Birla Opus entered the paint market with aggressive pricing and a deep wallet. Three quarters of earnings calls later, here’s what the incumbents have been saying — and doing — as they adjusted.

— — —

When Birla Opus launched in FY25 — backed by Aditya Birla Group’s balance sheet, priced well below the market, and offering extra grammage on top — it was the first serious new entrant the Indian paint industry had seen in decades. The working assumption, among analysts and investors, was that this would force a race to the bottom. Incumbents would match the discounts, margins would compress, and the sector’s premium valuations would need rethinking.

Three quarters of earnings calls have produced a different, messier picture. What follows is what the managements of five listed paint companies said — and, at points, what Birla said about itself — quarter by quarter, as the industry figured out what the entry actually meant.

— — —

Q1 FY26: “The initial euphoria is over”

By Q1 FY26, Birla Opus had been in the market for roughly a year. The first thing incumbents wanted to talk about was what was happening at the dealer counter.

Berger’s Abhijit Roy was the most direct:

“The initial euphoria is over completely. That’s gone. You know that initially, that curiosity, the enthusiasm that was there, something new, something great is happening — that is completely gone.”

— Abhijit Roy, MD & CEO, Berger Paints | Q1 FY26

The reason, he said, was straightforward economics. More Birla dealers meant more competition between them — which meant thinner margins for each.

“Once with the network expansion happening heavily and inter-dealer competition increasing, that margin of profit has reduced considerably. And as a result of that there is a little bit of a loss of interest from the dealers. People might be feeling that some of these dealers might be coming back to the legacy companies with whom they have been dealing in the past, because once they see that there is no great margin, and the movement of the product is nothing great.”

— Abhijit Roy, MD & CEO, Berger Paints | Q1 FY26

Akzo Nobel was seeing something similar and had launched a formal program for it. Rohit Totla, Akzo’s Whole-time Director, described the counter-offensive:

“Wherever we saw an action, we were very quick in talking to our retailers and bringing them back to the fold, what we call a program called ‘Ghar Wapsi’. And that is where within a quarter we were able to bring back. In the last five quarters, this aggressive competition was there but we were able to do better than the market.”

— Rohit Totla, Whole-time Director, Akzo Nobel India | Q1 FY26

Nerolac’s Pravin Chaudhari reported the same:

“In fact, we are seeing the reversal now. Many dealers of ours who started batting with competition has now started coming back to us. I think they are realizing power of Nerolac brand as well as groundwork that our team does as well as consumer and painter activity that we’re doing.”

— Pravin Chaudhari, MD, Kansai Nerolac Paints | Q1 FY26

Birla, for its part, had a different reading of the same quarter. Rakshit Hargave, CEO of Birla Opus, pointed to a starker picture of the industry without his company in it:

“On a QoQ annual basis, the market has grown only at 5%. And if you remove Birla Opus, then the market is actually minus one or zero. So, obviously, Birla Opus has taken a lion’s share of the growth, which has happened on an annual basis.”

— Rakshit Hargave, CEO, Birla Opus (Grasim Industries) | Q1 FY26

But the impact wasn’t uniform. Akzo’s Rajiv Rajgopal mapped the disruption geographically — and the pattern was uneven:

“If I break India into four regions, the impact of the new competition was highest in South, followed by a bit in West, Punjab and North largely, and East has been very minimal.”

— Rajiv Rajgopal, Chairman & MD, Akzo Nobel India | Q1 FY26

Nerolac confirmed. South was the pressure point, particularly for players already weak there:

“South continues to be a problem for us because as such, we are weak there. And given the onslaught of competition and extra focus on South by most of the leading player, there has been the issue for us.”

— Pravin Chaudhari, MD, Kansai Nerolac Paints | Q1 FY26

Asian Paints, the market leader, framed the disruption differently. Amit Syngle argued that Birla’s discounting was pulling in the trade — contractors and dealers — not the end consumer:

“Sometimes it is the intermediary who benefits a little bit more in terms of looking at what extra the person is getting because that might result in a higher margin for the intermediary which could be a contractor, which could be a dealer. So, to some extent it is like a discount... and not too much of a consumer proposition.”

— Amit Syngle, MD & CEO, Asian Paints | Q1 FY26

One thing all five companies agreed on: the disruption was playing out at the bottom of the market, not the top. Berger’s Roy:

“In the luxury, premium segment, brand plays a far bigger role there. It is difficult to change a customer in this particular area. However, at the lower end or at the mid-lower end, it is relatively possible, with the effort of the influencers to change customer preferences.”

— Abhijit Roy, MD & CEO, Berger Paints | Q1 FY26

And then there was Indigo Paints — the niche player that had spent Q1 pushing back on the doomsday narrative:

“The prediction of outsiders was that this will devastate the margins of the paint industry. And we were all collectively saying that, that is not going to happen. Everybody’s gross margin is more or less the same as what it was a year ago or 1.5 years ago.”

— Hemant Jalan, Chairman & MD, Indigo Paints | Q1 FY26

That was Q1. Dealers reportedly drifting back. Regional variation. Premium holding. Margins intact. The tone across boardrooms was cautious but composed.

— — —

Q2 FY26: “Let’s not kid ourselves”

By Q2, the composure started showing cracks. Not because anything dramatic happened — but because growth hadn’t.

“The overall industry would not be growing more than about 3.5 to 4%. Therefore, we were very clear that we need to really shift our gear in terms of how we really galvanize the market, how do we look at playing to our strengths in a very strong manner.”

— Amit Syngle, MD & CEO, Asian Paints | Q2 FY26

Akzo’s Rajgopal dropped the most candid assessment of the quarter:

“There is a fight happening in the market between a market leader and a very strong challenger. Let’s not kid ourselves in saying that it has had impact on the profitability of the industry and also the market shares of all the players, maybe lesser on some of us, more on a few others. But the reality is it has had an impact.”

— Rajiv Rajgopal, Chairman & MD, Akzo Nobel India | Q2 FY26

He also mapped where, specifically, the new entrant had gained ground:

“80% of the growth has come from mass market, economy, putty, textile, construction chemicals. And these are segments where some of the established players found it too difficult to react because it would be hugely dilutive to the margin and the profitability of the business.”

— Rajiv Rajgopal, Chairman & MD, Akzo Nobel India | Q2 FY26

Something else had changed at Akzo between quarters. The Jindal family had taken a controlling stake, and the mandate from new ownership was unambiguous:

“The brief from Mr. Parth Jindal has been very clear to us as a team — let’s get after revenue and get back to high growth and get back to market share gain. So our endeavor starting from September has been to look at where are we significantly premium. And that’s where we’ve been taking some price corrections to make sure we are far more competitive.”

— Rajiv Rajgopal, Chairman & MD, Akzo Nobel India | Q2 FY26

Those corrections were already underway — cumulative price cuts of 1.5-2% across the portfolio.

On the other side, there were signs that Birla’s initial sprint was flattening. Berger’s Roy:

“By stabilization, I mean, the sales figure is not jumping upwards, as was happening in the past few quarters. The numeric reach is not expanding at a very fast clip. It’s improving, but at a normal pace, as would happen for any industry player.”

— Abhijit Roy, MD & CEO, Berger Paints | Q2 FY26

Indigo’s Jalan was blunter:

“New player is now stagnating. They were taking a 5%, 6% market share in the first year. Now they are more of a status quo.”

— Hemant Jalan, Chairman & MD, Indigo Paints | Q2 FY26

Birla’s own filings suggested otherwise. By Q2, all six manufacturing plants were operational — 1,332 million litres of annual capacity. Himanshu Kapania, Birla Opus’ business head:

“This makes Birla Opus the second largest decorative paints company commanding 24% of the industry capacity, a feat unmatched around the globe for speed and cost. Now we focus all our energies to bridge the gap between our volume market share and capacity share.”

— Himanshu Kapania, MD & Business Head, Birla Opus (Grasim Industries) | Q2 FY26

The extra grammage scheme — where Birla offered 10% more paint per can — was also being scaled back:

“For most products, this extra grammage that they were giving, originally in 4-liter, 10-liter and 20-liter cans, I believe that they have discontinued it in the 4-liter and 10-liter cans. And there are rumors in the trade that this extra grammage even in the 20-liter cans may get discontinued before the end of the fiscal.”

— Hemant Jalan, Chairman & MD, Indigo Paints | Q2 FY26

Nerolac, meanwhile, was making a deliberate choice — pulling back from the segments where the fight was fiercest:

“We are reducing our exposure on all the ancillaries and parties, which is actually getting into commodity play and people are using it as more of an entry kind of product. Despite reducing our inputs on these products, there was no major impact as far as the network defection is concerned.”

— Pravin Chaudhari, MD, Kansai Nerolac Paints | Q2 FY26

And Berger flagged an asymmetry that defined the competitive dynamic — in the ad spend war, the new entrant was outspending its position:

“The new entrant, their share of voice is much higher compared to their market share. In our case, we used to be similar to our market share, but now it is slightly below that.”

— Abhijit Roy, MD & CEO, Berger Paints | Q2 FY26

Q2 was where the industry moved from acknowledging the disruption to responding to it. Growth was tepid. The mass market had been conceded to a degree. Price corrections had begun. And Birla’s growth curve was bending.

— — —

Q3 FY26: “It will still take 2-3 quarters”

By Q3, the language across the sector had shifted from “disruption” to something more settled — a recognition that the new competitive landscape was now simply the competitive landscape.

“From a point of view of competitive intensity, it is bound to remain now. We have obviously newer competition; we have also amalgamation of two players which is coming in the market. So, I think we will have the competitive environment continue as we go ahead.”

— Amit Syngle, MD & CEO, Asian Paints | Q3 FY26

Akzo’s Rajgopal, still the most forthcoming voice in the room, laid out the pricing gap in full:

“You are talking of a new entrant which has come at prices which are anywhere up to 12% lower than the prices at which we operate, in addition to additional discounts, and then there was the 3-litre which while you say it’s been called off, it’s still there in a few markets. So, you are talking of a band between 12% and 18% lower pricing which is not a small sort of a negate.”

— Rajiv Rajgopal, Joint MD & CEO, Akzo Nobel India | Q3 FY26

And then a striking admission. Akzo had been benchmarking its own pricing and found it wasn’t just Birla undercutting them — they’d been off-market for a while:

“We looked at our pricing across our premium brands and some of our other offerings versus some of the lead players. And we did see that we were usually overpriced between 5% and 9%, which is what had led to volume erosion. We have addressed some of those.”

— Rajiv Rajgopal, Joint MD & CEO, Akzo Nobel India | Q3 FY26

His timeline was sober:

“I would love to believe that the worst is behind us, but I think the reality is that it will still take 2-3 quarters for it to really play out.”

— Rajiv Rajgopal, Joint MD & CEO, Akzo Nobel India | Q3 FY26

Berger’s Roy offered the clearest picture of market share movement across the industry:

“Market leader has also lost market share. It has gone mostly to Birla. If you take Birla also into one of the categories — given that whatever they say, we assume that this is what they have done — then there is a slight gain in market share for them, and losses for everyone else in the system.”

— Abhijit Roy, MD & CEO, Berger Paints | Q3 FY26

Birla’s own numbers quantified the gain. Kapania claimed revenue market share had expanded by over 300 basis points year-on-year:

“Birla Opus accelerated its market share gain with revenue growth of nearly 3x the Indian decorative paints industry growth rate, inclusive of Birla Opus.”

— Himanshu Kapania, MD & Business Head, Birla Opus (Grasim Industries) | Q3 FY26

He also named the asymmetry at the heart of the spending war:

“The player that you spoke about is much in excess of the market share that they hold, and that’s their entry strategy, which they don’t have to worry about their profitability. We do, and we are very conscious about it.”

— Abhijit Roy, MD & CEO, Berger Paints | Q3 FY26

One area where the incumbents remained secure: the premium end had held.

“In premium, I don’t think that the order is really reversed. While people have tried — one of the faster growing newer emerging players, when they got into the project business, they started getting consumer complaints and we started getting some of those businesses back.”

— Rajiv Rajgopal, Joint MD & CEO, Akzo Nobel India | Q3 FY26

Birla had started nudging prices upward — two increases totaling 2-2.5%. But starting from 5% below market, the incumbents were unmoved.

“The price change about Birla Opus is not very significant. 2%, 3%, I don’t think is going to really change much as far as industry is concerned. As such, Opus was lower by 5%.”

— Pravin Chaudhari, MD, Kansai Nerolac Paints | Q3 FY26

Though in some segments, the gap was genuinely narrowing:

“They were at 5% discount in DPL itself. Now, they have taken price increase — two price increases totaling 2 to 2.5% approximately. Some of them are now almost matched in the luxury category.”

— Abhijit Roy, MD & CEO, Berger Paints | Q3 FY26

Birla’s explanation for the increases was matter-of-fact:

“We always want to maintain a particular distance from the market leaders, and we felt the distance was slightly more than what was necessary and we are bridging that gap. That is the objective of price increase and there is no other objective.”

— Himanshu Kapania, MD & Business Head, Birla Opus (Grasim Industries) | Q3 FY26

Indigo’s Jalan, who had spent three quarters arguing the disruption was overstated, delivered his closing assessment:

“Time has borne itself out that we were right. Nobody’s profitability has been impacted. Yes, a new entrant may have taken some market share at a significant cost to itself — that is their business.”

— Hemant Jalan, Chairman & MD, Indigo Paints | Q3 FY26

He also hinted at Indigo’s own next move — using the highest gross margins in the industry as ammunition:

“Why should we not think of going even more aggressively on trade discounts and maybe sacrifice a percentage point from our gross margin — we’ll still be the highest. But if sales can grow disproportionately higher, then our EBITDA margins will not be impacted.”

— Hemant Jalan, Chairman & MD, Indigo Paints | Q3 FY26

Meanwhile, the elevated competitive intensity hadn’t eased:

“Ending Q3, we have not seen any change in the intensity on all the fronts — whether it is influencer, whether it is dealer discounting, or investment in the manpower.”

— Pravin Chaudhari, MD, Kansai Nerolac Paints | Q3 FY26

— — —

— — —

Over three quarters, the conversation in Indian paint boardrooms moved from cautious first reactions to active recalibration to a quieter acknowledgment: this is how the industry works now. The extra grammage is being wound down. Birla’s growth has flattened. But the spending hasn’t come down, and the pricing gaps remain wide in the segments that matter most.

What to watch

• Birla’s price trajectory. Two increases so far, totaling 2-2.5%. They’re still meaningfully below market in most segments. Whether that gap keeps narrowing will shape the next phase.

• Akzo under Jindal ownership. The most visible recalibration underway — price corrections, a revenue-first mandate, market-by-market repricing. The results start showing in Q4.

• Mass and economy margins across FY27. This is the segment Birla’s entry actually reshaped. Whether incumbents can compete here without eroding their margin profile is the open question.

• The dealer homecoming. Three companies have reported dealers returning. The painting season will test whether that’s a structural shift or a seasonal blip.

• The next entrant. Asian Paints flagged the JSW-Nippon amalgamation. Another variable entering an already crowded field.

That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!

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Quotes in this newsletter were curated by Kashish.

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Welcome to the 53nd edition of The Chatter — a weekly newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.

We’re always eager to improve—please share your ideas on how else we can innovate “The Chatter” format to better serve your needs.

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In this edition, we have covered 10 companies across 6 industries

Chemicals

• EPL

• SRF Limited

• Cipla

Auto Ancillary

• VST Tillers Tractors

• Endurance Technologies

Consumer Durables

• Blue Star Limited

• Havells India

FMCG

• Pajson Agro India

Cement

• Ambuja Cements

Energy

• Gujarat Gas Limited

Chemicals

EPL | Small Cap | Chemicals

EPL Limited, formerly Essel Propack Limited, is a global company specializing in manufacturing laminated plastic tubes for FMCG and Pharma sectors. They produce packaging materials like collapsible tubes and laminates for Beauty & Cosmetics, Health & Pharmaceuticals, Food, Home, and Oral care products, along with offering packaging solutions and ancillary services

[Transcript]

EPL’s strategic vision involves expanding into new emerging markets, diversifying its product formats, and becoming a global innovation partner.

“Our vision is to become a leader in consumer packaging for the emerging markets. This means we would enter new emerging markets in Southeast Asia and Africa, evolve from a single-format supplier to a multi-format player, and become an innovation partner for both large and emerging brands globally.”

— Mr. Bakshi, Executive

EPL is merging with Indovida to form a $1 billion revenue packaging leader focused on emerging markets, expanding its product portfolio and global reach.

“Today I am excited to share that we have taken a foundational step towards our vision by entering into definitive agreements for the merger of EPL and Indovida to create a consumer packaging leader focused on emerging markets. This merger will create a $1 billion revenue packaging powerhouse with an expanded product portfolio and capabilities, wider global presence across emerging markets, and stronger financial metrics.”

— Mr. Bakshi, Executive

The merger will create substantial synergies, doubling combined revenue and EBITDA, establishing a diversified multi-format packaging leader with 75% of revenue from high-growth emerging markets.

“Together, we are creating a diversified multi-format packaging platform that doubles our combined revenue to 8,300 crores and EBITDA to approximately 1,750 crores. The combined platform will be an emerging markets leader with 75% of revenue coming from emerging markets in Asia, Africa, and Latin America, which are growth-oriented in nature.”

— Mr. Bakshi, Executive

The valuation of EPL at a significant premium to Indovida makes the share-swap merger highly accretive for EPL shareholders.

“EPL was valued at 339 per share, a 70% premium to Friday’s closing price. EPL’s transaction multiple represents a 55% premium relative to Indovida. The attractive relative valuation makes the merger hugely accretive to EPL shareholders.”

— Mr. Bakshi, Executive

Indorama Ventures will become the new promoter with 51.8% ownership, while Blackstone will retain 16.6% and continue as a promoter post-merger.

“Post-merger, IVL will hold 51.8% of the merged company and will be the promoter of EPL. Blackstone has been an integral part of EPL’s journey; post-merger, Blackstone will hold 16.6% of the merged company and will remain a promoter.”

— Mr. Bakshi, Executive

The merger will enable reciprocal market access, allowing EPL to enter markets like Vietnam leveraging Indovida’s presence, and Indovida to enter India, China, and Latin America leveraging EPL’s.

“Now, the same opportunity will become more accessible to us in markets where Indovida exists today, for example, Vietnam in Southeast Asia, which is a big growing market... For Indovida, there are markets where EPL is present, like India, China, and Latin America, and they can enter these markets by leveraging our presence here.”

— Management, Executive

The company prioritizes securing supply and maintaining margins by passing raw material cost increases to customers, expecting no significant disruption despite inflation.

“Our first priority is to secure supply; our customers are keen that we avoid any supply dislocation. Second, while raw material costs are rising, our model is clear: cost inflation is passed through to our customers... We do not see a big disruption in either supply or margins.”

— Management, Executive

SRF Limited | Large Cap | Chemicals

SRF Limited is a diversified industrial conglomerate and a global leader in the manufacturing of fluorochemicals, specialty chemicals, and technical textiles. The company also operates a significant packaging film business providing solutions for the food and industrial sectors.

[Concall]

Internal business improvements are currently being overshadowed by aggressive price competition from Chinese manufacturers. Investors should monitor how long these pricing pressures last as they are limiting the immediate financial benefits of the company’s upgrades.

“In our Specialty Chemicals business, we have significantly enhanced our product mix and achieved notable improvements in operational efficiencies... However, these advancements have not fully reflected in this quarter’s financial performance due to persistent pricing pressure from customers, driven largely by irrational pricing from Chinese competitors.”

— Ashish Bharat Ram, Chairman and Managing Director

SRF anticipates that the current irrational pricing from Chinese competitors in Specialty Chemicals is unsustainable and expects a market correction, though the timing is uncertain.

“From our discussions with stakeholders, it is evident that Chinese players are finding it difficult to sustain these price levels, and we believe that this situation is not viable in the long run. When this correction will happen, remains difficult to predict at this stage.”

— Ashish Bharat Ram, Chairman and Managing Director

Despite ongoing deferments in agrochemical orders, SRF is confident about ending the fiscal year strongly due to a strong product pipeline and early signs of revival in crop protection demand.

“We are also witnessing continued deferment in offtake for certain key products by agro majors. Encouragingly, agrochemicals used in crop protection are now showing signs of revival. This, along with a strong pipeline for the coming quarter, gives us the confidence to finish the year on a strong note.”

— Ashish Bharat Ram, Chairman and Managing Director

The company is investing in new capacity to expand its presence in the pharmaceutical intermediates market. This capital expenditure demonstrates management’s commitment to diversifying the business beyond agricultural chemicals.

“We are adding a second pharma intermediate plant at an investment of INR 180 crore to come up at our Dahej site, which is expected to be commissioned in the next 8 months.”

— Ashish Bharat Ram, Chairman and Managing Director

The cooling gas business is seeing high prices due to supply limits in China and strong global demand. This provides a significant boost to profitability during months that are usually slow for the industry.

“The refrigerant gas segment performed exceptionally well despite this being a traditionally lean season, supported by firm global HFC prices, driven by China’s quota-led supply restrictions and steady international demand.”

— Ashish Bharat Ram, Chairman and Managing Director

The industry is shifting toward more environmentally friendly refrigerant gases due to global regulations. Companies that can build efficient plants for these new products will likely gain a major competitive advantage.

“The transition to new generation gases is inevitable... those who will be able to develop the technology and put up plants which are capex efficient and opex efficient, will have the opportunity to really benefit.”

— Ashish Bharat Ram, Chairman and Managing Director

Prices for a key packaging film product have started to rise as Chinese competitors reduce their excess supply. This price increase should help improve the profit margins of the company’s packaging division soon.

“In recent weeks, we have also seen some price improvement in BOPET from China, which should bode well for us in the coming months.”

— Ashish Bharat Ram, Chairman and Managing Director

Unanticipated rupee depreciation negatively affected SRF’s currency hedges, a trend expected to persist for several quarters, though a weak rupee is generally beneficial for the company.

“However, our forward positions on rupee-dollar hedges have had a negative impact due to the unprecedented rupee depreciation, something we could not anticipate. While we expect the negative impact from forward covers to stay for a few more quarters, in general, a weak rupee will be extremely favorable for us.”

— Ashish Bharat Ram, Chairman and Managing Director

The company is intentionally expanding into pharmaceuticals to reduce its dependence on the volatile agricultural market. This strategy aims to create more stable and predictable earnings for shareholders over time.

“We have always maintained that we will continue to grow agro, but we also want to derisk from agro... And that’s really why we are building on the pharma story.”

— Ashish Bharat Ram, Chairman and Managing Director

Future production limits for certain gases will be based on how much a company produces over the next few years. This makes current production levels critical for securing the right to manufacture and sell these products in the future.

“It is the baseline production of 2024, 2025, 2026, that is going to give you the quotas going forward... India will not go back on any commitment on the global platform.”

— Ashish Bharat Ram, Chairman and Managing Director

There is currently an oversupply of R32 refrigerant gas in India, forcing manufacturers to rely on export markets. Investors should watch how this domestic overcapacity affects pricing if global demand slows down.

“Our analysis says that the domestic demand for R32 is probably in the range of 17,000 - 18,000 tonnes... Capacity is substantially more than that, and that’s why everybody is exporting as well.”

— Ashish Bharat Ram, Chairman and Managing Director

Management aims to double the revenue contribution from the pharmaceutical sector within the specialty chemicals division. Achieving this target would diversify the company’s income and likely improve overall valuation.

“The pharma business is, maybe in the region of close to 10% of our total specialty chemicals business; and we’ve always said that we want this to go to atleast 20%.”

— Ashish Bharat Ram, Chairman and Managing Director

Cipla Limited | Large Cap | Pharmaceuticals

Cipla Limited is a leading global pharmaceutical company with a dominant position in the Indian respiratory, anti-diabetes, and cardiology segments. The company specializes in complex generics and has a robust presence across North America, South Africa, and emerging markets.

[Concall]

The company is introducing innovative delivery mechanisms like inhaled insulin to differentiate its diabetes offerings. These unique products help the company maintain premium pricing and patient loyalty.

“We further strengthened our diabetes portfolio with the launch of Afrezza, India’s first and only inhaled rapid-acting insulin, marking a significant milestone in transforming insulin therapy.”

— Achin Gupta, MD & Global CEO Designate

The US business is transitioning away from its heavy reliance on the drug Lenalidomide. Investors should look for new product approvals to stabilize and eventually grow US revenue streams.

“In North America, we delivered quarterly revenue of $167 million, which included a small contribution from Lenalidomide. We expect upcoming launches to help cushion the decline in Lena revenues and provide long-term growth.”

— Achin Gupta, MD & Global CEO Designate

Cipla has a heavy launch schedule for complex respiratory and peptide products over the next fiscal year. These high-value launches are critical to the company’s strategy of replacing maturing generic revenue.

“By this time, our pipeline includes four significant respiratory launches, including generic Advair. During the quarter, we will be launching generic Victoza, and we further expect to launch three more peptide assets in FY’27.”

— Achin Gupta, MD & Global CEO Designate

Management is very confident that major respiratory product approvals are imminent within the next six months. Success here would act as a major catalyst for restoring earnings growth in the US market.

“From 0 to 6 months, we are calling for... two big respiratory launches, and one smaller launch... there is a fair amount of belief that... the launches are more likely than not to happen soon.”

— Umang Vohra, MD & Global CEO

The company expects its new products to fully replace lost generic revenue while offering high profitability. Because these assets are developed in-house, Cipla will not have to share profits with external partners.

“Collective our new launches will make up for the generic side revenue drop... important to note is that our respiratory assets are all in-house. So, they will come at a very good gross margin.”

— Ashish Adukia, Global CFO

New Indian manufacturing quality regulations are likely to hurt smaller competitors but benefit large players like Cipla. This regulatory shift could lead to market consolidation and higher market share for established companies.

“As far as Schedule M is concerned... It is more of an impact for smaller players who will need to ramp up... From CIPLA perspective, we do not have much or any impact because we are already at or better than the standards.”

— Achin Gupta, MD & Global CEO Designate

Auto Ancillary

VST Tillers Tractors | Small Cap | Auto Ancillary

VST Tillers Tractors Limited was established in the year 1967 by the VST Group of companies, a well-known century old business house in South India. The company is pioneers in manufacturing of power tillers, tractors, engines, transmission, power reaper and precision components over five decades.

[Interview]

March performance was normal despite a high base last year; overall demand remained strong in Q4 with solid growth across segments.

“It has been a good year for us. The March performance has been normal. I would say the previous March was high due to pent-up demand caused by various reasons. So, compared to that, this March was quite good. Overall, demand was quite strong in Q4, and that is reflected in our numbers.”

— Antony Cherukara, CEO

Strong growth across key segments, with power tillers and weeders leading, while tractors also saw steady domestic growth.

“Power tiller sales grew upwards of 35% for the full year. Volumes in the power weeder space grew upwards of 52%. Domestic tractor sales grew by almost 19%.”

— Antony Cherukara, CEO

International business saw pressure in Q3 but recovered partially in Q4, ending with marginal decline.

“We did see a drop of almost 20% by the end of Q3 in the international business, but we were able to recover a significant portion in Q4. We ended with single-digit degrowth in international business, but given the circumstances, it has been quite good.”

— Antony Cherukara, CEO

Near-term outlook remains uncertain due to geopolitical risks and monsoon concerns, making guidance difficult.

“The coming year is a bit tricky at this point. There are several factors at play. There is the war, and the supply situation is becoming a bit critical. If this continues, we could face supply issues… Then there is the monsoon, which is predicted to be weaker this year… giving a specific number or percentage right now is extremely difficult.”

— Antony Cherukara, CEO

EV tillers and weeders seen as a major opportunity driven by lower total cost of ownership for farmers.

“We believe that with EV tillers and EV weeders, the total cost of ownership will reduce significantly for farmers, which should drive adoption.”

— Antony Cherukara, CEO

EV segment is still a new category, and growth visibility will improve over the next few quarters.

