Earnings Season: Brokers Flag Record Profit at Ujjivan SFB, Mixed Bank Results as Q2FY27 Reporting Continues

No exchange filings were analysed by Orivam today. The day's coverage comes from broker research notes on Q2FY27 earnings, with HDFC Securities publishing updates across banks, NBFCs, consumer and real estate names.

Among lenders, HDFC Securities said Ujjivan Small Finance Bank posted its highest-ever quarterly PAT, helped by loan growth, stable margins and falling credit costs, and kept an ADD rating with a target of INR80. ICICI Bank was described as the firm's top pick among banks, with strong loan growth, fee income and best-in-class asset quality, rated BUY with a target of INR1,725. Axis Bank's results were said to have missed HSIE estimates on softer other income and higher opex, even as loan and deposit growth stayed strong; the rating remains ADD with a target of INR1,500. Federal Bank's profitability beat estimates on strong credit growth, though HDFC Securities flagged that NII growth may lag credit growth and built in 60bps of credit costs for MSME stress, keeping an ADD rating and INR365 target.

In NBFCs and financial services, L&T Finance was described as a mixed quarter, with a positive NIM surprise offset by higher credit costs; HDFC Securities flagged near-term headwinds against the company's 'Lakshay 2031' targets and kept an ADD rating with a target of INR320. Angel One's broking revenues were flat but margins rebounded and profit rose 45% QoQ; the BUY rating with a target of INR390 was retained, with the note saying further re-rating depends on a market volume recovery.

On the consumer and real estate side, Crompton Greaves Consumer Electricals reported 18% YoY revenue growth across segments on price hikes, with management reiterating medium-term guidance; HDFC Securities kept a BUY rating and INR325 target. Metro Brands posted 12.2% YoY topline growth with gross margin expansion and measured store additions, rated BUY with a target of INR1,030. DLF's presales and collections were described as strong, with HDFC Securities pointing to FY28 as a key earnings inflection point despite near-term execution risks from labor and construction disruptions; the BUY rating carries a target of INR752.

In IT services, LTM's Q2FY27 results came in below estimates on weak Tech & Services performance, but HDFC Securities maintained its BUY rating and target of INR5,225, citing expectations of a stronger H2FY27 and FY28 benefits from a BFSI recovery and the Randstad integration.