ICICI Securities Limited Broker Research reports

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 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.

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.