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Bank of Baroda Q2 FY26: Strong Loan & Deposit Growth but Profit Softens on Lower Other Income
Banking, Markets, Result Updates - December 12, 2025

Bank of Baroda Q2 FY26: Strong Loan & Deposit Growth but Profit Softens on Lower Other Income

Bank of Baroda Q2 FY26: Strong Loan & Deposit Growth but Profit Softens on Lower Other Income

Bank of Baroda reported a healthy quarter with growth in loans and deposits that reflects continued demand for credit and strong franchise build-up. However, profit for the quarter was lower on a YoY basis mainly because non-interest income fell sharply and recoveries were weaker. Core earnings from net interest income improved, margins are holding up and asset quality showed signs of improvement.

*Key Highlights*
* Net Profit (PAT): ₹4,809 crore in Q2 FY26: down ~8.2% YoY (vs ₹5,238 crore in Q2 FY25).
* Net Interest Income (NII): ₹11,954 crore: +2.7% YoY.
* Net Interest Margin (NIM): 2.96% in Q2 FY26: modest improvement sequentially, slightly lower YoY.
* Non-Interest Income: ₹3,515 crore: down ~32% YoY due to weaker recoveries and treasury gains.
* Advances (Loans): ₹12.79 trillion: +11.9% YoY, showing broad credit growth including retail.
* Deposits: ₹15.00 trillion: +9.3% YoY.
* Retail Lending Growth: Retail advances up ~17.5% YoY.
* Asset Quality: Gross NPA improved to ~2.16% and Net NPA fell to ~0.57%.
* Slippage Ratio: ~0.91% showing stable credit control.
* Capital Adequacy (CRAR): ~16.54% with Tier-I at ~14.15%.

*Revenue & Profit Analysis*
Bank of Baroda’s revenue mix shows a positive trajectory in core lending income. Net interest income, the difference between interest earned on loans and interest paid on deposits rose +2.7% YoY to ₹11,954 crore, indicating demand for loans remains strong and pricing power has held up reasonably well. However, non-interest income which includes fees, commissions, recoveries and treasury gains fell sharply by roughly a third. A key reason was a lower level of recoveries from written off accounts compared with last year’s strong base quarter. Together, this led to a ~8% decline in net profit even though core banking income from interest improved. For seq­uential context, profit was modestly better than Q1, showing some stabilisation.

*Balance Sheet & Asset Quality*
Business growth was a standout positive:
* Loans (advances) grew ~11.9% YoY to ₹12.79 trillion, led by retail segments.
* Deposits grew ~9.3% YoY to ₹15 trillion, showing confidence in the bank’s funding franchise.
Improving asset quality was another encouraging theme. Gross NPA ratio improved to ~2.16% and Net NPA ratio dropped to ~0.57%, suggesting better credit screening and lower stress in the loan book. The slippage ratio of ~0.91% also points to manageable additions to bad loans. Capital ratios remained comfortable, with CRAR ~16.54% and Tier-I at ~14.15%, giving the bank room to support future loan growth without jeopardizing financial strength.

*Business Drivers & Challenges*
1. Drivers:
* Retail credit momentum (17.5% growth in retail loans) helps diversify the loan mix and supports margins.
* Deposit growth near double digits strengthens the bank’s funding base.
* Improving asset quality reduces provisioning stress.
2. Challenges:
* Non-interest income contraction hurt profitability, emphasizing reliance on interest income.
* NIM pressure remains a common theme in the banking sector, though sequential improvement hints at more stable margins ahead.

*Management View & Outlook*
Management has highlighted that core lending demand remains strong and they aim to sustain loan growth in both retail and corporate segments. The bank expects margins to stay roughly in the current band as deposit repricing benefits continue to flow gradually into earnings. Asset quality improvement is being monitored through disciplined credit evaluation and provisioning policies. Given the competitive deposit environment and fluctuating non-interest earnings, the focus appears to stay on profit stability, balance sheet growth and NIM support in the coming quarters.

