GS on Maruti
Target Price Rs19,000 vs Rs18,900 (maintain Buy)
Maruti Suzuki (MRTI) reported an in-line Q2, with revenue/EBITDA up 5%/ 4% vs Bloomberg consensus
The Victoris SUV launch (~4,000 units in the last 8 days of September) is expected to contribute ~5% volume growth in the coming quarters
Off a low base, Maruti expects sub-4-meter cars and compact SUVs to outgrow larger cars in its portfolio over the next 12 months
The company expects to exceed its original +20% export volume growth guidance for FY26E, after achieving +40% in 1HFY26
Goldman Sachs believes the +6% domestic industry volume growth guidance for 2HFY26 appears conservative and expects Maruti to deliver around +11% domestic volume growth in 2HFY26E
Following +20% retail volume growth in October and +90% YoY retail growth during the 38 days since the September 22 GST cuts, channel inventory is now below the normal 1.5-month level
Maruti indicated that 8 new SUV launches between FY26 and FY31 should support its medium-term targets of achieving a 50% volume market share (vs 40.7% in 10MCY25) and 10%+ EBIT margins (vs FY26 GSe at 8.9%)
CITI on Maruti
Remains positive, citing a robust demand outlook supported by strong festive sales and expectations of sustained growth momentum
On exports, Citi notes FY26 volumes could surpass the earlier guidance of 400k units
Citi has raised its EV/EBIT multiple to 28x (from 26x) to reflect a better pricing environment, leading to a higher Target Price of Rs18,900
MS on Maruti
Recommendation Overweight; Target Price ₹18489, Earlier Target ₹18360
Helmets in Car Showrooms Show that Maruti is Expanding the Market
Suzuki is making bold moves to revive and expand the Indian car market
Expand powertrain offerings and use India scale and competitiveness to drive exports
Elara on Maruti
Target Price Rs18,341 vs Rs17,643 (maintain Accumulate)
Maruti Suzuki’s Q2FY26 revenue rose 13% YoY (3% above 1 estimates), driven by higher ASPs and robust EV exports
EBIT margin stood at 8.1% (+10 bps QoQ / -179 bps Yoy), as higher promotional, advertising, and forex costs offset operating leverage gains
Festival sales jumped 89% YoY, with small car volumes up 30% following GST cuts. Market share expanded 90 bps Yoy – the highest among peers
The company targets a 50% market share and 10% EBIT margin by FY31, supported by eight upcoming SUV launches
Exports are up 32% YTD, with over 7,000 e-Vitara units shipped to Europe
Elara expects H2FY26 EBITDA to grow 27% YoY on 10% volume growth and has raised its target price to 18,341, valuing the stock at 28x Dec’27E P/E
CLSA on Vedanta
O-P, TP Rs 580
2QFY26 Ebitda of Rs114bn (+16% QoQ) was in line with consensus.
It guided for FY26 Ebitda of US$6bn+ vs estimate of US$5.7bn (1H: US$2.5bn), driven by higher commodity prices and operational improvement (lower aluminium COP and an uptick in power sales).
Over next couple of years ramp-up of expansion projects and backward integration (largely aluminium, power and zinc) are likely to be key drivers.
Debt at parent Vedanta Resources (VRL) is now well funded, while demerger is guided to be complete by end-FY26
Outcome of the US$2bn bid for Jai Prakash Associates (JPA) will also be key to watch given it is a diversified asset.
CITI on Vedanta
Buy, TP Rs 585
2Q EBITDA rose 16% yoy/15% qoq.
Sequential EBITDA increase is largely attributed to better commodity prices, volumes and FX; offset in part by higher costs.
Parent leverage at comfortable levels, potential medium term aluminium LME upside, volume growth & likely lower costs + likely completion of demerger process by FY26.
Ved is highest bidder for JPA & is keen on power assets.
At this point there are various uncertainties, but if NCLT approves Vedanta’s resolution plan, they are likely to pay Rs37bn ($420m) upfront, and the balance Rs124bn ($1.4bn) over 5 years.
