Whalesbook
Earnings Deep Dive
After opening higher, Indian equity benchmarks gave up a considerable portion of their intraday gains by the close of Friday's session. Profit-taking in heavyweight stocks and cautious sentiment prevailed as investors assessed a deluge of quarterly earnings reports. The Nifty50 ultimately settled with a marginal gain of 28.75 points, reaching 25,694.35, while the Sensex added 187.64 points to close at 83,570.35.
IT Sector Performance
Within the IT sector, Wipro reported a Q3FY26 with revenue up 3.78% to ₹23,555.8 crore, but net profit declined 3.91% to ₹3,119 crore, missing estimates. Margins also contracted by 139 basis points. LTIMindtree and Tech Mahindra also featured in the earnings calendar. Tech Mahindra's revenue rose 2.84% to ₹14,393.2 crore, though net profit fell 6.06%. However, Tech Mahindra saw its EBIT margin expand to 13.14% and recorded its highest quarterly deal booking in five years.
Reliance Industries and Jio Results
Reliance Industries posted a Q3FY26 net profit of ₹18,645 crore, a modest 2.6% increase year-on-year, on revenue that grew 4% to ₹2,64,905 crore. EBITDA remained flat. A key concern was the retail segment's EBITDA margin, which hit a 13-quarter low. Reliance Jio, however, reported inline results with revenue up 3% and net profit up 3% to ₹7,173 crore, supported by subscriber additions and tariff hikes, though ARPU growth slowed.
Banking Sector Watch
The banking sector presented a mixed picture. HDFC Bank reported an 11.5% year-on-year rise in net profit to ₹18,654 crore, with stable asset quality. ICICI Bank's net profit, however, saw a 4% decline to ₹11,318 crore, with elevated provisions. Yes Bank's net profit surged 55.4% to ₹952 crore, primarily driven by a sharp reduction in provisions. Other banks like UCO Bank, RBL Bank, IDBI Bank, and Punjab and Sind Bank also released their quarterly financials, showing varied performance in net interest income and profitability.
Other Corporate Activities
Beyond earnings, several companies announced significant developments. RVNL and GR Infra emerged as L1 bidders for substantial railway and NTPC orders, respectively. Ambuja Cements commenced operations at a new grinding unit, while Vedanta faced new mining demand notices and approved a corporate guarantee for an arm. Engineers India secured a large contract for an African refinery, and CG Power received a significant order for a US data center project.
IPO Market Activity
The IPO space saw continued interest. Bharat Coking Coal's public issue was subscribed an impressive 146.87 times ahead of its Monday debut. Amagi Labs' cloud-based tech offering also saw robust subscription, closing day 3 at 13.98 times.
Market Indicators
The Nifty January futures closed higher, indicating a premium. In currency markets, the Indian rupee depreciated significantly, falling 50 paise against the US Dollar to hover near an all-time low at 90.84, adding a layer of concern for importers and the broader economy.