“This is a new category we are creating, and it’s difficult to give a specific growth number at this stage. Over the next couple of quarters, we will get better clarity on how fast this can scale.”

— Antony Cherukara, CEO

Mechanisation among small and marginal farmers is accelerating, supported by strong growth in existing products.

“Mechanisation in the small and marginal farmer segment is growing rapidly… this is evident from our weeder growth of 52% and tiller growth of 35%.”

— Antony Cherukara, CEO

Company targets ₹3,000 crore revenue by FY30, driven by sustained high growth.

“We intend to reach ₹3,000 crore by FY30… to achieve this, we need to grow at about 24–26% CAGR over the next 4–5 years.”

— Antony Cherukara, CEO

Monsoon even slightly below normal could still support mechanisation demand due to healthy reservoir levels.

“If the monsoon is normal or even slightly below normal… it should still be supportive, given that reservoir levels are relatively healthy.”

— Antony Cherukara, CEO

₹3,000 crore target is achievable through organic growth; inorganic opportunities remain optional upside.

“The ₹3,000 crore target is achievable through organic growth alone at 24–25% CAGR. Any inorganic growth would be additional.”

— Antony Cherukara, CEO

Company continues to evaluate inorganic opportunities but without a defined timeline.

“We are continuously exploring inorganic opportunities… however, it is difficult to assign a timeline to them.”

— Antony Cherukara, CEO

No immediate plans to monetise Whitefield land, though it remains a future value-unlocking opportunity.

“There is no update at this point… it is a potential opportunity to unlock value, but it will be done at the right time.”

— Antony Cherukara, CEO

Endurance Technologies | Mid Cap | Auto Ancillary

Endurance Technologies manufactures and sells aluminium die casting products, including alloy wheels, suspension, transmission, and braking systems. The company operates in India and exports its products internationally, catering to both domestic and global markets.

[Interview]

Geopolitical disruptions have created supply chain challenges, but the company has managed to maintain production through operational agility and contingency planning.

“Yes, this is a difficult situation right now. The difficulty is in ensuring that we run our production lines and get access to materials, fuel, gases… what was really put to test was the agility of our entire team handling the supply chain and the ability of our vendor base to support us… in terms of whether our production has been affected — as of now, no.”

— RS Rajagopal Sastry, Group CFO

Enterprise risk management and contingency planning helped mitigate disruptions, including switching to alternate fuels.

“We have put in place all the plans under our enterprise risk management approach where such disruptions are already documented… we have also ensured alternate fuels for our smelters and other areas requiring gas.”

— RS Rajagopal Sastry, Group CFO

Input costs, especially aluminium and gases, have risen sharply, though the company views this as a temporary phase.

“There has been a significant increase both in the spot prices of gases and also in aluminium… we are treating this as a temporary blip so that we do not damage long-term relationships with customers.”

— RS Rajagopal Sastry, Group CFO

Strong pass-through mechanisms are in place, with customer agreements allowing recovery of commodity cost increases.

“We do have arrangements where commodity increases will be passed on to customers… some on a quarterly lag, some on a real-time basis.”

— RS Rajagopal Sastry, Group CFO

Aluminium exposure is significant, making cost movements critical, but recovery mechanisms remain intact.

“Almost 54% of our material has some amount of aluminium in it… however, we have arrangements to pass it on to the customers.”

— RS Rajagopal Sastry, Group CFO

Gas supply challenges are being actively managed through fuel substitution and operational adjustments.

“Regarding gases… we are moving to liquid fuels, changing burners… it’s a lot of agility and team strength which is coming into play.”

— RS Rajagopal Sastry, Group CFO

Aluminium price spike has been sharp (~20–25%), but the company expects full compensation from customers.

“Significant increase in spot prices… close to 20–25% is what we are witnessing… we have the arrangement that we get compensated 100% of the increases.”

— RS Rajagopal Sastry, Group CFO

Margins may compress in percentage terms due to pass-through structure, but remain protected in absolute terms.

“Margins in percentage terms will get affected… but on a rupee-to-rupee basis we will still get all that which we are spending.”

— RS Rajagopal Sastry, Group CFO

Revenue outlook remains strong, supported by sustained demand in the two-wheeler segment.

“Revenue is very strong… demand as far as two-wheeler production has been very strong and is continuing to be so.”

— RS Rajagopal Sastry, Group CFO

Premiumisation trend is emerging in two-wheelers, supporting higher value realisations.

“There is a premiumisation which we are seeing… customers are opting for higher-value products.”

— RS Rajagopal Sastry, Group CFO

Consumer Durables

Blue Star Limited | Mid Cap | Consumer Durables

Blue Star is a leading Indian company offering a wide range of air conditioning and commercial refrigeration products. It also provides air purifiers, water purifiers, air coolers, cold storages, and specialty solutions. Their AC and refrigeration products cater to both residential and commercial segments.

[Interview]

FY26 was a challenging year impacted by weak summer demand, GST disruptions, and supply chain issues, though revenue impact remained limited while profitability was under pressure.

“A very bad and challenging year is coming to an end… it started with a very weak summer season and GST-related disruptions, followed by trade war-related supply chain issues… the room air conditioner revenue shortfall compared to the previous year would have been only around 5%, but profitability remains a question mark.”

— B Thiagarajan, Managing Director

Management is more concerned about demand-side risks and pricing power rather than supply constraints.

“I am not so much worried about LPG supplies… I am more concerned about market sentiment and the extent to which price hikes can be passed on.”

— B Thiagarajan, Managing Director

Price hikes of ~13% are being implemented, driven by regulatory changes and input cost inflation.

“The price hike is around 13% — about 5% due to energy label changes and around 8% due to input cost increases.”

— B Thiagarajan, Managing Director

Dealer inventory built at old prices is delaying full price pass-through and impacting primary sales.

“Inventory built at old prices is still in the system… from February onwards, billing had to reflect the increase, but since old inventory was still in the market, there was resistance.”

— B Thiagarajan, Managing Director

Summer demand has been weak so far, and a strong season requires significantly higher growth.

“For it to be a truly good summer season, growth needs to be around 25–30%… but so far, that is not happening.”

— B Thiagarajan, Managing Director

Worst-case scenario assumes at least 15% volume growth, highlighting downside expectations.

“At least 15% growth over last year — that would be the worst case.”

— B Thiagarajan, Managing Director

Maintaining margins depends on successful price pass-through despite demand uncertainties.

“I need to pass on price increases to maintain margins of around 8–8.5%.”

— B Thiagarajan, Managing Director

Production and supply are not key risks; demand recovery and temperature trends are critical.

“Production disruptions are not the issue… the key issue is that temperatures need to rise and consumer sentiment should not deteriorate.”

— B Thiagarajan, Managing Director

Future risks include further raw material inflation and rising consumer financing costs.

“Plastics, intermediaries, and steel could push prices further… around 40% of consumers buy through finance, so if interest rates go up, that becomes an additional burden.”

— B Thiagarajan, Managing Director

Base case outlook suggests 20–25% revenue growth for FY27, contingent on normalization.

“The base case… would be around 20–25% revenue growth… if the conflict ends, full-year growth could also be around 20–25%.”

— B Thiagarajan, Managing Director

Summer remains a critical contributor to annual performance.

“Summer accounts for around 40% of annual sales.”

— B Thiagarajan, Managing Director

B2B segment, especially data centres, provides partial insulation against weak consumer demand.

“The B2B segment… can offset roughly 50% of room air conditioner profits in a weak summer… data centre demand is helping sustain growth momentum.”

— B Thiagarajan, Managing Director

Alternative processes are being deployed to mitigate LPG dependency, with minimal cost impact.

“Alternatives like DG sets for powder coating and oxy-acetylene for brazing are being implemented… it does not materially increase costs.”

— B Thiagarajan, Managing Director

Management reiterates that sentiment-driven demand risks outweigh supply-side disruptions.

“I am not worried about supply chain disruptions — I am more concerned about market sentiment and consumer demand.”

— B Thiagarajan, Managing Director

Havells India Limited | Large Cap | Consumer Electricals

Havells India is a leading Fast Moving Electrical Goods (FMEG) company with a diverse portfolio ranging from industrial cables to consumer appliances. The company operates prominent brands like Havells, Lloyd, and Crabtree, maintaining a robust pan-India distribution network.

[Concall]

Management notes that the previous oversupply of air conditioners and fans in the market is finally clearing up. This sets the stage for a potential recovery in sales for the Lloyd brand as the summer season approaches.

“As regards to the cooling products, we saw a challenging environment in the last couple of quarters. However, now the channel inventory is normalizing.”

— Anil Rai Gupta, Chairman and Managing Director

Havells is expanding its range to cover almost every electrical and electronic need for modern homes. A broader product list gives them more power when negotiating with distributors and makes their marketing more efficient.

“We are becoming a complete product portfolio in terms of electrical and electronics is concerned... this will give us more leverage at the channel as well as utilizing the brand fully.”

— Anil Rai Gupta, Chairman and Managing Director

The company has strong pricing power in its wires and cables segment, allowing it to pass on changes in copper and aluminum prices to customers. This stability helps protect the segment’s profit margins despite volatile raw material markets.

“For cables and wires business, at least, I think there is far more predictability in terms of passing on price increases or price reductions.”

— Anil Rai Gupta, Chairman and Managing Director

Lloyd products are expected to see significant price increases due to new energy ratings and rising production costs. While this helps margins, investors should monitor if higher prices reduce consumer demand during the peak season.

“Overall, there could be a 5% to 10% increase [in prices] this quarter [for Lloyd].”

— Anil Rai Gupta, Chairman and Managing Director

Cables growth was boosted by public infrastructure spending and distributors stocking up on inventory. Investors should be aware that some of this growth might slow down as channel inventory levels even out.

“Cables has been higher because of the government infrastructure spends... last quarter, it’s primarily some sort of channel stock build-up, which has happened.”

— Anil Rai Gupta, Chairman and Managing Director

The company is moving its investment focus from building factories to research and development. High capital expenditure suggests a long-term commitment to product innovation rather than just manufacturing capacity.

“Lloyd pretty much is done in this present year. But there will be a higher capex spend for the new R&D center... overall, it should be in the range of another INR 1,000 crores in the coming year.”

— Anil Rai Gupta, Chairman and Managing Director

Marketing budgets are flexible and directed toward products with the best growth potential, while the primary focus remains on profit margins. This disciplined spending approach aims to balance brand growth with bottom-line health.

“A&P spend is not something very specific to any product category... we will continue to focus on margin improvement. And even with these cost increases, I think there are opportunities of cost rationalization as well.”

— Rajiv Goel, Executive Director

The solar business is currently the fastest-growing part of Havells’ emerging segments. Management expects this business to become a significant contributor to both total sales and overall company profits.

“In the ‘other’ solar is moving much faster than the other product categories... we have a very positive outlook for solar in the coming times, both in terms of revenue growth as well as margin expansion.”

— Anil Rai Gupta, Chairman and Managing Director

By investing in Goldi Solar, Havells has secured its supply chain for solar panels without having to build its own factory. This move allows them to offer complete renewable energy solutions to customers more reliably.

“The strategic investment in Goldi was to assure that we have a strategic supply of modules available... there is a larger ecosystem play which Havells can do.”

— Rajiv Goel, Executive Director

Smaller regional brands have recently gained some market share from national players due to cost advantages. Management remains confident that long-term population trends will eventually favor premium, established brands like Havells.

“Post-COVID... unorganized and regional competition also starts gaining some ground... I don’t think India demographics are such where we will continue to see tepid demand.”

— Anil Rai Gupta, Chairman and Managing Director

FMCG

Pajson Agro India | Micro Cap | FMCG

Pajson Agro India Ltd. processes raw cashew nuts into kernels and dry-fruit products under the “Royal Mewa” brand. It sources nuts from India and Africa, operates a modern plant in Visakhapatnam, and supplies to domestic and export markets.

[Transcript]

African cashew crop quantity is sufficient, but early indications suggest slightly poorer quality compared to last year.

“For the upcoming season, if we talk about quantity, we see that the crop is sufficient. The quantity is there across all countries. If we compare the quality this year to last year, the overall quality of the crop seems to be a little poor, but it is still very early to say.”

— Ayush Jain, Promoter, Chairman, and Managing Director

The company anticipates strong demand for the new plant’s output, despite lacking pre-planned off-take agreements, due to existing customer shortages and high repeat business.

“We do not have pre-planned agreements because customers are always looking for delivery timelines. Until production starts, we cannot give those timelines. However, we are always short of product. More than 80% of our revenue comes from repeat customers. We are currently unable to serve many new customers, and our institutional clients are demanding more quantities.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Pajson Agro’s top institutional clients include major packers like VRO, Farmley, and Happilo, with significant wholesale presence in key northern Indian states.

“It is a mix of both wholesale and institutional customers. The institutional customers are some of the largest packers in the country, namely VRO, Farmley, and Happilo. Our top wholesale customers are predominantly based in Delhi, Uttar Pradesh, and Rajasthan.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Large customers prefer Pajson Agro due to the specialized skills, experience, and complex supply chain management required for efficient cashew processing, which is difficult for multi-product companies to manage in-house.

“Cashew processing is highly skilled and experience-backed. Establishing a raw material supply chain and managing the technical aspects of processing is difficult. Since these companies deal with multiple products, focusing only on a cashew plant would be tough for them.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Middle East disturbances have not disrupted Pajson Agro’s West Africa-India supply chain, though increased fuel prices have resulted in slightly higher freight costs.

“It is unfortunate that the Middle East is going through these disturbances, but our supply chain comes from West Africa to India. There is no direct impact on the shipping routes we take. The supply chain has not been disrupted. However, because fuel prices have gone up, there is a slight increase in freight prices.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Rupee depreciation is largely passed on to customers through higher finished kernel prices, mitigating long-term P&L impact.

“Rupee depreciation is mostly passed on to customers. The prices for finished kernels increase accordingly. In the short term, say one to two months, it might impact the balance sheet, but we make provisions for that beforehand. In the long term, currency impacts are definitely passed on to the customers.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Technology upgrades and improved SOPs have enhanced cashew processing yields, reduced waste, improved quality, and ultimately increased both revenue and profit margins.

“The main factor is technology. Cashew processing has evolved, and high-capex technology now improves the yields of cashew wholes. It reduces broken percentages, contamination, and improves the color of the kernels. Enhancing our technology and Standard Operating Procedures (SOPs) has helped us increase both revenue and margins.”

— Ayush Jain, Promoter, Chairman, and Managing Director

A minimum capacity of 15,000 metric tons is essential for efficient cashew processing, with larger scales offering an additional 2-3% margin advantage over smaller operations.

“A plant would need at least 15,000 metric tons to match our production efficiency. A 1,000-ton plant might only make 1% margin or even lose money; they are effectively cottage industries. Moving from 18,000 tons to 50,000-55,000 tons can provide an additional 2-3% margin difference.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Pajson Agro aims to significantly increase the B2C segment’s contribution to 15% of its total revenue within the next three financial years.

“Currently it is very small, but our target for the next three financial years is to reach 15% of total revenue.”

— Ayush Jain, Promoter, Chairman, and Managing Director

The company anticipates 30-40% revenue growth in FY27, primarily due to the new plant commencing production in late FY27, with a baseline growth of 10-15% from existing operations.

“Moving forward in FY27, as the new plant comes into production in November or December, we look at growth of 30-40% for the year. Even if we encounter any unforeseen circumstances, we are looking at 10-15% growth from the current plant in terms of revenue.”

— Ayush Jain, Promoter, Chairman, and Managing Director

Cement

Ambuja Cements Limited | Large Cap | Cement

Ambuja Cements is a leading Indian cement manufacturer and a key part of the Adani Group’s industrial portfolio. The company is currently integrating several major acquisitions, including ACC and Orient Cement, to create a massive unified building materials platform.

[Concall]

The company is expanding its market presence much faster than the rest of the cement sector. This rapid growth suggests they are successfully capturing a larger portion of national cement demand.

“This has been our decisive and strategically important quarter for Ambuja Cements. We delivered industry-leading performance, growing our volumes at 2x the industry average.”

— Vinod Bahety, Chief Executive Officer

Management is combining multiple cement brands into a single operational entity to improve efficiency and scale. For investors, this merger is expected to boost profit margins and simplify the corporate structure.

“The proposed amalgamation of ACC and Orient Cement with Ambuja Cements... marks the beginning of a unified One Cement Platform that will accelerate our growth trajectory.”

— Vinod Bahety, Chief Executive Officer

Cement prices are rising across key regions, helping to reverse previous periods of price volatility. Sustained price hikes directly translate into better revenue and earnings for the company.

“Southern markets are leading increases in the range of INR 15 to INR 20 for non-trade, while the Northern market has witnessed price increase in the range of INR 5 to INR 10.”

— Vinod Bahety, Chief Executive Officer

The company is shifting its focus toward retail ‘trade’ customers who typically pay higher prices than large industrial buyers. Increasing this share should improve the company’s average selling price and profit margins.

“Current share of trade is 65% and non-trade is 35%. Down the line, it will be moving towards 70%-30%.”

— Vinod Bahety, Chief Executive Officer

The company aims to shift its sales mix to 70-30 (trade-non-trade) and eventually 75-25, leveraging brand equity to regain trade market leadership and improve realizations.

“Our focus will be to regain the leadership position of Adani Cement on the trade side on back of the strong brand equity, what we have. So therefore, forward-looking, I can say 70%-30%... and gradually down the line, 75%-25%... So that will definitely help me to improve my realization.”

— Vinod Bahety, Chief Executive Officer

The company identifies immediate opportunities to save significant money on power and fuel expenses. These efficiency gains are expected to flow directly into higher earnings per ton of cement produced.

“INR 100 to INR 125 a ton, I see improvement possible quickly on the power. On the fuel, almost INR 150 reduction is what we would like to peg ourselves.”

— Vinod Bahety, Chief Executive Officer

The company is expanding its footprint into new geographic areas like Assam to tap into regional demand growth. Diversifying plant locations helps reduce transport costs and provides access to new customer bases.

“Assam, Mundra are -- let us say, Mundra is still a brownfield... Assam is greenfield... which will be up and running in February.”

— Vinod Bahety, Chief Executive Officer

Cement pricing strengthened in January with significant increases in Southern and Northern non-trade markets, indicating a more stable pricing environment compared to previous years.

“Pricing has entered January on firmer ground as we are seeing a similar uptick in price in January, along with double-digit volume growth... Importantly, these hikes have helped making a departure from the rollback-prone patterns of the previous years.”

— Vinod Bahety, Chief Executive Officer

The company plans an annual capital expenditure of approximately INR 10,000 crores, with INR 8,000 crores allocated for growth and INR 2,000 crores for efficiency improvements.

“for the growth part, say, ballpark, INR 8,000-odd crores and for the efficiencies and all, another, say, INR 2,000-odd crores... ballpark, yes, INR 10,000-odd crores, you can consider... This is like I’m saying yearly capex.”

— Vinod Bahety, Chief Executive Officer

Energy

Gujarat Gas Limited | Large Cap | Utilities - Gas Distribution

Gujarat Gas Limited is India’s largest city gas distribution entity, operating across 27 geographical areas in six states and one union territory. The company manages a vast network of over 44,500 kilometers of pipelines serving millions of domestic, industrial, and commercial customers.

[Concall]

Management expects the corporate restructuring and merger process to be finalized by April 2026. This timeline provides clarity for shareholders regarding the upcoming allotment of shares in the merged entity.

“There were certain queries from MCA which we have addressed and we are expecting that final hearing of the matter should come up somewhere in middle of February. That takes us to completion of the scheme by end of April, including allotment of shares to GGL and GTL shareholders.”

— Sandeep Dave, Company Secretary and Head of Corporate Communications

Industrial demand in the Morbi cluster suffered because propane was significantly cheaper than natural gas. This pricing disadvantage explains the volume contraction seen in the company’s industrial segment.

“As anticipated, the propane prices remained considerably lower than the GGL’s natural gas prices due to which Morbi volumes were lower during the quarter.”

— Dipen Chauhan, Head of Industrial Marketing and Business Development

The CNG segment is seeing strong growth, particularly in new markets outside the home state of Gujarat. This geographical diversification helps insulate the company from regional industrial volatility.

“CNG sales rose by 11% year-over-year, with Gujarat recording a 9% increase and areas outside Gujarat delivering a notable 22% growth, underscoring GGL’s success in deepening its presence across geographies.”

— Dipen Chauhan, Head of Industrial Marketing and Business Development

Low-cost domestic gas allocation from the government continues to decline, forcing the company to buy more expensive market gas. This trend puts pressure on the company’s ability to maintain low prices for the transport sector.

“On the sourcing side, APM gas allocation shortfall has increased from 45% to 51% of our total requirement. Shortfall in CNG is currently 64% and the same is being met through spot as well as long-term contracts that we have.”

— Devendra Agarwal, Executive Director - Commercial

Gujarat Gas plans to offer propane as an alternative fuel solution to retain industrial customers and market share, leveraging GSPC’s identified storage locations and securing unloading capacity.

“To counter this challenge, our parent company, GSPC, has identified locations for storage and handling of propane. We are currently in advanced talks to reserve unloading capacity, ensuring that we have access to physical infrastructure, to basically capitalize on this opportunity. To manage competition, we’ll be actively offering propane as an alternate fuel solution, ensuring that we retain our customers, maintain customer relationship and market share in the industrial belt of Morbi and other industrial locations.”

— Devendra Agarwal, Executive Director – Commercial

The global LNG market is expected to experience a significant supply glut and downward pressure on spot prices over the next 2-3 years due to new liquefaction capacities, which bodes well for India’s long-term demand.

“On the LNG market side, the LNG market over the next 2- 3 years is projected to experience a significant supply glut driven by massive wave of liquefaction capacities coming in, particularly, from the U.S. and Qatar. And this surplus is expected to put downward pressure on spot prices in Europe and Asia, although the long-term demand growth remains intact, especially in emerging economies like China and India.”

— Devendra Agarwal, Executive Director – Commercial

New long-term gas supply contracts are scheduled to begin deliveries by the middle of 2026. This will reduce the company’s reliance on volatile spot market prices and stabilize sourcing costs.

“And then going forward in middle of 2026, we expect a lot of term contracts to start get delivering volumes into India.”

— Management, Corporate Leadership

The company plans to significantly expand its fuel retail footprint to over 1,000 stations within a few years. This aggressive infrastructure buildup is intended to capture the rising demand for vehicle gas.

“I think I won’t be surprised if we’ll enter into 4-digit number in coming 2 to 3 years, that is we may cross 1,000 CNG stations.”

— Management, Corporate Leadership

Legal proceedings regarding third-party access to the company’s gas networks are ongoing but currently stalled in court. The continued legal protection prevents immediate competitive disruption to their distribution monopoly.

“In fact, they have concluded the hearing on open access guideline, final hearing, since May 2025. Thereafter, they have reserved the order... So once they conclude hearing and then only they will give a final verdict on this.”

— Management, Corporate Leadership

Management aims to secure up to 70% of their gas supply through long-term contracts to hedge against price spikes. Achieving this target would provide more predictable margins for the company over the long run.

“The objective is to have a stable price, less reliance on spot and maybe on an overall basis, have 60% to 70% volumes tied up on a long term basis.”

— Management, Corporate Leadership

The company plans to use its existing credit relationships and financial deposits to beat out propane competitors. Offering credit terms that other commodity suppliers cannot match is a key competitive advantage in the industrial sector.

“They already have a security arrangement in place. So if they buy propane from any other supplier, they will have to pay in advance, whereas in case of Gujarat Gas, since we already have the financial securities, we’ll give them some credit.”

— Management, Corporate Leadership

Gujarat Gas aims to increase its long-term gas sourcing from the current 39% to 60-70% to achieve stable pricing and reduce reliance on volatile spot markets.

“So basically, right now, our share of long-term gas is 39%, which obviously we want to increase it to a much higher level. So our parent company has signed a few contracts. The volumes of that will start getting delivered this year onwards partially. So I think the objective is to have a stable price, less reliance on spot and maybe on an overall basis, have 60% to 70% volumes tied up on a long term basis.”

— Devendra Agarwal, Executive Director – Commercial

That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!

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Quotes in this newsletter were curated by Meher & Kashish.

Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.

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In this edition, we have covered 11 companies across 9 industries.

InvIT

• Energy Infrastructure Trust

Logistics

• Swan Defence and Heavy Industries

Engineering & Capital Goods

• Railtel Corporation Of India

• Vikram Solar

Chemicals

• EPL Ltd

Software Services

• Ceinsys Tech Ltd

• Sagility Ltd

Building Materials

• Berger Paints India Ltd

Diversified

• 3M India Ltd

FMCG

• Varun Beverages Ltd

Healthcare

• Aurobindo Pharma Ltd

InvIT

Energy Infrastructure Trust | Micro Cap | Financial Services

Energy Infrastructure Trust is an India‑based Infrastructure Investment Trust (InvIT) owning and operating a 1,485 km natural gas pipeline and related infrastructure; it transports gas across key consumption hubs, offers imbalance services, and provides stable investor distributions through energy asset income.

[Presentation]

India’s natural gas share in the energy mix is expected to rise meaningfully, driven by strong growth in city gas distribution and industrial demand. This will increasingly be supported by LNG imports and expanding pipeline infrastructure.

The pipeline is a critical link connecting KG Basin gas to key demand centers, with volume growth driven by rising domestic production and LNG integration. Strong downside protection through long-term contracts and a stable dividend track record adds to its investment appeal.

The asset plays a key role in transporting gas from the KG Basin, which holds a significant share of India’s reserves and is seeing rising production. Volumes have grown steadily, supported by increased domestic output and LNG contribution across sectors.

The 1,485 km pipeline connects India’s east and west coasts, enabling efficient gas transmission across regions. Backed by long-term agreements with Reliance and regulated tariffs, the asset offers stable and predictable cash flows.

Logistics

Swan Defence and Heavy Industries | Small Cap | Logistics

Swan Defence and Heavy Industries is currently engaged in the business activity viz. designing and manufacturing of ships primarily for defence sector, commercial shipbuilding, refits, repairs, etc. The Company is having integrated shipbuilding facilities (Shipyard), which is the largest engineering infrastructure in India and also one of the largest in the world.

[Presentation]

Swan Group is a diversified infrastructure conglomerate with strong growth momentum (~116% revenue CAGR), operating across textiles, real estate, energy, technology, and shipbuilding. Its multi-sector presence and scale position it well to capitalize on India’s infrastructure and industrial growth.

India’s ship repair market is expected to grow to ~$1.7 bn by 2033, driven by defence needs, commercial fleets, and regional demand. Both domestic and international opportunities create strong long-term visibility for ship repair players.

Offshore wind and energy fabrication present a large upcoming opportunity, with strong growth in foundations and tower markets. Strategic coastal locations and proximity to projects enhance execution advantages.

Government-led PSU demand (~$20 bn over the next decade) provides strong order visibility, driven by oil, steel, and logistics requirements. Mandatory domestic sourcing further strengthens the opportunity for Indian shipyards.

India’s naval expansion (47 to 85 vessels by FY30) creates a large, multi-year order pipeline across submarines, frigates, and support vessels. This positions defence shipbuilding as a key long-term growth driver.

Defence production and capex are set for strong growth, with increasing allocation toward naval modernization. Rising fleet size and sustained budget support provide long-duration visibility for shipbuilders.

Policy support through subsidies, incentives, and long-term maritime visions (2030, 2047) aims to position India among top global shipbuilding nations. Large investments and job creation plans strengthen the ecosystem.

India’s commercial shipbuilding and repair markets are expected to grow at strong double-digit CAGRs (~25%+), supported by policy push and cost advantages. Increasing localization can significantly reduce forex outflows.

Global shipbuilding is dominated by China, Korea, and Japan, with India holding <1% share despite handling ~95% of trade via sea. This highlights a massive opportunity for India to scale its shipbuilding capabilities.

Engineering & Capital Goods

Railtel Corporation Of India | Small Cap | Engineering & Capital Goods

Railtel Corporation Of India Limited is a major neutral telecom infrastructure provider in India. It offers high-capacity DWDM technology and MPLS network to meet critical communication needs of Indian Railways and other clients. The company also manages data centers in Gurugram, Haryana and Secunderabad, Telangana for hosting essential applications.

