Earnings ahead of estimates led by better-than-expected margins * 2Q earnings at INR15.7b beat our estimate of INR14.8b, supported by better-than-expected margins. * Revenue improved marginally YoY to INR175b (in line) despite a marginal decline in volumes. While domestic sales declined ~7% YoY to 140k units, exports grew strongly by ~22% to 51.4k units. Avg ASP was up 1.7% YoY due to an improved mix. * Gross margins improved 240bp YoY (+60bp QoQ) to 29.9%, above our estimate, led by an improved mix (SUV mix at 71% of domestic volumes, exports up at 27% from 22% YoY). The benefit of an improved mix was partially offset by higher-than-expected other expenses. * Led by improved gross margins, EBITDA margin expanded 110bp YoY (+60bp QoQ) to 13.9%, ahead of our estimate of 13.5%. * EBITDA grew 10% YoY and was ahead of our estimate by 4%. * While other income was higher than our estimate, depreciation came in below estimate, which in turn boosted PAT. * PAT grew 14.3% YoY to INR15.7b (vs. est. of INR14.8b). * For 1HFY26, CFO came in at ~INR23b and capex at ~INR26b. Consequently, it reported FCF loss of INR3b. * In 1HFY26, revenue fell 2.1% to INR346b, whereas EBITDA/PAT grew 1.5%/2.7% YoY to INR45b/INR29b. In 2HFY26, we expect revenue/ EBITDA/PAT to grow 9%/11.5%/10% YoY to INR377b/INR49b/INR30.4b.