Downgrade to Reduce from Hold , Target cut to Rs 4,750 vs Rs 5,840
Revenue in-line at INR 31.4bn (+7% YoY, -7% QoQ); EBITDA/PAT missed by 10%/15% due to higher raw material and staff costs.
FY26 guidance below expectations:
India business to grow 8–9%,
FY27 tax rate to rise to ~35% as Sikkim tax benefit expires;
With India WPI under control, we reckon NLEM portfolio growth shall remain subdued, limiting the growth of India business.
Cut FY26E/FY27E EPS by 4%/28%; adjusted FY27 EPS cut by 11%.