On Chatter, we curate some of the most insightful comments from the earnings calls of Indian companies. However, a lot of context still gets left out. So we are experimenting with a new segment under Chatter called ‘Plotlines’.
Most financial analysis focuses on quarterly results and near-term guidance changes. Plotlines takes a different approach. We analyze executive commentary from earnings calls and investor presentations to identify long-term structural shifts that will shape industries over the coming years. Rather than chasing headline news, we look for strategic pivots, evolving competitive dynamics, and fundamental changes in how companies allocate capital.
Each week, we highlight the most significant "plotlines" from recent corporate communications—the unscripted moments and strategic insights that reveal where businesses are heading, not just where they've been. We focus on comments that signal permanent changes in market structure, technology adoption, or business models, and provide specific metrics to track whether these trends are materializing as expected.
The earnings calls from India's leading companies this quarter revealed something more profound than quarterly numbers. They exposed fundamental business model transformations happening beneath the surface. From QSR chains abandoning dine-in heritage to pharma giants pivoting entire R&D strategies, management teams are openly acknowledging that their foundational assumptions about markets, customers, and competition no longer hold.
What makes these shifts particularly significant is their permanence. These aren't tactical adjustments or pandemic hangovers. They represent irreversible changes in how value is created and captured. The companies recognizing these shifts first are positioning for sustained competitive advantages, while those clinging to legacy models face existential challenges.
Since this is an experiment, we’d love your feedback. Tell us if there’s anything we missed—something we should add, change, or even remove completely. You can also let us know how you feel about the format, and whether it needs any adjustments.
The Great Reallocation
India's business landscape is witnessing massive capital, operational, and strategic reallocation as companies abandon what worked yesterday for what will work tomorrow.
Devyani International: The Dine-In Death Spiral
The Signal: India's largest QSR franchisee has slashed KFC store formats by over 50% and completely repositioned Pizza Hut from dine-in to delivery-focused operations.
Key Quote: "We have kind of over a period of time, moved from a dine-in-centric brand to a delivery brand. We are also moving in that direction. We need to continue to optimize the formats for the dine-in channel. And as you know, over the last few years, we have reduced the store format sizes. So, KFC format used to be 3,000 square feet. We are down to about 1,400 to kind of catch up with the delivery trends and the lower dine-in. Similarly, for Pizza Hut also, we have moved away from a dine-in-first brand to a delivery focused format. And this needs to be continuously optimized. At the same time, we also need to be cognizant of the fact that there is a category of consumers who prefer a good dine-in experience." — Manish Dawar, CFO
Why It Matters: Devyani is admitting the Western QSR model doesn't work in India. Traffic jams, tiny apartments, and food delivery apps have killed the old formula. The company had to cut store sizes by more than half just to survive. Smaller stores cost less but need way more customers per square foot to make money. This puts Devyani ahead of competitors still building huge stores that nobody visits anymore. The move should give them a real cost advantage when expanding to smaller cities where delivery makes even more sense.
Watch For:
Store sizes dropping below 1,400 sq ft for new locations
Dine-in sales falling under 40% of total sales within 12 months
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/19ad61f8-1489-4693-b3ce-b9fb4696fe3f.pdf
Devyani International: Tier-2 City Gold Rush
The Signal: Expanding to 280-290 cities while aggregators serve 800+, revealing massive white space opportunity in smaller cities.
Key Quote: "Coming to your point on the brands being urban-centric, if you look at the overall QSR market, Jubilant is there in 400-plus cities. We are also in about 280-290 cities. If you look at the penetration of the food aggregators, they are currently in more than 800 cities. So, therefore, we are straddling much beyond what are historically understood as urban centers. The growth opportunity lies in the Tier-2 segment, because the awareness and the aspiration is there; but the income levels need to go up further. We have started to have a presence beyond the urban centers. That's how we managed to cover almost about close to 280 to 290 cities." — Manish Dawar, CFO
Why It Matters: Devyani has quietly built presence in 300 cities while food delivery apps cover 800. That's 500 cities with delivery infrastructure but no major QSR chains. People in these places know KFC and Pizza Hut from TV and want them, but they need different prices and products. Success here could unlock thousands of new stores before competitors figure out the smaller city playbook. The challenge is that tier-2 expansion requires fundamental business model adaptation for different income profiles, taste preferences, and consumption occasions.
Watch For:
Store count in sub-1 million population cities growing 25%+ annually
Average transaction values in tier-2 stores reaching 80% of metro levels within 18 months
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/19ad61f8-1489-4693-b3ce-b9fb4696fe3f.pdf
Bajaj Finance: The MSME Market Reality Check
The Signal: The business loan market has contracted from ₹11,000 crores to ₹9,500-10,000 crores after unsustainable 4x expansion from pre-COVID levels.
Key Quote: "We principally track 17 key industries in MSME, out of which 13 that we are seeing are exhibiting signs of slowdown, and 3, actually. So in a way, it's all 17. But so from a longer-term standpoint, it will give lessons to everybody. Some lessons we'll also learn in the process. But I must make a point that the market is not that large, especially for business loans to grow from pre-COVID, market used to be INR 2.5 crores - 3,000 crores, has grown to INR 11,000 crores. Right now, it's at INR 9.5 crores – INR 1,000 crores. So it's contracting." — Rajeev Jain, Managing Director
Why It Matters: The business loan market grew 4x in a few years then crashed 15%. That's not normal growth, that's a bubble. With 16 out of 17 industries they track in trouble, small businesses are broke and banks won't lend to them. This forces everyone to completely rethink who gets loans and at what price. The companies that stayed conservative during the boom now have huge advantages. The structural adjustment forces all players to fundamentally reassess risk pricing, underwriting standards, and target segments.
