Author: Sreelatha M

Shares of South Indian Bank (SIB) jumped nearly 19% on Monday to hit a 52-week high, driven by strong investor sentiment following the bank’s second-quarter results. The stock has now recovered about 70% from its March lows, supported by robust trading volumes and improved fundamentals.

The Kerala-based private lender reported an 8% rise in net profit to ₹351 crore for the quarter ended September 2025, compared with ₹325 crore a year earlier. While net interest income remained steady, the bank’s non-interest income and lower provisioning helped boost profitability.

Notably, the bank’s asset quality strengthened, with gross non-performing assets (GNPA) improving to 2.93%, down from 4.40% a year ago. However, net interest margins (NIM) slipped to 2.8%, reflecting some pressure on spreads.

Analysts said expectations of sustained profit growth, prudent lending, and renewed traction in retail and MSME segments underpinned the rally. Despite margin compression, the bank’s improving balance sheet and consistent earnings have bolstered investor confidence.

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Shares of Reliance Industries Ltd (RIL) climbed nearly 4% on Monday following the release of its Q2 FY26 results, which exceeded street expectations and triggered a wave of bullish calls from brokerages. The stock touched an intraday high of ₹1,473.80 before closing around ₹1,467.90 on the NSE, buoyed by gains across all major business verticals.

The conglomerate reported a 10% year-on-year increase in consolidated net profit to ₹18,165 crore. Revenue from operations grew 10% to ₹2.59 lakh crore, while gross revenue stood at ₹2.83 lakh crore. EBITDA rose 15% to ₹50,367 crore, and operating margins improved to 17.8% from 17% in the same quarter last year.

Segment-wise, the oil-to-chemicals (O2C) division posted a recovery, driven by improved refining margins and stronger petrochemical spreads. The retail segment saw continued growth in footfall and sales, while digital services, led by Jio, benefited from an expanding subscriber base and stable ARPU.

Capital expenditure during the quarter reached ₹40,010 crore, with ongoing investments across new energy, telecom infrastructure, and retail expansion. Despite high capex, net debt levels remained largely unchanged, maintaining the company’s balance sheet strength.

Chairman Mukesh Ambani stated that the quarterly performance reflects the resilience of India’s consumer demand and Reliance’s ability to drive structural growth across its diversified businesses.

Brokerages were quick to respond. Nomura reaffirmed its ‘Buy’ rating and raised FY26–27 EBITDA estimates by 4% and 12%, respectively, setting a target price of ₹1,700. Morgan Stanley echoed the positive outlook with a target of ₹1,701, citing strong positioning going into the festive quarter. HDFC Securities, JPMorgan, and Macquarie also maintained bullish views, highlighting key growth triggers including retail outperformance, telecom tariff potential, and the emerging new energy segment.

While analysts see Reliance as a long-term growth story, they advise a staggered investment approach given recent price gains. With festive demand and operational strength aligning, Reliance remains a strong contender in Diwali and year-end portfolios.

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Hindustan Zinc showed a rise in the second quarter of FY26 with a solid financial showing, reporting a 14% jump in net profit to ₹2,649 crore compared to ₹2,327 crore a year earlier. While revenue growth was more modest, ticking up by 3.5-4% to between ₹8,282 crore and ₹8,549 crore, it signals steady business momentum amid ongoing market challenges.

The company’s focus on controlling costs paid off, keeping expenses around ₹5,245 crore and lifting profit margins to a healthy 31%, up from 29% last year. Operational efficiency clearly took centre stage, supporting sustained earnings growth.

Production hit a record 258,000 tonnes of mined metal in the quarter, a slight 1% rise year-on-year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 7% to ₹4,467 crore, with the EBITDA margin steady at an impressive 52%, underlining strong operational discipline.

Silver was a shining star this quarter, contributing nearly 40% of total profits and reinforcing its role as a key earnings pillar. Meanwhile, zinc production costs fell to a five-year low of USD 994 per tonne, down 7%, further cushioning margins and creating a competitive edge.

