Stocks to Watch Today (Oct 27): Tata Consumer, Paytm, Sona BLW, REC, Persistent Systems and more

Stocks to watch on Tuesday, October 27: Shares of Tata Consumer Products, Paytm, Sona BLW Precision Forgings and REC will be in focus after their quarterly results. Persistent Systems and Genus Power Infrastructure will also be on investors' radar following corporate announcements. Several Nifty and futures and options (F&O) companies, including Bajaj Auto, Cipla, Larsen & Toubro, Maruti Suzuki and Tata Steel, are scheduled to announce their results.

Stocks to watch: Results today

Tata Consumer Products

Tata Consumer Products reported a 14 per cent year-on-year rise in consolidated revenue to Rs 5,661 crore. EBITDA increased 17 per cent to Rs 784 crore, while the EBITDA margin improved to 13.8 per cent from 13.5 per cent. Net profit rose 16 per cent to Rs 469 crore.

The results were broadly in line with estimates. Revenue was expected at Rs 5,605 crore, EBITDA at Rs 774 crore and profit after tax (PAT) at Rs 462 crore.

The company's India branded business recorded underlying volume growth of 11 per cent, in line with estimates. Its growth businesses expanded 40 per cent, above the expected 30 per cent. Salt revenue grew 15 per cent, while India tea volumes remained flat.

Tata Sampann recorded 57 per cent revenue growth. The ready-to-drink business grew 47 per cent. Capital Foods and Organic India reported combined sales of Rs 409 crore, above the expected range of Rs 320-350 crore. Tata Starbucks revenue increased 15 per cent, marking a multi-quarter high, supported by strong same-store sales growth.

Management commentary: The company maintained its target of annual margin expansion of 50-70 basis points beyond the impact of commodities. It also retained its target of 30 per cent growth in growth businesses and expects margin expansion in the second half on a year-on-year basis. The company is targeting mid-to-high single-digit growth in its tea and salt businesses.

Paytm

One 97 Communications, the parent company of Paytm, reported an 8 per cent quarter-on-quarter rise in consolidated revenue to Rs 2,648 crore in Q2FY27. EBITDA increased 33 per cent to Rs 270 crore, while the margin rose to 10.1 per cent from 8.3 per cent.

Profit after tax stood at Rs 225 crore, compared with Rs 220 crore in the previous quarter. Revenue was broadly in line with the estimate of Rs 2,630 crore. EBITDA and PAT were below estimates of Rs 290 crore and Rs 270 crore, respectively. The company reported an exceptional loss of Rs 4 crore in the quarter, compared with a loss of Rs 190 crore in the previous quarter.

Paytm said its gross transaction value growth was 2.2 times the industry rate. Its user base increased by 1 crore year-on-year to 8.5 crore, the highest level in around three years.

Management commentary: Paytm said it continued to deliver revenue growth and margin expansion, which it expects to support long-term profit growth. The company said any upside from UPI merchant discount rate (MDR) would add to revenue and profit, but would not be the core foundation of its business. It sees a potential improvement of around 2.5 basis points in its overall payments processing margin. Revenue from marketing services grew 26 per cent year-on-year.

The company will invest up to Rs 500 crore each in Paytm Cloud Technologies and Paytm Singapore.

Sona BLW Precision Forgings

Sona BLW Precision Forgings reported a 35 per cent year-on-year rise in consolidated revenue to Rs 1,536 crore in Q2FY27. EBITDA increased 22 per cent to Rs 345.6 crore, while PAT rose 29 per cent to Rs 223 crore.

Revenue, EBITDA and PAT exceeded estimates of Rs 1,390 crore, Rs 322 crore and Rs 194 crore, respectively. However, the EBITDA margin declined to 22.5 per cent from 24.9 per cent and came in below the estimated 23.2 per cent.

The company reported its highest-ever quarterly revenue, EBITDA, PAT, battery electric vehicle (BEV) revenue and BEV revenue share. BEV revenue surged 129 per cent year-on-year and accounted for a record 51 per cent of automotive revenue.

