BrainBees Solutions (Reco: Buy, FV: Rs. 350) – Multiple headwinds impact India business performance
Firstcry reported in-line revenue growth of 12.0% yoy in 4Q driven by (1) 11.4% yoy growth in India multi-channel business, (2) 9.5% yoy growth in international and (3) 15% yoy growth in GlobalBees. India EBITDA margin contracted by 202 bps yoy to 7.3% on RM price inflation, higher discounting as well as investments into quick commerce. We trim margin estimates for the India business. The earnings cuts and roll-forward to June 2028 drive a revised SoTP-based FV of Rs350 (Rs430 earlier). There is value in the stock though near-term headwinds persist.
Jubilant Ingrevia (Reco: Buy, FV: Rs. 940) – Much improved results, better still lies ahead
Jubilant Ingrevia (JIL) reported significantly improved results for 4QFY26, aided by a pickup across segments—particularly Specialty Chemicals. Management guides to 20%+ EBITDA growth in FY2027, with sequential improvement every quarter starting 1QFY27, driven by execution of the Rs15 bn order book. We raise EPS by 3-5% and revise our SoTP-based Fair Value, rolled forward to June 2027E, to Rs940 (from Rs880). Retain BUY.
Aditya Birla Fashion & Retail (Reco: Reduce, FV: Rs. 65) – Cash flow situation remains concerning
ABFRL posted revenue growth of 16% yoy, with the revenue of Pantaloons increasing by 19% yoy and other business (ethnic + TMRW + others) by 12.2% yoy. EBITDA of Rs2.0 bn implied margin of 9.9%, a contraction of 200 bps yoy (note the base quarter there was a tailwind from positive inter-segment EBITDA). ABFRL consumed cash of Rs14.4 bn in FY2026 and slipped to net debt of Rs1.5 bn as of March 2026. It will have to focus on profitability from core businesses and rein in losses of newer businesses to keep debt under check. We retain REDUCE, with an SoTP-based FV of Rs65 (previously Rs70).
TCS (Reco: Buy, FV: Rs. 3100) – TCS AR analysis—on path toward AI-led transformation
TCS’ annual report detailed the company strategy to benefit from a large opportunity, arising from enterprise AI adoption. Full-stack play from infrastructure to intelligence is a key differentiator. Other key insights include (1) a ramp-down in its top account drives yet another sharp revenue decline in TCS e-Serve International, (2) reasonable growth in Diligenta, despite the absence of mega deals, (3) the transition underway in the Postbank engagement drove a decline in TCS Technology Solutions GmbH—new projects partly offset the impact and (4) a steep premium was paid for the Coastal Cloud acquisition at 26X EV/EBITDA CY2025. We note that most client-specific issues impacting business performance are now behind and it is now well-placed to converge revenue growth with peers. Maintain BUY.
CEAT (Reco: Reduce, FV: Rs. 3350) – Takeaways from investor meet
CEAT highlighted its target of (1) sustained leadership in the 2W and 4W aftermarket segments by FY2031E, (2) scaling up commercial radials and lifting international saliency to 33% of revenues and (3) phased integration of the Camso portfolio, with full brand transfer by September 2028. We maintain our estimates and expect domestic volume growth to moderate to 5-7% yoy in FY2027E, as sharper pricing in the replacement market will weigh on overall growth. RM headwinds will weigh on the near-term. Additionally, downside risks pertaining to the Camso acquisition persist. REDUCE stays.
KEC International (Reco: Reduce, FV: Rs. 510) – Investor day: T&D strong; near-term headwinds persist
KEC reiterated its FY2027 guidance of 12-15% topline growth and Rs300 bn order intake. Management remains confident about growth, led by a Rs400 bn order book and robust order pipeline of Rs1.8 tn over the next 3-4 months. On profitability, management has refrained from giving guidance due to the supply chain disruption led by the West Asia conflict, which impacted execution and increased costs; it will likely provide a full-year margin guidance after 1QFY27. Since commentary was in line with 4QFY26 earnings call, we continue with existing estimates and FV of Rs510. Retain REDUCE.
Diversified Financials (Sector View: Attractive)- Fastening belts
The rise in bond yields and policy rates will raise NBFCs’ borrowing costs. While the incremental cost of funds for most players is likely up 30-50 bps since February 2026, the average cost of funds benefits from a high base effect in the near term. NIM pressure, more visible in 2HFY27E, will likely reflect the impact of rising bond yields and any policy rate hikes, partially offset by the changing business mix and any likely moderation in competitive intensity. On a positive note, NCD redemption is expected to be low (2-4%) in FY2027E and higher in FY2028E.
Real Estate (Sector View: Attractive) – Record occupancy levels, hazy outlook
Commercial real estate in top Indian cities saw some moderation in 4QFY26, with net absorption of 10.1 mn sq. ft (+5% yoy), although it still exceeded new supply of 4.4 mn sq. ft (-56% yoy), leading to historically low vacancy levels of 11.5% (-227 bps yoy). GCCs and flexible office operators continue to drive demand even as the share of technology services continues to decline. Market rentals continue growing and occupancy levels across REITs have crossed the 90% mark with most REITs targeting 93-94% occupancy by the end of FY2027. Large acquisitions coupled with a strong construction pipeline could continue to support double-digit earnings growth, although strong price performance have led to a drop in distribution yields (5.5-7% on FY2027E).
