ICICI Securities Limited Broker Research reports

Despite rising competitive intensity and lower volumes, Varun Beverages (VBL) delivered better-than-expected Q2CY25 profitability due to better control on overheads and favourable currency movement in the Africa market.

Transport Corporation of India’s (TRPC) Q1FY26 EBITDA of INR 1,210mn was broadly in line with consensus estimates. Overall revenue/EBITDA grew 9%/16% YoY. Blended EBITDA margin rose to 10.6% (9.9%/10.3% in
Q1FY25/Q4FY25), mainly due to improved margins in seaways (36.9% EBIT in Q1FY26).

NTPC – the largest thermal power player in India, is looking to add shades of green to its portfolio. It has substantial capacity addition plans on both thermal and renewables front.

Gravita India’s (GRAV) performance was in-line with consensus estimates. The company reported EBITDA at INR 1bn (+15%/+9% YoY/QoQ) driven by, total volumes rising 12.4% YoY to 53.4Kte (flat YoY), better margins at the lead segment (INR 21,790/te; up 13%/7% YoY/QoQ), as GRAV used higher imported material that fetched better pricing.

Larsen & Toubro (L&T) continues to beat order inflow (OI) expectations. It secured INR 766bn worth of orders in its core businesses (ex-services), up 40% YoY – aided by the energy (3.5x YoY; 41% of OI) and infrastructure (+2% YoY; 53% QoQ) segments.

Adani Green Energy (AGEL) started FY26 on a strong note, posting a strong quarter on both operational and financial fronts. It commissioned ~1.6GW in Q1FY26, taking operational capacity to 15.8GW (+45% YoY).

GE Vernova (GE) reported a strong Q1FY26 performance, with revenue up 38% YoY to INR 13.1bn and EBITDA more than doubling to INR 3.8bn. The standout was the sharp 1,000bps expansion in EBITDA margin driven by higher contribution from exports.

ABD reported strong volume-led performance with driven by 44% growth in P&A segment, increasing its volume/ value saliency to 46%/ 56% from 37%/ 46% last year.

Railtel Corporation of India (Railtel) Q1FY26 adjusted net profit grew 2.8% YoY; and as expected revenue growth driven by projects business tends to drive profits slower.

Five Star Business Finance (Five Star)’s management attributes the company’s asset quality deterioration, stage3 assets increasing to 2.5% vs. 1.8% QoQ and 30+ DPD rising to 11.3% vs. 9.65% QoQ, to higher stress in its core product (INR 0.3–0.5mn LAP) in the near term.

Chemplast Sanmar (CSL) has been enduring challenges over the past two years due to a weak cycle in PVC business; finally, early signs of consolidation have surfaced, and policy action should aid business recovery.

Piramal Pharma’s (Piramal) Q1FY26 result was below our expectations. Performance was impacted due to lack of revenue from a large innovative CDMO (-5.7% YoY) molecule and delay in shipment timing in CHG business (grew 1%).

GAIL India (GAIL) reported 29%/34% YoY dip in Q1FY26 adj. EBITDA/PAT (flat/-13% QoQ) driven by weaker performance of gas trading and petchem. Gas trading performance declined by 47%/11% QoQ/YoY with sharply lower margins offsetting a 6mmscmd YoY jump in volume.

SAIL’s Q1FY26 reported EBITDA, at INR 27.6bn, was c.16% short of consensus estimates. This stemmed from higher other expenses on account of an INR 9.5bn one-time negative impact on inventory valuation.

Zen Technologies’ Q1FY26 numbers undershot consensus estimates. Revenue/EBITDA declined 37.9%/41.9% due to a spillover of INR 600–700mn revenue to the next quarter owing to a change in product specifications.

TTK Prestige reported a soft Q1FY26 with a focus volume-led growth. The company is focussing on new strategy to restructure multiple business functions.

Torrent Pharma’s (Torrent) Q1FY26 results were slightly below our expectations. Addition of MRs and price hikes continue to fuel growth in India (+10.8% YoY).

Premier Energies (Premier) has kicked off FY26 on a strong footing. Volume growth of 10% to ~800MW (as per our estimates).

In May’23, MLIFE had unveiled a strategy of reaching INR 80–100bn of annual residential plus industrial cluster sales by CY28, or 5x in five years (CY23–28E).

Fedbank Financial Services (Fedfina) is best placed in the current cycle by staying ahead of the curve in recognising stress in S-LAP (three quarters ago).