Q2 Earnings Season: Brokers Flag Strong Growth at Bajaj Finance, UltraTech, Sobha; Caution on Shoppers Stop

No exchange filings were analysed by Orivam today, so this wrap draws entirely on broker research notes published through the day, all from HDFC Securities covering a clutch of Q2FY27 results.

The most positive commentary centred on real estate and lending. HDFC Securities maintained BUY on Sobha, citing presales growth in Q2FY27 and management's guidance of INR 105bn in full-year presales, with a target of INR 1,930. It also kept BUY on Oberoi Realty after presales of INR 91.5bn led by the 360 North project, targeting INR 2,490. On the lending side, Bajaj Finance drew a reiterated BUY and unchanged target of INR 1,200 on the back of 26.5% YoY AUM growth and credit costs that matched guidance, while Union Bank of India's results were described as in line with estimates on healthy NII growth and improving asset quality, with an ADD rating and INR 210 target.

In industrials and IT services, HDFC Securities stayed BUY on UltraTech Cement, pointing to 13% consolidated volume growth in Q2FY27 and an expectation that cement price stability will support a margin rebound, with the target held at INR 14,500. L&T Technology Services was rated ADD with the target raised to INR 3,700, based on 20x September 2028 estimated EPS, after what the note called strong revenue growth and margin expansion in the quarter.

Piramal Finance's Q2FY27 numbers were called largely in line with estimates on healthy AUM growth, with HDFC Securities keeping an ADD rating and INR 2,000 target. The one cautious note was on Shoppers Stop: despite 4.4% YoY topline growth and improved margins in the quarter, the brokerage retained a REDUCE rating with a DCF-based target of INR 360.

Taken together, today's broker coverage reflects a Q2 earnings season so far skewed positive across real estate, lending and industrials, with retail the notable exception flagged by HDFC Securities.