Menu

Author Archives: Equity Right

  • Home>
  • Archives for Equity Right
TCS Q2 FY26: Broad-based Gains, Margin Edge and Bold AI Bets Amid Soft Growth
Equities, Markets, Result Updates - December 2, 2025

TCS Q2 FY26: Broad-based Gains, Margin Edge and Bold AI Bets Amid Soft Growth

TCS Q2 FY26: Broad-based Gains, Margin Edge and Bold AI Bets Amid Soft Growth

TCS posted a steady but not standout quarter: revenue inched up, profit improved slightly and margins strengthened, even as the company began pressing ahead with a long-term AI-focused investment plan. Revenue from operations came in at ₹65,799 crore, while consolidated net profit stood at ₹12,075 crore (+1.4% YoY). Operating margin improved to 25.2%, showing disciplined cost management despite only moderate volume growth. The company also announced an interim dividend of ₹11 per share and unveiled plans for a 1-GW AI data centre, signalling its ambition to lead enterprise AI services over the coming years.

*Key Highlights*
* Revenue from operations: ₹65,799 crore, up +2.4% YoY (vs ₹64,259 crore in Q2 FY25)
* QoQ revenue growth: +3.7%; constant-currency growth: +0.8%
* Operating margin: 25.2%, up +70 bps QoQ
* Net profit (PAT): ₹12,075 crore, up +1.4% YoY
* Net margin: ~19.6%
* Cash flow from operations: ~110% of net income
* Dividend declared: ₹11 per share (interim)
* Total Contract Value (TCV): US$10 billion added in the quarter.

*Revenue & Profit Analysis*
TCS delivered modest but steady revenue growth: +2.4% YoY and +3.7% QoQ indicate the company is holding its ground in a rough global IT environment. Constant-currency growth of 0.8% also points to a gradual return of momentum after earlier currency-related pressures.
The standout metric this quarter is margin performance. Operating margin at 25.2% (up 70 bps QoQ) and a net margin close to 19.6% show tight cost control and better utilisation. Profit growth remains mild but positive.
Cash generation stayed strong too, with operating cash flow higher than net income, reinforcing the company’s balance-sheet strength.

*Segment & Business Mix Performance*
Growth in Q2 came from multiple verticals and geographies:
1. Vertical trends (CC QoQ):
* BFSI: +1.1%
* Life Sciences & Healthcare: +3.4%
* Manufacturing: +1.6%
* Technology & Services Solutions (TSS): +1.8%
2. Geography mix:
North America remains the largest market (nearly 48.8% of revenue) though growth continues to be soft. Europe, Asia-Pacific and MEA added to the overall momentum. The diversified performance helps cushion volatility in any one segment. The US$10 billion TCV also points to a healthy deal pipeline for the coming quarters.

*Cost, Restructuring & Risks to Monitor*
This quarter included a one-time restructuring charge of ₹1,135 crore related to organisational changes and employee optimisation. Adjusted for this charge, underlying profitability would have been stronger. However, global macro uncertainty, muted spending in certain verticals and pressure on large discretionary IT deals continue to act as potential headwinds for faster revenue growth.

*Strategic Moves & Management Commentary*
TCS is clearly positioning itself for long-term, AI-led transformation. It announced plans to build a 1-GW AI data centre in India, signalling intent to scale AI-driven enterprise solutions. The acquisition of Salesforce specialist ListEngage strengthens its cloud, CRM and digital transformation capabilities.
Management highlighted continued investments in people, technology infrastructure and partnerships as demand for cloud, data and AI solutions continues to rise.

*Conclusion*
Q2 FY26 reflects a stable, well-run TCS: growth is moderate, margins have edged up and cash flows remain strong. Net profit rose +1.4%, supported by disciplined cost controls. The long-term bet on AI infrastructure and digital capabilities could become a major growth engine, though near-term acceleration may still depend on a revival in global tech spending and quicker deal conversions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes

, , , , , , 0 Comment
Read More
Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes
Equities, Markets, Result Updates - December 2, 2025

Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes

Adani Power Q2 FY26: Revenue Edges Up, EBITDA Steady and Profit Down ~11% on Higher Costs & Taxes

Adani Power delivered a modestly better quarter in terms of topline and stable operations, but bottom-line profit declined owing to higher expenses and tax burden. Electric-power sales volume increased, revenue rose slightly, and EBITDA remained steady, showing core business resilience. However, net profit at ₹ 2,906-2,953 crore declined by about 11% YoY, underlining pressure from cost inflation and depreciation on recent capacity additions.

*Key Highlights*
* Total Revenue: ₹ 14,308 crore in Q2 FY26, up +1.7% YoY (vs ₹ 14,063 crore in Q2 FY25)
* Electric-power sales volume (consumption by customers): 23.7 BU (billion units), up +7.4% YoY (vs 22 BU in Q2 FY25)
* EBITDA: ₹ 6,001 crore in Q2 FY26 (vs ₹ 6,000 crore in Q2 FY25)
* Net Profit (PAT): ₹ 2,906 – 2,953 crore for Q2 FY26, down ~11% YoY (from ~₹ 3,332–3,331.8 crore in Q2 FY25)
* Earnings Per Share (EPS): ₹ 1.53 in Q2 FY26 (from ₹ 1.66 in Q2 FY25)
* New Power Purchase Agreements (PPA) added: 4.5 GW of long-term PPAs under SHAKTI scheme (2,400 MW, Bihar; 1,600 MW, Madhya Pradesh; 570 MW, Karnataka) by Oct 2025
* Total capacity (post-acquisition of Vidarbha Industries Power Ltd under Corporate Insolvency Resolution): 18,150 MW as on Q2 FY26

*Revenue & Profit Analysis*
Revenue grew only marginally (+1.7% YoY), reflecting slightly improved power sales volume. The increase in volume (electricity sold) helped counter the impact of softened merchant tariffs and softer demand under seasonal and weather pressures. EBITDA remained stable at ~₹ 6,001 crore, indicating that operational costs and efficiencies held up despite volatility in fuel and input costs.
However, the bottom line took a hit: net profit fell by ~11%, primarily because of higher depreciation (on new plants and capacity additions) and increased tax expense. This suggests that while operations are stable, the returns on newer capacity are yet to fully overcome cost and depreciation drag.

