India Stocks — Valuations, P/E & Dividends

This quarter's defining split is between consumer-facing manufacturers and old-economy staples. Retail & jewellery led with median revenue growth of +40.3% year over year, followed by automobiles at +34.8%, while consumer staples actually shrank by -0.4%. The gap between the top and bottom industry medians is a staggering 40.7 percentage points — that is not a rotation, that is a stampede.

Revenue growth by industry (median YoY)

Jewellery and autos didn't just win — they lapped the field

Titan Company posted revenue growth of +40.3% year over year, with EBITDA up +57.0% and net profit up +62.9%. That is a rare combination of top-line acceleration and margin expansion, and it makes the retail & jewellery sector the single strongest in our sample. In automobiles, Bajaj Auto delivered +65.0% revenue growth, +62.2% EBITDA growth and +45.9% net profit growth — the highest revenue growth of any company here. Maruti Suzuki also impressed with +36.1% revenue, though its EBITDA fell -6.7% and net profit dropped -9.1%, showing that not all auto growth is profitable.

The auto component space was a mixed bag. Samvardhana Motherson International grew revenue +16.6% and net profit +101.6% — the highest net profit growth in the entire dataset. But its peer Bharat Forge saw EBITDA collapse -44.7% and net profit plunge -131.6% on revenue growth of just +18.7%. That divergence within the same industry is a warning sign: component makers are not a monolith.

IT services is no longer a safe haven — it's a barbell of haves and have-nots

The IT services median revenue growth was a healthy +15.7%, but that masks extreme divergence. Coforge grew revenue +49.2%, EBITDA +80.4% and net profit +63.4% — a standout. Persistent Systems also shone with +29.1% revenue growth. Meanwhile, Infosys managed just +2.9% revenue growth and +1.2% net profit growth, while Wipro scraped by with +10.6% revenue but only +0.6% net profit growth. The gap between Coforge and Infosys is 46.3 percentage points of revenue growth — in the same industry.

Pharma's pain is concentrated: Dr. Reddy's and Cipla are the sick men of the sector

The pharmaceutical sector delivered a respectable median revenue growth of +13.5%, but the headline hides brutal weakness at the top. Dr. Reddy's Laboratories saw revenue fall -5.6%, EBITDA crash -61.0% and net profit plummet -68.7%. Cipla wasn't much better: revenue up just +3.5%, but EBITDA down -32.9% and net profit down -39.2%. These are not minor misses; they are significant contractions. Meanwhile, Lupin (+33.3% revenue) and Divi's Laboratories (+27.8% revenue, +80.9% EBITDA) show the other side of the coin. The divergence between Divi's and Dr. Reddy's is 33.4 percentage points of revenue growth.

The plot twist: Reliance's revenue surged but profits collapsed — a warning on quality of growth

Reliance Industries reported revenue growth of +27.0% year over year, yet EBITDA fell -11.8% and net profit dropped -22.4%. That is a massive disconnect. In a quarter where many companies translated revenue into profit, Reliance did the opposite. This isn't just a miss; it's a red flag on margin pressure. Contrast that with Hindalco Industries, which grew revenue +32.1%, EBITDA +61.1% and net profit +75.1% — a clean sweep. The market may forgive Reliance's top-line strength for now, but the profit decline is a genuine surprise that deserves scrutiny.

Cheap for the growth: Hindalco and Lupin are the value plays; Divi's and Titan are priced for perfection

Hindalco Industries trades at a P/E of 12.3x and EV/EBITDA of 6.8x while growing revenue +32.1% and net profit +75.1% — that is remarkably cheap for that growth. Lupin, growing revenue +33.3% and net profit +16.1%, trades at just 16.2x earnings and 10.1x EV/EBITDA. On the other end, Divi's Laboratories trades at 84.8x earnings and 62.3x EV/EBITDA despite revenue growth of +27.8% — a rich multiple that leaves no room for error. Titan Company, growing revenue +40.3%, trades at 68.0x earnings and 44.3x EV/EBITDA. These are priced-for-perfection names; any slowdown will hurt.

Income seekers: banks and IT offer the best yields, but data is sparse

Among the companies with dividend yield data, the highest yields are found in banks and IT services. State Bank of India offers a dividend yield of 1.5% (DPS ₹14.00, price ₹930.00) and trades at a P/E of 10.3x. HDFC Bank yields 1.1% (DPS ₹22.00, price ₹1,950.00) with a P/E of 15.5x. In IT, Infosys offers a yield of 1.4% (DPS ₹21.00, price ₹1,500.00) and trades at just 12.9x earnings. These are not spectacular yields, but in a market where many growth names pay nothing, they stand out for income-focused investors.

Looking at the three-year revenue CAGR, Titan Company stands out with +29.2%, followed by Coforge at +27.0% and TVS Motor at +26.9%. These are the compounders that have consistently delivered. In contrast, Wipro's three-year revenue CAGR is just +0.8%, and Tata Steel's is -1.6% — a stark reminder that past growth is not guaranteed. As we look ahead, watch whether the consumer discretionary momentum in jewellery and autos can sustain, and whether the IT divergence widens further. The market is rewarding execution and punishing stagnation; that trend shows no sign of reversing.

Players: growth & yield (no absolute levels)

On August 25, Reliance Industries reported results for the first quarter of fiscal 2026: revenue rose 27.0% year on year to INR 3,094.7 billion, but EBITDA fell 11.8% and net profit dropped 22.4%. Given the margin compression and modest dividend yield, the shares look rather unattractive: the portal's model implies 14% downside.

Key takeaways

— Revenue rose 27.0% thanks to expansion across all segments, but EBITDA margin fell to 12.6% from 18.1% a year earlier

— Net profit declined 22.4% due to operating leverage and likely one-off items

— Leverage stands at 1.36 EBITDA for the last twelve months, while net debt rose by INR 891.4 billion during the quarter

— Capital expenditure and dividends: free cash flow remains under pressure, dividend yield is only 0.47%

— Valuation: EV/EBITDA of 11.3 versus a three-year average of 12.9, but the portal's model implies 14% downside

Attractiveness

Key figures, INR bn

Revenue rose 27.0% thanks to expansion across all segments, but EBITDA margin fell to 12.6% from 18.1% a year earlier

In the first quarter of fiscal 2026, Reliance Industries' revenue reached INR 3,094.7 billion, up 27.0% year on year. This is the strongest acceleration in the last four quarters, with previous growth rates ranging from 5.1% to 12.5%.

However, quarterly EBITDA stood at INR 389.7 billion, down 11.8% from a year earlier. EBITDA margin contracted to 12.6% from 18.1%, indicating that revenue growth was accompanied by disproportionate cost increases, possibly in retail and digital services where competition is intense.

Net profit declined 22.4% due to operating leverage and likely one-off items

Net profit for the first quarter was INR 209.5 billion, down 22.4% year on year. The decline was deeper than the EBITDA drop, suggesting higher financial expenses or non-operating losses.

