Menu

Business

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
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
Groww Q2 FY26: Profit Growth Amid Revenue Pressure
Banking, Business, Result Updates - November 24, 2025

Groww Q2 FY26: Profit Growth Amid Revenue Pressure

Groww Q2 FY26: Profit Growth Amid Revenue Pressure

Groww reported a softer top line but a stronger bottom line in Q2 FY26. Revenue from operations fell year-on-year, yet PAT rose materially due to operating leverage, lower one-offs compared with the prior year and a healthier revenue mix. The quarter highlights how Groww’s business model is maturing, even when top-line growth slows, profitability remains resilient.

*Headline numbers (consolidated)*
* Revenue from operations (Q2 FY26): ₹10,187.42 mn
* Other income: ₹520.55 mn
* Total income: ₹10,707.97 mn
* Total expenses: ₹4,325.99 mn (includes employee benefits, finance costs, depreciation, other expenses)
* Profit before tax: ₹6,376.77 mn
* Profit after tax (PAT): ₹4,713.39 mn
* EPS (basic): ₹0.79
Revenue for the same quarter last year (30 Sep 2024) was ₹11,253.87 mn — so revenue declined ~9.5% YoY, while PAT rose ~12% YoY (from ₹4,201.60 mn to ₹4,713.39 mn).

*Why revenue fell but profit rose*
Groww highlights that the revenue decline was driven by changes in derivatives and “true-to-label” regulations which reduced derivatives revenue. However, higher contribution from Stocks, MTF, LAS and interest income helped offset some of that fall. The company also notes pricing changes and higher average order values (stock order AOV up 66% YoY to ₹59,079) improved yield per order.
Groww’s model attributes a large share of incremental revenue to bottom line because many costs are fixed. The company explains that since over 90% of its costs do not increase directly with revenue, any improvement in certain high-margin revenue streams leads to a larger rise in profits, resulting in higher PAT margins. For Q2 FY26, Groww reports a PAT margin of ~44%.
Management states that Q2 last year had an impact from a one-time long-term incentive provision (~₹1,593 mn) which distorts simple YoY PAT comparisons. Adjusting for that, the company says PAT would have moved more in line with revenue.

*Platform and product KPIs*
* Active users: Grew 3.2% QoQ, with new acquisitions contributing ~4.5% of the incremental revenue growth in the quarter.
* Revenue mix shift: Stocks, Margin Trading Facility (MTF) and LAS (loan against securities) saw rising shares. Derivatives’ share fell ~10% points YoY. Management expects the Fisdom acquisition to contribute approximately 3–4% to Revenue from Operations based on the current run-rate.
* MTF scale: Active MTF users rose to 78k and the net funded MTF book reached ₹16,683 mn (market share ~1.7% in that segment).

*Cash, balance sheet and M&A*
Groww generated ₹4,713 mn in earnings in Q2 (which management describes as cash generated), but the closing cash balance fell to ₹35,990 mn from an opening ₹38,197 mn — largely due to ₹9,610 mn paid for the acquisition of Fisdom, and deployments into MTF/ LAS and working capital. Total assets stood at ~₹136,768.85 mn as of 30 Sep 2025 (showing significant financial assets and customer-linked balances).

*Strategic implications*
As the derivatives channel stabilises under new rules, QoQ revenue could improve. Meanwhile, Stocks, MTF and LAS are scalable revenue engines and appear to be gaining traction.
Groww’s PAT margin is high because of operating leverage and a favourable mix. However, discrete investments (branding, higher CAC periods) and one-offs can fluctuate quarterly margins. Management suggests looking at annualised PAT margin rather than quarter-to-quarter moves.
The Fisdom purchase is modest in size relative to the balance sheet but strategic for wealth offerings. Successful integration and cross-selling into the growing and affluent user segment will be key to sustaining revenue growth.

