Downgrades

TeamLease’s (TEAM) 2QFY26 revenue growth of 8.4% YoY was below our estimate of 13% YoY growth. General Staffing (GS) grew by 4% QoQ, while Specialized Staffing grew 8% QoQ.

Quarterly Update Q2FY26

The company is witnessing a temporary softness led by the completion of large defense orders and muted PCBA volumes, however the growth trajectory is expected to revive meaningfully from Q4 FY26 onward.

Cyient DLM’s (CYIENTDL) 2QFY26 consolidated revenue/EBITDA declined ~20%/1% YoY to INR3.1b/INR312m. However, EBITDA margins expanded 190bp YoY to 10% (est. 9.7%), led by a better business mix (higher Aerospace mix of 37%).

Q1FY26 order intake was Rs14.3bn with domestic consultancy/overseas consultancy/turnkey mix of 9%/33%/57%. YTD order intake stood at ~Rs27bn. We cut our FY26/27E EPS estimates by -4.4%/-1.4%, factoring in temporary disruption from the Ramagundam Fertilizer shutdown. Engineers India (EIL) reported a strong quarter with 39.5% YoY growth in revenue and EBITDA margin remaining flattish YoY to 8.3% due to unfavorable revenue mix. margins). Temporary Q1 drag from the Ramagundam Fertilizer maintenance shutdown has been resolved, with operations normalized at ~90% utilization...

We maintain our BUY rating on the stock.

segment (realization/volume was lower by 9%/5% respectively). We expect revenue/EBITDA CAGR of 7%/8% over FY25-FY27E given rising competition in domestic stationary business and gradual migration of students from state...

JK Paper Ltd.'s (JK Paper) Q1FY26 result was broadly in-line with estimates on net sales and EBITDA front, while net profit was below our forecast. The Company's core business in Paper and Paper Board continued to face headwinds from cheap imports resulting in depressed sales realization and ongoing high domestic wood prices weighed on operating margin. Despite this, JK Paper improved its profits on a sequential basis. The management believes that packaging conversion business is amongst the fastest growing segments in the Indian Paper and Packaging industry driven by growth in end use industries....

EPL reported an EBITDA of INR2.3b (+22% YoY) in 1QFY26, in line with our estimate. This was driven by EBITDA growth across all regions, with Europe/America/EAP/AMESA witnessing a growth of 52%/35%/8%/2% YoY.

TeamLease (TEAM)'s 1QFY26 revenue growth of 12% YoY was below our estimate of 16% YoY growth. General Staffing grew by 2% QoQ, while Specialized Staffing grew 12% QoQ.

sustain its volume growth. Further, the management expects EBITDA/kg to improve to ~4142, supported by rising contributions from Pharma and FMCG. Considering these positive developments, we have an Accumulate rating with a target price of Rs. 941, based on 33x FY27E EPS....

We cut our earnings estimates by 2.5% for both FY26/FY27E mainly with correction in OI. However, CYIENTDL is confident to report 10%+ EBITDA margin in FY26 with improvement in revenue through gradual pickup in orderbook. We have revised TP to Rs540 (Rs546 earlier), based on 30x FY27E earnings and maintain our recommendation to Accumulate'. CYIENTDL defense segment got impacted due to completion of contract from domestic client (BEL), with the order book remained flat YoY to Rs 21bn. However, the company remains positive on maintaining book to bill ratio to >1x in FY26. In...

Quarterly Update Q1FY26

JK Paper Ltd.'s (JK Paper) Q4FY25 result was broadly in-line with estimates on key parameters. The company reported improved performance on a sequential basis led by higher volume and cost optimization. However, on YoY basis the earnings were subdued, reflecting underline pain in NSR and raw material cost. The management attributed weak earnings to surge in imports at low prices and high wood cost. During Q4FY25, the Company acquired 60% of the Equity Shares of Radhesham Wellpack Private Limited (RWPL) and 62.14% of Equity Shares of Quadragen Vethealth Private Limited (QVPL). We have fine-tuned earnings...

FY25 order intake was Rs82.1bn with domestic consultancy/overseas consultancy/turnkey mix of 43%/13%/44%. We cut our FY26/27E EPS estimates by -7.0%/-5.5%, factoring in lower dividends from equity investments leading to lower other income and downgrade our rating from Buy' to Accumulate' due to sharp run up in the stock price. Engineers India (EIL) reported a strong quarter with 25.5% YoY...

SCHAND reported an in-line operating performance with EBITDA margin of 43.1% (PLe 42.2%) while there was a narrow miss at bottom-line level due to higher-than-expected tax rate of 26.7% (PLe 21.9%) amid non-recognition of DTAs in subsidiaries. Management expects revenues to surpass Rs8,000mn with EBITDA margin of ~18-20% in FY26E led by 1) 5-7% increase in volumes as NCERT is expected to announce new syllabus books for grades 4,5,7&8, 2) multiple content syndication deals and 3) single digit price hike across product...

Even the domestic stationary business is reeling under pressure from falling volumes and declining realizations. While price reset happened in FY25 due to fall in paper prices and could be deemed transitory in nature, volume decline of...

Quarterly Update Q4FY25

DOMS reported an in-line performance with revenues of Rs5,087mn (PLe core stationary business was at multi-quarter lows of 14%. Though we foresee near term growth challenges, the long-term story remains intact as the new development plan on 44-acres land parcel at Umbergaon is on track and the first building is expected to be ready by 3QFY26E. Further, phased expansion in capacities for pens, pencils, mathematical boxes, and paper stationary...

Quarterly Update Q4FY25