JM Financial Institutional Securities has released a series of post-results reports across industrial gases, electronics manufacturing, restaurants, real estate, and quick-service restaurants, outlining how pricing pressure, demand visibility, project execution, and cost movement shaped Q3FY26 outcomes.
The brokerage retained ‘Buy’ ratings across all four companies covered here, while revising assumptions and valuations where earnings visibility weakened, or timelines slipped. The analysis is based on company disclosures, management commentary, and updated estimates released between February 3 and February 5, 2026.
JM Financial on Ellenbarrie Industrial Gases: ‘Buy’
JM Financial said Ellenbarrie Industrial Gases reported a weaker-than-expected quarter as a sharper decline in argon prices weighed on gas realisations. Standalone revenue came in at Rs 81.3 crore, down 8.8% quarter-on-quarter, as oversupply from captive gas plants operated by steel manufacturers led to lower argon prices. JM Financial added that softer gas demand from the steel sector also impacted volumes during the quarter.
The brokerage noted that higher costs further pressured profitability. Other expenses rose to Rs 22.5 crore, or 27.7% of revenue, due to high-value repairs at one plant and one-off legal costs. As a result, EBITDA stood at Rs 24.9 crore, down 25.7% sequentially, with margins falling to 30.6% in Q3FY26.
JM Financial cut its FY26–FY28 estimates by 4–21% after lowering argon price assumptions and factoring in delays in commissioning key projects. It also reduced the valuation multiple to 30x FY28 earnings and lowered the target price to Rs 345. Based on this target, JM Financial’s assessment implies an upside of about 35%.
“Management believes these lower argon prices are not sustainable and expects them to recover, especially after the recent announcement of the India–US trade deal,” JM Financial added.
JM Financial on PG Electroplast: ‘Buy’
JM Financial said PG Electroplast delivered strong revenue growth in Q3FY26, driven by aggressive manufacturing ahead of the December 2026 deadline for older energy-efficiency norms in air conditioners. Revenue rose to Rs 1,410 crore, up 45% year-on-year and 115% quarter-on-quarter, beating estimates by 8%. Growth in the AC and washing machine segments stood at about 80% and 45% year-on-year, respectively.
The brokerage cautioned that channel inventory levels remain elevated at around 50 lakh units across brands and distributors. JM Financial said future demand will depend heavily on summer-season sales and the ability of brands to pass on price hikes. It added that PG Electroplast’s fixed-fee manufacturing model allows input cost increases to be passed through with a lag of 10–15 days.
JM Financial maintained its valuation at 40x December 2027 earnings and retained a target price of Rs 785. This implies an upside of roughly 40%, according to the brokerage’s calculations, supported by strong order visibility and scaling up of the washing machine business.
“Channel inventory remains high even at this point, and price hikes and demand for the upcoming summer remain key,” JM Financial noted.
JM Financial on Restaurant Brands Asia: ‘Buy’
JM Financial said Restaurant Brands Asia continued to post steady execution in India, with standalone revenue rising 17% year-on-year in Q3FY26. The growth was supported by 4.5% same-store sales growth and the addition of 44 stores during the quarter. The brokerage highlighted that the company has now delivered positive same-store sales growth for four consecutive quarters.
Gross margin expanded to 69.9%, aided by lower discounting, supply-chain efficiencies, and menu optimisation. EBITDA rose 23% year-on-year to Rs 95.7 crore, though higher employee and operating costs partially offset margin gains. JM Financial added that while India performance remained strong, Indonesia continued to weigh on consolidated results, even as losses narrowed.
JM Financial raised its target price to Rs 88 from Rs 80 earlier, based on a sum-of-the-parts valuation. The revised target implies an upside of nearly 40%, driven largely by sustained improvement in the India business.
“Operational performance remains robust with strong gross margin and sustainable expansion in India,” JM Financial noted.
JM Financial on Keystone Realtors: ‘Buy’
JM Financial said Keystone Realtors reported Q3FY26 pre-sales of Rs 840 crore, broadly flat year-on-year but up 8% sequentially, led by the Emerging Premium segment, which accounted for about one-third of total pre-sales. Collections remained muted during the quarter but year-to-date collections rose 12% year-on-year to Rs 1,770 crore, supporting visibility on full-year guidance.
The brokerage highlighted progress on the launch pipeline, including upcoming residential and commercial projects with approvals already in place. JM Financial also noted strong business development activity during the year, with new projects added exceeding annual guidance.
JM Financial maintained its ‘Buy’ rating but lowered its target price to Rs 750 after moderating assumptions on operating cash flow margins. The revised target implies an upside of about 52%, based on the brokerage’s calculations.
“While the company is well placed on operational KPIs, improvement in P&L performance remains the key monitorable,” JM Financial added.
Conclusion
JM Financial’s latest round of reports points to a mixed Q3FY26, with pricing pressure, inventory build-up, and execution delays affecting near-term earnings, while margin discipline, project pipelines, and selective demand recovery offer support. The brokerage has retained ‘Buy’ ratings across all four companies covered, while recalibrating expectations strictly in line with reported performance and management guidance.