Sell

Tata Technologies’ (TATATECH) revenue declined 7.6% QoQ CC in its core services segment. Growth was impacted as OEMs delayed ramp-ups and paused R&D spends amid tariff-led challenges.

We have revised out FY26E/FY27E EPS estimates by -28.1%/-25.9% on account
of slower-than-anticipated recovery in media and healthcare, weak revenue
visibility, and a delayed margin normalization trajectory, with EBIT margins now
expected to remain below FY25 levels over near to medium term. Persistent macro headwinds and muted vertical traction warrant a cautious stance until greater clarity emerges on growth and profitability recovery.

Margins declined sharply due to missing operating leverage in Q1 The revenue de-growth was in line with our estimates, largely attributed to M&C and H&L, while Transportation business reported flat QoQ CC vs -9.7% QoQ CC in Q4. The transportation business growth is negatively impacted by Tier-1 suppliers, otherwise the deal ramp ups on the Auto OEMs have improved of late and compensating the weakness against Tier-1. The management sounded optimistic to drive growth within Transportation from Q2, while M&C would recover from Q3 led by large deal ramp up. The timely ramp ups of the...

TATA Elxsi (TELX) reported a disappointing print vs I-Sec’s already muted estimates. Q1FY26 marks the fourth straight quarter of muted revenue performance.

TTAN saw growth moderation in Q1 with 17% growth in the jewelry business vs recent trends of ~25% growth. Also, LTL growth for TTAN in the early double digits is weaker vs 18-19% for peers.

*over or under performance to benchmark index Dr. Reddy's Laboratories (Dr. Reddy's) is an Indian pharmaceuticals company that manufactures and markets more than 190 medications, 180+ active pharmaceutical...

JV with UPL to commercialize in FY27; gradual ramp-up expected Aarti Industries demonstrated a volume growth of 17% in FY25, however realizations across key products remained subdued, resulting in lower margins. For FY26, the management has guided double-digit volume growth and expects margins to remain stable. The Energy segment, which contributed 36% to the company's topline in FY25 and is largely comprised of MMA, saw sequential improvement in export volumes, although pricing pressure persists due to...

Narayana continues to deliver stable performance, driven by improved throughput rather than bed expansion. While the Indian business remained steady in FY25, the Cayman segment outperformed with 50% YoY sales growth and margin gains in Q4FY25. In our...

Black & White

Black & White

Facing Near-Term Headwinds Amid Uncertain Growth Prospects

In FY25, the company's order book declined by ~40% YoY to Rs 10,527cr due to a muted order wins for the last two years. The management expects a traction in new orders from the roads and non-road segments from Q2FY26 onwards and is...

Kumiai Chemical Industry (Kumiai) has revised up its H1FY25 revenue guidance by ~9% to JPY96bn from JPY88bn, citing that net sales are expected to exceed the forecast due to advanced shipment to overseas markets in its Agchem business.

Vodafone Idea’s (Vi) reported EBITDA declined 1% QoQ (vs.+2% QoQ for RJio/Bharti India wireless), which was above our estimates due to lower network opex (-2% QoQ, energy efficiencies) and SG&A costs (-1% QoQ).

Orders from the renewables segment rose a sharp 386% YoY, followed by the transmission segment (91% YoY) and railways and metro (24% YoY). However, orders from data center and industry fell 56% and 33% YoY, respectively, with the management mentioning that this was seasonal. Hitachi Energy has delivered strong financial results, with notable growth in both revenue and profitability. The momentum is expected to continue, driven by the *over or under performance to benchmark index company's strategic positioning in high-growth areas such as HVDC projects, data...

We maintain our SELL rating on the stock and roll over our estimates to FY27.

Alkem missed our estimates where Sales /EBITDA /PAT were 0.4%/17% and 15%. EBITDA margin was 160 bps lower than estimates

Revenue down 5.3% QoQ CC, lower than our estimate on furloughs, project ramp downs, insourcing, etc. Had 3 QoQ drops in FY25

Modest revenue growth YoY at 6% dragged by tepid volume growth; flat YoY as JKLC chases higher realisations that gained ~5%

185ktpa of acetone and 100ktpa of isopropyl alcohol, including greenfield infrastructure capex for an aggregate investment of ~Rs35bn. pricing pressure, oversupply from China as well as elevated input costs, which appear to have softened now. Sequentially, Advanced Intermediates segment benefitted from volume gains in key products and new offtake agreements,...