Watch For:
Business loan interest rates jumping 100+ basis points across the industry
Monthly loan disbursements staying under ₹7,000 crores for multiple quarters
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/6594e53b-4085-487c-bf57-005b291a8237.pdf
UltraTech: Infrastructure Mega-Projects Drive Cement Demand
The Signal: Massive infrastructure projects like Vadhavan port will drive sustained cement demand through direct consumption and secondary economic development effects.
Key Quote: "And once the infrastructure growth comes, the big incentive is all around the development of newer town cities, social infrastructure, commercial spaces, etcetera, which will get developed. Let me delve into one project example, Vadhavan port. It's 300 million ton cargo handling capacity. Do you know what is the peak cargo handling by JNPT, it maybe less than 100 million tons. Somewhere around that. It's a huge project. Whilst it consumes cement, but the ancillary industry growth that takes place, the employment opportunities, the increase in housing income that takes place opens up the floodgates of growth for companies like us. And there are going to be several such projects in the country. I think we will be busy producing and selling cement." — Atul Daga, CFO
Why It Matters: India is building infrastructure at a scale it's never attempted before. One port project alone will be 3x bigger than the country's current largest port. These projects don't just use cement during construction. They create entire new economic zones with factories, offices, and housing that need cement for years. UltraTech sees this creating permanent demand rather than just a construction boom. The multiplier effects from employment, housing, and industrial development could sustain cement demand for decades.
Watch For:
Number of projects over ₹10,000 crores announced annually
Secondary industrial development around major infrastructure hubs
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/562742ca-eb96-4dfb-83eb-ea414a04f1bf.pdf
Platform Wars Intensify
Technology adoption has crossed the chasm from experimental to operational core, reshaping entire industries around new competitive moats.
Tata Motors: The Confidence Revolution
The Signal: Lifetime battery warranties triggered 55% booking surge for Nexon.ev, fundamentally shifting EV purchase psychology from anxiety-driven to confidence-based decision making.
Key Quote: "We also saw traction for the rest of our portfolios in EV particularly towards the end of the quarter especially for Nexon.ev. We were really surprised that once we offered the lifetime warranty for both Nexon and Curvv.ev that there was a sharp increase in retail as well as bookings in July 2025. Nexon.ev particularly saw strong consumer interest especially after the announcement of lifetime warranty and booking went up in July by 55% over quarter one. And Harrier EV we have had a blockbuster launch. I talked about this. We achieved the highest ever retail also in July 25, it was 40% more than quarter one levels." — Shailesh Chandra, MD
Why It Matters: Tata figured out the real problem with EVs isn't range anxiety, it's battery fear. Nobody wants to buy a ₹15 lakh car that might need a ₹5 lakh battery replacement in five years. The lifetime warranty eliminates that fear completely. Now buying an EV feels safer than buying a petrol car. Other companies can't match this unless they're 100% confident their batteries won't fail, which most aren't. This forces Tata to achieve battery technology confidence levels that competitors cannot match while managing warranty economics.
Watch For:
Tata's EV market share hitting 50%+ by Q2 FY26
Competitors trying to copy the lifetime warranty model
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/2a91a004-4cbd-440e-93d3-2ca8967ff37b.pdf
SBI Cards: Beyond Plastic
The Signal: Credit cards are transforming from physical payment instruments into digital financial tools integrated within mobile ecosystems, with UPI-on-Credit usage growing 20% quarter-over-quarter.
Key Quote: "India's payments ecosystem is undergoing a transformation—powered by the rapid scaling of digital infrastructure, real-time rails like UPI, and now RuPay credit card on UPI. The convergence of credit and digital is creating a new model: one where credit cards are no longer just plastic instruments, but digital financial tools integrated into mobile apps. Credit cards today are serving more nuanced roles—powering high-ticket, EMI-led, and reward-driven spending for an increasingly aspirational and digitally savvy customers." — Salila Pande, CEO
Why It Matters: Credit cards are becoming invisible. People don't want to carry plastic anymore, they want credit built into their payment apps. The companies that figure out how to embed credit into everyday mobile payments win. Traditional card networks become less relevant when everything runs through QR codes. Customer acquisition shifts from physical card delivery to digital onboarding, while data from embedded transactions provides richer behavioral insights than standalone card usage ever could. But execution speed versus fintech disruptors remains critical.
Watch For:
Digital-only card launches
Partnerships with major mobile payment platforms
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/dea9e020-f677-4e54-b6c3-137b73e50981.pdf
SBI Cards: Account Aggregator Revolution
The Signal: Consent-based financial data access through Account Aggregator networks is becoming the primary method for credit assessment, replacing traditional credit scores.
Key Quote: "For example, we are now focusing on at least getting an account aggregator access from most of our customers. Now this is not going to help us today, it's going to help us even in future because if we get consent from the customer, we will be able to access the customer account even two years, three years down the line and help in portfolio management. So, some of those long-term thinking processes are also being put into acquisition today. Account aggregator is a good method of assessment because we are able to see the cash flows over a period of time, and that gives us greater confidence in underwriting. So, we started leveraging it two years back, and we have increased the proportion of sourcing going through the account aggregated channels." — Girish Budhiraja, Chief Sales Officer & Nandini Malhotra, Chief Credit Officer
Why It Matters: Credit scores are becoming obsolete. Instead of guessing if someone can pay based on their past, banks can see their actual cash flow in real time. This is way better for making loan decisions but only works if customers agree to share their bank data. SBI started doing this two years ago while competitors are still using old credit bureau data, giving them a huge advantage in picking good customers. The consent-based refresh capability means continuous portfolio monitoring throughout the relationship lifecycle.
Watch For:
Percentage of new customers evaluated using Account Aggregator data
Default rate differences between AA-sourced vs traditional customers
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/dea9e020-f677-4e54-b6c3-137b73e50981.pdf
SBI Cards: Portfolio Stress Recognition
The Signal: Customer over-leverage is becoming the dominant risk factor, requiring fundamental changes in acquisition and portfolio management strategies.
