SCHAND reported an in-line operating performance with EBITDA margin of 43.1% (PLe 42.2%) while there was a narrow miss at bottom-line level due to higher-than-expected tax rate of 26.7% (PLe 21.9%) amid non-recognition of DTAs in subsidiaries. Management expects revenues to surpass Rs8,000mn with EBITDA margin of ~18-20% in FY26E led by 1) 5-7% increase in volumes as NCERT is expected to announce new syllabus books for grades 4,5,7&8, 2) multiple content syndication deals and 3) single digit price hike across product...
Management guided for revenue growth of 20% YoY with 150bps improvement in EBITDA margin in FY26. We revised our FY26/27E EPS by -3.4%/-3.6%, factoring in deferred orders and execution delays. BEML reported a strong quarter, with revenue growing 9.2% YoY and EBITDA margin improving by 110 basis points, supported by better material cost management and increased defence contributions. The FY25 order book stood at Rs140bn, below the guided ~Rs180bn due to delays in...
RAINBOW's Q4FY25 consolidated EBITDA grew by 9% YoY (down 15% QoQ) to Rs1.15bn, but 5% below our estimates due to weaker occupancy. RAINBOW enjoys higher margins, strong FCF generation with net cash B/S, and healthy...
JSTL has given FY26 cons prod / sales guidance of 30.5mt/ 29.2mt. JSW Steel (JSTL) reported inline operating performance in 4QFY25 led by lower RM, operating costs and improved subsidiaries' performance. Cons volume grew 11% YoY aided by newly commissioned 5mtpa Jindal Vijayanagar Metallics (JVML) capacity ramp up and stable domestic demand. Average cons NSR declined 3% QoQ due to muted steel pricing affected by imports. Decline in coking coal consumption cost by USD15/t and lower iron ore costs drove...
GE Vernova T&D India (GVTD) delivered a strong quarterly performance, registering a 26.2% YoY revenue growth alongside a notable adj. EBITDA margin expansion of 1,103bps YoY to 23.2%. Continued investments in grid modernization and the energy transition have driven the strong domestic performance of GVTD, further supported by robust opportunities and pipeline of HVDC projects in India. Meanwhile, sustained order momentum from group companies and increased traction in international markets such as Europe, the...
We cut FY26/FY27 EPS estimates by 0.7/3.5%, factoring in lower other income due to Rs4bn one time dividend paid in 3Q25. Operating parameters are showing an improvement led by 1) better demand conditions, supported by a higher number of wedding days in 1H26. 2) Stable store-level economics, aided by expansion into Tier-2 and Tier-3 cities. 3) BIS-related issues are expected to fully normalize over the next 912 months and 4) peaked out losses in FILA and expected scale up in Foot Locker and FILA from 2H26. Metro Brands Ltd (MBL)'s growth plans remain on track led by 1) Entry into...
Gujarat State Petronet (GSPL) reported a sharp decline in transmission volume to downward revision. Sequentially, implied tariff stood at Rs847/mscm, -3% QoQ. Lower volume and lower implied tariff resulted in EBITDA of Rs1.2bn, -35% QoQ (PLe & consensus Rs1.9bn). Higher interest cost resulted in even sharper...
incentives of Rs350mn and expect Rs510mn over FY26/27. The company expects MDF/plywood margin of 12%/7-8% in FY26. We had considered consolidated EBITDA margin of 11.8% with 1) steep increase in timber prices, 2) higher OEM vol in the MDF segment, 3) lower domestic volumes, and 4) lower realization with competition in MDF. Timber prices will continue to impact margins in coming quarters. The management has indicated moderation in...
Sun Pharma (SUNP) Q4FY25 EBIDTA (+11% YoY) was largely in line however moderate growth (9% YoY) in specialty sales after several quarters of strong double-digit growth was below our estimate. Over last few years SUNP dependency on US generics has reduced and company's growth is more functional on specialty, RoW and domestic pharma that has strong growth visibility. Though FY26 expenses (an additional $100mn spend) is likely to remain elevated given company are in investment phase to ramp up specialty...
We are upgrading ITC from Accumulate to BUY as we expect current margin/growth pressures to subside post 1H26. ITC is suffering margin pressure in cigarettes (high leaf tobacco prices and volume focused strategy), Paper (High wood prices and dumping) and FMCG (Tepid volumes, high input costs and hit in stationary business). However, we expect the scenario to change as leaf tobacco prices have started softening in current season, new wood supplies, integration of century paper and bottomed out margins (~40%...
