Intellect Design Arena: Awaiting AI Monetisation… - Offer Favourable Risk-Reward Despite Uncertainties; Retain BUY

Intellect Design Arena's (IDA) Q2FY27 performance remained underwhelming, with revenue growing 13% y/y to ₹855cr & operating EBITDA margin improving ~80bps q/q to 20.6%. However, excluding a ₹31.5cr non-cash licence transaction with its UK JV, revenue growth moderates to ~9% y/y, with a ~2.5% q/q decline, raising concerns around underlying momentum. However, improving execution and operating leverage offer encouragement. IDA secured 21 customer wins, including eight Destiny Deals (vs. seven in Q1), while its ₹13,125cr pipeline (+9% y/y) supports medium-term growth prospects. MSOCK-led efficiencies enabled 25 platform go-lives (vs. 16 in Q1) on a broadly unchanged cost base, demonstrating early productivity gains. Management considers ~₹850cr a sustainable quarterly revenue base and expects to cross ₹900cr within the next two quarters, with costs contained at ₹680-700cr. While MSOCK expands the TAM into legacy modernisation, monetisation remains unproven; Purple Fabric adoption is nascent & anticipated C1 customer attrition could weigh on growth. Near-term upside lies primarily in improving MSOCK & Purple Fabric monetization coupled with deal conversion, even as incremental growth is heavily dependent on GTM execution.

We believe the ~60% correction from its 52-week high has shifted the risk-reward favourably, with IDA trading at ~15.9x/13.6x FY28/29E earnings, reasonable for an established banking technology player with differentiated IP/product, a sizeable pipeline & improving operating leverage potential. Admittedly, earnings conversion remains weak, with LTM EBITDA/PAT growing around +1%/-12% despite 17% top-line growth, while capitalised R&D costs can weigh on earnings & cash conversion. Proposed acquisition plan could accelerate customer access but bring execution risks. However, we believe IDA is approaching a transition from investment-led IP development to commercial scaling, where incremental revenue could drive disproportionate earnings & margins growth. Our BUY thesis rests on improving scalability of the existing business rather than aggressive AI monetisation, with MSOCK & Purple Fabric offering additional upside optionality. While revenue quality, sustained cost discipline & cash conversion remain key monitorables, we believe the valuation reset provides an attractive entry point ahead of a potential earnings inflection. We retain BUY.

Outlook & Valuation: We have revised our FY27/28/29e $Revenue and adj. PAT estimates by -2.1/-2.9/-3.1%, and -4.3/-4.5/-3.3%, respectively with FY27-29e adj. EPS CAGR of 17.9% and arrive at a TP of Rs667, implying a ~32% upside from CMP. At CMP, the stock trades at FY27/28e P/E of 15.9x/13.6x.  

Risks: Delayed AI (MSOCK & Purple Fabric) monetisation, SaaS transition & revenue volatility, sustained cost pressures, uncertain investment payback and acquisition risks.

Dixon Technologies - All-Round beat; Client Win, Exports Boost Mobile Outlook; Maintain BUY - Anand Rathi Research

A 12% EBITDA beat was led by better-than-expected mobile volumes, as Dixon continued to gain share in a challenging market (industry volumes down 26% y/y in Q2). Ex-Vivo, smartphone volumes are expected to remain broadly flat in FY27 at ~33-34m units. The next leg of mobile growth should come from the Vivo JV, which we expect to add ~5m/~22m units in FY27/FY28, along with customer addition and export ramp-up under MPMS. Beyond mobiles, the medium-term outlook remains compelling, driven by the scale-up in IT Hardware and Telecom & Networking. The Inventec and Gemtek JVs add optionality to global IT hardware and data centre opportunities. We model a 40.4% revenue CAGR and a 46.3% PAT CAGR over FY26-29e. We also build in 90bp EBITDA margin expansion from FY27 levels, aided by backward integration into displays and camera modules and by MPMS and IT PLI 2.0 benefits, driving a 460bp RoE expansion to 26.4%. Maintain BUY with a TP of Rs18,000 (45x H1FY29e EPS). Dixon’s strong balance sheet, superior cash generation and industry-leading return ratios should support premium valuations.

