Buy

Infosys delivered a mixed operating performance in Q3, with beat on revenue estimates albeit margin missing expectations. Revenue grew 0.6% CC QoQ. Adjusted EBITM declined by 20bps QoQ to 20.8%, missing our estimate.

Formulating Growth and Scaling Across Pharma Verticals

HDFC AMC delivered a strong operating performance in Q3 FY26, supported by healthy momentum in equity flows and sustained retail participation through SIPs. Asset growth remained robust, with equity continuing to be the primary driver of incremental AUM.

Infosys raised its FY26 CC revenue growth guidance to 3–3.5% while maintaining a 20–22% margin band, reflecting modest growth amid H2 seasonality and macro caution.

Infosys (INFO) reported 3QFY26 revenue of USD5.1b, up 0.6% QoQ in CC/1.7% YoY in CC vs. our estimate of 0.3% QoQ in CC. Adj. EBIT margin stood at 21.2%, in line with our estimate of 21.1%. Adj. EBIT rose 3.1% QoQ/8.2% YoY to INR 96b (est. INR95b). Adj. PAT came in at INR76b, up 3.5% QoQ/12.0% YoY, above our estimate of INR73b.

Iveco Acquisition: rise in global footprint, deal at inexpensive valuation: Tata motors in the recent past have announced the acquisition of 100% stake in a CV manufacturer based out of Italy i.e. Iveco excluding its Defense business for an all-cash offer at 3.8 billion Euros (~ 38,000 crore). Iveco is a significant player in the CV domain and is present across the drivetrain technology namely diesel, CNG, electric etc. and has offerings across LCVs to M&HCVs included buses. The acquisition is being executed at a valuation of ~0.3x P/S & ~2x EV/EBITDA, which we believe is fair given...

Consistent in delivering superior RoA of 2+% and RoE of 13+% Key Development: Kotak Mahindra Bank's 1:5 stock split comes into effect on 14 January 2026, which was earlier announced as the record date. Under the split, each existing equity share of face value 5 has been subdivided into five equity shares of face value 1 each. The move, approved earlier by the board, is aimed at improving share affordability and enhancing liquidity, with no impact on the bank's...

Just Dial reported 6.4% YoY revenue growth in Q3FY26, with EBITDA margin expanding 102bps YoY driven by lower employee costs following Q2FY26’s headcount reductions.

ICICI Lombard’s (ICICIGI) gross written premium grew 15% YoY in 3QFY26 to INR74.3b (in-line). NEP grew 13% YoY to INR56.9b, (5% miss). For 9MFY26, it grew 13% YoY to INR165b.

ICICI Prudential Life Insurance (IPRU) reported APE of INR25.3b (in line), up 4% YoY, in 3QFY26. In 9MFY26, APE declined 1% YoY to INR68.1b.

We recommend a BUY rating on the stock.

We recommend a BUY rating on the stock.

Canara HSBC Life Insurance (CANHSBC) is one of the top-10 life insurance companies in India. It has a diversified product mix, with ULIP/NonPar/Par/Protection contributing 50%/34%/8%/8% in 1HFY26.

TCS demonstrated operational resilience amid macroeconomic headwinds through disciplined execution and strategic AI positioning. Revenue witnessed a muted 0.8% CC QoQ, reflecting cautious global spending. Topline grew 4.9% YoY, signaling the underlying recovery momentum driven by Consumer, EN&U, and Life Sciences verticals. Operating margin stood at 25.2% (excluding one-offs) backed by 80bps productivity gains which were neutralized by 50bps wage hikes and 50 bps brand partnership investments, indicating management's deliberate prioritization of longterm competitive positioning over near-term profitability expansion. AI revenue surged to USD 1.8bn annualized with 17.3% QoQ growth, backed by rapid -build projects delivering tangible value across industries rather than exploratory initiatives,...

AI traction strengthens medium-term growth visibility: AI remains a key growth driver, with annualized AI revenues reaching US$1.8 bn (~6% of the revenues), up 17.3% QoQ in CC terms (implying US$ 600 mn for Q3), and strong sequential momentum across all NextGen service lines. Client conversations around AI-led productivity, modernization and efficiency continue to strengthen, supported by a growing skilled workforce of 217,000+ AI-trained employees who possess higher-order AI skills (~3x increase YoY). This positions TCS well to benefit from a gradual demand recovery and rising...

We believe GRASIM has a compelling structural long-term investment case underpinned by an improving VSF earnings cycle, a stable margin in the chemicals business due to the company’s focus on specialty chemicals, and a long-term growth opportunity in decorative paints.

HCL Technologies (HCLT) reported 3QFY26 revenue of USD3.8b, up 4.2% QoQ CC, above our estimate of 2.3% QoQ CC growth. EBIT margin came in at 18.6% vs. our estimate of 18.1%.

TCS reported revenue of USD7.5b in 3QFY26, rising 0.8% QoQ in CC terms, above our estimate of 0.5%. Growth was led by regional market and others (up 4.6% QoQ CC).

With a 17% upside from the CMP, we maintain a BUY rating on the stock.

We maintain our BUY rating on the stock.