OMKARA CAPITAL - DAILY NEWSLETTER 10th August 2026

MARKETS GUP-SHUP

It is the last week of the earnings season, and I like it because volatility should reduce. There will be less fun and games, fewer pre-positioning moves, and more focus on actual results. It is also an important week for us, with nearly 20 Omkara-tracked companies reporting earnings.

Globally, Friday was all about SpaceX. The war of words between the US and Iran continues, but once again, there has been nothing concrete.

Apart from the war-related news flow, I am loving this earnings season. SBI, Hindalco and Titan - even after adjusting for one-offs - reported very strong earnings on a massive base. The energy sector continues to surprise, with Hitachi Energy reporting 125% YoY PAT growth and 110% QoQ order-inflow growth.

It is becoming clear that earnings drive stock prices more than noise and Trump headlines. Let us focus on that. This week will be full of expectations, anticipation, anxiety and, most importantly, learnings.

EARNINGS SNAPSHOT
Hindalco reported all-time-high quarterly revenue, EBITDA and PAT, with every segment delivering record EBITDA. Titan and Hitachi Energy delivered strong beats, although Titan’s reported margins benefited from a one-time customs-duty and MTM tailwind. Aarti Pharmalabs, Nitin Spinners, Shivalik Bimetal and Akums reported healthy growth and margin expansion, while Ellenbarrie Industrial Gases also delivered a strong operating quarter.

Britannia’s revenue was in line but EBITDA missed slightly on sharp input-cost inflation.

HBL Engineering saw weak Defence execution, while Apollo Micro reported margin compression, a guidance cut and delays in key programmes.

🟢 GREEN | STRONG EARNINGS

1. TITAN: Strong jewellery growth drives a beat; reported margins aided by one-time tailwinds

Titan delivered a strong beat, with jewellery revenue excluding bullion rising 43% YoY to Rs 18,253 crore and domestic like-for-like growth at 33%. PAT increased 63% YoY to Rs 1,777 crore, while reported EBITDA margin expanded 246 bps to 13.5%. However, approximately Rs 407 crore of customs-duty and MTM gains inflated reported profitability. Adjusted domestic jewellery EBIT margin was 10.9%, broadly in line with management’s reference of around 11%, versus the investor range of 10.5-11%.

1. HITACHI ENERGY INDIA: Record backlog and strong order momentum drive a major beat

Hitachi Energy reported PAT of Rs 295 crore, up 125% YoY and 31% above consensus, while EBITDA margin expanded 450 bps to 16%. Order inflow rose 110% QoQ, led by a Rs 1,700 crore Europe HVDC win; excluding HVDC, inflows grew 26% YoY. Backlog reached a record Rs 32,222 crore, with exports contributing around 25% of both revenue and backlog. The company increased announced capex to Rs 4,000 crore, including a Karjan transformer facility targeted for commissioning in Q4CY28. Transmission ordering is expected to improve in H2FY27.

1. AARTI PHARMALABS: Operating leverage drives a sharp margin-led beat

Aarti Pharmalabs reported a strong margin-led quarter, with EBITDA rising 49% YoY and 20% QoQ to Rs 136 crore. EBITDA margin expanded 600 bps QoQ to 25.4%, aided by better cost absorption at the Atali and Xanthine plants. PAT grew 65% YoY and 25% QoQ to Rs 76 crore. The company announced Rs 149 crore of capex for a 405 KL intermediate and CDMO block, while Rashesh Gogri’s elevation to Managing Director signals a promoter-led push for faster growth.

1. HINDALCO INDUSTRIES: Every segment delivers record EBITDA; Novelis recovery supports all-time-high earnings

Hindalco reported all-time-high quarterly revenue, EBITDA and PAT, with consolidated EBITDA of Rs 13,932 crore, up 76% YoY and 39% QoQ, around 23% above estimates. PAT rose 75% YoY and 170% QoQ to Rs 7,013 crore, aided by a lower tax rate. Aluminium Upstream EBITDA increased 81% to Rs 7,390 crore, with margin at 55%, while Novelis adjusted EBITDA stood at $516 million despite an Oswego-related volume loss. Novelis targets $600-plus EBITDA per tonne over time, expects leverage below 4x by FY27-end and aims to begin Bay Minette commercial shipments in Q1FY28.

1. NITIN SPINNERS: Better yarn realisations and fabric volumes drive strong margin expansion

Nitin Spinners reported a strong quarter, supported by better yarn realisations and fabric volumes. Revenue rose 10% YoY to Rs 875 crore, while gross margin expanded to 40.6% from 36.7% YoY. EBITDA increased to Rs 155 crore, with margin improving to 17.7% from 14%, and PAT surged 83.4% YoY to Rs 75 crore. The favourable spread and stable other costs supported a sharp improvement in profitability. CMP is Rs 577, with a market cap of Rs 3,246 crore.

