Solara Q2FY27

Hard Work vs Smart Work

Q2FY27 CONCALL SNIPPET SECTOR WISE

BANKS

Punjab & Sind Bank (PSB) — Raised
- Advances growth FY27: 18–20%, raised from 16–18%.
- Q2 advances growth: 19.3%.
- Deposit growth FY27: 13–14%, kept.
- Q2 deposit growth: 13.0%.
- Gross NPA by Mar-27: <2%, kept.
- Q2 Gross NPA: 2.09%.

Yes Bank — Kept
- RoA FY27 exit: ~1%, kept.
- Guidance partly based on non-core.
- Stock -3.5% after Q1.

Union Bank — New
- Written-off recovery FY27: ~₹3,000 Cr target.
- Target based on H1 run-rate.
- Capital raise FY27: ₹8,000 Cr.
- Capital raise is board-approved.

Bajaj Finance — Kept
- New customers FY27: 18–20 million.
- Gold-loan branches FY27: 2,700–2,800.
- Opex/NTI FY27 improvement: 25–40 bps, new.
- Stock +8.9% after Q1.
- Q2 call pending.

Piramal Finance — Kept
- AUM growth FY27: 25%.
- Q2 AUM growth: 24%.
- PAT growth FY27: 50%.
- RoAUM exit Q4: 2.5%.
- Q2 RoAUM: 2.0%.

M&M Financial — Kept
- Loan growth: 16–18%, medium term.
- Core growth: +21%.
- RoA: 2.2–2.5%.
- H1 RoA: 2.3%.
- Credit cost FY27: 1.3–1.7%.
- Stock +16.6% after Q1.

Aye Finance — Kept
- AUM growth FY27: 25–30%.
- Q2 growth: 26.0%.
- Credit cost FY27: 3.5–4.0%.
- Q2 credit cost: 3.82%.
- RoTA FY27: 4.0–4.5%.
- Q2 RoTA: 4.04%.
- Q2 call pending.

TELECOM & TECH

HFCL — Raised
- Revenue growth FY27: ≥80%.
- Earlier guidance was ~40%.
- ₹10,000 Cr revenue target: Pre-FY29.
- Earlier target was by FY29.
- Defence revenue FY27: ~₹500 Cr, kept.
- Revenue guidance raised twice: 20% → 40% → 80%.

L&T Technology Services (LTTS) — Kept
- EBIT margin: Mid-16%.
- Q2 EBIT margin: 16.3%.
- Revenue CAGR: 13–15% over next 3–5 years.
- Long-term EBIT margin: 16–17%.
- Stock +7.0% after Q1.

Waaree Renewable — Kept
- Order book to revenue: ₹5,500 Cr, new.
- Conversion expected over next 3–4 quarters.
- EBITDA margin FY27: >15%, kept.
- Objective approximately 15%.
- Stock -8.0% after Q1.

CONSUMER & LEISURE

Indian Hotels (INDHOTEL) — Raised
- Revenue growth FY27: 15–17%.
- Earlier guidance: 12–14%.
- H1 revenue growth: ~18%.
- Portfolio target: 700 hotels before Mar-27.
- Earlier target was by 2030.
- Current portfolio: ~390 hotels.
- Hotel segment FY27 growth: 17–19%, new.

Vishal Mega Mart (VMM) — Raised
- FY27 store openings: >100.
- Earlier guidance: 80–100.
- FY27 SSSG: ≥10%, new.
- Q3 requires >10% SSSG.
- Stock -4.8% after Q1.

Mahindra Holidays (MHRIL) — Kept
- Gross key additions FY27: ~1,000.
- Expected over next two quarters.
- Room inventory FY30: 10,000 keys.
- 85% of funnel visible.
- Stock -4.0% after Q1.

IGI (International Gemological Institute) — Raised
- Revenue growth FY27: ~27%.
- Earlier guidance: ~15%, "like H1".
- H1 revenue growth: +27%.
- EBITDA growth FY27: ~34%.
- Earlier guidance: ~20%, "like H1".
- H1 EBITDA growth: +34%.
- FY27 expected to track H1.

