New Research Reports

News Letter

Revenue grew 4.9% YoY while EBITDA degrew 5.1% YoY, owing to high ESOP costs, provision reversal in Q2FY26 and passive team hiring

We maintain our BUY rating on the stock, considering future growth prospects and leadership position in quick commerce.

Asian markets were trading in the red today. The Nikkei, Hang Seng and Shanghai fell 0.85%, 2.38%, and 1.16%, respectively.

Q2FY27 marks a stronger recovery phase for Indian specialty chemicals, with aggregate revenue growth estimated at ~25–30% YoY, driven by volume normalisation, new capacity ramp-ups and improving fluorochemical and amine pricing.

The upgrade in quick commerce (QC) store guidance to ~5,000 (nos.) by FY28 is indicative of management’s belief that the lines between e-commerce and QC are blurring.

Q2FY27 saw Indian Hotels Co. Ltd. (IHCL) delivering commendable performance, with 22%/24% YoY consolidated revenue/EBITDA growth (25% domestic LTL RevPAR) in spite of geopolitical disruptions.

We reiterate our BUY rating on Oberoi Realty (OBER) with an unchanged TP of INR 2,151, which is based on a 40% premium to FY27E NAV.

Vishal Mega Mart’s (VMM) Q2FY27 revenue grew 14% YoY, with reported same-store-sales growth (SSSG) of 5.4%. EBITDA and PAT rose 4.4% and 3.7% YoY, respectively, while margins were affected by the shift in festive calendar this year, higher staff costs, and gross margin pressure.

Mahindra & Mahindra Financial Services (MMFS) demonstrated sustained improvement across business parameters, including growth, margins and asset quality, in Q2FY27; thus, validating the successful adoption of its revamped techled business model.

Supported by broad-based disbursement growth, benign asset quality, and contained credit cost, MMFS reported a healthy 2QFY27. PAT was up 55% yoy to Rs8.82bn and AUM rose ~15% yoy to Rs1.47trn, aided by strong momentum in the non-wheels segment.

Eternal’s 2QFY27 performance was healthy, with Quick Commerce (QCom) NOV growth increasing to 22.2% qoq from 19.1% in 1QFY27 and adjusted EBITDA for Food Delivery growing 24.7% yoy to Rs6.27bn.

END OF DAY SUMMARY

Retail Research

MARKET SNAPSHOT

Mahindra & Mahindra Financial’s (MMFS) 2QFY27 PAT rose 55% YoY to INR8.8b (~7% beat). NII grew 13% YoY to INR23.9b (in line).

Aditya Birla Sun Life AMC (ABSLAMC)’s operating revenue grew 5% YoY/ 4% QoQ to ~INR4.8b (in-line). For 1HFY27, revenue grew 4% YoY.

We maintain our positive stance on Hindalco Industries (HNDL), as the recent correction, driven by declining LME prices and supply normalization, appears largely priced in, while the long-term growth outlook remains intact.

We analyzed Emcure’s domestic formulation (DF) segment and observed green shoots of recovery in the past couple of months, led by gynecology, anti-infectives, cardiac and anti-diabetic, while key brands continued to deliver strong growth.

Retail Research