Highest Upside

Updater Services (UDS) reported a revenue growth of 12% YoY/2% QoQ to INR7.1b, in line with our estimate of ~INR7.1b. Core EBITDA margin came in at 5.0%, down 140bp YoY (vs. est. 6.4%). Consolidated adj. PAT stood at INR342m (up 9% QoQ), above our estimates of INR280m.

SIS (SECIS)’s 1QFY26 revenue was up 13.4% YoY/3.5% QoQ at INR35.4b vs. our estimate of INR34.5b. Revenue growth was aided by 18.9% YoY CC growth in Facility Management, whereas India Security/International Security posted 9.2%/12.1% growth 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.

We upgrade TeamLease to BUY from Add, with an unchanged SOTP-based TP of Rs2,050, considering ~8%/10% correction in the stock price over the past 3M/6M.

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.

Updater Services (UDS) reported a 2QFY26 revenue growth of 7% YoY to INR7.3b, below our estimate of ~INR7.7b. Core EBITDA margin came in at 4.3% (est. 5.9%), down 130bp QoQ.

Sagility India reported 5.8% QoQ USD revenue growth (organic growth at 0.7%), slightly ahead of I-Sec estimate in Q4FY25. It met its guidance of delivering mid-teens growth in FY25 with 15% YoY USD print.

SIS (SECIS)’s 2QFY26 revenue was up 15% YoY/5.9% QoQ at INR37.6b vs. our estimate of INR35.6b. Revenue growth was aided by ~5.7% growth in India security, whereas International Security/Facilities management posted a growth of 1.9%(CC)/5.9% QoQ.

IPO NOTE

Fabtech Technologies Ltd. (FTL) is a turnkey engineering solution provider catering to the pharmaceuticals, biotech, and healthcare sectors. The company provides extensive technical expertise and infrastructure to deliver end-to-end solutions for establishing aseptic manufacturing facilities. FTL also deliver standalone services such as equipment procurement, supply, and logistics management for both greenfield and brownfield projects. The company has footprints in more than 62 countries globally and across regions, including the Middle East, Africa, Asia, Europe, Latin America and...

IPO NOTE