Downgrades

*over or under performance to benchmark index PVR Inox is positioned for a recovery-led exit from FY26, with Q4FY26 already witnessing a blockbuster slate led by the second instalment of the Dhurandhar franchise, alongside select Bollywood and regional releases, driving significant box-office momentum. FY27 is expected to outperform FY26, supported by a highly anticipated and diverse content slate across languages, translating into sustained growth in footfalls and revenues. Beyond the near term, record box-office collections in CY25 reinforce a clear consumer preference for theatrical viewing over OTT. Management's focus on capital-light expansion, screen rationalisation and...

years will weigh on near-term margins but aim to deliver sustainable cost efficiencies and long-term growth. Rising input costs could pressure margins in the coming quarters, though selective pricing and supply-chain optimization should partly offset the...

Vinati Organics Ltd. (VOL) enjoys global leadership in two specialty chemicals, with a market share of 70% in IBB (isobutyl benzene) and 80% in ATBS (2Acrylamindo 2-Methylpropane Sulfonic Acid). In 9MFY26, revenue remained flat YoY, primarily due to lower realizations driven...

Revenue of the domestic business increased 13.0% YoY to Rs. 3,203cr, led by strong performance of growth businesses such as Tata Sampann (+45% YoY), Ready-to-Drink (RTD; +26% YoY), and Capital Foods and Organic India (+15%...

Varun Beverages demonstrated resilient financial results in Q4CY25, supported by robust volume growth and improved realisations despite earlier weather-related disruptions. The planned acquisition in South Africa is expected to strengthen manufacturing capabilities and deepen distribution networks, unlocking further synergies. The company's focus on operational efficiency and strategic investments, with moderated capital expenditure (capex) requirements in India and focused...

Sagility Ltd. is a healthcare-focused, technology-enabled solutions provider primarily serving U.S. health insurers (payers), along with hospitals, physicians, and medical device companies (providers). Headquartered in Bengaluru, the company operates 33 delivery centers across India, the U.S., and other global markets. In Q3FY26, ~90% of its revenue...

pick up in Q4FY26 with a target of ~Rs 23bn (vs. Rs 17.2 bn in Q3FY26) aided by improved salesforce and tech integration. It is targeting ~ Rs 70bn of disbursements in FY27 with an AUM growth of ~18% in FY27E and ~20% in FY28E. Growth is expected to be driven by i) branch expansion (~50 additions in FY27,...

Growth strategies are clearly anchored around: cost transformation driven by demand from US payers; capability-led differentiation, including AI.

Infosys has signed definitive agreements to acquire Optimum Healthcare IT (up to USD465mn; ~1.7x P/S) and Stratus Global LLC (up to USD95mn; ~2.2x P/S), with a combined cash consideration of ~USD560mn.

An escalation in geopolitical conflicts has triggered material airspace disruption across critical international corridors, creating a multi-layered impact on IndiGo’s network, revenue, and cost structures, with meaningful implications for the nearterm earnings trajectory and margin resilience.

Our meeting with the top management (MD/CEO/CFO) was encouraging. PAG is seeing improving demand trends (post Oct-25), and targets to deliver doubledigit sales growth and retain 19-21% EBITDA margin band in the near term.

Management is focused on diversifying the order book while maintaining a healthy margin profile to support long-term growth. However, given weak execution, elevated debt levels, and uncertainty around the outcome of the CBI investigation, we remain...

1G ethanol business shifting focus to brownfield projects, including multi-feedstock conversions and efficiency upgrades, amid tapering greenfield opportunities We recently interacted with the management of Praj Industries (PRJ) at a conference. The management expects FY27 to be a recovery year led by improved order inflows and better utilization of the GenX facility. The GenX facility is expected to break even at revenue of INR4-5bn, despite elevated fixed costs. The 1G ethanol business is undergoing a structural shift from greenfield to brownfield opportunities and servicesled revenue, while exports are expected to support growth. The CBG segment has a...

HDFC AMC is one of the top three mutual fund houses, with QAAUM of INR9.2t and overall/active equity market share of 11.4%/13% as of Dec’25, supported by steady net inflows, robust SIP momentum, favorable equity mix, and a strong distribution network.

Bajaj Finance (BAF) is navigating the current credit cycle with a clear focus on balance sheet resilience, consciously sacrificing near-term growth to protect long-term asset quality.