Key Quote: "For the full year, I would not like to give guidance at this point because there are certain external factors as well, especially the leverage that we are seeing. Although in terms of the early delinquencies and in terms of the new onboarding that we are doing, we are being cautious. But we are also seeing that there are customers who have been with us for many, many years, who also get stressed. And that happens due to some lifetime events happening, which we are witnessing, and we have that in our portfolio." — Salila Pande, CEO
Why It Matters: Even customers who paid perfectly for years are starting to struggle. That's not normal credit risk, that's systemic overleveraging. People have too many loans and credit cards and can't handle them all. This means traditional ways of picking customers don't work anymore. Everyone looks risky when the whole system has too much debt. This drives strategic shift toward quality over quantity in new acquisitions and increased focus on existing customer portfolio optimization.
Watch For:
Industry credit growth slowing down significantly
Regulatory interventions around consumer leverage ratios
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/dea9e020-f677-4e54-b6c3-137b73e50981.pdf
Ather: India's EV Premiumization Wave
The Signal: The Indian two-wheeler market is undergoing permanent premiumization as rising incomes drive upgrade purchases rather than first-time acquisitions.
Key Quote: "We started Ather about 12 years back, and there are two big bets that we have taken in this business that have come to really represent Ather over the last decade. The first bet has been on the premiumization of our industry and the bet on the upgrading Indian buyer. We believe that the two-wheeler industry, particularly the scooter industry, is going through a fantastic phase of premiumization and will continue to do so as per capita incomes go up. Majority of households already have a scooter or a bike and are buying one increasingly that is of an upgrade to them and their families." — Tarun Mehta, CEO
Why It Matters: India has crossed a critical point where most people already own a scooter. Now they're buying better ones instead of just any scooter. This is a massive shift from a first-purchase market to an upgrade market. Premium brands like Ather should make way more money as people pay up for features and quality instead of just buying the cheapest option. This mirrors mature market evolution patterns and indicates India's consumer base is fundamentally maturing.
Watch For:
Industry average selling prices growing faster than inflation for 8+ quarters
Premium segment (>₹100k) market share hitting 25%+ by FY27
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/1192fed1-60d2-45ba-bd22-b4d1d2e446f5.pdf
Ather: Supply Chain Nationalism
The Signal: Geopolitical tensions are forcing EV manufacturers to fundamentally restructure supply chains around resilience rather than efficiency.
Key Quote: "I think this is a little bit of a high-level response. I believe we are now in an era where the number one priority for the supply chain has got to be derisking and hedging. We want to now ensure that our supply chains have alternates at a country level, alternates definitely at a supplier level. And I'm saying Tier 1, Tier 2 of suppliers also. So, we focus on that in a big way even in the past. In our prospectus, we had called out how expanding the number of suppliers has been a very big strategic imperative at Ather in the past, with the vast majority of our bill of material being dual or even triple sourced." — Tarun Mehta, CEO
Why It Matters: China's rare earth export restrictions just ended the era of global supply chains optimized purely for cost. Now companies have to build multiple backup suppliers in different countries, which costs more but prevents catastrophic shutdowns. The companies that build robust supply chains now will have huge advantages when the next trade war hits. This represents the end of "efficiency-first" globalization and beginning of "resilience-first" supply chain design.
Watch For:
Ather's supplier count growing 25%+ annually
India-based component sourcing rising to 70%+ of total materials
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/1192fed1-60d2-45ba-bd22-b4d1d2e446f5.pdf
Ather: EV Mainstream Adoption Inflection
The Signal: Indian EV adoption is transitioning from early adopters to mainstream customers, requiring fundamental shifts in marketing strategy and value proposition communication.
Key Quote: "And for these customers, I believe the key focus has to now move on to really giving them assurance, really giving them comfort that electric is a very good, safe choice. I believe that now that EV penetration is starting to get in the 20% range in scooters, we've gone beyond early adopters and even maybe early majority, sorry innovations and early adopters. I think we are now getting into the early majority crowd, which is the 20% to 50%, 20% to 60% kind of market opportunity." — Tarun Mehta, CEO
Why It Matters: EVs have hit the 20% tipping point where they go from niche to mainstream. The next buyers aren't tech enthusiasts who want the latest gadget, they're regular people who want something reliable. This completely changes how you market and sell EVs. Instead of talking about innovation, you need to prove the thing actually works and won't break down. Companies that adapt messaging and service infrastructure to address mainstream concerns will capture the massive 20-60% market segment.
Watch For:
EV market share accelerating above linear growth, hitting 35%+ by FY27
Marketing spend shifting from performance features to reliability messaging
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/1192fed1-60d2-45ba-bd22-b4d1d2e446f5.pdf
The Wellness Revolution
Consumer consciousness around health, natural products, and wellness is creating permanent shifts in product positioning and portfolio strategies.
Radico Khaitan: The Vodka Opportunity
The Signal: India's vodka consumption sits at 3.5-4% of spirits market versus 28% globally, with Radico controlling 60% market share as the category expands.
Key Quote: "And what is happening, like even if you see, we control 60% of the vodka market in the country. And globally, vodka is 28%. Whereas in India, it will be only about 3.5% to 4%. So, we are seeing a gradual shift happening to vodka, where Radico is in the biggest advantage space. And vodka always gives you a higher margin than any other product. So, I think if God willing everything goes well, and we do not experience any major [raw material] shortages which happened last to last year, we feel that 125 to 150 basis points is possible." — Abhishek Khaitan, Managing Director
Why It Matters: India drinks way less vodka than the rest of the world, creating massive room for growth. Vodka makes up 28% of global spirits but only 4% in India. As Indian consumers get richer and more westernized, they'll likely drink more vodka. Radico owns 60% of the tiny Indian vodka market and makes better margins on vodka than other spirits. If vodka grows to even half the global average, Radico's business transforms completely. Unlike whisky, which faces cultural and regional preferences, vodka's versatility appeals to younger, urban demographics.