[Presentation]

RailTel has a strong orderbook of ₹10,166 Cr, largely driven by government clients, with state governments and Indian Railways forming the bulk. This provides high revenue visibility and stability given the public-sector focus.

RailTel is expanding into data centres, AI-led railway safety (KAVACH), and global projects, diversifying beyond core telecom. These initiatives open new growth avenues while strengthening its digital and international presence.

RailTel plays a critical role across telecom, ICT, and signalling for Indian Railways, including Wi-Fi, surveillance, and KAVACH deployment. Its deep integration into railway operations creates strong entry barriers and recurring demand.

The company offers a diversified portfolio spanning telecom, cloud/data centres, and turnkey projects like smart cities and signalling. This broad capability positions RailTel as a full-stack digital infrastructure player.

Vikram Solar | Small Cap | Engineering & Capital Goods

Vikram Solar and its subsidiaries specialize in manufacturing and selling solar photovoltaic modules and systems. Their product portfolio includes a variety of monocrystalline silicon-based modules such as PERC modules, N-Type modules, and HJT modules, available in bifacial or monofacial configurations.

[Presentation]

India’s battery storage market is large (~321 GWh by FY35) and strongly policy-backed through PLI, VGF, and storage mandates. Low current penetration and rising EV + renewable demand create a significant long-term opportunity.

Global BESS demand is set for explosive growth (~43% CAGR), driven by renewable integration, EV adoption, and grid modernization. Storage is becoming essential to manage intermittency and ensure energy security.

While module capacity is currently oversupplied (~2.3x demand), upstream segments like cells remain underpenetrated. Over time, bottlenecks shift upstream, favoring integrated players with execution capabilities.

Demand is broad-based across utility, C&I, rooftop, and government programs like KUSUM, ensuring multi-year visibility. Annual module demand of ~75 GW highlights a strong, sustained volume opportunity.

The company is building full backward integration from modules to cells and wafers, alongside scaling BESS to 15 GWh by FY30. This positions it as a fully integrated energy solutions player with global ambitions.

India’s energy transition is driven by energy security, rising AI/data centre demand, and global supply chain shifts. Massive renewable targets and infrastructure investments create a long-duration growth runway.

Chemicals

EPL Limited | Small Cap | Chemicals

EPL Limited, formerly Essel Propack Limited, is a global company specializing in manufacturing laminated plastic tubes for FMCG and Pharma sectors. They produce packaging materials like collapsible tubes and laminates for Beauty & Cosmetics, Health & Pharmaceuticals, Food, Home, and Oral care products, along with offering packaging solutions and ancillary services.

[Presentation]

The merged entity derives ~75% of its revenue from high-growth emerging markets, with strong presence across 17 countries. Both EPL and Indovida have a heavy tilt towards these regions, positioning the business for structurally higher growth.

Emerging markets are growing ~1.5–2.5x faster than developed markets across both laminated tubes and rigid PET. This growth differential underpins sustained revenue expansion for the merged entity.

EPL and Indovida bring strong sustainability credentials, including high recyclable output and increasing use of recycled PET. This positions the company well for regulatory shifts and evolving customer preferences.

The combined entity serves a wide range of global FMCG leaders across oral care, beauty, and pharma. Strong relationships with marquee clients enhance revenue stability and cross-selling opportunities.

The merger creates an end-to-end packaging platform, combining flexible packaging (EPL) with rigid packaging (Indovida). This broadens offerings across tubes, laminates, bottles, and preforms.

The merged entity becomes one of the largest emerging market-focused packaging players with ~$1bn revenue and 20%+ EBITDA margins. This scale, combined with profitability, supports strong growth visibility.

Software Services

Ceinsys Tech Ltd. | Small Cap | Software Services

Ceinsys Tech Ltd.is a specialist in GIS & is an Engineering services solution provider company, servicing clients across a range of corporate and government segments helping improve their engineering efficiency, support global footprint and improve competitiveness..The company also in the business activities of WP, EES.

[Presentation]

The Jal Jeevan Mission has been extended to 2028 with a ₹8.69 lakh crore outlay, shifting focus from infrastructure creation to sustainable service delivery. This ensures long-term visibility in the water segment with stronger governance and state-level execution.

CS Tech AI caters to a wide mobility spectrum—from passenger and commercial vehicles to off-highway and 2/3 wheelers. Its offerings span interiors, structures, and electrical systems, enabling full-stack engineering capabilities.

The company serves diverse sectors including water, energy, infrastructure, oil & gas, transportation, and telecom. Its solutions range from digital twins and GIS to project management and operational analytics.

CS Tech AI combines geospatial intelligence with mobility engineering to deliver end-to-end solutions across industries. Strong revenue growth with stable margins is supported by a diversified segment mix, led by water and mobility services.

Sagility Limited | Small Cap | Software Services

Sagility India is a pure-play healthcare focused services provider offering technology-enabled business solutions to clients in the U.S. healthcare industry. Their clientele includes Payers such as U.S. health insurance companies and Providers like hospitals, physicians, and medical devices companies.

[Presentation]

Sagility is a scaled healthcare operations player with deep domain expertise, strong client relationships, and global delivery capabilities. Consistent growth, strong margins, and a tech-led transformation approach position it well for long-term expansion.

Automation-led clinical support reduced administrative burden and improved care efficiency, addressing delays from prior authorization processes. The solution delivered measurable impact with lower clinician workload, higher accuracy, and faster care delivery.

U.S. healthcare operations are inherently complex due to regulatory intensity, embedded clinical decision-making, fragmented data systems, and multiple stakeholders. These structural challenges make efficiency and automation critical.

Sagility continues to grow by leveraging cost efficiency, deep domain expertise, and long-standing client relationships. Its ability to deliver transformation-led outcomes with flexible commercial models drives sustained client expansion.

Rising medical loss ratios and cost pressures are pushing payers to prioritize margin recovery, cost discipline, and utilization management. Transformation and operational efficiency remain central themes across large clients.

Regulatory changes, rising utilization, and policy shifts are creating margin pressure across U.S. healthcare. At the same time, AI adoption, pricing discipline, and cost optimization are becoming key levers for profitability.

Building Materials

Berger Paints India Limited | Large Cap | Paints

Berger Paints is India’s second-largest paint manufacturer, providing a diverse range of decorative and industrial coating solutions. The company maintains a vast distribution network and is actively expanding its footprint in construction chemicals and home waterproofing.

[Presentation]

Strong performance in the auto sector is currently masking muted growth in general industrial and infrastructure coatings. This concentration increases risk if car sales peak before broader industrial demand recovers.

Elevated competitive intensity signals a shift toward defending market share against new entrants. Sustained spending on branding and distribution indicates margins will remain constrained as the company prioritizes volume and reach over near-term profitability.

Diversified

3M India Limited | Large Cap | Diversified

3M India is a diversified technology company that develops science-based solutions across safety, industrial, healthcare, electronics, and consumer sectors. It operates as a subsidiary of the global 3M Company, leveraging localized manufacturing and R&D to serve the Indian market.

[Presentation]

PBT margins rose to 19.3% as growth in higher-margin Healthcare and Consumer segments outpaced the cyclical Transportation business. This favorable mix shift improves earnings quality and reduces sensitivity to industrial cycles.

Securing technical ‘spec-ins’ at the design stage in automotive and medical sectors creates a multi-year technical moat. This deep customer integration protects future margins and ensures superior pricing power.

Expanding the Ranjangaon plant serves as a lead indicator for projected demand growth in the domestic automotive and industrial sectors. Scaling local production further optimizes logistics costs and tax efficiency.

FMCG

Varun Beverages Limited | Large Cap | Beverages

Varun Beverages is the largest franchisee for PepsiCo products outside the United States, managing a vast manufacturing and distribution network. The company operates across India and multiple African territories, leveraging a highly integrated business model to drive market share in beverages and snacks.

[Presentation]

Aggressive expansion across Africa and a 23% volume CAGR are successfully diversifying the business beyond its Indian base. This international growth de-risks the portfolio against local weather volatility while capturing high-potential emerging markets.

Acquiring Twizza and entering the alcoholic beverage segment marks a strategic pivot to reduce long-term dependency on PepsiCo. These moves structurally evolve the company by adding higher-margin categories and non-PepsiCo brand management.

The shift to a 59% low- and no-sugar product mix reflects a strategic move toward health-conscious segments. This portfolio evolution helps mitigate future sugar tax risks while supporting long-term growth in premium categories.

Healthcare

Aurobindo Pharma Limited | Large Cap | Healthcare

Aurobindo Pharma is a global pharmaceutical leader specializing in generic formulations and Active Pharmaceutical Ingredients across several key therapeutic areas. The company maintains a significant presence in regulated markets like the US and Europe while expanding its pipeline into complex biosimilars.

[Presentation]

Potential removal of Phase 3 trials for biosimilars structurally reduces R&D costs and capital intensity. This regulatory shift improves unit economics for scaling the company’s 15-product biologic pipeline.

A massive pipeline of 879 ANDAs provides a broad base for volume-driven revenue stability. Expanding the specialty and injectable portfolio helps protect overall margins from the price erosion typical of standard oral generics.

That’s it for now! Your feedback will really help shape how Points and Figures evolves. Drop it down in the comments below!

Quotes in this newsletter were curated by Meher & Vignesh.

Disclaimer: We’ve used AI tools in filtering and cleaning up the quotes from the images so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.

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Points and Figures is run by the same team that creates The Daily Brief and Aftermarket Report.

Welcome to the 52nd edition of The Chatter — a weekly newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.

We’re always eager to improve—please share your ideas on how else we can innovate “The Chatter” format to better serve your needs.

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In this edition, we have covered 20 companies across 8 industries, along with an international features.

Financial Services

• Yes Bank

• HDFC Asset Management Company

• Canara Bank

• AU Small Finance Bank

Metal

• MOIL Ltd.

Energy

• Power Grid Corporation

• Torrent Power Limited

Building Material

• Shree Digvijay Cement

• Shree Cement Limited

Engineering & Capital Goods

• KSB Limited

• Rail Vikas Nigam Limited

• Suzlon Energy Limited

Auto

• CEAT Limited

• TVS Motor Company

• Uno Minda Limited

• Hyundai Motor India

Retail

• Swiggy Limited

• Varun Beverages

• Voltas Limited

International

• Saudi Aramco

Financial Services

YES Bank Limited | Large Cap | Private Sector Bank

YES Bank is a major Indian private sector bank offering a wide range of products across retail, corporate, and SME segments. The bank has successfully undergone a structural transformation focused on asset quality improvement, deposit granularity, and cost efficiency.

[Concall]

The bank is successfully reducing its exposure to low-earning legacy government investments. This move frees up funds to be reinvested into higher-interest loans, which will naturally improve the bank’s interest margins.

Rural Infrastructure Development Fund (RIDF) balances represent mandatory deposits made by commercial banks into NABARD to cover shortfalls in Priority Sector Lending (PSL) targets, particularly for agriculture.

“As a result, our RIDF balances have continued their steady decline from a peak of around 11% in FY ‘24, to around 6.9% in quarter 3, and Bank remains well on track to further reduce it to below 5% of Total Assets by FY ‘27 in line with our guidance.”

— Prashant Kumar, Managing Director and Chief Executive Officer

The bank is intentionally avoiding very competitive loan markets where the profit margins are currently too thin. This focus on high-return lending protects the bank’s capital from being tied up in low-profit activities.

“In the Retail segment, it is important to note that the Bank has strategically chosen not to pursue aggressive growth in two major product categories, that is the Home Loans and new Car Loans, as these product sub-segments currently do not generate attractive risk-adjusted returns.”

— Prashant Kumar, Managing Director and Chief Executive Officer

Bank branches are being transformed into sales hubs for various financial products rather than just being used for taking deposits. This multi-purpose use of the branch network increases the overall revenue generated from each physical location.

“Our strategy is designed to leverage this physical network, not just for gathering liabilities, but as multi-product engines, capable of generating assets, fee income and high-velocity transaction flows.”

— Prashant Kumar, Managing Director and Chief Executive Officer

The bank has been more aggressive than its peers in lowering the interest rates it pays to depositors. This indicates strong brand trust, allowing the bank to maintain deposit growth while lowering its cost of funds.

“Along with this, the Bank has also maintained a strong focus on sustained reduction in its Cost of Deposits which has reduced to 5.6% from 6.1% last year, driven by higher deposit-rate cuts relative to the rate cuts undertaken by RBI and competitors.”

— Prashant Kumar, Managing Director and Chief Executive Officer

The amount of new loans turning into bad debt has dropped to a two-year low. Improving asset quality reduces the need for emergency provisions and makes the bank’s earnings much more predictable.

“Similarly, the Quarter 3 was the second consecutive quarter of improvement in overall Fresh Slippages, which were contained at INR 1,050 crores... This is the lowest slippage level seen in last eight quarters.”

— Prashant Kumar, Managing Director and Chief Executive Officer

The retail division has finally reached a point where its income covers its costs, ending a long investment cycle. This segment will now start contributing positively to the bank’s total profit rather than being a drag on resources.

“I’m really happy to report that this quarter, our Retail businesses have breakeven, and going forward, we would be going to see a significant contribution in the Profitability of the Bank from the Retail.”

— Prashant Kumar, Managing Director and Chief Executive Officer

The number of credit card customers missing payments has dropped sharply, indicating a much healthier loan portfolio. Better behavior in high-risk segments like credit cards supports higher overall margins for the bank.

“So entry rates in cards from 20% is down to around 12% which gives us significant confidence on the way things are panning out... both in terms of entry rates, resolution and slippage and recovery, each of the product, including cards, is showing a significant improvement.”

— Rajan Pental, Executive Director

HDFC Asset Management Company Limited | Large Cap | Asset Management

HDFC Asset Management Company is one of India’s largest mutual fund managers, offering a diverse range of investment products across equity and fixed income. The company leverages a vast distribution network and the strong HDFC brand to serve millions of retail and institutional investors.

[Concall]

HDFC AMC is successfully expanding its footprint into high-margin alternative investment vehicles like private credit. This diversification allows the company to tap into sophisticated capital pools beyond traditional retail mutual funds.

“In alternatives, we completed the first close of our structured credit fund, raising commitments of approximately INR13 billion from institutions, family offices and UHNI investors.”

— Simal Kanuga, Chief Investor Relations Officer

As the company’s funds grow larger, regulatory rules force them to charge lower fees to investors. This natural fee compression means the company must focus on operating efficiency to maintain its historical profitability levels.

“On the equity margins, I mentioned that some degree of compression is inevitable over time because you have a sliding scale structure of TER, so which naturally leads to lower expense ratio as the AUM scales.”

— Navneet Munot, Managing Director and CEO

Recent regulatory changes removing certain fee allowances will noticeably reduce the revenue potential for all asset management companies. This creates a headwind that the industry must navigate through cost management or volume growth. But, lower regulatory fees make large mutual funds more attractive by improving their net returns relative to the market index. This could lead to further consolidation where larger, established players attract more capital than smaller rivals.

“Removal of 5 basis points of additional TER, which AMCs were allowed to charge in lieu of exit load... The impact for the industry as a whole is definitely material.”

“The positive side of this change, if I can highlight, one is reduced TER and hence, even better alpha. So clearly in favor of larger sized funds.”

— Navneet Munot, Managing Director and CEO

The company is currently returning nearly all of its annual earnings to shareholders in the form of dividends. This highlights the asset-light nature of the business and a strong commitment to shareholder rewards.

“Our dividend payouts for the last two years have been almost close to the entire post-tax cash profits that we generate as a business.”

— Naozad Sirwalla, Chief Financial Officer

Management is open to using its cash reserves to launch new fund categories or acquire other businesses if the price is right. Investors can expect potential inorganic growth if an opportunity aligns with their strategic goals.

“We will use the balance sheet judiciously for seeding businesses... And the third option of strategic acquisitions always is on the table.”

— Naozad Sirwalla, Chief Financial Officer

Canara Bank | Large Cap | Public Sector Bank

Canara Bank is one of India’s largest public sector banks, offering a wide range of retail, corporate, and agricultural banking services. The bank is currently focused on optimizing its credit mix through its RAM (Retail, Agriculture, and MSME) strategy to drive profitability.

[Concall]

Management has met or exceeded almost all strategic targets for the fiscal year except for margin-related metrics. This demonstrates strong execution capabilities despite broader industry-wide pressure on low-cost deposits.

“In the beginning of the year, we have given guidance numbers for 13 parameters, and we have easily surpassed and comfortably surpassed 11 parameters, except CASA and NIM, which is industry challenge.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

The bank plans to lean into its strong retail lending momentum to drive future credit growth. This shift towards granular retail loans typically helps in diversifying risk and improving yields.

“Our strategy going ahead is to further capitalize because if you see our guidance number on advances, our advances growth is more than 13.59%. So… to capitalize on this Retail momentum that has been built.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

The transition to new accounting standards for bad loan provisions will require an estimated 10,000 crore buffer. The ability to spread this cost over four years makes the financial impact manageable relative to the bank’s annual profits.

“In the ECL under Stage 2… provisioning increases from 0.4 to 5%. And there we see that 2,500 crores additional provision will be required... If I total that one, it will come around 10,000 crores, and that can be amortized in 4 years. The impact may come to 2,000 to 2,500 crores.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

The stock of potential problem loans is declining even as the overall loan book grows. This suggests that the bank’s underwriting standards are effective and future credit losses are likely to stay low.

“Total SMA is 35,604 crores. Last year in December, it was 43,917 crores... Our SMA, on absolute numbers, it has come down from 43,917 crores to 35,604 crores. So, that’s a credible achievement, I tell you. And slippage also, it is in absolute control.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

The bank continues to benefit from selling its excess priority sector lending credits to other banks. This provides a high-margin, sustainable stream of fee income that bolsters the non-interest revenue.

“From a PSLC perspective, we don’t see much difference... There will always be surplus and deficient players of PSLC, and Canara Bank has that advantage.”

— Shri S.K. Majumdar, Executive Director

Operating expenses this quarter were elevated by roughly 250 crores due to one-time costs related to subsidiary listings and employee benefits. Investors should view the current cost structure as slightly higher than the normalized run rate.

“One was IPO charges for Canara Robeco and Canara HSBC. That needs to be absorbed by the promoter. So, for that, there is a fee of around 80 crores. Another 80 crores is of depreciation... that is around 160 crores. This is more or less around 250 crore, which is additional, which is not of a routine nature.”

— Shri S.K. Majumdar, Executive Director

Divestments in subsidiary companies contributed over 2,000 crores to the bank’s quarterly profit. This unlocks value from non-banking units and strengthens the bank’s overall capital position.

“In Q3, due to listing profits of Canara Robeco and Canara HSBC… in Canara HSBC we offloaded 14.5% stake, and in Canara Robeco we offloaded 13% stake and could gain 2,006 crores.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

The bank is intentionally slowing its lending to large NBFCs to avoid low-yielding loans. This disciplined approach prioritizes margin protection over simple volume growth.

“The NBFC exposure is at 1,51,000 crores, and it is growing at 6.09%... normally the AA, AAA rated NBFCs, when they approach us, but the rates are not competitive, then we are shying away from that because protection of NIM is also our major criteria.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

Canara Bank is investing 1,000 crores annually into technology, including a dedicated AI department for fraud and default prediction. These investments are intended to drive long-term operational efficiency and risk management.

“A vertical has been created separately for AI which is working on identification of use cases that can be implemented in the bank... Around 1,000 crores we are spending annually on digital initiatives.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

The bank generates enough internal profit to fund its growth without needing to issue new shares. This is positive for investors as it avoids equity dilution in the near term.

“We are adding around 17,000 to 20,000 profit per annum. So there is no reason… I mean, as of now, we are adequately capitalized to do business... In the immediate future, I don’t think bank will require that [QIP].”

— Shri S.K. Majumdar, Executive Director

The bank’s fastest-growing segments are also its high-yielding segments, particularly gold and retail loans. This alignment between growth and yield supports the bank’s long-term profitability goals.

“RAM sector is the strength which is growing at 18.70% and where the yield is also 8.88%... gold is also growing at 30% where the yield is around 9%.”

— Shri Hardeep Singh Ahluwalia, MD & CEO

AU Small Finance Bank Limited | Mid Cap | Private Sector Bank

AU Small Finance Bank is a leading Indian retail bank that provides financial services across vehicle finance, MSME loans, and housing finance. The bank recently transitioned into a larger franchise following its merger with Fincare SFB and is currently optimizing its digital and AI capabilities for scale.

[Concall]

Recovery in the microfinance segment has reached its best level in over a year, signaling the end of a difficult credit cycle. This stabilization reduces the risk profile of the bank’s unsecured portfolio and suggests lower future provisioning needs.

“Non-overdue collection efficiency in MFI improved to near-normal levels at 99.3% for the quarter and 99.5% for the month of December, the highest in six quarters.”

— Gaurav Jain, Interim CFO

The bank has significantly de-risked its microfinance exposure by securing government-backed credit guarantees for the majority of the portfolio. This protection limits the potential downside for investors in the event of future systemic stress in the micro-lending sector.

“83% of the MFI book is now covered under the CGFMU Guarantee Scheme, providing protection against any potential credit losses in the future.”

— Gaurav Jain, Interim CFO

Management is cautiously optimistic about resuming growth in the microfinance segment after a period of consolidation. New growth in this high-yield segment could boost overall margins if the current collection discipline is maintained.

“We are seeing green shoots in MFI business... you will see some sort of growth in MFI business for next year. But difficult to quantify in this call. We would be ready to do this kind of decision-making by April.”

— Sanjay Agarwal, MD & CEO

The bank is prioritizing caution in its credit card portfolio for another year to ensure long-term stability rather than chasing immediate growth. This measured approach suggests management is focused on quality over quantity in the unsecured lending space.

“Credit card business will go for another one year for the readjustment and settling down. And personal loan, of course, we are banking big on the whole STP journeys.”

— Sanjay Agarwal, MD & CEO

The bank will continue to lead with its core secured retail products, which offer a proven balance of risk and reward. Investors should view this as a commitment to the bank’s foundational strengths rather than pivoting to riskier new segments.

“We believe we are stronger in our retail asset strategy where wheels, mortgages, gold loan will take the front seat. We want to push our system engine there as much as possible.”

— Sanjay Agarwal, MD & CEO

Management emphasizes that their liquidity and credit-to-deposit ratios are managed with internal prudence that exceeds regulatory requirements. This focus on self-governance provides a safety cushion for investors against liquidity shocks in the banking system.

“The risk of deposit is 80% of the book, which is the CD ratio of 80%... the idea is to tell you that how solid we are in terms of our approach is not about the regulator pushing us... it is about how we want to really build ourselves on a self-governance basis.”

— Sanjay Agarwal, MD & CEO

Metals

MOIL Ltd. | Small Cap | Metals

MOIL Limited, a Schedule ‘A’ Miniratna Category-I Company, is a leading producer of different grades of Manganese Ore in India. Their product range includes High Grade Ores, Medium grade ore, Blast furnace grade ore, and Dioxide for various industries. MOIL fulfills half of India’s dioxide ore requirement and has also ventured into renewable energy with wind farms in Madhya Pradesh.

[Concall]

MOIL maintains a pricing strategy that consistently sets its domestic manganese ore prices 5-6% higher than imported prices, ensuring it captures market movements and maintains a premium.

“Our prices are always kept about 5% to 6% higher than the imported prices. So whatever movement is there in the index, that is captured in our prices... our prices will always increase slightly more than the international prices. Always, as a rule.”

— Rashmi Singh, Director Commercial

The decreasing manganese ore inventory at Chinese ports from 6 million to 4.3-4.4 million tons is a significant factor supporting upward price movements in the international market.

“inventory at Chinese ports is also one of the major factors which determine the price movement... inventory has been coming down. Earlier, it used to be around 6 million ton. Currently it’s about 4.3 million, 4.4 million ton, so inventory is low.”

— Rashmi Singh, Director Commercial

MOIL has a total capex target of INR600 crores for the current year, allocating INR325 crores for existing mine modernization and INR275 crores for potential overseas acquisitions.

“This year our capex is around INR600 crores target is there... Of this INR325 crores we are trying to achieve in our mines itself... And INR275 crores we have marked for the overseas acquisition.”

— Rakesh Tumane, Director, Finance

MOIL expects its cost of production to significantly decrease due to increased outsourcing, mechanization, and a shift to the highly productive long-hole open stoping mining method, which will reduce reliance on its substantial 48% manpower cost.

“And the way we are operating our mines is that we would be doing more of outsourcing... And we are, as Abdullah saab said, we’ll be doing more and more of mechanization... from conventional cut and fill method which is very laborious... to a long hole open stoping which is very, very productive. It is 5x to 6x or 10x more productive... So the cost of production will go down because at the moment the biggest portion of our cost of production is our manpower, which is almost around 48% something.”

— Rakesh Tumane, Director, Finance

MOIL’s cost of production for manganese ore was approximately INR 5,500 per ton in FY25 and is expected to decrease this year, positioning it competitively globally.

“last year, that is ‘24-’25 our cost of production was around... INR 5,500 per ton and this year would be around 53 something so there will be reduction in the cost of production... This is the Q1 kind of the cost of production. It is very competitive.”

— Rakesh Tumane, Director, Finance

MOIL is actively pursuing mechanization and experimenting with changing its mining methods to the more productive long-hole stoping, aiming to enhance efficiency.

“In addition to that, we are going for mechanization also... We are deploying some LHDs, SDL machines in underground and we are also thinking of changing our method of mining from conventional cut and fill to long hole stoping method also that experiments are also going on.”

— M.M. Abdulla, Director, Prod. & Plng.

Energy

Power Grid Corporation | Large Cap | Energy

Power Grid Corporation Of India operates a transmission network for power distribution and has diversified into telecom services by utilizing its transmission infrastructure. The company also offers consultancy services in areas such as power transmission, sub transmission, and distribution management.

[Concall]

Emerging technologies and industrial growth are projected to be major drivers of electricity demand, creating a robust growth environment for transmission infrastructure.

“Electricity demand is set to increase significantly as we move toward 2047, driven by data centers, artificial intelligence, electric vehicles, and industrial electrification.”

— Dr. R.K. Tyagi, Chairman and Managing Director

Aggressive renewable energy targets by 2035 necessitate substantial investment in long-distance transmission infrastructure for green energy evacuation.

“Renewable energy expansion, as per the 2035 CEA guidelines, suggests we will have 786 gigawatt of renewable capacity, with a total capacity of approximately 1,100 gigawatt. This will require long-distance green evacuation transmission systems.”

— Dr. R.K. Tyagi, Chairman and Managing Director

The company projects significant year-over-year growth in capital expenditure, with a substantial increase to over 82,000 crores by FY28, indicating a strong pipeline of projects.

“Looking ahead, our capex for next year is committed at 37,000 crores, though it will likely be higher. For FY27, it will reach 45,000 crores, and by FY28, it is projected to be more than 82,000 crores.”

— Dr. R.K. Tyagi, Chairman and Managing Director

The company forecasts a massive long-term market opportunity for transmission projects, potentially reaching 15 trillion rupees, driven by domestic demand and international interconnections.

“The 10-year visibility for transmission projects is approximately 8 trillion rupees based on peak demand projections of 459 gigawatt by 2035. If we include international interconnections with countries like Sri Lanka, UAE, Saudi Arabia, and Singapore, plus the Brahmaputra basin projects, the total visibility increases to approximately 15 trillion rupees.”

— Dr. R.K. Tyagi, Chairman and Managing Director

The company anticipates executing a substantial volume of projects, averaging 60,000 crores annually, by leveraging a high capture rate on its extensive project pipeline.

“We have visibility of 900,000 crore worth of projects up to 2035. Even at a 60% capture rate, we expect to execute 600,000 crores in projects by 2035, averaging 60,000 crores per year.”

