Q2 Earnings Season Brings Mixed Results Across Consumer, Pharma and Financial Stocks

No exchange filings were analysed by Orivam today, so this wrap draws entirely on broker research covering Q2 earnings, all from HDFC Securities.

Consumer and retail names showed divergent trends. Prince Pipes posted 38% YoY revenue growth on strong plumbing volumes, while Stylam Industries grew on exports despite margin contraction from freight and energy costs; HDFC Securities kept its BUY rating on Stylam unchanged. V-Mart Retail saw in-line topline growth but muted same-store sales growth due to a shift in festive timing, while Bata India reported in-line revenue but declining margins from cost pressures, with HDFC Securities maintaining its REDUCE rating pending execution under the company's new CEO. FSN E-Commerce (Nykaa) posted strong topline and margin growth, but HDFC Securities maintained its SELL rating citing valuations of roughly 80x Sep-28 EV/EBITDA.

In healthcare and diagnostics, Metropolis Healthcare beat EBITDA estimates and raised its own growth and margin guidance, prompting HDFC Securities to raise its target price while keeping an ADD rating. Dr. Lal Path Labs also beat EBITDA estimates on volume and pricing growth, with the broker reiterating BUY and raising its target. Among pharma majors, Lupin's EBITDA fell 8% YoY despite 11% sales growth due to higher costs, and Zydus Lifesciences saw EBITDA grow only 8% YoY against 29% sales growth for the same reason; both retained ADD ratings from HDFC Securities.

Financial and exchange-linked stocks were mixed. Sundaram Finance showed strong AUM growth offset by higher credit costs, and Aptus Value Housing Finance saw NIM improvement offset by slower disbursements and higher delinquencies; both kept ADD ratings with the broker revising Sundaram's target. Niva Bupa Health Insurance reported profitability doubling on better underwriting, with HDFC Securities flagging a regulatory overhang from proposed commission reforms but maintaining BUY. BSE Limited's revenue fell 8.5% QoQ on CAS-related weakness in options activity, though cost discipline helped margins, with the broker raising its target price. Multi Commodity Exchange reported strong Q2FY27 revenue and EBITDA growth as volumes recovered, with HDFC Securities raising its EPS estimate and maintaining BUY.

Elsewhere, Balaji Amines beat Q2 estimates but HDFC Securities maintained its SELL rating citing underutilized capex and margin pressure from a methylamines supply glut and Chinese dumping. Anthem Biosciences reported EBITDA growth in line with estimates on gross margin expansion, retaining an ADD rating with a revised target.