*Conclusion *
Groww’s Q2 FY26 shows a platform navigating revenue pressure from regulation and product mix changes, yet delivering stronger profitability through scale and higher-yield offerings. If the company continues to build its Stocks, MTF and LAS segments and integrates Fisdom efficiently, it can convert this momentum into steadier long-term revenue growth. Otherwise, results may stay profitable but uneven.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure

, , , , , , 0 Comment
Read More
Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure
Business, Markets, Result Updates - November 24, 2025

Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure

Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure

Dr Reddy’s delivered healthy top-line growth in Q2 FY26, consolidated revenue of ₹88,051 Mn (+9.8% YoY, +3% QoQ), but profitability shows strain: gross margin fell to 54.7% and PBT margin slipped, reflecting product mix shifts, one-offs and pricing pressure in key markets.

*Key numbers*
* Revenue (consolidated): ₹88,051 Mn (Q2 FY26), +9.8% YoY and +3% QoQ
* EBITDA: ₹23,511 Mn, 26.7% of revenues
* Profit before tax (PBT): ₹18,350 Mn, PBT margin 20.8% (down ~310 bps YoY)
* Profit after tax (PAT) attributable to equity holders: ₹14,372 Mn, +14% YoY and +1% QoQ
* Gross margin: 54.7% (Q2 FY25: 59.6%), down ~492 bps YoY and 223 bps QoQ.
* SG&A: ₹26,436 Mn, 30% of revenues, +15% YoY (company notes one-offs and NRT investments)
* R&D: ₹6,202 Mn, 7% of revenues (down YoY)
* Impairment (non-current assets, net): ₹662 Mn (noted as related to discontinued pipeline/ product issues)
* Global Generics: ₹78,498 Mn (+10% YoY): broken down as North America ₹32,408 Mn (–13% YoY), Europe ₹13,762 Mn (+138% YoY, driven by NRT acquisition/ excluding NRT growth is 17% YoY), India ₹15,780 Mn (+13% YoY), Emerging Markets ₹16,548 Mn (+14% YoY)

*What accelerated the revenue*
Growth came from a broad mix: branded markets (India, Emerging Markets) and the recently acquired Nicotine Replacement Therapy (NRT) business (a strong contributor to Europe growth) offsetting weakness in certain U.S. generics like Lenalidomide. In short, new product launches and M&A (NRT) and volume growth in emerging markets powered top-line expansion.

*Rationale behind margin compression*
1. Product mix/ pricing headwinds in North America: Lower Lenalidomide sales and price erosion in U.S. generics reduced gross margin contribution.
2. One-offs and provisions: The company recorded inventory provisions and an impairment related to discontinued pipeline products (₹662 Mn) and mentioned a potential VAT liability (~₹700 Mn) that lifted SG&A. These items dented margins this quarter.
3. PSAI operating leverage: PSAI (Pharmaceutical Services & Active Ingredients: APIs & services) margins are lower than Global Generics and a larger share or weaker performance in PSAI pulls consolidated gross margin down.
Net result: gross margin fell to 54.7%, and while EBITDA remains at 26.7%, PBT and effective margins are lower than last year. The firm emphasises these are partly transient and linked to mix and one-offs.

*Mixed outlook for the U.S. and Europe*
* United States: the U.S. generics franchise is still material (North America ~₹32,408 Mn this quarter) but faces pricing erosion and product-specific declines (Lenalidomide). Management flagged that NA pressures continue to be the primary margin headwind.
* Europe: Headline growth in Europe looks strong (₹13,762 Mn, +138% YoY) but a large part is acquisition-driven (NRT). Forex and product launches helped QoQ gains. Europe is a growth story for Dr Reddy’s, but sustainability depends on integration of the NRT asset and continued new product wins.