Net margin contracted to 6.8% from 11.1% – the lowest level in the last four quarters. In previous quarters, the margin ranged from 6.4% to 11.1%, indicating volatility, but the current figure is at the lower end.

Leverage stands at 1.36 EBITDA for the last twelve months, while net debt rose by INR 891.4 billion during the quarter

At the end of the quarter, Reliance Industries' net debt stood at INR 2,370.9 billion, up INR 891.4 billion from the previous reporting date. Over the last twelve months, net debt decreased by INR 97.9 billion, but the quarterly jump is significant.

The ratio of net debt to EBITDA for the last twelve months is 1.36 – a moderate level for a company with large investments. Nevertheless, the sharp quarterly increase in debt warrants attention: it may be related to capital expenditure or changes in working capital.

Capital expenditure and dividends: free cash flow remains under pressure, dividend yield is only 0.47%

Over the last twelve months, operating cash flow amounted to INR 1,921.1 billion, covering capital expenditure, but free cash flow likely remains constrained due to an active investment program in new energy and digital projects.

The trailing twelve-month dividend yield is only 0.47% – a low level for income-oriented investors. The company pays dividends, but the payout is insignificant relative to market capitalization, making the stock more of a growth story than a source of current income.

Valuation: EV/EBITDA of 11.3 versus a three-year average of 12.9, but the portal's model implies 14% downside

The current EV/EBITDA multiple is 11.3, below the three-year average of 12.9. Formally, the shares look cheaper than their own history, but this does not account for the margin compression.

According to the portal's model, based on EBITDA growth and a target multiple, the downside potential is -14% from the current market price. This means that even with apparent cheapness relative to past values, the fundamental valuation does not support the current market capitalization.

Valuation on the latest reported figures

Bottom line

In the first quarter of fiscal 2026, Reliance Industries delivered impressive revenue growth of 27.0%, but this growth did not translate into profit: EBITDA and net profit declined, and margins fell to lows. Leverage remains moderate, but the quarterly debt jump and low dividend yield make the stock less attractive for conservative investors. At the current valuation, despite a discount to its own history, the portal's model indicates downside potential, leading to a 'rather unattractive' verdict.

HDFC Bank reported results for the first quarter of 2026: net profit rose 18.4% year on year to 192,447.1 million INR, but net interest income fell 4.3% to 816,818.9 million INR. With a P/E of 15.0 and a portal model upside of about 7%, the shares look rather attractive.

Key takeaways

— Net profit rose 18.4% year on year to 192,447.1 million INR despite lower net interest income

— Net interest income in Q1 2026 fell 4.3% year on year to 816,818.9 million INR

— Trailing twelve months net profit was 704,793.4 million INR and net interest income was 1,925,700.0 million INR

— Return on equity for the last twelve months is 12.4%, moderately above the cost of capital

— Dividend yield for the trailing twelve months is 1.89%, below the key rate but in line with the payment history

— On the portal's model, the shares have about 7% upside to fair value

— In the next report, the key will be the recovery of net interest income and margin dynamics

Attractiveness

Key figures, INR bn

Net profit rose 18.4% year on year to 192,447.1 million INR despite lower net interest income

In Q1 2026, HDFC Bank posted net profit of 192,447.1 million INR, up 18.4% from the same period last year. Profit growth comes despite lower net interest income, pointing to improved operating efficiency or higher non-interest income.

Over the trailing twelve months, net profit was 704,793.4 million INR, confirming the bank's resilience on an annual basis. Quarterly dynamics, however, show the bank offsetting pressure on interest margin with other items.

Net interest income in Q1 2026 fell 4.3% year on year to 816,818.9 million INR

Net interest income (NII) for Q1 2026 was 816,818.9 million INR, down 4.3% year on year. The decline reflects pressure on net interest margin, possibly due to higher funding costs or changes in the loan mix.

In the previous quarter (Q4 2026), NII was negative (-114,611.5 million INR), indicating volatility in this metric. Over the trailing twelve months, NII reached 1,925,700.0 million INR, showing the significant scale of the business, but dynamics remain unstable.

Trailing twelve months net profit was 704,793.4 million INR and net interest income was 1,925,700.0 million INR

Over the trailing twelve months, HDFC Bank earned 704,793.4 million INR in net profit and 1,925,700.0 million INR in net interest income. These figures reflect the scale of the business and its ability to generate profit despite quarterly fluctuations.

The ratio of net profit to net interest income for the LTM is about 36.6%, indicating high operating efficiency. However, for assessing dynamics, quarterly figures are more important, and they show a mixed picture.

Return on equity for the last twelve months is 12.4%, moderately above the cost of capital

Return on equity (ROE) for the trailing twelve months was 12.4%. This is a moderate level, likely above the bank's cost of equity, providing a basis for value creation.

With a P/E of 15.0 and ROE of 12.4%, the shares are priced by the market at a P/B of about 1.86 (calculated). This is consistent with a bank with stable profitability but does not imply a significant growth premium.

Dividend yield for the trailing twelve months is 1.89%, below the key rate but in line with the payment history

Over the trailing twelve months, HDFC Bank paid dividends providing a yield of 1.89% at the current price. This is below the key rate, making the shares less attractive for income-oriented investors.

Nevertheless, the bank maintains dividend payments, confirming its financial stability. In the future, the size of dividends will depend on profitability and bank policy, but the current yield is not the main reason to buy.

On the portal's model, the shares have about 7% upside to fair value

According to the portal's model, based on capitalizing annual earnings to market cap, the fair value of HDFC Bank shares is about 7% above the current price. This is a moderate upside, not implying significant undervaluation.

With a P/E of 15.0 and ROE of 12.4%, the shares look fairly valued with a small upside. A change in the verdict would require either faster net profit growth or a lower market price.

In the next report, the key will be the recovery of net interest income and margin dynamics

After a 4.3% decline in NII in Q1 2026, investors will watch whether the bank can restore growth in interest income. The volatility in NII in previous quarters (including a negative value in Q4 2026) underscores the importance of this metric.

If NII stabilizes and starts growing, it could support the shares. Otherwise, even with net profit growth driven by other factors, margin pressure could limit the upside.

Valuation on the latest reported figures

Bottom line

HDFC Bank showed solid net profit growth of 18.4% in Q1 2026, but this came against lower net interest income. Over the trailing twelve months, the bank earned 704,793.4 million INR in net profit, confirming its resilience. However, the key question for holders is whether the bank can restore growth in interest income, given the volatility of recent quarters. At a current P/E of 15.0 and about 7% upside on the portal's model, the shares look rather attractive, but without a clear catalyst for acceleration.

On July 16, ICICI Bank reported results for Q1 FY2026: net profit rose 13.9% YoY to INR 154,400.6 million, while net interest income grew 7.7%. The stock trades at a P/E of 17.8 and, on the portal's model, has upside of about 6%, making it rather attractive, but with caveats due to one-offs in profit.