*Business & Operational Performance*
* Power Sales & Volume: The company reported 23.7 BU of power sales in Q2, a healthy +7.4% YoY growth despite monsoon-related demand softness and a high base quarter. This underscores steady demand from DISCOMs and industrial customers under long-term PPAs.
* PPA Book & Capacity Expansion: Securing 4.5 GW of fresh long-term PPAs under the SHAKTI scheme is a key positive. It improves visibility on future demand and revenue flows. Post the resolution-process acquisition, total generation capacity stands at ~18,150 MW, giving Adani Power a sizeable base for long-term generation and supply.
* Cost & Tariff Environment: Despite lower merchant-tariff realisation and import-coal cost volatility, the company maintained stable EBITDA, implying moderate fuel and input cost control.
* Balance-sheet moves & Consolidation: The quarter saw consolidation: several wholly-owned subsidiaries (e.g. power generation/ fuel management entities) were merged under Adani Power (appointed date April 1, 2025), which may improve administrative efficiency and reduce inter-company overhead.

*Risk Factors to Monitor*
* Tariff and Demand Volatility: Merchant-tariff volatility and demand fluctuations (especially due to monsoon, fuel cost or DISCOM payment delays) can affect realisation.
* High Depreciation & Interest Costs: Recent capacity additions increase depreciation and interest burden, so sustained utilisation and long-term PPAs are key for return on capital.
* Fuel & Coal Price Risk: As a thermal-power generator dependent on coal/imported fuel, global coal price swings or supply disruptions could impact margins.
* Capex & Debt Risk: Further expansions to reach 42 GW target by 2031–32 means more capex and possible debt.

*Management Commentary & Strategic Outlook*
According to the company, the quarter demonstrates Adani Power’s “robust and stable performance” even amid weather-driven demand fluctuations and lower merchant tariffs. The management highlights the securing of fresh long-term PPAs (4.5 GW) under the SHAKTI scheme as a strong signal of future demand stability.
The company is also working on its long-term growth goal: expanding capacity toward ~42 GW by FY 2031–32, backed by acquisition of stressed assets and future project pipelines. The consolidation of subsidiaries under the parent company is meant to simplify operations and reduce overhead.

*Conclusion*
Adani Power’s Q2 FY26 is a steady yet muted quarter. On one hand, power sales volume increased, revenue rose modestly and core operations held up, reflecting resilience in demand and execution. On the other hand, profitability dipped by ~11% because of higher depreciation, taxes and cost pressures, highlighting that scaling up capacity brings fixed-cost burden. In short, Adani Power remains a high-potential but cyclical power play, suitable if you’re comfortable with sectoral & commodity fluctuations, but needs careful monitoring of demand, costs and regulatory/ fuel risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Fortis Healthcare Q2 FY26: Strong Hospital & Diagnostics Growth Push Revenue and Profit Up Sharply

, , , , , , 0 Comment
Read More
Fortis Healthcare Q2 FY26: Strong Hospital & Diagnostics Growth Push Revenue and Profit Up Sharply
Business, Health, Result Updates - December 2, 2025

Fortis Healthcare Q2 FY26: Strong Hospital & Diagnostics Growth Push Revenue and Profit Up Sharply

Fortis Healthcare Q2 FY26: Strong Hospital & Diagnostics Growth Push Revenue and Profit Up Sharply

Fortis Healthcare delivered a robust quarter, with healthy growth across both its hospital and diagnostics businesses. Consolidated revenue rose ~17% YoY, while PAT surged around 70–82% compared to last year’s same quarter. The improvement reflects better occupancy, higher volumes in specialty care and diagnostics and improved margins. The company also continues to expand its bed capacity and diagnostic-service footprint, setting up a favorable base for future growth.

*Key Highlights*
* Consolidated revenue: ₹ 2,331 crore in Q2 FY26 (up +17.3% YoY)
* Operating EBITDA: ₹ 556–556 crore (up ~28% YoY)
* Operating EBITDA margin: 23.9% in Q2 FY26, vs 21.9% in Q2 FY25
* Profit After Tax (PAT): ₹ 322–329 crore in Q2 FY26 (up ~70–82% YoY)
* Hospital-business revenue: ₹ 1,974 crore (up +19.3% YoY)
* Diagnostics business net revenue: ₹ 357 crore (up +7.1% YoY)
* Key specialty care growth: Oncology and Renal Sciences grew ~29% and ~22% YoY respectively
* Increased bed occupancy: occupied beds rose ~13% QoQ; hospital occupancy improved to 71% (from 69% in Q1 FY26).

*Revenue & Profit Analysis*
Fortis’s 17% growth in consolidated revenue shows healthy demand for its services. The rise came from more patients, higher bed utilisation and increased uptake of specialized treatments. With EBITDA up ~28% and margin expanding to nearly 24%, the company seems to have managed cost structure efficiently, even while volumes rose. The large jump in PAT (70–82%) implies that operational gains translated well into bottom-line growth.
This suggests that Fortis didn’t just see more patients, it also delivered services more profitably due to improved occupancy, higher share of specialty cases and perhaps better cost control in both hospital operations and diagnostics.