Watch For:
Vodka's share of Indian spirits hitting 6-7% within two years
Magic Moments brand crossing 10 million cases annually
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/449c88b5-7f8a-44ac-9055-344898a6426c.pdf
Radico Khaitan: UK-India Trade Deal Game Changer
The Signal: Trade liberalization will fundamentally reshape India's premium whisky economics, creating sustainable cost advantages for importers.
Key Quote: "Before we begin discussions on Q1 FY26 results, I would like to provide a brief update on the UK-India FTA. The negotiations between the two governments have been finalized and a Comprehensive Economic and Trade Agreement has been signed. In line with expectations, duty on bulk scotch has been reduced from 150% to 75%. We have estimated our Scotch requirements valued at over Rs. 250 crores in FY26 and we expect significant cost advantages from this development. Thereafter, the duty will be reduced in nine equal installments to settle at 40% in the 10th year. In three years, we expect the import of scotch of Radico to cross Rs. 400 crores." — Abhishek Khaitan, Managing Director
Why It Matters: Import duties on scotch whisky just got cut in half and will keep dropping for 10 years. This makes imported spirits way cheaper and changes the whole premium alcohol market in India. Radico can now price their scotch-based products much more competitively against domestic brands. They're planning to import ₹400 crores of scotch within three years, turning them into a major spirits importer. This creates permanent competitive moat that will reshape pricing dynamics across the premium whisky segment.
Watch For:
Gross margins on scotch brands expanding 300-400 basis points within two years
Royal Ranthambore hitting 2+ million cases annually with better pricing
Radico Khaitan: Margin Expansion Strategy
The Signal: Premium brand portfolio is achieving escape velocity, driving structural margin expansion that exceeds industry benchmarks.
Key Quote: "If you see, last year our margins were 13.8%, for the quarter and now, it is 15.3%. So, I think for the next three years, we expect, unless something very drastically happens on the commodity side, a margin expansion of 125 to 150 basis points year-on-year for the next three years. So, we come to the late teens. Yes, that is correct. Because our premium brands are doing exceptionally well. Plus, you have seen with the volume growth and with everything, the operating leverage comes into play because you do not need to increase so much of manpower, other fixed costs." — Abhishek Khaitan, Managing Director
Why It Matters: Radico just upgraded their margin expansion target and expects to hit "late teens" EBITDA margins within three years. That would make them one of the most profitable consumer goods companies in India. This isn't happening by accident. Their premium brands are growing fast, the vodka business has better margins, and the scotch duty cuts improve profitability on imported blends. Multiple vectors are converging simultaneously to create compounding benefits.
Watch For:
EBITDA margins hitting 17%+ within two years
Premium products exceeding 20% of total IMFL revenue
Dabur: The Herbal Acceleration
The Signal: Herbal segment growth outpaced non-herbal by 440 basis points, reinforcing permanent consumer preference shift toward natural products.
Key Quote: "The quarter witnessed sequential improvement in domestic and international markets, despite challenges posed by unseasonal rainfall and geopolitical headwinds. The Toothpaste portfolio delivered a growth of 7.3% led by a strong growth in the Red franchise. The Herbal segment growth accelerated and outpaced the non-herbal segment by 440 bps, reinforcing the growing consumer preference for Ayurvedic, Herbal, and Natural Oral Care offerings. In line with the above trend, we outperformed the Toothpaste category growth, leading to sustained market share gains." — Mohit Malhotra, CEO
Why It Matters: People are permanently switching to herbal toothpaste and rejecting chemical ingredients. The herbal segment is growing 4.4% faster than regular toothpaste, and this gap is widening. Dabur has a 150-year head start in herbal products that Colgate and other multinationals can't easily copy. This trend goes way beyond toothpaste to skincare, healthcare, and other categories where natural positioning creates real pricing power. The shift transcends oral care with implications across Dabur's entire portfolio.
Watch For:
Herbal segment maintaining 300+ basis points growth premium for four straight quarters
Dabur's herbal toothpaste business hitting ₹200+ crores within 18 months
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/2db33836-8d86-4a06-8eb9-da569e865fe7.pdf
Dabur: Rural Renaissance
The Signal: Rural markets are experiencing a structural transformation in purchasing power and consumption patterns, permanently altering India's demand geography.
Key Quote: "The quarter witnessed sequential improvement in domestic and international markets, despite challenges posed by unseasonal rainfall and geopolitical headwinds. In India, rural markets continue to outperform urban for the fifth consecutive quarter, sustaining its strong growth momentum. Even the urban markets witnessed sequential recovery vis-a-vis last quarter." — Mohit Malhotra, CEO
Why It Matters: Rural India is outgrowing cities for five straight quarters, flipping the traditional wisdom that urban markets drive FMCG growth. This suggests rural incomes are rising faster than expected and consumption patterns are changing permanently. Dabur's rural distribution network and natural product positioning give them huge advantages in these markets where people prefer traditional remedies and have different price points. The sustained momentum despite macroeconomic challenges suggests deep-rooted drivers beyond temporary fiscal stimulus.
Watch For:
Rural growth beating urban for eight consecutive quarters by Q2 FY27
Rural contribution to total Dabur revenue rising to 45%+ within three years
Dabur: Wellness M&A Transformation
The Signal: Dabur is fundamentally repositioning from a traditional FMCG company to a premium wellness ecosystem through strategic acquisitions.
Key Quote: "All the same, I think whatever gaps in the portfolio are that we want to plug through M&A, and we are continuously scouting for targets for M&A. So, we are basically looking at wellness. Wellness foods, wellness health, that kind of M&A is what we are intending to look at. But M&A is very chance based, depending upon what is available. But definitely premium, which is margin accretive to our base business, so that it improves our margins going forward. We understand for a couple of years there may be investment, but there should be a path to profitability." — Mohit Malhotra, CEO
Why It Matters: Dabur wants to buy wellness and health food companies to transform from an Ayurvedic heritage brand into a modern wellness platform. They're specifically targeting "margin accretive" premium businesses that can boost profitability. This could completely change their business mix over 3-5 years, moving them upmarket into higher-margin wellness categories. The strategy acknowledges that organic growth alone may be insufficient to capture the full wellness opportunity.