Think Ved will monetize some of assets should they win; are not worried around financial implications.
Nomura on BEL
Neutral, TP Rs 427
Solid 2QFY26 but rich valuations limit upside
Raise FY26F EBITDA/PAT estimates by 2%/1%
Estimate FY25-28F PAT CAGR at 13%; NWC deteriorated
Ordering remains robust but large orders to have larger execution timelines
STK trading at 47x/41x FY27F/FY28F EPS
Jefferies on BEL
Buy, TP Rs 510
Sep Qtr EBITDA was 20% above expectations as both margins and revenues surprised.
1HFY26 margins are 28.8% vs FY26E guidance of 27% and our estimate of 29.6%.
FY26E order flow guidance was maintained at Rs270 bn, rise of 39% YoY, & co has already achieved 55% YTD.
Confidence in 15%+ FY26E revenue growth was reiterated.
BEL is the market leader in domestic defence electronics and benefits from spend across the army, navy and airforce
GS on BEL
Target Price ₹455 (maintain Buy)
Q2FY26 performance surpassed our and consensus estimates
FY26 guidance kept unchanged on various parameters: a) Revenue growth of 15% YoY; b) EBITDA margin of 27%; c) Order inflow of ₹27,000 crore (including QRSAM at ₹57,000 crore); d) Capex of 1,000 crore; and e) R&D spend of ₹1,600 crore
Likely order inflow of ₹30,000-35,000 crore p.a.; aiming to transition to the role of systems provider in the Advanced Medium Combat Aircraft (AMCA) program
Targeting the proportion of revenue from exports at 10% in the long term, and investment of 1,400 crore in phase 1 of the integrated defense manufacturing complex in Andhra Pradesh
Going ahead, GS expects EBITDA margin at 26-27% over the next three years and EPS CAGR at 14% (FY25-FY28E)
Additionally, it sees developments around QRSAM, Project Kusha, and AMCA platforms as key catalysts for the BEL stock
HSBC on BoB
Buy, TP Raised to Rs 340
2QFY26: Broad-based sequential loan growth, NIM expansion and asset quality performance were key positives
Incrementally, its operating performance will likely remain healthy with an upside risk from better asset quality
Raise FY26-28e EPS estimates by 5-7%
CLSA on BOB
O-P, TP Rs 325
A 7% PBT beat driven by a 4% NII and 24% provisions beat.
Overall, it was a good quarter for the bank driven by largely stable adjusted NIMs (vs expectation of a 8-9bps decline) & better-than-expected asset quality metrics as well
Loan & deposit growth of 10-12% YoY were in line with trend in prior quarters.
Credit cost of 40bps and slippage ratio of 1% were lower YoY & also lower than expectations
On not-so-good front were fee income and CASA.
Fee income was flat YoY, despite 12% loan growth, while CASA ratio moderated 90bp QoQ
CITI On BoB
Buy TP Rs 350
Q2 PAT at Rs48bn (RoA of 1.1%) comfortably beat CitiE by 8%.
NII grew 5% YoY, which, aided by interest on an IT refund, fueled a 5bps QoQ NIM expansion to 2.96%.
This combined with flat opex and low 40bps credit cost, underpinned PAT beat.
Prudently created Rs4bn in floating provisions for the future ECL framework.
Robust 8.5% QoQ surge in corporate advances and sustained RAM traction drove loan growth of 6% qoq.
Absence of overseas slippages and improvements in MSME and retail (incl PL) contained slippages at 1%
Expect FY26 NIMs to settle at 2.85% & are lowering credit cost est.