*Conclusion*
Dr Reddy’s posted solid revenue growth but faced a clear margin dip due to U.S. pricing pressure, product mix, and one-offs. The core business remains strong and diversified, but near-term profitability will depend on stabilising the U.S. portfolio and successfully scaling the Europe NRT business. Medium-term margin recovery is possible if execution stays on track.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Apollo Hospitals Q2 FY26: Double-Digit Growth Across Healthcare, Digital & Diagnostics as Core Businesses Expand

, , , , , , 0 Comment
Read More
BHEL Posts Strong Q2 FY26 Comeback as Profit Rebounds
Business, Equities, Markets, Result Updates - November 22, 2025

BHEL Posts Strong Q2 FY26 Comeback as Profit Rebounds

BHEL Posts Strong Q2 FY26 Comeback as Profit Rebounds

BHEL staged a clear comeback in Q2 FY26, reporting a return to profitability after a loss in the prior quarter. Revenue, margins and segment performance all improved quarter-on-quarter, driven largely by better execution in the Power segment, lower “other expenses”, and positive working-capital movement in a few areas.

*Headline numbers (quarter ended 30 Sep 2025)*
* Revenue from operations: ₹7,511.80 crore (Q2 FY26) vs ₹5,486.91 crore (Q1 FY26) and ₹6,584.10 crore (Q2 FY25)
* Other income: ₹181.75 crore; Total income: ₹7,693.55 crore
* Total expenses: ₹7,201.54 crore
* Profit before tax (PBT): ₹492.01 crore (positive), after a loss of ₹607.43 crore in Q1 FY26 and vs PBT of ₹131.94 crore in Q2 FY25
* Net profit (PAT): ₹367.67 crore vs loss of ₹454.89 crore in Q1 FY26 and ₹96.67 crore in Q2 FY25
* Basic & diluted EPS (not annualised): ₹1.06 vs (₹1.31) in Q1 FY26 and ₹0.28 in Q2 FY25
* Total assets (30 Sep 2025): ₹72,361.98 crore
* Total liabilities: ₹47,577.63 crore

*What Sparked the Q2 Turnaround*
* Revenue recovered strongly QoQ: Revenue rose ~37% sequentially (₹5,487 crore to ₹7,512 crore). That alone gives headroom for profit recovery, provided costs are controlled.
* Expenses were contained: Total expenses in Q2 were ₹7,201.54 crore, only modestly higher than Q1 in absolute terms, but the combination of higher sales and relatively controlled overheads pushed operating profitability to positive levels.
* Big swing in segment profits, especially Power: The Power segment reported a turnaround in segment profit (profit before tax & finance cost) to ₹593.76 crore in Q2 from a loss of ₹510.00 crore in Q1, that swing is the main operational story behind the group PBT recovery. Industry segment also contributed ₹280.04 crore.
* Finance costs stayed elevated but manageable: Finance cost was ₹195.21 crore in the quarter, material but well covered given the operating profit.

*Breakdown of Key Numbers*
* Cost of materials & services: ₹5,741.38 crore (Q2)
* Change in inventories: Negative ₹527.87 crore (this negative number indicates inventory drawdown that supported revenue recognition)
* Employee benefit expense: ₹1,479.97 crore
* Depreciation & amortisation: ₹75.46 crore
* Other expenses: ₹237.39 crore in Q2, notably much lower than Q1’s ₹675.05 crore (this fall materially helped the profit recovery)

*Balance sheet & cash-flow highlights*
* Total assets: ₹72,361.98 crore
* Total liabilities: ₹47,577.63 crore
* Net assets remain healthy with other equity ~₹24,087.94 crore
* Working capital: For the six months ended 30 Sep 2025, OCF was under pressure, inventories and trade receivables movements created headwinds (inventories movement ~₹2,594.79 crore used, trade receivables ~₹655.30 crore increase)
* Net cash from operating activities for H1 was negative ~₹1,181.95 crore

*Key Concerns to Monitor*
* Receivables & project execution: BHEL’s business is project heavy, slower collections or project delays can bite cash flow even when the P&L shows profit.
* Foreign receivables: Auditor’s emphasis notes reference some overdue overseas amounts (e.g., amounts stuck due to geopolitical issues). It doesn’t change Q2 profit but is a contingent concern.