Eternal — Kept
- Blinkit NOV/store/day: ~₹11 lakh.
- Steady-state guidance maintained.
- Margins guided flattish for 1–2 years.

PC Jeweller — New
- Large-format showrooms: Up to 100.
- Timeline: Next 12–18 months.
- First openings guided this FY.

REALTY

Sobha — Kept
- Pre-sales growth FY27: ≥30%.
- Management hopes to exceed guidance.
- H1 pre-sales growth: +47%.
- PAT growth FY27: ≥50%, new.
- EBITDA margin: ~20%+, new.
- Margin expected to stabilise from H2.
- Q2 EBITDA margin: 11%.

Marathon Nextgen — New
- Pre-sales FY27: >₹1,000 Cr.
- FY26 pre-sales: ~₹1,000 Cr.
- Inventory to launch: ~₹10,000 Cr.
- Launch pipeline over next five years.
- No Q2 call yet.

CEMENT, METALS & INDUSTRIALS

UltraTech Cement — Kept
- EBITDA/tonne target: ₹1,400.
- Target timeline: Exit FY28.
- FY27 capex: ₹10,000 Cr.
- Net debt/EBITDA Mar-27: <1x.
- September net debt/EBITDA: 1.26x.
- Stock +3.1% after Q1.

Hindustan Zinc — Raised
- Zinc cost FY27: $825–850/tonne.
- Earlier guidance: $975–1,000/tonne.
- Q2 zinc cost: $703/tonne.
- Silver output FY27: 680 tonnes, kept.
- H1 silver output: 321 tonnes.
- Mineral exploration completion: Q3 FY29, new.
- Lower cost guidance supports better margins.

Gallantt Ispat — Kept
- New-capacity utilisation: 85–90%, new.
- Expected within ~6 weeks.
- Captive iron-ore gain: ~₹2,000/tonne.
- Benefit expected from FY28.
- Iron-ore blocks live: FY28, kept.
- Stock +15.8% after Q1.

Kross Ltd — Mixed
- EBITDA margin: 14–15%, softened.
- Q2 EBITDA margin: 13%.
- No timeline for margin target now.
- Export growth FY27: +45%, kept.
- H2 vs H1 revenue: +10–15%, new.
- Stock -5.0% after Q1.

LMW — New
- Unit III capacity addition: +125/month.
- Expected by December 2026.
- Current utilisation: 90%.
- Unit III capex: ₹10 Cr.
- Capex funded through internal accruals.

ORDER BOOKS

Swastika Infra — New
- FY27-end order book: ~₹2,000 Cr.
- Guided range: ₹1,500–2,000 Cr.
- Current order book: ₹1,420 Cr.
- July order book: ₹916 Cr.
- Current order book: 2.8x FY26 revenue.
- Q2 order win: ~₹600 Cr.
- Execution skewed toward Q3–Q4.

Oriental Rail — New
- Order book as of 11 Aug: ₹1,692 Cr.
- Equivalent to ~3x FY26 revenue.
- Execution period: 18–22 months.
- No Q2 call yet.

Jindal Saw — New
- Order book including LOIs: ~₹16,200 Cr.
- Subject to LOI conversion.
- Abu Dhabi DI backlog: $195 million.
- Backlog visibility: 9–12 months.
- H2 margins guided better than H1.

PHARMA & CHEMICALS

Bajaj Healthcare — Raised
- FY27 capex: ₹65–80 Cr.
- Earlier capex guidance: ₹40–50 Cr.
- Revenue & PAT growth FY27: 10–15%.
- H1 growth: +15%.
- EBITDA margin FY27: 18–20%.
- Q2 EBITDA margin: 18.2%.
- Stock -13.5% after Q1.

Rossari Biotech — Kept
- Export share FY27-end: 30%+, new.
- Q2 export share: 31%.
- EBITDA margin FY27: ~12%, new.
- Capex H2 FY27: ~₹50 Cr, new.