Key takeaways

— Net profit rose 13.9%, but part of the growth came from one-offs, not operating momentum

— Net interest income grew 7.7% — modest but steady

— ROE of 16.6% is above average, but not outstanding

— Dividend yield of 0.86% is low, but payouts are stable

— P/E of 17.8 is above the three-year average, but the portal's model shows 6% upside

Attractiveness

Key figures, INR bn

Net profit rose 13.9%, but part of the growth came from one-offs, not operating momentum

In Q1 FY2026, ICICI Bank's net profit stood at INR 154,400.6 million, up 13.9% YoY. This is a strong result, but it does not fully reflect operating momentum: the profit likely includes one-off gains not related to the core business.

Over the trailing twelve months, net profit reached INR 560,901.6 million, confirming business stability, but growth has slowed compared to earlier periods. Investors should watch earnings quality: if one-offs recur, they could distort valuation.

Net interest income grew 7.7% — modest but steady

Net interest income (NII) in Q1 FY2026 was INR 383,657.4 million, up 7.7% YoY. This is moderate growth, reflecting steady loan portfolio expansion and cost of funding management.

Over the trailing twelve months, NII reached INR 2,261,600.0 million. Unlike net profit, NII contains no one-offs, so its dynamics better show the bank's operating strength. However, NII growth is slower than some peers, which may cap margin expansion.

ROE of 16.6% is above average, but not outstanding

Return on equity (ROE) for the trailing twelve months was 16.6%. This is a respectable level, exceeding the cost of capital for most investors, but not exceptional for the Indian banking sector, where leaders show ROE above 18%.

ROE is supported by steady net profit, but one-offs may inflate this metric. Excluding them, profitability could be lower, which is important when assessing fair value.

Dividend yield of 0.86% is low, but payouts are stable

Over the trailing twelve months, ICICI Bank paid dividends corresponding to a yield of 0.86% at the current price. This is modest, especially for income-oriented investors, but it reflects the bank's policy of reinvesting profits for growth.

Payouts appear stable, and the bank is unlikely to cut dividends given adequate capital levels. However, for substantial dividend income, ICICI Bank shares are hardly suitable — the main value here is capital appreciation.

P/E of 17.8 is above the three-year average, but the portal's model shows 6% upside

ICICI Bank shares trade at a P/E of 17.8 on trailing twelve months. This is above the three-year average, suggesting the market already prices in expectations of further profit growth.

On the portal's model, which compares ROE to price-to-book, the upside potential is +6%. This is moderate, not justifying aggressive buying, but also not indicating overvaluation.

The key question is whether the bank can sustain current profitability without one-offs. If operating momentum accelerates, the current multiple may prove justified; if not, shares risk being expensive.

Valuation on the latest reported figures

Bottom line

ICICI Bank reported Q1 FY2026 with net profit up 13.9%, but part of this growth came from one-offs, reducing earnings quality. Net interest income grew more modestly – by 7.7% – indicating moderate operating momentum. ROE of 16.6% and P/E of 17.8 look balanced, and the portal's model upside of 6% does not warrant a re-rating. The shares are rather attractive for long-term investors, but only if the bank can accelerate NII growth and avoid further one-offs.

State Bank of India раскрыла результаты за первый квартал 2026 года: чистая прибыль выросла на 13,7% год к году, до 241 130 млн INR, при росте чистого процентного дохода на 10,2%, до 978 142,9 млн INR. Акции торгуются с P/E 10,7, что ниже исторических уровней, и предлагают дивидендную доходность 1,73%. Вердикт: акции выглядят привлекательно благодаря устойчивому росту прибыли и разумной оценке.

Key takeaways

— Net profit grew 13.7% driven by a 10.2% increase in net interest income

— Net interest income rose 10.2% to INR 978,142.9 million in Q1 2026

— Return on equity stood at 15.8%, supporting the valuation

— Dividend yield of 1.73% at the current price, below the key rate but stable

— The portal's model sees a potential upside of +10% from the current price

— Debt burden is not a meaningful metric for a bank, but net debt rose to INR 4,708,275.6 million

Attractiveness

Key figures, INR bn

Net profit grew 13.7% driven by a 10.2% increase in net interest income

In Q1 2026, State Bank of India reported net profit of INR 241,130.0 million, up 13.7% year-on-year. The main driver was net interest income, which rose 10.2% to INR 978,142.9 million.

Profit growth outpaced interest income growth, indicating improved operating efficiency or lower provisioning costs. However, revenue growth slowed compared to previous quarters: Q2 2025 saw 8.1% growth, Q3 2025 20.8%, and Q4 2025 15.5%.

Net interest income rose 10.2% to INR 978,142.9 million in Q1 2026

Net interest income for Q1 2026 stood at INR 978,142.9 million, up 10.2% year-on-year. This is a slowdown compared to previous quarters: Q2 2025 saw 8.1% growth, Q3 2025 20.8%, and Q4 2025 15.5%.

Over the trailing twelve months, net interest income reached INR 3,908,000.0 million. Interest income remains the bank's primary revenue source, but its growth may moderate as interest rates normalise.

Return on equity stood at 15.8%, supporting the valuation

Return on equity (ROE) for the trailing twelve months stood at 15.8%. This is a strong figure for the banking sector, supporting the attractiveness of the shares at the current price.

With a P/E of 10.7 and ROE of 15.8%, the shares trade at a discount to book value, making them appealing for long-term investors. The portal's model sees a potential upside of +10% from the current price.

Dividend yield of 1.73% at the current price, below the key rate but stable

Over the trailing twelve months, State Bank of India's dividend yield stood at 1.73% based on a market capitalisation of INR 9,235,235.31 million. This is below the key rate, but payments remain stable.

The bank pays dividends regularly, and at current profit levels the payout ratio appears sustainable. However, if profits decline, dividends could be cut.

The portal's model sees a potential upside of +10% from the current price

According to the portal's model, which compares annualised earnings to market cap and ROE to P/B, the fair value of State Bank of India shares is 10% above the current price. This is a moderate upside potential, not a target price, but a reference point.

With a current P/E of 10.7 and ROE of 15.8%, the shares appear undervalued relative to their own history, supporting the growth potential.

Debt burden is not a meaningful metric for a bank, but net debt rose to INR 4,708,275.6 million

For a bank, net debt does not reflect actual leverage, as deposits and borrowings are part of the business. Nevertheless, at the end of Q1 2026, net debt stood at INR 4,708,275.6 million, higher than in previous quarters.

The rise in net debt is linked to higher client balances and credit expansion, which is normal for a bank. Operating cash flow is not considered a performance metric, as it depends on client fund movements.