Watch For:
At least one major wellness acquisition (₹200+ crores) within 12 months
Premium wellness products contributing 15%+ of revenue within 36 months
HUL: Beauty & Wellbeing Ecosystem Strategy
The Signal: HUL is transforming from a traditional personal care company into a comprehensive beauty and wellness ecosystem through acquisitions and digital-native brand development.
Key Quote: "With the completion of Minimalist acquisition and acceleration in performance of OZiva, we have now further added an annualized Rs. 1,000 crore portfolio in high growth demand spaces. This Rs. 3,000 crore portfolio, which is digital first, organized trade indexed is growing at more than 25%. OZiva, as you mentioned, is almost three times the business now what we had a year ago. The innovations that we have done in the business has driven the growth that we have seen." — Ritesh Tiwari, CFO
Why It Matters: HUL has built a ₹3,000 crore digital-first beauty and wellness business growing at 25%+ annually. OZiva alone has tripled in size in one year. This isn't about traditional FMCG anymore, it's about becoming a wellness lifestyle platform. The business model is completely different, optimized for digital marketing, premium pricing, and direct consumer engagement rather than mass market distribution. The ecosystem approach combines traditional brands with acquisitions and global imports for comprehensive coverage.
Watch For:
Beauty & Wellbeing contributing 25%+ of total HUL revenue within three years
At least two more strategic wellness acquisitions by FY27
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/a09d1d2b-2f6b-4b73-a607-6f61164694af.pdf
Innovation Waves
R&D strategies and product development are being fundamentally restructured around new therapeutic opportunities and market realities.
Dr. Reddy's: India Strategy Pivot
The Signal: Fundamental shift from branded generics to innovative product licensing as primary growth engine in India.
Key Quote: "But what can help us sustain double digit, or even outperforming the market? And if you could also give us some data points around what our field force is? So, Shyam, we decided, and I know you are fully aware of it and appreciate it, that we will not focus on branded generics. At the time, we believe that the growth in India will come primarily by introducing innovative products which are better than the standard of care that is used today in the market. And the growth that you see now, it is a part of that. So, we are launching innovative products, in addition to the branded generics." — Erez Israeli, CEO
Why It Matters: Dr. Reddy's is abandoning the low-margin generic drug game in India and betting everything on licensing innovative drugs from global pharma companies. Instead of competing on price, they want to offer genuinely better treatments that doctors and patients will pay premiums for. This completely changes their business model from manufacturing scale to product curation and clinical superiority. The strategy assumes Indian physicians and patients will pay premiums for clinical benefits, which remains unproven at scale.
Watch For:
Innovative product launches exceeding 30% of total new launches
India business EBITDA margins expanding beyond the historical 15-20% range
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/2ee525c4-6c8e-421d-80dd-83d134febfad.pdf
Dr. Reddy's: GLP-1 Decade Vision
The Signal: Views GLP-1s not as a 2-year opportunity but as a decade-long platform for building a differentiated diabetes/obesity franchise.
Key Quote: "Just broadly, you think this is like, sort of, a 2-year opportunity, one year, opportunity, or much more than that? First of all, I see that as many, many years of opportunity. Actually, we are entering a decade of GLP-1 products. Obviously, it's going to change and evolve. And at the beginning it will be more like to start to be in the market, to try to get in those markets that will be first, or among the first; for certain premium selling our capacity. We believe that this segment will grow significantly. We will add capacity, there will be more volume, obviously, lower prices. And we are going to see brands - branded play, whether consumer care play like in the obesity, or you know, differentiated devices and stuff like that. So, actually, just the beginning of the journey. More products will be added by the way. The full portfolio of GLP-1 for the company is 26 products." — Erez Israeli, CEO
Why It Matters: Most companies see GLP-1 drugs like Ozempic as a short-term generic opportunity. Dr. Reddy's sees it as a 10-year platform spanning 26 different products, device innovation, and consumer brands. They're not just making copycat drugs, they're building an entire diabetes and obesity ecosystem. This could become as foundational to chronic disease treatment as cholesterol drugs were for heart disease. The vision encompasses drug manufacturing, device differentiation, consumer health applications, and brand development.
Watch For:
GLP-1 revenue exceeding 20% of total company revenue by FY28
Successful launches of 10+ GLP-1 products beyond Semaglutide by FY30
Torrent Pharma: Semaglutide Global Positioning
The Signal: Positioning to capture significant market share in the generics wave of GLP-1 diabetes/obesity drugs across key emerging markets.
Key Quote: "Saion Mukherjee: Got it. And also, Sanjay, on the Semaglutide launch in Brazil, so, what is your expectation at this point in terms of timing for approval?
So, Semaglutide is two products, right? Ozempic and Wegovy, right? Ozempic has been in the market for a while in Brazil. But since Wegovy launched in middle of 2024, Ozempic has been in a decline... And Wegovy is currently running at $150 million a quarter. So, in the space of one year, it has reached a run rate of $150 million... So, we are working on both the products without giving you more specificities. And we are trying to be in the wave one of launches." — Sanjay Gupta, Executive Director International
Why It Matters: Wegovy hit $600 million annual sales in Brazil alone within one year, proving massive demand for obesity drugs in emerging markets. Torrent is conducting Phase III trials for oral versions while partnering for injectable versions across both Brazil and India. This dual-market strategy targeting 1.7 billion people could capture meaningful share of the post-patent genericization wave. The cross-geography consistency suggests coordinated global strategy rather than opportunistic regional plays.
