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

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

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

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

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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Ambuja Cements Q2 FY26: Volume & Margin Drive Deliver a Strong Surge
Equities, Markets, Result Updates - November 25, 2025

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

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

Ambuja Cements delivered a standout quarter, with a ~20% YoY rise in volumes, healthy revenue growth and margin expansion, leading to a sharp jump in profit. Revenue hit ~₹9,174 crore (+21.5% YoY), cement sales volumes reached 16.6 million tonnes (+20% YoY) and EBITDA margin expanded to ~19.2% (+4.5 pp YoY). Consolidated PAT surged to ~₹2,302 crore (+364% YoY), helped partly by non-recurring items (tax provision reversal). The company has raised its FY28 capacity target from 140 MTPA to 155 MTPA, signalling both growth ambition and confidence in demand.

*Key Highlights*
* Volume (cement sales): 16.6 million tonnes in Q2 FY26 (+20% YoY), highest ever in Q2 series.
* Revenue from operations (consolidated): ~₹9,174 crore (+21.5% YoY)
* EBITDA: ~₹1,761 crore (+58% YoY) and EBITDA per tonne: ~₹1,060 (+32% YoY)
* EBITDA margin: ~19.2% (+4.5% points YoY)
* Consolidated PAT: ~₹2,302 crore (+364% YoY)
* EPS: ~₹7.14 (+266% YoY)
* Cost reductions: Kiln fuel cost down ~2% YoY and power cost down ~6% YoY
* Capacity expansion: FY28 target raised to 155 MTPA (from 140 MTPA) via debottlenecking (capex ~USD 48/MT)

*Revenue & Profit Analysis*
Revenue growth of ~21.5% YoY to ~₹9,174 crore reflects strong demand and good pricing. Volume growth (+20% YoY) was a major driver, complemented by improved realisation and premium product mix (premium cement share ~35% of trade sales).
Profit grew disproportionately higher (+364% YoY) to ~₹2,302 crore, but this included a tax‐provision reversal of ~₹1,697 crore which significantly boosted the bottom line.
Thus, while underlying operations are improving (volume, margin), the exceptional item means profit growth is not purely organic. EBITDA margin expansion to ~19.2% (+4.5 pp) indicates cost discipline and premiumisation working. The company has also improved cost of sales via fuel/energy initiatives (fuel & power cost reductions).

*Segment/ Operational Performance*
* Volumes & Mix: Cement sales at 16.6 million tonnes (+20% YoY), the highest ever for Q2 in the company’s history. Premium cement (higher margin product) saw faster growth (28% YoY) and its share improved.
* Cost Efficiency: Kiln fuel cost reduced ~2%, power cost reduced ~6%. Direct dispatch (which lowers logistics cost) increased by 5% points to 59%.
* Expansion & Capacity: The company raised its FY28 target capacity to 155 MTPA (up 15 MTPA) via debottlenecking initiatives which implies growth without heavy new capex.

*Risk & Outlook Considerations*
While the operational momentum is strong, the reliance on tax reversals for profit growth warrants caution. The company’s cost‐target (exit FY26 cost ~₹4,000 per MT) and aim for ~₹3,650 per MT by FY28 suggest margin improvement is part of the journey ahead. Demand risk (monsoon headwinds, housing/ infrastructure slowdowns) remains a factor.

*Conclusion*
Ambuja Cements’ Q2 FY26 results are impressively strong, with volume growth ahead of the industry, margin expansion and a sharply improved earnings line. The premium‐cement push and cost discipline show operational maturity. Key factors to keep an eye on include whether sustained margin improvement continues without relying on tax‐provision benefits, how well the expansion to 155 MTPA unfolds and whether demand remains strong in the second half given macro risks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve

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IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve
Markets, Real Estate, Result Updates - November 24, 2025

IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve

IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve

IndiQube delivered a strong Q2 FY26, showing that its workspace business is not just growing in size but also becoming financially stronger. The company added more centres, improved occupancy and reported higher revenue and profit, backed by steady recurring income from long-term clients. This quarter clearly shows IndiQube moving from rapid expansion to a more stable, scalable and cash-generating phase of its business.

