Stock Market Today (26 October 2026): ITC Hotels, REC, Mankind Pharma in Focus

Indian stocks had another results-heavy session on 26 October 2026, with earnings, merger developments and management commentary driving attention across sectors. ITC Hotels delivered one of the strongest numbers of the day with a 52% jump in Q2 profit, while Mankind Pharma reported a 38% increase in profit. On the other side, REC and DCM Shriram reported declines in quarterly profit. The proposed PFC-REC merger also moved into focus after the companies disclosed a swap ratio of 88:100.

Today's Key Market Highlights

ITC Hotels Q2 Profit Surges 52%

ITC Hotels emerged as one of the strongest earnings stories of the day after reporting a 52% year-on-year increase in Q2 profit. The result keeps the hospitality company in focus as investors track the recovery in hotel demand, room rates and operating performance.

With travel and premium hospitality demand remaining important growth drivers, investors will be watching occupancy, average room rates and new-property additions in the coming quarters. The key question is whether the company can sustain its earnings momentum as the sector enters the next phase of expansion.

Mankind Pharma Q2 PAT Jumps 38%

Mankind Pharma reported a strong quarter, with profit after tax rising 38% year on year. The performance puts the pharmaceutical company among the day's better earnings performers.

Investors will now focus on domestic formulations growth, product mix, margins and the company's ability to maintain its earnings trajectory through the second half of FY27.

REC Q2 Profit Falls 21% to ₹3,478 Crore

REC reported a 21% year-on-year decline in Q2 profit to ₹3,478 crore. Revenue also softened, with the company reporting Q2 revenue of approximately ₹147.3 billion.

The result comes at a time when investors are closely watching the financing environment for India's power and infrastructure sectors. Asset quality, loan growth, borrowing costs and spreads will remain key indicators for the lender.

PFC-REC Merger Swap Ratio Set at 88:100

The proposed merger of Power Finance Corporation and REC gained further clarity after the companies disclosed a swap ratio of 88:100.

Under the proposed arrangement, the swap ratio becomes the key reference point for shareholders as the merger progresses. The development will also keep the focus on the combined entity's scale, capital structure and ability to streamline operations across India's power-sector financing ecosystem.

DCM Shriram Reports Mixed Q2, Announces Dividend

DCM Shriram delivered a mixed quarterly update. Revenue increased 21% year on year, but Q2 profit declined 34%, showing that stronger top-line performance did not translate into similar growth at the bottom line.

The company also declared a ₹4 per share dividend and announced investment plans for its Kota operations. The company plans to spend up to ₹60 crore on the Kota facility, including up to ₹6 crore for installing filter presses at the cement plant. It also plans to invest ₹50 crore in a joint venture.

The combination of higher revenue, lower profit and fresh capital expenditure makes cost control and project execution important areas to monitor.

Infosys Cuts Revenue Growth Guidance

Infosys reduced its revenue-growth guidance, adding another important signal to the ongoing IT earnings season.

The update comes as investors continue to assess technology spending, artificial-intelligence-led changes in the services business and the broader demand environment. Market participants will be watching management commentary on deal wins, discretionary spending and the pace at which AI-related work converts into revenue.

TCS and Infosys: AI and Margins Remain Key Themes

Management commentary across India's large IT companies continues to put two themes at the centre of the sector: margin discipline and artificial intelligence adoption.

TCS was highlighted for its Q2 margin performance, while Infosys was seen as stronger on AI-related positioning. However, lower guidance from Infosys reinforces the point that AI opportunity does not automatically remove near-term pressure from slower traditional technology spending.

Netweb Technologies Targets ₹4,000 Crore FY27 Revenue

Netweb Technologies is targeting revenue of around ₹4,000 crore for FY27. The company remains exposed to the growing demand for high-performance computing, data-centre infrastructure and AI-related computing capacity.

Execution against the revenue target, order visibility and the pace of AI infrastructure spending will be the major factors to track.

Ather Energy Targets 1.14 Million Units by Q2 FY28

Ather Energy is targeting production of approximately 1.14 million electric two-wheelers by Q2 FY28. The company also highlighted a record 11.6% market share in India's electric two-wheeler market during Q2 FY27.

The numbers underline the increasing scale of the electric two-wheeler market, while production capacity, profitability and competitive intensity will determine how much of that market growth translates into shareholder value.

IndusInd Bank Looks for Margin Recovery

IndusInd Bank is focusing on a recovery in margins as it works through the current earnings cycle. For investors, the key indicators will be net interest margins, deposit growth, credit costs and asset quality.

A sustained improvement in margins could become an important catalyst, but the market is likely to remain selective until the recovery becomes visible in reported numbers.

Other Important Corporate Updates

• Supreme Industries: Released its Q2 earnings call audio for investors.
• REC: Reported no deviation in the utilisation of ₹19,163 crore raised through NCDs.
• ITC Hotels: Q2 profit increased 52%, making it one of the day's stronger earnings updates.
• DCM Shriram: Declared a ₹4 dividend and outlined fresh investment at Kota.
• Mankind Pharma: Q2 PAT increased 38%.
• Infosys: Reduced its revenue-growth guidance.
• Ather Energy: Reported record Q2 electric two-wheeler market share of 11.6%.

Market Outlook

The earnings season continues to produce a wide gap between winners and laggards. ITC Hotels and Mankind Pharma delivered strong profit growth, while REC and DCM Shriram saw pressure at the bottom line despite different degrees of revenue resilience.

The PFC-REC merger is another important development because the 88:100 swap ratio gives investors a clearer framework to assess the proposed combination. The transaction could remain a sector-wide talking point as the process moves forward.

In technology, Infosys' lower growth guidance is likely to keep investors cautious even as AI adoption remains a long-term opportunity. Netweb's aggressive FY27 revenue target and Ather Energy's expansion plans, meanwhile, show where India's AI infrastructure and electric-mobility investment themes are heading.

For the next trading sessions, earnings quality, guidance changes and management commentary should remain more important than headline profit numbers alone.

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