ICICI Securities Limited Broker Research reports

TATA Elxsi (TELX) reported better-than-expected Q2FY26 performance on both revenue and margins fronts. However, signs of structural recovery in demand are yet to emerge.

We hosted City Union Bank (CUB)’s senior management (business heads and risk personnel) in Chennai. The bank mentioned that its direct exposure to textiles (US export) is manageable at INR 2.2bn or ~40bps of loans.

We attended a group interaction of investors with IOCL management. Laying out his vision of a comprehensive roadmap for growth, Chairman MR AK Sawhney highlighted with the acronym SPRINT – Strengthening core business, Propel cost optimisation, Reinforce customer centricity, Integrate tech & innovation, Nurture leadership and be Transition ready.

Godrej Agrovet (GOAGRO) has exhibited a pronounced and sustained recovery across its metrics over the last 12–18 months, as cost and margin gains prevailed over soft volume growth.

Other income to PBT is ~40% in FY25. The valuation multiple (P/E) based on core business earnings, i.e., excluding cash and tax-adjusted other income, stands at 71x on FY25 earnings. The company gained market
shares in both washing machine and refrigerators in FY25, despite a highly competitive landscape.

We hosted Karur Vysya Bank (KVB)’s senior management in Chennai. Investors discussions were centred around the SME portfolio’s health, especially export-oriented units amidst higher US tariffs and change, if any, in the operating environment for the SME units.

The primary as well as secondary sales were impacted in Q2FY26 due to excess trade inventory at beginning of Q2FY26 and five weeks difference in announcement and implementation of GST reduction – that’s the chief takeaway from the management call.

In our first meeting with Naveen, we didn't discuss his views on hair oil category. In our opinion, Naveen is a result-oriented professional with a track record of building institutional businesses by turning around and accelerating P&L (growth) and launching categories aided by his techno-commercial experience coupled with on-ground execution.

Alkem Laboratories’ CEO, Dr. Vikas Gupta, is targeting double-digit revenue growth in the medium term, driven by strong hold in India (68% of sales), other international markets and new ventures.

We hosted Tata Communications (TCom)’s management – Mr. Kabir Ahmed Shakir, CFO – for an NDR in the UK. Summarily, we learn, TCom remains excited about its digital business as key parameters are advancing encouragingly, and order book (OB) growth remains healthy.