*Headline numbers*
* Revenue (Q2 FY26): ₹354 Cr, +38% YoY
* EBITDA (Q2 FY26): ₹75 Cr, EBITDA margin 21%
* PAT (Q2 FY26): ₹28 Cr, PAT margin 8%
* H1 FY26 Revenue: ₹668 Cr (highest-ever half-year)
* H1 EBITDA: ₹139 Cr, H1 PAT: ₹47 Cr
* Operating cash flow (H1 FY26): ₹151 Cr, +138% YoY

*Key operational metrics*
* Area under management (AUM): 9.14 Mn sq.ft., increase of ~1.3 Mn sq.ft. YoY
* Seat capacity: ~203k seats (added ~30k seats YoY)
* Portfolio: 125 properties across 16 cities, 22 new centres added YoY
* New cities added this quarter: Indore, Kolkata, Mohali
* Portfolio occupancy: 87% (portfolio-level)

*Understanding the quarter at a glance*
1. Top-line growth is real and recurring: Revenue jumped 38% year-on-year to ₹354 Cr, and management stresses that ~96% of H1 revenue is recurring. It isn’t just one-off leasing but it’s regular cash flow from customers.
2. Margins Strengthen as the Business Scales: EBITDA rose sharply to ₹75 Cr, delivering a 21% margin in Q2, a meaningful step-up from prior periods. Improved utilization (87% occupancy) and larger enterprise deals are feeding both topline and margin expansion.
3. Profits becoming consistent: PAT is ₹28 Cr (8% margin) for the quarter. The company reports PAT growth of more than 3x vs prior year quarter in its presentation, reflecting the benefits of scaling up and managing costs more efficiently.
4. Cash flow is catching up: Operating cash flow for H1 FY26 rose to ₹151 Cr (+138% YoY). For a capital-light, recurring-revenue business, improving cash generation reduces financing risk and supports measured expansion.

*Key wins this quarter*
* Large enterprise leases closed this quarter include a 1.4 lakh sq.ft. lease in Bengaluru to a global asset manager and a 68,000 sq.ft. Design & Build project in Hyderabad for a large automaker, both mark IndiQube’s product fit with big, stable corporate customers.
* Company now has a CRISIL ‘A+’ (Stable) credit rating, useful signal for institutional counterparties and lenders.

*Future Outlook*
* Lower execution risk, higher predictability: With nearly all revenues recurring and strong occupancy, growth becomes more visible. Management’s emphasis on large enterprise customers improves stickiness and reduces churn risk.
* Room to scale profitability: The combination of rising occupancy, higher ticket enterprise deals and leverage in fixed costs suggests margins can improve further as the portfolio grows.
* Capital & credit profile improving: Operating cash generation and an A+ rating reduce the need for dilutive capital and make balance-sheet financing easier. It is also helpful if IndiQube wants to expand to more Tier-II/ III cities.

*Risk factors*
* Execution in new cities: Entering Indore, Kolkata and Mohali expands reach, but new-city economics (leasing speed, local demand) must be scrutinised.
* Customer concentration: While securing large enterprise clients is beneficial, dependence on a concentrated customer base introduces risk if any major client exits.

*Conclusion*
Q2 FY26 looks like a milestone quarter for IndiQube: strong double-digit top-line growth (₹354 Cr, +38% YoY), healthier margins (21% EBITDA) and positive PAT (₹28 Cr), supported by rising occupancy (87%), large enterprise wins and materially better operating cashflow (H1 CFO ₹151 Cr). The company is shifting from rapid expansion to focusing on scaling and earning more from its existing portfolio. If this sustains, it should lead steadier earnings and healthier balance sheet.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Groww Q2 FY26: Profit Growth Amid Revenue Pressure

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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Alkem Labs Q2 FY26: Strong 17% Revenue Growth and Healthy Profit Gains Across India & Global Markets
Equities, Markets, Result Updates - November 22, 2025

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

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

Apollo Hospitals delivered a strong performance in Q2 FY26, with growth visible across core healthcare services, digital health initiatives and its distribution businesses. The quarter reflects not just operational stability, but also the benefits of scale, cost discipline and more predictable performance across business lines.