*Business Segments: Hospital & Diagnostics*
1. Hospital Business:
* Revenue rose ~19.3% YoY to ₹ 1,974 crore
* Bed occupancy improved; occupied beds rose by ~13% QoQ
* Complex treatments are up: Oncology grew ~29% YoY; Renal Sciences up ~22%
* International patient revenue also grew ~26% YoY, contributing a larger share of overall hospital revenue.
2. Diagnostics Business:
* Net revenue rose to ₹ 357 crore (from ₹ 334 crore a year ago), +7.1% YoY
* The diagnostics arm continues network expansion, more “customer touch points” (CTPs), giving it wider reach.
Together, both segments contributed to balanced growth, hospital business driving major revenue, and diagnostics adding stability and recurring cash flow.

*Balance Sheet & Debt Position*
As of 30 September 2025, Fortis has a net debt of ₹ 2,219 crore. Net-debt to EBITDA ratio stands at ~0.96x (versus just 0.16x on 30 Sept 2024), reflecting that debt has increased due to recent acquisitions and expansions (such as taking stake in a diagnostics-business PE stake and acquiring a hospital).
Although leverage went up, the ratio remains under control, and with improving EBITDA and cash flow, Fortis appears to manage its balance sheet prudently while funding growth.

*Strategic Moves & Growth Outlook*
Fortis entered a 15-year lease agreement to operate a ~200-bed multi-specialty hospital in Greater Noida, expanding its footprint in the Delhi-NCR region. It continued to integrate newly acquired hospitals and expanded bed capacity in existing facilities, supporting future volume and revenue growth. Moreover, it expanded its diagnostics network, including new customer-touchpoints, which supports stability and allows it to capture more outpatient test demand. Given the strong uptick in specialty care demand (e.g. oncology, renal, surgeries) and growing diagnostics demand, the company seems well-positioned to ride long-term growth in India’s healthcare consumption.

*Conclusion*
Fortis Healthcare’s Q2 FY26 results look solid and encouraging. With strong growth in both hospital and diagnostics businesses, improved margins and a sharp rise in PAT, the company demonstrates that it can scale operations while remaining profitable. Key positives are: rising patient volumes, growth in specialty and international-patient segments, expanding bed capacity and diagnostics footprint, and a manageable debt level considering expansion. Whereas, some factors to watch include continued performance of newly added hospitals, maintaining occupancy and specialty-case mix, efficient integration of acquisitions and controlling leverage while growing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

GAIL Q2 FY26: Gas & Pipeline Volumes Steady, Revenue Rises, Profit Rebounds Sequentially Despite Segment Pressures

, , , , , , 0 Comment
Read More
GAIL Q2 FY26: Gas & Pipeline Volumes Steady, Revenue Rises, Profit Rebounds Sequentially Despite Segment Pressures
Business, Markets, Result Updates - November 28, 2025

GAIL Q2 FY26: Gas & Pipeline Volumes Steady, Revenue Rises, Profit Rebounds Sequentially Despite Segment Pressures

GAIL Q2 FY26: Gas & Pipeline Volumes Steady, Revenue Rises, Profit Rebounds Sequentially Despite Segment Pressures

GAIL posted a steady quarter with a mild rise in revenue, firm gas transmission and marketing volumes, and a strong sequential improvement in profitability. Revenue from operations stood at ₹35,031 crore and PAT came in at ₹2,217 crore. While profit fell on a YoY basis, this quarter showed early signs of stability driven by healthy pipeline utilisation and better traction in polymer and hydrocarbon sales. The key drag continues to be margin pressure in the petrochemical business.

*Key Highlights*
* Revenue from operations: ₹35,031 crore in Q2 FY26 (up ~+6.4% YoY)
* PAT: ₹2,217 crore (vs ₹1,886 crore in Q1 FY26: +18% QoQ)
* PBT: ₹2,823 crore in Q2 FY26 (vs ₹2,533 crore in Q1 FY26: +11% QoQ)
* Gas transmission volume: 123.59 MMSCMD (vs 120.62 in Q1 FY26: slight uptick)
* Gas marketing volume: 105.49 MMSCMD (almost flat QoQ)
* Polymer & LHC sales: Polymer 209 TMT and LHC 223 TMT (up from 177 TMT and 198 TMT in Q1 FY26)
* CapEx: ₹1,662 crore in Q2 FY26, mainly towards pipelines and petrochemicals

*Revenue & Profit Analysis*
GAIL reported revenue of ₹35,031 crore, up around 6–6.5% YoY, supported by stable demand in gas transmission, gas marketing and hydrocarbon products.
Sequentially, performance improved visibly: PBT rose 11% and PAT increased 18% over Q1 FY26.
On a YoY basis, however, profit declined due to weak margins in petrochemicals and softer realisations in the LPG/ hydrocarbon segment.
Overall, the company is seeing some recovery through cost controls and volume resilience, even though certain businesses remain under pressure.

*Segment & Business Mix Performance*
1. Gas Transmission & Marketing:
* Transmission volume: 123.59 MMSCMD
* Marketing volume: 105.49 MMSCMD
These stable numbers reflect consistent demand from CGD networks, industries and other pipeline consumers.
2. Polymers & Hydrocarbons:
* Polymer sales: 209 TMT (up from 177 TMT)
* Liquid hydrocarbons: 223 TMT (up from 198 TMT)
Higher volumes here indicate a bounce-back from last quarter’s softness and provide some relief beyond the core gas business.
3. CapEx & Expansion:
GAIL spent ₹1,662 crore this quarter, largely on pipeline expansion and petrochemical projects. The company has also received approval to expand the JLPL LPG pipeline, which once commissioned could add about ₹700 crore in annual revenue.

