HG Infra delivered a mixed set of results in Q2FY26 that underline execution progress on its large road/HAM portfolio but also reflect near-term noise from project accounting, higher financing and working-capital needs, on a standalone basis revenue rose to Rs11.5bn in Q2 vs Rs10.6bn a year ago (+8.4% YoY) but declined sharply QoQ from Rs17bn in Q1, driven by phasing of project billings. EBITDA dropped to Rs1.5bn with 12.7% margin versus 16.4% last year and PAT fell to Rs673mn, at 5.8% margin, reflecting higher finance costs and some oneoff provisions taken on specific contracts. We maintain BUY rating on the stock with revised TP at Rs1,126 value at 10x FY26E EPS. Q2 consolidated revenue was...
Lemon Tree Hotels Ltd.'s (LTH) Q2FY26 result was in-line with our estimates on key parameters. The hospitality industry witnessed multiple headwinds during H1FY26 including geopolitical tensions, floods, tariff wars, and GST revisions, which led to muted demand in Q2. Despite these challenges, LTH reported the best ever Q2 performance. Management noted that demand continues to outpace supply, especially in Tier 2 and Tier 3 markets where branded inventory remains limited and pricing power is improving. Room rates across the industry are still about 20% lower than 200708 levels (inflation-adjusted), indicating...
Tata Steel's Q2FY26 performance was above our expectations. Revenue increased 10% QoQ to Rs586bn, driven by 11% increase in volumes, aided by strong growth in India operations. However, this was partially offset by a 1% QoQ decrease in realizations owing to weak steel prices. Consolidated EBITDA increased 20% QoQ to Rs89bn, with EBITDA/t improving 8% QoQ to Rs11,247. UK operations saw EBITDA loss widen to Rs13,510/t in Q2FY26 from Rs7,829/t in Q1FY26, while the Netherland business posted improved EBITDA of Rs5,948/t, up from Rs4,074/t in Q1FY26. The improvement was supported by global cost...
Century Plyboards' Q2FY26 performance was above expectations. Revenue grew 17% YoY to Rs14bn, driven by strong growth in MDF (+28% YoY), Plywood (+15% YoY), and Laminate (+17% YoY), despite a decline in Particle boards (-18% YoY). EBITDA margin expanded by 320bps YoY to 12.6%, supported by margin improvement across MDF and laminates segment. Additionally, the new plywood facility at Hoshiarpur (capacity: 50,000 CBM), commenced operations, taking its plywood capacity to 3,94,800 CBM. Further, new plywood capacity expansion at Puttur has been initiated and is expected to commence operations...
IRCTC delivered a stable and profitable Q2FY26 with profit after tax rising 11% YoY to INR 341cr and strong EBITDA margin improvement to 34.3%. Growth was broad-based, led by Internet Ticketing (INR 386cr revenue, 85% EBITDA margin), robust Catering (INR 520cr, 13% margin) and buoyant Tourism (INR 150cr, 7% margin). Rail Neer volumes remained steady and capacity expansion is underway. Management highlighted disciplined cost control and margin sustainability driving recurrent improvements. Strategic priorities include building a unified travel portal leveraging AI/ML, expanding payment aggregator...
Voltamp Transformers (VAMP) reported performance as per expectations in Q2FY26. While Revenue and EBITDA grew by 21% and 25% respectively, PAT only grew by 4% owing to lower other income. This was on account of much lower mark to market gains YoY. VAMP clocked in sales volume of 3,709 MVA in Q2FY26 which is a rise of ~3% YoY in MVA terms. Voltamp has been a preferred vendor amongst its clients due to its prudent execution track record and working capital management despite the cyclical nature of the business. However, with several credible competitors adding capacity in the transformers...
IRCON delivered a subdued performance in Q2FY26 on a standalone basis, with revenue from operations at Rs18.5bn, down 19.5% YoY despite an 11% sequential recovery. EBITDA declined to Rs2.4bn from Rs2.9bn in Q2FY25, while margins contracted sharply to 12.9% from 14.9% a year ago, reflecting cost overruns and lower-margin project execution. PAT stood at Rs1.8bn, down 25% YoY though improving 23% sequentially, driven by better execution in railway and highway projects and higher other income. The decline in profitability and margin compression were key disappointments, primarily due to losses in...
KNR Constructions reported a disappointing Q2FY26, with consolidated revenue plunging 66.8% YoY to Rs6.5bn, impacted by sluggish execution and delayed project ramp-ups, though modestly up 5.5% QoQ. EBITDA dropped 78% YoY to Rs1.9bn with of margin 29.8%, while PAT fell 82% YoY to Rs1.0bn as monsoon disruptions, high employee cost, and legacy project tapering hurt performance. The standalone business saw sharper margin compression (10.9% vs 18.6% YoY) and weak cash generation amid elevated receivables and working capital of 144 days. Order book stood at Rs87.4bn, with two HAM projects achieving...
Sonata Software demonstrated a resilience performance with reported consolidated revenue at INR 2,119cr, reflecting a 2.3% YoY decline but stable order book growth with a book-to-bill ratio of 1.28x. International services revenue grew 3.2% YoY to USD 82mn, driven by strong demand in Healthcare, BFSI, and TMT verticals. EBITDA margin expanded by 70 bps QoQ to 17.3%, supported by higher utilization (87.3%), planned large-deal offshoring, and AI-led productivity improvements, partially offsetting salary inflation impact. Sonata secured one large multi-year healthcare deal and several mid-sized...