Management credits this success to ongoing investments in technology, operational upgrades, and a growing emphasis on sustainability practices. Looking forward, the company is exploring exciting new avenues such as waste-to-value projects, enhanced circular resource use, and the emerging sector of energy-transition metals.

Despite the upbeat earnings, the stock experienced a mild dip post-results, a light pause amid its generally strong trend, buoyed in part by rising silver prices lately.

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Reliance Industries Ltd (RIL) delivered a strong performance in the second quarter of FY26, with consolidated net profit rising about 14% year-on-year to ₹22,140 crore. Growth was powered by continued strength across its oil-to-chemicals (O2C), telecom, and retail divisions.

Gross revenue rose 10% to ₹2.83 lakh crore, while operating profit (EBITDA) climbed nearly 15% to ₹50,367 crore, supported by improved margins from operational efficiencies and a favourable business mix.

Jio Platforms Ltd maintained its growth momentum, posting a 12.8% jump in net profit to ₹7,379 crore. Average revenue per user (ARPU) increased to ₹211.4, reflecting rising 5G adoption and new subscriber additions. More than 234 million users are now on its 5G network, accounting for half of all wireless data traffic.

Reliance Retail continued to expand aggressively, with revenue up nearly 19% and profit rising 21.9% year-on-year. The division added 412 new stores during the quarter, taking its footprint to 77.8 million sq ft across 19,821 outlets, boosted by demand in grocery, fashion, and electronics.

Chairman Mukesh Ambani said Reliance’s “resilient and broad-based performance” underscores its readiness for the next phase of growth across new energy, AI, media, and consumer technology. “Our businesses have delivered sustained momentum with strong domestic orientation,” he said.

The O2C segment posted modest revenue growth of 3.2% but saw a sharp 20.9% rise in EBITDA, thanks to firmer fuel margins and higher retail volumes. Downstream chemicals, however, remained under pressure from global oversupply.

Reliance’s oil and gas exploration business underperformed, with revenue slipping 2.6% due to lower production and softer condensate prices, though realized gas prices from the KG-D6 basin improved slightly.

Meanwhile, its digital and media arm JioStar saw profits more than double to ₹1,322 crore, reaching over 830 million users across platforms, a reflection of the group’s expanding digital ecosystem.

Capital expenditure rose to ₹40,010 crore, focused on telecom infrastructure, retail expansion, and renewable energy projects. Net debt stood at ₹1.18 lakh crore, while cash reserves increased to ₹2.3 lakh crore.

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The Union government has approved a key regulatory change that will allow Adani Power’s 1,600 MW Godda thermal plant in Jharkhand,  originally set up solely to supply electricity to Bangladesh, to now connect to India’s national power grid.

This marks a significant shift in the project’s mandate and unlocks the potential for Adani Power to supply electricity to Indian distribution companies (discoms), opening up a new domestic revenue stream.

The Ministry of Power issued the approval via a notification dated September 29, allowing the plant to link up with the 400 kV Kahalgaon–Maithon transmission line through a “line-in-line-out” (LILO) arrangement. The route will pass through 56 villages in the Godda and Poreyahat tehsils of Jharkhand.

Until now, the Godda plant operated under a Special Economic Zone (SEZ) structure with a binding power purchase agreement to export electricity exclusively to Bangladesh. The new move involved regulatory adjustments to accommodate cross-border electricity export rules, SEZ guidelines, and domestic transmission access.

To facilitate the grid connection, Adani Power has also been granted rights under the Indian Telegraph Act, enabling the company to lay transmission infrastructure across land parcels along the approved route.

The development was met with a positive response from investors, with Adani Power shares rising around 7% to hit a day’s high of ₹168 on the NSE on Friday, following the announcement.

Analysts see the approval as a long-term boost to the company’s operational flexibility and earnings potential. However, the project still faces ground-level challenges, including securing local clearances and managing the concerns of affected villages along the transmission line route.

The regulatory green light marks a new chapter for Adani Power and a notable shift in India’s energy policy landscape, although questions remain about when domestic supply will begin and whether it will take precedence over existing power exports to Bangladesh.

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