Anand Rathi Broker Research reports

With 6% volume growth (4% in India business) and 21.1% EBITDA margin (Street’s estimate at 20.4%), Godrej Consumer posted broadly in-line Q4 results.

Atul invested ~Rs20bn over the last three years in setting up capacity (capex matching the cumulative investment over the last decade). In its analyst meet, management highlighted unrealized sales potential of over Rs25bn from recently concluded capex (~Rs17bn) and from previously unutilized capacity (~Rs8bn).

V-Mart’s Q4 profitability improved, with a 272bps y/y higher EBITDA margin at 8.7% (~90bps above ARe), driven by lower Limeroad losses and better offline margins. FY25 sales/EBITDA grew ~17%/77% y/y, led by 11% SSSG.

Exceeding estimates, Eternal’s Q4 saw strong execution in Blinkit, with the GOV growing ~20.8% q/q, 134% y/y, and the contribution margin expanding ~10bps q/q, which is encouraging, given heightened competition and aggressive dark store addition (~294 added; ~40% of the total 1,301 stores added in the last two quarters).

Stable margins and strong fees led to City Union Bank’s steady operating performance. Overall profitability was strong, with RoA coming at 1.53%. Ahead, we expect net slippages to be negative since most of the stress has been recognised. The focus now shifts to business growth.

Public hearing and mine inspection for EC enhancement has already been completed and is awaiting a formal response from the MoEF. Environmental public hearing for the EC expansion which completed in Jan’25 received consent from representatives of ~30 villages and the management expects receipt of formal response by end of May'25.

Go Fashion’s Q4 revenue was in line with ARe at 12.7% while EBITDA margin came in ~50bps higher at 30.5%. In FY25, it added 62 net (104 gross) EBOs.

Q4 was better than expected for Bandhan Bank, given the challenges the MFI segment was faced with. Though slippages were higher than in the prior quarter in the overall book incl. the EEB book, the decrease in the SMA book was positive, indicating lower incremental stress build-up.

Strong growth in non-interest income was counterbalanced by weak NII and higher opex which led to ~3% sequential de-growth in core operating profits for Federal bank.

Lagging our estimated 13.4%, TVS Motor’s Q4 adj. EBITDA margin (excl. PLI benefits pertaining to previous quarters) came at 12.5% due to less-than-expected PLI benefits.

Greenply Industries’ Q4 revenue/gross profit/EBITDA grew 8.2%/16.5%/18.1% y/y to Rs6.5bn/2.7bn/681m. Easing input cost helped the gross margin to inch up 297bps y/y to 41.5%.

We remain structurally positive on KPIT. While most auto ER&D players reported weak results, the company delivered an in-line performance amid challenging macro; however, no guidance for FY26 was given.

Mphasis demonstrated strong financial performance, with 2.9% q/q, 5.4% y/y revenue growth in CC, driven by significant contribution from the BFS sector (50% of revenue) and a sharp rebound in the Technology, Media & Telecommunications segment (18% of revenue).

Weak prolonged winter season impacted Orient Electric’s water heater and fan sales, while lighting outperformed led by strong B2B demand. Fan demand recovered over the past 7–8 days, and management remains optimistic about Q1 performance, supported by severe summer forecast across India.

Maruti Suzuki’s Q4 standalone EBITDA declined 9% y/y to Rs42.6bn, below our estimated Rs49.3bn. Domestic volumes would clock a 5% CAGR over FY25-27 due to higher income levels (income-tax cuts), a rebound in first-time buyers, rural demand, launches and lower finance costs.

Despite healthy balance sheet growth, higher provisioning led to a 58% y/y fall in IDFC First Bank’s PAT. Microfinance credit costs have peaked for the year. We value the bank at 1.2x FY27e PBV and retain a
Buy rating, primarily led by the higher balance sheet growth, strong NIM and improving operating leverage.

We visited Gabriel’s plant and attended its management meet on Thursday in Pune. The company’s change in strategy by way of entry into the high-growth ‘sunroof’ product line is positive and would be a major value driver.

Supreme Industries’ Q4 revenue remained muted at Rs30bn, up just 0.6% y/y, as overall volumes sold rose a meagre 2.3% y/y. Profitability was impacted as PVC pricing environment remained uncertain, with a downward bias deferring filling of channel inventory and under absorption of fixed overheads.

HUL’s Q4 was broadly in line with the Street’s expectations, with volumes growing 2% y/y (vs. 0-2% estimated) and the EBITDA margin at 22.8% (vs. 23%).

Havells’ robust Q4 results were led by strong, 21% y/y, growth in cables and Lloyd’s 39% y/y revenue increase. We expect cost-saving steps and operating leverage to expand margins and profitability for Lloyd. The ramp-up of the new cable capacity will further add to growth.