Bhansali Engineering Polymers (BEPL) — Cut
- ABS 100k MTPA start: March 2027.
- Earlier target: September 2026.
- Reactor expected November 2026.

GUIDANCE STATUS
- Raised: PSB, HFCL, Indian Hotels, VMM, IGIL, Hindustan Zinc, Bajaj Healthcare.
- Cut: BEPL.
- Mixed: Kross.
- Several companies maintained existing guidance.
- Multiple companies introduced fresh targets.

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TEGA INDUSTRIES - DETAIL ANALYSIS

1. HIGH-QUALITY CORE BUSINESS
- Mill liners are mission-critical consumables used in mineral processing
- Qualified products create customer stickiness and switching costs
- Switching suppliers involves technical validation and operational risks
- Pre-Molycop revenue stood at approximately ₹1,692 Cr
- Pre-Molycop EBITDA stood at approximately ₹375 Cr
- EBITDA margin was approximately 22%
- Gross margins stood at approximately 60-62%
- Established customer relationships support recurring demand
- Standalone business growth potential estimated at 10-12% annually
- EBITDA could exceed ₹560 Cr by FY30, subject to assumptions
- Tega offers standalone value beyond the Molycop acquisition

2. MOLYCOP ACQUISITION
- Acquisition significantly expands Tega's scale and geographical reach
- Transaction valuation stood at approximately US$1.48 billion
- Molycop EBITDA stood at approximately US$191 million
- Implied acquisition valuation was approximately 7.7x EBITDA
- Provides access to global customers and manufacturing infrastructure
- Adds mill-optimisation capabilities and broader product offerings
- Opportunities exist to improve efficiency and expand customer relationships
- Successful execution could support earnings growth and valuation re-rating
- Value creation depends on operational improvement, not acquisition price alone

3. DELEVERAGING AND BALANCE-SHEET IMPROVEMENT
- Molycop's debt remains a key financial risk
- Operating cash flow is critical for reducing debt
- Free cash flow generation can support repayment
- Cost synergies could improve profitability and cash generation
- Non-core asset disposals may provide additional repayment proceeds
- Net leverage is targeted to decline from 4-4.5x
- Target net debt/EBITDA is approximately 3x over coming years
- Lower debt can reduce interest expenses and financial risk
- Deleveraging could increase equity value without valuation multiple expansion
- Quarterly debt reduction is a key metric to monitor
- Track cash flow after interest, taxes and capital expenditure
- Working-capital requirements will influence actual debt reduction
- Stronger finances could support a higher valuation multiple

4. STRUCTURAL INDUSTRY TAILWINDS
- Declining ore grades can increase grinding requirements
- Mines may process more material for equivalent metal production
- This supports demand for grinding media and mill liners
- Electrification and renewable energy support long-term mineral demand
- Copper and other essential minerals benefit from energy-transition investments
- Mine development and expansions can increase processing capacity
- Gold and other mineral markets support recurring consumables demand
- Existing mines provide demand beyond new mine construction
- Demand depends on commodity prices and mining capital expenditure
- Mine utilisation and regional supply-demand conditions remain important variables

5. CROSS-SELLING OPPORTUNITIES
- Molycop's customers offer potential opportunities for Tega's mill liners
- Tega's customer relationships could expand Molycop's product reach
- Combined distribution networks can increase customer wallet share
- Complementary products create opportunities for additional revenue
- Illustrative incremental revenue opportunity stands at ₹200-250 Cr annually
- At 60% gross margin, this implies ₹120-150 Cr gross profit
- Incremental operating expenses must be deducted to estimate EBITDA
- This scenario represents potential upside, not guaranteed performance
- Customer conversion and product qualification will determine execution
- Pricing and incremental servicing costs will affect profitability

6. TECHNOLOGY AND MILL OPTIMISATION
- Integration of mill-performance data offers additional opportunities
- Grinding optimisation could improve customer operating performance
- Combined consumables expertise may strengthen product performance
- Better services could deepen long-term customer relationships
- Technology may support broader product and service offerings
- Successful execution could improve earnings beyond the base case
- Cross-selling and technology remain execution-dependent growth opportunities