*Conclusion*
BHEL’s Q2 FY26 shows a real and measurable rebound: strong sequential revenue growth, a large swing in Power segment profitability and a return to positive PAT (₹367.7 crore). That’s the operational comeback. The caveat is cash conversion: the company’s cash flow and working-capital lines need attention (inventory and receivables movements), and certain debtor issues flagged in auditor notes need attention.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Larsen & Toubro Q2 FY26: Robust Order Inflows Drive Double-Digit Revenue Growth

, , , , , , 0 Comment
Read More
Larsen & Toubro Q2 FY26: Robust Order Inflows Drive Double-Digit Revenue Growth
Business, Equities, Markets, Result Updates - November 21, 2025

Larsen & Toubro Q2 FY26: Robust Order Inflows Drive Double-Digit Revenue Growth

Larsen & Toubro Q2 FY26: Robust Order Inflows Drive Double-Digit Revenue Growth

Larsen & Toubro (L&T) reported a solid Q2 FY26 where strong order wins and healthy execution drove double-digit revenue growth and higher profits. The quarter was marked by very large order inflows, a growing international share, and steady improvement in key segments like Energy and IT & Technology Services. The company also retains a strong order book that supports medium-term revenue visibility.

*Headline figures (consolidated)*
* Revenue (Q2 FY26): ₹67,984 crore, up 10% YoY.
* Profit after tax (Q2 FY26): ₹3,926 crore, up 16% YoY.
* Order inflow (Q2 FY26): ₹115,784 crore, up 45% YoY; half-year order inflow ₹210,237 crore (+39% YoY).
* Order book as on Sept 30, 2025: ₹667,047 crore, +15% vs Mar 2025.
* International revenue (Q2 FY26): ₹38,223 crore (56% of revenue); international order inflow was ₹75,561 crore (65% of orders).

*Key drivers of performance*
* L&T won very large orders across several businesses (Public Spaces, Data Centres, Metro, Hydro, Renewables and Transmission & Distribution). This big ticket wins list is the main reason why order inflow jumped sharply in Q2 and H1. A higher order intake improves the company’s revenue visibility for the next few years.
* Execution picked up in the Energy/Hydrocarbon businesses — that segment recorded strong growth in customer revenues (execution-led) and contributed importantly to quarterly revenue growth. Outside India, execution in international projects helped the company overcome some domestic seasonality.

*Segment highlights*
* Infrastructure Projects: Order inflow ₹52,686 crore in Q2; order book for the segment ₹394,706 crore. Customer revenues were ₹31,759 crore for the quarter, down 1% YoY due to slower water project progress and extended monsoons, but margins improved slightly to 6.3%.
* Energy Projects: Exceptional quarter — orders ₹38,156 crore (more than 100% YoY growth). Customer revenues surged 48% YoY to ₹13,082 crore as international hydrocarbon projects ramped up, though segment EBITDA margin moderated to 7.3% because of some project-level variations.
* Hi-Tech Manufacturing: Orders lower this quarter (₹2,582 crore), but revenues were up 33% YoY (₹2,754 crore) thanks to better execution; segment margin improved to 14.7%.
* IT & Technology Services (IT&TS): Customer revenues ₹13,274 crore, +13% YoY; international billing remains dominant (92%). Segment margin was 20.2% for the quarter.

*Investors takeaways*
* Order book depth: A ₹6.67 lakh crore order book gives multi-year revenue visibility and reduces near-term demand cyclicity risk.
* International diversification: Over half the quarterly revenue and a large share of orders are international, which cushions domestic seasonality and opens higher-margin project opportunities.
* Execution versus margins: Execution helped grow revenue and PAT, but some segment margins (notably Energy) showed pressure due to project close-outs and contract variations — this is something to watch in coming quarters.

