ICICI Securities Limited Broker Research reports

Tatva Chintan Pharma Chem’s (TATVA) performance showed signs of improvement in Q4FY25 on the revenue front, but lower gross profit marred profit recovery. TATVA is hopeful of a sharp recovery in FY26, as new products commercialise in PASC and SDA volume recovers.

Bajaj Consumer (BaCo) reported a stable quarter with 4.2% YoY revenue growth (~2% volume growth), aided by marginal sequential recovery in core Almond Drops Hair Oil (ADHO), strong momentum in the non-ADHO portfolio (especially in Coconut oil) and sustained double-digit growth in international business.

Gravita India’s (GRAV) performance was in line with our estimates. EBITDA (including hedging gains) was up 22% YoY at INR 1.06bn. EBITDA margin (adj.) was up 20bps YoY (30bps QoQ) at 10.3%. Lead sales volume rose 12.3% YoY at 45.6kt.

Coforge continued to report a strong top-line performance in Q4FY25. Management acknowledged the challenging demand environment but reiterated its goal to reach USD 2bn by FY27 on the back of record-high deal wins in FY25, strong deal pipeline and its ability to proactively shape large deals.

Q4FY25 turned out to be a dream quarter for Nuvoco Vistas Corp (Nuvoco) with an all-time high EBITDA (up 12% YoY), being 24% ahead of our estimate (driven by beat across realisation and cost); and net debt retreated further to INR 36.4bn (down ~INR 4bn YoY).

Mahindra & Mahindra’s (M&M) EBITDA margin, at 14.9%, was up ~30bps QoQ (I-Sec est.: 14.3%). Beat in margin was led by FES segment with EBIT margin up 130bps QoQ to 19.4% (I-Sec est.: 17.3%). Auto segment’s EBIT margin was down 50bps QoQ at 9.2%, in-line with our estimate.

Railtel Corporation of India’s (Railtel) Q4FY25 net profit grew 46.3% YoY; Q4, in general, exhibits lumpiness. Railtel delivered profit growth of 27.6% in FY25, in line with the guidance of 25–30%.

Adjusted EBITDA profitability in Q4FY25 was above our estimates (act. INR 0.7bn vs. est. INR 0.1bn). This was achieved by containing quick commerce (QC) losses despite adding 294 dark stores and 1mn sq.ft. warehousing space in a quarter with seasonally lower AOV (-5.9% QoQ).

JSW Infrastructure (JSWIL) reported subdued volumes of 117mt (FY25) – comprising 103mt (-3% YoY) from existing assets and 14mt from new assets.

Fedbank Financial Services’ (Fedfina) Q4FY25 financial performance exhibited a return to business normalcy, as is evident in its RoA retracing to 2.2% vs. 0.6% QoQ, largely driven by credit cost normalising to 1% vs. 4% QoQ.