KEY METRICS TO MONITOR
- Organic revenue growth across Tega and Molycop
- EBITDA growth and operating margin sustainability
- Conversion of EBITDA into free cash flow
- Quarterly net-debt reduction and leverage improvement
- Progress toward approximately 3x net debt/EBITDA
- Realisation of cost synergies and efficiency improvements
- Returns generated on capital invested in Molycop
- Cross-selling revenue and incremental profitability
- Technology-led improvements in customer value and retention

OVERALL INVESTMENT THESIS
- Tega combines a profitable core business with Molycop's global platform
- Deleveraging could strengthen equity value and reduce financial risk
- Industry trends support long-term demand for mining consumables
- Cross-selling and technology provide additional earnings-growth opportunities
- Shareholder returns depend on execution, cash generation and capital discipline
- Valuation re-rating remains a possibility, not a certainty

Shivalik Rasayan has filed a new DMF in this quarter , and again to my surprise this is for a subject called Avapritnib

Now again , this is very ambitious of them to file this , as this has not been filed by many others , The innovator is Blueprint Medicines, now Sanofi. Sanofi agreed to acquire Blueprint in a deal worth up to $9.5B, and Ayvakit has been consolidated only from mid-July 2025. It treats PDGFRA exon 18 GIST and systemic mastocytosis. Sales are growing fast: €190 million in Q2 2026, or $221.3 million pro forma, up 26.4%, The 5-year NCE exclusivity from the January 2020 approval has already lapsed, so ANDAs can be filed now.

A paragraph IV challenge triggers a 30-month stay if the innovator sues. The first successful filer can get 180 days of exclusivity.

If all patents hold, the base case for generic entry is about 2034 here , so again , this is not something that will translate into anything meaningful in the next 3 years ,but to say the least this is a interesting for a company of this size to be filing ..

AYVAKIT (avapritinib) is an oral prescription kinase inhibitor developed by Blueprint Medicines. It blocks abnormal receptor tyrosine kinase proteins like PDGFRA and KIT to treat rare cancers and blood disorders

not something that is going to create value immedietly , but it tells us something about what the management is trying to build out over the next decade

The first avapritinib DMFs only appeared in June 2026, even though ANDAs have been fileable since the NCE-1 window opened in January 2024. Any ANDA customers are probably early in development. I’d read this as a long-dated option on roughly 2030–34 entry, not near-term revenue.

Just an update on shivalik's recent filings .., as a part of our series on filings updates by Indian Pharma

LMW - Q2FY27 RESULTS & INVESTMENT OUTLOOK

FINANCIAL PERFORMANCE
- Revenue ₹1,132 Cr, up 38% YoY and 32% QoQ
- PAT ₹71 Cr, up 74% YoY and 28% QoQ
- PBT ₹103 Cr, nearly doubled YoY
- H1 revenue ₹1,993 Cr, up 31% YoY
- H1 PAT ₹127 Cr, up 142% YoY
- H1 operating cash flow ₹281 Cr versus PAT of ₹127 Cr
- Inventory increased meaningfully as business activity scaled

SEGMENT PERFORMANCE

TEXTILE MACHINERY
- Revenue ₹648 Cr, up 27% YoY
- Segment profit ₹21 Cr versus ₹9 Cr last year
- Textile machinery recovery continues to support growth

MACHINE TOOLS & FOUNDRY
- Revenue ₹451 Cr, up 48% YoY
- Segment profit ₹49 Cr, up 109% YoY
- Strong growth and improving segment profitability

ADVANCED TECHNOLOGY
- Revenue ₹76 Cr, up 49% YoY
- Segment profit ₹17 Cr, nearly 4x YoY
- Advanced Technology is becoming a more meaningful contributor

MACHINE TOOL CAPACITY EXPANSION
- Approved Machine Tool Division - Unit III
- Existing capacity of 6,750 machines annually
- Current capacity utilisation stands at approximately 90%
- New capacity of 125 machines monthly
- Annual capacity addition of approximately 1,500 machines
- Capacity expansion of approximately 22%
- Commissioning scheduled for December 2026
- Investment of just ₹10 Cr
- Entire investment funded through internal accruals
- New unit aims to reduce machine-delivery lead times

