📊Q1FY27 Results — Key Prints
ASK Automotive — Massive beat: Revenue +52% YoY, EBITDA +33%, PAT +29%; 20% beat on sales, 16% EBITDA beat vs estimates. CMD upgraded FY27 guidance from “mid-teens” to “high-teens” (18-19%). Zero low-margin wheel assembly business now. Karoli alloy wheel plant (HPDC + Japanese tech) now commercially live. Q2 outlook flagged as “very good.”
Navin Fluorine (NFIL) — Strong beat vs BBG on all parameters: Revenue +10%, EBITDA +15%, PAT +24%. TTM PE ~50 post-results.
Solar Industries — Strong beat vs BBG.
KEI — 3% sales miss, EBITDA beat 16%, PAT beat 13%. ~5% above 5Y median on TTM basis.
Aster DM + QCIL — Aster: 22% revenue, 29% EBITDA, 39% normalized PAT (excluding ₹114 Cr merger-related exceptional charges). Kasaragod greenfield achieved monthly EBITDA breakeven within 9 months. QCIL: 19% revenue, 32% EBITDA.
Innova Captab — 34% revenue growth, 42% PAT growth. Good indicator for the trade generics thesis.
Windlas Biotech — In-line with Q1FY27 estimates on adjusted basis. PEG 0.9, P/S below 5Y median. Important flag: Management says peak revenue potential post-Plant 6 ramp is ₹1,100 Cr (FY26 at ₹905 Cr) — implies growth rate may slow to ~15% from prior 3Y CAGR of 21%.
Park Medi World — Beat, especially impressive given Greenfield plant started only April 10.
Shadowfax — Strong Q1FY27 numbers; QoQ margin expansion despite fuel hike. FY27 guidance upgraded from 27-30% to 38-40% revenue growth. NewQuest Asia Fund sold 1.2 Cr shares at ₹240; Oxbow Master Fund bought 69 lakh shares at same price.
Bajaj Finance — NII +23%, PPoP +22%, PAT +28% in Q1FY27. New customer addition of 5.1mn — new quarterly peak. AUM ₹5.5T (+24% YoY, +7% QoQ). Credit costs within guided range; management overlay to watch.
Mankind Pharma — 2-3% beat. Top therapies improving vs IPM. Margin headwinds: gross margin guidance >71% for year; Sikkim plant tax exemption expired (effective tax rate jumped to 25.4% from 17.7%). Consumer healthcare soft at 3.8% growth. GLP-1 strategy unclear.
Suprajit Engineering — EBITDA +57% but reduced Other Income dragged PAT to only +8%. Stock reacted positively on earnings day.
Crompton — 12% sales, ~15% EBITDA and PAT. In-line with BBG. ECD growth weak despite a low base (Oriental Electric ECD +23%); Hawkins/TTK/Stovekraft grew ~35% on sales.
Blue Star — Major miss: 40% miss on EBITDA, 30% miss on PAT. Worst-ever Q1 UCP margins (2.9%) — delayed summer season, channel inventory overhang, inability to pass on RM inflation.
APL Apollo — 11% beat on sales, 4% miss on EBITDA, 8% miss on PAT. First quarter of sub-15% growth; dealer destocking continues. UAE recovering. Management maintaining ₹5,500/MT unitary margin.
Endurance Technologies — 5-6% beat on sales and EBITDA; 4% miss on PAT. Overall poor relative to auto ancillary space.
Metropolis — 5% miss vs BBG estimates.
Fortis — Poor: EBITDA +10%, PAT +2%. 5% EBITDA miss, 9% PAT miss.
Narayana Hrudayalaya — EBITDA growth from UK acquisition not translating to PAT. UK business consolidation started mid-Q3FY26; impacted by heatwaves in Q1FY27 and not expected to fully normalize until Q3FY27.
Delhivery Q1FY27 — Weak. Hit by freight and handling expenses; revenue growth better than expected but GM compressed QoQ and YoY.
Pricol — Good numbers. TTM PE 31 vs 5Y median of 33. Our modelling was off across all scenarios.
Timken — 15% revenue and PBT, 10% PAT growth. Improving trajectory but still sub-par.
Bharti Airtel Q1FY27 — Revenue +18.3%, PBT (pre-exceptional) +34.5%. ARPU ₹264 (+2.7% QoQ). Singtel overhang largely resolved — only ~3.6% likely to hit the open market over 3-4 years.
MTAR Technologies — Beat on Solar Industries contract. Key operational milestone: working capital collapsed from 172 days (FY26) to 59 days (Q1FY27) — achieved via renegotiated credit terms (credit clock now starts on delivery to customer premises), JIT inventory, daily/weekly micro-monitoring, and ₹70 Cr annual GST refunds. OCF ₹247 Cr in Q1. Data centre: initial ₹45 Cr order with 8x annual pipeline potential. Watch: promoters sell equity every year.