Watch For:
Phase III trial completion milestones for oral Semaglutide
Combined Brazil-India regulatory filing announcements within 6-9 months
Source: https://www.torrentpharma.com/pdf/investors/Q1-FY25-26_Earnings-Call-Transcript.pdf
Market Structure Evolution
Traditional industry boundaries and value chains are being redrawn as companies adapt to new competitive realities.
Tata Elxsi: OEM Software Takeover
The Signal: Automotive OEMs are fundamentally restructuring the value chain by taking direct control of software development, permanently displacing traditional Tier 1 suppliers.
Key Quote: "Debashish, one of the reasons Tata Elxsi used to report a very strong set of margins because they are focused on offshore centric deals, but over the last 2 to 3 quarters, what we have seen is a consistent fall in margins. So, is it like we have shifted our focus more into on-site focused deals. Almost 72% to 75% of our revenues now come from OEM, which is the passenger car makers. The Tier 1s have sort of reduced which is in line with what we see in the industry, moving forward... OEMs are becoming more like Tier 1, like OEMs are really wanting to own software." — Manoj Raghavan, MD & CEO
Why It Matters: Car companies have figured out that software is too important to outsource. Tata Elxsi's revenue mix shifted from 60% to 75% direct OEM work in just a few quarters because car companies are bypassing traditional parts suppliers and taking control of software development. This completely reshapes the auto industry value chain and kills the traditional system integrator model. In an era of software-defined vehicles, controlling the software stack is essential for competitive advantage, customer experience, and margin capture.
Watch For:
Tier 1 supplier R&D spending falling below 5% of revenue
OEM software engineering headcount growing 20%+ annually
Tata Elxsi: Media's Structural Decline
The Signal: The media and communications industry has entered a permanent structural decline following an unsustainable COVID boom.
Key Quote: "And what needs to change for this segment to really revive in terms of growth? I know that you're expecting growth to come back in Q2. But really, where do you see the industry going in the medium-term? During COVID, this industry grew very rapidly. But after COVID, all of a sudden, you see that most operators, whether it's media services operators or telecom operators globally have not been able to add net new subscribers. Subscriber numbers are actually coming down, the ARPUs are coming down. So, there's a little bit of an issue structurally in this industry." — Manoj Raghavan, MD & CEO
Why It Matters: The media industry is in permanent decline, not a temporary slump. Subscriber numbers and revenue per user are both falling because the COVID streaming boom created artificial demand that's now reversing. Companies are splitting their digital and legacy businesses into separate entities and focusing on "doing more with less" instead of growth. This cuts through typical cyclical explanations to identify genuine structural break in the media industry's growth model.
Watch For:
Global media services ARPU declining 5%+ annually for three consecutive quarters
Industry consolidation deals exceeding new expansion investments by 3:1
Tata Elxsi: Tariff-Driven R&D Disruption
The Signal: Trade policy uncertainty and tariff regimes are forcing multinational companies to fundamentally restructure their R&D investment patterns.
Key Quote: "And the second question is on healthcare. Can you give more color on the two client specific issues? Is this cancellation of projects? Or was something ramped down, which should come back in the second half? Our Healthcare & Life Sciences segment declined 6.7% quarter-on-quarter in constant currency primarily affected by tariff-related impact on medical devices with two key customers in the U.S., which is the primary market for this vertical. This has impacted R&D and discretionary spend in the short term. However, we expect that to get started in the coming quarters... some of the new projects that we are expecting to ramp up in the quarter, that was put on pause primarily because of lack of clarity, given all the uncertainties in their own business." — Manoj Raghavan, MD & CEO
Why It Matters: Trade wars aren't just affecting manufacturing, they're disrupting R&D spending and new product development. Companies are pausing innovation projects because they don't know where to build products or how to price them. This breaks the assumption that R&D networks would remain globally integrated regardless of trade policy. The impact spans from medical devices to automotive, suggesting broad-based shift rather than sector-specific challenges.
Watch For:
Corporate R&D spending shifting toward "nearshoring-compatible" projects
R&D service contracts including geopolitical risk clauses
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/cb73cece-f44a-4dba-a33e-148184e21f00.pdf
Tata Elxsi: AI Integration Reality Check
The Signal: Engineering services face unique adoption barriers that limit AI's transformative impact compared to other industries.
Key Quote: "So actually, what I want to know is what is the impact of this AI on your head count? In other words, if you were using one head count earlier, has it brought down the number to 0.9 or 0.8, what is the number that you want to see? But unlike IT or the BPO or some other industries, the impact of AI is not going to be very dramatic as we speak, right? There are a lot of legal issues, customers are talking of open-ended liabilities. There are a number of legal issues to be sorted off before you can see uptick of usage of AI in the engineering today... Yes, for certain tasks, it is possible. For a certain type of projects, it is possible. But it is not generic for all projects." — Manoj Raghavan, MD & CEO
Why It Matters: Everyone assumes AI will transform every industry the same way, but engineering services are different. When AI makes a mistake in software code, you fix it. When AI makes a mistake in bridge design, people die. Legal liability and safety requirements mean engineering will adopt AI much slower and more carefully than other industries. Unlike software development or business processes where AI can operate in controlled environments, engineering involves physical systems and complex liability structures.
Watch For:
Engineering services companies reporting AI-driven revenue expansion rather than cost reduction
Development of industry-specific AI liability insurance products
Infosys: Europe as the New Growth Engine
The Signal: Early investment in Europe is creating sustainable competitive advantage as the region emerges as a major outsourcing market.
