Highest Upside

In food delivery, GOV grew 18.8% YoY and adj. revenue grew 22% YoY, indicating possible share gains despite increasing competitive intensity.

Vedant Fashions Ltd (VFL), established in 2002 in Kolkata, is a leading player in India's celebration wear market, anchored by flagship brand Manyavar. Through its five brands Manyavar, Mohey, Twamev, Manthan, and Mebazthe company offers ethnic wear for men, women, and children. VFL operates 662 exclusive brand outlets (EBOs) across India and 16 EBOs in 12 global cities, spanning ~17.9 lakh sq. ft., with a presence across 26 Indian states...

V-Mart Retail’s (VMART) delivered 22% YoY revenue growth, on the back of 11% blended SSSG, partly boosted by the early festive season.

Vedant Fashion’s (VFL) 2Q performance was impacted by GST-linked dispatch disruptions, creating a ~6% delta between primary and secondary sales. However, the company has been struggling to revive growth sustainably, with its 1HFY26 revenue tracking 5% below 1HFY23 levels.

Capitalizing on India's Apparel Revolution Growth, Expansion, and Profitability Unleashed

Landmark Cars’ (LMC) EBITDAM, at 4.5%, was down 120bps QoQ (vs. I-Sec est.: 6.0%). Margin decline was due to lower GM on account of discounts/commissions offered on vehicle sales and higher share of new car vs. service revenue.

With basic needs in rural India being fulfilled through government initiatives, such as free food schemes and cash handouts for women, disposable incomes have risen, driving growth in aspirational spends that benefits value fashion retailers.

We upgraded Swiggy to BUY (see our report dated, 4th September, Internet: A buffet of tailwinds), reflecting an inflection in growth of the food delivery (FD) business and improved unit economics in the quick commerce (QC) business.

Eternal reported better-than-expected revenue growth, aided by strong NOV growth in Quick Commerce (QCom, 137% YoY) and accelerated shift to owned inventory model.

Eternal reported a 2QFY26 net revenue of INR135b (+90% QoQ/183% YoY). This high growth is mainly on account of shift to inventory ownership in quick commerce (Q-commerce), where revenue now also includes the full monetary value of goods sold as per Ind AS (and not just the marketplace commission).

Focused investment strategy and robust financial position: Info Edge has adopted a focused investment strategy centered on India's fast-growing startup ecosystem via direct financial investments through balance sheet /wholly-owned subsidiaries & through Alternate Investment Funds (AIFs) managed by its venture capital arm - Info Edge Ventures. As of March 31, 2025, the company's financial portfolio comprises over 110 investments. Going ahead, it plans an investment of upto 1000 crore in a new AIF scheme (IE Venture Investment Fund III - a scheme of Karkardooma Trust) to back India's...

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.

We met Gunender Kapur, Investor CEO - Vishal Mega Mart (VMM), to assess the progress on our thesis around sustenance of double-digit SSG, 2.5x expansion opportunity, and retention of best-in-class RoIC (~40%) for VMM.

Vishal Mega Mart (VMM) delivered another strong quarter, with ~22% YoY revenue growth, led by 25 net store additions (+15% YoY) and robust ~12.8% adjusted SSSG, benefiting from an early festive season.

We have a BUY on ABLBL, with a TP of Rs170 (25x Sep-27E EBITDA). ABLBL’s Q2 EBITDA was in line with expectations, albeit the performance was muted with 4% topline growth.

About the stock: Info Edge (India) Ltd. (Info Edge), is a leading online classifieds company with a strong position in recruitment (naukri.com), real estate (99acres.com), matrimony (jeevansathi.com), and education (shiksha.com). Among its early investments in start-ups, Eternal (previously Zomato) with 12.43% stake...

VMM sustained its strong growth momentum (+22.4% YoY revenue growth), driven by 12.8% SSSG and healthy retail area expansion. Profitability surprised us positively, driven by better revenue mix (higher apparel sales), operational efficiencies and operating leverage.

High confidence on Kerala TAM opening up in a material way was one of the major takeaways from our meeting with GK. Strong traction in Kerala with a ~100-store opportunity; entry in Tamil Nadu will be in a phased manner to protect store economics.

Quick commerce (QC) profitability improvement was significantly ahead of estimate (adj. EBITDA INR 40mn vs. consensus INR -1.3bn). We think this was aided by the move to inventory model.

Eternal reported 3QFY26 net revenue of INR163b, up 20.7% QoQ, above our estimate of 11.8% QoQ growth. Food delivery (FD) NOV came in at INR98.4b, above our est. of INR94.2b. Blinkit NOV came in at INR133b (up 120% YoY) vs. our est. of INR133.6b.