— Dr. R.K. Tyagi, Chairman and Managing Director

The company is undergoing a strategic restructuring by merging numerous Special Purpose Vehicles (SPVs) and subsidiaries to enhance administrative efficiency and streamline management.

“Regarding governance, we have received approval to merge 19 SPVs into two. We are also pursuing the merger of 28 wholly-owned subsidiaries into two further entities. This will reduce administrative complexity and improve management.”

— Dr. R.K. Tyagi, Chairman and Managing Director

The company demonstrates strong financial health and capital allocation capability, indicating sufficient internal accruals to fund substantial annual capital expenditure requirements even after dividend payouts.

“Over the next 10 years, we anticipate an average annual requirement of 60,000 to 70,000 crores... Even after dividends, we will have enough to cover the equity requirements for a 70,000 crore annual capex.”

— Management, Company Leadership

Project commissioning timelines are shifting to a more realistic 30-36 month range, acknowledging past challenges with Right of Way and supply chain, which should improve project predictability.

“We have advised the government that 18-24 months is often not feasible due to ROW and supply chain issues. Most new projects are now being tendered with 30-36 month timelines, which we believe are realistic and achievable.”

— Management, Company Leadership

The company is adopting a selective approach to intra-state projects and seeking partnerships in the competitive Battery Energy Storage Systems (BESS) market to optimize costs and focus on high-value opportunities.

“We are participating in intra-state projects but are selective, as smaller projects require the same administrative effort as larger ones. In BESS, competition is high from smaller players. We are refining our methodology and seeking tie-ups with battery suppliers to optimize costs.”

— Management, Company Leadership

Torrent Power Limited | Large Cap | Energy

Torrent Power is an integrated Indian utility company involved in power generation, transmission, and distribution. It operates a diverse portfolio of coal, gas, and renewable energy assets across various Indian states.

[Concall]

Torrent Power is acquiring a major thermal power asset from L&T to expand its generation capacity. This acquisition significantly boosts the company’s operational portfolio with a high-efficiency supercritical plant.

“As communicated earlier today, we have entered into a definitive agreement with L&T to acquire a 100% equity stake in Nabha Power Limited. Nabha Power operates a 1.4 GW supercritical coal-based power plant located at Rajpura, Punjab.”

— Saurabh Mashruwala, Executive Director and CFO

The plant has a long-term contract in place for the next 13 years, ensuring stable revenue. The use of reliable technology suggests the plant will remain functional well beyond the current contract period.

“The PPA life is 25 years, which is fully contracted with the Punjab state discom. Out of these 25 years, the first 12 years are already over, and there are 13 years remaining. The plant was manufactured using reliable technology and is technically very sound.”

— Jagdish Mehta, Whole-time Director of Generation

The acquired site has enough space and infrastructure to support a significant brownfield expansion. Adding capacity at an existing site is usually faster and more cost-effective than starting a new project elsewhere.

“One additional module of 700 MW is possible at this site. Land is available. Once we take over the plant, we will evaluate how we can expand by adding that one module.”

— Jagdish Mehta, Whole-time Director of Generation

The plant’s pricing structure allows for full recovery of fuel costs, protecting the company from coal price spikes. This two-part tariff ensures consistent margins regardless of fluctuations in raw material prices.

“The capacity charge was about 1,400 crores, which works out to about Rs.1.49 per unit. The variable cost is roughly Rs.2.80 to Rs.2.90... it is completely recoverable.”

— Saurabh Mashruwala, Executive Director and CFO

The acquired company has significant tax credits that will lower tax payments for the next few years. This will result in higher net cash flows for the parent company in the short to medium term.

“They have net tax credits available. They are under the MAT regime right now, and we have credits available that will be used over the next 2-3 years.”

— Saurabh Mashruwala, Executive Director and CFO

The company has performed due diligence to account for past legal and regulatory disputes in the purchase price. This proactive approach helps mitigate the risk of unexpected costs from historical litigation.

“While doing the transaction, we ensured that major ongoing issues are either closed or appropriately factored into the valuation. Some regulatory issues are still pending but have been considered in our assessment.”

— Saurabh Mashruwala, Executive Director and CFO

Building Materials

Shree Digvijay Cement | Micro Cap | Building Materials

Shree Digvijay Cement Company Limited is one of India’s pioneer in manufacturing Cement. It started its operations in India in 1944 at the coastal township of Digvijaygram (Sikka) in Jamnagar District of Gujarat. Since 2019, it is a part of True North formerly known as India Value Fund Advisers (IVFA). The company has been a unique trendsetter in providing superior quality of Ordinary & Special Portland Cement.

[Concall]

The integration of Highbond Cement through a Brand Distribution Agreement is a strategic move designed to enhance the company’s capabilities and drive sustainable growth.

“Today’s discussion marks an important milestone as we integrate Highbond Cement with our operations as per the agreement. Under the brand, we have a Brand Distribution Agreement (BDA). This strategic move enhances our internal capabilities and positions us for sustainable growth.”

— Suresh Maher, Senior Vice President of Legal and Company Secretary

Shree Digvijay Cement will purchase cement from Highbond Cement at a fixed margin of INR 588 above cost and subsequently sell it at market prices.

“According to the BDA, Shree Digvijay Cement will purchase cement from Highbond Cement at cost plus a fixed margin of 588 rupees and we will sell it at the market price.”

— Vikas Kumar, Chief Financial Officer

The combined entity will achieve an installed capacity of approximately 5.2 million tons, establishing it as the third-largest cement player in Gujarat.

“The total installed capacity, including the alignment of both plants, is approximately 5.2 million tons. This makes us the third-largest player in Gujarat after UltraTech and Adani.”

— Vikas Kumar, Chief Financial Officer

The combined companies currently hold a 9-10% market share in Gujarat, with a significant 60-70% concentrated in the key Saurashtra region.

“At present, both companies combined capture about 9-10% of the total market share in Gujarat. Approximately 60-70% of this is in the Saurashtra business, which is the primary market for both Shree Digvijay Cement and Highbond Cement.”

— Vikas Kumar, Chief Financial Officer

The cement market is growing at 6-7% annually, primarily propelled by government investments in the infrastructure sector.

“The cement market is expanding by 6-7% year-on-year, driven by the government’s focus on the infrastructure sector.”

— Vikas Kumar, Chief Financial Officer

The company is actively negotiating with third parties, including Reliance, to potentially handle 1-1.5 million tons of commercial cargo at its jetty.

“We are under discussion with third-party administrators (TPAs) as well as Reliance, as there is an opportunity to handle commercial cargo. In the past, we handled one or two shipments. We are still in discussions regarding larger volumes of about 1 to 1.5 million tons.”

— Vikas Kumar, Chief Financial Officer

The combined entity currently achieves 2.4 million tons in sales volume and targets an aggressive growth rate of 150-200% of the projected 7-8% industry growth, driven by upcoming infrastructure projects.

“At present, we are capturing about 2.4 million tons of sales volume from both companies combined. We expect to grow faster than the industry. With infrastructure projects in the pipeline, we expect the market to grow by 7-8%, and we aim to grow at 150-200% of the market rate.”

— Vikas Kumar, Chief Financial Officer

The company is the leading supplier of oil well cement services in India, providing 90% of ONGC’s volume for over 30 years and also supplying other major players.

“Yes, we have been supplying to ONGC for more than 30 years. At present, we have about 90% of their total volume, as well as other players like Oil India. We are the number one supplier in India for oil well cement services.”

— Vikas Kumar, Chief Financial Officer

The oil well cement division contributes 7-8% to total volume but a disproportionately higher 15% to the company’s total sales revenue.

“In terms of volume, it is about 7-8%. However, in terms of sales revenue, it contributes about 15% of our total revenue.”

— Vikas Kumar, Chief Financial Officer

Over the past three years, the company has acquired two new limestone mines totaling approximately 20 million tons of reserves and continues to seek further acquisitions.

“In the last 3 years, we have acquired two new mines with approximately 20 million tons of reserves. We are continuously exploring options to secure more limestone.”

— Vikas Kumar, Chief Financial Officer

The Highbond deal is expected to positively contribute to earnings, primarily due to Highbond’s low production costs supported by 80% captive power and new technology.

“Yes, definitely. The cost of production for Highbond is relatively low because they have captive power that fulfills 80% of their consumption. The plant also uses new technology, leading to lower power and fuel consumption. There will definitely be an earning contribution from Highbond.”

— Vikas Kumar, Chief Financial Officer

After two challenging years, the company anticipates an upward price trend and improved demand and pricing in Q1 FY27, forecasting a strong performance for the full fiscal year 2027.

“The last 2 years were not easy for the industry, but prices started increasing in Q4. We expect the price trend to remain upward in Q1 FY27. Demand and pricing should both improve because current pricing is at a multi-year low. Cement is a cyclical business, and after two sluggish years, we expect FY27 to be good.”

— Vikas Kumar, Chief Financial Officer

Shree Cement Limited | Large Cap | Building Materials

Shree Cement Limited is a leading Indian cement manufacturer known for its cost-efficient operations and strong presence in Northern and Eastern India. The company is strategically shifting focus toward value-based pricing and expanding its Ready Mix Concrete segment to drive long-term growth.

[Concall]

Management has prioritized higher pricing over high sales volumes to bridge the price gap with the industry leader. This strategy is intended to improve long-term profitability even if it causes a temporary dip in market share.

“since October ‘24, I had been maintaining that we will be concentrating on value over volumes. That was with a purpose... we have narrowed the gap [with competitors] from about INR30 a bag to about INR15 a bag.”

— Ashok Bhandari, Senior Advisor

The company is focusing on the Ready Mix Concrete (RMC) business to improve plant usage and lower transport costs. This move helps the company reach customers more effectively while supporting its core cement sales.

“the capacity utilization will further be augmented by concentrating more and more on RMC plants, which shall give me a better geographical reach, a more logistical cost optimization and increase the volumes as well.”

— Ashok Bhandari, Senior Advisor

The company maintains the lowest fuel procurement costs in the industry while sourcing 61% of its power from renewable energy. These efficiencies protect profit margins from fluctuations in global energy prices.

“per kilocalorie cost is lowest in the industry sitting at 1.56. And my renewable energy has kept on increasing and it has reached almost 61%.”

— Ashok Bhandari, Senior Advisor

The company remains open to further expanding its presence in the UAE if market conditions become more attractive. Their existing scale in that region allows them to capitalize quickly on any local construction growth.

“We have the largest cement plant in UAE today in our control... If there is potential, if there is real demand perk up, if the operations are profitable or good enough profitable, we will certainly do whatever is required to be done.”

— Ashok Bhandari, Senior Advisor

Engineering & Capital Goods

KSB Limited | Small Cap | Engineering & Capital Goods

KSB Limited, founded in 1960 and headquartered in Pune, Maharashtra, is a leading manufacturer of pumps and industrial valves globally. With technical expertise in various types of pumps and valves, the company specializes in a wide range of products including Centrifugal End Suction Pumps, High Pressure Multistage Pumps, industrial valves, and more. KSB has invested in state-of-the-art facilities and technologies to cater to the demands of centrifugal pumps and industrial valves in India.

[Concall]

KSB anticipates thermal power plants and continued nuclear projects to be significant domestic growth drivers for the current year, alongside water/wastewater and commercial building services.

“First of all, the growth drivers for this year in the domestic, yes, energy as we presented Power segment, especially the thermal power plants, which are coming up of different users, NTPC as well as Adani as many other projects, JSW. So, energy projects in the thermal power plants is a big growth driver for this year. Apart from nuclear also, nuclear will continue...”

— Rajeev Jain, Managing Director

The ongoing geopolitical situation is beginning to impact KSB’s supply chain, particularly for castings from gas-fired foundries, which could lead to future issues if prolonged.

“Coming to the present geopolitical situation and the supply chain. Yeah, I wouldn’t say that we are not affected that that impacts has started coming a bit in the supply chain, especially in the foundries where there is restriction of the LPG and the gas supply, our furnaces are gas fired.”

— Rajeev Jain, Managing Director

KSB’s exports to the Middle East face potential temporary disruption due to geopolitical shipping challenges, though the company is actively seeking alternative routes.

“The other is of course our supplies, our exports to Middle East region. That is also we are trying to mitigate and try to find another way. But that is also under review and discussion. So, our exports to Middle East may get hampered temporarily because of shipments.”

— Rajeev Jain, Managing Director

KSB’s solar business achieved exceptional order intake growth of 112% CAGR, supported by new in-house manufacturing of solar controllers to enhance competitiveness.

“So talking about solar business, 112% order intake CAGR. Some of the major highlights, we have started in-house manufacturing of solar controller making ourselves more competitive and technical leader.”

— Mahesh Bhave, Chief Financial Officer

KSB’s recent growth is primarily driven by new product introductions and entry into previously underserved segments like solar, water/wastewater, and firefighting, leveraging a low base effect.

“I would say a major part has come through the new products, be it solar, be it water, wastewater, firefighting. The percentage you see high, because I think the base has been very low. We have not been so actively involved in those businesses... This is definitely helping the growth.”

— Rajeev Jain, Managing Director

KSB can pass on increased costs for its 50% standard business and nuclear projects (due to PVC clauses), but domestic project business remains vulnerable to commodity price fluctuations.

“Yeah, of course, it is very natural that for our standard business, which is 50% of the business, we can pass on this increase. But the remaining 50% is project business. So except the nuclear business where there is a PVC clause, there we are safeguarded.”

— Rajeev Jain, Managing Director

KSB is closely monitoring potential spikes in commodity prices due to the geopolitical situation, which could pose an external risk to profitability.

“The only concern is the commodity prices, which I did not mention earlier. But with this market geopolitical situation, we would there is a chances of the spike in commodity prices. And this is something which we will have, we are watching very carefully and that may be the only, let’s say today’s external impact which may come, but we will have to act accordingly on that.”

— Rajeev Jain, Managing Director

KSB typically achieves better margins on exports compared to domestic sales, benefiting from higher international price levels and currency depreciation advantages.

“Yes. I would say it has to be from a related party transaction. It has to be and but, yes, the price levels are much better outside than in India, I would say, definitely. And plus, when you get a lot of when the currency depreciates, it gives us also an advantage to be competitive. So definitely, I would say margins are better compared to the domestic market.”

— Rajeev Jain, Managing Director

Rail Vikas Nigam Limited | Large Cap | Engineering & Capital Goods

Rail Vikas Nigam Limited is a leading Indian public sector undertaking specializing in the implementation of rail infrastructure projects across the country. The company is actively diversifying its portfolio into highways, metro rail systems, and international infrastructure projects to drive future growth.

[Concall]

The company is on track to deliver the first Vande Bharat prototype train set by June or July of the current year.

“First prototype which is required as per the key dates will be met and will be ready with the first prototype in June or July of this year.”

— Saleem Ahmad, Chairman and Managing Director

RVNL is uncertain about direct participation in new high-speed rail corridors due to existing project assignments to other entities but plans to bid for related works.

“And about the new corridors, which have been recently announced for the high-speed train network, so we are not sure whether we can be part of that work because that work is entrusted to another organization. But definitely, we will try to take some work from the bidding point of view.”

— Saleem Ahmad, Chairman and Managing Director

RVNL projects a revenue split of 50% from railway nomination works and 50% from diversified bidding projects (Vande Bharat, BharatNet, highways, other railways) over the next three years.

“for the next 3 years, our 50% of revenue will be from the railway works, which is 40,000; and 50% of our revenue will be from our bidding works, whether from Vande Bharat or from BharatNet, from highways and other railway sector.”

— Saleem Ahmad, Chairman and Managing Director

RVNL’s order book is diversified, with railways forming 45%, roads 10%, and the electrical sector (RDSS, transmission, railway electrification) 15%.

“Railway orders comprises of around 45% of our total orders. Then road sector, we have got around 10% of our total orders. Electrical sector, where we have got a diverse mix of orders from basically RDSS, which are basically revamped distribution support system in 4 states and transmission line and railway electrification works, they comprise of around 15%.”

— Chandan Verma, Chief Financial Officer

Signalling and telecom, including BharatNet, accounts for 15% of the order book, mechanical sector (Vande Bharat) 7%, and international projects contribute INR3,500 crores.

“And signalling and telecom work, which includes railway telecom works, signalling works as well as the BharatNet projects, they comprise of around 15% of our order book. And around 7% order book is from our mechanical sector, which includes our share in Vande Bharat and some of the workshop projects. And besides that, we have got an order book of around INR3,500 crores from international projects.”

— Chandan Verma, Chief Financial Officer

Suzlon Energy Limited | Large Cap | Engineering & Capital Goods

Suzlon Energy is a leading Indian renewable energy solutions provider specializing in the manufacturing and maintenance of wind turbine generators. The company operates a vertically integrated business model that spans the entire wind energy value chain, including forging and foundry services.

[Concall]

The Indian wind industry is on a clear trajectory to exceed 10 GW in the next two years and reach 100 GW by 2030, supported by existing installations and a robust pipeline.

“Industry is well positioned to move to higher installation year - after - year with a clear trajectory to surpass 10 gigawatt over the next 2 years. With 54 gigawatt already installed and a strong pipeline with STU and PSU bids as well as C&I demand, India is set to achieve the near - term target of 100 gigawatt by 2030.”

— Rahul Jain, Group Chief Financial Officer

The company is positioning itself to capture a significant share of the global wind turbine market as India becomes a manufacturing hub. Investors should look for increased export revenues as the company leverages its domestic cost advantages globally.

“India is emerging as a credible supplier for nearly 10% of global wind demand. Suzlon is also focusing for strong export-driven volume growth powered by competitive Make in India manufacturing base and our long-standing global operating experience.”

— Rahul Jain, Group Chief Financial Officer

The company is creating a dedicated development vertical to identify and secure wind sites years in advance. This proactive approach aims to solve land acquisition issues early and secure long-term contracts with major corporate clients.

“This business unit would concentrate on two things. So because the first thing it identifies which are the potential sites over the next 5 years based on the wind data what we have... And we start acting on that. And that is where we will have more strategic sales with the large customers.”

— J.P. Chalasani, Group Chief Executive Officer

There is substantial demand for wind energy from private commercial and industrial customers outside of the government auction process. This diversified pipeline reduces the company’s reliance on competitive state-run bidding cycles.

“The order pipeline is strong... as we speak today, we are now clearly talking about three to four gigawatts non bidding route of discussions are happening.”

— J.P. Chalasani, Group Chief Executive Officer

Execution remains a challenge for Suzlon and the sector, primarily due to limited control over land and Balance of Plant (BOP) in the 80% of projects that are non-EPC.

“Execution obviously remains a challenge for us as well as sector, in fact maybe for us more because of the numbers because others numbers we don’t know fully... The reason why the execution is getting delayed is the first of all th is is until now it is 80 - 20. 20 is EPC and 80 is non - EPC. So we have a limited control on land and BOP in those projects. So that’s one reason.”

— J.P. Chalasani, Group Chief Executive Officer

The Indian government has established a specialized task force to address the regulatory and land issues hampering wind power projects. If successful, this intervention could significantly speed up project commissioning timelines for the entire sector.

“They formally announced a task force by MNRE... basically to resolve issues with respect to land and ROW and the connectivity. So, therefore, it is now picking up the importance of it.”

— J.P. Chalasani, Group Chief Executive Officer

The company is using digital tools and AI to improve the performance and maintenance of its installed turbine fleet. Higher machine availability improves customer satisfaction and protects the high-margin service revenue stream.

“My entire OMS system is going to get digitized. So therefore the our predictive maintenance, preventive maintenance and everything can be tracked... it actually improves our up-time because of this data.”

— J.P. Chalasani, Group Chief Executive Officer

While Suzlon’s 5 MW turbine is in prototype, the company is successfully selling 3.15 MW units and has introduced a 3.3 MW turbine offering a lower cost per kilowatt-hour.

“Our 5 megawatt turbine is now getting into the proto stage and that will come at appropriate time. But the thing let me tell you is that the in spite of the fact there is a 5 megawatt turbine launched, our 3.15 megawatt is going significantly. And now we have also introduced started selling 3.3 megawatt with the revised power curve which has a lower cost per kilowatt hour compared to 3.15.”

— J.P. Chalasani, Group Chief Executive Officer

Auto

CEAT Limited | Small Cap | Auto Ancillary

CEAT Limited, a leading tyre brand in India and part of RPG GROUP, specializes in manufacturing automotive tyres, tubes, and flaps. With a focus on innovation, the company offers durable products that ensure safety with a secure grip on the road. CEAT is expanding its distribution, introducing new products, and strengthening its brand presence across social media platforms.

[Interview]

Capex remains disciplined and aligned with cash flows, with ~₹1,000 crore planned for the current year while maintaining leverage ratios.

“We manage capex year to year based on cash flows. We cannot abandon capex completely because that will compromise growth in the future. For the current year, capex will be around ₹1,000 crore, and we will stay within our guidance so that leverage ratios are maintained.”
— Arnab Banerjee, Chief Executive Officer

Capacity utilization is running high at 80–90%, with ongoing capex expected to support growth into FY28–29.

“Capacity utilization is 80% plus, and in some cases it goes up to 85–90%. The capex we are about to incur will give us the required capacity in FY28 and FY29.”
— Arnab Banerjee, Chief Executive Officer

Q4 remains largely unaffected by geopolitical tensions, but Q1 will see impact across freight, currency, and raw materials.

“Quarter four is almost done, and most raw materials were bought prior to the conflict, so we may not see much impact. Quarter one will have impact from higher freight rates, rupee depreciation, and escalation in crude-based derivatives.”
— Arnab Banerjee, Chief Executive Officer

Raw material costs are expected to rise sharply, with inflation of around 10%+ into May.

“The price escalation in raw materials could be around 10% plus going into May, which is a significant escalation.”
— Arnab Banerjee, Chief Executive Officer

Supply disruptions and elevated prices are both key risks, even if the conflict ends.

“There will be availability issues as well as price escalation. Even if the war ends, supply chains will take time to normalize and prices will remain high for some time.”
— Arnab Banerjee, Chief Executive Officer

Impact of disruptions could extend into early Q2, with H1FY27 bearing the brunt.

“It could spill over into the early part of the second quarter, which means the first half of FY27 is going to bear the brunt.”
— Arnab Banerjee, Chief Executive Officer

Growth expectations are being tempered, with double-digit growth now seen as a reasonable outcome vs earlier 15–20% guidance.

“15–20% growth for FY27 looks ambitious in the current situation. If we manage double-digit growth, it will be a good outcome assuming the war stops.”
— Arnab Banerjee, Chief Executive Officer

Price hikes are being implemented in replacement, with lagged pass-through impacting margins.

“We have already announced about 3% price hikes in replacement, and there will be further hikes. There is always a lag effect, which impacts margins.”
— Arnab Banerjee, Chief Executive Officer

OEM pricing remains indexed to raw materials, with partial pass-through and quarterly adjustments.

“In OEM, pricing is indexed to raw materials and revised quarterly. By and large, the pass-through happens, though not 100%.”
— Arnab Banerjee, Chief Executive Officer

Demand remains structurally strong but could moderate if sentiment weakens due to price increases.

“Underlying demand was absolutely strong, but if sentiment changes, customers may defer purchases, leading to moderation in demand.”
— Arnab Banerjee, Chief Executive Officer

TVS Motor Company Limited | Large Cap | Auto

TVS Motor is a leading global manufacturer of two and three-wheelers with a significant presence in India and international markets. The company produces a diverse portfolio ranging from entry-level commuter bikes to premium motorcycles and electric vehicles.

[Concall]

TVS is expanding its reach into the high-end luxury motorcycle market through the Norton brand. Success in this premium segment can improve the overall brand perception and lead to much higher profit margins.

“The new Max and Atlas families position the TVS ecosystem firmly in the premium and high-emotion luxury motorcycle segment. It is going to create a special super-premium experience for affluent global customers.”

— K.N. Radhakrishnan, Director and Chief Executive Officer

The transition to electric vehicles is accelerating, particularly in the three-wheeler segment where nearly a third of sales are now electric. This shift demonstrates the company’s successful adaptation to new technology and changing market demands.

“While EV penetration is slightly lower now, it will improve. Overall, EV penetration in two-wheelers and three-wheelers will increase; three-wheelers have already reached 30-32% this quarter.”

— K.N. Radhakrishnan, Director and Chief Executive Officer

International sales are rebounding, driven by recovery in key African and Asian markets. Strong export performance helps the company diversify its revenue sources and reduce dependence on the Indian domestic market.

“Exports from India grew by 23%, and demand in Africa continue to grow sequentially. Sri Lanka coming back in a big way and Nepal continuing to do well.”

— K.N. Radhakrishnan, Director and Chief Executive Officer

Customer demand is shifting toward more expensive and feature-rich motorcycles rather than basic models. This trend of premiumization is beneficial for the company as higher-end products typically carry better profit margins.

“Premium and super-premium segments are also growing faster, as is the executive motorcycle category. The entry-level segment is not growing as much.”

— K.N. Radhakrishnan, Director and Chief Executive Officer

Supply chain issues that restricted electric vehicle production are now being resolved. Investors can expect higher EV delivery volumes in the coming months as the company catches up with demand.

“Regarding EVs, we had a setback due to magnet availability, but that is recovering. By next month, we should have full EV supplies in the market.”

— K.N. Radhakrishnan, Director and Chief Executive Officer

Uno Minda Limited | Large Cap | Auto Ancillary

Uno Minda is a leading global supplier of proprietary automotive solutions and systems to original equipment manufacturers. The company specializes in safety, lighting, and switching systems for both two-wheeler and four-wheeler vehicle segments.

[Concall]

Recent trade developments between India and the U.S. significantly reduce export costs for Indian manufacturers. This policy shift makes Indian auto components more competitive in the American market and supports long-term growth for exporters.

“The proposed reduction in reciprocal tariffs from 50% to 18% announced on 2nd February is a positive step for export-oriented manufacturing. Lower tariff barriers are expected to improve the competitiveness of Indian suppliers.”

— Sunil Bohra, Group Chief Financial Officer

The conclusion of the India-EU Free Trade Agreement is expected to eliminate tariffs on auto components exported to Europe. This provides a major structural advantage for Indian companies to integrate into global supply chains at a lower cost.

“With the new FTA framework, tariffs are expected to revert to 0%, restoring competitiveness for Indian exporters. Overall, while the agreement increases openness in certain vehicle categories, we believe the net outcome for Indian auto and auto component players will be positive.”

— Sunil Bohra, Group Chief Financial Officer

The company is gaining market share by winning contracts with manufacturers where they previously had a smaller presence. This diversification reduces reliance on any single customer and expands their total addressable market.

“The 2-wheeler switch business continued to strive to increase its domestic market share, supported by new order wins from OEMs where our historical share of business had been relatively lower.”

— Sunil Bohra, Group Chief Financial Officer

Vehicle manufacturers are rapidly switching from traditional bulbs to more expensive LED lighting systems. This transition allows Uno Minda to sell higher-value products for every vehicle produced, boosting revenue even if car sales volumes stay flat.

“A key structural lever driver remains the industry-wide transition towards LED-based lighting, coupled with rising consumer preference for advanced design-led and aesthetically differentiated lighting solutions. These trends have contributed to a meaningful increase in kit value per vehicle.”

— Sunil Bohra, Group Chief Financial Officer

The company is investing over 700 crore rupees to build a large new plant for manufacturing alloy wheels. This massive investment highlights management’s confidence in the long-term demand for premium vehicle parts.

“The Board has approved the setting up of greenfield 4-wheel alloy wheel manufacturing facility with a capacity of 1.8 million wheels per annum. The project entails fresh capital expenditure of INR 764 crores to be deployed in a phased manner over the next 3 years to 4 years.”

— Sunil Bohra, Group Chief Financial Officer

New safety regulations will soon require all electric vehicles to emit artificial sounds to protect pedestrians. Because the company has already developed this technology, they are ready to capture this entirely new mandatory market.

“The Ministry of Road Transport and Highways has notified mandatory implementation of acoustic vehicle alerting systems called as AVAS for electric vehicles. Uno Minda has been investing in AVAS technology development over the past several years and is now well positioned to capitalize on this regulatory shift.”

