This week’s earnings report had both good players and bad ones, with the market heavily rewarding good numbers. The market illustrated a clear mission: reward strong operational performance and ruthlessly punish any signs of weakness. While some companies recorded highs on good numbers, others show signs of pressure following below expected numbers
The Winners' Circle: Soaring Profits and Bullish Bets
Investors were bullish on companies that reported good returns, especially when accompanied by confident management commentary.
Tata Steel (+3%): The steel giant was in focus, posting a massive 272% year-over-year (YoY) surge in consolidated net profit to ₹3,102 crore. Revenue rose a solid 9%, and brokerages like Morgan Stanley and Jefferies reiterated their ‘Buy’ calls, driving the stock higher.
Biocon (+10% in two days): The pharma major staged an impressive turnaround, reporting a consolidated net profit of ₹84.5 crore against a net loss last year. The rally was fueled by what analysts called “stellar” growth in its biosimilars business, leading to a wave of target price hikes.
Ashok Leyland (+5%): Investors looked past a flat net profit and focused on the operational strength. The company delivered its 11th straight quarter of double-digit EBITDA growth, driven by a massive 45% jump in exports. Brokerages cheered the margin strength and the potential for a “healthier upcycle,” sending the stock surging.
Quick Hits from the Winner’s Column:
Honasa Consumer (Mamaearth): Jumped 5% after turning a net profit of ₹39.2 crore from a loss last year, with Jefferies noting its offline strategy is delivering results.
Data Patterns: Surged 9% after its revenue recorded a three-fold jump and profit grew 62.5%.
Universal Cables: Hit a 10-month high, gaining 15% after its net profit rose over 2.5 times.
Gandhar Oil Refinery: Rallied 7% on a 98.2% surge in net profit.
IRCTC: Reported a 30.4% YoY jump in consolidated net profit to ₹389.9 crore and declared a ₹5 interim dividend.
Beyond the Headline: A Story of One-Offs and Underlying Trends
Some of the most interesting stories came from companies where the headline numbers didn’t tell the whole story.
Nazara Technologies (+5%): At first glance, the company’s first-ever net loss of ₹33.9 crore since listing looked disastrous. However, the market astutely looked past it, recognizing it was due to a one-time, non-cash impairment on its PokerBaazi investment. The core business was on fire, with revenue up 65% and EBITDA surging 146%, which is what investors chose to reward.
IRIS Business Services: The company reported a massive headline net profit of ₹116.85 crore, but this was entirely due to a one-time exceptional gain of ₹1,359.9 crore from divesting its GST business. The core “continuing operations” actually saw a 51% drop in profit, revealing underlying weakness.
The Punishment Zone: No Place to Hide for Laggards
The market showed no mercy to companies that missed estimates, saw margins contract, or were hit with negative corporate governance news.
Cohance Lifesciences (-27% in 11 sessions): The pharma stock was brutally punished, crashing after its net profit dropped 52% and margins contracted sharply to 21.8% from 34% a year ago. The prolonged sell-off highlights severe investor disappointment.
Britannia (-5%): The FMCG major saw its stock tumble on the sudden and immediate resignation of its highly successful MD & CEO, Varun Berry. The “quick exit” before his term ended spooked investors, overshadowing any fundamental performance.
Cochin Shipyard (-8%): The PSU shipbuilder tumbled after reporting a 48% YoY fall in net profit and a 13% decline in revenue.
Other Notable Losers:
Lemon Tree Hotels (-5%): Fell after its net EBITDA margin dropped by 306 basis points due to higher costs.
Subros (-11%): The auto-ancillary stock saw its biggest fall since 2020 as a 150 basis point margin contraction overshadowed its profit growth.
PI Industries (-5%): Shares fell after management pushed out its recovery timeline, stating a full rebound isn’t expected until the second half of FY27.
The Bottom Line
This earnings season is proving to be a powerful reminder that in a discerning market, operational excellence, clear guidance, and strong profitability are the ultimate currencies.
