Sector Updates

Our Top Earnings Plays: Lupin, Biocon and Fortis.

Our Top Earnings Plays: APL Apollo Tubes, Hindalco, NALCO, Tata Steel.

The key result plays are as follows: Positive Result Plays: ICICI Bank, Kotak Mahindra Bank, SBI, AU SFB, Ujjivan SFB, Shriram Finance, SBI Life. Negative Result Plays: Manappuram.

Q3FY26 is expected to mark the start of a meaningful recovery for the FMCG sector as the September GST impact fully normalises and trade restocking improves.

Aluminium: Aluminium prices increased by 3.0% WoW to $2,991/tonne, driven by supply tightness as China continues to enforce the 45mnT cap on alumina smelting capacity. Improved regional demand led Chinese...

In our monthly Hotels update we have summarized key events of the domestic hotel industry, new hotels signing/addition by key players during the month and pricing trend of key cities in December, 2025. We have analyzed pricing of 171 hotels with ~33,000 keys across 8 cities to understand the trend over last 24 months (Exhibit 1-8). The month witnessed mixed trend on ADR front on YoY, while on MoM ADR increased marginally. With the airlines fiasco in the start of the month, hotels witnessed booking cancellations. However, later demand improved with year-end travel plans and Christmas vacations. We remain optimistic on domestic hospitality growth story over...

Q3FY26 Earnings Preview - CEMENT

For our pharma coverage universe, we expect Revenue to be largely steady at INR 644,525 mn in Q3FY26E, translating into 3.7% YoY growth and a marginal -0.3% QoQ.

India’s automobile sector closed calendar year 2025 on a strong and steady note, as December sales reflected both sustained post-festive momentum and the normalization of market activity after two record-breaking months.

We prefer TVS Motors in 2Ws (Eicher seems fully valued at CMP); M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also like Ashok Leyland in the CV space, followed by a close watch on Eicher (VECV) for any market share gains.

India's automotive OEMs posted healthy volume prints for December 2025. It was primarily driven by sustained demand momentum led by GST rate cuts, which lowered the vehicle prices. CV & Tractor segment outperformed peers for Dec'25. CV space reported healthy volume prints with continued recovery visible across the M&HCV & LCV segments. M&M set the bar high, outperforming in the PV space while continuing with its dominance in Tractor segment. TVS motors continued to perform well in the 2W domain while Ashok Leyland outperformed in the CV space....

The Indian IT sector is poised for a gradual recovery in Q3FY26, driven by accelerating AI-led transformations, cloud modernization, and vendor consolidation amid cautious global spending.

The cement sector in India experienced subdued demand during Q3FY26, particularly in October and November 2025, following a moderate growth in the previous quarter.

The Indian automobile industry is poised for a healthy performance in Q3FY26, supported by sustained festive season momentum spilling over from October-November, favourable government policies including GST rationalisation on certain segments, improving rural incomes due to a normal monsoon, and gradual easing of interest rates.

Our NBFC coverage universe is expected to report Total AUM of INR 7,789 bn in Q3FY26E, implying 6.0% QoQ and 23.9% YoY growth, reflecting a steady disbursement environment and incremental traction across secured and select retail segments.

Across the coverage universe, Q3FY26 is expected to be another quarter of healthy operating traction, with consolidated Net Interest Income (NII) for the banks in our universe projected to grow in mid single digits sequentially and low double digits year on year, supported by estimated advances growth of around 2.6% QoQ and 10.6% YoY and deposit accretion of about 4.5% QoQ and 12.3% YoY.

In November, Consumer Price Index (CPI) inflation rose to 0.71%, reflecting a gradual uptick in price pressures across the economy. Meanwhile, Wholesale Price Index (WPI) remained in negative territory at –0.32%. The moderation in food deflation came as prices of vegetables, eggs, meat and fish, spices, and fuel and light firmed up.

Fitch Ratings raised India’s FY26 GDP growth forecast to 7.4% from 6.9%, citing strong private consumption, rising real incomes, and the positive impact of GST reforms. This came after the government data showed GDP growth reaching a six-quarter high of 8.2% in Q2FY26.

India’s FMCG industry saw growth moderate in Q2FY26, largely because the market adjusted to recently revised GST rates and extended monsoon.

India’s automobile industry saw a mixed but improving performance in Q2FY26, supported by steady demand in Passenger Vehicles (PV), a strong recovery in exports across segments, and stable momentum in Two-Wheelers (2W).