1. SHIVALIK BIMETAL CONTROLS: Strong start to FY27; new platforms add to growth visibility

Shivalik Bimetal reported revenue growth of 33% YoY to Rs 182 crore, EBITDA growth of 35% to Rs 43 crore and PAT growth of 45% to Rs 33 crore. EBITDA margin was 23.7%, while PAT margin expanded 144 bps to 18.1%. Shunt Resistors now contribute around 50% of the standalone business. Management guided for 20-30% consolidated revenue growth in FY27, subject to customer forecast conversion. The Pune facility is expected to be fully operational by October 2026, while the Cell-Connecting Systems platform targets Rs 300-400 crore of revenue over the next three years.

1. AKUMS DRUGS & PHARMACEUTICALS: CDMO-led growth drives strong profitability improvement

Akums delivered a strong beat, with EBITDA growing 35% YoY to Rs 175 crore and margin expanding 240 bps to 15%. PAT increased 56% YoY and 24% QoQ to Rs 101 crore. CDMO revenue grew 18.6% and contributed 82.6% of sales, while API losses narrowed to Rs 4 crore and Trade Generics reached breakeven. Management expects improvement in Domestic Branded Formulations, International Branded business and API profitability. The company acquired Oriflame India’s two manufacturing facilities for Rs 56 crore, while all Rs 642 crore of IPO proceeds had been utilised by June 2026.

🟡 AMBER | IN-LINE EARNINGS

1. BRITANNIA: Revenue in line, but input-cost inflation and higher A&P spending weigh on margins

Britannia reported revenue growth of 8.2% YoY to Rs 5,000 crore, in line with expectations. EBITDA grew 11% to Rs 840 crore but was around 7% below estimates, with margin at 16.8% versus the approximately 18% expected. Adjusted PAT rose 13.6% to Rs 591 crore. Exit-month revenue accelerated to 14-15% YoY as dual-pricing disruption normalised, but fuel, palm oil, sugar and milk inflation will keep Q2 margins under pressure. Management’s FY27 EBITDA-margin target of 18-18.5% appears challenging under the current input-cost environment.

1. ELLENBARRIE INDUSTRIAL GASES: Strong operating performance; upcoming plant commissioning supports H2 growth

Ellenbarrie reported revenue growth of 18% YoY and 13% QoQ to Rs 99 crore. EBITDA increased 21% YoY and 50% QoQ to Rs 39 crore, with margin improving 100 bps to 39%. PAT rose 87% YoY to Rs 35 crore, aided partly by finance costs halving to Rs 2 crore. The East India 320 TPD onsite plant is nearing commissioning, with revenue expected from Q2FY27. Management has guided for capex of Rs 250 crore in FY27 and Rs 200 crore in FY28, with stronger momentum expected in H2FY27 as new plants ramp up.

🔴 RED | WEAK EARNINGS

1. HBL ENGINEERING: Defence execution weakness drives a sharp YoY margin and PAT decline

HBL Engineering reported revenue growth of 6% YoY to Rs 638 crore, but EBITDA margin collapsed 889 bps YoY to 23%. Adjusted PAT declined 25.5% YoY to Rs 109 crore. The key drag was Defence and Aviation revenue, which fell 48.5% YoY to Rs 38 crore, with segment EBIT margin declining to 24% from 45%. Electronics partly offset the weakness, with revenue rising 26% YoY to Rs 227 crore and EBIT margin at 31%. Sequential recovery was visible from the weak Q4FY26 base, with EBITDA and PAT rising 97% and 63%, respectively.

1. APOLLO MICRO SYSTEMS: Revenue remains strong, but adverse mix drives margin compression and a guidance cut

Apollo Micro reported revenue of Rs 251 crore, up 88% YoY on a low base but down 14% QoQ. EBITDA margin contracted sharply to 21.4% from 30.6% YoY and 23.1% QoQ, due to adverse product mix and higher raw-material costs. Management reduced FY27 revenue-growth guidance to 40-45% from 45-50%, though it expects margins to improve from current levels. The order-book target of Rs 3,500-4,000 crore by FY27-end remains intact, while the QRSAM/MIGM production ramp has shifted to FY28. Key watchpoints are commissioning of Unit 3 by March 2027, IDL profitability and promoter-pledge closure.

Warm regards,
Omkara Capital Private Limited
www.omkaracapital.in

Disclaimer: This newsletter is for informational purposes only and should not be construed as investment a