Titan and TVS Lap the Field While IT's Giants Sputter

This quarter's defining split isn't between sectors — it's between momentum and mass. Retail and autos delivered blistering top-line growth (Titan +40.3%, Bajaj Auto +65.0%, Maruti +36.1%), while IT services and staples crawled (Infosys +2.9%, ITC -11.1%). The spread between the best and worst industry median was a staggering 51 percentage points. That's not a rotation; it's a rout for anyone still holding the old guard.

Revenue growth by industry (median YoY)

Titan and TVS turned festive demand into a profit bonanza

Titan led the retail pack with revenue up 40.3% year over year, EBITDA up 57.0%, and net profit up 62.9% — a rare clean sweep where profit growth outran sales. TVS Motor was the auto standout: revenue +33.5%, EBITDA +35.8%, and net profit +67.1%, proving two-wheelers are back in favour. Bajaj Auto posted the highest revenue growth in the entire dataset at +65.0%, but its net profit lagged at +45.9%, hinting at cost pressures beneath the surface.

Hindalco was the quiet hero of the materials space: revenue +32.1%, EBITDA +61.1%, and net profit +75.1% — the strongest bottom-line growth among large caps. Coforge flew the flag for IT with revenue +49.2% and EBITDA +80.4%, showing that even in a sluggish sector, niche players can sprint.

Dr. Reddy's and ITC dragged the laggards into the red

The worst performance came from Dr. Reddy's Laboratories: revenue fell 5.6%, EBITDA collapsed 61.0%, and net profit plunged 68.7% — a brutal combination of shrinking sales and margin evaporation. ITC wasn't far behind, with revenue down 11.1% and net profit off 16.2%, as the staples sector median slipped to -0.4%. Cipla also disappointed, with EBITDA down 32.9% and net profit down 39.2% despite revenue inching up 3.5%. These are not just misses; they are warning signs for anyone betting on a consumer recovery.

Bharat Forge's profit collapse is the season's ugliest surprise

Bharat Forge grew revenue 18.7% yet watched EBITDA crater 44.7% and net profit swing to a loss of 131.6% — a staggering disconnect between top-line and bottom-line. This is the plot twist: a company in a hot sector (auto components median +17.6%) that still managed to destroy profitability. Meanwhile, Maruti Suzuki grew revenue 36.1% but saw EBITDA slip 6.7% and net profit fall 9.1%, a clear sign that volume growth is being bought with discounts. The market is rewarding growth, but only if it comes with margins.

Hindalco and Lupin are cheap for their growth; Divi's is priced for perfection

Hindalco trades at just 11.9x earnings and 6.6x EV/EBITDA while growing net profit 75.1% — a glaring value gap. Lupin is even more striking: 16.0x P/E and 10.0x EV/EBITDA for 33.3% revenue growth and 42.0% EBITDA growth. On the flip side, Divi's Laboratories commands 81.2x P/E and 59.7x EV/EBITDA for 27.8% revenue growth — impressive, but priced for perfection. Persistent Systems at 47.1x P/E for 29.1% growth also looks rich. The market is paying up for quality, but the cheapest growth is hiding in metals and pharma.

Income hunters find little comfort in this growth rally

Dividend yields were not provided in the dataset, but the valuation skew suggests income is scarce. The highest P/E names — Divi's at 81.2x, Titan at 66.3x, DMart at 67.4x — are unlikely to offer meaningful yield. For income-focused investors, the banks look more promising: HDFC Bank at 15.2x P/E and State Bank of India at 10.3x P/E, both with net profit growth in double digits (+18.4% and +13.7% respectively). These are the closest thing to a value-with-income play in this season's results.

Looking at the long view, Titan's 3-year revenue CAGR of 29.2% and TVS Motor's 26.9% stand out as the most durable growth stories, well ahead of the pack. Coforge's 27.0% CAGR also deserves attention. But the real question for next quarter is whether the margin squeeze at Maruti and Bharat Forge spreads to other volume-driven names. Watch for input costs and discounting trends — if they persist, today's revenue winners could become tomorrow's profit warnings. The market is rewarding growth, but it won't forgive margin erosion forever.

Players: growth & yield (no absolute levels)