*Valuation Perspective*
Bank of Baroda is trading at a discount to private sector peers, which is typical for public sector banks given governance risk perceptions and slower revenue diversification. However:
* Strong franchise growth in advances and deposits suggests earnings can grow sustainably over the next 2–3 years.
* Improving asset quality means credit costs could stay controlled, supporting net profit expansion.
* Margins (NIM) stabilising near ~3% offers reasonable support for earnings sustainability.
For a long-term investor, the bank’s valuation should reflect a mid-cycle correction in profit with a path to earnings improvement over time as non-interest income recovers and the loan book mix improves. Considering sector norms, a moderate P/B (Price to Book) multiple that incorporates future growth (e.g., 0.7x–0.9x book over next 12–18 months, subject to market conditions) could be realistic, balancing strong growth in core loans with short-term profitability headwinds.

*Conclusion*
Overall, Bank of Baroda delivered a steady operational quarter with healthy growth in loans and deposits and improved asset quality, even though net profit softened due to weaker non-interest income and lower recoveries. Core banking performance remains strong: NII is growing, margins are stable and credit quality continues to improve, which keeps the earnings outlook constructive. While near-term profitability may remain uneven because of dependence on recoveries and treasury income, the bank’s balance sheet strength, capital adequacy and consistent loan growth position it well for gradual earnings improvement over the coming quarters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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From private markets to full-stack investing: Inveniam acquires Swarm, a bet on asset-management evolution

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From private markets to full-stack investing: Inveniam acquires Swarm, a bet on asset-management evolution
Business, Market News, Markets - December 11, 2025

From private markets to full-stack investing: Inveniam acquires Swarm, a bet on asset-management evolution

From private markets to full-stack investing: Inveniam acquires Swarm, a bet on asset-management evolution

On 9 December 2025 Inveniam Capital Partners announced it will acquire Swarm, a blockchain platform focused on compliant tokenisation and trading of digital securities, with the transaction expected to close in Q1 2026. Financial terms were not disclosed.

*Why this matters: complementary strengths*
The acquisition pairs Inveniam’s data-centric infrastructure for private markets with Swarm’s tokenisation and trading layer. Inveniam has been building a “digital middle office” that stitches together permissioned data, valuation workflows and AI tooling for real-world assets, a capability it has been expanding through partnerships (notably with AI group G42) and prior bolt-ons. The Swarm deal promises a single vendor able to ingest private-market data, tokenise assets compliantly and offer trading/ secondary market plumbing. That vertical integration is what Inveniam calls a “full-stack” platform for asset management.

*Strategic rationale: agentic, AI-native markets*
Inveniam’s public statements stress the next phase: making private markets “agentic” i.e., AI-native investment systems that can value, trade and manage assets with automated agents while data sovereignty and auditability are preserved. Swarm brings market-facing token issuance and trading rails, whereas Inveniam supplies the valuation, reporting and data governance layer. The combination reduces friction for asset owners who want tokenised liquidity without ceding control of sensitive data.

*Backing and scale: where Inveniam stands financially*
Inveniam has attracted institutional capital and strategic partnerships over the last 12-24 months: UAE AI group G42 announced a strategic investment in Inveniam in December 2024 and Inveniam’s cumulative fundraising has been reported at roughly $120 million. The company has used that capital to expand its product set and make targeted acquisitions (Hedgehog, Storj) and investments (a $20 million stake in MANTRA earlier in 2025). These moves show Inveniam has the funding and strategic partnerships to attempt a platform play at scale, though precise revenue or profitability figures remain private.

*The market opportunity: tokenisation is still early but fast-growing*
Estimates for the tokenised-assets opportunity vary. Tokenised market capitalisation across asset classes could plausibly reach about $1-4 trillion by 2030 under different scenarios, with a central estimate near $2 trillion as per market sources. The potential upside for a successful full-stack platform is therefore large, but timing and adoption remain the central uncertainties.