— Sunil Bohra, Group Chief Financial Officer

Management has found a way to make sensors without relying on expensive and hard-to-find rare earth magnets. This switch makes their supply chain more stable and protects profit margins from volatile raw material prices.

“As part of our supply chain resilience and localization efforts, we have successfully developed alternatives to rare earth magnets and have commenced supplies of sensors using some of locally sourced magnets to our customers.”

— Sunil Bohra, Group Chief Financial Officer

The company is proactively building capacity to replace imported car wheels with locally made versions. Investors should watch this as a sign of the company’s aggressive strategy to win business from foreign competitors.

“We are also targeting some of the players who might be currently importing the wheels into the country and the discussions have so far been encouraging and motivating. It was like whether you wait for all the customers to get business and then start construction or you take a call.”

— Sunil Bohra, Group Chief Financial Officer

Hyundai Motor India Limited | Large Cap | Auto

Hyundai Motor India Limited is the Indian subsidiary of the South Korean automotive giant and serves as the country’s second-largest passenger vehicle manufacturer. The company operates high-capacity production facilities in Chennai and Pune, catering to both domestic demand and international export markets.

[Concall]

Government policies in 2025, including income tax cuts, GST 2.0 reforms, and interest rate reductions, significantly boosted consumer demand and optimism in the Indian auto industry.

“Reflecting on calendar year 2025, the Indian automobile industry benefited from a series of supportive policy measures by the Indian government that strengthened consumer demand sentiments. 2025 started with the government announcing income tax cuts, which acted as a direct catalyst for discretionary consumption. Further, the implementation of GST 2.0 reforms brought greater clarity and stability to the indirect tax framework. This, coupled with interest rate cuts, significantly improved consumer buying sentiments and brought in a renewed wave of optimism.”

— Tarun Garg, Managing Director and Chief Executive Officer

The company is successfully expanding its footprint in rural India, which now accounts for nearly a quarter of its total domestic sales. This diversification reduces reliance on urban centers and taps into a resilient source of consumer demand.

“Rural markets continued to be a key growth driver for us. With sustained focus and targeted initiatives, we achieved our highest ever quarterly rural contribution to domestic sales, exceeding 24%.”

— Tarun Garg, Managing Director and CEO

The company is realizing higher revenue per vehicle through a combination of strategic price hikes and a shift toward premium models. Higher average selling prices contribute directly to protecting profit margins against inflationary pressures.

“Our blended ASP this quarter improved by 5% year-on-year, reflecting our strong sales mix and prudent pricing strategy. Notably, the improvement in ASP was seen both in domestic and exports with a growth of 4% and 8% respectively.”

— Tarun Garg, Managing Director and CEO

Alternate fuel options like CNG are becoming a significant part of the product mix as consumers look for cost-efficient mobility. Maintaining a diverse fuel portfolio allows the company to capture demand across different price points and geographic preferences.

“CNG continued to see strong traction, contributing 16% to domestic volumes, while diesel penetration was at 21% during the quarter.”

— K S Hariharan, Head of Investor Relations

New product launches like the Venue initially carry lower margins due to introductory pricing strategies. Profitability for these models is expected to trend upward as the company moves past the launch phase and increases component localization.

“At the same time, when a model is launched, it is typically launched at the lowest level of profit and then improves as we have headroom to increase prices and localization happens. This was the first quarter of the Venue launch and an introductory price was in place.”

— Tarun Garg, Managing Director and CEO

Increasing the percentage of locally sourced parts is a key pillar of the company’s strategy to reduce costs and mitigate supply chain risks. High localization levels improve competitive pricing and insulate the company from global currency fluctuations.

“Our localization level is already at 84% compared to 82% last year. We are continuously working on localizing high-technology parts. We feel we can manage the supply chain without hindrance.”

— Tarun Garg, Managing Director and CEO

The company’s product mix is shifting toward SUVs, which typically command higher margins and better consumer demand. The aggressive plan to launch 26 new models or facelifts ensures the portfolio remains fresh and competitive.

“Overall SUV contribution went from 54% to 56.2%. We are well on our way to meeting the numbers we promised at Investor Day across 26 models and facelifts.”

— Tarun Garg, Managing Director and CEO

Retail

Swiggy Limited | Large Cap | E-commerce & Food Delivery

Swiggy is a leading Indian consumer internet platform operating a hyperlocal marketplace for food delivery and quick commerce services. The company connects millions of consumers with restaurants and grocery stores through an extensive dark store and delivery partner network.

[Concall]

Increasing the volume of orders per store allows the company to use its existing infrastructure more efficiently. This scale also gives the company better bargaining power to earn more revenue from brand partnerships.

“The scale of operation, which effectively is measured in either Gross Order Value (GOV) per store or the number of orders per store, will have an impact on better utilization of our infrastructure... Regarding the movement for all the items that we sell, there is a bigger opportunity for monetization with the brands.”

— Amitesh Jha, CEO, Instamart

The company has significantly expanded its warehouse footprint to bring products closer to customers and lower transport costs. Investors should expect continued spending in this area to further streamline the delivery network.

“Over the last four quarters, we have more than doubled our warehousing capacity, which has been a key component of CAPEX. We expect a little more spending on CAPEX, especially on the warehousing space, to structurally improve our supply chain efficiencies.”

— Rahul Bothra, CFO

Swiggy is refusing to spend money on acquiring customers who only stay on the platform because of heavy discounts. This shift prioritizes long-term profitability over temporary, expensive increases in order volume.

“One thing we have taken as a very clear output is that we are not going to throw good money at bad growth. We are fully committed to that. We will never compromise good growth for margin, but we may compromise bad growth as it is not a sustainable advantage.”

— Amitesh Jha, CEO, Instamart

The MaxSaver initiative, which encourages users to build larger grocery baskets, is successfully improving profits per order. High customer retention for this program proves that users are willing to plan their purchases on the platform.

“We reiterate our commitment to MaxSaver because it increases profitability in terms of revenue per order... The retention of MaxSaver customers is actually similar to or higher than what we see for non-MaxSaver customers.”

— Amitesh Jha, CEO, Instamart

Long-term users are ordering more frequently, which provides a stable foundation for the business. Management is avoiding ultra-low-cost orders because they do not contribute to building a healthy, profitable platform.

“Our mature cohorts are growing faster, showing customers are becoming more sticky. We believe such interventions will always be required, and that is why we want flexibility in how we spend. However, vanity metrics based on 99-rupee orders are not conducive to how we are building our platform.”

— Amitesh Jha, CEO, Instamart

Sales of items like electronics and home goods now make up nearly a third of the quick commerce business. Management expects this mix to stabilize, focusing now on making these categories more profitable.

“We also believe non-grocery has now crossed 30%, and we do not see significant headroom for that to expand at the same pace. Monetization initiatives will mean the ratio starts converging on the higher side.”

— Management, Executive Team

The company aims to significantly increase the number of orders processed by each existing dark store. This strategy focuses on getting more out of their current locations rather than just building new ones.

“Getting a 25-30% increase in throughput per store is a near-term target. Our store strategy and network are well laid out for densification. We have the right consumer input in place without needing significantly more stores apart from densification.”

— Management, Executive Team

Currently, 30% of the company’s local delivery areas are profitable, and they need to reach 50% to break even as a whole. They are working to increase this by finding more ways to earn money from each order and location.

“More than half of our business in terms of polygons will have to be positive for break-even to happen. Today that number is closer to 30%. As we add monetization and improve the Contribution Margin journey, more stores and polygons will become positive.”

— Management, Executive Team

Varun Beverages Limited | Large Cap | FMCG

Varun Beverages is one of the largest franchisees of PepsiCo globally, manufacturing and distributing a wide range of carbonated and non-carbonated drinks. The company operates across India and several international markets including Sri Lanka, Nepal, Morocco, Zambia, Zimbabwe, and South Africa.

[Concall]

More than half of the company’s total beverage volume now consists of healthier, low-sugar or no-sugar options. This transition reduces regulatory risks and aligns the product portfolio with growing consumer demand for health-conscious drinks.

“In CY 2025, the mix of low sugar and no sugar products increased to the level of ~59% of consolidated volumes, reflecting our continuous focus on healthier beverage offerings.”

— Raj Gandhi, President and Whole-Time Director

The company expects its international snacks business to eventually generate 100 million dollars in revenue. Diversifying into snacks provides a significant new growth engine that complements its existing beverage distribution network.

“We think this is going to go close to a $100 million business, and this is not an unforeseen number that can happen with two of these three territories [snacks in Morocco, Zimbabwe and Zambia].”

— Ravi Jaipuria, Chairman

The company is expanding its successful Nimbooz brand into new traditional flavors like Jeera. Leveraging established brands for new product launches reduces marketing risks and taps into existing consumer loyalty.

“About March, we will be launching our Nimbooz Jeera range... Nimbooz which is growing very fast for us and is doing phenomenally well, we are planning to launch more flavors and price points in that.”

— Varun Jaipuria, Executive Vice Chairman and Whole-Time Director

The company is making its first move into the alcoholic beverage space through a partnership with Carlsberg in African markets. This entry expands the company’s total addressable market while utilizing its existing distribution expertise.

“We are starting with Carlsberg in Africa, the capital allocation will not be so large. We will be starting to set-up one plant this year.”

— Ravi Jaipuria, Chairman

The acquisition of Twizza in South Africa is expected to increase overall profit margins by saving on transportation costs. By producing closer to customers, the company can improve logistics efficiency and increase supply chain speed.

“Twizza... will be margin accretive for BevCo, capacity accretive and freight reducing because we will be nearer the market. Instead of 5, we will be reaching the market from 8 different locations.”

— Raj Gandhi, President and Whole-Time Director

Voltas Limited | Large Cap | Consumer Electronics

Voltas Limited is India’s leading air conditioning company and a major provider of electromechanical projects and engineering services. A part of the Tata Group, it operates across cooling products, home appliances through a joint venture, and large-scale infrastructure projects.

[Concall]

Sales growth was largely fueled by tax reductions and customers buying early to avoid expected price hikes from new energy efficiency rules. This indicates that current demand might be partly pulled forward from future quarters.

“Through this quarter, the company’s performance was anchored by the room air conditioning business, driven by healthier channel activity following the GST rate cut and buying ahead of the BEE star label transition.”

— Management, Executive Team

Management has prepared new product models and pricing to meet upcoming mandatory energy efficiency standards. Having production ready across multiple factories ensures they can meet the high demand expected during the summer.

“The company is fully ready and realigned for the new BEE efficiency table with refreshed lineups and calibrated pricing architecture in place and is geared to meet seasonal demand with aligned production plans across Pantnagar and the new Chennai factory.”

— Management, Executive Team

Management expects higher costs from raw materials and currency shifts but is being cautious about when to raise prices for consumers. This suggests there might be a temporary squeeze on profits before price hikes take effect.

“We will maintain a balanced approach regarding pricing. Will commodity and currency fluctuations have an impact? Definitely, yes. However, the exact quantum and timing of passing this on is a dynamic decision.”

— Management, Executive Team

Dealers currently hold about a month and a half of stock, which management expects to sell off as summer begins. Low inventory levels in the future would allow the company to sell more of its newer, higher-priced models.

“Regarding channel inventory, we believe there is approximately 5-6 weeks of inventory. It is just a matter of time. By mid-March, we expect that inventory to be cleared as the summer season picks up.”

— Management, Executive Team

New energy norms are making the production of high-end five-star air conditioners much more expensive. This cost pressure will likely force a significant price hike for premium products in the coming months.

“The table change impact is different for the three-star and five-star models. Three-star is lesser, but the five-star increase is significant. The overall number will be a summation of the table change, copper, and currency impacts.”

— Management, Executive Team

The company has until mid-year to sell off its existing inventory that follows older energy standards. Clearing this stock is a priority before they can fully transition to selling more profitable new-norm products.

“The rules allow brands and channel partners to sell old table products until the end of June. Like our competitors, we have stocks of old table products. Our focus is to liquidate the old table stock first.”

— Management, Executive Team

International

Saudi Aramco | Energy

Saudi Aramco, officially the Saudi Arabian Oil Company, is the world’s largest oil-producing company and a top-ranked global corporation by revenue, headquartered in Dhahran. It manages over 270 billion barrels of crude oil reserves and operates extensive upstream, downstream, and petrochemical businesses globally.

[Transcript]

Aramco swiftly ramped up the East-West Pipeline to reroute exports, targeting full utilization within days.

“We ramped up production through the East-West Pipeline, which has a capacity up to 7 million barrels a day, most of it for export… We should be reaching capacity in a couple of days. It’s all building on the repositioning of tankers from the east to west.”

— Amin Nasser, President and Chief Executive Officer

Pipeline utilization is constrained by tanker availability, but flows are already more than double initial levels.

“We are on more than double what we started with… within a couple of days, we should be reaching the capacity on the East-West Pipeline, pending availability of vessels which are currently en route.”

— Amin Nasser, President and Chief Executive Officer

Global storage network across Asia and Europe is being actively leveraged to maintain export continuity.

“We monitor closely the storage facilities available in the Kingdom and out of the Kingdom. We have different storage facilities in Japan, in Korea, in the Netherlands, in Rotterdam… We are capitalizing on these to balance our exports and meet our customers’ requirements.”

— Amin Nasser, President and Chief Executive Officer

Aramco is coordinating with customers while remaining supportive of geopolitical measures to ensure supply flows.

“Majority of our exports are sold on freight-on-board basis… we are working very closely with our customers and partners to minimize the impact of disruption… Of course, we will support any actions or measures that will help to deliver our products to the global market.

— Amin Nasser, President and Chief Executive Officer

LNG strategy is scaling through partnerships, targeting meaningful volumes by 2030.

“We have positioned different projects with a cumulative potential offtake of up to 3.2 million tons by 2030… including the acquisition of stakes in LNG projects and a 20-year sales and purchase agreement with NextDecade for 1.2 million tons.”

— Amin Nasser, President and Chief Executive Officer

Capex discipline remains intact, with spending at the lower end of guidance driven by timing rather than project cuts.

“We did indeed come at the low end of the range… this is a demonstration of our capital discipline and flexibility. The low end is not because of impact on projects… we are on track to deliver our major investment program.”

— Amin Nasser, President and Chief Executive Officer

Production can be ramped back quickly due to operational flexibility and spare capacity.

“We can ramp up in days, not weeks… we have ample spare capacity… even wells that are shut down can be brought back in days to the market.”

— Amin Nasser, President and Chief Executive Officer

A prolonged Strait of Hormuz disruption could remove a significant portion of global supply.

“We’re talking about almost 20% of the global supply… 17–18 million barrels per day coming through the Strait of Hormuz… even with our ability to export through the western region, you’re talking about close to 350 million barrels of disruptions.”

— Amin Nasser, President and Chief Executive Officer

West Coast refineries remain fully operational and are critical for both domestic and export markets.

“We do have a significant number of refineries on the West Coast. These were not impacted whatsoever… they provide products for local and export markets.”

— Amin Nasser, President and Chief Executive Officer

Eastern refineries are being optimized for domestic supply due to export constraints via Hormuz.

“We are sizing the capacity of each refinery in the eastern part of the kingdom based on meeting kingdom demand… we cannot export at this stage through the Strait of Hormuz.”

— Amin Nasser, President and Chief Executive Officer

Infrastructure investments like the East-West Pipeline were built precisely for contingency scenarios.

“We built the East-West Pipeline with contingency in mind… it gives us another exit for our crude through the Red Sea.”

— Amin Nasser, President and Chief Executive Officer

Local supply chain strength (iktva) significantly enhances operational resilience.

“70% of what we use in terms of procurement comes from within the Kingdom… that enabled the establishment of 350 new local manufacturing facilities.”

— Amin Nasser, President and Chief Executive Officer

Aramco’s crisis readiness and contingency planning are unmatched globally.

“Our readiness in terms of equipment… and contingency planning is no match anywhere in the world… we have demonstrated this through various crises.”

— Amin Nasser, President and Chief Executive Officer

Global storage and inventory provide an additional buffer to maintain supply during disruptions.

“We have storage facilities in Asia, Japan, South Korea, Spain, and Europe… that gives us flexibility and inventory to ensure we continue supplying energy during this crisis.”

— Amin Nasser, President and Chief Executive Officer

Projects remain on schedule despite geopolitical disruptions, supported by strong domestic sourcing.

“Projects for our major programs continue as normal… over 70% of our supply chain is from inside the Kingdom… we are on schedule for completion.”

— Amin Nasser, President and Chief Executive Officer

Even with inventory support, prolonged disruptions would materially impact global energy markets.

“That inventory cannot last for an extended period… if this persists for a long term, it will have a significant ramification on the global economy.”

— Amin Nasser, President and Chief Executive Officer

Jafurah gas project remains on track, with significant scale-up planned through the decade.

“Jafurah Phase One will ramp up to 650 billion cubic feet… Phase Two will allow us to reach a sustainable rate of 2 billion cubic feet per day by 2030… we are drilling more wells every year to reach that capacity.”

— Amin Nasser, President and Chief Executive Officer

That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!

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Quotes in this newsletter were curated by Meher, Vignesh & Kashish.

Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.

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In this edition, we have covered 16 companies across 10 industries.

Energy

• Power Grid Corporation

• Adani Total Gas

• Gujarat Gas Limited

• Hindustan Petroleum Corporation Limited

• JSW Energy Limited

Fertilizers

• Chambal Fertilisers and Chemicals

Engineering & Capital Goods

• Sanghvi Movers

Media & Entertainment

• Basilic Fly Studio

Auto Ancillary

• Escorts Kubota

• UNO Minda Ltd.

Healthcare

• Sun Pharmaceutical Industries

Cement

• JK Cement Ltd.

Steel

• JSW Steel

Retail

• Kalyan Jewellers

• Vishal Mega Mart Limited

Aviation

• Interglobe Aviation Ltd. (Indigo)

Energy

Power Grid Corporation | Large Cap | Energy

Power Grid Corporation Of India operates a transmission network for power distribution and has diversified into telecom services by utilizing its transmission infrastructure. The company also offers consultancy services in areas such as power transmission, sub transmission, and distribution management.

[Presentation]

POWERGRID has compounded its asset base at ~10% CAGR over the last decade, with ₹1 lakh crore+ capex translating into ₹90,000+ crore capitalization. This reflects strong execution conversion and disciplined capital deployment.

Near-term visibility remains robust with ₹1.48 lakh crore order book, while the long-term opportunity is massive. Even at a conservative win rate, this translates into a multi-lakh crore execution runway (~₹9 lakh crore).

India’s transmission build-out is entering a policy-driven, multi-decade expansion phase, driven by renewables integration and rising demand. The opportunity size is ₹8–15 trillion, backed by nationwide grid expansion and cross-border connectivity.

A clear capex ramp-up is underway (₹82,000 crore planned over FY27–28), which should translate into steady capitalization growth (~₹65,000 crore). This underpins earnings visibility given the regulated return model.

POWERGRID holds a system-critical position with unmatched scale in transmission, leadership in HVDC, and dominant inter-regional capacity. Its deep execution capability and high entry barriers create a durable moat that is difficult to replicate.

Transmission demand is being driven by long-term structural shifts—rising power demand, renewable expansion, and increasing grid complexity. This makes the capex cycle sustained and predictable rather than short-lived.

Adani Total Gas | Mid Cap | Energy

Adani Total Gas operates in the City Gas Distribution (CGD) sector, supplying natural gas to domestic, commercial, industrial, and vehicular users. The company is expanding its PNG network and promoting CNG as a cleaner fuel alternative. Additionally, it explores bio gas, bio fuel, EV, hydrogen, and other clean energy solutions to enhance sustainable energy access and reduce emissions across its operational areas.

[Presentation]

Adani Total Gas is positioning itself as more than just a city gas distributor—evolving into a diversified energy platform spanning core CGD, LNG, EV charging, and bio energy. While the core CGD business (34 licenses across 53 GAs) remains the backbone, the structure shows a clear push into adjacencies through JVs and new-age businesses, signalling a broader play on India’s energy transition rather than a pure gas utility story.

ATGL’s new energy bets are beginning to scale, with EV charging expanding to ~4,900 points across 226 cities and biomass seeing steady traction with rising CBG volumes and strong growth in FOM sales. The focus on B2B clients to improve utilization and early positive response to its bio-energy brand suggest these adjacencies are moving from pilot phase to meaningful contributors, supporting ATGL’s broader transition beyond traditional gas distribution.

Gujarat Gas Limited | Mid Cap | City Gas Distribution

Gujarat Gas is India’s largest city gas distribution player, operating a vast network across 44 districts in multiple states. The company provides natural gas to industrial, domestic, and commercial segments while maintaining a dominant and expanding CNG station footprint.

[Presentation]

Industrial dominance makes volumes a proxy for manufacturing cycles and fuel-switching economics. This exposure links margins directly to the price gap between gas and alternative fuels.

Expanding to 27 bio-gas agreements helps decouple supply from volatile global gas pricing and currency risks. This localization strategy protects unit margins while ensuring compliance with green energy mandates.

The 12 MW captive solar project reduces fixed utility costs for CNG stations and corporate offices. Generating power internally protects margins from rising grid tariffs as the retail network expands geographically.

Hindustan Petroleum Corporation Limited | Large Cap | Oil & Gas - Refining & Marketing

HPCL is a leading Indian Maharatna central public sector enterprise operating large-scale refineries and a massive fuel marketing network. The company maintains a significant share in domestic petroleum product sales and is actively diversifying into natural gas and renewable energy.

[Presentation]

HPCL’s 20.3% market share significantly outpaces its 13.87% refining capacity, creating a structural reliance on external product purchases. Expanding refining capacity is essential to internalizing margins and reducing exposure to volatile procurement costs.

Expansion into 25 city gas geographic areas and a 5 MMTPA LNG terminal signals a strategic shift toward a lower-carbon energy mix. This diversification builds stable utility-based revenue to buffer against cyclical refining and marketing volatility.

HPCL’s 302 granted patents and focus on indigenous catalysts signal a pivot toward technological self-reliance. Reducing dependence on foreign licenses helps lower operating costs and protect long-term refining margins.

Operating refineries at 105-115% utilization indicates that HPCL has reached its internal production ceiling. Future earnings growth is now highly sensitive to global price spreads rather than further volume gains.

Rapidly scaling CNG and EV charging stations ensures HPCL retains its retail dominance as consumer mobility patterns shift. This infrastructure pivot hedges against long-term demand risks for traditional petrol and diesel.

Increasing refining capacity to 45.3 MMTPA captures integrated margins by eliminating the need for expensive third-party fuel purchases. This self-sufficiency protects earnings from volatile global price spreads.

Scaling CNG and petrochemical capacity provides a strategic hedge against plateauing domestic demand for traditional fuels. This diversification secures growth in cleaner energy markets while reducing terminal value risk.

Expanding biofuel capacity to 300 TMT reflects a structural response to domestic blending mandates. Success in this segment is critical for protecting marketing margins as traditional fuel demand slows.

Commissioning refinery-based green hydrogen plants marks a shift from research to industrial-scale application. Developing this technology is vital for future-proofing refining assets against tightening environmental regulations.

Relying on biogas for nearly half of emission reductions indicates a strategy focused on scalable, proven technology. Investors must weigh this massive capital commitment against long-term regulatory survival.

JSW Energy Limited | Large Cap | Utilities - Power Generation

JSW Energy is a leading Indian power producer transitioning from a thermal-heavy base to a diversified green energy portfolio. The company operates across the power value chain, including generation, transmission, and now green hydrogen production.

[Presentation]

Liquidity risk has decreased as debtor days fell from 96 to 73, providing the cash flow stability required for heavy capital investments. Shifting toward higher-quality offtakers like SECI and group captives secures more predictable collection cycles.

Transitioning to a 14 GW renewable pipeline secures long-term yields and protects margins from spot-market price volatility. This strategic shift moves the portfolio away from fuel-sensitive assets toward stable, green infrastructure.

Targeting 40 GWh of energy storage creates a structural moat by addressing renewable intermittency and capturing premium peak-demand pricing. Dominance in pumped hydro assets provides a significant competitive advantage over standard solar or wind generators.

Doubling capacity through renewables secures long-term cash flows and hedges against future carbon-related regulatory costs. This expansion strategy locks in grid access before infrastructure bottlenecks limit new additions.

Renewables are actively displacing thermal generation, which has contracted to 73% of the total generation mix. Incremental demand is increasingly captured by green assets that benefit from lower variable costs.

Fertilizers

Chambal Fertilisers and Chemicals | Small Cap | Fertilizers

Chambal Fertilisers and Chemicals Limited is a major player in the production of Urea, fertilisers, and Agri-inputs. It serves farmers in multiple regions of India and holds a significant position as a fertilizer supplier in states like Rajasthan, Madhya Pradesh, Punjab, Uttar Pradesh, Bihar, Chhattisgarh, and Haryana.

[Presentation]

Fertiliser demand is structurally supported by food security focus, irrigation expansion, and shift toward balanced nutrition. Beyond urea, growth is increasingly coming from specialty nutrients, crop protection, and biologics, while TAN offers a high-margin industrial growth lever linked to infra and mining.

India is a large, policy-driven market (~$46bn → $63bn by 2030, ~6% CAGR) with stable demand but capped returns due to subsidy control. The real growth lies in non-urea, complex fertilisers and specialty inputs, supported by crop diversification and precision farming.

The sector has transitioned from cost-plus (RPS) to efficiency-linked regimes (NBS, DBT), improving transparency and discipline. However, earnings remain tightly linked to gas prices and subsidy payouts, with FY23–24 highlighting how global shocks can distort profitability.

India has very low agrochemical intensity (~0.6 kg/ha vs global 4–10 kg), creating significant headroom for growth. Premiumisation (biologicals, WSF, micronutrients) and export competitiveness position this segment as the key margin expansion lever.

TAN demand is driven by mining, infrastructure and explosives, with a persistent domestic supply deficit. Capacity additions may reduce imports, but structurally this remains a tight, high-margin segment with strong volume visibility.

Subsidy receivables remain a core working capital swing factor, with improving trends but still elevated levels. While payouts are stabilising, cash flow visibility in fertilisers continues to be policy-dependent rather than purely operational.

Engineering & Capital Goods

Sanghvi Movers | Small Cap | Engineering & Capital Goods

Sanghvi Movers Limited (SML) is the largest crane rental company in India. SML is a BS OHSAS 18001:2007 certified company. It is committed to being a top globally-ranked company in its core business with exceptional business ethics and morals.

[Presentation]

The company is transitioning from a domestic, asset-heavy crane business to a global, hybrid platform. The shift toward value-added services, diversified offerings, and professional management signals a move from cyclical execution to scalable, structured growth.

Key risks remain around margin compression, leverage, and execution volatility, but the model is evolving toward asset-light structures, differentiated offerings, and better project visibility. Importantly, cash flow risk is mitigated through financially closed projects and institutional counterparties.

Strong positioning in high-value, critical lifts (~30–40% share) where execution complexity creates entry barriers. With India’s O&G capex cycle picking up, this segment offers high-ticket, margin-accretive opportunities.

Core infra (metros, bridges, ports) and marine projects provide steady, visibility-led demand (~20–25% share). Government capex and mega projects (Sagarmala, defence infra) create a long runway for crane deployment.

Well entrenched in large industrial capex cycles, with meaningful share across steel and cement projects. These sectors provide bulk, repeatable execution opportunities, though relatively more cyclical than infra.

Strong execution track record in complex, critical-path projects (40–55% share) including refineries and thermal power. These projects drive high utilisation and premium pricing due to technical complexity.

Leadership in wind (~50–60% share) and strong presence in nuclear reflects positioning in next-gen energy infrastructure. This is a key strategic pivot toward long-term, structurally growing segments.

Media & Entertainment

Basilic Fly Studio | Micro Cap | Media & Entertainment

Basilic Fly Studio Limited, a visual effects (VFX) studio based in Chennai, India, delivers high-quality VFX solutions for movies, TV, net series, and commercials. With subsidiaries in Canada and the UK, the company specializes in creating captivating visual experiences for global audiences, showcasing a decade of expertise in the industry since its establishment in 2012.