Nomura on BoB
Upgrade to Buy, TP Raised to Rs 320
Strong growth and benign asset quality beat estimates;
Strong performance across parameters: NIMs, credit cost and opex
Loan/deposit growth picked up; slippages under control
Stock trades at an inexpensive valuation of 0.9x Sep-27F BVPS
Expect average ROA/ROE of 1.0%/13.7% over FY26-28F
Investec on Bank of Baroda
Recommendation Buy; Target Price ₹325, Earlier Target ₹250
Strong growth and RoA delivery
NII led PPOP beat, lower credit costs help deliver robust RoA
Healthy Loan growth driven by Retail and Agri, TD and CA lead deposit growth
Robust asset quality, GNPA/NNPA continue to improve
CLSA on Shriram Fin
O-P, TP Rs 840
Reported a slight beat of 2QFY26 PAT estimate, supported by lower credit costs.
AUM grew c.16% with 8% disbursement growth, led by strong gold loan traction (+31%) and steady CV/PV growth (c.14%–15%).
Its margin improved c.10bps QoQ on a lower cost of funds, with further benefit expected as excess liquidity declined in late September.
Asset quality remained broadly stable with GS3 at 4.6% and credit costs at 1.9%, below its guidance
Co announced leadership changes, with current MD & CFO, Mr. Parag Sharma, set to take over as MD & CEO, alongside appointment of two new COOs & a CSO from within its senior team
MS on Shriram Fin
OW, TP Rs 785
Credit costs of 1.93% (+1bp QoQ, -14bp YoY) beat MSe of 2.3%, driving the 8% PAT beat to MSe.
PPOP was in line with MSe
Assess stressed asset formation is down to 1.1% TTM AUM (annualized) from 4.4% in 1Q and 2.7% in 2QF25 (Exhibit 1).
Stage 2+3 assets are lower at 11.5% in 2Q vs 11.8% in 4Q and 11.9% in 1QF25.
Total provision cover on stage 3 assets improved to 127% from 125% in 1QF26.
NII miss of 1% was offset by lower operating costs (flat QoQ, +12% YoY). Hence, PPOP was in line
Jefferies on BPCL
Buy, TP Rs 430
EBITDA was 12% above JEFe on strong refining & marketing inventory gains.
Govt’s compensation for LPG losses will boost earnings over 2HFY26-FY27.
Marketing profitability has weakened somewhat in 3Q, and inventory losses are likely.
Large capex in refining and petchem would drag RoCE.
Earnings outlook is strong on range bound crude given OPEC supply.
Valn is most favorable among peers; raise FY26/27 estimates by 25%/23%
Nomura on BPCL
Buy, TP Raised to Rs 470
Strong 2Q led by robust refining GRMs
LPG’s loss recovery to help cash flows for upcoming capex cycle
Raise FY26F EBITDA by 17% to account for higher than expected refining margins trend amid strong outlook for diesel crack
Stock currently trades at 5.2x FY27F EV/EBITDA and 1.4x P/B, both below historical averages
CLSA on BPCL
Hold, TP TRs 330
2Q PAT missed forecast, as had assumed a one-time booking of the recently approved LPG subsidy reimbursement; the company will recognise it gradually under the monthly disbursement schedule starting November.
Adjusting for this, reported PAT was 8% below est. even as its refining margin beat was more than offset by significant underperformance on marketing margins.
Jefferies on GAIL
Buy, TP Rs 210
Ebitda was 15% ahead of JEFe led by trading with transmission inline.
Mgmt lowered tx vol guidance 2% each for FY26/27 indicating y/y decline this fiscal.
While that is a drag, a likely tariff hike of 10% cld add 11% to fair value
Lowered Ebitda 6%/2% resp for FY26/27E on weakness in transmission, petrochem and LPG
Remain constructive on expectation of recovery in transmission volume and higher tariff in FY27E.
Nomura on GAIL
Buy, TP Rs 223
Soft 2Q, largely in line with est. as strong marketing margin offsets lower transmission margin
FY27 transmission volume guidance intact; tariff hike expected any time
Believe STK trades at attractive valuations of 9.6x FY27F P/E and 1.2x FY27F P/B
CITI on GAIL
Buy, TP Rs 215
2QFY26 EBITDA at Rs32bn (-4% qoq) was ahead of estimate, aided by strong gas trading performance & with gas transmission volumes also showing modest recovery; petchem performance, however, remained subdued.
