GS on TCS
Buy , TP ₹2210
TCS’ revenue growth was in line with GSe though margins below.
Positives were
(i) most regions except India saw sequential growth, with growth broad-based across verticals;
(ii) headcount increased for a third consecutive quarter, which management attributed to demand fulfilment, and also suggests less than expected headwinds from AI.
However, negatives were
(i) EBIT margins remained flat qoq despite revenues growing in int’l markets and no wage hike headwind, suggesting continued pressure due to reinvestments, deflation and competition;
(ii) deal wins growth is negative, which suggests the revenue growth environment may remain tepid.
CITI on TCS
Sell, TP ₹1840 from ₹1875
Reported an inline but sluggish quarter; overall revenue +2.8% yoy cc (on a -3.3% yoy base, in 2Q26).
EBIT margins declined 120 bps yoy despite 9% INR depreciation; aspirational range of 26-28% keeps getting tougher.
Forward looking indicators –
(a) TTM TCV -3.3% yoy vs +9.4% yoy in 2QFY26;
(b) Headcount +1% yoy;
(c) Mgmt commentary – AI key driver of growth; FY27 margins likely lower than earlier comments.
FY27E-FY29E earnings ests are lowered by ~1-2%; also incorporate Porsche IT; expect muted low single-digit revenue growth trajectory to continue
Expect growth challenges to continue weighing on stock/sector multiples
*Nomura on TCS*
Buy, TP ₹2630
Deal bookings provide growth visibility
Investments likely to weigh on margins in FY27F
2QFY27 — broadly in line in P&L
Macro uncertainty weighing on growth outlook in the near term
Reinvestment for growth to continue; we expect margins to remain subdued near term
HSBC on TCS
Hold. TP ₹2350
While overall 2Q print was a touch light vs expectations, there were a few positive underlying trends
Key verticals like banking and technology grew well; US consumer and energy are laggards
Valuation remains undemanding; lowered margin estimates slightly
*JPM on TCS*
OW, TP Rs 2300
2Q broadly in line on both growth and margins while deal wins were soft as it doesn’t include the MHP deal given it has not closed yet.
Overall revenues grew 0.5% CC QQ but International revenues grew a healthy 1.2% led by BFSI, Mftg and Tech.
TCS highlighted that the demand environment has not changed much since last quarter and discretionary programs remain under scrutiny.
It refrained from commenting about 2Q growth momentum sustaining in near term and it expects 3Q furloughs to be similar to the last couple of years.
EBIT margins came in flat QQ at 24% as there were headwinds from investments in strategic partnerships, M&A related initiatives and talent including subcontractors that was offset by tailwinds from FX and operating leverage.
Its intention is to take margins up from current levels in 2H however we believe this will be a function of how growth pans out given seasonal weakness.
CLSA on TCS
Hold, TP ₹2038
2Q largely in line on both revenue & PAT but missed slightly on Ebit margin due to higher subcontracting expense.
A steady order book, sequential increase in headcount, AI revenue crossing US$3bn (10% of company revenue) & international business growing 1.2% CC QoQ were key positives.
Major areas of concern remain around a revival in revenue growth and timing of Ebit margin going back to the 26-28% aspirational band
Lower FY27-29 EPS estimates 1-2% to account for higher investments but with lack of growth revival visibility
*Jefferies on TCS*
Recommendation: Underperform, Target: ₹1800
Uninspiring growth, Rising margin pressures
While pick up growth in UK surprised positively, weak growth across other key regions
Rising margin pressures should keep TCS’s earnings growth in check
Cut estimates by 1-2% and expect a subdued 4% EPS CAGR over FY27-29
*Morgan Stanley on TCS*
Maintains EQUAL-WEIGHT with a target price at ₹2,160
International revenue grew 1.2% QoQ in constant currency, while artificial intelligence revenues crossed 10% of total sales
Management is prioritizing near-term investments over margin expansion, meaning the margin anchor will not revert to 25% by the fourth quarter of fiscal 2027
Two-year forward price-to-earnings sits at 12.8x to limit downside risks, though there are currently no immediate catalysts to outperform
Kotak Inst Eqt on TCS
ADD, TP ₹2320 from ₹2450
TCS reported an in-line quarter on both growth and margins, with positives and negatives largely balancing each other out.
Healthy sequential growth across key verticals and accelerating AI revenues were encouraging, while muted TCV growth remained a disappointment
Key takeaway was drive for growth, which is expected to weigh on margins in the near term.