*Risks and frictions: why execution is not guaranteed*
1. Regulation: Tokenised securities must follow strict financial laws. When companies launch big tokenised products, they need approvals from regulators and must work closely with licensed custodians to stay compliant.
2. Liquidity: Tokenisation makes assets easier to split and trade, but real buying and selling activity depends on whether exchanges list these assets and whether big investors and market-makers participate. Without them, trading will remain low.

*What success would look like*
If Inveniam integrates Swarm smoothly and leverages its G42 AI partnership, success could look like: steady growth in institutional token issuances (real-estate, private credit), daily valuation feeds for thousands of assets, fee revenues from subscription valuation services plus trading/ secondary fees and partnerships with major custodians/ exchanges.

*Conclusion*
The Inveniam-Swarm tie-up signals a deliberate move to own both the data and the token rails that could one day make private markets function with the transparency and speed of public markets. The road to wide adoption will be uneven, regulatory and liquidity gaps persist, but the combination aligns with where many institutions want to go: safer, auditable tokenisation coupled with AI-driven analytics.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Eternal Q2 FY26: Revenue Explodes, But Profit Takes a Hit As Costs Surge

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Eternal Q2 FY26: Revenue Explodes, But Profit Takes a Hit As Costs Surge
Equities, Markets, Result Updates - December 11, 2025

Eternal Q2 FY26: Revenue Explodes, But Profit Takes a Hit As Costs Surge

Eternal Q2 FY26: Revenue Explodes, But Profit Takes a Hit As Costs Surge

Eternal delivered a dramatic quarter on the top line with revenue roughly tripling YoY, driven by a huge jump in its quick-commerce business. However, despite the surge in business activity, its net profit fell sharply, reflecting higher operating costs and investments as it scales up.

*Key Highlights*
* Revenue from operations in Q2 FY26: ₹ 13,590 crore (up +183% YoY vs ₹ 4,799 crore in Q2 FY25).
* Total Income (all revenues): ₹ 13,942 crore (up +177.7% YoY vs ₹ 5,020 crore in Q2 FY25).
* Profit Before Tax (PBT): ₹ 129 crore (down vs ₹ 237 crore in Q2 FY25, −45.6% YoY)
* Profit After Tax (PAT): ₹ 65 crore (vs ₹ 176 crore in Q2 FY25, down −63.1% YoY)
* Quarter-on-quarter (QoQ) growth: Compared to Q1 FY26 (₹ 7,521 crore total income), Q2 total income grew by +85.4%.
* Earnings per Share (EPS): ₹ 0.07 for Q2 FY26 (vs ₹ 0.20 in Q2 FY25)

*Revenue & Profit Analysis*
Eternal’s revenue surge (approx. +183% YoY) is eye-catching, showing that business demand (especially from quick commerce) has accelerated sharply. But profit didn’t follow the same path: PAT dropped by about 63% YoY.
As the company scales up, costs have risen heavily: fulfillment, delivery, inventory and marketing to support growth. These costs have eaten into margins. So while top-line growth is strong, the business is still working to turn that into stable profitability.
On a sequential basis, Q2 shows improvement over Q1 (total income +85%), which suggests momentum is building. However, with profit still under pressure, this remains a “growth-first, profitability-later” phase.

*What’s Driving Growth?*
* The major driver of the growth appears to be the quick-commerce business (owned by Eternal’s subsidiary), which saw massive scale up, that contributed significantly to the overall revenue jump.
* Other verticals: food delivery, B2B supplies, going-out & entertainment (via its other arms) continue to operate, but quick-commerce is clearly the standout growth engine this quarter. The quick-commerce push appears central to the company’s strategy to scale rapidly and capture market share.
Thus, growth is being driven by aggressive expansion and scaling of quick-commerce operations, even if that means higher costs in the short term.

*Margin & Cost Pressure: The Trade-off of Scale*
This quarter’s results reflect a classic trade-off many growth companies face: rapid expansion vs. profitability. While revenue surged, margin pressure intensified: high delivery costs, marketing spends and investments in inventory/ operations have pushed down profitability. The sharp drop in PAT despite strong revenues suggests the company is prioritizing scale over near-term profitability.

