Q3 performers & returns report card
A clear set of companies stood out on the back of strong topline growth and meaningful profit expansion. Eternal, which operates Zomato and Blinkit, leads the pack with a staggering 202% year-on-year jump in revenue and a 73% surge in profit after tax (PAT), signalling strong operating leverage. Yet the stock has traded lackluster since the earnings announcement (-0.05%). It is flat with a mild erosion in share price on a year-to-date basis.
Policybazaar operator PB Fintech delivered robust numbers with revenue rising 37% YoY and PAT soaring 164%, underscoring improving unit economics. Its shares are down 18% on a YTD basis.
One 97 Communications (Paytm) marked a notable turnaround, posting a PAT of Rs 225 crore in Q3FY26 compared with a loss of Rs 208 crore a year ago, alongside 20% revenue growth. The stock is down 8% YTD, while delivering an impressive 52% return over a 1-year period.
Nykaa, another turnaround story in the internet space, has delivered 3% returns so far in 2026, mimicking the lack of confidence among investors for equities. Parent company FSN E-Commerce Ventures reported 27% revenue growth and a sharp 142% rise in PAT in the October-December quarter.
Nifty is down 2% in 2026.Also read: From 320% multibagger to 44% underperformer, how Mukul Agrawal’s 2025-26 IPO bets are playing out
Indiamart Intermesh and Le Travenues (Ixigo) are other gleaming examples where stock returns have not matched the earnings enthusiasm. While Indiamart has slipped 2% this year, Ixigo has plunged 23% in the same period.
The former posted steady topline growth of 13% YoY, while PAT climbed 56%. The latter reported 31% revenue growth and 54.12% PAT expansion, benefiting from strong travel demand.
CarTrade Tech clocked 19% revenue growth and a 35.11% increase in PAT while AvenuesAI impressed with a 122% surge in revenue and 15% bottom line growth. TBO Tek also delivered strong topline momentum, with revenue up 85.78% and PAT rising 7.44% and PSU railway company IRCTC reported healthy 18.36% revenue growth and 15.61% PAT growth, reflecting stable execution.
Their YTD returns stand at -28%, 13%, -16%, and -9%, respectively, with AvenuesAI an outlier with double-digit returns.
Q3 laggards
Several internet names reported weak profitability in the quarter under review. EasyMyTrip saw revenue growth of just 0.72% YoY, while PAT plunged 90.87%, indicating margin stress despite positive stock returns this year. Easy Trip Planners, that operates the travel platform, stands stall among its peers with 31% returns but its rally rides on a Rs 500 crore fund raise plan to scale key growth areas and reinforce its financial strength.
Read more: EaseMyTrip shares soar 60% in 3 days. What’s driving the rally?
Nazara Technologies, which reported a 24% decline in revenue and a 37% drop in PAT, has yielded just over 1% returns this year.
Just Dial shares are down 13% in 2026. The company posted modest revenue growth of 6% even as PAT fell 10%.
RattanIndia and IIFL Capital reported low single-digit revenue growth with declining profits.
Angel One saw revenue rise 6%, but PAT slipped 4.51%, reflecting pressure in broking margins.
Motilal Oswal Financial Services (MOFSL) reported largely flat profitability despite revenue growth.
Swiggy and FirstCry continued to report widening losses even as revenue grew 54% and 12%, respectively.
New-age newbies
Among recently listed players, Lenskart Solutions posted an eye-catching 6,983% YoY surge in PAT to Rs 131.02 crore, aided by a low base, while revenue grew 38% YoY to Rs 2,308 crore. Listed on November 10, the stock is up 11% YTD at Rs 488 and 22% above the issue price of Rs 402.
Billionbrains Garage Ventures (Groww) posted a 28% YoY decline in PAT due to a high base from a one-time gain last year, though revenue rose a healthy 24.8%. At Rs 169, Groww is 69% higher over the issue price of Rs 100. This year it has gained 9%.
Also Read: Ola’s 63% IPO crash isn’t the whole story, as 9 have fared worse; 100+ stocks are wealth destroyers
7 stocks to buy
1) Buy: Nykaa | Nuvama | Target: Rs 310
Nuvama has revised the target upwards from Rs 285, raising growth and profitability estimates.
2) Buy Info Edge: Centrum/Nuvama: | Target: Rs 1,641/1,390
Nuvama has slashed the target from Rs 1,580 lowering growth estimates, as hiring remains soft in Naukri’s largest jobseeker cohort of Rs 5 lakh to 30 lakh salary band.
3) Buy eMudhra | Centrum | Target: Rs 918
4) Buy Paytm: Investec/Bernstein (Outperform) | Target: Rs 1,550-Rs 1,600
5) Buy Eternal | JM Financial/Nomura | Target: Rs 400/380
6) Buy Groww | Motilal Oswal/Citi | Rs 190
7) Buy Lenskart | JM Financial/Citi/Jefferies | Rs 575/565/520
Data inputs from Ritesh Presswala
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
