A series of post-earnings commentary from top brokerages have spotlighted key stocks including Glenmark Pharma, Fusion Microfinance, Nazara Technologies, Brainbees (FirstCry), and Aditya Birla Fashion, among others.
CLSA on Fusion Microfinance: Underperform, TP ₹155
CLSA maintained an underperform rating on Fusion Fin, citing limited forward guidance from the management, which includes a newly appointed CEO. The brokerage noted that disbursement trends for Q1FY26 are expected to remain similar to Q4 levels.
While the company has maintained a high provision coverage ratio (PCR) of 96.5% on its Stage 3 pool (7.9% of AUM), net slippages in the past two quarters were higher at 13–14% annualised, compared to CA Grameen’s 11%. Write-offs were nearly three times those of CA Grameen. CLSA is currently building in 7% AUM growth and a 6% credit cost for FY26, but sees comfort in the company’s successful rights issue.
Morgan Stanley on Brainbees (FirstCry): Overweight, TP ₹574
Morgan Stanley retained its overweight stance on Brainbees following a solid Q4 showing. GMV rose 14% YoY, while revenue and adjusted EBITDA (excluding share-based expenses) grew by 16% and 20% YoY, respectively.
For the first time, the company disclosed that apparel and footwear accounted for 52% of India multichannel GMV in FY25. Meanwhile, the share of homegrown brands rose to 55%, compared to 37% in FY20. Despite a revenue miss across segments, the core Brainbees business stood out.
HSBC on Glenmark Pharma: Buy, TP ₹1,720
HSBC maintained a buy rating on Glenmark Pharma despite a weak Q4, which included operational misses and one-offs that dragged reported profit. However, the brokerage believes that the India and US businesses — which contribute a combined 56% of FY25 revenue — have likely bottomed out.
HSBC highlighted that a potential outlicensing deal for the investigational drug ISB 2001 remains a key catalyst for a valuation re-rating.
HSBC on IT sector: Mixed outlook
HSBC noted that Indian IT firms have seen a drop in cash conversion metrics during FY25, with mid-tier companies underperforming their larger counterparts. While market valuations still favour topline growth, HSBC pointed to rising investor focus on earnings quality. TCS saw a gradual decline in conversion, while Coforge and Persistent Systems remained the weakest.
Jefferies on AB Fashion: Buy, TP ₹100
Jefferies reiterated a buy call on Aditya Birla Fashion, noting a well-rounded Q4 performance. The brokerage cited strong margin expansion in Pantaloons, a significant reduction in losses from TMRW, over 40% growth in the ethnic wear segment (excluding TCNS), and healthy same-store sales across lifestyle brands. However, the net cash position came in below estimates.
CLSA on Nazara Technologies: Underperform, TP ₹705
CLSA remained cautious on Nazara after the gaming and e-sports company missed Q4 estimates. Revenue and EBITDA fell 3% sequentially. While FY25 revenue surged 43% YoY to ₹16.2 billion, margins declined by 179 basis points to 9.4%.
The brokerage cut FY26–27 revenue and profit estimates by 2–9%, factoring in continued pressure and excluding the pending Curves Games acquisition. Nazara’s e-sports revenue rose 21% YoY, while its real-money gaming associate PokerBaazi posted a 39% YoY rise in revenue, but remained loss-making.
Disclaimer: This report is for informational purposes only. Business Upturn does not offer investment advice or stock recommendations. Readers are advised to consult a certified financial advisor before making any financial decisions.