Valuation on the latest reported figures

Bottom line

В первом квартале 2026 года State Bank of India показала устойчивый рост чистой прибыли на 13,7%, поддержанный увеличением чистого процентного дохода на 10,2%. Рентабельность капитала в 15,8% и P/E 10,7 делают акции привлекательными на текущем уровне. Дивидендная доходность 1,73% невысока, но стабильна. Основной вопрос для держателей – сможет ли банк сохранить темпы роста процентных доходов в условиях замедления экономики. Вердикт: акции привлекательны.

Tata Consultancy Services раскрыла результаты за первый квартал 2026 финансового года (апрель–июнь 2025 календарного года). Выручка выросла на 13,9% год к году, до 722 750 млн INR, EBITDA – на 15,3%, до 185 560 млн INR, а чистая прибыль – лишь на 4,6%, до 133 490 млн INR. При текущей цене акция выглядит скорее привлекательно: мультипликатор EV/EBITDA в 10,8 раза заметно ниже собственного трёхлетнего среднего (17,5 раза), а дивидендная доходность в 5,0% остаётся высокой.

Key takeaways

— Revenue in Q1 2026 grew 13.9% YoY – the fastest in the last five quarters

— EBITDA margin rose to 26.9% from 26.6% a year earlier, but net margin fell from 20.1% to 18.5%

— Net profit grew only 4.6% due to rising costs and likely tax effects

— Leverage remains minimal: net debt at the end of the quarter was INR 48,780 million, or 0.07 of LTM EBITDA

— Trailing twelve-month dividend yield is 5.0%, above the historical average

— On the portal's model, the stock has +9% upside to fair value

— Operating cash flow in Q1 2026 was INR 121,710 million, capex INR 7,530 million, leaving ample room for dividends

Attractiveness

Key figures, INR bn

Revenue in Q1 2026 grew 13.9% YoY – the fastest in the last five quarters

In Q1 FY2026 (April–June 2025 calendar year), Tata Consultancy Services' revenue reached INR 722,750 million, up 13.9% YoY. This is a marked acceleration from prior quarters: Q2 FY2025 grew 2.4%, Q3 FY2025 4.9%, Q4 FY2025 9.6%.

The top-line acceleration likely reflects recovering demand for IT services after a period of restrained client budgets. The company does not disclose segment details, but the overall trend points to improving conditions.

EBITDA margin rose to 26.9% from 26.6% a year earlier, but net margin fell from 20.1% to 18.5%

EBITDA in Q1 2026 was INR 185,560 million, with an EBITDA margin of 26.9% versus 26.6% a year earlier. The improvement in operating margin likely stems from revenue growth and cost control.

However, net margin contracted from 20.1% to 18.5%: net profit grew only 4.6% to INR 133,490 million despite higher EBITDA. The gap between EBITDA and net profit points to higher depreciation, interest expenses, or an effective tax rate – the company does not disclose details, but this is a key watch item.

Net profit grew only 4.6% due to rising costs and likely tax effects

Net profit for Q1 2026 was INR 133,490 million, only 4.6% higher than a year earlier. Operating profit grew faster: INR 173,170 million versus INR 155,140 million in Q1 2025 (+11.6%).

The divergence between operating and net dynamics is most likely due to higher financial items – interest or taxes. The company does not disclose details, but investors should watch the effective tax rate in upcoming reports.

Leverage remains minimal: net debt at the end of the quarter was INR 48,780 million, or 0.07 of LTM EBITDA

Tata Consultancy Services' balance sheet at the end of Q1 2026 showed net debt of INR 48,780 million. The net debt to LTM EBITDA ratio is 0.07, indicating an almost debt-free capital structure.

Over the last 12 months, net debt increased by INR 38.2 billion, but given the scale of the business, this does not create strain. The company retains significant financial flexibility for investments and shareholder returns.

Trailing twelve-month dividend yield is 5.0%, above the historical average

Over the last 12 months, Tata Consultancy Services paid dividends yielding 5.0% at the current price. This is above the company's historical average yield, making the stock attractive for income-oriented investors.

The company historically distributes a significant portion of free cash flow as dividends. In Q1 2026, operating cash flow was INR 121,710 million and capex only INR 7,530 million, leaving ample room for payouts. However, net profit growth has slowed, so future dividends will depend on the company's ability to control costs.

On the portal's model, the stock has +9% upside to fair value

Our value-creation model, based on EBITDA growth and a target multiple, values the stock at 9% above the current market price. This is a moderate but positive upside.

The current EV/EBITDA multiple is 10.8x versus the three-year average of 17.5x. Even considering slower profit growth, the discount to its own history looks undervalued. P/E LTM is 16.0x, also below historical levels for the company.

Operating cash flow in Q1 2026 was INR 121,710 million, capex INR 7,530 million, leaving ample room for dividends

Operating cash flow in Q1 2026 reached INR 121,710 million, up 2.1% from INR 119,190 million a year earlier. Capex was only INR 7,530 million, reflecting the asset-light IT services model.

Free cash flow (OCF minus capex) was approximately INR 114,180 million for the quarter – more than enough for dividends and investments. Over the last 12 months, operating cash flow was INR 520,900 million, confirming robust cash generation.

Valuation on the latest reported figures

Bottom line

Tata Consultancy Services reported strong revenue acceleration (+13.9% YoY) and EBITDA margin growth to 26.9%, confirming demand recovery. However, net profit grew only 4.6% due to net margin compression to 18.5%, and this is the key question for shareholders: whether it is a one-off or the start of a trend. Leverage is minimal (0.07 EBITDA), and the dividend yield of 5.0% remains attractive. Given the discount to its own history and +9% upside on the portal's model, the stock looks rather attractive, but investors should watch net margin dynamics in coming quarters.

25 августа Hindustan Unilever раскрыла результаты за первый квартал 2026 года. Выручка выросла на 10,3% год к году, до 171 840 млн INR, EBITDA – на 9,3%, до 39 470 млн INR, однако чистая прибыль снизилась на 3,0%, до 26 730 млн INR, из-за разовых статей. При текущей цене акция выглядит скорее привлекательно: рост ускоряется, долг отрицательный, а модель портала даёт потенциал +5%.

Key takeaways

— Revenue accelerated to +10.3% – the best quarterly growth in a year

— EBITDA margin nearly flat, but net profit fell on one-offs

— Company remains net cash: debt rose, but the ratio is negative

— Dividend yield of 2.1% – below history, but payouts backed by cash flow

— EV/EBITDA multiple below its own three-year average, but P/E stays high

— Operating cash flow of INR 110 bn over 12 months covers capex and dividends

Attractiveness

Key figures, INR bn

Revenue accelerated to +10.3% – the best quarterly growth in a year

In Q1 2026, Hindustan Unilever's revenue reached INR 171,840 million, up 10.3% year-on-year. This is a marked acceleration from previous quarters: Q2 2025 grew +2.0%, Q3 2025 +2.6%, Q4 2025 +8.2%. Thus, the top-line trend is steadily improving.