[Presentation]

A services-led VFX company focused on execution for films, OTT, and commercials, with an asset-light and scalable model. Revenue is largely international, with creative work handled overseas and execution delivered from India.

AI significantly compresses timelines, lowers costs, and enables faster creative iteration. This strengthens client relationships by improving efficiency, consistency, and positioning the company as a long-term strategic partner.

Strong tax incentives across the UK, France, and India are making global VFX production more attractive and cost-efficient. These policies are driving higher project inflows and strengthening multi-country production ecosystems.

India’s VFX industry is poised for strong growth, supported by talent, cost advantage, and policy support, with ~13% CAGR expected through 2027. After a temporary dip in 2024, demand is recovering on the back of global content revival.

Global VFX demand is expanding rapidly, driven by OTT spending, gaming, real-time production, and immersive technologies. The market is expected to grow at ~12% CAGR, supported by rising content complexity and tech adoption.

The company has contributed to globally recognized, award-winning projects and major productions. This establishes strong credibility and positions it as a trusted execution partner for high-end VFX work.

Auto Ancillary

Escorts Kubota | Mid Cap | Auto Ancillary

Escorts Kubota Limited, formerly Escorts Limited, is a leading engineering company in India specializing in farming and construction equipment.Their diverse product range includes agricultural tractors, engines, earth moving equipment, railway components, automobile parts, and more.

[Presentation]

Industry demand remains weak YoY, though sequential recovery is visible in Q3. EKL volumes mirror this trend—sharp QoQ rebound but still lower on a YoY basis, indicating a gradual recovery phase.

Domestic tractor industry saw strong growth (~20%+), while EKL grew at a slower pace, leading to market share moderation. Exports, however, were a key positive with strong double-digit growth for EKL.

Industry growth remained robust both YoY and QoQ, supported by rural demand. EKL delivered steady growth but lagged industry in domestic volumes, while exports continued to outperform strongly.

EKL underperformed the industry in domestic tractors but significantly outperformed in exports. Construction equipment segments remained weak overall, though declines were broadly in line with industry trends.

UNO Minda Ltd. | Mid Cap | Auto Ancillary

Uno Minda specializes in producing and trading auto components like lighting, alloy wheels, horns, seating systems, seatbelts, switches, sensors, controllers, handle bar assemblies, and wheel covers. It serves markets in two-wheelers, three-wheelers, and four-wheelers both domestically and internationally, offering a wide range of automotive solutions.

[Presentation]

Multiple tailwinds are aligning for the auto sector—GST cuts and strong growth in PV/2W and CV segments are driving demand, while policy support through Budget 2026, PLI incentives, and localization pushes is strengthening the manufacturing ecosystem. At the same time, trade agreements with the EU and US are opening up export opportunities, even as regulatory changes like the new labour code aim to streamline operations, collectively creating a more supportive environment for sustained industry growth.

Uno Minda’s content per vehicle continues to rise across segments, with kit values steadily increasing in both 2Ws and 4Ws, especially in premium motorcycles and SUVs. This reflects a clear shift towards premiumization and higher feature intensity, allowing the company to capture more value per vehicle even without relying on EV-specific components.

Uno Minda’s portfolio is largely powertrain-agnostic (>95%), meaning most of its products remain relevant across ICE, hybrid, and EV platforms—reducing disruption risk from the EV transition. This positions the company to ride the shift to electrification without needing a complete portfolio overhaul, while still benefiting from incremental EV-specific opportunities.

Healthcare

Sun Pharmaceutical Industries | Large Cap | Healthcare

Sun Pharmaceutical Industries Limited is a leading specialty generic pharmaceutical company in India, known for delivering high-quality products at affordable prices. With a diverse portfolio covering a wide range of therapies, the company manufactures and markets various formulations, including generics, branded generics, specialty products, OTC medications, ARVs, APIs, and intermediates

[Presentation]

Innovative medicines are a key growth driver, with strong double-digit growth (~23% CAGR since FY20) and rising contribution to overall sales. The US remains the primary market, with Ilumya leading the portfolio and a healthy pipeline supporting future growth.

US revenues have grown steadily from ₹101 bn to ₹162 bn over FY21–FY25, reflecting strong execution in specialty and innovative products. This remains the company’s most important and consistent growth engine.

India revenues have shown consistent growth, supported by a diversified therapy mix and strong presence across chronic segments. Sun Pharma maintains leadership with ~8.4% market share, underpinned by broad therapeutic coverage.

Sun Pharma leads the Indian pharma market with a clear gap over peers, driven by scale, strong domestic formulations business, and wide portfolio reach. Its leadership position reinforces pricing power and distribution strength.

R&D spend has steadily increased to over ₹32 bn, maintaining ~6% of sales, indicating continued focus on innovation. A strong pipeline of filings, approvals, and patents supports long-term product launches and growth visibility.

Cement

JK Cement Ltd. | Mid Cap | Building Materials

JK Cement focuses on producing eco-friendly cement and allied products, aiming to reduce environmental impact while maintaining affordability and customer satisfaction. Their portfolio reflects a commitment to sustainability, responsible sourcing, and a greener future in the cement industry.

[Presentation]

JK Cement is seeing broad-based volume growth across both grey and white cement segments, with grey cement continuing to drive the bulk of volumes and growth (strong double-digit YoY), while the white cement business, though smaller, is also scaling steadily. This highlights a balanced portfolio where grey provides scale and demand-led growth, and white adds niche, higher-value expansion.

Pet coke prices—one of the key cost drivers for cement—have largely stabilised after earlier volatility, trending in a narrow range in recent months. This suggests cost pressures are easing, which should support margin recovery if pricing holds.

Steel

JSW Steel | Large Cap | Iron & Steel

JSW Steel is a leading Indian integrated steel manufacturer with a global presence and a wide range of value-added products. The company focuses on efficient production through large-scale plants and is aggressively pivoting toward green steel and renewable energy.

[Presentation]

The 2.5GW renewable energy investment signals a move to insulate steel production costs from volatile coal and grid pricing. This energy independence protects margins from inflation and supports high-value green steel exports.

Targeting 51.5 mtpa capacity by FY31 aims for domestic market dominance through aggressive scale. Integration with group infrastructure and energy assets creates a captive ecosystem that supports margin protection and cross-segment growth.

India crossing the 100kg per capita consumption threshold marks a structural pivot toward accelerated long-term domestic steel demand. This transition provides a durable volume growth runway that is less dependent on volatile global export markets.

Expanding into high-value electrical steel decouples revenue from volatile commodity cycles while tapping into the energy transition. This shift into specialty products builds a technical moat that supports superior profitability through various economic cycles.

The 50:50 joint venture for BPSL enables a ₹37,000 crore deleveraging while facilitating a capacity expansion to 10mtpa. This partnership leverages JFE’s capital and technology to drive growth without overextending the parent balance sheet.

Securing 1.6 billion tonnes of iron ore and coking coal assets in Australia and Mozambique insulates JSW from global raw material shocks. Vertical integration is the essential defense for protecting unit economics as production capacity doubles.

Scaling the influencer network to 111,000 partners allows for greater demand control at the fabricator and contractor level. This retail-centric approach improves pricing power and provides volume stability against cyclical institutional demand.

China’s sustained export surge continues to act as a structural ceiling on regional steel prices regardless of local demand. This forces a strategic reliance on volume growth and cost leadership to protect margins against volatile global spreads.

Retail

Kalyan Jewellers | Mid Cap | Retail

Kalyan Jewellers India Limited, one of the largest jewellery companies in India, started in 1993 and has since expanded across the country. They offer a wide range of jewellery products catering to special occasions like weddings, their highest-selling category, as well as daily wear. The company focuses on understanding customers’ preferences by utilizing local market expertise and region-specific marketing strategies.

[Presentation]

India’s jewellery market is still largely driven by wedding-led demand (~60%), with gold remaining deeply tied to cultural consumption, especially outside urban centres. What stands out is the disproportionate weight of rural India (~60% of demand) and the south commanding the largest regional share (~40%), highlighting how growth is anchored in non-metro, tradition-led markets rather than discretionary urban spending.

Kalyan is building a multi-brand, multi-product portfolio to cater to distinct customer segments—from wedding-focused collections (Muhurat) to aspirational (Mudhra, Rang), regional staples (Aishwaryam), and studded jewellery (Nimah, Tejasvi, Ziah, Hera). This segmentation allows it to target diverse price points and occasions, widening its addressable market while strengthening relevance across both premium and value-conscious customers.

Kalyan’s expansion is increasingly being driven by an asset-light FOCO model, allowing it to scale its showroom network rapidly (especially via Candere and new formats) while bringing down debt and improving return ratios. The shift is visible in rising ROCE/ROE and declining standalone debt, indicating that growth is becoming more capital-efficient rather than balance-sheet heavy.

Vishal Mega Mart Limited | Mid Cap | Retailing

Vishal Mega Mart is a value-focused hypermarket chain specializing in fashion, general merchandise, and FMCG products across India. The company leverages a high mix of private labels and a vast store network to target value-conscious consumers in Tier I, II, and III cities.

[Presentation]

Expanding hyperlocal delivery to 723 stores and a 55% surge in digital users signals a rapid omnichannel pivot. Using physical stores as fulfillment hubs counters quick-commerce threats while maintaining superior unit economics.

Aviation

Interglobe Aviation Ltd. (Indigo) | Large Cap | Aviation

InterGlobe Aviation is a company operating in the aviation industry in India, specializing in low-cost carrier (LCC) services. Their primary activities include air transportation for passengers and cargo, along with providing associated services such as in-flight sales, aircraft maintenance engineering, and advanced pilot training.

[Presentation]

A big chunk of IndiGo’s weak headline profitability this quarter comes from exceptional items (~₹15.5 bn)—largely one-off provisions and disruption-related costs. Strip these out, and profits jump sharply, showing that the core business is far stronger than reported numbers suggest.

That’s it for now! Your feedback will really help shape how Points and Figures evolves. Drop it down in the comments below!

Quotes in this newsletter were curated by Meher, Kashish & Vignesh.

Disclaimer: We’ve used AI tools in filtering and cleaning up the quotes from the images so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.

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Points and Figures is run by the same team that creates The Daily Brief and Aftermarket Report.

Welcome to the 51st edition of The Chatter — a weekly newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.

We’re always eager to improve—please share your ideas on how else we can innovate “The Chatter” format to better serve your needs.

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In this edition, we have covered 16 companies across 11 industries, along with an international features.

Financial Services

• HDFC Bank

Defence

• Bharat Electronics Limited

Software Services

• Tech Mahindra

• Persistent Systems Limited

Tyres

• Apollo Tyres Limited

Auto

• Maruti Suzuki India Limited

• Hero MotoCorp Limited

Engineering & Capital Goods

• Larsen & Toubro

• Indian Railway Finance Corporation Limited

Building Materials

• JK Cement Limited

Energy

• Adani Total Gas Limited

• GAIL India Limited

Healthcare

• Ajanta Pharma

Consumer Durables

• Blue Star Limited

Retail

• Kalyan Jewellers India Limited

International

• Accenture plc

Financial Services

HDFC Bank | Large Cap | Financial Services

HDFC Bank and its subsidiaries offer various banking and financial services such as retail banking, wholesale banking, treasury operations, insurance, and asset management. With overseas branches in multiple countries, the bank operates in segments including Wholesale Banking, Treasury, and Retail Banking.

[Concall]

Keki Mistry strongly asserts the bank’s top-tier governance and ethical standards, expecting future performance to validate this claim.

“Please believe me, we have the strongest form of governance in the bank. There is nothing wrong from an ethical perspective. In the coming months and years, the performance of the bank will reflect that.”

— Keki Mistry, Interim Chairman

Sashidhar Jagdishan expresses confidence in the economy and the bank’s strong positioning, anticipating a return to pre-merger growth levels.

“The economy is in a sweet spot. The bank is well-positioned and on its intended trajectory. You will see the kind of growth we had pre-merger coming back.”

— Sashidhar Jagdishan, CEO & Managing Director

Harsh Kumar Bhanwala details the bank’s rigorous process for investigating social media complaints and affirms a commitment to taking action against culpable individuals.

“All complaints or references in social media that impact the bank are examined and brought before the Audit Committee... We will not hesitate to take action if something adverse is found against individuals, and we have done that in the past.”

— Harsh Kumar Bhanwala, Head of Nomination & Remuneration Committee

Management indicates the outgoing Chairman cited personal value differences, not regulatory issues or bank excesses, as his reason for resignation.

“All of us had asked him what the reasons were behind this. He said, ‘I personally have no issues. It could be my value systems, which are different,’ but he did not say anything regarding regulatory excesses of the bank. It was all sound, and he agreed with us.”

— Management, Spokesperson

Keki Mistry expresses puzzlement as the outgoing Chairman did not provide specific reasons for his resignation despite being repeatedly asked.

“In fact, we had repeatedly asked him to tell us why he was bringing about this line. He did not give us anything. We had to accept it, but he said there was nothing specific. That was a bit baffling.”

— Keki Mistry, Interim Chairman

Keki Mistry highlights the RBI’s awareness and comfort with the bank’s situation, evidenced by the swift approval of his interim appointment.

“Many of the board members met the regulator, the RBI. The RBI is fully in the picture and in the loop. The fact that they are comfortable with what is going on in the bank is reflected in the fact that, within a short period of time, they approved my appointment for 3 months just to stabilize things.”

— Keki Mistry, Interim Chairman

Sashidhar Jagdishan emphasizes that the merger benefits will materialize and the bank remains well-positioned for future growth despite recent events.

“The bank has had a wonderful merger. Any merger takes time, but the fruits will start to play out. As we have committed, we are very well positioned to move ahead.”

— Sashidhar Jagdishan, CEO & Managing Director

Keki Mistry assures investors that the Chairman’s resignation will not impact the bank’s operational profitability or committed plans.

“Let me reassure you that what happened yesterday has nothing whatsoever to do with the operational profitability of the bank. None of that changes, and the bank will commit to doing whatever it has said it would do.”

— Keki Mistry, Interim Chairman

Defence

Bharat Electronics Limited | Large Cap | Defence

Bharat Electronics (BEL), a Navratna PSU under the Ministry of Defence in India, specializes in manufacturing advanced electronic products for defense forces. In addition to serving the Army, Navy, and Air Force, BEL has expanded its portfolio to include diverse offerings such as homeland security solutions, e-governance, space electronics, and energy storage products.

[Concall]

The company’s order book stands strong at INR 73,450 crores as of January 28, 2026, with INR 19,300 crores in orders acquired so far this fiscal year.

“And order book position as on 1st January 2026 is INR 73,015 crores, and as on 28th January 2026, as on today, is INR 73,450 crores. And order acquired till 1st January 2026 is INR 18,100 crores, and till today is INR 19,300 crores.”

— Manoj Jain, Chairman & Managing Director

The recent EU deal presents new market and joint research opportunities, particularly for R&D-focused companies like BEL, potentially leading to future business.

“It is too early to tell that right now. But definitely it is opening up a new market for us. And there is 1 more thing, new joint research opportunities also. Because I think they have told that there is a big research fund also available with EU, where they want to have some joint development. So, there are definitely companies like BEL who are R&D focused, and technology focused companies. We will have good tie-ups for a good joint research and where we may expect some funds flow also from research point of view.”

— Manoj Jain, Chairman & Managing Director

BEL has mitigated the risk of semiconductor shortages by developing alternate, more generic designs and does not foresee a major impact on operations.

“Semiconductor chips are very important component of BEL designs, no doubt on that. But knowing this shortage of chips and especially sometimes 1 particular type of chips are in shortage. We had already made design efforts to make alternate designs. So, based on that, today we are not feeling that hit on because of shortage of chips. So, our designs are now much more generic I should say like that.”

— Manoj Jain, Chairman & Managing Director

BEL is actively indigenizing critical semiconductor chips, including developing its own designs and engaging early with new Indian fabs, to reduce import dependencies.

“So, we are coming out with that type of a plan of indigenizing those chips. So, firstly we want to start with some critical chips. We have already done some investment for microwave-related important chips. So, we have designed our own chips to avoid this type of shortages and this type of dependencies. A few of digital chips also, fabless designs we have done. And all the fabs which are coming in India, we have signed an MOU with them, and early engagement already started with them to leverage on strengths of them manufacturing in India.”

— Manoj Jain, Chairman & Managing Director

For the QRSAM project, the missile component, roughly 30% of the total order value, will be subcontracted to BDL, with BEL executing the remaining 70% with other industry partners.

“QRSAM is a very complex project, consisting of various big, big subsystems. And missile is of course the largest subsystem, and missile will go to BDL from BEL. So, BEL will place an order. Once we receive the order, we will place an order to BDL about the missile. And missile order itself will be roughly around 30% of the total order value, roughly, I am telling you.”

— Manoj Jain, Chairman & Managing Director

BEL aims to significantly increase its non-defense revenue from 6-7% to over 10% in the near future and 15% long-term, driven by opportunities in Railway, Metro (KAVACH, CBDC, PSD), and Aviation sectors.

“Certainly, as you also told, right now our non-defense is around 6%, 7% type of thing only, which we want to definitely cross (+10%) in near future and long-term our aim is to make it 15 % and beyond. So, for that continuous efforts are being done, especially in Railway and Metro segment we have got good leads, KAVACH program is going in right direction. Our CBDC program also is coming to almost a finishing touch and PSD platform, Screen Doors we have got some orders and some more good leads are there for us.”

— Manoj Jain, Chairman & Managing Director

BEL aims to aggressively grow its secure, value-added data center solutions business, targeting over INR 1,000 crores annually from next year, leveraging AI and cybersecurity.

“Yes, orders what we have won is a few hundred crores, which is not our aim. Our aim is to quickly get a few thousands of crores in this data center business. And main aim is that we wanted to give a secure data center solution and combined not only as a data center as a combined value-added solution with the AI cyber security and other components built into these digital platforms. So, we wanted to give a comprehensive package around data centers, so that is our aim and we have done some good beginning right now. Our aim is minimum INR (+1,000) crore next year onwards from data center type of business.”

— Manoj Jain, Chairman & Managing Director

BEL plans to significantly increase its R&D investment by over 20% year-on-year, targeting over INR 1,700 crores this year and INR 2,000 crores next year, to support indigenization and new technology development.

“Yes. This R&D CAPEX means R&D expenditure total, R&D expenditure has 2 components, one is revenue and one is CAPEX, CAPEX requirement of the R&D community means the test instrument and other infrastructure. So put together itself we will call it as a total R&D expenditure for us. That last year, it was INR 1,468 crore or so. This year, our target is crossing INR 1,700 plus crores and next year, it will be more than INR 2,000 crores. So overall, now, we wanted to have almost 20 % plus increase year-on-year on our R&D expenses...”

— Manoj Jain, Chairman & Managing Director

BEL is actively pursuing export opportunities across its operations, aiming to increase export turnover from the current 3-4% to 5% in the near term and 10% long-term.

“Definitely, export opportunities are there in all the areas of BEL’s operation and we are doing a focused attempt to increase our export turnover from presently 3% to 4% to 5% in near future and overall 10% in a long-term.”

— Manoj Jain, Chairman & Managing Director

Software Services

Tech Mahindra | Large Cap | Software Services

Tech Mahindra Limited, a global leader in digital transformation and consulting services, offers a wide range of solutions including Telecom IT & Network Services, Application Outsourcing, Engineering Services, BPO, and more. Combining physical and digital design with advanced technologies like AI, ML, IoT, and AR/VR, the company helps clients drive digital transformation and innovation for their businesses.

[Interview]

Tech Mahindra is enabling scalable AI adoption through platform-led solutions like Orion and Indus, focusing on flexibility, multi-use deployment, and responsible AI integration.

“We have built platforms to adopt the responsible adoption of technologies like agentic AI across multiple different processes that our clients want to transform. Our agentic AI platform is called Orion. Similarly, we built a platform to train language models called Indus… the best way to create scale and scalable advantage for our customers is to deploy platforms which allow you to solve multiple use cases using the same technology.”
— Sham Arora, CTO, Tech Mahindra

Successful AI adoption requires strong underlying architecture, including modernized systems, accessible data, and flexible model integration.

“Our platform has flexibility—it allows you to use different models, define your own workflows, create agents, and provide context to those agents. But underlying this is a lot of work in modernizing technology platforms, exposing data so AI can consume it, and building the right architecture across the enterprise.”
— Sham Arora, CTO, Tech Mahindra

AI is currently driving efficiency gains by solving specific operational inefficiencies rather than fully transforming business models.

“We have done significant work with clients solving very specific problems—improving inefficiencies rather than displacing tasks… reducing downtime in systems, interpreting manuals in multiple languages to fix equipment faster, and enabling predictive maintenance.”
— Sham Arora, CTO, Tech Mahindra

The next phase of AI—transforming customer experiences and enabling new business models—is still evolving and yet to scale.

“When it comes to using AI for transforming experiences, businesses, or creating new innovations, that journey is still evolving and yet to fully scale.”
— Sham Arora, CTO, Tech Mahindra

Core SaaS systems will remain intact, while workflows and user experiences built on top will evolve significantly with AI.

“Systems of record—like ERP systems or customer data platforms—are always going to stay. What will evolve are the workflows and experiences built on top of them… the possibilities of that evolution have gone up much more significantly.”
— Sham Arora, CTO, Tech Mahindra

AI should be viewed as a full-stack opportunity spanning infrastructure to experience layers, not just a narrow disruption.

“AI is really a layered stack—from energy and infrastructure to data, models, applications, orchestration, and experience… at Tech Mahindra, we are working across all of these layers.”
— Sham Arora, CTO, Tech Mahindra

AI is improving the quality of work, enhancing ROI, and is expected to drive sustained industry growth and enterprise spending.

“The work enabled by AI is becoming richer, creating better value, and delivering stronger ROI… that’s why we believe the industry will continue to grow and attract more enterprise spending.”
— Sham Arora, CTO, Tech Mahindra

Persistent Systems Limited | Mid Cap | Software Services

Persistent Systems is a global digital engineering and enterprise modernization company that provides software product development and technology services. The company specializes in cloud, data, and AI-driven transformation for clients across banking, healthcare, and high-tech industries.

[Concall]

Using internal AI platforms is starting to significantly increase profit margins by reducing manual effort. This shows that AI is moving from a cost center to a major driver of profitability.

“As we have been sharing with you, a greater proportion of our services engagements are now driven by our AI platform and tools... Couple of engagements of this nature, which we signed in the last quarter and which are now scaling up, have contributed to an improvement in margin by 150 basis points.”

— Vinit Teredesai, Executive Director and Chief Financial Officer

Internal AI tools are drastically improving the company’s own operational efficiency. These metrics serve as a powerful case study to convince prospective clients of the efficiency gains they can achieve.

“ITAssist has reduced mean time to resolution for IT-related incidents from 3 hours to under 30 minutes cutting manual workload by 70%.”

— Debashis Singh, Chief Information Officer

The SASVA tool automates the understanding of old, complex codebases, allowing for faster modernization. This technological edge enables the company to deliver projects faster than traditional competitors.

“Our SASVA platform helped us decode the legacy logic, which is otherwise scattered across the enterprise... while preserving mission critical continuity and targeting around 22% productivity as well as time-to-market improvement.”

— Jaideep Dhok, Chief Operating Officer

AI tools are providing massive efficiency gains in specialized areas like pharmaceutical research and development. This domain expertise creates a high barrier to entry for other IT service providers.

“The solution involved AI-enhanced biomedical knowledge graph designed specifically for their Crohn’s disease R&D pipeline. The solution delivered a 60% uplift in data mining efficiency and drove up to 40% higher productivity in their drug discovery process.”

— Jaideep Dhok, Chief Operating Officer

The iAURA platform significantly cuts the time and effort needed for large-scale data migrations. This allows the company to secure major projects in highly regulated sectors like banking.

“This engagement fully leverages multiple accelerators within our agentic data platform iAURA spanning across assessment, platform development, governance, observability and the migration itself. The result is a stronger data outcome while fully addressing regulatory, governance and data sharing obligations and we are seeing overall program effort reduced by approximately 40%.”

— Jaideep Dhok, Chief Operating Officer

Securing a massive $100 million contract from a top-tier US bank demonstrates the company’s ability to win large, complex enterprise deals. This proves they can compete with much larger global IT firms.

“A Tier-I bank in the US selected Persistent to support their transformation program in its cybersecurity organization... we won a total of $100 million TCV deal this quarter, which included 25% new TCV component.”

— Saurabh Dwivedi, Corporate Vice President, Finance and Strategy

The company is shifting toward selling technology and services together rather than just billing for hours. This model makes their services more unique and can lead to more predictable revenue over time.

“The second part of it is where we have our own technology stack... more and more, we are not pricing things in a way that we are taking these things as independent sales. These are integrated sales and the timing of the revenue recognition will depend on how these are priced.”

— Sandeep Kalra, Executive Director and Chief Executive Officer

Management is investing heavily in creating its own software tools and platforms. These investments are now starting to generate direct revenue, justifying the high research and development spending.

“We have been heavily investing into developing new AI tools, productivity tools, SASVA platform, iAura, etc. As a result of that, you’re seeing the increment that is happening on the intangible assets... The good part is we are also being able to link and generate revenue out of it, which sort of justifies the capitalization.”

— Vinit Teredesai, Executive Director and Chief Financial Officer

Management believes their early focus on AI gives them a structural advantage over competitors. They plan to use current project successes to win even more business in the growing AI market.

“Today, we have a head start. And we believe with our continued investment, we should be able to manage our competitive differentiation... we have won significant deals. Those should fuel more deals, showcasing these deals with other customers.”

— Sandeep Kalra, Executive Director and Chief Executive Officer

Their tools can automatically extract business rules from old software that humans no longer understand. This unlocks massive modernization projects that were previously considered too difficult or risky.

“Using our platforms, we are able to get to 60 to 70% of reverse engineering of business logic... The benefits are far, far more than just a productivity gain.”

— Sandeep Kalra, Executive Director and Chief Executive Officer

Tyres

Apollo Tyres Limited | Mid Cap | Tyres

Apollo Tyres is a leading global tyre manufacturer with a dominant presence in India and a significant production footprint in Europe. The company specializes in manufacturing high-performance tyres for passenger vehicles, commercial trucks, and agricultural equipment.

[Concall]

Demand in India is growing rapidly across the replacement, original equipment, and export markets. This broad-based growth suggests the company is not overly dependent on any single sales channel.

“On the domestic front, we saw robust double-digit growth in all channels. All our three product categories saw very, very strong growth.”

— Neeraj Kanwar, Managing Director and Vice Chairman

The company’s high-profile cricket sponsorship is effectively boosting brand awareness and expanding its dealer network. Improved brand recognition typically leads to higher market share in premium consumer categories.

“Our sponsorship of the official Indian Cricket Team jersey has garnered us extensive media attention and coverage, driving unparalleled brand reach and visibility and adding distribution.”

— Neeraj Kanwar, Managing Director and Vice Chairman

Existing factories are running near their maximum capacity due to strong market demand. This utilization level signals that new investments in production capacity are necessary to sustain future growth.

“Our current capacity utilisation level in India are in the high 80s, and given our growth expectations for the near future, as seen by the current demand momentum, we would start hitting capacity limitations soon.”

— Gaurav Kumar, Chief Financial Officer

A massive multi-year investment plan has been approved to expand passenger and truck tyre production in Andhra Pradesh. This large commitment demonstrates management’s confidence in long-term domestic demand trends.

“The Board of Directors in the recent meeting approved a INR 5,800 crores capex for our AP plant for expanding both the PCR and TBR capacities, spread over the next three financial years, that is FY ‘27, ‘28, and ‘29.”

— Gaurav Kumar, Chief Financial Officer

The truck and bus radial tyre segment is operating at full capacity with no room for further internal growth. Immediate expansion is critical to prevent losing market share due to supply constraints.

“In our estimates, in TBR, we are running at close to 100% utilisation. So we need expansions coming.”