Key Quote: "On a year-on-year basis, Europe grew 12.3%, which is over 3x the company average. We are one of the first companies a few years back to call out Europe as an opportunity. We have made, on back of that hypothesis, investments in Europe. And that has helped us win some of the very, very large and mega deals in Europe. There are consolidation deals that we have won as well in Europe. So that has helped. And over a period of time, Europe is also opening up from outsourcing perspective." — Jayesh Sanghrajka, CFO
Why It Matters: Infosys made a contrarian bet on Europe when nobody thought Europeans would outsource IT work. Now European companies are finally embracing outsourcing and Infosys is ahead of the competition. Europe grew 12.3% versus 3% company average, and this is probably just the beginning as European enterprises catch up to American outsourcing adoption. The early positioning has secured large deals and established relationships before competition intensified.
Watch For:
Europe revenue growth consistently beating company average by 50%+
European deals contributing 25%+ of quarterly large deal wins
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/10c91fa1-f133-476d-ada3-0143acdd9846.pdf
Infosys: AI Productivity Paradox
The Signal: AI-driven productivity gains are fundamentally changing client expectations around cost structures, creating permanent shift where discretionary spending must be self-funded through operational efficiencies.
Key Quote: "Enhanced interest in AI is resulting in budget reallocation with discretionary spend expected to be self-funded through AI-led productivity benefits. We are seeing between 5% and 15% through AI programs where we are working with clients, where typically there are disparate systems. Typically all productivity benefits, a part of that is shared with clients and a part of that is shared with us." — Salil Parekh, CEO
Why It Matters: The old model of IT services growth through hiring more people is dead. Clients now expect 5-15% productivity improvements from AI and want to use those savings to fund new projects rather than pay more money. This creates deflationary pressure on traditional services while opening new opportunities for companies that can actually deliver efficiency gains. Traditional growth through headcount expansion is being replaced by productivity-sharing model where efficiency gains fund new capabilities.
Watch For:
Traditional FTE-based contracts declining 20%+ annually
Outcome-based contracts growing to 30%+ of new large deals
Wipro: AI Transformation Core
The Signal: AI has evolved from pilot programs to mission-critical infrastructure, fundamentally reshaping how enterprises operate and compete.
Key Quote: "We saw a clear trend of mini-air projects moving to scale and production. We quickly aligned with these priorities, deepened our partnerships, and secured key deals. In fact, these examples highlight a clear trend. AI is no longer a niche. It's becoming essential to how businesses operate at scale. At Wipro, we see AI as a force reshaping industry and amplifying human potential. We at Wipro are building an AI-first, AI-everywhere enterprise focused on solving complex challenges, accelerating delivery, and reimagining operations at scale." — Srini Pallia, CEO
Why It Matters: AI just crossed the line from experimental to essential for big companies. Wipro has over 200 deployed AI agents and describes AI as rewiring how enterprises operate, not just automating tasks. This means massive shifts in IT spending from traditional application maintenance to AI-powered business transformation. The crossing of enterprise AI chasm means AI moves from IT curiosity to business necessity.
Watch For:
AI services exceeding 25% of total bookings by FY27
Average deal sizes increasing 40%+ as AI projects scale beyond pilots
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/ea1716d9-c63b-46b0-91f8-549a98c742f6.pdf
Wabag: Saudi Vision 2030 Infrastructure Catalyst
The Signal: Saudi Vision 2030 and FIFA World Cup 2034 are creating unprecedented structural demand for water infrastructure across the Middle East.
Key Quote: "Wabag's future in MEA is focused, strategic and growth driven with client development at the heart of our approach. The regional transformative agenda led by Saudi Vision 2030 and the upcoming FIFA World Cup 2034 is creating an unprecedented demand for sustainable large-scale water and wastewater infrastructure. In parallel, Africa's rapid urbanization and industrial growth are driving significant opportunities for advanced water solutions across the continent." — Rohan Mittal
Why It Matters: Saudi Arabia is spending $500+ billion to diversify away from oil, creating a decade-long infrastructure build-out that goes way beyond typical project cycles. Water infrastructure becomes essential for economic transformation, urban development, and industrial diversification. Success in Saudi Arabia creates reference credentials for other GCC markets with government payment guarantees. This transcends typical project-based opportunities to structural transformation driven by government-mandated diversification.
Watch For:
Saudi region revenue exceeding 30% of total company revenue by FY28
Order book visibility extending beyond three years from Saudi projects alone
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/08bee464-2a1b-49cd-8a56-3146e83d2d36.pdf
Mahindra: Brand-Building Export Strategy
The Signal: Prioritizing long-term brand equity and market development over short-term export revenue, fundamentally changing how emerging market OEMs approach global expansion.
Key Quote: "Why M&M is behind in exports as we have world-class SUVs? What steps are you taking to increase export sales? I think it's not fair to compare exports of ours with other global players. For other global players, they don't need to build either a brand or a channel. India becomes, in a manner of speaking, white label for them into those countries. For us, we have to go country at a time because we have to establish dealer network, channels, spares network, logistics on the ground, most importantly, brand and goodwill. Our idea is not to be ad hoc about it and try and just look for short term deal based exports but to fundamentally invest in brand, channel and market creation." — Rajesh Jejurikar
Why It Matters: Most Indian companies export by making cheap products for other brands. Mahindra is building its own brand internationally, which takes way longer but creates much more value. They're proving this works in South Africa where they've become a top-10 automotive brand. This patient capital approach could provide a blueprint for other Indian brands going global. Rather than competing on the traditional Indian export model of low-cost manufacturing, Mahindra is building brand equity internationally.
Watch For:
Export revenue per unit staying above $15,000 versus industry averages below $10,000
International market share gains in premium segments rather than just volume
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/3152798e-bca7-4df3-97e9-1078ff0ce061.pdf
Capital Structure Evolution
Financial services and investment management are being restructured around new regulatory frameworks and changing client demands.
HDFC AMC: Strategic Platform Evolution
The Signal: Transforming from a traditional mutual fund company into a comprehensive investment platform spanning multiple asset classes and investment vehicles.
