Buy

MM reported an in-line operating performance in 3QFY25. EBITDA margin expanded 160bp YoY to 14.6% (est. 14.2%) led by improved mix.

DreamFolks (DFS) posted a revenue growth of 7.3% QoQ/11.5% YoY to INR3.4b, in line with our estimate of INR3.3b. Gross profit was flat YoY and down 2.5% QoQ to INR382m, with a gross margin of 11.2% (down 110bp QoQ). EBIT margin came in at 6.5%, down 220bp YoY/50bp QoQ. Consolidated PAT was INR169m (down 16% YoY/up 5% QoQ).

Apollo Tyres (APTY) posted a weak 3QFY25, with EBITDA margin down 460bp YoY to 13.7% (vs. est. 14.6%), driven by pressure in the standalone business, although Europe margins improved QoQ.

Oil India clocked Q3FY25 SA EBITDA of Rs21.3bn – a 5% miss, mainly on the 3% revenue miss due to lower realizations, crude sales. SA PAT of Rs12.2bn missed our estimates by 19% on lower Other Income.

GOLI’s Q3FY25 core lube volumes grew 7% YoY (in line), while AdBlue was up 16% YoY (recovery QoQ, a 9% beat). EBITDA was slightly 1% below estimate on higher opex, while APAT was 4% lower due to higher finance cost from forex losses.

Delhivery’s Q3FY25 revenue met our expectations, but EBITDA fell short due to increased vehicle rental costs driven by higher truck spot rates during the festive season.

APTY delivered a steady Q3, with revenue growth accelerating to 5% YoY, surpassing our estimate (by 3%), and driven by strong replacement demand; offset by flattish exports and weak OEM demand.

Apollo Tyres’ (APTY) Q3FY25 standalone EBITDAM was down 100bps QoQ at 11.1% on RM cost increase. EU EBITDA margin increased ~290bps QoQ despite RM price increase, led by higher mix of UHP tires and cost-reduction initiatives.

Mahindra & Mahindra’s (M&M) EBITDA margin at 14.4% was up ~20bps QoQ (vs consensus estimate of 14.7%); auto segment’s EBIT margin was up 20bps QoQ at 9.7%, and FES EBIT margin increased 60bps QoQ to 18.1%.

We recently hosted Indian Hotels’ (IHCL) management for meetings with investors in Singapore. IHCL reiterated its ‘Accelerate 2030’ strategy – doubling operational + pipeline hotels to 700+ over FY24–30; thus, doubling its consol.