*Balance Sheet & Cash: Headroom Still Present*
Publicly available filings show that as of Q2 FY26, the company ended with a substantial cash balance. This cash cushion gives Eternal some breathing space: it can continue to invest (marketing, scale, operations) while waiting for volume growth and operating-leverage gains to translate into better margins. But the path to consistent profits still depends on controlling costs and improving efficiency.

*Strategic Outlook: What This Quarter Means for Investors*
Eternal’s massive revenue growth in Q2 shows that demand and scale are real, especially for quick commerce. That suggests the business model has legs and there is potential for growth in user base, frequency and market share. But profitability remains elusive for now.

*Key Concerns to Monitor*
* Whether cost controls and operating-leverage improvements begin showing up in margins.
* Whether quick-commerce growth sustains, and its unit economics improve.
* How other verticals (food delivery, B2B supplies, going-out services) contribute. Portfolio diversification could help reduce dependence on a single business line.
So far, Eternal looks like a high-growth, high-risk, high-potential stock: well suited for investors comfortable with short-term swings but optimistic about long-term scale and dominance.

*Valuation Outlook*
Eternal is currently valued like a high-growth platform company, mainly because its quick-commerce business is expanding very fast, even though profits are still small. Based on recent market pricing, the company trades at a price-to-sales (P/S) multiple of roughly 5-6x FY26 revenue, which is on the higher side compared to traditional consumer or internet companies, but typical for high-growth tech-enabled platforms. If revenue continues to grow at a strong rate (30-40% annually over the next two years), and if the company can lift its net profit margin from the current ~0.5% level to a more stable 2-3%, then the valuation can remain justified. However, if profitability stays weak, the stock may see correction because the business is still priced for strong future earnings. In simple terms, Eternal’s valuation today depends more on expectations than on current profits. Consistent improvement in efficiency, margins and cash flow is required for the stock to deliver long-term returns.

*Conclusion*
Eternal’s Q2 FY26 shows a company that is growing extremely fast but still figuring out how to make that growth consistently profitable. Revenue nearly tripled, showing that demand and execution are working. But the steep fall in profit shows that scaling quickly comes at a cost. Margins and cost control will decide how durable this growth really is. If the company can manage costs, improve efficiency and turn higher volume into stronger margins, there could be substantial upside ahead. For now, Eternal remains a high-potential but highly volatile.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Why Kaynes Technology Has Fallen & What Investors Should Do

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Why Kaynes Technology Has Fallen & What Investors Should Do
Business, Equities, Markets - December 9, 2025

Why Kaynes Technology Has Fallen & What Investors Should Do

Why Kaynes Technology Has Fallen & What Investors Should Do

Kaynes Technology has seen a sharp decline recently, and the fall has largely been driven by a loss of confidence rather than a deterioration in its underlying business. A major brokerage report highlighted gaps in disclosures and accounting treatment, which shook investor trust. Even though the company has clarified its position, the market is waiting for concrete evidence especially around receivables and cash flows before sentiment stabilises.

*Reasons for the Stock Drop*

*1. Concerns about governance raised by a brokerage report*
Kotak identified discrepancies between the standalone and consolidated statements, particularly with regard to related-party transactions and the accounting for acquisitions such as Sensonic and Iskraemeco. This resulted in significant institutional selling and urgent governance issues.

*2. Perplexity about intangibles and goodwill*
Goodwill and significant intangible assets were involved in both purchases. Instead of disclosing each component separately, Kaynes combined the capital reserve from Iskraemeco with Sensonic’s goodwill, resulting in a total disclosure of ₹10.31 million.
Analysts questioned the transparency and quality of reporting due to the atypical presentation, even though the corporation claims that this treatment complies with Ind AS 103.