Unimech Aerospace Q1FY27 — Highest-ever quarterly revenue ₹107.6 Cr (+71% YoY), EBITDA ₹39.3 Cr (+98% YoY). FACC long-term supply agreement signed June 30. NPCIL nuclear orders ₹87+ Cr. QIP of ₹750 Cr approved by board August 3 (AGM August 28). NTM PEG 0.8
Info Edge — Standalone PBET +23%. Exceptional item: provision on acquiring controlling stake in an investee at lower valuation. Naukri billings (recruitment +18% Q1FY27; 99acres positive). Multiple AI products launched.
Blackbuck — Growth businesses revenue +44% QoQ (vs +20% prior quarter). AI integration: KYC automated → 85% headcount reduction, 65-70% cost reduction. Super Loads live in 14 cities.
MAS Finance — Decent numbers; credit quality flat; guiding 22% AUM growth for FY27.
Ixigo — 13% revenue growth, EBITDA degrowth; PBT spiked from other income. Yatra: gross booking growth trailing Ixigo (18% vs 27% air GTV).
Amber — PBET growth only 3%; very average results; below estimates on revenue and EBIT. Added to research pipeline for deeper review.
🏥Healthcare Sector — Parliament Price Capping Risk
Major negative event (August 11): Parliament committee recommended capping hospital room rates at nearby 3-star hotel rates and fixing surgery package prices. Cited “rampant commercialization of private healthcare,” excessive billing, and unnecessary diagnostics. Apollo, Max, Fortis collapsed in trade.
“We may get a good opportunity to buy hospital/clinic stocks. Last time noise was around CGHS capping” — prior CGHS concerns were temporary.
🔬Company Deep Dives
NFIL — Deepening Fermion Relationship:
- ₹125 Cr Phase 2 CGMP4 expansion (100% dedicated to European partner), targeting completion Q4FY27.
- Combined CGMP4 asset to reach 3x asset turn by FY29 → ₹900 Cr revenue.
- Signing new MSA for an additional molecule in the same supply chain → elevates to “API minus one” positioning.
- Early-phase molecule started for the same customer; 30-40 active CDMO molecules across portfolio; 3-4 late-stage molecules awaiting FDA readouts in next 8-12 months.
Acutaas Semiconductor Vertical — Deep Dive:
- FY26 base: ~₹16 Cr (Baba Fine Chemicals only, ~1.2% of revenue).
- Indichem Korea (₹200 Cr capex): commissioning ahead of schedule, revenue from FY28 onwards.
- Revenue trajectory: ₹25-30 Cr (FY27) → ₹80-110 Cr (FY28) → ₹135-185 Cr (FY29); ~5-7% of revenue at peak. EBITDA margin expected at 30-35%, accretive to group.
- Management: pharma share to fall from 87% to ~80% over 3 years driven by battery + semi. “AI is a structural phase, not passing.”
Dr. Agarwal Eye (AGARWALEYE):
- NTM PEG 2.2
- Business: most premium eye care in markets it operates; 20% high-end cataract, 60% mid-end; 80% fixed doctor fees.
- Cataract market: 10 Cr people with cataracts in India, only 1.4 Cr surgeries/year — massive penetration gap.
- Organized eye care chains gaining share from standalone clinics (85% market).
- 9% arbitrage at CMP for TN-listed entity.
Rainbow Children’s Medical — Moat Analysis:
- Exclusive full-time retainer model (no private clinics allowed); 100+ core consultants own ~16% equity.
- BirthRight maternal brand → captive pediatric funnel for child’s entire adolescence (~30% of revenue).
- Largest private pediatric DNB programme in India (230+ seats) — creates self-sustaining talent loop that capital cannot shortcut.
- Critical care: 1/3 of beds are NICU/PICU; 400 NICU + 200 PICU beds; 94% liver transplant success rate; 98.5% cardiac surgery success.
- FY26: Revenue ₹1,703 Cr, EBITDA margin 32%, ROCE 26.1%. New CEO announced.
HCG Oncology:
- Significant re-rating potential if margins expand.
- Q1FY27 guidance: mid-teens revenue growth; ARPP growing in line with inflation; chemo drug discontinuation drag of ~1.5% continues a few more quarters.
- Short-term EBITDA margin target: 21-22%; long-term (4-5Y): 25%.
- Network: bed occupancy 54-59%, LINAC utilization ~60% — operating leverage available.
Entero Healthcare:
- M&A maths: Buy regional distributor at 6x EV/EBITDA but working capital transfers with the business → effective payback ~2 years (not 6x).