Strong order additions of Rs 36 billion took the net order book to Rs 251 billion, the second-highest level recorded by the company.

REC

REC reported standalone net interest income (NII) of Rs 5,135 crore in Q2FY27, down around 6 per cent year-on-year from Rs 5,445.5 crore. The figure was below the estimated Rs 5,516 crore.

Net profit declined 23 per cent to Rs 3,391 crore from Rs 4,426 crore. The reported profit was in line with the estimate of Rs 3,391 crore.

Despite the decline in NII and profit, the company reported strong business growth. REC recorded asset growth of around Rs 26,537 crore in the quarter, led by an increase of Rs 8,064 crore in its renewable energy portfolio.

The renewable energy portfolio grew 27 per cent year-on-year to Rs 86,660 crore. Power-sector disbursements stood at Rs 53,541 crore during the quarter and Rs 79,207 crore in the first half of the financial year.

Other results and F&O stocks in focus

KFin Technologies and Mankind Pharma

KFin Technologies and Mankind Pharma are among the F&O stocks to watch as investors track their quarterly results.

Stocks scheduled to announce results

The following Nifty companies are scheduled to announce their results on Tuesday:

Bajaj Auto: Post-market

Cipla: 1 pm to 3 pm

Larsen & Toubro: Post-market

Maruti Suzuki: 1 pm to 3 pm

SBI Life Insurance: 12 pm to 3 pm

Tata Steel: Post-market

Other F&O stocks scheduled to announce results or updates include Indus Towers, Max Financial Services, Radico Khaitan, PG Electroplast, Steel Authority of India, Mazagon Dock Shipbuilders and Waaree Energies.

Indus Towers and Steel Authority of India are scheduled to announce results post-market. Mazagon Dock's results are expected between 1 pm and 3 pm. The timing for Max Financial Services, Radico Khaitan and PG Electroplast is variable, while Waaree Energies is scheduled to report post-market.

Bajaj Holdings & Investment: Tuesday is the last trading day for the stock in the F&O segment. The stock will be removed from the November F&O series.

Corporate actions and ex-date updates

L&T Technology Services

L&T Technology Services will turn ex-dividend for an interim dividend of Rs 20 per share.

Avalon Technologies

Avalon Technologies' board will consider raising funds through a preferential issue.

FDC

FDC's board will consider a share buyback along with its quarterly results.

Sky Gold and Diamonds

Sky Gold and Diamonds' board will consider raising funds through a qualified institutional placement (QIP) or private placement, along with its results.

Stocks in news

Persistent Systems

Persistent Systems has closed its qualified institutional placement (QIP) at an issue price of Rs 5,550 per share. This is a 3.66 per cent discount to the floor price of Rs 5,761.

The company plans to raise Rs 4,265 crore through the QIP.

Genus Power Infrastructure

Genus Power Infrastructure's board has approved a share buyback proposal worth around Rs 148 crore. The buyback has been approved at Rs 312 per share.

Defence stocks

Defence stocks will be in focus after the Defence Acquisition Council (DAC) approved proposals for defence procurement worth around Rs 2.12 lakh crore for the three services.

The approved proposals include high-mobility vehicles, self-propelled tracked gun systems, light multi-role helicopters (LMRH), and an integrated surveillance and strike system.

Raymond Realty

Raymond Realty's subsidiary, Ten X Realty West, will raise Rs 210 crore from a real estate alternative investment fund managed by ICICI Prudential Asset Management Company.

Raymond Realty and ICICI Prudential Real Estate Development Fund will both act as financial investors. The investment will be made in Ten X Realty West for a Raymond Realty project in the Mumbai Metropolitan Region (MMR).

Blue Dart Express

Blue Dart Express has launched 'International Parcel Connect' to serve India's global e-commerce requirements.

Titagarh Rail Systems

Titagarh Rail Systems has postponed its board meeting scheduled for October 29 due to unavoidable circumstances.

Cash-market stocks to watch

The following companies are also on the watchlist as they report results or remain in focus: