Downgrades

Cyient DLM is expected to see a gradual recovery in performance over the coming quarters, supported by execution of its healthy order backlog, ramp-up of recently won industrial and medical programs, and an increasing contribution from box-build and B2S revenues.

A 12% EBITDA beat was driven by stronger-than-expected ECD growth, led by double-digit growth in heating products and single-digit fan growth.

Supreme Industries Ltd.'s (SIL) Q3FY26 result was in-line with our estimate on net sales front, however fluctuating raw material prices led to inventory loss and weighed on operating margin. The management guided that the plastic piping demand is returning to normalcy after prolonged destocking, supported by good monsoons, improving rural sentiment, and revival in housing, agriculture, and infrastructure activity, particularly in the pre-demand season from January to March. SIL reported net sales of Rs26.8bn, higher by 7.1% YoY, while EBITDA came in at Rs2.3bn, marginally up by 1.6% over Q3FY25. It reported net profit of...

crore as volume growth of 7.5% YoY (+8.8% QoQ) negated the impact of lower realisation (-2.6% YoY, -9.8% QoQ). Total cost/ton declined by 2.3% YoY (-7.7% QoQ), mainly on account of lower RM cost and positive operating leverage. However, EBITDA/ton declined by 6.9% YoY (-32.6% QoQ) to Rs 254/ton, mainly on account of lower realization. Subsequently, EBITDA came at Rs 37.7 crore (+0.1% YoY, -26.6% QoQ). On PAT level, the company reported a loss of Rs 64.1 crore as...

Margin resilience and improving fundamentals support upside: Despite revenue headwinds, Mastek delivered sequential margin expansion. Adjusted profitability too improved (80 bps QoQ to 16.3%) even after factoring in seasonal furloughs and labour code impacts, underscoring execution resilience driven by AI-led operational efficiencies, lower subcontracting and disciplined cost management (43 bps) and forex (17 bps). The management has guided to maintain margins in the band of 16.5-17%. We model EBITDA margins at...

About the stock: Supreme Industries Ltd. (SIL) is the largest domestic Q3FY26 performance: Supreme Industries reported consolidated revenue of 2,687 crore (up 7% YoY/12% QoQ) for Q3FY26, led by 13% YoY volume growth (up 19% QoQ) at 1,83,794 MT (Plastic piping volumes were up 16% YoY at 1,46,986 MT). EBITDA margins came in lower than estimates at 11.7% (lower 63 bps YoY and 74 bps QoQ) due to one time impact of change in Labour Codes. Adjusted EBITDA was sequentially flat at 12.3%. PAT stood at 153.37 crore, down by 18% YoY. Share of revenues from value added products increased to...

Q3FY26- Chemicals Business drives growth- Revenues grew 6% YoY to 3,611.5 crore driven by the Chemicals business (49% of the revenues) which reported a growth of 22% YoY to 1,825 crore. Meanwhile performance films (36% of revenues) declined by 3% YoY to 1,342 crore and Technical Textiles (12% of revenues) reported a decline of 11% YoY for the third consecutive quarter to 453 crore. Consolidated EBITDA stood at 780 crore, up 26% YoY, translating to margins of 21%, up ~330 bps YoY driven by the chemical business EBIT which stood at 27%, up ~300 bps YoY....

Newgen Software delivered a steady but mixed Q3FY26 performance in a challenging demand environment. Revenue grew modestly at 5% YoY in Q3, mainly impacted by a high base of license sales last year and slower decision-making for large deals in India and the Middle East. However, the business quality continues to improve. Annuity revenues now form over half of total revenues, with subscription revenue growing a strong 29% YoY, providing better visibility and stability. The US, UK, and Australia showed healthy traction, while India & EMEA remain temporarily weak due to...

Annuity-led mix enhances visibility and stability: Newgen's transition towards subscription & annuity-led revenue model continues to strengthen business quality & revenue predictability with over half of revenues now coming from recurring annuity streams (+19.6% YoY). Strong growth in SaaS (+36.5% YoY) and ATS/AMC (+22% YoY), across US, UK & Australia also improves visibility & stickiness. However, near-term growth remains moderated by slower traditional license-led deal closures in India & EMEA and elongated enterprise decision cycles with recovery hinging on execution & deal timing....

Absence of new launch & softer sustenance sales impact Q3 pre-sales & collections: OBEREA reported weak pre-sales of 836 crore (down 56% YoY, down 36% QoQ) owing to delay in new launches along with sequentially lower bookings in Elysian, Eternia, Sky City and Three Sixty West projects. Consequently, collections were lower 30% YoY (down 28% QoQ) at 975 crore. The company held on to its increased prices in Goregaon and Borivali projects while maintained stable prices at Thane projects. Consolidated revenues (up 6% YoY at 1493 crore) was led by...

Strong performance (ex-residential), aided by improving occupancy and steady ARR growth: Domestic RevPAR grew 12% YoY to Rs.11,200/night, aided by higher occupancy at 75% (+290bps YoY) and high-single digit ADR growth (+9% YoY). As per our calculations, Room revenues grew 13% YoY to Rs.544cr, while F&B revenues grew 8% YoY to Rs.411cr. ITC-Ratnadipa posted 1.4x YoY RevPAR growth and turned EBITDA-positive on a YTD basis. We expect events such as the ICC Cricket T20 World Cup in Feb,26 (in India & Sri Lanka) to support occupancy and...

Poonawalla Fincorp reported a strong quarter, driven by sharp growth in AUM and a significant improvement in profitability. Asset quality continued to improve, with lower stress levels and a higher proportion of standard assets.

Near-term performance is likely to be shaped by the bank’s ability to sustain deposit momentum and defend margins in a competitive funding environment, keeping NIMs range-bound despite steady loan growth.

The near-term headwinds—muted domestic demand, elevated employee costs, and gestation-led pressure from new capacities—are likely to keep earnings growth and return ratios subdued over the next few quarters.

Bansal Wire Industries is planning to undertake greenfield and brownfield expansion at Sanand and Dadri to augment its installed capacity by ~24% to 0.77m tonne over the next 2-3 years.

Notwithstanding weak pricing environment and rising petcoke prices, strong volume growth and cost optimisation measures aided the company’s quarterly performance.

LTIMindtree is showing steady and improving fundamentals, supported by consistent execution and a clear AI-led strategy. Revenue grew 2.4% QoQ and 6.1% YoY in USD terms, despite a seasonally weak quarter, while EBIT margin improved by 20 bps sequentially to 16.1% due to cost discipline under the Fit for Future program. Order inflow remained strong at USD 1.7bn, reflecting healthy deal momentum and increasing wallet share from large global clients, especially in BFSI and manufacturing. Although the top five clients saw a temporary decline due to client productivity initiatives,...

Distribution network remains strong with substantial dealer penetration (2500+ dealers in farm equipment & 8500+ tie-ups in 2-wheeler segment) Q3FY26 performance: L&T Finance reported a steady performance in Q3FY26. Strong recovery was witnessed in retail disbursements at 22701 crore (up ~49% YoY, 20% QoQ), driven by urban finance as well as in rural business segment along with addition of gold finance. Retail book expanded 21.4% YoY to 111,990 crore, while consolidated AUM increased 20% YoY to 1,14,285 crore. NIM+Fees grew to 10.41%, driven by stable yields and efficient liabilities management. PAT improved...

Havells India’s (HAVL) 3QFY26 earnings were below our estimate due to the weak performance of Lloyd and lower margins in the cable & wire (C&W) and lighting segments.

JK Cement’s (JKCE) 3QFY26 EBITDA was up 13% YoY to INR5.6b (in line). OPM contracted 70bp YoY to ~16% (-90bp vs. estimate). EBITDA/t declined 7% YoY to INR935 (-6% vs. estimate).