Buy

GRASIM’s 1QFY27 operating performance was above our estimates, driven by lower-than-estimated losses in paint business as it benefitted from lower-cost inventory and lower advertisement expenses.

SBI reported clean earnings beat, with standalone PAT of INR 21,122 Cr, up 10.2% YoY and 7.3% QoQ, marking a record quarterly profit and exceeding our INR 19,377 Cr estimate. The beat was driven by NII and a sharp sequential decline in operating expenses, partly offset by a normalisation in provisions from the Q4 trough.

UltraTech Cement (UTCEM) continues to extend its lead over peers across scale, market share, cost leadership, and cash-flow generation.

Power Grid (PWGR) has begun FY27 broadly in line with its full-year execution targets. Q1 capex came in at INR 78bn (vs. INR 70bn YoY) and the commissioning at INR 53bn (~3x YoY), keeping the company on track for its unchanged FY27 guidance of INR 370bn/300bn, respectively.

State Bank of India (SBIN) reported 1QFY27 PAT of INR211.2b (up 10.2% YoY/up 7.3% QoQ, 15% beat), led by robust treasury and controlled opex.

State Bank of India (SBI) reported Q1FY27 PAT of INR 211bn (up 10% YoY; 4% beat), led by NII growth of 14% YoY and stable net slippages. It sustained 1.1% RoA in a seasonally weak quarter. Core PPOP growth was strong at 20% YoY, aided by strong core fee and opex.

Hindalco (HNDL)’s Q1FY27 EBITDA, at INR 140bn is ahead of our expectation (+73% YoY/37% QoQ) driven by improved LME driven realisations across businesses.

Hindalco’s (HNDL) consolidated net sales stood at INR848b (+32% YoY and +9% QoQ), above our estimate of INR775b during the quarter. The growth was mainly driven by favorable metal pricing.

Titan Company (TTAN) delivered another strong quarter, with consolidated revenue growing 29% YoY. Standalone revenue grew 24% YoY, while standalone jewelry sales (ex-bullion) rose 38% YoY.

Trent delivered another quarter of strong margin performance, with 36%/26% YoY growth in standalone pre-IND AS EBITDA/reported PAT.

Novelis’ (Hindalco’s subsidiary) Q1FY27 (adj.) EBITDA was ahead of our estimate, at USD 516mn (+12% QoQ/+23% YoY), driven by USD 47mn Oswego insurance proceeds.

ONGC’s Q1FY27 adj. EBITDA/PAT (standalone) came in at INR 292.5/INR 170.4bn (+67%/2.1x YoY), ahead of I-Sec and Street’s estimates. Consol. adj. EBITDA/PAT stood at INR 163.9/INR 115.5n (-40%/+18% YoY), driven by weaker performance by subs HPCL (reported EBITDA loss of INR 161.4bn).

ONGC’s 1QFY27 standalone revenue came in line with our est. at INR465b. Crude oil/gas sales were 9%/8% below our est. at 4.4mmt/3.7bcm. However, reported oil realization was USD99.5/bbl.

In Q1FY27, Bharti Airtel (Bharti) exhibited a robust performance across segments, showcasing its execution prowess. Mobile business’ revenue rose 3.8% QoQ, implying potential market share win.

Bharti Airtel reported a strong performance in 1QFY27, with consolidated EBITDA rising 6% QoQ (3% ahead), driven by outperformance in India wireless and strong show continuing in Airtel Africa (AAF).

Tata Steel’s (TATA) standalone revenue stood at INR369b (+19% YoY and -4% QoQ) against our estimate of INR348b. The growth was largely driven by strong NSR, offsetting the muted volume during the quarter.

Bajaj Finserv (BJFIN) reported consolidated revenue of INR420.4b (+19% YoY) and PAT of INR31.3b (+12% YoY) in 1QFY27. Bajaj General (BGen) reported 11% YoY growth with respect to GWP at INR57.9b (in line).

Sun Pharma (SUNP) delivered in-line revenue/EBITDA in 1QFY27, whereas adjusted PAT came in higher than expected (11% beat), led by higher other income.

Bajaj Finance (Bajaj) entered FY27 on a strong note, with its Q1FY27 performance exceeding our expectations across key business parameters.

Mahindra & Mahindra (M&M)’s reported EBITDAM of 12.2% was below our estimate. While farm EBITM was marginally better than expectation, auto EBITM was a slight miss.