Q2 earnings season dominates broker notes; four companies file IPO papers

No exchange filings were analysed by Orivam today, so this brief is built entirely from broker research notes published through the day, most of them from HDFC Securities working through a heavy Q2FY27 results season.

The standout themes were steel and pharma. HDFC Securities flagged Tata Steel's consolidated margin hitting a 17-quarter high on pricing gains and strength in its Netherlands operations, raising its EBITDA estimates and target price to INR 255 while keeping a BUY rating. Divi's Laboratories also beat on EBITDA, with 35% YoY sales growth prompting a raised target of INR 11,470 under an ADD rating. Sai Life Sciences posted 29% YoY EBITDA growth and guidance for 25% CAGR sales growth through FY29, with HDFC Securities reiterating BUY at a revised target of INR 2,050.

IT services names drew attention too: Mphasis reported its strongest sequential growth in three years alongside a record deal pipeline and raised FY27 revenue guidance, while Sonata Software's results were described by HDFC Securities as a turning point, with international IT services returning to growth. Elsewhere in results, infrastructure and capital goods names were mixed — NCC and Kalpataru Projects posted beats and order-book strength, while Thermax missed estimates on muted order inflow and had its target multiple cut. Voltas was downgraded to REDUCE from Add on weak room air-conditioning margins and losses at its Voltbek joint venture. In consumer and FMCG, Britannia and Honasa Consumer both posted double-digit volume and revenue growth with broker targets raised, while TTK Prestige and LG Electronics maintained cautious ratings despite revenue growth, citing cost pressure and valuation respectively.

On the primary market side, four companies filed draft papers or received approvals today. Hindustan Coca-Cola Beverages filed for an entirely offer-for-sale IPO of up to 9.98 crore shares, targeting a 2027 listing at a reported $10-billion valuation. Encube Ethicals received SEBI approval for a ₹3,000-crore OFS-only IPO. IL JIN Electronics filed for a ₹2,500-crore fresh-issue IPO, and Datasoft Computer Services filed its DRHP for a fresh issue plus a promoter OFS. Separately, jewellery brand GIVA raised ₹975 crore in a funding round led by Multiples Alternate Asset Management to fund manufacturing and retail expansion.

Taken together, today's flow was almost entirely broker commentary on Q2 results rather than new company disclosures, with ratings spread across upgrades, downgrades and reiterations depending on sector and company-specific factors cited in each note.