Sell

Krishna Institute of Medical Sciences (KIMS)’s Q2FY26 revenue was in line with our expectation. That said, EBITDA loss at Maharashtra of INR 96mn (-100bps) and Karnataka of INR 255mn (-265bps) coupled with lower margin at Kerala cluster dragged EBITDA margins to a low of 21.2%.

KPIT reported revenue and EBIT margin in line with our estimates in Q2FY26. Management expects growth to stabilise in Q3 (flat to 1% QoQ CC) and pickup from Q4.

Standalone EBITDA increased 7.8% YoY to Rs. 4,426cr as production costs fell, byproducts' realisations went up and the prices of input commodities softened. Reported PAT increased 14.5% YoY to Rs. 2,632cr owing to a growth in improved EBITDA and a fall in finance costs. HZL's revenue growth in the quarter was partially offset by a decline in production due to delay in commissioning of Roaster 6, which has impacted the availability of Calcine *over or under performance to benchmark index affecting company's production. Strong private consumption, capital expenditure and favourable government policies have helped create a positive demand environment that is...

Fine Organic Industries (FINEORG) reported a muted operating performance, with an EBITDA decline of 10% YoY. Gross margin contracted 120bp YoY to 41.6%, while employee/other expenses increased 100bp/40bp YoY to 6.3%/12.7%.

Divi’s Laboratories’ (Divi’s) Q2FY26 result was in line with our expectations on all fronts. Constant currency growth slowed down to ~10.8% vs. 15% QoQ and 18% in FY25.

Hindalco (HNDL)’s Q2FY26 EBITDA, at INR 89.7bn, was 5% better than our estimates driven by Novelis’ stronger performance, while HNDL’s domestic business aligned with our estimates.

Hitachi Energy’s 2QFY26 results beat our estimates on the back of a sharp recovery in EBITDA margins and higher other income. Order inflow was healthy for the quarter, and the bid pipeline also remains strong for the company.

NHPC reported a steady Q2FY26, wherein subdued performance in standalone plants was offset by much better performance in subsidiaries. Its consolidated plant availability declined to 78.6% in Q2 (vs 88.9% YoY) impacted by lower availability in standalone plants, especially Parbati II and III.

We maintain REDUCE on Britannia, with a Sep-26E TP of Rs5,750, on 48x P/E (in line with its last 5Y average forward P/E). Q2 net sales grew at ~4%, 1%/4% below our estimate/consensus expectation.

Firstsource (FSOL) reported a largely in-line operating performance in Q2. Revenue grew 2.3% QoQ to USD265mn (2.0% CC), a tad below our estimate.