Brokerage houses continued to back several companies after their March quarter earnings. JM Financial retained its ‘Buy’ recommendations on Tata Steel, Power Grid Corporation of India, KEC International, PDS Ltd. and Krishna Institute of Medical Sciences after reviewing their latest numbers and FY27 commentary.
The brokerage pointed to improving cash flows, strong order books, expansion plans and better demand visibility as the main reasons behind its positive stance. Steel demand recovery, transmission spending, hospital expansion and sourcing opportunities remained among the biggest themes across the latest reports.
Here are five stocks where JM Financial maintained a ‘Buy’ rating after the latest quarterly earnings.
JM Financial on Tata Steel: ‘Buy’
JM Financial retained its ‘Buy’ recommendation on Tata Steel with a 12-month target price of Rs 255. The target implies an upside potential of 17.5%. The brokerage said Tata Steel reported consolidated EBITDA of Rs 9,946 crore in Q4FY26. That was ahead of its estimate of Rs 9,570 crore. Stronger profitability in India and improving performance in Europe supported earnings.
The brokerage noted that India standalone EBITDA per tonne increased to nearly Rs 15,900 in Q4FY26 from around Rs 13,600 in Q3FY26. Higher net sales realisation and continued cost optimisation supported earnings. Volumes rose to 62 lakh tonnes in Q4FY26 from nearly 60 lakh tonnes in the previous quarter.
JM Financial also said Tata Steel Europe turned EBITDA positive during the quarter. Tata Steel Netherlands remained profitable despite uncertainty linked to coke oven permits. Losses at Tata Steel UK narrowed sequentially.
The brokerage further said Tata Steel reduced net debt to around Rs 80,100 crore in March 2026 from nearly Rs 81,800 crore in December 2025. Stronger cash generation and working capital release supported the decline. The company delivered cost savings of around Rs 10,800 crore in FY26. It has guided for another Rs 7,100 crore of savings in FY27.
JM Financial on Power Grid Corporation of India: ‘Buy’
JM Financial retained its ‘Buy’ call on Power Grid Corporation of India and raised the target price to Rs 342 from Rs 314 earlier. The revised target price indicates an upside potential of 15.2%.
The brokerage said Power Grid reported March quarter revenue of Rs 11,666 crore. That was down 5% year on year. Certain regulated tariff mechanism contracts completed their 12 year term during the quarter. EBITDA margin fell to 77.7% in Q4FY26 from 83.3% in Q4FY25.
Despite weaker operational performance, adjusted profit after tax rose to Rs 4,546 crore in Q4FY26 from Rs 4,143 crore in Q4FY25. Deferred tax adjustments and movement in the regulatory deferral account supported profit.
JM Financial also highlighted the broader transmission opportunity. According to the National Electricity Plan, more than 1,91,000 circuit kilometres of transmission lines and over 13,07,000 MVA of transformation capacity are expected to be added between 2022 and 2032. The brokerage said only around Rs 3 lakh crore worth of interstate transmission projects have been awarded so far. That leaves a sizeable pipeline for companies such as Power Grid.
JM Financial on KEC International: ‘Buy’
JM Financial maintained its ‘Buy’ recommendation on KEC International with a revised target price of Rs 705 against Rs 875 earlier. Even after the cut, the target price implies a possible upside of 44.5%.
The brokerage said KEC International reported weaker-than-expected March quarter earnings. Execution was affected by supply chain disruptions, geopolitical tensions, labour shortages and issues related to liquefied petroleum gas availability.
Revenue declined to Rs 6,390 crore in Q4FY26 from Rs 6,872 crore in Q4FY25. Adjusted profit after tax fell to Rs 193 crore from Rs 268 crore in the year-ago period.
JM Financial said transmission and distribution revenue still rose to Rs 4,500 crore in Q4FY26 from Rs 4,326 crore in Q4FY25. Weakness in civil, transportation and renewable energy businesses affected consolidated performance.
“KEC is trading attractively at 14x and 10x FY27 and FY28 earnings post recent correction,” JM Financial said.
JM Financial on PDS: ‘Buy’
JM Financial retained its ‘Buy’ rating on PDS with a target price of Rs 410. The target implies an upside potential of 38%.
The brokerage said PDS reported consolidated EBITDA of Rs 122 crore in Q4FY26. The number was broadly in line with estimates. Margins remained under pressure because of weakness in the sourcing business. Revenue during the quarter stood at Rs 3,519 crore, almost unchanged year on year.
Manufacturing revenue rose 24% year on year. That helped offset weakness in sourcing revenue. JM Financial also noted that the order book strengthened to around Rs 5,070 crore in early April 2026. That was up nearly 11% year on year.
“Cost reset largely done operating leverage the next leg,” JM Financial said in the report.
JM Financial on Krishna Institute of Medical Sciences: ‘Buy’
JM Financial maintained its ‘Buy’ recommendation on Krishna Institute of Medical Sciences, also known as KIMS, with a target price of Rs 904. The target price implies an upside potential of 26.1%.
The brokerage said KIMS reported March quarter revenue of Rs 1,075 crore in Q4FY26. That was up 35% year on year. EBITDA increased to Rs 207 crore from Rs 198 crore in Q4FY25. EBITDA margin declined to 19.2% in Q4FY26 from 24.8% in Q4FY25 because of losses from newly commissioned hospitals.
“On a low FY26 base, we expect KIMS to deliver 47% EBITDA CAGR in the next two years, the highest in the hospital space,” JM Financial said.
The brokerage added that KIMS has completed its large greenfield expansion projects. It does not plan fresh greenfield additions over the next two years. Instead, the company plans to add nearly 1,300 beds through brownfield expansion across Andhra Pradesh and Telangana.
Conclusion
The latest brokerage reports showed that analysts continued to back companies where long-term earnings visibility remained intact despite quarterly pressure on margins, execution or profitability.
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