Q2 Earnings Season in Full Swing: Infosys Cuts Guidance, IndusInd and AU Bank Beat Estimates, Jio IPO Draws Record Demand

No Orivam filing analysis is available today, so this wrap draws entirely on broker research published through the day, covering a heavy slate of Q2FY27 earnings reactions.

IT services drew the most attention. Motilal Oswal and HDFC Securities both flagged Infosys cutting its FY27 constant-currency revenue growth guidance to 1-2% from 1.5-3.0% after a revenue miss in the September quarter, with margin pressure attributed to competitive pricing and the Daimler deal exit; both brokers nonetheless retained BUY ratings, with targets of INR1,300 and INR1,250 respectively. Motilal Oswal separately reiterated a BUY on Coforge, citing strong order intake and a margin guidance upgrade to 16% for FY27.

In banking and financials, HDFC Securities noted beats on Q2 earnings at IndusInd Bank, AU Small Finance Bank, DCB Bank and Shriram Finance, though with caveats: IndusInd's beat came on lower provisioning against what the broker calls a sub-par deposit franchise, and AU Bank's margins remain under pressure from a changing loan mix, leading HDFC Securities to keep REDUCE ratings on both. DCB Bank's loan growth accelerated to 21% YoY with PAT up 29% YoY, and Kotak Mahindra Bank posted 25% YoY loan growth with improved asset quality, though HDFC Securities says sub-optimal capital deployment is keeping RoE near 12%. SBI Cards was flagged with improved credit costs but still-negative receivables growth.

Across metals and cement, HDFC Securities highlighted strong volume growth industry-wide — Jindal Steel up 27% YoY, JSW Steel up 13% YoY, Shree Cement up 18%/14% YoY standalone/consolidated, and Nuvoco Vistas up 9% YoY — though unit margins were under pressure from costs or pricing in most cases. Shree Cement was upgraded to BUY from ADD. In pharma, Torrent Pharmaceuticals reported 54% YoY EBITDA growth aided by the JB Chemicals integration, while Dr. Reddy's saw a 27% YoY EBITDA decline on a 30% YoY fall in US sales. HPCL's Q2 EBITDA came in at INR90.8bn on strong refining performance and narrower marketing losses, per HDFC Securities, which kept its BUY rating.

On the primary market, India IPO reported Jio Platforms' INR30,213 crore IPO closed with bids exceeding INR4.9 lakh crore and total demand over INR7.4 lakh crore including anchor investors, a record 1.39 crore applications and 22.19 times subscription. EAAA India Alternatives secured INR360 crore from anchor investors ahead of its own IPO. Separately, Adani Wind secured 696.2 MW of turbine orders from five independent power producers, and SK Hynix shelved plans for a US listing of its Solidigm memory-chip subsidiary.