We revise our FY26/27E EPS estimate by -30.8%/-9.5% factoring in weaker pace of execution and higher other expenses. BHEL reported a dismal quarter with a flattish revenue of Rs54.9bn and an EBITDA level loss of Rs5.4bn due to sharp increase in other expenses. Continued execution challenges in the Power continue to drive robust order inflows, including ~14.6 GW of thermal orders won in FY25 and a Rs65bn equipment order won from Adani Power during the quarter. BHEL's active diversification into transmission, transportation, defense, and Oil & Gas is yielding results with award of the prestigious 6 GW...
Fortis Healthcare (FORH) reported strong EBITDA of Rs4.9bn, up 43% YoY, marking strong beat across segments. Though hospital margin has improved by 360bps bps YoY over FY23-25 to ~20%, we see further scope for improvement aided by 1) improving case and payor mix, 2) cost rationalization initiatives and ramp-up of Manesar unit, and 3) new brownfield bed additions. Additionally, we expect margin to expand further, driven by the recent...
increase in employee cost and B2B contribution. CRS aims to outperform the industry by 6-7%, with EBITDA margin of 15-16% by the end of FY26. The company continues to hold off its sanitaryware expansion plans until the demand environment improves. We estimate revenue/ EBITDA/PAT CAGR of 11.4%/12.2%/10.7% over FY25-27E. We downward revise FY26/FY27E earnings estimate by 1.9%/2.8% and reduce TP to Rs7,178 (Rs7,389 earlier), based on 30x FY27E earnings. Maintain Accumulate' rating....
Lupin's (LPC) Q1FY26 EBITDA stood at Rs16.4bn (up 28% YoY) was in line with our estimates on the back of higher US sales supported by niche launches (gTolvaptan). LPC saw remarkable turnaround in profitability with ~2x jump in EBITDA over FY23-24 aided by better product mix, continued niche launches in the US, clearance from USFDA for facilities, domestic formulations regaining momentum and cost optimization measures. We expect margins to sustain given a strong pipeline in the US. Our FY26E and FY27E broadly remain...
While our EBITDA estimates are broadly unchanged, our PAT estimates for FY26E/FY27E have undergone a meaningful upward revision as we tweak our depreciation and interest cost assumptions given PVRINOX IN is increasingly adding screens via FOCO and asset light route. In 1QFY26, IND-AS 116 impact on depreciation & interest was lower by 3.7% YoY to Rs3,436mn. PVRINOX IN reported better than expected performance with pre-IND AS EBITDA of Rs950mn (PLe Rs779mn) aided by 10.4% YoY rise in SPH to Rs148 and tight cost...
Divi's Laboratories (DIVI) Q1FY26 EBITDA was 4% below our estimates led by lower margins despite higher CS revenues. We expect margins to improve, led by better product mix and stable raw material prices. Mgmt. suggested that moderation of raw material prices, increasing RFP's and commencement of some CDMO and contrast media contracts, will continue to aid revenues and margins. Our FY26E/FY27E EPS estimates stand marginally reduced by 3-4%. We expect 20% EBITDA CAGR and 12% PAT CAGR over FY25-27E. At CMP,...
reporting a 6.4% YoY increase in revenue, although EBITDA margin contracted by 90bps YoY to 15.2%. The quarter saw signs of recovery in European demand, supporting an ~18% YoY revenue growth in the Romania operations, while demand from the US softened due to ongoing tariff-related uncertainties. commercialization of Harsha's greenfield expansion, Advantek, is expected to support domestic growth. With strong traction in the bushings segment, management anticipates ~30% YoY growth in bushing revenue and maintains a high single-digit growth guidance for the consolidated business in FY26....
Gujarat Gas (GUJGA) reported decline of 19% YoY and 5% QoQ in total sales volume to 8.9mmscmd in Q1FY26 (PLe 9.3mmscmd). EBITDA/scm of Rs6.4 was also below our estimate of Rs7.4. EBITDA stood at Rs5.2bn (-3% YoY, +15.7% QoQ, PLe: Rs6.3bn, BBGe: Rs5.2bn) and PAT of Rs3.3bn (-1% YoY, +14% QoQ, PLe: Rs3.9bn, BBGe: Rs3.6bn). Morbi continues to face slowdown. Against vol of 9.6mmscmd in FY25, we build in 9.3mmscmd in FY26E and 10.1mmscmd in FY27E. Against EBITDA/scm of Rs5.4 in FY25, we build in Rs6 and Rs5.8 for...
We retain BRIT as high conviction pick given positive demand and margin outlook and benefits of sustained innovations and cost control. BRIT delivered ~9% revenue growth led by ~6% realization amid 2% volume growth in 1Q while GM is down 316bps YoY due to high base and ~25% decline in Other Operating...