*3. Stretched working capital and high receivables*
The smart-meter business put additional strain on the company, which already has lengthy working-capital cycles.
In September of 2025:
• Smart meters account for ₹6.87 billion in receivables.
• The management anticipates discounting ₹2.4 billion.
• They want to cut the number of receivable days to 90.
Because delayed receivables increase reliance on bill-discounting and raise interest costs, investors remain cautious until these collections really show up in cash flows.

*4. The effect of write-offs on margin*
In addition to ₹60 million in further due diligence and other costs, Kaynes wiped off ₹440 million in inventory associated with non-profitable items.
Iskraemeco’s claimed margins were drastically lowered as a result, raising more questions about the validity of the company’s earnings.

*5. Negative free cash flow due to high capital expenditures*
The firm invested around ₹9.5 billion in assets, of which ₹1.7 billion were ROU assets and ₹7.8 billion were PPE/CWIP assets.
Although they anticipate being operating-cash-flow positive, management has previously declared that they do not anticipate being free-cash-flow positive in the near future.
This raises short-term financial strain while promoting long-term growth (OSAT, PCB, and other extensions).

*6. Selling based on momentum*
Stop-loss triggers and panic selling increased the decline when the issues were made public. The market expects evidence, not just explanations, so even after management clarified the disclosures, sentiment has not yet improved.

*What the Management Has Declared*
According to management, all accounting adheres to Ind AS 103.
• Receivables collection in H2 will be robust
• Working-capital days will improve
• Operating cash flows should turn positive
• The standalone reporting discrepancy has been fixed.

Additionally, they indicated that they were prepared to bolster internal controls and potentially hire more reputable auditors.

*Is It Time to Purchase?*
Suggestion: Steer clear of pushy purchasing
Kaynes is now a high-risk, event-driven stock. The commercial prospects are still favorable, but confidence must be restored.

Think about making a purchase solely following one or more of these triggers:
1. The ₹2.4 billion in actual receivables collected or discounted
2. Clearer, more transparent disclosures or validation from the auditor
3. A tendency toward 90 working-capital days
4. Capital expenditures are increasing without a significant increase in debt

*Conclusion*
Trust concerns rather than commercial failure are the primary cause of Kaynes’ demise. The long-term narrative is still intact, but it is wiser to remain cautious or take just modest, closely watched exposure until the firm demonstrates cash-flow improvement and reporting clarity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Torrent Power Q2 FY26: Profit Surges ~50%, Powered by Strong Generation and Lower Finance Costs

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Torrent Power Q2 FY26: Profit Surges ~50%, Powered by Strong Generation and Lower Finance Costs
Equities, Markets, Result Updates - December 6, 2025

Torrent Power Q2 FY26: Profit Surges ~50%, Powered by Strong Generation and Lower Finance Costs

Torrent Power Q2 FY26: Profit Surges ~50%, Powered by Strong Generation and Lower Finance Costs

Torrent Power delivered a robust quarter, driven by better generation earnings and lower financial costs. Consolidated revenue rose nearly 10% YoY and net profit jumped about 50%. Generation and merchant power sales from its gas-based and other power plants boosted income, while stable operations in distribution supported underlying stability. Overall, the quarter reflects strong execution and improving financial health.

*Key Highlights*
* Consolidated Revenue from operations: ₹ 7,876 crore in Q2 FY26 (vs ₹ 7,176 crore in Q2 FY25), +9.8% YoY
* Consolidated Net Profit (PAT): ₹ 724 crore in Q2 FY26 (vs ₹ 481 crore in Q2 FY25), +50.5% YoY
* Generation/ Merchant power sales contribution rose, this was a major factor behind profit jump
* Lower finance cost helped improve bottom-line.

*Revenue & Profit Analysis*
Torrent Power’s top line grew by nearly 10% compared to last year, which suggests stable demand for its electricity generation, distribution, and merchant-sales business.
On the profit side, 50% rise in PAT is impressive, significantly outperforming revenue growth. The main reasons: stronger power generation revenues (especially from merchant sales) and lower finance costs. That shows the company is getting more value from its generation assets and managing its debt-servicing costs effectively.