*Risks & Segmental Headwinds*
* The petrochemical business remains under significant margin stress and reportedly posted losses this quarter.
* LPG and hydrocarbon margins are being hit by volatile global commodity prices.
* Despite steady volumes, the YoY PAT decline shows that cost pressures and weaker realisations continue to weigh on profitability.

*Management Commentary*
* GAIL has been authorised to double JLPL’s LPG pipeline capacity from 3.25 MMTPA to 6.5 MMTPA. With tariff escalation of 3.4% annually, this can potentially add ~₹700 crore to revenue and ~₹600 crore to EBITDA each year.
* The company is prioritising its pipeline network expansion, including the newly approved Vijaipur–Bina pipeline (3 MMSCMD, 105 km) with an estimated capex of ~₹450 crore over three years.
* Management remains focused on leveraging GAIL’s integrated gas and hydrocarbon infrastructure to drive medium-term growth, even as petrochemicals continue to face headwinds.

*Conclusion*
GAIL’s Q2 performance shows stability in its core operations: gas transmission and marketing volumes remain healthy, hydrocarbon/polymer sales have improved, and profitability has recovered QoQ. The company’s ongoing investments in pipelines and infrastructure should support future growth. However, near-term profitability will likely stay volatile due to weak petrochemical margins and ongoing commodity pressure. The YoY decline in PAT highlights that volume growth alone will not drive earnings unless margins improve.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Vedanta Ltd Q2 FY26: Record Revenue & EBITDA, but Exceptional Loss Weighs on Net Profit

, , , , , , 0 Comment
Read More
Vedanta Ltd Q2 FY26: Record Revenue & EBITDA, but Exceptional Loss Weighs on Net Profit
Equities, Markets, Result Updates - November 28, 2025

Vedanta Ltd Q2 FY26: Record Revenue & EBITDA, but Exceptional Loss Weighs on Net Profit

Vedanta Ltd Q2 FY26: Record Revenue & EBITDA, but Exceptional Loss Weighs on Net Profit

Vedanta reported a strong operational quarter, delivering its highest-ever Q2 revenue and EBITDA, supported by healthy volumes across aluminium, zinc, and other metal businesses. However, a sizeable exceptional loss linked to the power segment pulled down consolidated net profit sharply. The core business remains solid, but one-off items overshadowed the earnings picture this quarter.

*Key Highlights*
* Consolidated Revenue: ₹39,218 crore (+6% YoY)
* EBITDA: ₹11,612 crore (+12% YoY), the best-ever for Q2
* EBITDA Margin: ~34%, up ~69 bps YoY
* Profit Before Exceptional Items: ₹5,026 crore (+13% YoY)
* Reported PAT: ₹3,479 crore, down ~38–59% YoY due to exceptional losses of ₹2,067 crore
* Net Debt/ EBITDA: Improved to ~1.37x (from 1.49x)

*Revenue & Profit Analysis*
Revenue increased about +6% to roughly ₹39,200 to ₹39,800 crore, marking the strongest Q2 topline in Vedanta’s history. EBITDA grew 12% YoY to ₹11,612 crore, reflecting solid operating leverage and cost discipline despite price volatility in global commodities.
The key drag came from the power business. A one-time exceptional loss of ₹2,067 crore pushed consolidated PAT down to ₹3,479 crore, masking the strength of the underlying operations. In short, the core engine is performing well, but the quarter’s reported earnings were distorted by non-recurring issues.

*Segment/ Operational Performance Highlights*
* Aluminium & Alumina: Cast metal output at 617,000 tonnes and alumina at 653,000 tonnes, both record highs. Segment EBITDA rose to ₹5,532 crore, up ~33% YoY.
* Zinc (India & International): Zinc-India achieved its highest-ever Q2 mined metal production at 258,000 tonnes (+1% YoY). Cost of production remained low at US$ 994/tonne, driving EBITDA up ~8% YoY to ₹4,434 crore.
* Power & Others: Operational volatility in the power business contributed to the exceptional loss, impacting overall profitability.

*Balance Sheet, Debt & Capital Metrics*
Net debt stood at ₹62,063 crore as of 30 Sept 2025, with leverage improving to ~1.37x. The company’s AA credit rating was reaffirmed, underscoring financial stability. Capex for H1 FY26 totalled USD 0.9 bn, signalling ongoing investment in growth and capacity expansion. Even after the exceptional loss, the improvement in leverage shows that underlying cash generation remains strong.

*Management Commentary*
Management highlighted that despite commodity price swings and operational challenges, Vedanta delivered record production across major segments. The exceptional loss from the power subsidiary was acknowledged, but the company believes its diversified portfolio and disciplined balance-sheet approach will help absorb such shocks.

*Conclusion*
Q2 FY26 was a quarter where the core business shone but headline numbers suffered. Strong production, better margins and robust EBITDA growth demonstrate the health of the metals-mining operations, while the one-off power-related loss temporarily depressed net profit. Key things to monitor include movement in aluminium and zinc prices, stability of power and non-metal subsidiaries, and debt levels and capex pace, given ongoing investments. Overall, Vedanta continues to be a strong, diversified business with healthy cash flows. The PAT decline this quarter appears to be a temporary, non-structural issue.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest

, , , , , , 0 Comment
Read More
Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest
Health, Markets, Result Updates - November 27, 2025

Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest

Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest

Cipla posted its highest-ever quarterly revenue at ₹7,589 crore in Q2 FY26, a +7.6% YoY increase. Growth was broad-based across India, Africa and Emerging Markets. However, EBITDA remained almost flat and margins softened. Profit also grew only +3.7% YoY to ₹1,351 crore. The US business remained steady but not strong, while API revenue declined. Overall, Cipla is growing steadily in scale, but profitability is expanding at a slower pace.

