1Q Preview: Selective resilience in a soft quarter

Research evidence excerpt

1Q Preview: Selective resilience in a soft quarter

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Industrials - India

1Q Preview: Selective resilience in a soft

quarter

Price Objective Change

Industrials: soft execution, resilient earnings 08 July 2026

We expect a seasonally soft quarter for industrials, with revenue growth of 8% YoY, Equity

impacted by lower seasonality and spillover effects from the West Asia crisis. Despite India

weaker execution, we expect 12% YoY earnings growth, supported by operating leverage/ Industrials/Multi-Industry

lower interest costs in select cases, even margins remain under pressure for several

companies. We expect Cummins, ABB and BEL to report relatively stronger earnings growth, Amish Shah, CFA >> Research Analyst

while L&T and Siemens could see softer profitability; BHEL losses should moderate YoY, BofAS India

but we still expect results to disappoint versus optimistic Street expectations. See Exhibit 1 +91shah.amish@bofa.com22 6632 8656

for PO changes in this report. Udit Dhekale >>

L&T: Order announcements remain soft at Rs233bn. We expect ex-services order ResearchBofAS IndiaAnalyst

inflows of Rs585bn, implying a 24% YoY decline, partly due to a high base. Execution is udit.dhekale@bofa.com

likely to remain muted, with 7% YoY revenue growth, as supply-chain, logistics and Manya Kakkar >>

commodity pressures weigh on the core business. P&M margins could contract 80– Research Analyst BofAS India

100bps YoY, though lower interest costs post Hyderabad Metro divestment should manya.kakkar@bofa.com

support 9% YoY recurring earnings growth. KKC: Expect 14% YoY revenue growth and Rithik Dhiman >>

16% YoY recurring earnings growth, as operating leverage and cost efficiencies offset Research Analyst BofAS India