ICICI Securities Limited Broker Research reports

3M India’s EBITDA margin of 14.1% in Q3FY25 was at its lowest since the past nine quarters. We believe INR depreciation and higher freight cost impacted 3M’s margins.

Apollo Tyres’ (APTY) Q3FY25 standalone EBITDAM was down 100bps QoQ at 11.1% on RM cost increase. EU EBITDA margin increased ~290bps QoQ despite RM price increase, led by higher mix of UHP tires and cost-reduction initiatives.

Mahindra & Mahindra’s (M&M) EBITDA margin at 14.4% was up ~20bps QoQ (vs consensus estimate of 14.7%); auto segment’s EBIT margin was up 20bps QoQ at 9.7%, and FES EBIT margin increased 60bps QoQ to 18.1%.

We recently hosted Indian Hotels’ (IHCL) management for meetings with investors in Singapore. IHCL reiterated its ‘Accelerate 2030’ strategy – doubling operational + pipeline hotels to 700+ over FY24–30; thus, doubling its consol.

Steady traction in earnings for India Shelter continued in Q3FY25 with RoE further expanding 30bps QoQ to 15.1%. Robust AUM growth at 8% QoQ, steady spread at >6% and stable credit cost QoQ were primary drivers of Q3 earnings growth of 7% QoQ / 54% YoY.

Gulf Oil (GOLI) delivered a relatively strong Q3FY25 with 10%/21.6% YoY growth in EBITDA/PAT to INR 1.2bn/INR 0.98bn (ISec: EBITDA/PAT INR 1.1bn/INR 0.87bn).

Gujarat Gas (GUJGA) reported 26/28% YoY decline in EBITDA/PAT to INR 3.8bn/INR 2.2bn (I-Sec est. of INR 4.1/INR 2.3bn) in Q3FY25.

Bharat Dynamics (BDL) reported a healthy Q3FY25 performance. EBITDA (adj. for provisions created) sored 120% YoY to INR 2.6bn while revenue surged 34% YoY to INR 7.9bn.

Aurobindo Pharma’s Q3FY25 performance was below our expectation due to lower-than-anticipated sales in US while Europe (up 22.7% YoY) and growth markets (up 39.2% YoY) maintained traction. EBITDA margin was 20.4% despite lower gRevlimid sales and INR 600mn cost of Pen-G plant.

VRL Logistics’ (VRL) Q3FY25 EBITDA performance was 26%/23% ahead of our and consensus’ numbers. Realisation (up 10% YoY) led improvement in both EBITDA and EBITDA margin, volume grew 1% YoY/QoQ (9MFY25: 4% YoY).