*Headline Performance*
* Revenue from operations: ₹63,035 million (vs ₹58,421 million in Q1 FY26)
* Other income: ₹547 million
* Total income: ₹63,582 million
* Profit before tax: ₹7,787 million
* Profit after tax: ₹5,508 million
* PAT attributable to owners: ₹5,424 million
* PAT attributable to non-controlling interest: ₹84 million

*Revenue Momentum Driven by Hospitals & Adjacent Businesses*
Apollo recorded ₹63,035 million in revenue from operations during Q2 FY26, up from ₹58,421 million in Q1 FY26 and significantly higher than ₹55,893 million in Q2 of the previous year. Two factors stood out:
* Consistent footfall and occupancy recovery in its hospitals.
* Growing contribution from pharmacy distribution and digital businesses, which continue to scale as part of the larger healthcare ecosystem.

*Cost Structure: Showing Operating Leverage at Scale*
Apollo’s total expenses for the quarter stood at ₹56,898 million, driven by the following major components:
* Cost of materials consumed: ₹7,787 million
* Purchases of stock-in-trade: ₹24,647 million
* Employee benefits expense: ₹13,521 million
* Finance costs: ₹1,096 million
* Depreciation and amortisation: ₹2,178 million
* Other expenses: ₹13,521 million
These figures show a disciplined cost structure. The key takeaway is that revenue grew faster than costs.

*Profitability: Strong Expansion Across Metrics*
1. Profit Before Tax: Apollo posted a PBT of ₹7,787 million in Q2 FY26, above ₹7,443 million recorded in Q1 FY26 and ₹7,401 million in Q2 FY25. Despite rising scale and ongoing expansion, the company continues delivering healthy profitability.
2. Profit After Tax: PAT for the quarter stood at ₹5,508 million, of which ₹5,424 million was attributable to owners, with ₹84 million accruing to non-controlling interests. This is a notable improvement over ₹4,469 million in the previous quarter and ₹3,902 million in the same quarter last year.

*Balance Sheet Strength*
On the consolidated balance sheet (as of 30 September 2025):
* Total assets: ₹219,500 million
* Total equity: ₹95,534 million
* Equity attributable to owners: ₹90,933 million
* Total liabilities: ₹123,967 million
* Long-term borrowings remain stable at ₹44,832 million, with lease liabilities at ₹25,035 million.
* Trade receivables increased to ₹34,648 million and inventory levels grew moderately to ₹5,054 million, indicating activity expansion across service lines.
* Cash and cash equivalents stood at ₹4,884 million.

*Segment & Operational Insights*
Although Apollo reports a single segment (Healthcare Services), the numbers and cost structure suggest:
* Hospitals remain the primary profit engine, mainly benefiting from occupancy recovery.
* Pharmaceutical distribution continues to scale, evident in stock-in-trade purchases (₹24,647 million).
* Digital and analytics investments support long-term growth and future integration plan.
* Depreciation at ₹2,178 million hints at consistent capex into infrastructure and technology.

*Future Outlook: A Constructive Trajectory*
Based on Q2 FY26 performance, Apollo’s outlook appears strong:
1. Continuous Scale-Up Across Verticals: The company is expanding hospitals, strengthening digital operations and deepening its omni-channel health offerings.
2. Stable Profitability Even Through Expansion: Apollo’s ability to maintain strong margins while expanding capex demonstrates operational discipline.
3. Demerger & Strategic Restructuring: The new restructuring plan with Apollo Healthco, Keimed and Apollo Healthtech will help the company bring out more value from its pharmacy and digital businesses.
4. Strong Cash Flows Expected: With revenues rising and costs stabilising, Apollo is well-positioned to generate stronger operating cash flows in the coming quarters.

*Conclusion*
Apollo Hospitals’ Q2 FY26 results is maturing in efficiency, scale and financial discipline. Revenue momentum, strong PAT growth, cost control and balance sheet stability signal to a business operating with confidence. The quarter underscores Apollo’s transition from a hospital chain into a comprehensive healthcare platform, one that is expanding steadily across clinical services, digital health and distribution.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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BHEL Posts Strong Q2 FY26 Comeback as Profit Rebounds

 

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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