Beat on all fronts: Revenue grew 46.7% y/y to Rs218bn in Q2FY27 (up 22.0%/13.5% vs. ARe/BBG estimates), aided by higher smartphone ASPs amid elevated memory prices. EBITDA margin fell 104bps y/y to 2.7% (down 24bps/18bps vs. ARe/BBG estimates), primarily due to expiry of Mobile PLI 1.0 and optical dilution from higher handset ASPs (absolute EBITDA/handset remained largely unchanged). The company recognised a one-off fair value gain of Rs575mn on its stake in Aditya Infotech. APAT declined 6.5% y/y to Rs3.0bn, (37.5%/4.8% above that ARe/BBG estimates).

Vivo, New Customers and MPMS Drive Mobile Outlook: Management expects smartphone volumes (ex-Vivo) to remain broadly stable at ~33–34m units in FY27e despite an industry decline, implying continued share gains. We expect the Vivo JV, starting production in Q4FY27, to add ~5m/~22m units in FY27e/FY28e. A new Indian brand (~6-10m units in FY28) and Motorola exports (~6-7m units a year) provide further growth, with management guiding to ~55–60m units in FY28 including Vivo. MPMS should drive incremental production (Rs50bn/year over baseline) and localisation. Display and camera module localisation (~80–100bp margin accretion over two years) and MPMS/ECMS benefits should support margin expansion.

Outlook and Valuation: Post Q2FY27, our PAT estimates remain largely unchanged. We introduce FY29 estimates and model a 40.4%/41.5%/46.3% revenue/EBITDA/PAT CAGR over FY26–29e, driving a 460bp RoE expansion to 26.4%. At the CMP, the stock trades at 63.2x/32.6x FY27e/FY28e EPS, near its -1SD one-year forward P/E. We roll forward our valuation to H1FY29e and maintain BUY with a TP of Rs18,000, based on 45x H1FY29e EPS. Dixon’s strong balance sheet, healthy cash generation and industry-leading return ratios should continue to justify premium valuations.

Key Risks: (a) Delay in scaling Vivo JV and exports; and (b) slower ramp-up of component facilities.

Hero MotoCorp Brings Festive Cheer With ‘Hero Sang Tyohar Hai Har Kahin’

* UNVEILS EXCLUSIVE FOUR-DAY ‘HEROTSAV’ CELEBRATION

* RECORD CUSTOMER RESPONSE TO 12 NEW AND REFRESHED MODELS FUELS FESTIVE MOMENTUM ACROSS DEALERSHIPS

* EXCITING REWARDS INCLUDING A CHANCE TO WIN GOLD COINS AND HERO TWO-WHEELERS

* LIMITED-PERIOD BENEFITS FROM NOVEMBER 1–4: UPTO 100% FINANCE , 0% INTEREST ON SCOOTERS, EMI Starting from ₹2222, CASHBACK UP TO ₹10,000, CORPORATE BENEFITS UP TO ₹6,000 AND MORE

Taking the festive spirit up a notch, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, announced ‘Herotsav’—a special four-day celebration of festive offers and exciting rewards for customers across India. Running from November 1 to November 4, 2026, the initiative builds on the company’s nationwide festive campaign, ‘Hero Sang Tyohar Hai Har Kahin’, bringing even more cheer to customers looking to make their festive season memorable.

The celebration comes on the back of an exceptional customer response to Hero MotoCorp’s 12 newly introduced and refreshed models across its motorcycle and scooter portfolios, with strong demand and record footfalls at dealerships adding to the festive momentum. Through Herotsav, the company aims to make this season of new beginnings even more rewarding, giving customers an added reason to bring home their favourite Hero two-wheeler.

The four-day Herotsav celebration features an exciting line-up of offers, including:

Everyday Rewards: Chance to win Hero Two-wheelers, Gold Coins, along with other assured rewards

Special retail finance offers: Upto 100% finance, EMI starting from₹2222 and no cost EMI making it easier for customers to bring home their preferred two-wheeler.

Credit Card Cashback: Instant cashback of up to ₹10,000 on select credit cards.

Corporate Benefits: Savings of up to ₹6,000 on select models

Commenting on the initiative, Ashutosh Varma, Chief Business Officer, India Business Unit, Hero MotoCorp, said “We are truly humbled by the tremendous trust and enthusiasm our customers have shown towards Hero MotoCorp this festive season. The response to our 12 new and refreshed models has been exceptional, reflecting the strength of our portfolio and our enduring connection with customers across the country. Herotsav is our way of turning this festive enthusiasm into an even more rewarding experience—with special offers and exciting benefits for those looking to bring home a Hero two-wheeler. With the festive spirit running high and demand strong across our dealerships, we invite customers to make the most of this exclusive four-day celebration.”