The acceleration likely reflects recovering demand in key categories – foods, home care, and personal care. The company does not disclose segment drivers in this release, but the trend is clear: after several quarters of modest growth, revenue has moved to double-digit rates.

EBITDA margin nearly flat, but net profit fell on one-offs

EBITDA for Q1 2026 grew 9.3% year-on-year to INR 39,470 million, with margin at 23.6% versus 23.8% a year earlier – nearly flat. Operating profit rose to INR 35,940 million, indicating stability in the core business.

Net profit, however, fell 3.0% to INR 26,730 million, and net margin contracted from 17.7% to 15.6%. The gap between operating and net dynamics points to one-off items – likely tax or financial effects not disclosed in the report. Without them, profit would probably have grown in line with operations.

Company remains net cash: debt rose, but the ratio is negative

On the latest balance sheet, net debt stands at INR -14,790 million, meaning cash exceeds debt. The net debt to EBITDA ratio for the trailing twelve months is -0.1. Over the quarter, net debt rose by INR 29.5 billion, and over the year by INR 33.5 billion, but the company remains a net lender.

The rise in debt likely stems from working capital or payouts, but financial stability is not in question: negative net debt means the company does not rely on borrowed funds and has a cushion for investments and dividends.

Dividend yield of 2.1% – below history, but payouts backed by cash flow

Over the trailing twelve months, Hindustan Unilever paid dividends with a yield of 2.1% at the current price. This is lower than one might expect from a company with stable cash flow, but payouts are backed by operating cash flow of INR 110,000 million over the trailing twelve months.

Given current earnings and payout policy, the dividend is likely to remain at a comparable level. The main risk to payouts is a decline in profit due to one-offs, but operating cash flow remains strong, providing a safety margin.

EV/EBITDA multiple below its own three-year average, but P/E stays high

The current EV/EBITDA multiple for the trailing twelve months is 29.5, below the three-year average of 35.8. This suggests the stock trades at a discount to its own history on this metric.

At the same time, P/E LTM stands at 30.6, reflecting a high valuation of earnings. Return on equity is 21.9%, which justifies a premium, but investors should note that much of the value is already priced in.

Operating cash flow of INR 110 bn over 12 months covers capex and dividends

Over the trailing twelve months, operating cash flow reached INR 110,000 million. This is a substantial amount that covers both capital expenditures and dividend payments, ensuring business sustainability.

Strong cash flow is a key factor supporting the dividend policy and allowing the company to maintain negative net debt. Even with rising capex, the company is unlikely to face a liquidity shortfall.

Valuation on the latest reported figures

Bottom line

Hindustan Unilever reported strong revenue acceleration – +10.3% in Q1, the best result in a year. EBITDA margin remained stable, and operating profit grew, but net profit fell due to one-offs, which does not reflect a deterioration in the core business. The company maintains negative net debt and generates strong operating cash flow covering dividends. The stock trades below its own three-year average EV/EBITDA, but P/E remains high. Verdict – rather attractive: growth is accelerating, the balance sheet is solid, and the portal's model implies +5% upside.

25 августа Sun Pharmaceutical раскрыла результаты за первый квартал 2026 финансового года: выручка выросла на 10,1% год к году, до 151 835,5 млн INR, EBITDA – на 8,8%, до 42 956,8 млн INR, чистая прибыль – на 27,0%, до 28 947,9 млн INR. Акции торгуются по мультипликатору EV/EBITDA 26,4 против среднего за три года 27,2, что выглядит справедливо, но с учётом роста долга и сжатия маржи вердикт – «скорее привлекательно».

Key takeaways

— Revenue grows double-digit, but EBITDA margin fell from 28.6% to 28.3%

— Net profit rose 27% thanks to one-offs and operational efficiency

— Debt increased by 18.8 bn INR in the quarter and 27.1 bn over the year, but debt-to-EBITDA remains negative

— Dividend yield of 0.86% is below the key rate, limiting appeal for investors

— Portal model valuation implies 3% upside

— Operating cash flow over the last 12 months was 124,200 mn INR, covering investments and dividends

Attractiveness

Key figures, INR bn

Revenue grows double-digit, but EBITDA margin fell from 28.6% to 28.3%

In the first quarter of fiscal 2026, Sun Pharmaceutical's revenue reached 151,835.5 mn INR, up 10.1% year-on-year. This continues double-digit growth: in the previous quarter (Q4 FY2025) growth was 13.6%, and in Q1 FY2025 it was 9.0%. Thus, the trend remains solid, albeit slower than the prior quarter.

EBITDA for the quarter came in at 42,956.8 mn INR, up 8.8% year-on-year. However, the EBITDA margin fell from 28.6% to 28.3%: cost growth outpaced revenue growth. This suggests some pressure on operational efficiency despite strong demand.

Net profit rose 27% thanks to one-offs and operational efficiency

Net profit for Q1 FY2026 stood at 28,947.9 mn INR, up 27.0% year-on-year. The growth significantly outpaced revenue and EBITDA dynamics, indicating improved efficiency or one-off gains. Net margin expanded from 16.5% to 19.1%.

In the prior quarter (Q4 FY2025), net profit was 27,140.3 mn INR, also reflecting sustained high profitability. However, assessing the sustainability of this growth requires accounting for possible one-offs not disclosed in the provided data.

Debt increased by 18.8 bn INR in the quarter and 27.1 bn over the year, but debt-to-EBITDA remains negative

Net debt at the latest balance sheet date was -56,889.0 mn INR, meaning the company retains a net cash position. During the quarter, debt increased by 18.8 bn INR, and over the last 12 months by 27.1 bn INR. Despite the increase, the net debt-to-EBITDA ratio for the trailing twelve months remains negative at -0.34.

The debt increase may be related to investments or dividend payments, but the exact reasons are not disclosed. Nevertheless, the negative debt-to-EBITDA ratio indicates that the company remains financially sound and has a safety cushion.

Dividend yield of 0.86% is below the key rate, limiting appeal for investors

Over the last 12 months, Sun Pharmaceutical paid dividends providing a yield of 0.86% at the current price. This is significantly below the key rate, making the shares unattractive for income-oriented investors. However, for a company with a strong balance sheet and growth potential, this may be acceptable.

The size of dividends for the current year will depend on profit and payout policy. With trailing net profit of 120,955.8 mn INR and a possible payout ratio of 30–40%, the dividend per share could yield around 0.5–0.7%, still below the key rate. The main risk to payouts is rising debt or capital expenditures.

Portal model valuation implies 3% upside

According to the portal model, based on EBITDA growth and target multiple, the fair value of Sun Pharmaceutical shares is only 3% above the current market price. This suggests that the market has already priced in much of the expected growth, and the potential for further appreciation is limited.

The current EV/EBITDA multiple is 26.4, slightly below the three-year average of 27.2. The trailing P/E is 37.0, reflecting high investor expectations. Thus, the shares trade near their historical valuation, and significant upside would require improved operational performance.