- Bad debt analysis: ECL charge 0.08-0.25% of revenue (very low); FY26 allowance jump largely inorganic (₹469 Cr from acquired businesses, not organic deterioration).
- 9MFY27E PAT growth ~60%. CFO generation expected FY27.
Innova Captab vs Windlas — Trade Generics Comparison:
- Both are trade generics (no MR force for doctor calls); distributor/stockist model.
- Innova Captab: ₹501 Cr FY26 domestic branded generics (+51% YoY); 2.5 lakh pharmacy touchpoints; Univentis brand — branded in legal form but trade-generic in economics (₹231 Cr across 750 SKUs = ₹31L/brand, far below ₹5-10 Cr per brand of true branded-generic franchises).
- Windlas: ₹195 Cr FY26 at 34.7% CAGR; 1,582 stockists; “AAA strategy” (rural/Tier 3 + Jan Aushadhi).
- Innova has additional edge: export 30% of revenue (vs 5% for Windlas) + Sharon Bio-Medicine (₹240 Cr, international regulated markets).
- Innova NTM PEG 0.9
Windlas Forensics:
- Land and building (₹283 Cr) still not in Windlas Biotech’s name — held in old entity since FY21 merger, “in process.”
- FEMA compounding application filed March 2024 for WOS (Windlas Inc.) — subsidiary dissolved effective March 2026.
- No whistleblower complaints, no wilful defaulter, no fraud reports. Overall: mostly clean.
Concord Biotech:
- Key risk flagged: US tariff on generics — 0% for 2 years, 100% from 2028, 200% thereafter. Management says customers unbothered by a 2026 announcement — but 2028 is the crunch. “This is the single biggest exogenous variable in the model and entirely outside Concord’s control.”
Angel One — Price Driver Analysis:
- Regression on 16 quarters of data: orders growth explains only 9% of QoQ price return; multiple change explains 73%.
- Over 4 years, 62% of total price move was re-rating (PE 15.1 → 26.1); earnings contributed only 38%.
- FY26 falsification: orders fell 10.9%, earnings fell ~38%, stock was flat-to-up because PE expanded 61% (mix shift to MTF book + wealth AUM).
- Correct tracking variable now: non-broking revenue mix — MTF book × yield + wealth/AMC AUM. Orders relevant for 60% of revenue but not for the stock.
QPOWER:
- P/S unaffected by Turkish hyperinflationary accounting. 20% premium to Yash High-voltage applied for EV/EBITDA and PE-based valuation.
Vardhman Special Steels:
- NTM PEG 0.5; supplies black and bright bars to auto (PV + 2W, 92% domestic).
- Aichi Steel (Toyota subsidiary) owns 25% + tech transfer.
- Non-auto diversification and forging forward integration: 2-3 years out.
Aerospace/Titanium — India import substitution thesis:
- India has 574 Mt ilmenite reserves (world-class) but zero aerospace-grade titanium processing capability (Kroll process, VAR, electron beam).
- India currently imports 100% of aerospace titanium for Tejas, BrahMos, ISRO, naval vessels.
- PTC/Aerolloy filling this gap: import substitution for India’s domestic defense/aerospace demand.
🌏Macro / Thematic
China dyes & pigments disruption:
- Reductant (key intermediate for black/blue/violet disperse dyes): RMB 25k/T (Dec 2025) → RMB 70-100k/T (Mar 2026) → RMB 120k/T (July 2026).
- Zhejiang Longsheng and Runtu announced multiple synchronized price hikes in July.
- Indian beneficiaries: Sudarshan Chemical, Bodal Chemicals, Atul, Kiri Industries, Vipul Organics.
RBI bank guarantee circular — delayed impact:
- BSE: existing BGs still working; full impact will show as old BGs mature. Colocation revenues ₹510 Mn (Q1FY27); pricing at 20% of market rates — significant headroom.
- MCX: no material impact seen yet; wait-and-watch.
- Groww and Angel One: fundamentally unaffected.
China tech power:
- DeepSeek normalized token volume on OpenRouter surpassed US frontier models (July 2026).
- Belfer Center: US scores ~84, China ~65 across AI/biotech/semiconductors/
space/quantum — far ahead of Europe (~42) and Japan (~24). - China is now #2 government space spender at ~$19.9Bn vs US $79.7Bn.
mRNA cancer therapy (Moderna + Merck):
- Phase 3 trial success in melanoma: 68.8% cancer-free (vs 49.1% on Keytruda alone); 49% lower recurrence/death risk; 59% lower distant metastasis risk.
Persistent CEO: “AI to deflate IT revenue past 30%.”