*Key Highlights*
* Revenue from operations: ₹7,589 crore (+7.6% YoY)
* EBITDA: ₹1,895 crore (+0.5% YoY)
* EBITDA margin: 25.0% (down from 26.7% last year)
* PAT: ₹1,351 crore (+3.7% YoY)
* India business: ₹3,146 crore (+7% YoY)
* North America: US$233 million (~₹2,039 crore), growth ~+3% YoY in INR terms
* Africa (One Africa): ₹1,178 crore (+10% YoY)
* Emerging Markets + Europe: ₹967 crore (+20% YoY)
* API business: ₹148 crore (down by 7% YoY)
* Total equity: ₹33,025 crore
* Total debt: ₹467 crore (very low leverage)

*Revenue & Profit Analysis*
Cipla’s +7.6% YoY revenue growth highlights strong demand and a resilient portfolio. Domestic business grew +7% YoY, while Emerging Markets posted a robust +20% YoY expansion, helping offset the slower North America performance.
However, EBITDA grew only +0.5% YoY, and the margin fell to 25%, indicating cost pressures and unfavourable product mix. PAT growth of +3.7% YoY is modest compared with the scale of revenue, showing that profitability is not keeping pace with top-line expansion.
This positions Cipla as a company that is growing in size but needs sharper margin improvement to drive stronger earnings.

*Segment & Operational Performance*
1. India (One India Business)
* Revenue: ₹3,146 crore (+7% YoY)
* Chronic care contribution rose to 61.8%
* Cipla continues to strengthen its position in respiratory and chronic therapies.
2. North America
* Revenue: US$233 million (~₹2,039 crore), +3% YoY in INR
* Growth driven by the launch of biosimilar Filgrastim and approval for generic Glucagon.
* Overall growth remains muted due to competitive pricing pressure.
3. One Africa
* Revenue: ₹1,178 crore (+10% YoY)
* South Africa private market outperformed the broader market.
* The region continues to be a consistent contributor.
4. Emerging Markets & Europe
* Revenue: ₹967 crore (+20% YoY)
* This was one of the strongest segments, driven by both direct markets and strong institutional business.
5. API Business
* Revenue: ₹148 crore ( down by 7% YoY)
* This remains a weak spot and indicates softness in upstream operations.

*Risk & Outlook Considerations*
Uncertainties:
* Margin pressure: EBITDA margin dropped from 26.7% to 25%
* US business competitive pressure remains a concern despite new approvals
* API decline pulls down overall performance
* Leadership transition (new CEO in April 2026) may bring temporary uncertainty
Positives:
* Strong respiratory pipeline
* Four major respiratory launches planned by 2026
* Emerging markets momentum remains strong
* Healthy balance sheet with extremely low debt

*Conclusion*
Cipla’s Q2 FY26 performance shows solid revenue growth but mild profit expansion. Strength in India, Africa and Emerging Markets is encouraging, but margin squeeze and a slow-moving US business limit earnings momentum. The next leg of growth will depend on improving the US pipeline, restoring API performance, expanding margins through cost optimisation and successfully executing key respiratory launches. Cipla remains a stable, diversified, steady-growth pharma company, but for it to deliver stronger shareholder returns, margin and profit acceleration must improve in the coming quarters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

DLF Limited Q2 FY26: Bookings Soar, But Profit Faces Short-Term Drag

, , , , , , 0 Comment
Read More
DLF Limited Q2 FY26: Bookings Soar, But Profit Faces Short-Term Drag
Markets, Real Estate, Result Updates - November 27, 2025

DLF Limited Q2 FY26: Bookings Soar, But Profit Faces Short-Term Drag

DLF Limited Q2 FY26: Bookings Soar, But Profit Faces Short-Term Drag

DLF delivered a quarter marked by a surge in residential bookings, strong cash flows and a robust balance sheet, but the bottom line slipped YoY due to lower operational revenue and higher tax costs. New sales bookings came in at ₹4,332 crore, while PAT for the quarter stood at ₹1,180 crore (declined by ~15% YoY). The annuity business also grew steadily, underpinning the long-term rental model. While growth prospects remain strong, near-term profit margins and recognition timings require more scrutiny.

*Key Highlights*
* New sales bookings: ₹4,332 crore for Q2 FY26 (+ 526% YoY)
* Cumulative sales bookings in H1 FY26: ₹15,757 crore
* Consolidated net profit (PAT): ₹1,180.09 crore (down by 14.6% YoY)
* Total income: ₹2,261.80 crore (+ 3.7% YoY)
* Operational rental (annuity) portfolio: ~49 million sq ft, occupancy by area ~94%
* Net cash position: ₹7,717 crore end-Sept quarter
* Credit rating upgrade: CRISIL rating upgraded to AA+

*Revenue & Profit Analysis*
While the overall top line (total income) posted a modest +3.7% YoY gain to ₹2,261.8 crore, the company faced a decline in its core operational revenue (home-sales recognition) which dropped by ~17% to ~₹1,643 crore.
Profit after tax fell ~14.6% YoY to ₹1,180.09 crore, primarily due to a higher tax expense this quarter compared to a large tax reversal in the prior year.
Despite the dip in PAT, the company’s robust sales bookings and strong asset-quality balance sheet support future earnings growth.