Mgm’t reiterated its guidance for gas trading profitability (we concur), lowered its guidance for gas transmission volumes & remains confident on their tariff hike expectations (with potential upsides due to NPV impact)
Are encouraged by granularity provided on gas trading, which should boost investor comfort, & also by upcoming commissioning of new pipelines, which should aid volume growth even if all else stays equal.
Jefferies on GCPL
Buy, TP Rs 1400
GCPL reported a weak 2Q with GST (rate cut) pressure in India esp in soaps & weather issues in HI, although volume growth at 3% was ahead of JEFe.
Indo business also witnessed pressures on revenues & Ebitda while Africa was strong (partially FX-led).
Mgmt expects a pick-up in growth ahead with better margins in India while Indo pressures will likely continue.
GCPL has also announced a small acquisition of Muuchstac brand (men’s face wash).
HSBC on GCPL
Buy, TP Rs 1440
2Q was relatively weak due to GST (3-4% India business impact) & Household insecticides due to adverse weather
EBITDA margins to recover in H2FY26E on expected lines; GCPL acquired D2C brand Muuchstac for cINR4bn
Adjust earnings lower but growth outlook strong in H2; HI recovery key to performance
GS on GCPL
Rating: Buy , Target Price: 1,425 (vs 1,375 earlier)
GCPL’s consolidated EBITDA declined 3.5% YoY (~2% below GSe). Consolidated revenue grew 4.3% YoY, largely in line with GSe
The quarter was adversely impacted by GST transition headwinds in India, which are expected to reverse going forward
Management maintained guidance of high single-digit volume growth for FY26, implying double-digit volume growth in 2H. This appears achievable given that GCPL’s volume growth excluding soaps was in double digits in 1HFY26, while soaps declined in high single digits
GCPL has signed a definitive agreement to acquire the “Muuchstac” brand, a leading men’s face wash brand
The company plans to grow the brand through offline distribution expansion and by listing it on modern trade and quick commerce platforms
Management stated that it expects the acquisition to be EPS accretive within a year
Jefferies on ACC
Buy, TP Rs 2170
Reported EBITDA beat at Rs8.5bn, up 94% YoY (JEFe: Rs5.8bn)
Vols grew 16% YoY.
Unit EBITDA surprised positively at Rs845, higher cRs110 QoQ.
Reported PAT beat at Rs11.2bn (est: Rs2.9bn) on higher Other Income, & tax reversal; adj PAT at Rs4.6bn (+96% YoY).
Costs particularly surprised positively on Oplev, group synergies & synergies with parent Co and mgmt expects cost trend to improve further.
CITI On ACC
Buy, TP Rs 2750
2Q EBITDA was up 2x yoy (up ~9% qoq) on higher volumes (+16%), realizations (+8%) and stronger RMC profitability; offset in part by slightly higher costs.
EBITDA/t of cement: Rs845 vs. Rs735 in 1Q and Rs505 last year.