Key Quote: "So, I think I might have mentioned this earlier that our broader vision is very clear to serve as a comprehensive investment platform offering solutions across mutual funds, which includes both active and passive, portfolio management services and differentiated alternative strategies, which can meet the needs of a wide range of investors and a wide range of our partners. So, on SIF, we have secured the necessary approval from SEBI to set up a Specialized Investment Fund and that opens up an avenue for us to launch this product." — Navneet Munot, MD & CEO
Why It Matters: HDFC AMC is evolving from a single-product mutual fund house into a multi-asset investment platform. They got SEBI approval to launch Specialized Investment Funds, opening up alternative investments beyond traditional mutual funds. This addresses the shift in Indian wealth management toward more sophisticated investment needs and higher-net-worth client demands. Success would create multiple revenue streams with potentially higher margins, while failure risks resource dilution.
Watch For:
SIF product launches within 12-18 months
Alternative investment revenue reaching 15%+ of total revenue by FY27
HDFC AMC: Passive Investment Infrastructure
The Signal: Positioning for the structural shift toward passive investing by building comprehensive ETF and index fund capabilities.
Key Quote: "Over the last couple of years, we have significantly expanded our product offering both on index fund as well as on the ETF side, that includes market cap-based indices, smart beta, some of the sectoral/thematic funds. So, we've got the full product bouquet, we've got the best-in-class content and a seamless journey for investors to participate in that. We engage with partners who have been offering passive as part of their product bouquet." — Navneet Munot, MD & CEO
Why It Matters: HDFC AMC is building passive investment capabilities anticipating the shift toward low-cost indexing that transformed global markets. They started their first index fund in 2002 but are now significantly expanding the product range. This prepares for inevitable fee compression in asset management as investors become more cost-conscious. The emphasis on "seamless journey" and partner engagement indicates focus on distribution efficiency critical for success in low-margin passive products.
Watch For:
Passive AUM growth exceeding 40% annually
Passive products comprising 25%+ of new inflows by FY27
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/b6be84ee-d5fc-44f3-b050-a6e6c5114ca5.pdf
Nippon India: SIF Business Launch
The Signal: Launching dedicated Specialized Investment Fund business as separate vertical, expanding beyond traditional retail mutual funds into institutional alternatives.
Key Quote: "Lastly, on the SIF front, we have the team in place, led by Industry veteran Andrew Holland, and we will launch products in due course. We are proud of our team, and what the kind of wealth they are creating for the investors. SIF is a different business vertical, and we want to take it very seriously. We do not want to be just one other product. We see that as a new business line for us... we see this vertical as a very, very critical separate line of business for us going forward. So, we are investing in it very differently." — Sundeep Sikka, Executive Director & CEO
Why It Matters: Nippon India appointed industry veteran Andrew Holland to lead SIF as a separate business line, not just another product. SIFs typically charge higher fees and target institutional investors, representing a move up the value chain from retail mutual funds to sophisticated alternative investments. The CEO's emphatic language indicates this isn't peripheral initiative but core to future growth strategy.
Watch For:
SIF product launches within 6-9 months
SIF AUM reaching ₹5,000+ crores within 18 months
Nippon India: Alternative Investment Platform Scaling
The Signal: Systematically building comprehensive alternative investment platform across multiple strategies, moving beyond traditional asset management.
Key Quote: "Starting off with AIF - Under, Nippon India AIF, we offer Category II and Category III AIFs and have raised cumulative commitments of INR 81.0 bn across various schemes, up by 25% YoY. In Q1 FY26, we raised ~INR 7 bn of commitment, being our highest quarterly fund raise ever. Fund deployment across all the strategies was robust in Q1 FY26, with 9 active investments in Performing Credit, and full deployment in our Venture Capital FoF, across 14 funds, with underlying exposure to 395+ startup companies." — Parag Joglekar, CFO
Why It Matters: Nippon raised ₹7 billion in one quarter, their highest ever, across real estate, credit, and venture capital. The platform spans ₹3 billion in real estate, active investments in performing credit, and exposure to 395+ startups through their fund of funds. This systematic scaling suggests they're positioning for the structural shift toward alternatives in Indian wealth management. The business model implications are significant as alternatives typically command higher fees and offer more stable capital commitments.
Watch For:
AIF AUM crossing ₹100 billion within 24 months
Successful exit monetization from current portfolio investments
https://www.bseindia.com/xml-data/corpfiling/AttachHis/a26d8cd1-938c-4c6c-a0e0-34fae30a52e6.pdf
Tata Power: Rooftop Solar Hypergrowth
The Signal: India's rooftop solar market is entering exponential growth phase, with Tata Power positioned to capture disproportionate share through integrated capabilities.
Key Quote: "Just to give you an idea that last year March, we supplied 1,000 units. This year, March, we supplied 8,000 units. This year, June, we supplied 20,000 units and hopefully later part of this year, we will supply 40,000 to 50,000 units per month. So, the demand is humongous. The country, you know PM Surya Ghar, has said 1 crore households. We have actually in the country 25 crore households. So, whatever we will do will be still very small compared to the total market opportunity which is there. So, I would leave it to you to guess and estimate that what sort of demand will be there for next 5-10 years. I think it is humongous." — Dr. Praveer Sinha, CEO & Managing Director
Why It Matters: Tata Power's monthly rooftop installations went from 1,000 to 20,000 in 15 months and they're targeting 50,000 monthly installations. The government wants to reach 10 million households but there are 250 million total households in India. This is just the beginning of India's distributed energy transition. The strategic differentiation lies in integrated approach combining domestic manufacturing, distribution partnerships, and installation capabilities unlike pure-play installers dependent on imported modules.
Watch For:
Monthly installation run rate reaching 50,000+ units by Q4 FY26
Market share in residential rooftop segment exceeding 8-10% nationally
That’s it for now! Your feedback will really help shape how ‘Plotlines’ evolves. Drop it down in the comments below!
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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Superb idea……truly helps in filtering the noise and capturing the big trends…..
Great initiatives .Lots to learn.