*Segment/ Operational Performance*
1. Residential/ Development business: The leap in new sales bookings to ₹4,332 crore (+526% YoY) was driven by the launch of “The Westpark” in Mumbai and strong traction in premium luxury housing.
2. Annuity business (office/ retail rental): The operational portfolio stands at ~49 million sq ft, with high occupancy (~94% by area) indicating stable lease income. Two new commercial assets added in Q2 (2.1 msf at Atrium Place, Gurugram and 0.2 msf at DLF Midtown Plaza, Delhi).
3. Cash flow & balance sheet: Collections in the quarter were ₹2,672 crore, and net operating cash surplus was ₹1,137 crore. Gross cash balance stood at ₹9,204 crore (including ₹8,358 crore in RERA accounts).

*Risk & Outlook Considerations*
* Recognition lag risk: While bookings are strong, revenue recognition is lagging, and thus lower operational revenue this quarter suggests pipeline timing will influence near-term profits.
* Profit margins & taxation: The profit dip ties to higher tax expense and lower recognition, unless operational revenue normalises higher, PAT upside may remain muted.
* Macro & demand risk: Real-estate demand could be impacted by interest-rate rises or regulatory changes. Premium luxury demand is currently strong though.
* Balance-sheet strength: Net cash position of ~₹7,717 crore post dividend and debt repayment gives the company a strong cushion to absorb near-term ups and downs.

*Conclusion*
DLF’s Q2 FY26 results reveal a mixed but promising story. On the positive side, the dramatic jump in bookings, strong pipeline and high-quality annuity portfolio validate the company’s strategic positioning in premium residential and mixed-use development. On the weaker side, PAT decline and slower operational revenue recognition mean that earnings secular momentum isn’t yet fully visible. However, the key levers to watch include whether bookings convert into recognised revenue in coming quarters, whether margin from annuity and premium launches improves, and whether the cash-flow from launched projects drives earnings visibility.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Titan Company Q2 FY26: Festive Surge Drives Jewellery Sales and Boosts Profit Big Time

, , , , , , 0 Comment
Read More
Titan Company Q2 FY26: Festive Surge Drives Jewellery Sales and Boosts Profit Big Time
Business, Markets, Result Updates - November 27, 2025

Titan Company Q2 FY26: Festive Surge Drives Jewellery Sales and Boosts Profit Big Time

Titan Company Q2 FY26: Festive Surge Drives Jewellery Sales and Boosts Profit Big Time

Titan delivered a very strong quarter, powered by booming consumer demand during the festive season and robust performance across jewellery and lifestyle businesses. Consolidated revenue rose sharply while net profit jumped nearly 60% YoY. The jewellery business remained the standout performer, but watches, eyewear and emerging businesses also contributed well. Margins expanded, indicating healthy operational leverage.

*Key Highlights*
* Consolidated Total Income: ₹18,725 crore in Q2 FY26, +28.8% YoY
* Consolidated Net Profit (PAT): ₹1,120 crore, +59.1% YoY (vs ₹704 crore in Q2 FY25)
* EBITDA: ₹1,987 crore, +46.3% YoY
* EBITDA margin: 12.1%, improved by ~209 basis points (bps) YoY
* PAT margin: 6.8% (improved ~163 bps YoY)
* Jewellery (excluding bullion and DigiGold): Revenue ₹14,092 crore, +21% YoY
* Watches & Wearables: Revenue +13% YoY, segment EBIT margin ~16.1%
* Eyewear/ Eye care/ Emerging Businesses: All reported growth, adding diversification beyond jewellery.

*Revenue & Profit Analysis*
Titan’s revenue growth of +28.8% YoY to ₹18,725 crore reflects strong festive-season demand and recovery across its product lines. This robust top-line jump translated into a substantial bottom-line gain: PAT rose +59.1% YoY to ₹1,120 crore. The gain in profit outpaced the revenue rise primarily because the company managed to expand margins, EBITDA margin rose to 12.1%, up ~209 bps, indicating efficiency improvements or operating leverage kicking in. Profitability gains suggest Titan managed cost pressures (despite possibly higher raw material/ gold costs) and benefited from higher sales volume and premiumisation.

*Segment Performance*
* Jewellery Business: Jewellery division (excluding bullion & DigiGold) delivered ₹14,092 crore, +21% YoY. This strong growth underscores sustained consumer appetite for branded jewellery, likely driven by festive demand, brand strength (e.g. Tanishq, Mia, Zoya, CaratLane) and premiumisation.
* Watches & Wearables: Revenue grew +13% YoY to ₹1,477 crore, segment EBIT margin was ~16.1%, showing healthy profitability in a non-precious-metals business line.
* Eyewear/ Eyecare & Emerging Businesses: These contributed modestly but showed growth, helping diversify Titan’s portfolio beyond jewellery and watches.
Overall, the business mix appears balanced, with jewellery leading growth and other verticals adding stability — which helps in cushioning volatility (e.g. in gold prices).

*Margin & Operating Efficiency*
EBITDA margin at 12.1% and PAT margin 6.8% indicates Titan successfully leveraged operating leverage during the quarter. The rise in profitability despite gold-price volatility suggests cost controls, better working-capital management and favourable product mix (studded jewellery, premium watches, etc.). The ability to hold margins while growing volume reinforces confidence in the company’s operational execution.

*Risk & Macro Considerations*
* Gold-price volatility: Since jewellery is the major revenue source, sharp changes in gold prices can impact demand and margin.
* Inventory & working-capital pressures: To meet festive demand, inventory build-up likely increased.
* Sustainability of demand: Post-festive season demand could normalize, so sustaining the growth trajectory will depend on consumer sentiment and festive cycles.
* Cost inflation: If input costs (like labour, rent, raw materials) rise, maintaining margin expansion will be challenging.
However, Titan’s diversified business mix (watches, eyewear, emerging verticals) offers some cushion and helps manage these risks.

