The Chatter: TCS, IFB, Gulf Oil, Hinduja & More
Q4FY26 | Edition #63
Welcome to the 63rd 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.
In this edition, we have covered 11 companies across 7 industries.
Software Services
TCS
Hinduja Global Solutions
Engineering & Capital Goods
Everest Kanto Cylinder
Greenleaf Envirotech
Gulf Oil Lubricants India Limited
Auto Ancillary
Tenneco Clean Air India Ltd.
Consumer Durables
IFB Industries
Srigee DLM Ltd
FMCG
Apex Frozen Foods
Information Technology
Dev Information Technology
Services
CMR Green Technologies
Software Services
TCS | Large Cap | Software Services
Tata Consultancy Services (TCS) is a global IT services company with deep industry expertise. They offer a wide range of services including application development, digital transformation, AI, data and cloud services, engineering, cybersecurity, and products.
[ Video ]
On AI’s impact on the overall technology market.
“The total addressable market which is $1.6 trillion will go to $3 trillion. I believe eventually it will keep spreading towards the entire GDP in different markets.”
— N Chandrasekaran, Chairman
On why TCS is investing in infrastructure despite historically being asset-light.
“This is a necessary thing to be able to play an end-to-end full-stack AI solution game.”
On the operating model of future businesses.
“The metrics change for every department. How do we attract the best talent? How well we deploy AI agents? How well we work between AI and humans?”
On cybersecurity as a business opportunity.
“Cybersecurity and data privacy has a lot of opportunity and it is a big threat to all industries, all companies.”
Chandrasekaran was asked whether AI is genuinely a growth opportunity for TCS or merely another technology cycle.
“As I have mentioned, I am of the firm belief that every technology disruption enhances tech spending and is a significant opportunity for a company like TCS. But the magnitude of the possibility of AI is going to be so huge that, in my firm belief, it is the biggest opportunity TCS has had so far.”
— N Chandrasekaran, Chairman
Explaining why growth has moderated despite AI optimism.
“You will know that we have faced technology disruptions and every time there is a technology disruption there is a transition time because the clients pause the adoption of technology and you will see a slowness as growth.”
On investor concerns around IT sector valuations and growth.
“I think we have seen the worst of the last couple of years and I believe AI growth will be significant.”
Providing actual AI revenue data.
“If you look at the last four quarters, in Q2 it was $1.5 billion annualized. In Q3 $1.8 billion and in Q4 it is $2.3 billion. It is a CAGR of 22%.”
“On an annualized basis, I expect the AI-driven revenues to grow 100% on a year-on-year basis.”
Estimating AI’s share in future revenues.
“In my opinion, the answer to the question how much of the revenue will be AI-based in the next five years—I think by 2028 to 2030, 100% of the revenue will have a component of AI.”
Explaining how TCS is preparing for the AI era.
“The company is making a lot of investments not only in human talent, in producing assets, in building an AI operating system of sorts which will have AI agents for every industry and for integrating every company’s new solutions to the traditional IT footprint.”
Discussing infrastructure investments.
“The company has made the decision to invest in an AI data center and not only the one which we are setting up in India, but we are also investing in building the sovereign cloud.”
Explaining his vision of human-AI collaboration.
“If the company has half a million employees, the day is not far when the company will have half a million agents.”
One of the clearest statements on employment.
“Will it definitely lead to decrease in hiring? Absolutely. The company will not be hiring the kind of numbers that it used to hire.”
Balancing concerns around automation.
“That does not mean there are no future opportunities. Once the transition happens, the AI world will produce so much more opportunities. There will be new talent that will be required.”
On concerns regarding the US business.
“I have no doubt that the US will continue to be our largest market and we do not face any employment visa-related issues.”
On capital allocation.
“There is absolutely no hesitation on the part of the company and the board to allocate and fund large acquisitions.”
On balancing profitability and expansion.
“The company does not choose to sacrifice growth at the cost of margin.”
On long-term profitability.
“My firm belief is that this industry can comfortably operate at 25%. In fact, TCS has operated at 28% and growth is not being sacrificed.”
On how organizations will be managed in the AI era.
“If the HR department of the company had a metric on their ability to hire large numbers of talent, that metric will go away.”