Recoupment may not be easy
Take a conservative stance and cut FY2027-29E EBIT margin by 70-110 bps due to growth push and M&A dilution.
TCS will remain relevant as AI adoption matures although incumbency puts it at a disadvantage
Valuations are inexpensive with lower bound at 12X multiple
Kotak on IT Sector
US administration has suspended new and pending PERM applications involving TCS, Infosys, HCLT, Wipro, Cognizant and Capgemini
An event of limited impact
Action reinforces an unfavorable immigration policy direction but has limited operational relevance
Indian IT companies have substantially localized their US workforces
Employees affected by the suspension represent a small subset of the remaining visa-dependent pool
Do not expect a meaningful impact on delivery or earnings
HSBC on Info Edge
Buy, TP ₹1625
Info Edge reported an overall billings growth of 12.8% y-o-y for 2QFY27 and 13.5% y-o-y in 1HFY27
Recruitment solutions billing growth was 12.6% y-o-y in 2QFY27; however, adjusted for renewal timing differences the underlying growth was 14-15%
Nomura on Info Edge
Buy, TP ₹1480
2QFY27 billing update on 8-Oct-2026
Key highlights are as follows:
Recruitment (Naukri) billings grew 12.6% y-y vs our expectation of 15%. This follows 17.5% y-y growth in billings in 1QFY27.
Real estate (99acres) billings grew 21.2% y-y vs our expectation of 15% y-y growth.
Other verticals’ (Education and Matrimony) billings were down 2.3% y-y vs our expectation of 5% y-y growth.
Overall billings were up by 12.8% y-y vs our expectation of 14.2% growth.
*JPM on Info Edge*
OW. TP Rs 1500
2QFY27 billings update with overall billings growing 13% YY, led by strong growth in 99acres (21% YY), while Naukri grew 13%.
Naukri growth adjusted for client timing delays was 14-15%, similar to 1Q adj growth of 15% that was inline with JPMe.
Naukri billings growth continues to be driven by premiumization as the share of new offerings such as AI-Rex and Talent pulse is increasing with new client additions in addition to price increases
Tailwinds from premium hiring and newer monetizable value-added services are here to stay
This should keep billings growth in the ~15% range for FY27. With core still trading at 17x E/EBITDA 2yr fwd which offers great value
*CITI on Info Edge*
Buy, TP Rs 1510
reported 12.6% YoY growth in recruitment billings in 2QFY27 (vs. 17.5% in 1Q and 9.5% in 4QFY26).
Reported recruitment billings growth can be volatile on a quarterly basis due to the timing of customer renewals, with some customers renewing ahead of schedule while others deferring renewals to subsequent quarters.
Adjusting for these timing-related effects, mgmt. noted underlying recruitment billings growth at ~14-15% YoY in 2QFY27 vs reported growth of 12.6%
Expect 13.6% YoY growth in recruitment revenues in 2QFY27 (13.0% overall, including other classifieds).
Expect 80bps QoQ improvement in overall EBITDA margins to 44.8% in 2QFY27 with EBITDA growth at 28% YoY to Rs3.8bn (improvement in recruitment vertical, 99 Acres and Jeevansathi offset by higher losses in Shiksha)
*Kotak Inst Eqt on Info Edge*
Upgrade to Buy, TP Rs 1400
Co reported 2QFY27 billings growth of 12.6% for its recruitment segment.
Based on press release, this print was adversely impacted by some one-off renewal deferrals, leading us to believe that co is still on track to achieve FY2027 billings growth of 14-15% (1HFY27 growth of 14.9%). 99acres’ billings growth acceleration to 21.2% is a positive
Expect steadily improving profitability for this segment.
*HSBC on Life Insurance*
Industry individual APE growth of c9% y-o-y in September moderated on the back of higher prior-year base
HDFCLIFE grew faster while IPRU and MAXF reported flattish trends; SBILIFE saw decline in individual APE in September
IRDAI’s consultation paper should be structurally positive for insurers in long term; retain positive outlook on sector
*Nomura on Life Insurance*
private India life insurers’ individual annualized premium equivalent (APE) was up 7% y-y (on a base of 8%), supported by volume (number of policies – NOP) growth of 6% y-y (on a base of -3% On a total APE basis, private players witnessed growth of 24% y-y (on a base of 11%) in Sep-26.