SUBSIDIARIES
- Combined subsidiary loss of approximately ₹16 Cr in Q2
- Combined subsidiary loss of approximately ₹26 Cr in H1
- Subsidiary performance remains a drag on consolidated profitability

KEY TAKEAWAYS
- LMW is evolving beyond a textile-machinery recovery story
- Machine Tools & Foundry revenue grew 48% YoY
- Advanced Technology revenue grew 49% YoY
- Both newer segments show strong profit growth
- Textile Machinery segment profit more than doubled
- Strong H1 operating cash flow supports internal funding
- New capacity adds approximately 22% to machine production
- Low-cost expansion could improve delivery timelines
- Subsidiary losses and rising inventory require monitoring
- Key trigger is sustained momentum after December 2026 commissioning

Stock Fundamental in detail
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Shilpa Medicare pipeline tracker and where the incremental growth lies

source: nuvama

Case study of Business Transition -

Garware Hi-Tech, FY17 to FY26:

VAP mix 48% -> 87%
EBITDA margin 9% -> 23.6%

Leg 1 was mix. Leg 2 is integration: an in-house TPU line for its PPF base film.

Now in Q2FY27 , Margin guidance now 27% ± 2%, up from 25% ± 2%.

Do not become bitter because life tested you.
Become wiser because it did.

Transformers & Rectifiers India Ltd ( TARIL ) : Turning Capacity Into Growth

Revenue surged 66% in Q2 FY27, with EBITDA margins rising to 16.1% as better execution and higher capacity utilisation lifted performance. A ₹7,237 crore order book provides visibility for the next phase of growth.

The company now needs to expand capacity, make more components in-house and turn rising demand into better margins and stronger cash flow.

About the Company

Established in 1981, Transformers & Rectifiers India Ltd. (TARIL) manufactures transformers and related electrical equipment at its facilities in Gujarat.

Its customers include power utilities, transmission companies, power-generation projects and industrial businesses. The company supplies equipment used in electricity transmission and distribution, renewable energy integration and power-intensive industrial applications.

With a presence in more than 40 countries, it serves both domestic and international markets. Its ability to grow depends on securing technically demanding orders, meeting customer-specific requirements and delivering projects on time.

How the Power Grid Works

Generating electricity is only the first step. It must travel from power plants to cities, factories and homes, often across hundreds of kilometres.

Doing this efficiently requires a network of transmission lines, substations and specialised electrical equipment, with transformers playing a crucial role.

The key is voltage. Before electricity travels long distances, transformers increase its voltage. To understand why, consider the relationship between voltage, current and power. For the same amount of power, a higher voltage means less current is needed to carry it through transmission lines.

This matters because electricity flowing through wires generates heat, causing some energy to be lost along the way. These losses increase sharply as current rises.

By transmitting electricity at a higher voltage, power companies can reduce the current and minimise the energy wasted during transmission. For example, doubling the voltage roughly halves the current and, under the same conditions, reduces these losses to about one-quarter.

Once electricity reaches cities and industrial areas, transformers at substations lower the voltage in stages, making it suitable for distribution and use by homes, businesses and factories. Different stages of the network require different types of transformers.

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Large power transformers handle high volumes of electricity at transmission substations, while distribution transformers reduce voltage closer to end users.

Industries such as steel plants also need specialised transformers to operate heavy machinery and energy-intensive processes.

TARIL manufactures transformers and related equipment used across these applications. As India expands its transmission network, connects renewable energy projects to the grid and upgrades existing infrastructure, the demand for this equipment creates opportunities for manufacturers like TARIL.

The Products

TARIL manufactures transformers for power transmission, distribution, renewable energy and industrial use, alongside specialised electrical equipment. Its products differ by voltage rating, power-handling capacity and application.

Its portfolio also includes furnace and rectifier transformers for heavy industries, reactors for grid management, and specialised equipment for railways.

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