RIL, UltraTech, JSW Steel, Dixon, Havells, AU SFB, IndusInd, RBL Bank, IndiaMart, Tanla Platforms Q2 Review

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HDFC Securities Institutional Equities

Reliance Industries - Steady growth in O2C and Jio

Reliance Industries Ltd.’s consolidated Q2 FY26 Ebitda stood at Rs 459.0 billion (+17.5% YoY, +6.9% QoQ), slightly above our estimate of Rs 455 billion. Adjusted profit after tax at Rs 181.6 billion (+9.7% YoY; +0.5% QoQ) came in below our estimate, due to lower-than-expected other income.

Our Buy rating on RIL with a price target of Rs 1,685/share is premised on

1. Ebitda growth in the digital business, led by ARPU improvement, subscriber addition, and new revenue streams;

2. oil-to-chemical margin recovery; and

3. value unlocking potential in digital and retail businesses.

UltraTech Cement - Healthy volume; prudent expansion

We maintain Buy on UltraTech Cement Ltd., with an unchanged target price of Rs 13,900 (17x Sep-27E consolidated Ebitda). In Q2 FY26, UltraTech delivered like-to-like volume growth of 7% YoY (reported 15% YoY), indicating market share gains during Q2/H1 FY26.

However, margin contracted by Rs 283/MT QoQ, owing to a seasonal price decline, high maintenance, and branding costs (management noted INR 100/MT is non-recurring), and increased contribution of low-margin Kesoram/India Cements.

On a YoY basis, 5% higher realization, however, drove margin up by Rs 225/MT. UltraTech announced phase-4 expansion by 23 mmt (FY28-29 at low capex rate of USD 51/MT, owing to a mix of greenfield, brownfield, and debottlenecking).

We maintain our estimates: consolidated volume CAGR of 10% during FY25- 28E, unit Ebitda expanding by Rs 500/MT in the said period to Rs 1,423/mt, led by rising share of green power to >80%, logistics efficiencies, and margin ramp-up of acquired assets.

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