— Neeraj Kanwar, Managing Director and Vice Chairman

The company is closing a high-cost factory in the Netherlands and moving production to lower-cost regions like India and Hungary. This restructuring is expected to significantly improve the profitability of European operations by late 2027.

“The Enschede plant in Netherlands will stop production end of June 2026, one quarter into FY ‘27. The transition of the various product categories to the plant in Hungary and India is already underway and we think that in second half of FY ‘27 you would start seeing the benefit of that flowing through.”

— Gaurav Kumar, Chief Financial Officer

Direct sales to consumers for replacement tyres offer the best profit margins for the company. Investors should prioritize tracking the growth of the domestic replacement market as it most heavily influences the bottom line.

“Replacement always remains as the most profitable category. Exports is usually much lower than that. Of course, it can depend on the currency part of it. So TBR is where exports may inch up closer to the domestic replacement. But in general, domestic replacement would be always higher margin than exports.”

— Gaurav Kumar, Chief Financial Officer

The company is working to recover lost market share in the passenger car manufacturer segment but will not sacrifice profit to do so. This shows a disciplined approach to growth that prioritizes earnings quality over simple volume gains.

“We still need to regain some of the lost ground on the PCR OEM side... some of the decisions on account of profitability that were taken one or two years back... we are taking strategic calls on OE business. We will not again completely swing, ignoring the profitability aspect.”

— Gaurav Kumar, Chief Financial Officer

Auto

Maruti Suzuki India Limited | Large Cap | Auto

Maruti Suzuki is India’s largest passenger vehicle manufacturer, commanding a dominant market share in the domestic automotive sector. The company produces a wide range of vehicles including hatchbacks, sedans, and SUVs, and serves as a major export hub for Suzuki globally.

[Concall]

Recent GST reforms have triggered a massive rebound in vehicle demand across the industry. This suggests a favorable regulatory environment is driving strong volume growth for the market leader.

“The passenger vehicle industry which had experienced a decline of 0.4% in the first half of the financial year 2026, sprang to a whopping 20.5% growth in the third quarter as compared to Q3 last year. Maruti Suzuki benefited even more.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

Lower tax rates on small cars have revitalized Maruti’s core entry-level segment. This recovery in mass-market demand is a significant positive for the company’s overall volume trajectory.

“The primary driver of our sales volume growth in quarter 3 compared to the same period last year has been the small car segment in the 18% GST bracket. Fortunately for Maruti Suzuki, the demand is robust across the whole spectrum.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

Extremely low inventory levels and a high backlog indicate that the company is struggling to meet current demand. This implies strong revenue visibility for the upcoming quarters as the order book is serviced.

“We ended quarter 3 with a very low network inventory of just about 3-4 days along with a healthy order book of around 175,000 vehicles.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

The company is rapidly expanding its production capacity with two new lines totaling 500,000 units annually. Investors should view this as a commitment to capturing long-term market growth and resolving supply constraints.

“Our second plant at the Kharkhoda facility is scheduled to be operational by April 2026. Soon after in Gujarat, the D line, which is the fourth line at our existing Gujarat facility, will also be commissioned. Each will have a capacity to produce about 250,000 vehicles annually.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

Rising prices for precious metals and rare earth supply chain disruptions are pressuring operating margins. These headwinds highlight the company’s vulnerability to global commodity cycles and supply chain bottlenecks.

“There were several unfavorable factors like adverse commodity prices of about 60 basis points, largely on account of PGM, aluminum, and copper. There was an adverse impact due to rare earth element supply issues of about 20 basis points.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

The company is facing resistance from domestic steel manufacturers who may use protective duties to raise prices. Managing these raw material costs will be critical for maintaining profitability in the coming quarters.

“We will engage with the steel industry and mention to them that the safeguard duty should not be misused to increase steel prices, but it appears there are some signals they want to increase prices.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

The global rollout of Maruti’s first electric vehicle is proceeding quickly with exports already reaching 28 countries. This international expansion demonstrates the company’s ability to compete in the global EV market.

“On the eVitara, untill the end of December, we had shipped out 13,000 units which had reached 28 out of the 100 countries. The UK is our top destination in terms of volumes.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

Management believes that tax cuts for internal combustion engines will not derail the growth of electric vehicles. Continued government support through incentives ensures that the company’s EV transition remains on track.

“On ICE, I don’t think GST has a negative impact on EVs. The government is providing significant funds through the PLI scheme and other incentives. There is no reason EVs should not grow.”

— Rahul Bharti, CRO and Chief Senior Executive Officer, Corporate Affairs

Hero MotoCorp Limited | Large Cap | Auto

Hero MotoCorp is the world’s largest manufacturer of motorcycles and scooters, maintaining its leadership position for 25 consecutive years. The company is aggressively expanding into the electric vehicle market under the VIDA brand and strengthening its presence in the premium segment.

[Concall]

Management is prioritizing supply chain stability to avoid the manufacturing delays seen during previous global parts shortages. This resilience is necessary for the company to meet demand in an increasingly unstable global trade environment.

“We will also focus on ensuring that our supply chain is flexible, robust and resilient. We’ve all seen some of the disruption that as an industry, we had to face due to various component crisis and geopolitical issues.”

— Harshavardhan Chitale, Chief Executive Officer

Urban demand is currently leading the recovery due to recent tax benefits for city-dwelling workers. While urban areas are growing faster, rural demand showed unexpected strength during the recent festival season.

“Clearly, urban has more things going their way with income tax coming in and the benefits of income tax coming in and that started growing. We’ve seen that moving a little faster than the rural, though in rural, we saw in the festives, them peaking the peak.”

— Ashutosh Varma, India Business Unit, Chief Business Officer

Rising material costs and currency fluctuations are putting pressure on profit margins. The company will likely need to continue managing costs carefully to offset these higher production expenses.

“We’ve seen the prices of aluminum, precious metals going up starting last quarter. We’ve also seen some forex impact again starting last quarter... the impact coming from the commodity in the previous quarter was approximately 40 to 50 basis points.”

— Vivek Anand, Chief Financial Officer

Selling the battery separately from the vehicle lowers the initial purchase price for electric vehicle buyers. This strategy makes expensive EV technology accessible to a wider range of budget-conscious customers.

“We also launched an innovative product, which was the Battery-as-a-Service offering. This improved affordability of consumers who are looking to own an EV and help them to kind of bridge that barrier between affordability and actual desire to own a high-tech product.”

— Kausalya Nandakumar, EV Business, Chief Business Officer

The company has cleared out excess stock at dealerships to ensure that new production aligns closely with actual customer demand. Keeping inventory low improves cash flow and prevents the need for heavy discounting later on.

“We have significantly reduced our channel inventory this year. And we are very judicious in terms of planning.”

— Ashutosh Varma, India Business Unit, Chief Business Officer

Hero has successfully expanded its market share in Colombia and sees significant room for further growth in Latin America. Successful international expansion reduces the company’s dependence on the Indian domestic market alone.

“We have also done very well in Colombia, massive growth and big share expansion. And still, there is a big headroom for growth. Between us and #1 there, there is still 700 basis points available.”

— Harshavardhan Chitale, Chief Executive Officer

Management believes customers are currently willing to accept price hikes without buying fewer vehicles. This pricing power allows the company to protect its profit margins even when manufacturing costs go up.

“Market conditions are strong. And I don’t see any big concern in terms of really taking judicious price increase... I think that’s something I don’t see impacting our business going forward.”

— Vivek Anand, Chief Financial Officer

Changing social trends like city traffic and more women working are driving a shift in demand from motorcycles to scooters. Hero is pivotting its strategy to capture this faster-growing segment of the market.

“Urbanization, city is getting congested and more and more women also coming into workforce, gig economy growing... I think scooters may have higher growth rate going forward versus motorcycles as well.”

— Harshavardhan Chitale, Chief Executive Officer

The company is rapidly building a dedicated network of high-end ‘Premia’ stores to sell more expensive bikes. This retail expansion is critical for competing in the high-margin premium segment where Hero has historically been weak.

“In premium, the expansion to 106 stores already, which covers more than 50% of premium industry footprint.”

— Umang Khurana, Head, Investor Relations & Chief Risk Officer

Engineering & Capital Goods

Larsen & Toubro | Large Cap | Engineering & Construction

Larsen & Toubro is an Indian multinational conglomerate primarily engaged in engineering, procurement, and construction (EPC) projects, manufacturing, and technology services. The company operates across diverse sectors including infrastructure, energy, hi-tech manufacturing, and financial services globally.

[Concall]

Middle Eastern countries are shifting their spending towards digital transformation and urban modernization projects. This shift opens up new, high-technology growth avenues for L&T beyond traditional oil and gas infrastructure.

“In Saudi Arabia and the UAE, capital deployment remains oriented towards priority transformation agendas, including large scale investments in digital and AI enabling infrastructures such as data centers and cloud capacity, alongside ongoing urban development and infrastructure initiatives.”

— P. Ramakrishnan, Management Representative

L&T is restructuring its real estate arm into a standalone platform to improve focus and operational efficiency. This consolidation is intended to help the segment scale faster and capture more value from the Indian property market.

“The parent, Larsen & Toubro, has initiated a transfer of its realty business undertaking to L&T Realty Properties Limited, a wholly owned subsidiary... This marks the start of a phased consolidation of all real estate assets into a unified platform, positioning L&T Realty for greater scale, agility, and financial strength.”

— P. Ramakrishnan, Management Representative

The company is deepening its footprint in high-tech defense manufacturing through a major partnership for unmanned aircraft. This positions L&T to be a primary beneficiary of India’s long-term defense indigenization programs.

“The Precision Engineering and Systems business of the company entered a strategic partnership with General Atomics Aeronautical Systems to manufacture medium altitude long endurance remotely piloted aircraft systems (RPAS) in India.”

— P. Ramakrishnan, Management Representative

Profitability in the energy segment has been temporarily hurt by older, low-priced contracts that were signed during challenging periods. Once these legacy projects are completed in the coming quarters, segment margins are expected to rebound.

“The margin decline in the hydrocarbon business is primarily due to cost overruns in a few competitively priced domestic and international projects. These projects are in their terminal execution phase and are expected to conclude over the next few quarters.”

— P. Ramakrishnan, Management Representative

L&T has a massive multi-year opportunity in Saudi Arabian power projects that will be recognized in the order book over time. This phased approach ensures a steady stream of high-value work from a key international client.

“Regarding the framework agreement [Tanajib], we have a total potential of 12 gigawatts... we have included in our order inflow two of those. We are in discussion with the customer for the third and fourth packages.”

— Subrahmanian Sharma, Deputy Managing Director and President

The company is intentionally slowing down work on specific water infrastructure projects where government payments are delayed. This disciplined approach protects L&T from taking on excessive credit risk and bad debt.

“As far as water is concerned, certain projects under the central plan have faced headwinds in terms of fund allocation, and to that extent, we have calibrated our execution momentum in this segment to the extent of funds that we receive.”

— P. Ramakrishnan, Management Representative

Operational difficulties are confined to projects won during volatile pandemic years that are now nearing handover. The exit from these projects will clear the path for a cleaner, higher-margin project portfolio in the future.

“Most of the projects in the portfolio facing challenges were secured during the COVID or post-COVID period... within two or three quarters we should be out of it.”

— Subrahmanian Sharma, Deputy Managing Director and President

The company has structured its green energy deals to protect its profits from the rising costs of raw materials. This hedging and contract structure reduces the earnings volatility usually associated with renewable energy projects.

“On renewable contracts, we have passed most of the price risk to the customer... our renewable projects are subject to very limited commodity risk.”

— Subrahmanian Sharma, Deputy Managing Director and President

There is a significant resurgence in traditional coal-fired power demand in India that L&T is well-positioned to capture. This unexpected growth in thermal power adds a new engine to the company’s energy business alongside renewables.

“Market development in thermal power has been a pleasant surprise... we believe the country will add 15 to 20 gigawatts in the next two years... we see at least a 4 to 5 gigawatt opportunity for us.”

— Subrahmanian Sharma, Deputy Managing Director and President

Indian Railway Finance Corporation Limited | Large Cap | Engineering & Capital Goods

IRFC is the dedicated market borrowing arm of the Indian Railways, primarily responsible for financing the acquisition of rolling stock and infrastructure assets. It is expanding its mandate to finance the broader railway ecosystem, including private sector entities and allied infrastructure projects.

[Concall]

IRFC has officially shifted its strategy from serving only the Indian Railways to financing various clients across the railway sector. This change reduces the company’s dependence on a single client and opens new growth avenues.

“As we started this FY three quarters back, it was a new era for IRFC being entering into a diversification mode from single client system that we had for nearly 38 years to multi-client mode in the railway ecosystem.”

— Manoj Kumar Dubey, Chairman and Managing Director & Chief Executive Officer

IRFC is focusing exclusively on large-scale corporate lending with high ticket sizes for better efficiency. This strategy allows the company to maintain low overheads while managing a massive loan book.

“We are strictly into B2B, and our efforts are that we should look for the clients which are having potential of raising around INR 10,000 to INR 15,000 crore from us, and one ticket is not less than INR 5,000 crore.”

— Manoj Kumar Dubey, Chairman and Managing Director & Chief Executive Officer

The company aims to reach a portfolio where 40% of loans are to the broader railway ecosystem by 2030. This shift is critical as these loans are much more profitable than traditional sovereign-backed lending.

“In this 2030 plan, we are looking forward to a mix of 60-40, 60 coming from the Indian Railways and 40% of the mix coming from the railway ecosystem, where the margins are nearly 3x of what we get from the railways.”

— Manoj Kumar Dubey, Chairman and Managing Director & Chief Executive Officer

The management is carefully selecting only the highest-quality assets for their new lending portfolio. This selectivity is the core strategy for keeping the company’s loan book free of bad debts.

“Our cherry-picking in all the ecosystem that we are doing... will remain our mainstay. And we believe that... we will be able to maintain our pristine zero NPA system going ahead also.”

— Manoj Kumar Dubey, Chairman and Managing Director & Chief Executive Officer

The company maintains a significant cost advantage in borrowing compared to other financial institutions. This lower cost of capital allows IRFC to be more competitive and profitable in its lending bids.

“We are nearly 20 to 30 bps cheaper than anybody in the ecosystem as our peers. And overall cost is always remaining less than 7%.”

— Manoj Kumar Dubey, Chairman and Managing Director & Chief Executive Officer

The high number of competitors bidding for the same projects validates the high quality of assets IRFC is targeting. This competitive interest confirms that the company is lending to fundamentally sound businesses.

“Participation were as large as 7 to even 15 participants from the financial sector. That is a reinforcement of the fact that we are entering into the area where 10 to 15 companies are... finding the assets as pristine.”

— Manoj Kumar Dubey, Chairman and Managing Director & Chief Executive Officer

Building Materials

JK Cement Limited | Large Cap | Building Materials

JK Cement Limited is a leading Indian manufacturer and exporter of grey and white cement with a significant presence in India and international markets. The company is executing an aggressive capacity expansion strategy focused on the Central, North, and South Indian markets.

[Concall]

Work has begun on a major new project in Jaisalmer with a target completion date in late 2027. This confirms the company’s long-term growth plan to significantly increase its total production capacity.

“We have undertaken a Greenfield expansion at Jaisalmer... civil work has already started and we are hopeful that by September 2027, this should get commissioned.”

— Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer

Changes in tax rates have reduced the amount of government incentives the company receives. Investors should be aware that lower incentives can create a drag on overall profitability margins.

“Q3 number of incentives is lower on account of the GST rate cut and the impact is around INR 25 crores. So, last quarter number was INR 86 crores and this quarter it is INR 60 crores.”

— Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer

Plants located near coal mines benefit from lower fuel transportation and procurement costs. This geographical advantage helps the company maintain a lower cost structure than competitors located further away.

“Central plant is actually basically more on, closer to the mines, it is more on Indian coal, which is cheaper... we are closer to the coal field, so we have an access to cheaper fuel.”

— Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer

The company has set aside money to cover new liabilities caused by changes in national labor laws. While this is a one-time expense, it reflects a permanent increase in employee-related costs.

“See, as an exception item, this is under the new Labour Code... this could be the liability on account of this revision, though we are still discussing and freezing the numbers.”

— Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer

The company’s new paint business is growing and is expected to stop losing money by the next fiscal year. Reaching a break-even point in this segment would remove a drag on consolidated earnings.

“And paint turnover was INR 103 crores in this quarter... and next year, what we see when we cross the INR 500 crore number with a higher gross margin, that FY 2027, we should see a break-even in the paint business.”

— Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer

Further capacity expansion announcements are being held until current large projects are closer to completion. This approach shows management is balancing its growth ambitions with financial prudence.

“I think that announcement [on Muddapur] will come post-commissioning of Jaisalmer... It all depends on how you see the market at that point of time, how you see your balance sheet.”

— Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer

Energy

Adani Total Gas Limited | Mid Cap | Energy

Adani Total Gas is a leading Indian city gas distribution company developing networks for Piped Natural Gas and Compressed Natural Gas. It operates as a joint venture between the Adani Group and TotalEnergies, focusing on industrial, commercial, and residential energy solutions.

[Concall]

ATGL is aggressively diversifying into the electric vehicle charging market to complement it gas business. Reaching the 10,000 charge point target would establish the company as a major player in India’s green mobility infrastructure.

“Our network through our subsidiary, Adani Total Energies E-Mobility Limited (ATEEL), has installed 4,908 charge points across 26 states and union territories... We are on track with our ambition of installing 10,000 EV charge points in the near future.”

— Suresh P. Manglani, Executive Director and CEO

A significant reduction in interstate taxes lowers the landing cost of gas for customers outside the company’s home state. This tax reform makes natural gas more price-competitive against alternative fuels in new markets.

“During the quarter, the CGD industry witnessed two important regulatory developments. First, the transition to 2% CST from the earlier 15% VAT on natural gas transported outside Gujarat.”

— Suresh P. Manglani, Executive Director and CEO

The new two-zone tariff simplifies costs and benefits segments located far from gas supply sources. Unified pricing allows for more predictable margins and easier expansion into distant geographical areas.

“Second, the introduction of a simplified two-zone transmission tariff structure. Entire supplies for domestic PNG and CNG transport segments are now applied a Zone 1 tariff of 54 rupees irrespective of distance.”

— Suresh P. Manglani, Executive Director and CEO

The new tariff regime is providing a substantial cost benefit to the majority of the company’s gas portfolio. This boost is particularly helpful for scaling operations in newer territories where infrastructure costs are high.

“Applying the Zone 1 tariff of 54 rupees for entire PNG and CNG volumes—which is about 70% of our volume—has benefited us significantly, especially in GAs outside Gujarat.”

— Suresh P. Manglani, Executive Director and CEO

ATGL is actively participating in compressed biogas (CBG) production and procurement, with current blending levels below the 2% target, indicating future potential for growth in this sustainable energy segment.

“Regarding the blending, there is currently a requirement to move toward 1% and then 2%. We produce CBG through our Barsana plant and purchase from other developers under the SATAT scheme. Currently, CBG volume gets pooled, becoming part of the unified base price. Our current blending is much less than the 2% you indicated.”

— Suresh P. Manglani, Executive Director and CEO

ATGL relies heavily on domestic gas sources, which are typically cheaper than imported liquefied natural gas. The stability of these domestic supplies helps the company maintain healthier profit margins.

“Domestic gas, including APM and HPHT, comprises about 65% to 70% of our portfolio, with the balance being RLNG. We have not seen a significant depletion in domestic gas.”

— Suresh P. Manglani, Executive Director and CEO

Direct financial incentives are being used to lower the entry barrier for vehicle owners to switch to CNG. Targeting heavy vehicles like trucks and buses can lead to massive jumps in recurring gas consumption volumes.

“We have launched incentives like cashbacks of 15,000 to 20,000 rupees for retrofits and up to 1.5 lakh for trucks and buses to widen our consumer base.”

— Suresh P. Manglani, Executive Director and CEO

The majority of vehicle additions are coming from factory-fitted CNG models rather than aftermarket conversions. High OEM sales are a more sustainable driver of volume growth as they indicate broader manufacturer support for gas technology.

“A significant portion is OEM. The current trend is leaning toward new CNG vehicles due to OEM promotions and our incentives. The split is approximately two-thirds OEM and one-third retrofit.”

— Suresh P. Manglani, Executive Director and CEO

The industrial segment faces competition from other fuels when their global prices drop. This highlight shows that the company’s volume growth can be sensitive to the price fluctuations of competing energy sources.

“Propane and LPG prices were very moderate this quarter, which put pressure on our volume.”

— Suresh P. Manglani, Executive Director and CEO

Adani Total Gas is proactively advocating for stricter cleaner fuel norms and incentives for MSMEs to encourage PNG adoption, aiming to boost industrial consumption and optimize infrastructure utilization.

“We are engaging with policymakers regarding compliance with cleaner fuel norms, especially in NCR. We are also advocating for incentives for MSMEs to voluntarily opt for PNG to help boost industrial consumption and infrastructure utilization.”

— Suresh P. Manglani, Executive Director and CEO

GAIL India Limited | Mid Cap | Energy

GAIL is India’s primary natural gas company, dominating the country’s gas transmission and marketing landscape through an extensive pipeline network. The company also operates significant business segments in petrochemicals, liquid hydrocarbons, and city gas distribution.

[Concall]

The company is challenging the recent tariff order to seek a higher rate that better reflects its operational costs and capital expenditure. If successful, this petition could lead to further upside in transmission revenue and improved margins.

“GAIL filed a review petition on December 26, 2025, seeking an increase of Rs.15 per MMBTU to the interim revision. We submitted approximately Rs.78 but received Rs.65.69.”

— Rakesh Kumar Jain, Director of Finance

Management is evaluating a massive investment in two fertilizer plants to create steady, high-volume demand for its pipeline network. This move integrates the business further downstream while ensuring long-term utilization of its gas infrastructure.

“GAIL has been offered to set up two fertilizer plants along the MNJPL corridor. Apart from entering the fertilizer sector, these plants will act as an anchor load for MNJPL. The investment for these two plants is 21,000 crores.”

— Rakesh Kumar Jain, Director of Finance

The company is scaling its footprint in sustainable fuel by investing in several new compressed biogas facilities. This initiative diversifies the company’s energy portfolio and aligns with national green energy targets.

“Compressed biogas (CBG) remains a strategic pillar. Following the successful commissioning of a 5-ton-per-day CBG plant at Ranchi, the board approved investment for six additional CBG plants. These are part of our commitment to establish 25-30 CBG plants across India.”

— Rakesh Kumar Jain, Director of Finance

The company plans to aggressively expand its long-term gas sourcing portfolio by over 30% by the end of the decade. Increasing the volume of contracted gas allows the company to secure supply for India’s growing industrial and domestic demand.

“By 2030, we want to increase our portfolio by at least 6-7 MMTPA from the current level, reaching at least 22-23 MMTPA.”

— Rakesh Kumar Jain, Director of Finance

Management is investing in infrastructure to optimize feedstock sourcing for its petrochemical operations. Lowering raw material costs through dedicated pipelines is a key strategy for turning around the currently loss-making petrochemical segment.

“We are also working on a C2-C3 pipeline from Vijaypur to Pata and exploring dedicated ethane sourcing to improve profitability.”

— Rakesh Kumar Jain, Director of Finance

Healthcare

Ajanta Pharma | Mid Cap | Healthcare

Ajanta Pharma is a specialty pharmaceutical firm focused on developing and marketing high-quality medicines in India, the United States, and emerging markets. The company maintains a leading position in niche therapeutic segments like cardiology, ophthalmology, and dermatology through a branded generics business model.

[Concall]

The company is expanding its portfolio into gynecology, and early feedback from doctors has been positive. Adding new therapeutic segments provides a fresh pathway for domestic growth beyond its core existing markets.

“The new therapy of Gynecology is taking good shape and is expected to contribute meaningfully to revenue in the coming year.”

— Rajesh Agrawal, Joint Managing Director

The company is rapidly gaining market share in the Indian dermatology segment and climbing up the industry rankings. Outgrowing the broader market highlights the strength of their brands and the effectiveness of their sales force.

“In Dermatology, we have gained two ranks and outperformed the market by nearly 2 times the growth rate.”

— Rajesh Agrawal, Joint Managing Director

Ajanta Pharma plans to be an early entrant in the Indian GLP-1 market, launching its own branded product in March and integrating it into next year’s growth projections.

“For GLP, we will be launching in India under our own trademark and expect to be in the first wave of the product launch in March. We have factored that into the growth plans for next year.”

— Rajesh Agrawal, Joint Managing Director

The GLP-1 market is expected to face intense competition in India with many players, but significantly less in other emerging markets with only 4-6 competitors.

“We believe India will have aggressive competition, perhaps 15 to 20 plus companies. In our other markets, we believe it will not be as aggressive, staying around 4 to 6 companies depending on who gets approval. Competition intensity in emerging markets will not be as high as in India.”

— Rajesh Agrawal, Joint Managing Director

Ajanta Pharma firmly clarified its commitment to remaining solely in the pharmaceutical business, dismissing rumors of diversification into non-pharma sectors.

“Absolutely, we are very clear about this. A clarification was issued that it was by one of the promoter’s family offices, not by Ajanta Pharma. Ajanta Pharma remains only in the pharma business and will continue to do so.”

— Rajesh Agrawal, Joint Managing Director

Consumer Durables

Blue Star Limited | Mid Cap | Consumer Durables

Blue Star Limited is a leading Indian engineering firm specializing in air conditioning, commercial refrigeration, and large-scale electromechanical projects. The company serves diverse sectors including residential, corporate offices, data centers, and industrial facilities across domestic and international markets.

[Concall]

A one-time expense related to new labor regulations significantly reduced the reported net profit for the quarter. This is a non-recurring item and does not reflect the underlying operational strength of the business.

“Pursuant to the notification of the labor codes... the company has recognized an incremental impact of gratuity and leave encashment amounting to 56 crores on an estimated basis.”

— Nikhil Sohoni, Group Chief Financial Officer

Management proactively cleared old stock to prepare for new government energy efficiency standards. This prevented the need for aggressive discounting that would have hurt profit margins.

“We took that decision much earlier to slow down production and move towards the new energy label products... so that we would not be saddled with inventory.”

— B. Thiagarajan, Managing Director

Despite a GST reduction, consumers will likely face a net price increase of approximately 10% due to higher costs from energy label changes, commodity prices, and exchange rate fluctuations.

“GST reduction is available, but the energy label change, commodity prices, and exchange rates will result in an estimated 10% net increase to the consumers.”

— B. Thiagarajan, Managing Director

The company’s current inventory levels are lean, allowing for better cash flow and flexibility. They are prepared to stock up aggressively to meet anticipated high demand during the peak summer months.

“For Blue Star, it [inventory] is lower, likely 5-6 weeks... In March or April, we are even comfortable with 12 weeks of inventory if we expect a strong summer.”

— B. Thiagarajan, Managing Director

Blue Star holds a dominant position in providing cooling infrastructure for high-growth tech sectors like data centers. This leadership provides a strong pipeline of specialized, high-value project work.

“In the EPC part of data centers and semiconductor space, we are already market leaders.”

— B. Thiagarajan, Managing Director

Retail

Kalyan Jewellers India Limited | Mid Cap | Retail

Kalyan Jewellers is a leading Indian jewellery retailer with a significant presence across India and the Middle East. The company operates through a large network of showrooms and an omnichannel e-commerce platform named Candere.

[Concall]

Management is actively adjusting inventory volumes to offset the impact of rising gold prices. This tactical trimming helps maintain efficient stock turnover and prevents capital from being locked in high-cost inventory.

“In our own showroom also, we cannot keep the same volume of jewellery, when the price is going up. We will have to trim the volume not directly to the percentage of the price increase, but to some extent to manage our inventory.”

— Ramesh Kalyanaraman, Executive Director

The company is introducing a new localized brand strategy to target specific regional demographics in India. Investors should watch this pilot as a potential template for deeper market penetration in fragmented regional markets.