*Risks & watch items*
* Fixed-price international projects can compress margins if cost or schedule risks appear.
* Domestic infrastructure can be seasonally impacted (monsoons) and by local regulatory/ legal developments.
* Integration and working capital management remain important because large orders need capital and timely execution.

*Company outlook*
L&T expects a constructive demand environment driven by capex in India and steady investment in key overseas markets (Middle East, Africa, U.S., Europe). Management’s commentary and the published outlook emphasize continued focus on execution efficiency, scaling technology-led businesses, and prudent portfolio actions under their Lakshya 2026 priorities. Given the strong order inflow and execution pickup, the company appears well placed for revenue growth and margin recovery in H2, provided commodity and forex headwinds remain manageable.

*Conclusion*
Q2 FY26 shows L&T doing what it is known for: winning big orders and executing complex projects across geographies. The quarter delivered double-digit revenue growth and a healthy PAT increase, backed by a robust order book. For investors, the story is execution + orders; the near-term focus should be on margin trends as large international projects move from award to execution.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Suzlon Energy Ltd: PAT rose 538% YoY to ₹1,279 crore, revenue jumped 85%

, , , , , , 0 Comment
Read More
From Mumbai to the World: Equity Right’s Climb to the Global Top 3
Business, Equities, Hall Of Fame, Markets - November 20, 2025

From Mumbai to the World: Equity Right’s Climb to the Global Top 3

From Mumbai to the World: Equity Right’s Climb to the Global Top 3

In a digital world crowded with investment apps and trading tools, carving out a meaningful space without external funding is rare. Yet Equity Right, founded in Mumbai in 2015, has built a strong reputation for independent equity research and advisory, despite being fully self funded.

According to Tracxn, *Equity Right is ranked 3rd among 16 global competitors in its category*, positioned alongside companies from: *Canada (UltraTrader, TraderSync), Germany (Edgewonk), Brazil (Guru), and United States (Stocks+ App, The Trading Buddy, Wise Tradr)*. This isn’t just a ranking, it’s a validation of a decade-long journey powered by consistency, credibility, and sheer bootstrap grit.

Equity Right’s #3 global ranking comes purely from its product strength, user traction, and consistent research quality, not marketing or funding.

The firm’s research desk has delivered an average CAGR of approximately 28%, driven by recommendations such as PFC, REC, HUDCO and Keynes Technologies and many more. Equity Right currently manages an AUM of ₹~440 crore, supported by a steadily expanding investor base across HNIs, family offices, and institutions.

While not a merchant banker, quite a few IPO ready companies have been guided by the Equity Right team. Equity Right has been participant in multiple stock placements with top domestic institutions and leading fund houses. The firm has participated in transactions totalling over ₹1,500 crore over last 5 years.

The firm offers a comprehensive range of research-driven services, including equity research reports, results updates, IPO research, and coverage of corporate and sectoral trends. It also delivers daily market news, expert views, and analysis across currencies and commodities. Its platform features a dedicated investor forum, real estate research, including property rates, top picks, expert opinions, and news.

Equity Right being “unfunded” simply means it has grown entirely through its own discipline, decisions, and user trust. It reflects the long-term, research-first vision of founder Gaurav Daptardar, who built the platform from a small idea into a respected global competitor.

Under the leadership of Gaurav Daptardar, Equity Right’s expansion into investment banking, wealth management, PMS, and full-spectrum research marks a notable milestone for an independently built firm operating across both buy and sell sides.

