Top 5 Stocks That Could Recover Margins in Q2 FY27 to Keep an Eye On
With the earnings season for Q2 FY27 just around the corner, margins will emerge as a significant monitorable for the investment community. Whereas some companies are still struggling with cost challenges, other firms have certain margin catalysts in place that could positively impact their bottom line. Here are the five stocks that could experience a change in margins this September.
1. Havells India
Havells India Ltd. is a pioneer in the electrical equipment industry and has its reach across products ranging from cables & wires, switch gears, lights, fans, home appliances, and consumer durables. The product range of the company includes products under Havells, Lloyd, Crabtree, and Standard Electricals brands. The firm operates in the residential, commercial, and industrial segments through its wide distribution channel.
Also Read: Mukul Agrawal-Backed Wendt India Eyes $120 Mil Market: Can Solar, Semiconductor and Medical Demand Unlock Scalable Growth?
Q2 FY27 trigger: Q2 will be watched for the impact of price actions, cost pass-through and operating leverage. The key monitorable is whether margins improve sequentially as pricing catches up with higher copper, aluminium and other input costs.
2. Jubilant FoodWorks
Jubilant FoodWorks is the owner of some of the most successful food service brands, where Domino’s Pizza is its biggest brand in India. The company also owns Popeyes and many more restaurant brands across different markets. The firm has established a huge store chain that has been facilitated through deliveries and dine-in services, among others.
Q2 FY27 trigger: The September quarter is expected to be important for margin recovery, with better Domino’s demand, improving store productivity and operating leverage potentially supporting profitability. Investors will track whether the expected improvement in demand translates into stronger restaurant-level margins.
3. Indian Oil Corporation
Indian Oil Corporation is an integrated oil and gas corporation that engages in refining, marketing of petroleum products, pipeline transportation, petrochemicals, gas, and alternative energies. It runs a vast network of refineries and retail fuel business in India. The profitability of Indian Oil Corporation depends on refining margins, fuel marketing margins, crude oil prices, and domestic fuel consumption.
Q2 FY27 trigger: The key Q2 trigger is the expected recovery in petrol and diesel marketing margins. Industry estimates point to a sharp sequential improvement, although LPG under-recoveries and elevated crude prices could limit the overall margin benefit.
4. Bharat Petroleum Corporation
Bharat Petroleum Corporation Limited is a fully integrated petroleum company involved in refining, fuel marketing, LPG, aviation fuel, lubricants and various other energy sectors. It has refining operations and a large chain of retail outlets spread throughout India. It is profitable due to refining margins, fuel marketing profitability, crude oil prices, and LPG under recoveries.
Q2 FY27 trigger: BPCL could see a sequential margin recovery from stronger petrol and diesel marketing spreads. However, LPG losses remain an important offset. The Q2 outcome will therefore depend on how much of the improvement in auto-fuel margins flows through to overall profitability.
Also Read: OptiValue Tek stock gains 5% after receiving revised order worth ₹64 Cr from Aroosha Tech
5. Hindustan Petroleum Corporation
Hindustan Petroleum Corporation is one of the big downstream players that engage in refining, marketing of petroleum products, LPG business, lubricants business, and others. The company owns refineries and has an extensive network of fuel retailers across the country. Its profits depend on crude oil prices, refining margins, and spreads on petrol and diesel marketing and LPG business.
Q2 FY27 trigger: HPCL's September quarter will be closely watched for improvement in petrol and diesel marketing margins. Current estimates suggest a significant recovery in OMC marketing economics, although LPG losses and crude-price volatility could restrict the benefit.