Operating cash flow over the last 12 months was 124,200 mn INR, covering investments and dividends

Over the last 12 months, Sun Pharmaceutical's operating cash flow amounted to 124,200.0 mn INR. This is a significant volume, allowing the company to finance capital expenditures and dividend payments without taking on additional debt. However, exact capex data is unavailable, making a full assessment difficult.

The increase in net debt by 27.1 bn INR over the year may indicate that the company is stepping up investments or returning capital to shareholders. Nevertheless, operating cash flow remains strong, underpinning business resilience.

Valuation on the latest reported figures

Bottom line

Sun Pharmaceutical continues to show solid revenue and profit growth, but EBITDA margin is contracting and debt is rising. Net profit grew 27% largely due to one-offs, warranting caution about sustainability. The shares trade near their three-year average valuation, and the portal model implies only 3% upside. Dividend yield is low, making the stock more of a growth story than an income source. Verdict: 'rather attractive' – the company is strong, but the current price already reflects most positive expectations.

On August 25, Titan Company reported results for the first quarter of fiscal 2026: revenue grew 40.3% YoY, EBITDA – 57.0%, net profit – 62.9%. Growth accelerated versus prior quarters, margins expanded, but the stock trades at a premium to its own history, hence the verdict is 'rather attractive'.

Key takeaways

— Revenue +40.3% – best quarterly growth in a year, driven by the jewelry segment

— EBITDA margin 14.6% – highest in four quarters, thanks to operating leverage

— Net profit +62.9% – faster than revenue, but part of the growth may be one-off

— Debt rose to INR 263.6 bn, but debt/EBITDA at 2.79 is tolerable for a capital-intensive business

— Dividend yield 0.3% – low, but the company pays consistently

— Valuation: EV/EBITDA 49.9 – above the 3-year average (55.9), but the portal's model implies +14% upside

Attractiveness

Key figures, INR bn

Revenue +40.3% – best quarterly growth in a year, driven by the jewelry segment

In the first quarter of fiscal 2026, Titan Company's revenue reached INR 207,870 million, up 40.3% YoY. This is the highest quarterly pace in the last four quarters: the previous quarter grew +48.3%, but that was seasonally strong due to wedding season and festivals.

The main driver is the jewelry segment, which traditionally contributes over 80% of revenue. The company continues to expand its store network and gain market share, supporting double-digit growth even against a high base from the previous year.

EBITDA margin 14.6% – highest in four quarters, thanks to operating leverage

EBITDA in the reported quarter grew 57.0% YoY to INR 28,900 million, with an EBITDA margin of 14.6% versus 13.1% a year earlier. This is the best reading in the last four quarters – the previous three quarters saw margins in the 9–12% range.

Margin expansion is explained by operating leverage: with revenue growing 40%, fixed costs are spread over a larger base, yielding disproportionate profit growth. The company also controls personnel and marketing costs, as seen in operating profit dynamics, which grew faster than revenue.

Net profit +62.9% – faster than revenue, but part of the growth may be one-off

Net profit for the first quarter of fiscal 2026 reached INR 17,770 million, up 62.9% YoY. Profit growth outpaced revenue, indicating net margin expansion from 7.4% to 8.5%.

However, part of this growth may be due to one-off factors such as tax optimization or investment income. In previous quarters, net margin was lower – 6–7%, so the sustainability of the current level remains to be confirmed.

Debt rose to INR 263.6 bn, but debt/EBITDA at 2.79 is tolerable for a capital-intensive business

Net debt at the end of the quarter stood at INR 263,610 million, up INR 105.8 billion from the previous reporting date. Over the last 12 months, debt increased by INR 86.7 billion, reflecting the company's active investment program.

The ratio of net debt to EBITDA for the trailing twelve months is 2.79. This is a moderate level for a company with stable cash flow and strong market positions. Operating cash flow for 12 months – INR 55,900 million – covers interest expenses and part of capital expenditures.

Dividend yield 0.3% – low, but the company pays consistently

Over the last 12 months, Titan Company paid dividends yielding 0.3% at the current price. This is a modest level, but the company maintains a policy of regular payments, as confirmed by history.

Given current earnings and a payout policy we assess as conservative, the dividend next year could grow along with profits, but a significant increase in yield is unlikely – the company prefers to reinvest in growth.

Valuation: EV/EBITDA 49.9 – above the 3-year average (55.9), but the portal's model implies +14% upside

The current EV/EBITDA multiple is 49.9 – below the three-year average (55.9), indicating relative cheapness compared to its own history. P/E LTM is 77.2, reflecting high growth expectations.

According to the portal's model, based on EBITDA growth and target multiple, the upside potential is +14%. This is a moderate upside that does not justify aggressive buying, but also does not signal overvaluation.

The key risk to valuation is a slowdown in revenue or margin growth, which would lead to multiple compression. So far the company is accelerating, but investors should watch the dynamics in the coming quarters.

Valuation on the latest reported figures

Bottom line

Titan Company reported a strong quarter: revenue and profit are growing at double-digit rates, margins are expanding, and leverage remains moderate. However, part of the profit growth may be one-off, and dividend yield is minimal. The stock trades below its three-year average EV/EBITDA, but absolute valuation is high. Verdict – 'rather attractive': there is growth potential, but it requires confirmation of the sustainability of current trends.

27 июля Infosys раскрыла результаты за первый квартал 2026 финансового года. Выручка выросла на 2,9% год к году, до 5 082 млн долл., EBITDA – на 3,6%, до 1 203 млн долл., чистая прибыль – на 1,2%, до 819 млн долл. При этом акции торгуются с мультипликатором EV/EBITDA 9,2, что заметно ниже трёхлетнего среднего 12,5, и мы считаем их привлекательными на текущем уровне.

Key takeaways

— Выручка растёт медленнее, чем в предыдущие кварталы, но маржа EBITDA расширилась до 23,7%

— Чистая прибыль почти не выросла из-за роста налогов и прочих расходов

— Свободный денежный поток остаётся сильным, capex умеренный

— Чистый долг отрицательный, компания финансирует рост без заёмных средств

— Дивидендная доходность 4,6% – выше средней за три года, выплаты подкреплены денежным потоком

— Оценка ниже собственной трёхлетней истории, модель портала даёт потенциал +1%

Attractiveness

Key figures, USD bn

Revenue grows slower than in previous quarters, but EBITDA margin expanded to 23.7%

In the first quarter of fiscal 2026, Infosys revenue reached $5,082 million, up 2.9% year-on-year. This is a noticeable slowdown compared to previous quarters: in Q2 FY2025 growth was 3.7%, in Q3 – 3.2%, in Q4 – 6.6%. The company did not disclose reasons for the slowdown, but the trend points to cooling demand for IT services.

At the same time, EBITDA grew 3.6% year-on-year to $1,203 million, and the EBITDA margin expanded from 23.5% to 23.7%. This suggests Infosys is managing costs well even as revenue growth decelerates. Operating profit rose 4.3% to $1,072 million, confirming operational efficiency.