“The region brand will be launched in the running quarter. And as I had mentioned previously, it is in one state in India at a go, wherein there will be only the region brand will come only in one state.”

— Ramesh Kalyanaraman, Executive Director

Revenue from consumer saving schemes remains a stable and predictable part of the total sales mix. This consistency provides a steady inflow of advance payments and secures future customer purchase commitments.

“Gold savings scheme usually is in the range of 18% to 20%, which remains the same.”

— Ramesh Kalyanaraman, Executive Director

Consumer preferences are shifting toward lower karatage options to maintain affordability amidst high gold prices. This transition allows the company to offer competitive price points while protecting transaction volumes.

“Customers are accepting 18-karat jewellery as it enables them more choice within their budget. So, two states - three states, which are predominantly 18-karat markets still continue to be strong.”

— Ramesh Kalyanaraman, Executive Director

The company is taking a cautious, wait-and-watch approach toward the lab-grown diamond market rather than rushing in. This indicates management is prioritizing its traditional high-value diamond and gold business for the time being.

“We continue to watch the space very closely. But as of now, we do not have any immediate plans for a lab-grown brand.”

— Ramesh Kalyanaraman, Executive Director

Management is actively working to monetize non-core land assets by the first half of the next fiscal year. Successful sales will inject liquidity into the business and could be used for further debt reduction or growth initiatives.

“We have appointed mediators for finding out interested buyers for real estate, which we are planning to sell. Hopefully, should happen by H1 of the next financial year.”

— Ramesh Kalyanaraman, Executive Director

The company is exploring a shift toward a franchise model in the Middle East, which has traditionally been company-owned. Moving to a capital-light model in international markets could significantly accelerate overseas growth and improve returns.

“We are in active discussions with a few Arab investors for franchise and the interest level from Arab investors for a Kalyan franchise has now developed. If that materializes, then the growth can be much higher.”

— Ramesh Kalyanaraman, Executive Director

International

Accenture plc | International

Accenture plc is a global professional services firm specializing in IT consulting, management consulting, technology transformation, and outsourcing. They leverage AI, cloud computing, and cybersecurity, organized under “Reinvention Services” to help businesses digitize operations. They serve over 40 industries, focusing on customer-centric strategies and digital operations.

[Concall]

Accenture said it delivered a strong quarter with broad-based revenue growth, record bookings, and continued market share gains.

“We delivered another strong quarter with $18 billion of revenue, growing 4% in local currency and once again taking significant market share. We had record bookings of $22.1 billion, bringing H1 bookings to a total of $43 billion.”
— Julie T. Sweet, CEO & Chairman

The company highlighted rising large-deal momentum, with a record number of clients generating more than $100 million in quarterly bookings.

“We had a record 41 clients with quarterly bookings greater than $100 million, bringing us to 74 of these bookings in the first half, 12 more than this time last year, demonstrating the continued demand for reinvention at scale.”
— Julie T. Sweet, CEO & Chairman

Accenture is stepping up acquisitions to expand into higher-growth areas, improve margins, and build more non-FTE revenue streams.

“Our goal with acquisitions is to more rapidly expand into higher growth areas with attractive margins, which will fuel organic growth and increasingly help us grow non-FTE-related revenue.”
— Julie T. Sweet, CEO & Chairman

The company said it is on track to more than double FY26 bookings from key emerging AI and data ecosystem partners versus FY25.

“We are on track in FY ‘26 to more than double our bookings over FY ‘25 from partnerships with our key emerging AI and data ecosystem partners.”
— Julie T. Sweet, CEO & Chairman

Accenture said AI-enabled transformation remains a core investment focus, including new acquisitions in AI-native services and decision intelligence.

“Last week, we closed the acquisition of Faculty, a leading U.K.-based AI native services company with the decision intelligence product business that provides a platform for us to expand into new areas of unmet AI demand with non-FTE revenue.”
— Julie T. Sweet, CEO & Chairman

The company is also investing in AI enablers such as data centers, cybersecurity, energy infrastructure, and data assets.

“AI enablers include data centers, cybersecurity, energy infrastructure and data.”
— Julie T. Sweet, CEO & Chairman

Accenture’s acquisition strategy is increasingly targeting subscription, licensing, and other non-FTE commercial models.

“Ookla, with only 430 employees, generated $231 million of revenue in their calendar year 2025 through non-FTE subscription and licensing revenue models and an 8% year-over-year growth rate and with healthy margins accretive to Accenture.”
— Julie T. Sweet, CEO & Chairman

Accenture said it has already exceeded its AI and data talent goal ahead of schedule.

“We now have over 85,000 AI and data professionals already exceeding our goal of 80,000 professionals by the end of fiscal 2026.”
— Julie T. Sweet, CEO & Chairman

Management said fixed-price work now makes up more than 60% of business, reflecting the growing role of proprietary platforms and demand for delivery certainty.

“Within bookings, the percentage of our work, which is fixed price, continues to increase over 60% in FY ‘25. This reflects the rising importance of our proprietary platforms and clients’ need for cost and delivery certainty, where our scale, experience and financial strength matter.”
— Angie Park, Chief Financial Officer

The company said AI is increasingly central to client transformation programs, often driving related cloud, security, data, and operating model work.

“Clients are implementing foundational programs with our ecosystem partners to capture the full opportunity of AI. These typically involve cloud, security and data modernization, often combined with operating model and talent transformation. We continue to see at least 1 out of every 2 advanced AI projects lead to a data project.”
— Julie T. Sweet, CEO & Chairman

Accenture said more clients are moving from proof of concept to production in AI, while new AI project initiations continue to rise.

“We also are seeing more moving from proof of concept to production, while others are still at the beginning of their journey with another 100 clients or so initiating advanced AI projects with us this quarter.”
— Julie T. Sweet, CEO & Chairman

The company sees AI as a current market share driver and a long-term growth opportunity.

“We see AI as a tailwind because it’s helping us win more today and take market share, and it is creating new opportunities for growth over time.”
— Julie T. Sweet, CEO & Chairman

Accenture framed its role in AI as helping clients decide what to deploy, integrate models into systems, redesign processes, and build the talent to scale adoption.

“Foundation models provide the intelligence, and our role is helping clients understand what to deploy and when, how to integrate it into their systems, reimagine their processes, modernize their data and digital core, help redesign their operating models and do effective change management and help build the capabilities and talent needed to scale across the enterprise.”
— Julie T. Sweet, CEO & Chairman

The company said SaaS work is evolving, with clients now expecting new implementations to be designed for AI from day one.

“Clients are continuing to modernize their tech stacks with SaaS, but they’re now asking that new SaaS implementations be designed from day 1 to use processes that integrate both AI from the SaaS provider and other providers.”
— Julie T. Sweet, CEO & Chairman

Accenture believes AI will unlock a large second wave of work in ERP by embedding intelligence into systems implemented before advanced AI existed.

“When those systems were implemented, advanced AI did not yet exist. Now, those clients want to embed the new AI and data capabilities and transform their end-to-end processes.”
— Julie T. Sweet, CEO & Chairman

Management said Accenture is beginning to see a broader pattern where core modernization is followed by AI-led enhancement.

“We’re beginning to see the same sequence more broadly, modernization of the core followed by AI-driven enhancement.”
— Julie T. Sweet, CEO & Chairman

The company sees AI as a major catalyst for cybersecurity growth and new modernization opportunities, including mainframe transformation.

“We see advanced AI as a catalyst to our cybersecurity business as the threat landscape expands and new tools emerge to protect and attack.”
— Julie T. Sweet, CEO & Chairman

The company identified conversational and agentic commerce as one of the most exciting new AI-led growth opportunities.

“In Accenture Song, LLMs are driving the biggest revolution in retail since the advent of social media.”
— Julie T. Sweet, CEO & Chairman

Accenture said some client software projects are already being delivered materially faster using advanced AI models.

“Those models are accelerating software work across the board, new development to upgrades. And some projects are already seeing delivery move 50% faster.”
— Julie T. Sweet, CEO & Chairman

Accenture called AI potentially the most important technology breakthrough since electricity and said clients will need major transformation to capture its value.

“AI, as it stands right now, may turn out to be the most powerful technology breakthrough since electricity.”
— Julie T. Sweet, CEO & Chairman

Despite conflict in the Middle East, Accenture said it is not currently seeing a meaningful financial impact.

“Currently, we are not seeing any significant financial impact.”
— Angie Park, Chief Financial Officer

Accenture increased its acquisition deployment target for FY26 and said it could invest even more if attractive assets become available.

“We have a strong pipeline of opportunities, and now, expect to invest about $5 billion in acquisitions this fiscal year. But as Julie said, we could do more if the opportunities present themselves.”
— Angie Park, Chief Financial Officer

Management said AI benefits should currently be judged through relative business performance, market share gains, and ecosystem growth rather than one isolated metric.

“At this point in our business, AI is permeating everything we do... like to start with like your first kind of way of looking at is how is our business performing relative to everyone else and are we taking market share, right?”
— Julie T. Sweet, CEO & Chairman

Accenture said better frontier models do not directly translate into bookings immediately, but they expand the set of enterprise use cases the company can pursue.

“When the models come out, there isn’t a direct correlation to bookings or new work, but what it does is create the next opportunity for us to look at what are the solutions that it’s going to now create.”
— Julie T. Sweet, CEO & Chairman

Management said efficiency-led AI use cases still dominate today, though growth-oriented AI programs are starting to increase.

“We are absolutely seeing an uptick in growth-focused AI programs, but efficiency is still leading the way.”
— Julie T. Sweet, CEO & Chairman

Among growth use cases, Accenture sees conversational and agentic commerce as the hottest area of current demand.

“The most exciting area right now on growth is conversational and Agentic commerce. Demand is surging there.”
— Julie T. Sweet, CEO & Chairman

Accenture acknowledged it is paying higher multiples for some acquisitions as it shifts toward higher-growth and higher-margin assets.

“In some cases, we are paying higher multiples than in the past. So the immediate uplift is lower in those instances than prior acquisitions.”
— Angie Park, Chief Financial Officer

Accenture said free cash flow strength is being driven by better operating efficiency and improved collections.

“That is really driven by efficiencies in our operations as well as DSO.”
— Angie Park, Chief Financial Officer

Accenture said large enterprises are generating more $100 million-plus bookings because AI is acting as a catalyst for broad-based reinvention across large technology estates.

“In the large enterprises, it just is a reflection of just how much reinvention they have to do and that AI is the catalyst for that.”
— Julie T. Sweet, CEO & Chairman

That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!

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Quotes in this newsletter were curated by Meher & Vignesh.

Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.

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In this edition, we have covered 15 companies across 8 industries.

Financial Services

• Piramal Finance

• SBI Cards and Payment Services Limited

Auto

• Maruti Suzuki India Limited

• Sona BLW Precision

• India Nippon Electricals Ltd

FMCG

• Zydus Wellness

• Shri Gang Industries & Allied Products

• Godfrey Phillips India Limited

Metals

• MOIL Limited

Trading

• Shiv Texchem

Engineering & Capital Goods

• Gala Precision Engineering

• Oriental Rail Infrastructure Limited

• KEI Industries Limited

Healthcare

• Aster DM Healthcare Limited

Real Estate

• Prestige Estates

Financial Services

Piramal Finance | Mid Cap | Financial Services

Piramal Finance provides easy access to affordable Housing Finance to realise home-ownership aspirations of millions of Lower and Middle income families in semi-urban and rural India.

[Presentation]

Piramal is integrating AI across underwriting, collections, customer experience, and productivity. Tools like Collections.ai, reinforcement learning models, and speech-to-text systems are improving resolution rates, reducing complaints, boosting disbursement productivity, and enabling AI to generate 54% of internal code.

Piramal’s credit scorecards appear effective as only 16% of rejected applicants secure loans elsewhere, and those borrowers show 2.8x higher risk than approved customers. This indicates the company’s underwriting filters are successfully identifying and avoiding higher-risk borrowers.

The typical Piramal customer is around 38 years old, earning ~₹49K monthly, with 55% self-employed borrowers. About 82% of customers come from non-tier-1 markets, highlighting the company’s strong focus on semi-urban and emerging markets through its 518-branch network across 26 states.

Piramal Finance has significantly transformed its portfolio, with total AUM rising to ₹97K crore (+23% YoY) while legacy AUM has sharply reduced. Retail lending now accounts for 82% of total AUM, supported by rapid branch expansion and strategic restructuring initiatives.

The company aims to reach ₹1.5 lakh crore AUM by FY28, implying a 24–26% CAGR from FY25 levels. Recent momentum shows AUM already growing 23% YoY, indicating the company is broadly on track to meet this growth target.

SBI Cards and Payment Services Limited | Large Cap | Financial Services - Credit Cards

SBI Cards is India’s leading pure-play credit card issuer, offering a wide array of lifestyle and rewards-based products. The company leverages its parent State Bank of India’s massive network for efficient customer acquisition and scale.

[Presentation]

A stable revolver mix alongside rising transactor shares indicates card usage is shifting toward convenience rather than borrowing. While this reduces credit risk, it increases reliance on fee-based income to offset capped interest upside.

Rapid UPI spend growth on RuPay cards, especially in Tier 2+ cities, establishes a massive growth vector in small-ticket merchant payments. This expanded digital footprint creates an efficient acquisition funnel for higher-margin credit products.

Spend market share is rebounding significantly faster than card-in-force share, signaling higher transaction intensity. This trend suggests a higher-quality user base that is less prone to inactivity risks.

Auto

Maruti Suzuki India Limited | Large Cap | Auto

Maruti Suzuki is India’s largest passenger vehicle manufacturer, commanding a dominant market share through an extensive distribution network and diverse product range. The company is currently executing a massive capacity expansion plan to double production by 2030 while transitioning its portfolio toward hybrids and electric vehicles.

[Presentation]

Doubling production to 4 million units by 2030 reflects a massive bet on India’s structural demand growth. This scale-up is designed to secure a pre-emptive advantage over both domestic and global rivals.

Massive middle-class expansion is shifting the market toward aspirational ownership, moving beyond basic utility. Growth now hinges on capturing these higher-ticket buyers to improve overall profitability.

Reaching the $3,500 income inflection point signals a looming surge in car ownership mirroring China’s historical growth. This environment favors the manufacturer with the largest scale and most aggressive capacity rollout.

India’s low vehicle penetration of 30 per 1,000 people relative to global peers highlights a multi-decade structural growth runway. This massive gap suggests long-term demand will rise steadily as per capita incomes increase.

Sales volumes are shifting decisively from the entry-level Mini segment toward Compacts and SUVs. This shift reflects a favorable product mix evolution that generally supports higher unit economics and margin expansion.

The 2025 GST revision acts as a catalyst for entry-level demand by narrowing the price gap with premium motorcycles. Restoring momentum in this segment is crucial for recharging the customer funnel and maintaining dominant market share.

The rise of SUV market share to nearly 55% reflects a permanent shift toward premium lifestyle choices among Indian buyers. Capturing this high-margin segment is critical to protecting long-term returns as the legacy small-car market matures.

Implementing Battery-as-a-Service and 60% assured buybacks directly addresses consumer concerns regarding high upfront costs and resale value. These aggressive financial measures are vital for securing early EV adopters while charging infrastructure matures.

Sona BLW Precision | Mid Cap | Auto Ancillary

Sona Comstar is a leading global mobility technology company specializing in designing, manufacturing, and supplying precision-forged components like bevel gears, differential case assemblies, and motors for electrified and non-electrified powertrains. It serves automotive and other industries with high-quality, mission-critical systems and bespoke solutions.

[Presentation]

Physical AI is reaching an inflection point driven by advances in hardware (sensors, actuators, AI chips), improved simulation capabilities, and real-time AI perception. At the same time, labor shortages and automation needs are accelerating adoption, pushing Physical AI from experimentation to real-world deployment.

Physical AI relies on a stack of motors & actuation, gearboxes, sensors, batteries, and onboard AI computing, all common across EVs and robotics. These components work together to enable movement, perception, power management, and real-time decision-making.

Sona Comstar is positioning itself as a motion and drivetrain enabler across multiple Physical AI applications, including EVs, drones, robots, and humanoids. The company is expanding through partnerships, product development, and showcasing capabilities (e.g., CES 2026).

The company has consistently evolved its strategy—from EV-focused expansion to adding sensors/software, entering railways, and now robotics. This reflects a stepwise transition from auto components to broader mobility and Physical AI ecosystems.

The Physical AI ecosystem spans OEMs/startups (Tesla, BYD, humanoid firms), Tier-1 suppliers (Bosch, Denso), and tech platforms (NVIDIA, Qualcomm). Value creation is distributed across hardware, software, and systems integration, with multiple players competing across layers.

India Nippon Electricals Ltd | Small Cap | Auto Ancillary

India Nippon Electricals Ltd is a leading manufacturer of electronic ignition systems and powertrain components for two-wheelers and three-wheelers. A joint venture with Japan’s Kokusan Denki, the company is actively expanding its portfolio into sensors and electric vehicle controllers.

[Presentation]

Domestic revenue concentration at 96% ties company performance strictly to Indian two-wheeler cycles and local policy shifts. This lack of geographic diversity limits valuation upside from global supply chain diversification.

Consistently outgrowing the industry average indicates increasing market share and deeper technical integration with major OEMs. Sustaining this performance requires high R&D intensity to maintain a competitive advantage in the evolving electronic components segment.

The company is positioning itself to capture high growth in the automotive sensor market through increased R&D in electronic solutions for both ICE and electric vehicles. Localization trends and ‘China Plus One’ strategies provide significant tailwinds for scaling production.

FMCG

Zydus Wellness | Small Cap | FMCG

Zydus Wellness Limited offers healthcare, nutrition, and cosmeceutical products to promote well-being. They focus on developing and distributing a wide range of health and wellness products under popular brands like Glucon-D, Complan, Sugar Free, Nycil, Everyuth, and Nutralite, aiming to help people achieve integrated well-being.

[Presentation]

Complan is rebuilding relevance through a core refresh, new user acquisition (toddlers), and adult nutrition expansion. Despite a modest 4.1% market share, the brand is repositioning with relaunches to tap evolving nutrition needs.

Everyuth continues to lead in high-growth niches like scrubs (48.5%) and peel-offs (76%), while scaling presence in overall facial cleansing (~7.9% share). Categories are expanding at 13–17% CAGR, indicating strong tailwinds in naturals-led skincare.

Glucon-D remains a dominant category leader (~59% share) in glucose powders, with steady category expansion (~6% growth). While growth moderated in FY25, leadership position remains intact.

Zydus Wellness has built a diversified portfolio of category leaders—#1 positions in glucose, sugar substitutes, scrubs, and peel-offs. Personal care (Everyuth) is emerging as a high-growth adjacency alongside core nutrition brands.

Food & Nutrition is driving growth with strong double-digit YTD growth (~49%), led by brands like RiteBite and Complan. In contrast, Personal Care remains weak, showing slight declines, indicating a near-term drag on overall performance.

Input costs remain volatile—milk, dextrose, and edible oils saw inflation spikes, while sucralose prices corrected sharply. This mixed cost environment has implications for margin recovery and pricing strategies.

Zydus is aligning with structural trends like low sugar, high protein, functional nutrition, and natural personal care. The strategy focuses on premiumization, portfolio expansion, and tapping health-conscious consumption across categories.

Shri Gang Industries & Allied Products | Nano Cap | FMCG

Shri Gang Industries and Allied Products Limited engages in the manufacture and sale of vanaspati, refined oils, and bakery shortenings. The company offers its products under the ‘Apna’ and ‘Mr. Baker’ brand names. The company markets its products primarily in the state of Uttar Pradesh in India.

[Presentation]

Shri Gang Industries has a long-term, exclusive contract manufacturing tie-up with Diageo (USL), anchoring its business with stable, high-volume demand. ~75% of capacity is dedicated to Diageo, with a fee-based model and minimum guarantees, driving predictable revenues and strong utilization.

UP is India’s largest and fastest-growing liquor market, with production capacity growing at ~15% CAGR and strong excise-led policy support. IMIL dominates (~65% share), but premiumization (IMFL + beer) is steadily rising, creating a multi-layer demand expansion opportunity.

The company benefits from a strategic location in India’s key maize and rice belt, ensuring reliable and cost-efficient feedstock access. Coupled with strong demand growth (~32% CAGR in premium segments), this creates a structural advantage in both input sourcing and end-market consumption.

Godfrey Phillips India Limited | Mid Cap | Tobacco Products

Godfrey Phillips India is a major tobacco manufacturer with a diversified portfolio spanning cigarettes, unmanufactured tobacco exports, and confectionery items. The company operates through flagship brands and an exclusive partnership with Philip Morris International to distribute Marlboro in India.

[Presentation]

Tobacco accounts for 99% of sales, concentrating regulatory and excise tax risks. This dependency makes cash flows vulnerable to policy changes despite the company’s strong pricing power.

Exports now contribute 23% of revenue, acting as a strategic hedge against domestic regulatory volatility. The segment leverages low production costs to build resilient, dollar-linked revenue streams.

Monthly cigarette volumes reached 2.1 billion, a massive structural scale-up from 775 million five years ago. This growth confirms successful brand penetration and a shift toward organized tobacco.

Metals

MOIL Limited | Small Cap | Metals

MOIL Limited, a Schedule ‘A’ Miniratna Category-I Company, is a leading producer of different grades of Manganese Ore in India. Their product range includes High Grade Ores, Medium grade ore, Blast furnace grade ore, and Dioxide for various industries. MOIL fulfills half of India’s dioxide ore requirement and has also ventured into renewable energy with wind farms in Madhya Pradesh.

[Presentation]

~95–96% of manganese demand is metallurgical (steel & alloys), with ferro and silico manganese forming the bulk of consumption. This makes the sector a direct proxy on steel cycle and infrastructure demand.

India’s manganese ore production is targeted to scale from ~12–18 lakh tonnes historically to 35 lakh tonnes by FY30, implying a strong ramp-up trajectory. This reflects capacity expansion and rising domestic demand visibility, likely driven by steel and alloy consumption.

India remains structurally import-dependent (~5.5 MT average imports) despite steady domestic production growth. MOIL dominates domestic supply (~45–53% share), but the gap between consumption and production highlights a persistent supply deficit.

Global manganese supply is highly concentrated, with South Africa (~46%) and Gabon (~19%) dominating production, while India contributes only ~5%. This concentration creates supply-side risks and pricing power cycles globally.

Manganese reserves are heavily concentrated in Odisha (~34%), Karnataka (~25%), and MP/Maharashtra (~12% each). MOIL has significantly expanded its reserve base, strengthening its strategic positioning in domestic supply.

Trading

Shiv Texchem | Nano Cap | Trading

Shiv Texchem Ltd. imports and distributes specialty hydrocarbon chemicals — including acetyls, aromatics, glycols, and ketones — sourced from over 60 global suppliers and supplied to more than 650 Indian customers across the paints, pharma, and polymer industries.

[Presentation]

The company is leveraged to structurally growing sectors—paints, packaging, agrochemicals, petrochemicals, and inks, all expected to see strong multi-year expansion. This creates sustained demand visibility for sourced chemicals.

India’s chemical sector is expected to see significant growth in imports (~9–11% CAGR), with a widening trade deficit. This structurally increases the role of import-focused sourcing intermediaries like Shiv Texchem.

Shiv Texchem operates across a wide basket of essential chemicals spanning inorganics, intermediates, monomers, and glycols, supplying critical inputs to pharma, agrochemicals, paints, and construction. Many of these inputs have high supply criticality, reinforcing the importance of reliable sourcing.

The portfolio extends into acetyls, alcohols, aromatics, and ketones, which are key building blocks for coatings, adhesives, plastics, and pharma. This positions the company at the center of multiple downstream industrial value chains.

Shiv Texchem bridges India’s supply gap by sourcing 43 key chemicals globally, including 12 critical raw materials, with India being a top importer in several. The model is built on global sourcing, logistics execution, and supply reliability.

For a global major like BASF, Shiv Texchem delivered specialized logistics and compliance-led sourcing, enabling safe handling of styrene. This led to premium pricing and higher margins, showcasing value-added capabilities beyond trading.

By leveraging market intelligence and timing strategies, Shiv Texchem helped GreenLam procure phenol at lower effective prices. This created cost advantages for the client while deepening long-term relationships and volumes.

During a supply shock in MMA, Shiv Texchem’s procurement strategy (staggered buying + price benchmarking) helped Berger avoid peak pricing. This resulted in cost savings and a 3–4x scale-up in business volumes.

Engineering & Capital Goods

Gala Precision Engineering | Micro Cap | Engineering & Capital Goods

Gala Precision Engineering Ltd. manufactures high-quality technical springs and high-tensile fasteners. It serves the renewable energy, mobility, and industrial sectors.

[Presentation]

SFS is the largest and fastest-growing segment, with India growing at ~18% CAGR vs ~6–7% globally. Growth is driven by renewables, infrastructure upgrades, and mining/construction demand, making it a key structural opportunity.

CSS is a mobility-heavy segment (~90%+ exposure) growing at ~9–10% CAGR in India. Demand is supported by auto components, rail capex, urbanization, and farm mechanization.

DSS is a stable, industrial-led segment (~6% CAGR) with strong linkage to manufacturing, infrastructure, and steel demand cycles. Mobility and renewables provide incremental growth levers.

SFS is structurally the largest opportunity—~100x the size of DSS globally and ~15x CSS domestically. This highlights a clear portfolio shift opportunity toward higher TAM segments.

GALA’s product portfolio spans renewables, industrials, and mobility, with SFS having the widest application coverage. This diversified exposure provides multi-cycle growth optionality.

The company operates across the value chain—from steel inputs to precision components (DSS, CSS, SFS)—serving critical applications in wind, infrastructure, heavy machinery, and autos. This enables deep integration with end-use industries.

GALA has built strong relationships across renewables (Vestas, GE), industrials (Schneider, L&T), and mobility (Schaeffler, Wabtec). This diversified client base supports revenue visibility and credibility across sectors.

Oriental Rail Infrastructure Limited | Small Cap | Engineering & Capital Goods

Oriental Rail Infrastructure manufactures rolling stock components, interiors, and freight wagons for Indian Railways and private logistics operators. The company is strategically transitioning into high-technology smart wagons and recurring-revenue leasing models to diversify its earnings profile.

[Presentation]

Moving into wagon leasing shifts the business model toward stable annuity revenues, reducing the impact of volatile manufacturing tender cycles. This transition provides predictable long-term cash flows and higher-margin growth.

A record ₹2.9 lakh crore railway budget for FY27 signals a multi-year commitment to modernization, providing long-term demand visibility. This structural growth supports more confident capacity expansion and capital allocation.

National Rail Plan targets for fleet doubling indicate a long-term structural upgrade cycle beyond immediate government spending. This strategy balances stable freight demand with higher margins from premium passenger interiors.

KEI Industries Limited | Mid Cap | Electrical Engineering & Capital Goods

KEI Industries Limited is a leading manufacturer of wires and cables, offering a diverse product range from EHV to LT cables, house wires, and stainless steel wire. The company is forward-integrated into EPC services and has a strong presence in both domestic and international markets.

[Presentation]

KEI’s retail sales are growing significantly, now accounting for over 50% of total sales. This shift reflects a strategic focus on direct consumer engagement, which could lead to higher margins and more predictable demand.

KEI Wires & Cables is poised to benefit from robust industry growth, driven by power transmission and building wires, which account for half the market. Government initiatives and rising demand from construction and renewable energy sectors ensure strong long-term prospects.

India’s cables and wires market is set for significant growth, aiming to reduce import reliance and boost domestic production. Focus on high-demand segments like power cables and building wires, along with export expansion, signals a strategic shift towards self-sufficiency and global competitiveness.

The growing demand for cables and wires is fueled by infrastructure development, including data centers, cloud computing, and digital transformation. Government investments in renewable energy and power transmission ensure a durable demand environment for the industry.

KEI Wires & Cables is strategically aligned with the surge in renewable energy and EV adoption, which drive substantial demand for cables and wires. The company’s focus on energy storage and transmission infrastructure positions it well for sustained growth and higher margins.