.0 plan, management aims to double annual output to 2 million tonnes over five years through a Rs 40,000-50,000 crore capex. Driven by operational efficiencies, zinc production costs dropped 29% to $703 per tonne, prompting management to cut its FY27 cost guidance from $975-$1,000 per tonne to $825-$850 per tonne.

Motilal Oswal maintained its ‘Neutral’ rating on the stock with a target price of Rs 600. The brokerage noted that ongoing efforts to scale output, enhance operational efficiency, and control costs should keep operating margins healthy. However, with near-term earnings capped by near-full capacity utilisation, analysts believe further earnings upside will depend heavily on rally momentum in global LME zinc and silver prices.

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