Downgrades

Management remains positive on demand visibility across rail traction, data centers, power equipment, and export programs, supported by rising high value-added mix and upcoming capacity additions.

Granules India appears to be entering a phase of structural recovery, supported by steady progress on regulatory milestones (notably the remediation of Gagillapur) and a 40% incremental formulation capacity expansion at its Genome Valley site, which should meaningfully reduce supply constraints.

Tata Motors Passenger Vehicles Ltd (TMPV) delivered one of its worst financial performance in recent times recording a consolidated loss of INR 55b largely due to significantly weak performance at JLR (EBITDA margin at - 1.6% Vs our estimate of 7%) even as India PV business performance was largely in line.

DreamFolks (DFS) posted a sharp revenue decline of 41% QoQ / 35% YoY to INR2.0b in 2QFY26, reflecting the significant disruption following the suspension of domestic lounge services (~90% of revenue).

Sun TV’s ad revenue in Q2FY26 was weak (down 12.9% YoY) as FMCG companies continued to divert budgets towards digital platforms. However, subscription revenue grew 9% YoY.

Siemens (SIEM) delivered a revenue beat, while profitability came in slightly below our estimate. Segment-wise, smart infra and mobility did well in terms of revenue, while the digital industry remained weak on both revenue and margin fronts.

Chemplast Sanmar (CSL) has been enduring challenges over the past two years due to a weak cycle in PVC business; however, the expectation was that policy action should aid business recovery which may have been deferred.

Akums Drugs and Pharmaceuticals (Akums)’s Q2FY26 performance was marred by pricing pressure in API and cost escalation on overheads of new plants. Volumes for the CDMO business, though, continue to grow (7% growth in Q2) despite flattish volumes for market.

Natco’s Q2FY26 result was ahead of our expectations, driven by higher supplies of gRevlimid which would fade away in H2FY26; management guides for profitability to drop to INR 2.75-3bn in H2 (vs. INR 10bn in H1).

BDL’s Q2FY26 performance beat consensus expectation as EBITDA grew 90% YoY driven by strong sales (+114% YoY). EBITDA margin fell 180bps YoY to 16.3%, implying an adverse product mix (gross margin was lower) and potentially higher R&D expenses (other expenses were higher).