*Management Commentary & Strategic Moves*
The strong quarter was driven by demand uptick due to festive season, new collections and robust traction in both core and emerging businesses. The company remains committed to expanding its retail footprint, broadening product mix (beyond jewellery) and strengthening brand-led premiumisation.
The management also indicated focus on working-capital discipline even while scaling up operations, a positive sign, given the inherent volatility in jewellery retail.

*Conclusion*
Titan Company’s Q2 FY26 results signal a powerful bounce-back, driven by a combination of favourable demand, solid execution and operational leverage. The +59% PAT growth, outpacing revenue growth, highlights margin improvements alongside top-line strength. Jewellery remains the anchor, but growth across watches, eyewear and other lifestyle segments improves revenue diversification and reduces dependence on any single segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

ITC Hotels Q2 FY26: Solid Gains in Hospitality, but Growth Base Still Moderate

, , , , , , 0 Comment
Read More
ITC Hotels Q2 FY26: Solid Gains in Hospitality, but Growth Base Still Moderate
Business, Markets, Result Updates - November 25, 2025

ITC Hotels Q2 FY26: Solid Gains in Hospitality, but Growth Base Still Moderate

ITC Hotels Q2 FY26: Solid Gains in Hospitality, but Growth Base Still Moderate

ITC Hotels’ Q2 FY26 numbers show healthy revenue growth, sharp rise in profit after tax and stronger hotel-level earnings. The results are backed by operational improvement across properties and tighter cost control, but the company still operates off a modest base after the demerger last year.

*Headline numbers*
* Revenue from operations (consolidated): ₹839.48 crore in Q2 FY26 versus ₹777.95 crore in Q2 FY25: +7.9% YoY
* Total income: ₹884.89 crore in Q2 FY26
* Profit before tax: ₹188.69 crore in Q2 FY26 versus ₹113.60 crore a year ago
* Profit after tax (consolidated): ₹132.77 crore in Q2 FY26 versus ₹76.17 crore in Q2 FY25: +~74% YoY.
* Earnings per share (basic, consolidated, not annualised): ₹0.64 in Q2 FY26 versus ₹0.37 in Q2 FY25.

*Hospitality continues its steady climb*
* Hotels segment remains the core engine: Hotels revenue was ₹822.80 crore in the quarter versus ₹763.48 crore a year ago, up ~7.8% YoY. This accounts for the vast majority of company revenue, confirming that room, F&B and meetings/ events recovery is continuing.
* Other smaller lines: “Others” contributed ~₹10.68 crore, real estate remained nil for the quarter as projects are still at development stage. Total consolidated gross revenue from sale of products and services stood at ₹832.04 crore.

*Profitability: margins, segment profits and cost control*
* Hotels segment result (segment-level profit): ₹140.64 crore in Q2 FY26 versus ₹105.14 crore in Q2 FY25: an increase of roughly 34% YoY. Hotel operations are not just seeing higher revenue but also better operating leverage.
* Consolidated profit before tax of ₹188.69 crore reflects positive contributions from segment results and a favourable unallocated income line. The company reported an “other un-allocable income” credit that improved PBT.
* Expense structure: For the quarter, notable line items included consumption of food, beverage etc.: ₹86.49 crore, employee benefits: ₹186.61 crore, depreciation and amortisation: ₹104.08 crore and other expenses: ₹320.63 crore. Total consolidated expenses were ₹699.72 crore for the period.

*Balance sheet position: large asset base with low debt stress*
* Hotels segment assets: ₹8,646.46 crore as of 30 September 2025. Real estate assets stood at ₹1,414.45 crore reflecting ongoing development. Total consolidated assets were ₹12,821.90 crore. These numbers show sizeable capital employed in the business.
* Total consolidated liabilities were ₹1,745.43 crore. Finance costs in the quarter were modest at ₹1.91 crore, indicating low interest burden relative to the asset base.

*Half-year performance*
* H1 FY26 revenue and profit trends are consistent with the quarter: 6-month revenue from operations was ₹1,655.02 crore and PAT for six months was higher YoY, reflecting sustained momentum. The company’s operations are benefiting from improving demand and operational discipline.
* The strong YoY percentage jump in PAT (≈74%) is partly due to the structural changes after the demerger.

*Key insights for investors*
1. Margin recovery is real but fragile: Hotels segment profit has grown faster than revenue, showing operating leverage. The company must keep a lid on employee and “other” operating expenses to sustain margin gains.
2. Asset intensity remains high: With hotels assets ~₹8,646 crore and total assets ~₹12,822 crore, capital efficiency and ROIC will be key to monitor in coming quarters. Real estate assets will be important to monitor as they convert to revenue in future periods.
3. Low finance cost gives optionality: Interest costs are low relative to EBITDA potential, so management has room to invest selectively in product enhancement or debt-funded growth without immediate strain.

*Conclusion*
ITC Hotels’ Q2 FY26 results show a clearly strong performance: steady revenue growth, a sharp increase in PAT and improved profitability in the core hotels segment. The encouraging sign is that demand is growing not only in room bookings but also in higher-margin areas such as food and beverage and events, supported by better cost control. However, the company still operates with a large asset base, and its margins can be affected by changes in labour and input costs. If the company continues to manage costs well and maintains a better mix of high-margin revenues, it can convert this momentum into consistently stronger returns and long-term value for shareholders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Aditya Birla Capital Q2 FY26: Lending Momentum Accelerates, but Profit Expansion Stays Mild

, , , , , , 0 Comment
Read More
Aditya Birla Capital Q2 FY26: Lending Momentum Accelerates, but Profit Expansion Stays Mild
Banking, Markets, Result Updates - November 25, 2025

Aditya Birla Capital Q2 FY26: Lending Momentum Accelerates, but Profit Expansion Stays Mild

Aditya Birla Capital Q2 FY26: Lending Momentum Accelerates, but Profit Expansion Stays Mild

Aditya Birla Capital delivered a quarter of steady growth, led by strong momentum in lending and asset-growth businesses, while consolidated profit expansion remained modest. Revenue rose 4 % YoY to ₹12,481 crore, and PAT increased 3 % YoY to ₹855 crore. The NBFC and housing-finance portfolios grew materially (AUM up ~22-29 % YoY), while fee-income businesses (AMC, insurance) also posted healthy traction. Asset-quality remains under control (Gross Stage 2+3 at 3.03 % in lending). The business is scaling, but margin and profit lever remain mild.