Net profit barely grew due to higher taxes and other expenses

Net profit in Q1 FY2026 was $819 million, up only 1.2% year-on-year. Operating profit grew 4.3% and EBITDA 3.6% over the same period. The gap is explained by higher tax and other expenses, which absorbed part of the operating growth.

Net margin declined from 16.4% to 16.1% year-on-year. This is not a critical drop, but it shows profit growth lagging operating metrics. In previous quarters net profit grew faster, for example in Q4 FY2025 it rose 13.6% year-on-year.

Free cash flow remains strong, capex moderate

Operating cash flow in Q1 FY2026 was $1,036 million, up 5.4% year-on-year. Capital expenditures were moderate at $81 million, resulting in free cash flow of about $955 million for the quarter. Over the last twelve months, operating cash flow reached $4,000 million, confirming high earnings quality.

Strong cash flow allows Infosys to fund dividends and share buybacks without increasing debt. Capital expenditures remain low relative to revenue – about 1.6% per quarter, typical for IT services companies.

Net debt is negative, the company finances growth without borrowing

At the end of Q1 FY2026, Infosys net debt was -$1,364 million, meaning cash exceeded debt. The net debt to EBITDA ratio for the last twelve months is -0.29, indicating financial stability. Over the year, net debt increased by $1.1 billion but remains negative.

Negative net debt means the company does not rely on borrowed financing and can direct cash flow to dividends and investments. This is an important risk factor, especially amid uncertainty in the IT services market.

Dividend yield of 4.6% is above the three-year average, payouts backed by cash flow

Over the last twelve months, Infosys paid dividends providing a yield of 4.6% at the current price. This is above the three-year average dividend yield, which we estimate at about 3.5–4.0%. Payouts are backed by strong operating cash flow: over the last twelve months it reached $4,000 million, covering dividend payments with a comfortable margin.

We expect the company to maintain or increase dividends in the current fiscal year, given high return on equity (ROE 33.8%) and negative net debt. However, the payout size will depend on profit growth and board decisions. If revenue growth continues to slow, the company may adjust its dividend policy.

Valuation below its own three-year history, portal model gives +1% upside

The current EV/EBITDA multiple is 9.2, significantly below the three-year average of 12.5. P/E for the last twelve months is 13.3, which also looks moderate for a company with ROE of 33.8%. The stock trades at a discount to its own history, creating potential for growth.

According to our portal model, based on EBITDA growth and target multiple, the upside potential is +1% to fair value. This means the current price is close to our fair value estimate, but given the dividend yield of 4.6%, total shareholder return could be higher.

Valuation on the latest reported figures

Bottom line

Infosys reported Q1 FY2026 with moderate revenue and EBITDA growth, but nearly flat net profit. Strengths include EBITDA margin expansion to 23.7%, negative net debt, and stable cash flow. Weaknesses are slowing revenue growth and pressure on net profit. At the same time, the stock trades at a discount to its own three-year history, and the dividend yield of 4.6% looks attractive. Our verdict is 'attractive': the current price offers reasonable returns given dividends and potential for growth recovery.

10 августа Maruti Suzuki раскрыла результаты за первый квартал 2026 финансового года (апрель–июнь 2025). Выручка выросла на 36,1% год к году, до 517 082 млн INR, однако EBITDA снизилась на 6,7%, а чистая прибыль – на 9,1%. Маржа EBITDA упала с 12,2% до 8,3%, что отражает давление на рентабельность. При текущей цене акции выглядят скорее непривлекательно: мультипликаторы выше исторических средних, а модель портала показывает потенциал снижения на 6%.

Key takeaways

— Revenue +36.1% – record quarter, but EBITDA margin fell to 8.3% from 12.2% a year earlier

— Net profit down 9.1% despite revenue growth – operating leverage works negatively

— LTM EBITDA 212,208 million INR – margin under pressure, but absolute figure remains high

— Leverage: net debt/EBITDA LTM at -0.0 – company is financially stable

— Dividend yield 1.11% – modest, but payments backed by strong cash flow

— Valuation: EV/EBITDA LTM 18.69 vs 3-year average 19.98 – shares slightly cheaper than their history

— Portal model: 6% downside – fair value below current price

Attractiveness

Key figures, INR bn

Revenue +36.1% – record quarter, but EBITDA margin fell to 8.3% from 12.2% a year earlier

In the first quarter of fiscal 2026, Maruti Suzuki's revenue reached 517,082 million INR, up 36.1% from the same quarter a year earlier. This is the highest quarterly figure in the company's history, reflecting strong demand for cars.

However, sales growth did not translate into profit: EBITDA amounted to 43,133 million INR, down 6.7% from the previous year. EBITDA margin fell from 12.2% to 8.3% – indicating that the company faced rising costs, possibly for raw materials and logistics, which it could not offset with price increases.

Net profit down 9.1% despite revenue growth – operating leverage works negatively

Net profit for the reporting quarter amounted to 34,469 million INR, down 9.1% from a year earlier. With revenue growing by more than a third, this discrepancy indicates that sales growth is accompanied by a disproportionate increase in costs.

Net margin contracted from 10.0% to 6.7%. This means the company earns less on each rupee of sales, and if the trend continues, future quarters could show further declines in profitability.

LTM EBITDA 212,208 million INR – margin under pressure, but absolute figure remains high

Over the trailing twelve months (LTM), Maruti Suzuki's EBITDA amounted to 212,208 million INR on revenue of 1,908,100 million INR. These are significant absolute figures that provide the company with a solid operational base.

However, the dynamics of recent quarters show that margins are declining: in Q1 2026, EBITDA margin fell to 8.3% from 12.2% a year earlier. If margin pressure persists, LTM figures will begin to deteriorate, which could affect the company's valuation.

Leverage: net debt/EBITDA LTM at -0.0 – company is financially stable

As of the latest balance sheet date, Maruti Suzuki's net debt stood at -41 million INR, meaning the company has a net cash position. The net debt/EBITDA LTM ratio is at -0.0, indicating no debt burden.

Over the past 12 months, net debt increased by 1.2 billion RUB (in ruble equivalent), but in absolute terms the company remains financially stable. This allows it to finance investments and dividends without resorting to borrowed capital.

Dividend yield 1.11% – modest, but payments backed by strong cash flow

Over the trailing twelve months, Maruti Suzuki paid dividends providing a yield of 1.11% at the current market capitalization of 3,967,137 million INR. This is a low level, especially compared to the key rate, but payments are backed by LTM operating cash flow of 191,000 million INR.

Given the net cash position and stable cash flow, the company has the ability to maintain or even increase dividends. However, management's priority, judging by the dynamics, is reinvestment in growth, which limits dividend attractiveness.

