Tata Steel, Eicher Motors, Prestige Estates, Aether, Endurance, Ipca Labs, PNC, IRM Energy And More Q2 Review

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HDFC Securities Institutional Equities

Tata Steel - Cost reduction and op-lev gains offset weak pricing

We maintain Buy on Tata Steel Ltd. with a revised target price of Rs 200/share (6.5x its Sep’27E consolidated Ebitda).

Tata Steel delivered consolidated volume growth of 11% QoQ on strong uptick in domestics sales (+20%) and the Netherlands (+8).

Despite weak pricing, op-lev gains and cost efficiencies led to unit Ebitda improving 8% QoQ to Rs 11.2k/MT.

With expected recovery in steel prices Q4 FY26 onwards, continued cost reduction efforts across all units, and volume ramp-up, we estimate 5/24% consolidated volume/Ebitda CAGRs for FY25-28E.

Prestige Estates - Strong momentum continues

Prestige Estate Projects Ltd. registered quarterly presales by value and volume Rs 60.1 billion presales (+49.6%/-50.4% YoY/QoQ) with volume at 4.4 msf (+47.3%/- 53.7% YoY/QoQ) resp.

For FY26, Prestige Estate has guided a robust presale growth of 46% YoY at Rs 250-270 billion, we expect Rs 300 billion+. The developer continues to see strong demand, with no visible slowdown in sales, driven by quality product offerings.

In Q2 FY26, Prestige Estates added a gross development value of Rs 126 billion, taking the YTD new BD GDV to Rs 330 billion across Bengaluru, Hyderabad, Mumbai, and Chennai which marks c.70% of its full year BD guidance.

On the commercial side, the Mahalakshmi BKC office is 50% pre-leased, with rents expected to rise to Rs 400/sqf post-completion in CY28.

FY26 cash inflows are guided at Rs 180–200 billion with Rs 80 billion earmarked for construction and Rs 30–32 billion for BD capex.

We believe Prestige Estates has superior growth prospects for the residential portfolio and multi-fold annuity growth; hence, we maintain Buy, with an unchanged SOTP-based target price of Rs 2,060/share.

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