Realizations were up 2% qoq (most industry players have reported a decline; some of this attributed to premiumization – currently at 47% of trade volumes vs. 41% in 1Q
CITI on Aptus Value Housing
Citi notes that AUM growth has slowed, with overall growth momentum moderating
Management, however, remains optimistic about regaining disbursement traction in the coming quarters
Citi has cut AUM growth estimates to 23-25% over FY26-28 (vs. 26-27% earlier), penciling in slower medium-term growth
Maintain Neutral, revised Target Price Rs350
MS on Aptus Value Housing
Target Price Rs420 vs Rs435 (maintain Overweight)
Aptus reported a 3% PAT beat versus Morgan Stanley estimates (MSe), driven by higher assignment income
EPS has been cut by 2-4% for FY27-28 due to lower loan growth, NIM, and higher credit costs; target price reduced by 3%, while maintaining an Overweight rating
FY25-28 loan CAR has been trimmed to 22.5% as Aptus exits sub-Z0.7 million ticket-size loans, though the medium-term 25% growth guidance remains intact
Credit cost rose to 50 bps (vs 44 bps) due to a one-time impact from the shift to 500-dpd write-offs and is expected to normalise in Q3
NIM cut by 15 bps to an average of 10.9%, with lower spreads offset by stronger assignment income (targeted at 6-7% of AUM)
Morgan Stanley forecasts ROA of 7.4% and ROE of 20.6% by FY28, with an FY25-28 EPS CAR of 19% – the highest and most attractive within the peer group (2.8xP/B, 15xP/E)
CITI on JK Cement
Maintain Buy | Target Price Rs7,275 (earlier Rs7,600)
Citi notes that higher-than-expected costs and lower realisations weighed on Q2 performance
However, the brokerage maintains a positive view, citing strong medium-term growth visibility despite near-term margin pressures
GS on Pidilite
Target Price Rs1,700 (maintain Buy)
Pidilite reported consolidated revenue and EBITDA growth of 9.9% and 10.7% YoY, respectively – both broadly in line with Goldman Sachs and consensus estimates
Volume growth improved to 10.3% YoY in Q2FY26 (vs 9.9% YoY in QIFY26). On the earnings call, management expressed confidence that double-digit volume growth should continue in 2H
During the quarter, rural demand continued to outpace urban demand, driven by deeper penetration, while urban demand also showed sequential improvement
VAM consumption price for the quarter was at USD 883 (vs USD 980 last year). Management expects VAM prices to remain benign under USD 900 over the next 12 months, and indicated that raw material gains will continue to be reinvested to drive growth
Advertising and sales promotion (A&SP) spends were stepped up during the quarter, and management stated it will judiciously increase A&SP investments going forward as well
GS believes consolidated EBITDA margins for FY26 will likely be at the higher end of the company’s earlier guided range of 22-24%
GS on Dr Lal Pathlabs
Rating: Sell; Target Price: ₹2,900 (vs ₹2,750 earlier)
Dr Lal PathLabs’ Q2FY26 sales and EBITDA grew 11% YoY each, largely in line with Goldman Sachs’ estimates, driven by test volume growth. EBITDA margin stood at ~30.7%, also in line, and improved QoQ due to seasonal factors.
The company reiterated its FY26 guidance – revenue growth of 11-12% and margins in the 27-28% range with continued investments in network expansion, infrastructure, and front-end sales force, which are expected to keep costs elevated in H2.
Goldman Sachs has cut FY26-28E EPS by ~1% to reflect Q2 results and updated management commentary.
The brokerage noted that current valuations at 29x FY27E EV/EBITDA appear expensive versus an estimated 11% EBITDA CAGR (FY25-28E)
Nuvama on CDSL
Rating: Buy; Target Price: 1,840 (vs 1,780 earlier)
Sequential growth was driven primarily by stronger IPO/corporate action charges (+195.2% QoQ) and online data charges (+48.4% QoQ)
Higher-than-estimated staff and technology costs were offset by lower other expenses, resulting in an EBIT margin of 50.7% (-765 bps YoY / +612 bps QoQ) and EBIT of 162 crore (-14.0% YoY / +40.2% QoQ)
A lower tax rate of 23.2% boosted APAT to ₹140 crore (-13.5% YoY / +37.0% QoQ)
Nuvama has raised FY26E/27E/28E APAT estimates by 2.2%/1.1%/2.0%, and rolled forward valuations to Sep-27E, arriving at a target price of ₹1,840 – implying FY27E/28E P/E of 61.2x/50.8x
