Deven Choksey Broker Research reports

We have revised our FY26E/FY27E EPS estimates by -1.1 %/+13.2%, respectively, as we factor in improvement in EBITDA margins on account of improving mix and launch of high margin products.

We expect the Company to outperform in H1FY26E over H2FY25, led by stronger volume offtake aided by continued transformation in the and on the back of improving macro tailwinds.

Total sales volumes remained largely flat at 1,80,683 units (-0.6% YoY, +0.1% MoM), as domestic weakness continued to weigh on overall growth, partly offset by resilient exports and steady LCV demand.

ITC’s Q1FY26 performance stood below our estimates across the board, with
revenue growth below our estimates by 3.6% mainly led by higher intersegment
adjustments, while EBITDA and Adjusted net profit stood below our estimates led by poor operational performance.

Top Idea Picks - Sep 2025

We have revised our estimates for FY26E/FY27E EBITDA by -2.3%/-6.1%, respectively, as we factor in more gradual normalization of the elevated cost structure.

We have revised our FY26E/FY27E EPS estimates by -14.9%/-22.7%, respectively, as we factor in subdued growth traction in Generic API segment, lower other income and higher depreciation expenses on account of higher investments in its facilities.

Daily Morning Digest

We believe that demand conditions in the Indian paint industry have likely bottomed out, and we expect a gradual recovery over the upcoming quarters.

Daily Morning Digest