— N Chandrasekaran, Chairman
Hinduja Global Solutions Limited | Mid Cap | BPM & Digital Services
Hinduja Global Solutions is a global business process management and digital services company. The company provides customer experience, digital transformation, and AI-led solutions across sectors including BFSI, healthcare, retail, and public services. It also operates a media business through NXTDIGITAL, which includes digital television and broadband services.
[Concall]
Despite flat reported revenues, management pointed to new client additions as the most significant forward-looking indicator for the business.
“FY2026 has been our strongest year ever, with 79 new clients signed on across BPM and Digital services.”
“I feel this is the best year we ever had on new logos. With these signings, we are entering FY2027 with meaningful revenue visibility.”
— Venkatesh Korla, Global CEO, HGS / Mahesh Kumar Nutalapati, Global CFO, HGS
The company’s proprietary AI deployment model is built around a 90-day production commitment rather than open-ended pilots, with shared risk as a key differentiator.
“Realized AI is HGS’s operating model for deploying AI in production. Not experimentation. It’s a risk that is shared and not transferred to the customer. We pick one client process, identify the problem, and solve it. And we take it from zero to production in 90 days.”
— Venkatesh Korla, Global CEO, HGS
AgentX, the company’s agentic AI platform, has moved beyond pilots and is now embedded in live client operations across 23 customers.
“Today, AgentX™ is moving from capability to scale. We now have 23 active customers and 21 AI assistants in production.”
“Importantly, these are not pilots anymore. They are embedded into real workflows in client operations.”
— Venkatesh Korla, Global CEO, HGS
The broadband enterprise business, CelerityX, delivered significant growth and is being positioned as a primary engine for the media segment going forward.
“CelerityX, which is the enterprise broadband business that we developed barely a year and a half ago, revenues have increased for the enterprise business by 2x this year. The total contract value has increased by 5x.”
— Vynsley Fernandes, Whole Time Director, HGS & CEO, NXTDIGITAL Media Business
The company signed an MoU with the Uttar Pradesh government for Project Ganga, a large-scale broadband rollout targeting two million households through locally trained digital entrepreneurs.
“Project Ganga is basically a large-scale digital inclusion initiative in the state to be able to provide that connectivity.”
“When the project is completed, over 2 million households across the state of Uttar Pradesh will get connected with high-speed broadband over the next two to three years.”
— Vynsley Fernandes, Whole Time Director, HGS & CEO, NXTDIGITAL Media Business
A positive shift in broadband customer behaviour is visible, with more users opting for higher-speed plans at the point of sign-up, reflecting improved affordability and rising data consumption.
“About a year ago, 10.7% of our users were in the high-speed segment above 100 Mbps, and this has now risen to 15%.”
“From 54% last year, entry-level plan subscribers have dropped to 46%, signalling that more consumers are adopting a higher base plan at start.”
— Vynsley Fernandes, Whole Time Director, HGS & CEO, NXTDIGITAL Media Business
The company’s net treasury and cash surplus of Rs. 5,346 crores gives management the flexibility to fund strategic investments without compromising shareholder returns.
“Net treasury and cash surplus stood at around Rs. 5,346 crores, which gives us enough flexibility for us to invest behind the realized AI framework and Project Ganga without compromising returns.”
— Mahesh Kumar Nutalapati, Global CFO, HGS
Despite a negative standalone EPS for FY2026, management recommended a dividend as a signal of confidence in the company’s trajectory.
“We see improved performance and as we have the company generating profitability this year through its deployed assets, we think that with the improved performance and future outlook, we are recommending to declare dividends to share the value with the shareholders.”
“There’s enough cash assets in the company and we are not concerned about shortage of funds as we go through the transformation.”
— Venkatesh Korla, Global CEO, HGS
Engineering & Capital Goods
Everest Kanto Cylinder | Micro Cap | Engineering & Capital Goods
Everest Kanto Cylinder (EKC) is a company with manufacturing units in India and the Middle East. They manufacture various industrial cylinders for gases like oxygen, hydrogen, nitrogen, among others, as well as allied products. EKC also produces CNG cylinders for vehicles and beverage cylinders. They are involved in the manufacturing of a wide range of industrial equipment.
