Earnings Central: Solara's best quarter in 5 years, LTM's AI gains and Federal Bank's solid Q2

A busy Friday for Q2 earnings: LTM's AI revenue jumped 47%, Solara Active Pharma posted its best quarter in five years, DLF's profit rose despite weaker revenue, and Federal Bank delivered solid growth. Here's your earnings wrap.

It has been another busy Friday in the earnings season, with a little bit of everything on the table. IT companies are finding new ways to talk about AI growth, banks are reporting steady numbers with a few details worth watching, and consumer businesses are showing what strong execution can deliver. There was also a pharma turnaround that caught the market's attention. The big private banks report tomorrow, but there was plenty to unpack before the weekend.

IT: AI moves from promise to numbers

For LTM Limited, formerly LTIMindtree, the September quarter was a mixed bag. Revenue rose 2% sequentially to ₹11,807.6 crore and EBIT grew 2.2%, while net profit slipped 5%. The more encouraging number came from its AI business, with Enterprise AI and Business AI revenue together growing 47% year on year. CEO Venu Lambu also pointed to the addition of a new financial services client to the $100 million-plus category. Shareholders had another reason to cheer, with the company declaring an interim dividend of ₹25 per share.

Wipro, meanwhile, offered a glimpse into how it sees demand shaping up in the months ahead. Speaking to CNBC-TV18 after Thursday's results, CEO Srini Pallia said the deal pipeline remained robust and broad-based, with a significant share coming from new clients and AI-led opportunities.

"Expect a good Q3 in terms of bookings," he said. It was a measured but encouraging signal from a company still navigating a cautious demand environment.

Banking: Steady progress, with a few numbers to watch

Federal Bank delivered a solid quarter, with core income rising 26.4% year on year to ₹3,153.4 crore. Asset quality improved too, as gross non-performing assets (GNPA) fell to 1.32% from 1.52% in the previous quarter. Management reiterated its NIM guidance and expects a further improvement of 5 to 6 basis points. The bank is also evaluating external commercial borrowing options and has a $500 million medium-term note programme ready. On the much-discussed possibility of acquiring Jana Small Finance Bank, however, it offered little by way of fresh detail.

Punjab National Bank (PNB), which announced its results after market hours, reported a 13% year-on-year rise in net profit to ₹5,532 crore. NII grew 11% to ₹11,601 crore, while lower provisions helped support the bottom line. One number deserves a closer look: fresh slippages increased to ₹2,395 crore from ₹2,080 crore in the previous quarter.

Ujjivan Small Finance Bank had a particularly strong quarter, with net profit nearly tripling year on year to a record ₹365 crore and NII rising 35.4%. Its board also approved a preferential issue of about ₹409 crore, with the International Finance Corporation (IFC) set to be the largest allottee. Bajaj Housing Finance rounded off the housing finance updates with a 17.7% increase in net profit to ₹757 crore. Asset quality remained stable, with GNPA at 0.29%.

Consumer and industrials: Crompton delivers, Solara turns around

Crompton Greaves Consumer Electricals had plenty going for it this quarter. Revenue rose 18% to ₹2,263 crore, beating estimates, with double-digit growth across all segments. Its fans business returned to double-digit growth after nine consecutive quarters, helped by the adoption of brushless direct current (BLDC) technology. Exports were another bright spot, with the company recording its highest-ever quarterly export sales. Commodity inflation remains a pressure point, but the overall performance suggests execution is holding up well.

Solara Active Pharma was one of the day's standout market stories. Its shares jumped nearly 18% from their intraday low after the company reported its best quarter in five years. Net profit swung to ₹28.5 crore from a loss of ₹10 crore a year earlier, while EBITDA more than doubled and margins widened to 18.4% from 11%.

Real estate: Profit growth meets a softer topline

DLF's September quarter offered a reminder that profit and revenue do not always move in tandem in real estate. Net profit attributable to owners rose 10.3% year on year to ₹1,301 crore, even as revenue declined 23.3% to ₹1,261 crore. Property sales, construction progress and the timing of revenue recognition can all influence quarterly numbers, so the softer topline needs to be viewed in context.

Oberoi Realty also reported a softer revenue quarter, with the figure declining 6%. Operating margins, however, widened to nearly 61%, offering some support to the overall picture. In a sector where project mix and the timing of handovers can make quarterly performance uneven, margins provide another useful measure of how the business is holding up.

What to watch

The weekend offers little time to catch our breath. HDFC Bank, ICICI Bank and Axis Bank are all due to report earnings, putting the spotlight firmly back on the private banking pack.