Customers can avail Herotsav offers by visiting their nearest authorised Hero MotoCorp dealership or booking through the company’s digital retail platform. The special benefits are available for a limited period, from November 1 to November 4, 2026.

About Hero MotoCorp

Hero MotoCorp, headquartered in New Delhi, India, is the world’s largest manufacturer of motorcycles and scooters for 25 consecutive years with ~$5 billion revenue. The Company’s global footprint spans 53 countries across Asia, Africa, Europe, Central and Latin America with a customer base of over 130 million.

The Company operates eight manufacturing facilities - six in India and one each in Colombia and Bangladesh - along with two Research and Development centres: Hero Centre for Innovation and Technology (CIT) in India and Hero Tech Centre Germany (TCG). Hero MotoCorp is driving the transition to electric mobility through VIDA. Strategic alliances with Harley-Davidson and Zero Motorcycles support the design and development of premium and electric motorcycles, respectively.

Further demonstrating its commitment to the EV future, the Company has made strategic investments in two- and three-wheeler EV manufacturers, Ather Energy and Euler Motors.

Hero MotoCorp is the only Indian two-wheeler manufacturer listed on the prestigious Dow Jones Sustainability Index (DJSI).Hero MotoCorp’s Executive Chairman, Dr. Pawan Munjal, was named to the 2025 TIME100 Climate List of the 100 most influential leaders driving business climate action.

Beyond mobility, Hero MotoCorp is a major global promoter of sports, including golf, football, field hockey, and cricket. Hero MotoSports Team Rally is India, a flag bearer in global rally racing.

Tata Motors Registered 27% Growth YoY With Total Sales Of 47,652 Commercial Vehicle Units In October 2026

Tata Motors Limited sales in the domestic & international markets for October 2026 stood at 47,652 units, compared to 37,530 units during October 2025, up 27% YoY.

 

Category	October ’26	October ’25	Growth (Y-o-Y)
HCV Trucks	12,030	10,737	12%
ILMCV Trucks	7,213	6,169	17%
Passenger Carriers	3,826	3,184	20%
SCV cargo and pickup	16,715	15,018	11%
Total CV Domestic	39,784	35,108	13%
International Business	7,868	2,422	225%
Total CV	47,652	37,530	27%

 

Domestic sales of MH&ICV in October 2026, 19,263 units vs 16,624 units in October 2025 (up 16% YoY)

Domestic & International sales for MH&ICV in October 2026, was 20,712 units vs 17,827 units in October 2025 (up 16% YoY)

About Tata Motors Ltd (Formerly TML Commercial Vehicles Ltd):

Part of the USD 180 billion Tata Group, Tata Motors Ltd., (BSE: Scrip code 544569; NSE: Scrip code TMCV) is India’s largest and a globally renowned manufacturer of utility vehicles, pick-ups, trucks, and buses. With over eight decades of leadership in commercial mobility, the company is known for its innovation, reliability, and performance. Its advanced powertrains, connected technologies, and intelligent fleet solutions support a wide range of applications—from last-mile delivery to public transport while seamlessly driving the wheels of the nation’s economy. Guided by its brand promise Better Always, Tata Motors delivers future-ready solutions that enhance customer experience and drive sustainable growth. The company operates in India and South Korea, with a global presence across Africa, the Middle East, Latin America, Southeast Asia, and SAARC countries.

As per the Composite Scheme of Arrangement sanctioned by the Hon’ble National Company Law Tribunal, Mumbai Bench—amongst Tata Motors Limited, TML Commercial Vehicles Limited (the Company) and Tata Motors Passenger Vehicles Limited—the Company’s name was changed to Tata Motors Limited from TML Commercial Vehicles Limited (effective 29 October 2025), and its equity shares are listed on the BSE Ltd and the NSE Ltd.

Coal India - Share Of Coal In Generation Mix Back To 70% Level; Maintain BUY - Anand Rathi Research

India’s power demand reached 270GW in Jul-26 and continued to remain >250GW in the first half of Oct-26. With the contribution from hydro power falling in Oct-26, the shortfall was largely compensated by coal-based thermal power generation. The improvement in coal demand from thermal power plants was also reflected in coal rake loadings, which rose to 287 rakes/day, returning to Jun-Jul’26 levels. Though, the share of rake loadings directed towards the power sector increased to 93.71% (highest since Aug-25), the stepped-up evacuation efforts by COAL and Indian Railways, are yet to translate into a sustained build-up of inventories at power plants. As on date, >95GW of power plants have coal stocks below 25% of normative levels, with at least a dozen plants operating with stocks <10%. 

