Highest Upside

Targeting India's Growing Middle-Class Housing Needs

Special Situation Report

REC reported a healthy Q1 with its loan assets growing 3% QoQ despite a seasonally weak quarter. Calculated credit cost (annualised) was negative 43bps with the restructuring of the TRN Energy account, which led to an ECL reversal of INR 2.7bn. NIMs and spreads were higher in Q1 vs. FY25 levels.

KBL reported a 12% PAT miss in 4Q at Rs2.5bn, due to lower margin (down by 4bps QoQ to ~3%) and higher staff costs owing to higher actuarial provisioning on retirement benefits of Rs1.1bn.

REC reported a soft quarter, with moderating growth and disbursement led by higher repayments (including prepayments) and NPA resolutions, while margin and asset quality were stable.

Aided by Issuer Solutions’ strong, 13% y/y, performance and International & Other Investor Solutions’ 26% y/y, KFin Tech’s revenue grew 10.3% y/y to Rs3.09bn.

We expect moderate multiple expansion as the bank sustains mid-teen RoE, stable margins, and continued balance sheet strengthening.

We maintain our BUY recommendation on the stock.

UTI AMC’s 1QFY26 operating revenue stood at INR3.8b (in line), up 13% YoY/6% QoQ. Yield on management fees stood at 42bp in 1QFY26 vs. 43.4bp in 1QFY25 and 42.4bp in 4QFY25.

Research report date Feb 21, 2024(RC-1041) and Research Reports dated Nov 21, 2024 (RC- 882) In 2024, it touched an all-time high of Rs 1,222 on Aug 01, 2024. LIC has proposed a dividend of Rs 12/- for FY25. Keeping in mind the dominant position in the life insurance industry and...

,Research Reports dated Nov 21, 2024 (RC- 882) and Research Report dated June 02,2025 (RC953) LIC has proposed a dividend of Rs 12/- for FY25. Keeping in mind the dominant position in the life insurance industry and attractive...

Aditya Birla Sun Life AMC’s (ABSLAMC) 1QFY26 operating revenue grew 16% YoY to ~INR4.5b (in line), leading to YoY improvement in yields to 44.4bp from 43.9bp in 1QFY25 (vs. our est. of 44.7bp).

Aptus’ favourable AUM mix (only AHFC with a separate NBFC) with a high-yielding (~18–20%) non-HL portfolio – constitutes ~40% – alongside steady ~30% AUM growth during the past 8–12 quarters and tight control on asset quality has helped it become the first AHFC (under our coverage) to deliver >20% RoE in Q1FY26.

Riding the Gold Loan Surge

IndoStar Capital Finance (IndoStar) delivered a weak performance in 1QFY26, with muted disbursements and weak AUM growth, impacted by tighter stringent underwriting and seasonal factors.

HomeFirst’s 1QFY26 PAT grew 35% YoY to INR1.2b (in line). NII grew ~33% YoY to INR1.9b (in line). Other income jumped 60% YoY to INR609m (est. INR395m), aided by higher assignment income of INR247m (PY: ~INR195), higher fee income from insurance commissions, and higher investment income from the proceeds of the equity raise in Apr’25.

Power Finance Corporation (PFC) reported better-than-expected PAT at INR 51.1bn, up 21% YoY/down 12% QoQ, aided by negative credit cost.

PNB Housing Finance (PNBHF) delivered a resilient and well-rounded performance in FY25, effectively navigating regional headwinds (in states like Karnataka and Telangana/AP) and yield pressures stemming from repo rate cuts.

The company has geographically diversified asset base with term loans outstanding across 23 states and 4 union territories Q2FY26 performance: IREDA reported strong performance on AUM momentum in Q2FY26, along with normalisation in credit cost supporting profitability. AUM stood at 84,478 crore, registering 30.8% YoY/ 5.7% QoQ growth. NIM improved to 3.72% (up ~12 bps QoQ/~40 bps YoY), supported by 16-bps sequential decline in cost of borrowings to 7.2%. PAT came in at 549 crore, up 42% YoY, driven by robust growth in AUM and higher margins. Post a surge in Q1FY26, GNPA and...

360ONE WAM (360ONE) reported an operating revenue of INR6.6b (in line), reflecting 10% YoY growth in 1QFY26.