Downgrades

Bajaj Finserv reported a resilient Q2 FY26, supported by steady performance across lending and insurance businesses. Bajaj Finance and Bajaj Housing Finance recorded healthy AUM growth and solid profitability, while Bajaj Life delivered its highest-ever VNB and margin expansion.

Strong Q2 with double digit volume growth; Upgraded to Buy Q2FY26 performance: Consolidated revenues grew by 6.3% YoY Rs.8,531.3cr. Decorative paint business registered a volume growth of 11% while revenues grew by 6% YoY. Consolidated gross margins improved by 242 bps YoY to 43.2% while EBITDA margins improved by 218bps YoY to 17.6%. EBITDA grew by 21.3% YoY to Rs.1503.4cr. This coupled with lower interest cost and higher other income led to...

ONGC’s Q2FY26 adj. EBITDA/PAT (standalone) came in at INR 175bn/INR 98.5bn (-3%/-18% YoY) vs. I-Sec’s estimate of INR 179.7/INR 96.5bn. Slightly lower-than-estimated realisation and higher opex drove the underperformance.

in the financing business (Bajaj Finance), life insurance (Bajaj Life Insurance), general insurance (Bajaj General Insurance) and securities business. Consistent, faster business growth and profitability remain in focus momentum sustaining and improvement in life insurance profitability, while general insurance remained subdued. Consolidated revenue grew 11% YoY to 37,403 crore. NBFC AUM rose 24% YoY to 4,62,261 crore, with PAT from lending up 22% YoY to 4,876 crore, reflecting robust disbursement and broadly stable asset quality (GNPA at 1.24%, NNPA at 0.6%). In GI premium grew 9% YoY to...

ONGC’s 2QFY26 revenue came in line with our est. at INR330b. Crude oil/gas sales were in line with our est. at 4.8mmt/3.9bcm. VAP sales stood at 592tmt (est. 681.5tmt).

With a 10% upside potential from the CMP, we maintain our BUY rating on the stock.

Quarter of milestones, EV and exports to fuel growth About the stock: Bajaj Auto (BAL) is the second largest motorcycle manufacturer and largest 3-W OEM domestically. It also has a presence in export markets. Strong momentum across core and new growth drivers: Bajaj Auto saw broad-based recovery across domestic, export, and EV segments, reflecting the company's strategic agility and diversified portfolio. Exports reached an all-time high, supported by geographical diversification and local assembly initiatives in Latin America, ensuring resilience against...

Trent’s revenue growth continued to decelerate in 2QFY26 (+17% YoY), as ~43% YoY area addition growth was offset by sharp ~17% YoY decline in revenue per square foot, indicating store-level sales cannibalization.

Consolidated revenue in Q2FY26 rose 5.1% YoY to Rs. 13,995cr on growth across manufacturing (+5.2% YoY), banking, financial services and insurance (BFSI, +6.2% YoY), retail, logistics and transport (+7.2% YoY) segments. However, revenue fell from communications (-2.2% YoY), technology, media and entertainment (-8.8%...

India is augmenting its transmission infrastructure to integrate renewables into the grid and Power Grid is a leading player in India’s transmission capex story, with >50% market share in transmission bids over the last 2 years.

Grasim Industries’ (Grasim) Q2FY26 EBITDA, at INR 3.66bn, fared better than our INR 3.26bn forecast – driven by betterthan-expected performance from the CSF and other small segments. For its paints business (Birla Opus), while revenues dipped marginally QoQ, the segment nonetheless gained market share with industry revenues likely having declined, both on a YoY and QoQ basis.

Powergrid transmits ~45% of the total power generated in India on its transmission network & owns ~84% of Inter-State transmission system. It also undertakes transmission related consultancy to more than 150...

Sun’s 2QFY26 EBITDA was ahead of the street and our estimates (by ~12%), on the back of a marginally higher gross margin and lower R&D spend.

Q2FY26- Decent numbers despite flat US growth - Revenues grew ~9% YoY to 14478.3 crore driven mainly by growth in India, global specialty portfolio (now named as Innovative products), RoW and Emerging Markets. India growth was strong at 11% to 4735 crore. The US remained flat YoY with a revenue of 4329 crore due to weakness in generics which was made good by Innovative traction to some extent. RoW markets reported growth of ~23% to 2041 crore, mainly due to growth in both generics and specialty. Emerging markets grew ~16% to 2837 crore,...

Resilient cigarette volumes, steady FMCG growth, and expected margin recovery from easing input costs underpin our positive outlook.

GRASIM’s 2QFY26 EBITDA was above our estimate, fueled by outperformance in the chemical business, while the VSF performance was in line. EBITDA increased ~13% YoY to INR3.7b (~14% beat).

Novelis’ (Hindalco’s 100% subsidiary) Q2FY26 (adj.) EBITDA of USD 422mn (and ~USD 448/te) was 4% better than our estimates due to lower-than-expected impact of the Oswego fire accident.

Maruti Suzuki’s Q2 FY26 quarterly performance reflected resilient revenue growth led by strong exports and better realizations, although margin softness persisted due to elevated operating costs and higher raw material pricing pressure.

In 2QFY26, Power Grid Corporation (PWGR) reported a standalone (SA) revenue of INR100b (-3% YoY), 6% below our estimate. EBITDA was 13% below our estimate at INR80.1b (-9% YoY), hit by a 55% YoY surge in other expenses.

The company's vision is to become a 244 GW+ company by 2037 of which ~120 GW would be contributed by renewable energy. Q2FY26 performance: NTPC reported muted earnings as extended monsoon and grid restrictions impacted coal PLF by 627 bps in Q2FY26 to come in at 66%. The company reported gross standalone generation of 83.2 billion units (BU) down 6% YoY while energy sold declined 6.24% YoY to 77.1 BU. Hence the standalone revenue for the quarter stood at 39167 crore down 3% YoY. The PLF for Q2FY26 at 66% whereas the same for the gas-based stations PLF was at 6.8%. The...