To summarise, Equity Right’s rise is a story of patience, expertise, and purpose, a budding research house from Mumbai quietly proving that consistent quality can achieve global success.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

HAL Q2 FY26: Revenue ₹6,628 Crore (+11%), PAT ₹1,662 Crore (+11.6%) — Margin Pressure Visible

, , , , , , 0 Comment
Read More
Reliance Q2 FY26: Gross Revenue ₹2.83 Lakh Crore, EBITDA +14.6% — Retail & Digital Drive Growth
Economy, Markets, Result Updates - November 19, 2025

Reliance Q2 FY26: Gross Revenue ₹2.83 Lakh Crore, EBITDA +14.6% — Retail & Digital Drive Growth

Reliance Q2 FY26: Gross Revenue ₹2.83 Lakh Crore, EBITDA +14.6% — Retail & Digital Drive Growth

Reliance reported a strong quarter with consolidated gross revenue of ₹2,83,548 crore, EBITDA of ₹50,367 crore (+14.6% YoY) and consolidated PAT of ₹22,092 crore (+14.3% YoY) — driven mainly by Jio (digital) and Retail momentum.

*Consolidated headline numbers*
* Gross revenue: ₹2,83,548 crore (up 10.0% YoY).
* EBITDA: ₹50,367 crore (up 14.6% YoY).
* Profit before tax (PBT): ₹29,124 crore (up 16.3% YoY).
* Tax: ₹6,978 crore.
* Profit after tax (PAT): ₹22,092 crore (up 14.3% YoY).
* Finance cost: ₹6,827 crore;
* Depreciation: ₹14,416 crore.
These are the consolidated top-line and profitability numbers for Q2 FY26.

*Digital/ Jio Platforms*
* Gross revenue (JPL consolidated): ₹42,652 crore (15% YoY).
* Operating revenue: ₹36,332 crore (14.6% YoY).
* EBITDA: ₹18,757 crore (up 17–18% YoY) with margin expansion (+140 bps).
* Jio milestones: subscribers ~506.4 million, ARPU rose to ₹211.4.
Jio’s improved ARPU, subscriber additions (net add ~8.3 million) and higher monetization were key profit levers this quarter.

*Retail (Reliance Retail Ventures Limited — RRVL)*
* Gross revenue (Retail): ₹90,018 crore (up 18% YoY).
* Net revenue: ₹79,128 crore; EBITDA from operations: ₹6,624 crore; Total EBITDA: ₹6,816 crore (up ~16.5% YoY).
Retail also reported 369 million registered customers and 19,821 stores (412 new stores opened in the quarter). Festive demand and faster adoption of quick commerce lifted volumes.

*Oil-to-Chemicals (O2C)*
* Revenue: ₹160,558 crore (small YoY uptick ~3.2%).
* EBITDA: ₹15,008 crore (up ~21% YoY); EBITDA margin improved ~130 bps to 9.3% — supported by better fuel cracks, higher domestic fuel placement and commodity delta improvements.

*Exploration & Production (E&P)*
Revenue and EBITDA were steady-to-low single-digit changes; production volumes and price realizations mixed across blocks.

*Balance sheet & cash flow signals*
* Capex during the quarter: ₹40,010 crore (shows heavy investment activity).
* Net debt: moved to ₹118,545 crore (up slightly from ₹117,581 crore).
* Net debt/ LTM EBITDA: ~0.58x — implies the company remains comfortably levered relative to earnings while investing aggressively.

*Risks & catalysts*
* Catalysts: continued Jio ARPU upsides, further traction in quick commerce and festive retail, and improved downstream fuel cracks (helpful for O2C EBITDA). Jio’s scale (500M+ subs) is a structural strength.
* Risks: higher finance costs (Q2 finance cost rose YoY), large recurring capex, and exposure of petrochem margins to global crude/chain dynamics. Also, compare Q2 to Q1 for one-offs — Q1 included proceeds from sale of listed investments that affected sequential comparisons.

*Conclusion*
Reliance posted a broadly solid Q2 FY26: double-digit YoY growth in revenue, EBITDA and PAT, largely led by Jio’s monetisation and Retail’s festive-led growth, while the group continues heavy capex and maintains a moderate net-debt/EBITDA ratio. Investors will watch margin sustainability across O2C and the cash-flow impact of the ongoing investment program.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

HUL Q2 FY26: Revenue Up 2%, PAT Up ~4% Amid GST-Led Disruption

, , , , , , 0 Comment
Read More