*Key highlights*
* Consolidated Revenue: ₹12,481 crore (+4 % YoY)
* Consolidated Profit After Tax: ₹855 crore (+3 % YoY)
* Total Lending Portfolio (NBFC + HFC): ₹1,77,855 crore as on 30 Sept 2025 (+29 % YoY, +7 % QoQ)
* NBFC Disbursements: ₹21,990 crore (+14 % YoY, +39 % QoQ)
* NBFC AUM: ₹1,39,585 crore (+22 % YoY, +6 % QoQ)
* NBFC PBT: ₹956 crore (+13 % YoY, +3 % QoQ) & RoA 2.20%
* Gross Stage 2 + Stage 3 Ratio (lending): 3.03% (improved 121 bps YoY, 67 bps QoQ)
* Mutual Fund Quarterly Average AUM (QAAUM): ₹4,25,171 crore (+11 % YoY)
* Life Insurance Individual First Year Premium (H1 FY26): ₹1,880 crore (+19 % YoY)
* Health Insurance Gross Written Premium (H1 FY26): ₹2,839 crore (+31 % YoY)

*Revenue & profit analysis*
Revenue grew 4 % year-on-year to ₹12,481 crore, signalling steady scale. However, profit growth was only 3 % to ₹855 crore, meaning margin and cost pressures are limiting sharper bottom-line expansion.
On the lending front, while AUM and disbursements expanded strongly, profit gains are modest: the NBFC business delivered PBT ₹956 crore (up 13 % YoY) and RoA of 2.20%. That suggests the book growth is positive, but returns are still moderate given the scale.
Profit expansion is constrained likely by a mix of factors: rising cost of funds, investments in growth/ distribution and margin compression in newer segments. The modest 3% PAT growth despite healthy topline growth signals the need to monitor operating leverage and margins carefully.

*Segment performance*
* Lending/ NBFC & HFC: Disbursements ₹21,990 crore (14% YoY, 39% QoQ) and AUM ₹1,39,585 crore (22% YoY) highlight strong momentum. The housing-finance business did even better. Disbursements ₹5,786 crore (+44% YoY), AUM ₹38,270 crore (+65% YoY). Asset quality metrics improved (Stage 2+3 ratio 1.10% for HFC) indicating credit strength.
* Asset Management: The mutual fund business delivered an 11% YoY QAAUM growth to ₹4,25,171 crore. Folios serviced exceeded 1 crore (+5% YoY). Operating profit grew 13% YoY to ₹270 crore.
* Life Insurance: Individual first-year premium (FYP) in H1 rose 19% YoY to ₹1,880 crore. Market share in individual FYP rose 50 bps to 4.9%. Renewal premium grew 18% YoY to ₹4,664 crore, 13th-month persistency held at 86%.
* Health Insurance: Gross written premium up 31% YoY to ₹2,839 crore, stand-alone health insurer market share improved to 13.6% and combined ratio improved to 112%.

*Asset quality/ risk metrics*
For the lending business, the gross Stage 2+3 ratio improved to 3.03% (down 121 bps YoY, 67 bps QoQ). A RoA of 2.2% in the NBFC segment is respectable for scale-up businesses. In the HFC segment, the Stage 2+3 ratio was 1.1% (down 112 bps YoY) with RoA at 1.82% and RoE 13.95% in Q2. These figures suggest management is maintaining discipline in underwriting even while growing aggressively.

*Balance sheet & capital position*
On a standalone basis, ABCL posted PAT of ₹916 crore in Q2 FY26 (up ~12% YoY). Tier 1 ratio of 15.39% and total CRAR 17.98%. Return on equity was 14.2%. The lending portfolio across NBFC and HFC stands at ₹1,77,855 crore (+29% YoY). Total AUM (AMC + life + health) stood at ₹5,50,240 crore (+10% YoY) as on September 30, 2025. The company added 22 new branches, increasing its network to 1,712. Capital adequacy appears healthy and the company is investing in growth, which may moderate near-term margins but sustains long-term scalability.

*Management Commentary & Outlook*
Management emphasised that the quarter reflects “strong growth momentum and market share gains” in lending, insurance and funds businesses. The D2C and B2B platforms (76 lakh+ customers for ABCD, Udyog Plus AUM ₹4,397 crore) continue to expand the ecosystem. They believe that operating leverage will kick-in as investments made in distribution, data and digital mature. However, they cautioned that margin enhancement and cost discipline will be key to translating scale into stronger profits (credit cost is expected in the range ~1.2-1.3% for FY26). The company remains focused on deepening penetration into Tier 3/4 markets, continuing branch expansion.

*Conclusion*
Aditya Birla Capital has delivered a mixed but promising quarter. On one side, the business is firing on most cylinders: strong lending growth, expanding AUM, improved asset-quality and solid traction in fee-income verticals. On the other, the modest 3% PAT growth shows that scaling up is still absorbing costs and margin gains are yet to fully play out.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Ambuja Cements Q2 FY26: Volume & Margin Drive Deliver a Strong Surge

, , , , , , 0 Comment
Read More