Q2FY27 Earnings Season: HDFC Securities Flags Mixed Results Across Pharma, Cement, Banking and Infra Names

No exchange filings were analysed today, so this wrap draws entirely on broker research published by HDFC Securities covering a dozen companies' Q2FY27 results.

The standout upgrades came from Bank of Maharashtra, where HDFC Securities cited strong loan growth, margin expansion and sharply lower credit costs (RoA/RoE at 2%/27%), raising FY27E/28E estimates and lifting its target price to INR 95. Kajaria Ceramics was upgraded from Add to BUY on 24% YoY revenue growth and margin expansion, with the target held at INR 1,390. Apollo Micro Systems also drew an upgraded target of INR 460 after 72% YoY revenue growth and 54% YoY PAT growth, which HDFC Securities attributed to a strong order pipeline.

Several names showed improving operating metrics without rating changes: APL Apollo Tubes posted 13% YoY volume growth with margins at a new high (target raised to INR 2,450); Eris Lifesciences grew EBITDA 7% YoY on 13% sales growth and raised its own H2FY27 margin guidance to 36% (target raised to INR 1,500); Mankind Pharma grew EBITDA 27% YoY on 17% sales growth with margin guidance retained at 25.5-26.5% (target revised to INR 2,610); and Aavas Financiers reported in-line earnings with disbursements up 21% YoY (target unchanged at INR 1,540).

On the weaker side, HDFC Securities flagged sub-par volumes and margins at Dalmia Bharat on weak demand and elevated costs, cutting its target to INR 2,030. Supreme Industries posted 40% YoY revenue growth but cut its FY27 volume guidance, with the target held at INR 4,250. Aditya Birla Real Estate's presales rose YoY but fell QoQ, with FY27 presales guidance trimmed to INR 50bn due to a delayed Niyaara launch, target unchanged at INR 1,910. Mastek beat on revenue growth but missed on margins, with the target held at INR 1,920. Bharat Petroleum's EBITDA improved sequentially on narrower auto fuel and LPG losses, but the broker flagged marketing margin pressure and LPG under-recoveries expected in H2FY27, cutting its target from INR 430 to INR 408.

All ratings and targets above are HDFC Securities' own views, not Orivam's.