Indian Companies Report Mixed Q2 Earnings, Unveil Major Strategic Moves and Expansions

Global markets and GIFT Nifty suggest a subdued opening for Indian indices. Several prominent Indian companies have made significant announcements and released their financial results for the September quarter (Q2 FY26).

Hindustan Unilever Limited (HUL) has received approval from the National Company Law Tribunal (NCLT) to demerge its ice cream business into Kwality Wall’s India (KWIL). This move formally separates its ice cream operations from its core Fast-Moving Consumer Goods (FMCG) portfolio.

Hyundai Motor India reported a 14% year-on-year rise in net profit to Rs 1,572 crore, driven by cost control and higher exports, though revenue grew only 1% to Rs 17,155 crore. It beat profit estimates but missed revenue expectations.

ITC Limited posted a nearly 3% year-on-year profit growth to Rs 5,126 crore, but its revenue declined 1.3% to Rs 21,256 crore, partly due to GST transition issues. The company surpassed street estimates on both profit and revenue.

United Spirits showed strong performance with a 36.1% year-on-year jump in net profit to Rs 464 crore and an 11.6% revenue increase to Rs 3,173 crore, exceeding Bloomberg consensus estimates, supported by brand strength and market re-entry.

NTPC Limited reported a 3% rise in net profit to Rs 5,225.30 crore, aided by lower expenses, indicating stable operations.

Swiggy's net loss widened by 74.4% year-on-year to Rs 1,092 crore, despite a 54% surge in revenue to Rs 5,561 crore. The company managed to narrow its loss sequentially, but expansion costs for Instamart are impacting margins.

Larsen & Toubro (L&T) has announced plans to expand its data center capacity sixfold to 200 MW, capitalizing on India's growing digital infrastructure demand.

Reliance Industries has partnered with Google to accelerate artificial intelligence adoption in India, offering Jio users free access to Google's AI Pro plan for 18 months.

Canara Bank reported a robust 19% year-on-year increase in net profit to Rs 4,773.96 crore, driven by improved asset quality. Net interest income saw a slight decline, while other income grew significantly.

DLF Limited registered a 15% decline in consolidated net profit to Rs 1,180.09 crore due to lower revenue from operations compared to the previous year.

Impact: These announcements and results provide insights into the performance of key sectors like FMCG, automotive, power, banking, real estate, and technology. The strategic partnerships and expansion plans by L&T and Reliance Industries indicate future growth drivers in digital infrastructure and AI. United Spirits' strong performance and HUL's restructuring could influence investor sentiment in consumer stocks. The mixed results from other companies highlight varying challenges and opportunities across different industries. Overall, these developments are significant for investors tracking Indian corporate health and strategic direction. Impact Rating: 8/10

Difficult Terms: National Company Law Tribunal (NCLT): A quasi-judicial body in India that adjudicates issues related to companies. Demerge: To separate a company or business unit from a larger parent company. Fast-Moving Consumer Goods (FMCG): Everyday food and drink, toiletries, and other household items sold quickly. Consolidated Net Profit: The total profit of a parent company and its subsidiaries after eliminating intercompany transactions. Bloomberg Estimate: A forecast of a company's financial results made by analysts at Bloomberg. GST Transition Issues: Problems or disruptions arising from the shift to the Goods and Services Tax regime. Street Estimates: Financial forecasts for a company made by securities analysts. Net Interest Income (NII): The difference between the interest income a bank generates from its lending activities and the interest it pays out to depositors. Other Income: Revenue generated by a company from sources other than its primary business operations. Net Interest Margin (NIM): A financial ratio that measures a bank's net interest income divided by its average earning assets. Fiscal Year (FY): A 12-month period for which a company or government prepares its accounts. Instamart: A service, likely referring to Swiggy's quick commerce delivery platform. Margins: The difference between revenue and cost, expressed as a percentage of revenue. Quick Commerce: A model of e-commerce that focuses on delivering goods in a very short period, typically under an hour. Artificial Intelligence (AI): Technology that enables machines to perform tasks that typically require human intelligence. Consumer Segments: Areas of the market that involve goods or services purchased by individual consumers. Enterprise Segments: Areas of the market that involve goods or services purchased by businesses. Gemini 2.5 Pro: A specific advanced model of Google's AI large language model. Notebook LM: A research and writing assistant tool powered by AI.

Impact: This news will impact the Indian stock market by providing investors with crucial data on the performance and strategic direction of major listed companies across various sectors. It will influence investment decisions and stock valuations.