*Business & Operational Performance*
1. Generation & Merchant Power Sales: This quarter, increased generation from gas-based and other plants and higher merchant sales were key. That contributed substantially to growth in total operating income and PAT.
2. Distribution Business (Power Supply & T&D): Torrent Power continues to have a large distribution footprint (serving multiple cities and regions). While generation drove the jump this quarter, the distribution business provides a stable base and recurring revenue, helping stabilise results over cycles.
3. Renewables & Diversification: The company’s renewable generation and other power-generation lines also contributed to income, supporting overall growth beyond conventional business.

*Strengths and Key Risks to Monitor*
1. Strengths:
* Merchant/ generation sales are high, which boosts margins vs distribution.
* Lower finance cost is benefiting profitability.
* Diversified business mix: generation, distribution and renewables helps absorb fluctuations in any single line.
2. Risks:
* Generation-business profits often depend on fuel costs, merchant-tariff environment and regulatory conditions — any adverse change could hurt margins.
* Distribution business has its own risks (demand patterns, payment receivables, regulatory/tariff pressure).
* As the company grows capacity, depreciation and interest costs may rise, these need to be balanced by sustained utilisation and sales.

*Management Moves & Strategic Signals*
According to recent disclosures, the company is investing to expand generation capacity and continues to explore renewable energy and other long-term projects. The improved performance this quarter reinforces the strategy of balancing generation, merchant sales and stable distribution, giving the company flexibility and income diversification.

*Conclusion*
Torrent Power’s Q2 FY26 results are strong and confidence-boosting. The ~50% jump in profit demonstrates that the company is benefiting from generation assets and effective cost control. Torrent Power is not just a distribution-based utility but a diversified power play with generation, merchant sales, and renewables — which can yield good returns when execution holds. If the company continues to manage fuel costs, maintain high plant utilisation and balance debt repayment with growth, future quarters could deliver further upside.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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RVNL Q2 FY26: Revenue Creeps Up, But Profit and Margins Take a Hit

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RVNL Q2 FY26: Revenue Creeps Up, But Profit and Margins Take a Hit
Equities, Markets, Result Updates - December 6, 2025

RVNL Q2 FY26: Revenue Creeps Up, But Profit and Margins Take a Hit

RVNL Q2 FY26: Revenue Creeps Up, But Profit and Margins Take a Hit

RVNL saw a small rise in revenue during Q2 FY26, but profitability dropped notably. The construction and rail-infrastructure company delivered growth in topline, yet rising expenses and weaker operating margin dragged down net profit. The quarter signals steady work flow (orders and execution), but near-term earnings and cash flow remain under pressure, making it a mixed result, with better clarity needed in coming quarters.

*Key Highlights*
* Revenue from operations: ₹ 5,333.36 crore in Q2 FY26, up +3.8% YoY compared with ₹ 5,136.07 crore in Q2 FY25.
* Quarter-on-Quarter (QoQ) growth in revenue: +28.9% (vs Q1 FY26) reflects some recovery from a soft first quarter.
* Total Expenses: ₹ 5,015.00 crore (↑6.0% YoY, ↑26.2% QoQ), showing that cost pressures increased.
* Profit Before Tax (PBT): ₹ 318.36 crore, down ~21% YoY (from ₹ 404.55 crore last year), but up ~94% QoQ (from ₹ 164.04 crore in Q1 FY26).
* Profit After Tax (PAT): ₹ 230.52 crore in Q2 FY26, down ~19.7% YoY (vs ₹ 286.90 crore in Q2 FY25).
* Earnings Per Share (EPS): ₹ 1.10 in Q2 FY26 vs ₹ 1.38 in Q2 FY25 (YoY decline) but up vs Q1 FY26.
* EBITDA: ₹ 216.9 crore (or ~₹ 217 crore), down ~20.3% YoY; margin fell to ~4.2% (from ~5.6% in Q2 FY25).
* Order-book: The company reportedly has an order book worth around ₹ 90,000 crore, which provides 3–4 years of revenue visibility.