This indicates the need for significant inventory built-up, going forward. The prevailing power shortage is also prompting state governments to explore multiple procurement routes, which is likely to keep e-auction premium elevated in Q3FY27. We believe the time lag between order placement and actual deliveries has led to estimated shortfall of ~7.8m tonne in e-auction volume, which led to miss to ARe, with the benefits from the same expected to accrue in Q3FY27. In line with H1FY27 show, we have tweaked the product-mix, which has led to reduction in our FY27/28 EBITDA estimates by 4.6/4.7%. In lieu of macro-economic scenarios and 3% y/y reduction in global non-coking coal trade volume, our e-auction premium estimate of 47.5/45/42.5% for FY27/28/29e offers comfort. Rolling forward our estimates to Sep-28, we maintain BUY on Coal India with an unchanged TP of Rs520, valuing the stock at 5.9x EV/EBITDA (in-line with its LTA).

Lower-than-expected performance: FSA volume rose 8.4% y/y to 159.7m tonne (in-line with ARe), while e-auction volume missed miss to ARes at 22.8m tonne (up 47.7% y/y), possibly led by time lag between order booking and recognition. Revenue grew 20.9% y/y to Rs441.8bn, while blended ASP rose 7.3% y/y to Rs2,346/tonne. E-auction premium at 41% (down 600bps q/q). Reported EBITDA/Adj. EBITDA came in at Rs84.9/73.9bn (both lower than ARe).

H1 capex at 109% of planned outlay: The company registered ~27% y/y growth in capex to Rs79.7bn with key focus on strengthening mining infrastructure, acquiring land, procuring HEMM and advancing diversification projects. Mine-to-loading capex stood at Rs65.8bn (~82.6% of total outlay). With company undertaking multiple FMC projects with Rs256bn outlay by FY29, seven railway projects under development and strategic diversification projects i.e., Talcher Fertilisers and coal gasification etc. would eventually help company to inch towards 1bn tonne offtake in the coming years. 

Outlook and Valuation: Our FY27 offtake estimate of 799m tonne is substantially below COAL’s guidance of 850m tonne, which offers enough cushion to our estimates. Coal continues to remain a major energy source in India and with COAL being at centre of it benefits the most. We maintain BUY rating on the stock with a TP of Rs520, valuing it at 5.9x Sep-28 EV/EBITDA.

Key Risks: (a) Lower offtake; (b) higher RE share in power generation; and (c) lower e-auction volume and premium.

Nike’s After Dark Tour Collection Turns Race Day Into A Style Statement In Mumbai

* 250+ women runners, athletes, Nike Run Coaches, and one Nike run-way bringing performance and style together as the city counts down to race night.

The road to race night took a stylish turn in Mumbai as Nike After Dark Tour (ADT) brought the city’s women running community together at Wings Arena, Bandra, transforming the running track into a run-way for an evening celebrating performance, style and self-expression. The experience unveiled the Nike ADT Collection through a fashion-forward, running-inspired runway showcase, athlete appearances and a community run, as the countdown to race night continues.

Run culture around the world is redefining what it means to dress for running, having performance product merge with style and identity. What she wears to the start line now says as much about her as her finish time: who she is, who she runs with and the community she has made her own.

Styled by Indian creative director and fashion stylist Chandni Sareen, the Nike ADT run-way brought that idea to life. Signature Nike ADT Collection pieces were layered with local textures, patterns and design details inspired by the city, showing how runners can mix performance product with their own personal aesthetic, on the course and beyond.

“The idea was to take the energy of running and interpret it through the lens of Mumbai. We played with layers, textures and design details inspired by the city to show how performance pieces can move beyond the track and become a form of style and self-expression. Ultimately, it was about celebrating the women of ADT and the confidence to express who they are, on and off the track,” said Chandni Sareen.

Nike athlete and Indian table tennis player Manika Batra led the line-up along with Nike ADT Global Ambassador and On Tour Club Founder Sahirah Oshidar, Nike Run Coaches Mishti Khatri and Akshata Pai, and other members of the Mumbai running community. Together, they showcased the versatility of the collection through looks that moved seamlessly between performance and lifestyle.

