Emkay Broker Research reports

We maintain REDUCE, lowering our Jun-26E TP by 6% to Rs5,500, based on 48x P/E (revised from 50x, now aligned with the 5Y average forward P/E). Q1 results were in line, adjusting for the Phantom Stock Option Scheme expenses.

Not surprisingly, MMFS posted muted results in Q1FY26, with PAT at ~Rs5.3bn largely hit by elevated credit cost (~25bps higher than our estimate of ~1.9% of business assets), and YoY AUM growth of 15%/disbursement growth of only 1%.

One97 Communication (Paytm)’s Q1FY26 revenue was in line with Street estimates, while profitability significantly beat expectations.

Dixon logged a robust Q1, with revenue up 95% YoY (above consensus) led by the Mobile and EMS segment, on strong volume growth across customer brands.

LTF reported a steady Q1FY26, with overall AUM crossing the Rs1trn mark and registering a 15% YoY (~13.8% excluding Gold Loans) growth, resulting from strong disbursements across the retail segment (including MFI and GL).

JK Cement (JKCE) reported standalone EBITDA of Rs6.75bn (up 41% YoY, albeit down 9% QoQ), beating our estimate (Rs5.9bn).

YES Bank's core performance remained weak, with credit growth slowing to 5% YoY (down 2.1% QoQ), while margins remain low at 2.5%.

AU SFB reported weak core performance, with margins declining sharply by 40bps QoQ to 5.4%, although higher treasury gains and surprisingly lower nonstaff opex, amid bidding for a Universal Banking license led to a ~6% PAT beat, at Rs5.8bn/1.5% RoA.

FSOL has signed an agreement for acquiring Pastdue Credit Solutions (PDC) – a UK-headquartered debt collection agency serving UK’s several market-leading companies, including banks, utility firms, telecom players, and government bodies – for a cash consideration of £22mn (1.3x P/S on FY24 basis).

Despite slower credit growth and sharper margin contraction, RBL reported a 27% PAT beat at Rs2bn and 0.6% RoA, mainly due to higher treasury gains and contained provisions (50bps in Q1/2% annualized, including 6bps contingent provisions on JLG MFI loans).