RVNL posted a disappointing Q2FY26, with weak profitability and cash flow offsetting modest revenue growth. Revenue from operations rose only 1% YoY to Rs49.3bn vs Rs48.7bn in Q2FY25 despite a healthy 26% QoQ rebound from the muted Rs39.2bn in Q1FY26. However, margins deteriorated sharply: EBITDA slipped to an estimated Rs3.9bn, translating to a 7.9% margin, down 120 bps YoY as cost pressures persisted and lower-margin EPC contracts formed a greater revenue share. PBT dropped 27% YoY to Rs3.bn, while PAT plunged 35% YoY to Rs1.9bn, with EPS falling to Rs0.94 vs Rs1.45 YoY. On the positive side,...
Kirloskar Oil Engines Ltd. (KOEL) posted splendid financial performance in Q2FY26. Power Gen (PG) segment clocked in substantial growth of 41% YoY to come in at ~Rs6.8Bn owing to healthy volume growth and increased HHP contribution. The Industrial segment also clocked in strong growth of 40% YoY emanating from the defense and the railways segment. Demand trends stay positive with infrastructure verticals such as residential and commercial realty exhibiting good demand. Demand also continues to be broad based across various infrastructure verticals. The management wants to focus actively on...
RITES Ltd delivered a resilient performance in Q2FY26, reflecting strong execution across its consultancy and export segments, robust profitability, and a solid order pipeline that reinforces long-term growth visibility. The company reported standalone revenue of Rs5.1bn, up 0.7% YoY and 12% QoQ, while PAT stood at Rs1bn, marking a healthy 25% YoY growth and 20% sequential rise. Consolidated performance was equally encouraging, with revenue at Rs5.7bn, EBITDA at Rs1.3bn, up 27.6% YoY, and PAT at Rs1.1bn up 32.2% YoY, translating into superior EBITDA and PAT margins of 24.4% and 18.8%, respectively. The...
Capillary Technologies is a global SaaS company offering end-to-end loyalty and engagement management solutions to enterprise clients across 47 countries. With a strong presence in India, the United States, the United Kingdom, the UAE, and other Asian markets, the company serves over 410 brands as of September 2025. Its diversified product suite - Loyalty+, Engage+, Insights+, Rewards+, and Customer Data Platform (CDP) - helps businesses design comprehensive loyalty programs, deliver omni-channel engagement, and drive repeat sales through advanced analytics and seamless system integration....
Surya Roshni's Q2FY26 performance was below expectations. Revenue grew 21% YoY to Rs18.4bn, driven by a 24% YoY increase in steel pipes segment, while LCD segment grew by 7% YoY to Rs4bn. Consolidated EBITDA margin expanded 142bps YoY to 6.4%, driven by steel pipe segment. EBITDA/t for steel pipes increased by 73% YoY to Rs5,013/t, led by improved product mix (API pipes), pricing discipline and operational efficiencies despite a Rs500/t inventory loss. Management has further lowered its volume guidance for the steel pipe segment to 0.98 mnT due to the shortfall in Q1 and expects a consolidated...
JK Paper Ltd.'s (JK Paper) Q2FY26 result was broadly in-line with our estimates on key parameters. The management guided that the Paper and Paper Board segment continued to face challenges arising from higher wood cost and lower sales realisation due to cheap imports. This has adversely impacted profitability across the product segments despite increased sales volume over the corresponding period. However, on a positive note the performance of the Company's packaging conversion subsidiaries improved during the quarter. Further, the management cited that the recent changes in GST rates have also had...
Neogen Chemicals (Neogen) delivered a subdued financial performance in the quarter. Profitability was impacted on account of higher employee costs, rise in insurance premiums, increase in finance costs owing to rebuilding of the Dahej MPP (post the fire incident) and lower utilization and startup costs at Neogen Ionics. The demand for Electrolytes and Salts has been delayed by 6 to 12 months owing to the delays in EV ramp up. However we continue to remain positive on the battery chemicals theme as growth from EVs and Battery Energy Storage Systems (BESS) will necessitate the creation of a domestic supply...
Greenpanel's Q2FY26 performance was significantly below our expectations. Revenue grew 18% YoY to Rs3.9bn, driven by robust growth in MDF segment despite weakness in plywood segment. Consolidated EBITDA dropped 17% YoY to Rs248mn, primarily impacted by an EUROINR forex loss of Rs 124mn and higher chemical prices. However, margins were aided by raw material optimization and improved power consumption efficiencies, and an EPCG benefit of Rs60mn. Management expects high teen digit domestic volume growth for MDF segment with high single digit to low double digit EBITDA...
Finolex Industries' (FIL) Q2FY26 result was a mixed bag as net sales was marginally below our estimate, while margins were beat to our forecast. Volume decreased by about 6% YoY mainly on account of prolonged heavy monsoon. The management anticipates a rebound in deferred demand once the monsoon recedes and does not foresee a significant overall decline in agri demand. The company faced global structural issues in the VCM market, which it is attempting to manage through long-term contracts to ensure continued supply. The management reiterated that the core focus remains on being a...
Safari's Q2FY26 performance was in-line with expectations. Sales grew 17% YoY to Rs5.3bn, driven by strong volume growth (up 17% YoY), while realizations remained flat YoY signaling continued price competition. Gross margin expanded by 322bps YoY to 47.1%, aided by softening in polycarbonate prices and backward integration. EBITDA grew by 55% YoY to Rs740mn, with EBITDA margin expanding by 342bps YoY to 13.9%, supported higher gross margins. PAT increased by 58% YoY to Rs469mn, supported by lower finance cost (down 13% YoY). We expect revenue/EBITDA/PAT to grow at a CAGR of 14%/26%/29% over...
