Sharekhan Broker Research reports

With sharp gross margin expansion and healthy traction in non-vehicle business ALL beats estimates in Q2FY25.

Aditya Birla Fashion & Retail Limited’s (ABFRL’s) Q2FY2025 numbers were muted with revenues rising 13% y-o-y (LFL growth of key brands remained muted), while EBITDA margin stood flat y-o-y at 9.9% and adjusted loss widened y-o-y to Rs. 230 crore.

We retain BUY on Astral with a revised PT of Rs. 2,150, factoring downwardly revised estimates and valuation multiple owing to near-term demand sluggishness.

? Indian Hotels Company Ltd’s (IHCL’s) Q2FY2025 performance on like-for-like (LFL) basis was strong despite a lean season with hotel business revenues growing by 16% y-o-y and EBIDTA growing by 30% y-o-y.

M&M reported AEBITDA at Rs. 3,950 crore in Q2FY2025 vs. estimate of Rs. 3,914 crore. This was the consecutive second quarter when it held up blended AEBITDA margin above 14% level.

Trent’s Q2FY2025 numbers were strong amid muted demand, with revenues growing by ~40% y-o-y, EBITDA margins stable y-o-y at 15.9% and PAT rising by 46% y-o-y.

Consolidated revenues increased 7% y-o-y for Q2FY2025 to Rs 1,224 crore lower to our estimates of Rs 1,270 crore.

Amara Raja missed bottom-line estimates on weak performance in the telecom and 4W OEM fronts, though EBITDA margin matched estimates.

Revenues stood at Rs. 957 crore, falling 19% y-o-y and 18% q-o-q, falling 5% short of our estimates.

Triveni Engineering and Industries Ltd’s (TEIL’s) Q2FY2025 performance was affected by a decline in profitability of sugar and alcohol divisions, resulting in a 93% y-o-y decline in EBIDTA; it registered loss of Rs. 22.4 crore.