“Running has always been about pushing myself, but I also believe you should feel like yourself while doing it,” saidManika Batra. “I love that the Nike After Dark Tour gives women a space to bring both performance and personality to the start line.”

At the heart of the looks was the Nike ADT Collection, featuring performance-ready apparel alongside playful lifestyle looks, all designed to help athletes feel confident and comfortable from the start to finish line, and beyond.

The collection features a distinct hyper-pink colorway as the showstopper, mixed with black, grey and white options providing choice for styling bold head-to-toe color block looks, or unique mix and match layering. The generous range of shorts, tights, sports bras, crops, tees, sleeveless, rugby-style pull overs, and hoodies, mean the personalization options are endless.

While the colors offer choice, the bold ADT graphics are instantly recognizable, a nod to the cities of the global tour, connecting all runners as one global community.

Completing the looks are Nike road running silhouettes including the Pegasus Plus 2, Pegasus 42 and Vomero 18 in ADT-specific colorways, alongside styles from Nike’s racing DNA, including the Moon Shoe and Skylon 11.

For Sahirah Oshidar, whose On Tour Club is part of Mumbai’s growing running culture, the experience reflects what makes After Dark Tour about more than the kilometers.

“Running has given me a community, a sense of belonging and a space to show up as myself. That’s what makes Nike After Dark Tour so special, it brings women together and gives everyone their own reason to run, to move, while still making you feel part of something bigger,” said Sahirah Oshidar. “With this collection, we are not only celebrating as a community of female runners in Mumbai, but also connected to a global community of ADT runners, from LA to, Mexico, London, Sydney and more.”

The run-way was followed by a 3km community run led by Nike Run Coaches Mishti Khatri and Akshata Pai, giving women another opportunity to build towards race night together, while strengthening the connections that have come to define the ADT community in Mumbai.

The evening marked another milestone in a 12-week training program bringing women together through speed sessions, long runs, strength, recovery and community runs. More than preparing for the finish line, the journey is designed to help women build confidence, find community and define progress on their own terms.

Nike ADT Mumbai takes place on December 12, 2026, with slots all sold out. But don’t worry! Can’t be part of the race? You can still come and cheer for the women winning the night from the sidelines, and you can also sign up for the Nike Run Club and download the app to be a part of the Nike running community.

The looks are ready. The training continues. Next stop: race night.

Assets

Nike After Dark Tour Collection Launch Event Imagery Here

Nike After Dark Tour Collection

The After Dark Tour Collection is now available at select Nike stores across Mumbai, Footlocker Thane as well as online at https://www.nike.in/ and on Nykaa Fashion.

Nike After Dark Tour Run-Way Talent List

Manika Batra - Indian Table Tennis Player and Nike Athlete

Sahirah Oshidar - Nike ADT Global Ambassador and On Tour Club Founder

⁠Mishti Khatri - Nike Run Coach

Akshata Pai - Nike Run Coach

⁠Shivani Rajput - Nike ADT Pacer

⁠Isha Pawar - Nike ADT Pacer

⁠Manisha Joshi - Nike ADT Pacer

⁠Sindhu Umesh - Nike ADT Pacer

⁠Diksha Sharma - Nike ADT Pacer

Jyothi Poojari - Nike Pacer and National Sprinter

⁠Aalisha Shah - Nike ADT Pacer and Run Bay Club Founder

⁠Trisha Aggarwal - Nike EKIN and Pacer

⁠Aditi Pai - Nike ADT Pacer

⁠Prableen Kaur Gill - Indian Street Lifter and Calisthenics Athlete

⁠Neha Guglani - On Tour Club

After Dark Tour Information

To get more updates on ADT Mumbai, follow Nike Running on social media at @nikerunning.

For more info for race day and FAQs, head to https://afterdarktourmumbai.nike.in

NOTE: As a brand that champions and celebrates all athletes*, Nike created the After Dark Tour to invite more women into sport, fostering a sense of community and self-expression. Nike welcomed thousands of women to the After Dark Tour starting lines in 2025, and the brand looks forward to encouraging even more women to run in 2026. Nike appreciates runners’ partnership in honoring the intent of the race series; participation and eligibility rules vary according to local laws and regulations. As registration opens, runners can check the race participation and eligibility requirements for each city.

*If you have a body, you are an athlete.