Mastertrust Broking & Investments Broker Research reports

Strong Q1 FY26 Performance and Positive Outlook: Company delivered a strong Q1 FY26, posting 17% YoY revenue growth driven by robust performance in textiles and apparel. EBITDA rose 29% YoY, supported by premiumization and operating leverage, despite garmenting being impacted by US tariffs.

Massive Scale-Up Ahead in Battery Storage: India’s BESS capacity currently stands at 204.5 MW / 505.6 MWh, but the Central Electricity Authority targets 41 GW / 236 GWh by FY31-32.

Consumption Boost / Discretionary Spending Upside: Sai Silk (Kalamandir) is well positioned to benefit from the upcoming festival and wedding season, which is expected to drive strong demand for ethnic wear across its stores.

Northern Arc’s ?13,351 crore loan book is strategically diversified across MSME (?2,687 crore, 20%), Consumer Finance (?3,502 crore, 26%), Rural Finance (?953 crore, 7%), and Intermediate Retail (?6,209 crore, 47%).

The sector—comprising bond issuance, bank credit, securitisation, and non-rating services—is projected to grow at a CAGR of 12% till FY28. CARE Ratings is expected to outperform with a revenue CAGR of 14% while maintaining healthy EBITDA margins of 38%.

Company currently operates 13 luxury properties with 3,553 room keys and plans to expand to 21 properties with 4,510 keys by FY28, indicating a strong growth trajectory.

In April 2025, China restricted rare earth exports, affecting Indian firms like Mahle, Bosch, TVS, Uno Minda, and Sona Comstar. These materials are vital for EVs and defense due to their use in high-strength permanent magnets. India, with 6.9% of global reserves, has launched a self-reliance push supported by incentive schemes.