Sell

SAIL’s Q2FY26 reported EBITDA, at INR 25.2bn, was 23% better than our estimates, driven by higher sales volumes, better by-product sales and operating leverage.

AUM growth continues to be subdued (6% YoY / 1% QoQ in Q2FY26) for LIC Housing Finance (LIC HF) since past many quarters.

GODIGIT delivered a largely in-line performance during Q2FY26, with combined ratio at 111.4% (down by 70bps YoY) vs our estimate of 111%. However, PAT at Rs1.17bn (+30% YoY) was lower than our estimate of Rs1.2bn.

MMFS reported a steady quarter, with PAT at ~Rs5.7bn (+8% QoQ/+54% YoY), ahead of Street and our estimates. Credit costs remained elevated at 2.2% (vs 1.9% in Q1), though the management expects moderation in coming quarters with full-year levels contained at ~1.7%.

Laurus Labs continues to shift toward a CDMO-led, technology-focused business model, leveraging its ARV portfolio as a steady cash generator.

Colgate’s Q2FY26 result reaffirms that business remains structurally fatigued, with no visible triggers for a turnaround. Revenue declined 6.2% YoY, implying a 7-8% volume decline amid GST-led destocking and continued competitive intensity.

TATA Elxsi (TELX) reported better-than-expected Q2FY26 performance on both revenue and margins fronts. However, signs of structural recovery in demand are yet to emerge.

We have revised our FY26E/FY27E EPS estimates by 0.4%/-0.8% as we maintain a cautious near-term outlook, given the temporary impact of the cybersecurity incident, moderation in media and communications growth, and slower recovery in healthcare.

Tata Elxsi (TELX) reported revenue of USD105m in 2QFY26, up 1% QoQ in CC terms, in line with our estimate. Growth was led by Media and Communications (up 3.7% QoQ CC), whereas Transportation/HLS declined 0.5%/4.6% QoQ CC.

*over or under performance to benchmark index Biocon Ltd is a biopharmaceutical company that develops therapies for chronic diseases such as autoimmune, cancer and diabetes. The company has developed and introduced novel biologics, biosimilars, differentiated small molecules and affordable recombinant human insulin and analogues. In Q1FY26, Biocon's consolidated revenue grew 14.8% YoY to Rs. 3,942cr, driven...

Other income to PBT is ~40% in FY25. The valuation multiple (P/E) based on core business earnings, i.e., excluding cash and tax-adjusted other income, stands at 71x on FY25 earnings. The company gained market
shares in both washing machine and refrigerators in FY25, despite a highly competitive landscape.

The stage-3 asset ratio in the gold loan portfolio declined to 2.58% in Q1FY26 from 3.98% a year earlier, supported by customer-led repayments aided by rising gold prices and flexible repayment options....

Glenmark Pharmaceuticals’ (Glenmark) Q1FY26 performance was below our expectation due to muted show across regions. Rise in other operating income inflated margins and PAT.

Deepak Nitrate’s Q1FY26 EBITDA at Rs1.7bn (down 44% YoY; up 11% QoQ) was in line with our estimate, albeit below consensus estimate.

Deepak Nitrite (DN) reported a muted operating performance in 1QFY26, as EBITDA declined by 39% YoY to INR1.9b.

Biocon’s Q1FY26 performance was marred by operating cost of new facilities for generic division and lower-thananticipated margins in biologics division.

Weak power demand impacted Torrent Power as it reported subdued Q1FY26 result. Gas based capacity forms 56% of the total installed capacity.

LIC Housing Finance (LIC HF) continues to feel the heat from increasing competition, as reflected in AUM growth remaining subdued at 7% YoY / 1% QoQ and asset yield reducing 20bps YoY / QoQ to 9.6% in Q1FY26.

Revenue: Consolidated revenue for the quarter increased by 31.4% YoY (-8.8% QoQ) to INR 15,696 Mn., significant beat on our estimates (+15.0%), driven by strong outperformance in the Custom Synthesis and the Generic FDF segment.

Relaxo Footwears’ (RLXF) 1QFY26 results reflect persistent volume pressure amid restructuring of distribution, muted demand and heightened competition.