Downgrades

We recommend a BUY on the stock with a target price of Rs 1,900/share, implying an upside of ~10% from the CMP

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 H1FY26, KEC's order book grew by 15% YoY to Rs.39,325cr, driven by robust order inflows of Rs.16,050cr, reflecting a 19% YoY increase. The company has guided for order inflows in the range of Rs.28,00030,000cr for FY26, supported by strong traction in T&D projects across both domestic and...

We maintain a BUY rating on the stock.

infrastructure sectors such as power T&D, railways, civil, urban infrastructure, solar, smart infrastructure, oil & gas pipelines and cables. A strategic mix in portfolio of T&D (65%) and non-T&D (35%) Strong T&D prospects in domestic and international markets (35% of backlog from international markets) Q2FY26 performance: KEC reported a robust Q2FY26 with Revenue at 6091 crore up 19% YoY, mainly from T&D business which grew 44% YoY. The renewables and cables business grew by 5% and 19% YoY to 190 crore and 524 crore, whereas...

Gujrat State Petronet’s (GUJS) 2QFY26 revenue/EBITDA stood 9%/13% below our estimate at INR2.3b/INR1.7b, as total volumes came 8% below our estimate at 28.5mmscmd.

Q2FY26 performance: MCX reported healthy result as expected with revenue of 374 crore, which increased by 31% YoY and was flattish sequentially. Average daily turnover (ADT) for futures segment has increased 55% YoY, 3% QoQ to 41,758 crore while options premium ADT has increased 25% YoY, 4% QoQ to 4096 crore. Sharp surge in price and volatility of gold as well as silver has boosted ADT growth. EBITDA grew 36% YoY and 1% QoQ at 243 crore. EBITDA margins...

Krishna Institute of Medical Sciences (KIMS)’s Q2FY26 revenue was in line with our expectation. That said, EBITDA loss at Maharashtra of INR 96mn (-100bps) and Karnataka of INR 255mn (-265bps) coupled with lower margin at Kerala cluster dragged EBITDA margins to a low of 21.2%.

KEC posted good execution growth of 19% YoY and margin improvement of 80bp YoY in 2QFY26. The slight miss in PAT was attributed to higher interest expenses, which moved up due to higher debt and higher working capital.

Global Health (Medanta) delivered better-than-expected revenue (9% beat) in 2QFY26. However, it delivered marginally lower-than-expected EBITDA/PAT (3%/2% miss) for the quarter.

Amber Enterprises (AMBER) posted a weak performance in 2QFY26. Weakness was driven by the consumer durable segment, which was impacted by lower demand and delayed purchases owing to GST 2.0.

Weak Quarter; Most of the pain priced in! About the stock: NCC is one of the leading infrastructure companies with Well-diversified order backlog, robust execution capabilities, and a strong focus on working capital to be key over next few years Q2FY26 Performance: NCC on standalone basis, reported a weak set of numbers for Q2FY26, with revenue at 3,726 crore, down 16.2% YoY, impacted by sluggish execution owing to extended monsoon. EBITDA declined 30.8% YoY to 277.5 crore, while margins contracted by 158 bps YoY to 7.4%. PAT stood at 101 crore,...

NCC’s Q2FY26 reported a decline of 16% in revenues in Q2FY26 (vs I-Sec’s flat expectation). The execution was negatively impacted on account of low execution in existing order book for water segment (due to payment delays), prolonged monsoon and Co delay in start of work on order received during FY25 (40% of current order book).

Amara Raja’s (ARENM) 2QFY26 PAT at INR2.1b came in line with our estimates. Even at the operating level, EBITDA margin was in line with our estimates at 12% (+50bp QoQ).

Quarterly Update Q2FY26

NCC Limited reported a soft quarter as execution headwinds and workingcapital strain weighed on results. Consolidated revenue declined 12% YoY to Rs45.8bn vs 52.2bn in Q2FY25 with EBITDA at Rs3.9bn, reflecting a margin of 8.7% versus 8.5% last year. PAT stood at Rs1.55bn with a net margin of 3.4%. On a standalone basis, revenue fell 16% YoY to Rs37.7bn while PAT dropped 37% YoY to Rs1.bn. H1 FY26 revenue was Rs97.9bn, down 9.3% YoY, reflecting a calibrated execution approach amid delayed project mobilization, extended monsoons, and elongated client payment cycles. Management cited heavy rainfall across multiple states, ROW delays, and slower receipts in water/JJM...

Tata Chemicals (TTCH)’s 2QFY26 consolidated EBITDA declined 13% YoY, led by subdued performance in America (TCNA)/Africa (TCAHL)/Rallis, with EBITDA down 65%/58%/5% YoY due to a weak demand-supply scenario.

In-line result; robust volume growth trends continue: Indian Energy Exchange (IEX) reported 2QFY26 standalone revenue of INR1.5b and EBITDA of INR1.3b, both in line with estimates, supported by traded electricity volumes of 35.2BUs, which were also in line with expectations.

Five Star Business Finance’s (FIVESTAR) 2QFY26 PAT grew 7% YoY to INR2.86b (in line). PAT in 1HFY26 grew 6% YoY and we expect PAT in 2HFY26 to grow by 15% YoY.

After successfully strengthening its retail asset franchise during FY24–25, PNB Housing Finance (PNB HF) has shifted its focus towards enhancing profitability going ahead, and its highest quarterly (since FY21) RoE at >13% during Q2FY26 is a reflection of sustained improvement across financial parameters despite management transition.