Buy

Apollo Tyres (APTY)’s Q2FY26 operating performance beat our estimate. Decline in RM basket drove strong margin improvement. Domestic replacement demand is expected to pick pace going ahead.

Akums Drugs and Pharmaceuticals (Akums)’s Q2FY26 performance was marred by pricing pressure in API and cost escalation on overheads of new plants. Volumes for the CDMO business, though, continue to grow (7% growth in Q2) despite flattish volumes for market.

Marico (MRCO) reported a consolidated revenue growth of 31% YoY (in line) in 2QFY26. Domestic revenue growth was 35% YoY with volume growth of 7%.

Vishal Mega Mart (VMM) delivered another strong quarter, with ~22% YoY revenue growth, led by 25 net store additions (+15% YoY) and robust ~12.8% adjusted SSSG, benefiting from an early festive season.

VMM sustained its strong growth momentum (+22.4% YoY revenue growth), driven by 12.8% SSSG and healthy retail area expansion. Profitability surprised us positively, driven by better revenue mix (higher apparel sales), operational efficiencies and operating leverage.

Hero MotoCorp’s (HMCL) 2QFY26 PAT at INR13.9b came in slightly below our est. of INR14.4b, largely due to lower other income. Margins expanded on the back of revenue growth and operational efficiencies.

Expansion in data centre business and energy transmission sector tailwinds to drive long term incremental growth. Q2FY26 performance: Techno Electric reported mix Q2FY26 performance with a strong revenue growth of 91% YoY to 843 crore, EBITDA grew 58% YoY to 111 crore, EBITDA margins declined by sharp 270 bps YoY to 13.2%. Consequently, PAT came in at 104 crore, up 10.4% .PAT margins sharply decline by 900 bps to 12.3%....

Pfizer’s Q2FY26 revenue grew at a faster pace of 9.1% YoY, surpassing IPM growth of ~8%. Rebound in growth across key brands has helped the company grow faster in the otherwise prevalent sluggish growth scenario for acute therapies.

Elgi is the second largest player in the Indian air compressor market (~22% market share) and among the top eight players globally Expansion in new international markets to drive long term incremental growth (rest of the world contributed ~48% in FY25) Q2FY26 performance: Elgi reported a decent set of numbers with amid US tariff for Q2FY26. Revenues grew 11.4% to 968 crore. EBITDA declined 1.2% YoY to 140 crore. EBITDA margins at 14.5% down 184 bps YoY (+50 QoQ). Consequently, PAT for the quarter came in at 121 crore up 28% YoY...

In 2QFY26, Indraprastha Gas (IGL)’s EBITDA/scm margin came in 9% below our estimate at INR5.2, primarily driven by higher gas costs due to the rising share of R-LNG in gas sourcing.