Indian Stocks to Watch: Q2 Results, Major Metro Order, and Global Cues

Indian equity benchmarks are expected to open flat as global cues remain mixed. Asian markets traded higher, while US markets closed with weekly gains. Investors will be closely watching several key stocks today.

**Company Performance Highlights: ** * **Auto Sector:** Reported robust sales in October, driven by festive demand. Maruti Suzuki sold 2.20 lakh units, Hyundai sold 69,894 vehicles, and Tata Motors' passenger vehicle sales increased by 27% to 61,134 units. TVS Motor registered sales of 5.43 lakh units, and Escorts Kubota saw a 3.8% rise in tractor sales. * **Bharat Petroleum Corporation (BPCL):** Posted a consolidated net profit of ₹6,191.5 crore for Q2FY26, a 169.5% jump from the previous year, with revenue up 2.1%. * **Bank of Baroda:** Reported a net profit of ₹4,809.4 crore in Q2FY26, an 8.2% increase year-on-year, with net interest income growing 2.7%. Gross and net NPAs improved quarter-on-quarter. * **Godrej Consumer Products:** Saw a 6.5% decline in profit to ₹459.3 crore, though revenue grew 4.3%. * **JK Cement:** Reported a 27.6% rise in profit to ₹160.5 crore and an 18% increase in revenue for Q2FY26. * **Tata Chemicals:** Profit fell sharply by 60.3% to ₹77 crore, with revenue down 3% YoY, also reporting an exceptional loss. * **RR Kabel:** Profit more than doubled, surging 134.7% to ₹116.3 crore, with revenue up 19.5%. * **Patanjali Foods:** Reported a strong Q2FY26 with profit up 67.4% to ₹516.7 crore and revenue increasing 21%.

**Major Order and Tax Notice:** * **Titagarh Rail Systems:** Secured a ₹2,481 crore order from the Mumbai Metropolitan Region Development Authority (MMRDA) for Mumbai Metro Line 5, including the manufacturing of 132 metro coaches. * **Hindustan Unilever (HUL):** Received a demand notice of ₹1,986 crore from the Income Tax Department for FY2020–21, related to transfer pricing and depreciation. The company plans to challenge the order, stating it will not materially impact its operations.

Impact: Individual stock prices are likely to be influenced by these results and the major order win. Strong performances by BPCL, RR Kabel, Patanjali Foods, JK Cement, and Bank of Baroda could boost their respective stocks. The Titagarh Rail order is a significant positive for the railway infrastructure sector. HUL's tax notice poses a short-term concern, although the company's clarification suggests limited financial impact. Rating: 7/10

**Explanation of Difficult Terms:** * **GIFT Nifty:** A derivative product based on the Nifty 50 index, traded on the Singapore Exchange, often used as an indicator for the Indian stock market's opening. It represents Indian equity market sentiment traded offshore. * **PMI (Purchasing Managers' Index):** An economic indicator derived from monthly surveys of private sector companies, providing insights into business conditions in sectors like manufacturing and services. * **Consolidated Net Profit:** The total profit earned by a company and all its subsidiaries after deducting all expenses and taxes. * **Revenue:** The total income generated from the sale of goods or services related to the company's primary operations. * **YoY (Year-on-Year):** A method of comparing data from a specific period with data from the same period in the previous year to assess growth or decline. * **Q2FY26 (Second Quarter of Financial Year 2025-2026):** Refers to the three-month period from July to September 2025, which is the second quarter of India's fiscal year. * **FMCG (Fast-Moving Consumer Goods):** Products that are sold quickly and at relatively low cost, such as packaged foods, toiletries, and beverages. * **Transfer Pricing:** The accounting practice of assigning a price to the goods, services, and intangible property that are transferred between related entities within a company (e.g., between parent and subsidiary). * **Depreciation:** The systematic allocation of the cost of a tangible asset over its useful life, representing the decrease in its value over time. * **GNPA (Gross Non-Performing Assets):** Loans or advances where the principal or interest payment has remained overdue for a specified period, typically 90 days. * **Net Interest Income (NII):** The difference between the interest income earned by a bank from its lending activities and the interest paid out to its depositors. * **Exceptional Loss:** A loss incurred from events or transactions that are clearly distinct from the ordinary activities of a business and are not expected to recur regularly.