Paytm, Swiggy among 7 stocks that Jefferies upgraded after Q1 results

Jefferies’ mid-quarter earnings review shows the June-quarter results were “less bad than feared,” with several sectors delivering mixed but stable performance. Despite a still-high downgrade ratio of 50% across its coverage, the brokerage upgraded ratings on seven stocks following earnings surprises or improved business outlooks. Here are the seven stocks Jefferies upgraded after the Q1 FY26 results.

Jefferies upgraded Paytm to 'Buy' from 'Hold' after its Q1 EBITDA of Rs 0.7 billion came in ahead of estimates, aided by “lower DLG cost (partly transitionary) and operational leverage.” Monthly transacting users grew 3% sequentially, while gross merchandise value rose 6% QoQ and 27% YoY. Contribution margin jumped by 6 percentage points to 60%, driven by benefits from the discontinuance of DLG on lending activity.

Despite a weaker-than-expected margin performance in Q1, Jefferies upgraded HCL Technologies to 'Buy' rating, citing supportive currency movements and potential for a tactical bounce in the IT sector. The brokerage noted that “conditions are ripe for a near-term tactical bounce” due to attractive valuations, free cash flow support, and under-ownership, even if long-term EPS growth remains subdued.

Mphasis also saw a rating lift to 'Buy' from 'Hold' as its Q1 results aligned with expectations. Revenues rose 1.1% QoQ in constant currency terms, EBIT margins held steady at 15.3%, and profit rose 9% YoY. Deal wins stood out, with bookings hitting a record $760 million, driven by four large deals.

Eternal earned an upgrade to 'Buy' from 'Hold' after a strong Q1 showing, with B2C NOV rising 55% YoY and 16% QoQ. While adjusted EBITDA of Rs 1.7 billion missed expectations due to “higher than expected loss in Q/C and new businesses,” Jefferies flagged a strong growth trajectory in its Blinkit business, which added 243 net stores and reiterated its December 2025 guidance of 2,000 total stores.

Jefferies upgraded Swiggy from 'Hold' to 'Buy' despite a higher-than-expected EBITDA loss of Rs 8.1 billion, citing strong topline momentum. Adjusted revenues grew 53%, led by quick commerce and supply chain growth. “Food GOV grew in-line at about 19% YoY led by strong growth in MTUs,” the brokerage noted, with Q/C GOV more than doubling in the quarter.

Indus Towers was upgraded from 'Underperform' to 'Hold' as Jefferies saw stabilising performance in Q1. While rental revenue slightly missed estimates, this was offset by “higher than expected fuel reimbursements.” EBITDA rose 13.6% YoY to Rs 43 billion, and normalised profits climbed 23% YoY to Rs 16.7 billion, both in line with expectations.

Jefferies moved Dixon Technologies up to 'Hold' from 'Underperform', following robust Q1 results. Sales and profit both nearly doubled YoY, led by a strong ramp-up in the mobile segment. “Q2FY26e order book also appears healthy, ahead of the festive season,” Jefferies noted, with the company projecting mobile volumes of about 45 million for FY26, a 45–50% YoY growth trajectory.

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