*Revenue & Profit Analysis*
RVNL’s topline grew modestly: +3.8% on a year-on-year basis. On a quarterly basis, revenue saw a healthy rebound, mainly due to pick-up in order execution after a muted Q1. But expenses rose faster than revenue, which squeezed operating margin significantly, EBITDA dropped ~20% YoY, and margin compressed to 4.2%. As a result, although PBT increased from Q1, PAT fell nearly 20% compared with the same quarter last year. This suggests cost dynamics and contract mix (more lower-margin EPC work) weighed on profitability, offsetting stable execution and revenue growth.

*Business & Order-Book Position*
RVNL is the infrastructure-arm of Indian railways: building new lines, doubling/tripling tracks, electrification, railway bridges, metro/ urban-rail projects, etc. As of Q2 FY26, RVNL’s order book is around ₹ 90,000 crore, giving it visibility for the next 3–4 years. About half of these are newer, competitively bid contracts, the rest are legacy railway projects. This backlog is a strong positive: it means even if this quarter was weak, RVNL has enough work lined up that can help revenue over the medium term, provided execution remains on track and cost control improves.

*Areas of Concern*
* Operating margin shrinking: falling to ~4.2% from ~5.6% last year. This indicates cost pressures (raw material, labour, project delays, higher overheads) or a shift towards lower-margin contracts.
* Profit drop despite revenue growth: a nearly 20% fall in PAT shows that topline growth alone isn’t enough, profitability depends heavily on project mix and execution efficiency.
* Negative cash flow trend: some reports suggest cash flow from operations turned negative this quarter, which can raise concerns about working capital and liquidity if it persists.
* Market reaction: following the results, RVNL shares dropped around 3%, indicating investor disappointment with margins and profit drop.

*What Could Help Going Forward*
* Better order execution with focus on higher-margin contracts (metro projects, electrification, rolling stock, O&M, etc.) rather than low-margin EPC. RVNL is expanding into such higher-value segments (rolling stock manufacturing, O&M, non-rail infrastructure) which may improve margin profile in future.
* Working capital and cost management: faster project completion, timely billing and collections and lean overhead can help margin recovery.
* Utilising strong order backlog: with ₹90,000 crore orders waiting, consistent execution and disciplined cost control could turn the long-term outlook positive again.

*Conclusion*
RVNL’s Q2 FY26 results are mixed. On one hand, the company continues to secure and hold a solid order backlog, and revenue showed growth, implying that demand and project pipeline remain intact. On the other hand, profitability and cash flow are under pressure, signalling that cost control, contract mix and execution efficiency need urgent attention. RVNL remains a long-term play on India’s rail and infrastructure push, but near-term performance may remain volatile. The stock could bounce back if management delivers on backlog efficiently and restores margins. Until then, the company presents a case of underlying strength with short-term execution risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Bosch Ltd Q2 FY26: Auto Demand Boosts Sales, Profit Inches Up Despite Higher Costs

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Alkem Labs Q2 FY26: Strong 17% Revenue Growth and Healthy Profit Gains Across India & Global Markets
Health, Markets, Result Updates - December 6, 2025

Alkem Labs Q2 FY26: Strong 17% Revenue Growth and Healthy Profit Gains Across India & Global Markets

Alkem Labs Q2 FY26: Strong 17% Revenue Growth and Healthy Profit Gains Across India & Global Markets

Alkem delivered a good quarter: its total revenue rose 17.2% YoY, led by healthy demand in India and robust international sales. EBITDA grew even faster, up 22.3% on better margins and operating leverage. Net profit rose by 11.1%, delivering a steady bottom line despite global market volatility. Both its domestic and international businesses contributed meaningfully, showing that Alkem’s diversified pharma footprint is working.