[Concall]
Investors questioned the prolonged weakness in the Dubai operations. Management acknowledged operational challenges but emphasized that demand remains intact and order visibility is improving.
“Definitely there will be improvement. Even in this difficult situation, we are working at around 50% and the order book is improving.”
“The order book is there. Only thing is that the Middle East situation on shipment and other things are difficult.”
“Hopefully, this year should be a better year.”
— Puneet Khurana, Managing Director
Investors raised concerns about higher LNG costs and rising CNG prices. Management believes the economics of CNG remain attractive relative to petrol.
“The PV market mainly will depend on how the petrol prices move.”
“Customer I do not think will leave CNG if the prices are still not moved up so much.”
“The increase is not so substantial.”
“There should not be much impact on the PV sales.”
— Puneet Khurana, Managing Director
Given Everest Kanto’s larger exposure to commercial vehicles, management was asked whether higher gas prices could hurt fleet adoption.
“Yes, even on the commercial segment, commercial segment is also continuing good.”
— Puneet Khurana, Managing Director
Management provided an update on the ongoing GST matter.
“Our cases, we (industry) have also made a representation to the government in this regard, seeking a clarification on the HSN of the product manufactured.”
“So, we are very positive on the same.”
“Timeline can be between 6 months to a year.”
— Sanjiv Kapur, Whole-Time Director & CFO
During the opening remarks, management highlighted a favorable shift in product mix.
“We also saw encouraging traction in higher value-added segments such as semiconductors and defence, which contributed positively to our product mix and supported overall margin expansion.”
— Puneet Khurana, Managing Director
Management remains constructive on growth prospects in North America.
“The US business maintained steady momentum during the year, supported by a healthy order pipeline and growing opportunities in clean energy and specialised industrial applications.”
— Puneet Khurana, Managing Director
The company outlined its broader strategic opportunity set beyond automotive CNG.
“Beyond CNG-led mobility, opportunities across industrial gases, compressed biogas, hydrogen, semiconductors and defence are expanding the addressable market for high-pressure gas storage and transportation solutions.”
— Puneet Khurana, Managing Director
While EV adoption continues, management believes gas-based mobility will continue to play an important role in India’s energy transition.
“Over the medium to long term, India is expected to remain a multi-fuel economy, with gas playing an important role in mobility and the broader energy transition.”
— Puneet Khurana, Managing Director
Management highlighted an important industry trend supporting long-term cylinder demand.
“As per industry reports, CNG accounted for nearly 22% of passenger vehicle sales in FY2026, emerging as the second-largest fuel type in the segment for the second consecutive year and staying ahead of diesel.”
— Puneet Khurana, Managing Director
This suggests growth is becoming more diversified beyond automotive CNG cylinders.
“Our India business continued to witness strong demand across both CNG and industrial gas applications, with industrial applications seeing a healthy increase during the year.”
— Puneet Khurana, Managing Director
Management made it clear that logistics disruptions are the bottleneck.
“The order book is there.”
“Only thing is that the Middle East situation on shipment and other things are difficult.”
— Puneet Khurana, Managing Director
Greenleaf Envirotech | Small Cap | Environmental Infrastructure & Services
Greenleaf Envirotech is a Gujarat-based environmental infrastructure company specialising in wastewater treatment, environmental engineering, laboratory services, and compliance consulting. Over 15 years, it has built long-term relationships with clients like L&T, Reliance, Tata Motors, and Maruti Suzuki. The company is now transitioning from a pure EPC model toward owning and operating environmental infrastructure, while expanding into ESG consulting and circular economy services.
[Concall]
Management described the company’s multi-service model not as a diversification strategy but as different stages of the same value chain, designed to deepen and extend client relationships over time.
“Our laboratory business allows us to engage with customers before a project begins. Our consulting and compliance services help them navigate regulatory requirements. Our engineering and EPC capability help create the infrastructure. Our O&M services allow us to remain involved long after project commissioning.”
“The objective is not to participate in single projects. The objective is to build long-term customer relationships across multiple stages of the environmental journey.”
— Kalpesh Gopti, Chairman & MD, Greenleaf Envirotech
Management provided clear margin discipline guidance, with a hard floor on project bids that anchors the profitability outlook.