Nuvama on Spandana Sphoorty
Rating: Hold; Target Price: ₹260
Spandana reported net and operating losses in Q2FY26 but showed gradual recovery across disbursals, operating expenses, and collection efficiency (CE) (CE)
Disbursals rose sharply QoQ from 280 crore to ₹930 crore, though still below Q2FY25 levels. Given lower-than-normalised disbursals, AUM declined 18% QoQ, while NII fell 19% QoQ
X-bucket CE improved to 98.8% in Sep-25 (vs 98% in Jun-25). Operating expenses fell 10% QoQ. Credit cost dropped 39% QoQ but remained elevated, including a ₹90 crore write-off. PAR30-90 improved to 3.9% from 7.9%
With improving cost control and early signs of AUM growth, management guided for a return to operating profit in the coming quarters, after the operating loss in Q2
Nuvama on Balkrishna Ind
Rating: Hold; Target Price: ₹2,500 (vs ₹2,700 earlier)
Q2 revenue fell 6% YoY to ₹2,320 crore 2% below estimates – due to lower realisations
EBITDA declined 19% YoY to ₹500 crore, 12% below estimates, impacted by an adverse product mix and costs related to sourcing EUDR-compliant natural rubber
BIL is entering the competitive and lower-margin TBR and PCR segments with a capex of ~3,000 crore, potentially posing a rolling resistance to profitability
The company continues to face weak demand conditions in overseas markets, with recovery expected to be gradual
Additionally, the volume mix remains unfavourable due to an increased share of domestic sales
Factoring in lower volume and margin assumptions, Nuvama has trimmed FY26-28E EBITDA estimates by 4-9%
Maintains ‘HOLD’ with a target price of ₹2,500, based on 27x Sep-27E EPS
MS on Urban Company
Recommendation Underweight; Target Price ₹119, Earlier Target ₹117
Q2FY26: In-line performance
Key operating metrics such as NTV/annual transacting customers (ATU) were marginally ahead of estimates
Growth acceleration in core India consumer ex Insta
Jefferies on Auto Sector
A Strong October for Auto Wholesales
Indian auto OEMs delivered good wholesale volume growth in Oct, except for HYUNDAI
Estimate that the PV industry wholesales grew ~17% YoY, tractors rose ~10% and trucks grew ~8%
With a strong festive season post GST cuts, Oct registrations grew 52% YoY for 2Ws and 15% for PVs
BofA on Autos
Oct dispatches drive in fast lane; Sustainability holds the key
FY26 a year of two halves; October brings in festive boost
PVs: Solid October as expected; M&M & Tata beat, Maruti in line
2Ws: TVS/Eicher fare in line; Retails on a high in October
Tractors remain in fast lane, LCVs see a boost on GST
Jefferies on Cement
Cement: Price Softness Amid Festive Period/Extended Monsoons
Cement price was lower by 1% MoM in October; YTDFY26 price higher 5% YoY vs our FY26 est of +4%
QTD avg appears soft at 1.5% QoQ decline, as cap on near term pricing increase
Demand softness around festive has weighed negatively on seasonal price growth
Build modest Q4 price recovery amid demand recovery
Jefferies on Phoenix Mills
Recommendation Buy; Target price ₹ 1980
Q2 Shows Signs of Consumption Revival
Resi, Palladium Mumbai provide boost to P&L
GST cuts driving consumption uptick
Mall rejuvenation boost visible from early ‘26
GS on United Spirits
Target Price ₹1,675 vs ₹1,575 (maintain Buy)
USL has seen a significant expansion of 190 bps in gross margins in Q2FY26, following strong expansion in Q1FY26 as well
The company stated that the key driver is benign input costs such as extra neutral alcohol and glass. This tailwind could continue in 2HFY26, and hence gross margin expansion is expected to sustain
USL maintained its guidance for 10% revenue growth in the Prestige & Above segment. Goldman Sachs is building in 7% net sales growth for FY26, which is below management guidance
Management admitted that delivering strong growth in 2H will be challenging but reiterated its focus on achieving the stated Guidance.
It also noted that the Maharashtra business will remain a challenge in 2HFY26 due to the impact of the 30%+ liquor tax hike implemented in July 2025
Increasing EPS estimates for FY26/27/28 by 5.2%/3.6%/3.5%, respectively, to factor in stronger-than-expected gross margins driven by benign input costs
