IGI Logo

Published on 20-02-2026 09:50 am

Bottom-line for Coverage Universe Marginally Revised Downwards

Choice Coverage Universe Earnings Revision

Net profit estimate was revised for our coverage universe marginally by -1.4%/ -0.2%/ 0.2% for FY26E/ FY27E/ FY28E, respectively, majorly led by sectors including Building Materials, Defence, , ER&D, Hospitals, IT Services, New Age and Internet companies and Realty – Flexible Workspace.

Among our coverage, net profit estimates was upgraded for

* Autos, by 0.8%/ 0.3%/ -0.9%, as we factor in higher operating leverage, for FY26E/ FY27E/ FY28E, respectively

* IT Services, by -3.1%/ 0.6%/ 2.3%, led by labour code impact in FY26E and improved demand environment in FY27E and FY28E

* ER&D Services, by -4.6%/ 3.9%/ 7.3%, led by labour code impact in FY26E and improved demand environment in FY27E and FY28E

Similarly, net profit estimates were downgraded for

* Building Materials, by 29.6%/ 20.2%/ 16.2%, as we factor in lower EBITDA margin and profitability in-line with expansion plans and management guidance

* Hospitals, by 1.8%/ 2.4%/ 3.1%, led by higher depreciation due to addition of new hospitals

* Realty- Flexible Workspace, by 6.5%/9.2%/ 9.9%, as we factor in higher depreciation charge for coverage companies, for FY26E/ FY27E/ FY28E, respectively Further, estimates were downgraded for FY26E for ER&D Services by 4.6%, IT Services by 3.1% and New Age and Internet companies by 2.4% led by labour code impact.

Click Here :- https://tinyurl.com/mt5zvsyw

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimerSEBI Registration no.: INZ 000160131

Published on 20-02-2026 09:49 am

Top-line Revisions for Coverage Universe are Contained

Choice Coverage Universe Revenue Revision

Revenue growth for our coverage universe was upgraded by 0.8%/ 1.7%/ 1.8% for FY26E/ FY27E/ FY28E, respectively, majorly driven by Autos, Cement, ER&D Services, Pharma, and IT Services.

Among our coverage, revenue estimate was upgraded for:

* Autos, by 1.7%/ 1.4%/ 0.6% led by improved demand

* IT Services, by 1.1%/ 4.1%/ 5.2% led by improved demand environment and higher USD-INR depreciation

* Realty – Flexible Workspace, by 2.2%/ -0.1%/ 1.8%, led by higher leasing activities, for FY26E/ FY27E/ FY28E, respectively

Similarly for our coverage, revenue estimate were downgraded for

* AlcoBev, by 1.5%/ 2.4%/ 2.6%, as we incorporate new revenue model adopted by Associated Alcohols & Breweries

* Building Materials, by 4.3%/ 4.2%/ 2.7%, as we factor in quarterly performance of our coverage companies

* Defence, by 0.3%/ 1.6%/ 2.8%, as we recalibrate our expectations for milestone-based execution timelines and moderate export conversion

* Hospitals, by 1.5%/ 1.0%/ 2.1%, led by delay in operationalisation of new beds

* New-Age and Internet, by 6.1%/ 8.3%/ 5.5%, due to decline in revenue from discontinued operations for Nazara Tech, for FY26E/ FY27E/ FY28E, respectively.

Click Here :- https://tinyurl.com/mt5zvsyw

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimerSEBI Registration no.: INZ 000160131

Published on 20-02-2026 09:49 am

Downside Surprise led by Labour Code Impact in Bottom-line Growth for Coverage Universe

Choice Coverage Universe Earnings Performance

Net profit for our coverage universe (Excl. Realty – Developers) marginally by 1.9% YoY (-7.8% QoQ), while it underperformed our estimate by 7.3%. Growth in net profit was impacted by weaker performance across Cement, IT Services and E&RD.

Among our coverage, net profit stood higher than estimate for

* New Age and Internet, by 37.5% due to one-off from revaluation gain observed for IndiaMart

* Cement, by 2.7% due to large one-off observed in Ramco Cement

* Defence, by 2.3% on account of margin led beat for Bharat Electronics and HAL ? Autos, by 1.0% due to higher-than-expected operating leverage

Similarly, net profit missed our estimates for

* Building Materials, by 48.5% led by weaker gross margins and exceptional losses

* Hospitals, by 14.0% led by labour code impact ? IT Services, by 13.8% led by primarily on account of labour code impact

* Realty – Developers, by 13.6%, led by miss in revenue and subdued margins

* ER&D Services, by 13.0% led by labour code impact ? AlcoBev, by 6.0% on account of higher advertisement and promotional spends for United Spirits

* Pharma, by 5.1% primarily led by the impact of changes in labour code regulations

Click Here :- https://tinyurl.com/mt5zvsyw

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimerSEBI Registration no.: INZ 000160131

Published on 20-02-2026 09:48 am

Similarly, revenue estimates stood lower than estimate for

* Realty – Developers, by 5.3% due to lower construction activities and lower than expected deliveries

* Building Materials, by 5.0% due to lower realisation for Apollo Pipes, subdued demand for Hindware, seasonality for Sirca Paints

* Defence, by 1.3% on account of volatility and milestone led revenue phasing.

Click Here :- https://tinyurl.com/mt5zvsyw

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimerSEBI Registration no.: INZ 000160131

Published on 20-02-2026 09:47 am

Among our coverage, revenue stood higher than our estimate for

* Realty - Flexible Workspace, by 5.7% led by stronger leasing activities

* Cement, by 4.9% led by strong volume recovery across the coverage universe

* Hospitals, by 3.1% on account of consolidation of acquisition in Narayana Hrudayalaya

* AlcoBev, by 3.0% led by higher volumes of Imperial Blue for Tilak Nagar

* Pharma, by 1.1% led by strong beat in Sun Pharma and Zydus LifeScience

* Autos, by 0.9% led by sustained higher demand

Click Here :- https://tinyurl.com/mt5zvsyw

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimerSEBI Registration no.: INZ 000160131