Total APE growth in Sep-26 was fastest for HDFC Life at 27% y-y followed by ICICI Life at 10% y-y & Axis Max Life in which Max F owns an 80.98% stake) at 7% y-y, while SBI Life’s total APE declined 1% y-y
Regulatory landscape has received a significant shock & things are evolving on a daily basis
Feel comfortable with life insurers, especially SBI Life, ICICI Life & HDFC Life
*Macquarie on Insurance*
Life APE growth stayed moderate at 9% YoY; ABSLI led private insurers with 27% growth, SBI Life’s individual APE fell 2% YoY.
General insurance grew just 6% YoY headline, but ex-specialised-insurers growth was a much stronger 15%.
Motor-heavy general insurers (ICICI Lombard, GoDigit, Chola MS) posted a weak quarter post the Supreme Court’s domestic-help verdict.
*Kotak Inst Eqt on Thermax*
Upgrade to Buy, TP Rs 4000
Stock trades at 35X FY2028 earnings, which we find attractive given our expectation of a 16% revenue CAGR over FY2026-29.
A sizeable 5-6% revenue CAGR boost is likely to come from businesses in their early stages where Thermax enjoys strong competitive positioning and the market is starting to open up, namely data centers (US, India) and compressed biogas.
In addition, margin outlook remains favorable, supported by the completion of legacy orders and increasing contribution from higher-margin segments such as power, TBWES and services.
*Kotak Inst Eqt on CESC*
Upgrade to ADD, TP cut to Rs 145 from Rs 172
Stock’s 35% correction from its peak, driven largely by slower-than-expected progress in renewable capacity addition.
At 10X P/E on FY2028E, valuations have become more compelling
Believe improved execution toward management’s medium-term goal of doubling PAT over FY2025-30E, supported by Rs330 bn of investments across renewables and distribution businesses, could drive better stock performance
*Kotak Inst Eqt on KEC*
Upgrade to Add, TP Rs 400
KEC’s stock has corrected over 60% in past year, driven by
(1) weak margin performance in the non-T&D segments (civil and railways),
(2) slower execution in the water segment due to delayed payments,
(3) a seven-month debarment from participating in PGCIL tenders and
(4) execution disruptions in the Middle East amid geopolitical tensions.
While expect margin pressure to persist over the next four quarters and model EBITDA margins of 6% through 1HFY28 as legacy projects are executed, with a strong T&D opportunity pipeline across India and international markets, along with rising contribution from the cables business, should support a gradual recovery in execution and margins
Cut our FY2027-29 EPS estimates by 6-26%
*Jefferies on Hospital*
Government of India plans to extend 30% price caps to non-scheduled cancer drugs
This is to address concerns around excessive trade mark-ups and improve affordability
Although near-term margin could be impacted, believe this will be transitory
But importantly, regulatory uncertainty eases for now
Concerns around consumable markup remain but any impact on Ebitda is likely to be manageable
*Goldman Sachs on Hospital*
Assessing the impact of anti-cancer drug margin capping
Discussions with hospitals and industry personnel seem to suggest that the impact is likely to be minimal across most multi-specialty hospital chains
Onco medicines are likely only <5% of hospitals (Max/ Fortis might be slightly higher) revenues and <2-2.5% of EBITDA
Hospitals can recoup the losses via marginal repricing of services like drug administration charges, etc
Checks seem to suggest that hospitals earn a margin of 30-50% on an avg. on onco drugs
*UBS on LG Electronics*
Recommendation: Buy, Target: ₹2100
Premium franchise, expanding opportunity
Structural compounder with multiple underappreciated growth levers
Exports and portfolio expansion provide incremental growth drivers
Premiumisation and localisation support margin expansion
Target price reflects its premium franchise but not full optionality
*UBS on Havells*
Recommendation: Neutral, Target: ₹1200, Earlier Target: ₹1440
Margins recovery elusive
Sell-out strategy unlikely to drive margins recovery
Channel feedback on the sell-out strategy remains unimpressive
Underperformance and capital allocation remain structural challenges
Multiple reset appears structural rather than cyclical
*MOFSL on Delhivery*
Maintain BUY with a target price of ₹510
Express shipment volumes grew 55% YoY in the first quarter of fiscal 2027, driven by e-commerce expansion and industry consolidation
The company’s diversified customer base reduces concentration risk, with sales, EBITDA, and adjusted PAT projected to post impressive CAGRs through fiscal 2028
Integration of the Ecom Express acquisition strengthens rural reach and network density, supporting a targeted EBITDA margin expansion to 8.4% by fiscal 2028