ICICI Securities Limited Broker Research reports

Supreme Industries (SI) reported Q2FY26 blended plastics volume growth of 11.8% YoY with pipes segment reporting 17.2% YoY volume growth (6-year CAGR of 10%), partly aided by Wavin acquisition.

After successfully strengthening its retail asset franchise during FY24–25, PNB Housing Finance (PNB HF) has shifted its focus towards enhancing profitability going ahead, and its highest quarterly (since FY21) RoE at >13% during Q2FY26 is a reflection of sustained improvement across financial parameters despite management transition.

Sona BLW (SONA) has demonstrated resilience amidst challenging demand environment and its Q2FY26 performance was above our estimate. Global supply-chain disruptions are driving new order enquiries for SONA.

Brigade Hotel Ventures (BHVL) clocked strong 14% same-store RevPAR in Q2FY26, resulting in 16% YoY revenue growth and 15% adj. EBITDA growth.

Coforge reported strong revenue growth of 5.9% QoQ CC, led by ramp-up of Sabre mega deal and BFS deal conversions (five large deals signed in Q1FY26). Operating margin was robust with 251bps QoQ expansion on lower SG&A and employee costs.

SBI Life has been able to maintain its mid-teen growth guidance in volume and healthy 26–28% VNB margin guidance despite the adverse GST impact on costs.

Kotak Mahindra Bank (KMB) reported in-line Q2FY26 PAT of INR 32.5bn as muted other income (treasury loss) was offset by tight opex control. RoA stood strong at 1.9%.

Federal Bank (FB) has approved up to 9.9% stake dilution to a Blackstone managed fund (fund) via preferential issues of warrants. The transaction would boost pro forma CET 1 by ~280bps (over the next 18 months) and FY27E ABV may rise by ~4%.

SBI Cards (SBIC) has been focusing on credit cost improvement and the results are becoming visible now. However, this has also led to a calibrated credit growth and directionally lower revolver mix, impacting earnings.

Dr. Reddy’s Laboratories’ (DRL) Q2FY26 revenue was slightly ahead of our expectations, though EBITDA and profit were in line. Revenue growth of 9.8% YoY was boosted by consolidation (65-70%) of the acquired NRT portfolio (~8% of sales) and acquisition of other branded products.

Colgate’s Q2FY26 result reaffirms that business remains structurally fatigued, with no visible triggers for a turnaround. Revenue declined 6.2% YoY, implying a 7-8% volume decline amid GST-led destocking and continued competitive intensity.

Axis Bank (Axis) reported a mixed set of numbers with better-than-expected top line (strong growth and contained NIM pressure), though PAT at INR 50.9bn missed our estimates due to elevated provisioning (including a one-time standard asset charge).

Tata Communications’ (TCom) Q2FY26 EBITDA performance was modest, and partly restricted from one-time adjustment in TCR. Orderbook (OB) continues to be healthy with strong sales funnel.

PSYS’ revenue growth of 4.2% QoQ CC was ahead of our optimistic estimates. Growth was led by the BFSI and technology verticals. Healthcare vertical has improved, post two quarters of muted growth from client-specific offshoring.

Tech Mahindra (TechM) delivered a healthy beat on both revenue and margins in Q2FY26. However, turnaround is progressing at a slower pace.

ICICI Lombard (ICICIGI) has reported healthy earnings growth of 25.4% over the last three years and 22.9% YoY growth in H1FY26 (26.2% ex-capital gains).

Thyrocare Technologies (Thyrocare) Q2FY26 revenue/EBITDA/PAT was ~1%/14%/26% ahead of our expectations. Both the pathology divisions continue to boost growth with partnership/franchise segment posting 35%/20% growth driven by an uptick in volumes (up ~24%/11%, respectively).

ICICI Prudential (IPRU) saw APE/VNB decline/grow 3.3%/1% in Q2 and dip 4.1%/0.9% in H2FY26. Strong cost execution and product mix lifted margins to 24.5% (up 104bps YoY) in Q2. VNB slipped 0.9% YoY in H1FY26 but increased 1% YoY in Q2FY26.

We initiate coverage on LG Electronics India (LG) with a BUY rating as, It has developed strong competitive advantages such as LG brand with premium positioning, established distribution network, and multiple manufacturing units in India with strong backward integration capabilities.

HCLT reported a strong beat on revenue driven by broad-based growth across key verticals. HCLT has quantified ‘Advance AI’ revenue of USD 100mn for Q2 (3% of overall revenue on annualised basis). It acknowledged the deflationary impact in renewal deals with a reduction in overall ACV in 5 out of 10 large deals.