Bandhan Bank, DLF Shares Fall Up to 8% After Q2 Results; United Spirits Hits 4-Month High

Q2 Results Impact: Bandhan Bank, DLF Shares Slide as United Spirits Surges to Four-Month High

Indian stock markets witnessed sharp stock-specific moves on Thursday as Q2 earnings triggered contrasting reactions among investors. While Bandhan Bank and DLF shares slipped sharply following weaker-than-expected results, United Spirits surged nearly 7 percent, hitting a four-month high on robust performance and margin improvement.

At mid-day, Bandhan Bank shares plunged over 8 percent to ₹156.50 apiece, marking their lowest level in October 2025, while DLF shares dropped 2.5 percent to ₹757 apiece. In contrast, United Spirits soared to ₹1,488, its highest level since early July.

Bandhan Bank Shares Tumble 8% After Weak Q2 Numbers

Bandhan Bank’s Q2 FY26 results disappointed investors as the private sector lender reported an 88 percent year-on-year (YoY) drop in net profit to ₹112 crore, compared with ₹937 crore in the same quarter last year.

The bank’s net interest income (NII) declined 12 percent YoY to ₹2,589 crore, while asset quality weakened further. Gross non-performing assets (NPAs) rose nearly 15 percent YoY to ₹7,015 crore, and net NPAs climbed to ₹1,843 crore, up 14 percent from a year ago.

The gross NPA ratio increased to 5.02 percent, and the net NPA ratio rose to 1.37 percent, compared to 1.29 percent in Q2 FY25. The lender’s return on assets (RoA) also declined to 0.06 percent, signaling mounting pressure on profitability.

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Brokerages Maintain Caution: Nomura and CLSA Downgrade Bandhan Bank

Following the disappointing results, global brokerages expressed caution. Nomura retained a ‘Neutral’ stance on Bandhan Bank, with a target price of ₹170, implying a limited upside from its previous close of ₹170.58. The brokerage highlighted that weak earnings, soft net interest margins (NIMs), and deteriorating asset quality remain key concerns.

Nomura also cut its FY26–FY28 earnings per share (EPS) estimates by 13–38 percent, while noting that loan growth was largely driven by secured assets, reflecting a strategic shift amid rising credit costs.

Similarly, CLSA downgraded the stock from ‘Buy’ to ‘Accumulate’ and slashed its target price to ₹190, signaling modest optimism. CLSA pointed out that the bank’s NII and pre-provision operating profit (PPOP) were weak, with credit costs rising sharply. However, the firm expects NIM recovery from FY27, indicating a long-term turnaround potential.

DLF Shares Dip Over 2% as Q2 Profit and Revenue Miss Estimates

Shares of DLF Ltd., India’s largest real estate company by market capitalization, fell more than 2.5 percent to ₹757, reacting to its lower-than-expected Q2 FY26 results.

The realty major reported a net profit of ₹1,180 crore, a 14.5 percent YoY decline from ₹1,381 crore in the year-ago quarter. Revenue from operations dropped 17 percent YoY to ₹1,643 crore, while consolidated income stood at ₹2,261.8 crore.

DLF’s EBITDA for Q2 stood at ₹902 crore, reflecting moderation due to deferred project recognition. However, the company highlighted a robust sales performance, with new bookings worth ₹4,332 crore, driven by the successful Mumbai project “The Westpark” and continued momentum in the super-luxury housing segment.

Brokerages Remain Positive on DLF’s Long-Term Outlook

Despite the short-term dip, major brokerages remain optimistic about DLF’s growth trajectory.

Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹900, indicating a potential upside of around 16 percent. The brokerage noted that pre-sales performance beat expectations, reinforcing confidence in DLF’s luxury housing segment.

Similarly, Jefferies reaffirmed its ‘Buy’ call with a target price of ₹1,000, implying a 29 percent upside. Jefferies said that DLF’s pre-sales exceeded estimates, driven by strong demand in Mumbai and NCR markets. It added that revenue recognition was delayed, which temporarily impacted quarterly revenue.

United Spirits Rallies 7% on Strong Q2 Earnings and Margin Growth

In contrast to the weakness in Bandhan Bank and DLF, United Spirits Ltd. delivered a strong Q2 FY26 performance, sending its shares soaring nearly 7 percent to ₹1,488, marking a four-month high.

The liquor major reported a net profit of ₹464 crore, a 36 percent YoY rise from ₹341 crore in the previous year’s corresponding quarter. Revenue from operations grew 8 percent YoY to ₹7,199 crore.

The company’s net sales value (NSV) surged 11.6 percent to ₹3,173 crore, driven by strong demand across premium brands, while EBITDA rose 31.5 percent to ₹660 crore. The results reflected effective cost control measures and steady premiumization trends, boosting profitability.

Analysts believe that United Spirits’ focus on high-margin segments and brand-driven strategy will sustain its growth momentum, making it one of the top performers in the FMCG space this earnings season.

Stock-Specific Volatility to Continue Post-Q2 Earnings

Market experts suggest that the ongoing Q2 results season will continue to trigger stock-specific volatility, especially in sectors like banking, real estate, and FMCG.

While Bandhan Bank faces near-term challenges due to rising NPAs and weak margins, DLF’s long-term fundamentals remain robust, backed by healthy pre-sales and a solid project pipeline. United Spirits, on the other hand, is expected to benefit from resilient demand and margin expansion as consumer spending improves.

Analysts advise investors to stay selective and diversified, focusing on fundamentally strong companies with clear visibility on earnings recovery amid macroeconomic headwinds.

Conclusion

The contrasting stock performances of Bandhan Bank, DLF, and United Spirits underscore the diverse impact of Q2 earnings on Indian equities. As the results season unfolds, markets are likely to remain driven by earnings surprises, brokerage revisions, and global cues.

For investors, the focus remains on balance sheet strength, asset quality, and operational efficiency — the key differentiators in a market where sentiment can shift swiftly with every quarterly report.

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