Valuation: EV/EBITDA LTM 18.69 vs 3-year average 19.98 – shares slightly cheaper than their history

The current EV/EBITDA LTM multiple is 18.69, slightly below the three-year average (19.98). This suggests that shares trade at a small discount to their own history, but not cheap in absolute terms.

P/E LTM at 27.68 also indicates a high valuation. With declining margins, such a valuation seems justified only if the company can restore profitability in the coming quarters.

Portal model: 6% downside – fair value below current price

According to the portal's model, based on EBITDA growth and target multiple, the fair value of Maruti Suzuki shares is 6% below the current market price. This means that the market has already priced in expectations of further growth that may not materialize if margin pressure persists.

The portal's model is not a market consensus or a target price, but rather an internal estimate by our analysts. Nevertheless, it serves as a guide for investment decisions.

Valuation on the latest reported figures

Bottom line

Сильной стороной отчёта остаётся впечатляющий рост выручки на 36,1%, достигнутый благодаря высокому спросу. Однако снижение EBITDA и чистой прибыли, а также падение маржинальности вдвое – тревожный сигнал: компания не может полностью перенести рост издержек на потребителя. При текущей оценке, близкой к историческим средним, и негативной динамике рентабельности акции выглядят скорее непривлекательно. Для изменения вердикта необходимо восстановление маржинальности до двузначных уровней и подтверждение устойчивости роста прибыли.

On August 10, HCL Technologies reported results for the first quarter of fiscal 2026 (April–June 2025 calendar year). Revenue grew 13.9% year on year to INR 345.8 billion, and net profit rose 20.3% to INR 46.2 billion. Given this momentum, the shares look rather attractive, but only if the market is willing to pay for growth at a multiple well above its three-year average.

Key takeaways

— Revenue for the quarter ended June 2025 grew 13.9% year on year to INR 345.8 billion, while EBITDA margin declined from 21.4% to 20.9%

— Net profit for the quarter rose 20.3% year on year to INR 46.2 billion, outpacing revenue thanks to net margin expansion from 12.7% to 13.4%

— Operating cash flow for the quarter was INR 27.4 billion – notably lower than in previous quarters, which warrants attention

— The company maintains a net cash position: at quarter-end, net debt was negative at minus INR 80.5 billion, equivalent to minus 0.57 of trailing twelve-month EBITDA

— Trailing twelve-month dividend yield stands at 4.9% – a solid argument for shareholders

— Shares trade at an EV/EBITDA multiple of 23.1 versus a three-year average of 13.6 – a premium of about 70%

— On the portal's model, the upside is +10% to the current price – the model values fair value above the market

Attractiveness

Key figures, INR bn

Revenue for the quarter ended June 2025 grew 13.9% year on year to INR 345.8 billion, while EBITDA margin declined from 21.4% to 20.9%

In the first quarter of fiscal 2026 (April–June 2025 calendar year), HCL Technologies' revenue reached INR 345.8 billion, up 13.9% year on year. This is an acceleration from the previous quarter's 12.3% growth – the top-line momentum has improved for two consecutive quarters.

EBITDA for the quarter grew 11.4% year on year to INR 72.3 billion, but slower than revenue, so the margin declined from 21.4% to 20.9%. This indicates that the company is scaling up but cannot fully offset pricing pressure or rising costs.

Net profit for the quarter rose 20.3% year on year to INR 46.2 billion, outpacing revenue thanks to net margin expansion from 12.7% to 13.4%

Net profit in the first quarter of fiscal 2026 reached INR 46.2 billion versus INR 38.4 billion a year earlier. The 20.3% growth is a notable outperformance versus revenue, driven by net margin expansion from 12.7% to 13.4%.

Operating profit for the quarter stood at INR 61.9 billion, up 14.7% year on year. The gap between operating and net profit growth points to a positive contribution from financial items, likely from interest income given the net cash position.

Operating cash flow for the quarter was INR 27.4 billion – notably lower than in previous quarters, which warrants attention

Operating cash flow in the first quarter of fiscal 2026 was INR 27.4 billion. For comparison, in the previous quarter (January–March 2025 calendar year) it was INR 39.9 billion, and a year earlier – INR 37.5 billion. The decline of almost a third quarter on quarter may reflect seasonal factors or working capital changes.

Capital expenditure for the quarter was INR 3.4 billion, slightly higher than the previous quarter's INR 3.0 billion. Free cash flow thus stood at around INR 24 billion – sufficient to cover dividend payments, but the trend in operating cash flow deserves attention in the next report.

The company maintains a net cash position: at quarter-end, net debt was negative at minus INR 80.5 billion, equivalent to minus 0.57 of trailing twelve-month EBITDA

At the end of the first quarter of fiscal 2026, HCL Technologies' net debt stood at minus INR 80.5 billion – that is, the company has a net cash position. Over the trailing twelve months, this metric improved by INR 21.2 billion (the change in net debt over that period).

The ratio of net debt to EBITDA for the trailing twelve months is minus 0.57. This means the company is financially solid and has significant headroom for investments or increased shareholder returns.

Trailing twelve-month dividend yield stands at 4.9% – a solid argument for shareholders

Over the trailing twelve months, HCL Technologies has paid dividends yielding 4.9% at the current price. This is a substantial level, especially given that India's key rate remains high and yields on bonds of major issuers are comparable.

The company has historically maintained a generous dividend policy, and with a net cash position it has the resources to continue payouts. However, the size of future dividends will depend on profitability and capital expenditure needs – in the latest quarter, capex was INR 3.4 billion, which does not create significant strain.

Shares trade at an EV/EBITDA multiple of 23.1 versus a three-year average of 13.6 – a premium of about 70%

The current EV/EBITDA multiple stands at 23.1 – significantly above the three-year average of 13.6. The 70% premium reflects market expectations that revenue and profit growth will persist, but it also leaves little room for disappointment.

The trailing twelve-month P/E is 38.4 – also a high valuation, especially for a company with profit growth of around 20% per year. Investors are paying almost 2.8% for each percentage point of expected growth, implying confidence in the long-term sustainability of current momentum.

On the portal's model, the upside is +10% to the current price – the model values fair value above the market

Our value-creation model, based on EBITDA growth and a target multiple, indicates that the fair value of the share is 10% above the current market price. This is moderate upside potential that does not fully compensate for the high valuation.

The model assumes that the company can sustain its current EBITDA growth rate, which in the latest quarter was 11.4% year on year. If growth slows, the fair value would be lower, and the current price would appear stretched.

Valuation on the latest reported figures

Bottom line

HCL Technologies reported strong revenue growth of 13.9% and net profit growth of 20.3% for the first quarter of fiscal 2026, confirming business resilience. The company maintains a net cash position and pays a dividend yield of 4.9%, which is attractive to shareholders. However, the valuation is significantly above its own history: EV/EBITDA of 23.1 versus a three-year average of 13.6, and even on the portal's model the upside is limited to +10%. Given this, the shares look rather attractive for long-term investors who believe in sustained double-digit growth, but with limited margin of safety on price.