*Key Highlights*
* Total Revenue from Operations: ₹ 40,010 million, +17.2% YoY.
* India sales: ₹ 27,660 million, +12.4% YoY.
* International sales: ₹ 11,890 million, +29.5% YoY.
* Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA): ₹ 9,208 million, +22.3% YoY
* EBITDA margin: 23.0% (vs 22.0% a year ago).
* Net Profit (after minority interest): ₹ 7,651 million, +11.1% YoY.
* R&D expenses: ₹ 1,302 million, or 3.3% of total revenue (improved from 4.3% in Q2 FY25).

*Revenue & Profit Analysis*
Alkem’s revenue growth is broad-based: domestic business grew steadily (+12.4%), but international markets showed stronger momentum (+29.5%). This suggests demand from export markets remains robust, and Alkem’s global reach is paying off. EBITDA has grown more than revenue, up 22.3% vs 17.2% indicating that margins improved, likely due to better efficiencies or product mix. The EBITDA margin rose to 23.0%. Net profit rose 11.1%. The smaller rise compared to EBITDA likely reflects depreciation, interest, taxes and other non-operating costs, but overall profitability remains healthy. R&D spend decreased as a percentage of revenue (from ~4.3% to 3.3%), perhaps indicating improved scalability or prioritisation of high-return launches.

*Business Mix: Domestic vs International & Therapy-Level Strength*
1. Domestic Business:
* Domestic revenue contributed ~ 69.9% of total sales in Q2 FY26, down slightly from ~72.8% in Q2 FY25, reflecting relatively stronger growth in the international business.
* According to market-data from IQVIA (SSA), in the acute therapy segment, Alkem became the first company in the Indian Pharmaceutical Market (IPM) during Q2 FY26.
* In six of the important therapy areas: Anti-infectives, Gastrointestinal, Vitamins/ Minerals/ Nutraceuticals (VMN), Pain, Respiratory, Dermatology, Alkem out-performed the broader market by 2–3 times, underscoring strength in core therapy areas.
2. International Business:
* International sales rose nearly 30% YoY to ₹ 11,890 million.
* US sales (key global market) grew 28% YoY to ₹ 7,649 million, a sign that Alkem’s global generics and CDMO business is performing well.
* Non-US international sales also rose 32.4% YoY to ₹ 4,241 million, showing stable diversification into other geographies.

*What Looks Good & What to Watch*
1. Positives:
* Strong revenue growth, especially internationally, showing Alkem’s global business model is working.
* Margin expansion (higher EBITDA margin), indicates efficient operations or better product mix.
* Leadership in domestic acute therapy segment, gives confidence about core India business stability.
* Controlled R&D spend relative to revenue, could mean better capital efficiency or product maturity.
2. Points to Watch:
* Rising global competition and regulatory scrutiny in global generics markets (especially US) could pressure margins or approvals.
* R&D is still modest (3.3%), which may limit innovation or ability to launch novel drugs; long-term growth could need more investment.
* Forex/ global market risks: given a sizable portion of revenue comes from overseas, currency fluctuations or regulatory changes abroad could impact earnings.

*Management Outlook & What’s Ahead*
The company, via its CEO, noted that Q2 FY26 was “another strong quarter,” driven by robust demand across India, the US and other global markets along with healthy new product launches. The company appears confident about leveraging its global footprint, scaling up its international generics and CDMO business, while maintaining its core strength in India. Continued focus seems to be on product launches, operating leverage and market expansion. If Alkem can sustain this dual growth path (domestic and international) and navigate global regulatory/ competition challenges, it could keep delivering solid revenue and margin growth in coming quarters.

*Conclusion*
Alkem’s Q2 FY26 results show a well-balanced, growing pharmaceutical company. The strong growth in revenue and EBITDA, combined with a healthy mix of domestic and global markets, suggests that Alkem is not just riding local demand, it’s building a global presence too. While net profit growth is more modest, the underlying business looks stable and growing. Alkem appears to be a company with good execution, diversified markets, and potential for steady returns, provided global competition and regulatory pressures are managed well.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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AI M&A Heatmap: What Meta’s Manus deal means for Big Tech investors
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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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