“For new orders, we generally bid for projects at a 15% to 20% gross margin. We are not taking any project below a 15% gross margin. So, we will always maintain between 15% and 20% EBITDA for all projects, both existing and new.”
— Kalpesh Gopti, Chairman & MD, Greenleaf Envirotech
The CETP model carries a 25 to 30-year operational runway with inflation-linked pricing after the initial two-year commitment period, and capacity can be doubled in Phase 2.
“Currently in Phase 1, we have developed a capacity for 4,000 textile machines, but in Phase 2, we can increase that up to 8,000. So, this project will continue to serve the textile industries in that particular region for approximately 25 to 30 years.”
“The monthly charges are only committed for the first 2 years, and thereafter we can increase them based on inflation and our costs.”
— Kalpesh Gopti, Chairman & MD, Greenleaf Envirotech
Management sees no meaningful increase in competitive intensity, pointing instead to a massive expansion of government spending on water infrastructure as a demand tailwind that benefits all serious EPC players.
“The Ministry of Jal Shakti has allotted around 94,000 crores in this financial year for the development of water and wastewater-related infrastructure. This gives a huge opportunity to all EPC players. So, I do not see an increase in competition.”
— Kalpesh Gopti, Chairman & MD, Greenleaf Envirotech
Court-ordered industrial closures for non-compliance are creating a new category of forced private-sector demand for wastewater treatment infrastructure, independent of government budgets.
“In a textile industry cluster in Jodhpur, the High Court ordered the closure of 300 industries because they were discharging untreated water into the river. All of them now have to adopt this wastewater treatment infrastructure, which will create opportunities for a company like ours.”
— Kalpesh Gopti, Chairman & MD, Greenleaf Envirotech
Gulf Oil Lubricants India Limited | Mid Cap | Lubricants
Gulf Oil Lubricants India is a leading lubricant manufacturer serving automotive, industrial, and OEM customers across India. The company is focused on gaining market share through volume-led growth, capacity expansion, and new opportunities in emerging segments such as data-centre cooling fluids.
The company significantly outperformed industry growth in FY26, driven by strong execution across segments and continued market share gains. Management expects the growth momentum to continue despite a challenging macroeconomic environment.
“In the year we grew 10.5% but quarter 4 was about 14% growth. Volume for us has always been more than 2x of the industry but happy to share that quarter 4 went into 3x plus. Most of our segments we are seeing positive and our strategies are well working in the market.”
— Ravi Chawla, MD & CEO, Gulf Oil Lubricants India Limited
Management highlighted unprecedented cost inflation across key raw materials but believes pricing actions and operational discipline will help protect profitability. The company continues to actively manage margins while maintaining growth.
“We’ve seen unprecedented cost increase right from packaging material to our base oils which go similar to crude and chemicals which are additives. There has been significant increases happening on a monthly basis and we are passing on what the cost increase is and trying to manage our margins.”
— Ravi Chawla, MD & CEO, Gulf Oil Lubricants India Limited
The company is investing ahead of demand with a major capacity expansion program designed to support future growth. Management expects the new capacity to support business requirements for the next several years while enabling continued market share gains.
“Both our plants are actually working on a three shift basis. So we are adding capacity of 70%. Given the growth we have normally which is 2 to 3x of the industry, this capacity enhancement will help and meet our next three four years plans.”
— Ravi Chawla, MD & CEO, Gulf Oil Lubricants India Limited
Management believes supply chain reliability is becoming a critical competitive advantage. The company’s strong sourcing capabilities and OEM relationships position it well to navigate ongoing market volatility.
“We are also in a very good position supply-wise in terms of getting the supply chain right and able to meet the need of our B2B customers. We have about 40 plus OEMs and that is very important to get the supply security because that is what customers and our business partners look for.”
— Ravi Chawla, MD & CEO, Gulf Oil Lubricants India Limited
The company is preparing for emerging opportunities in data-center cooling through specialized liquid-cooling products. While the addressable market remains small today, management expects the segment to grow and is already engaged in product validation with customers.
“We have two products ready. We are now talking to actual data centers to put our product in terms of validation. We will make a play in that and hopefully be able to announce some sort of tie-ups in a few months.”
— Ravi Chawla, MD & CEO, Gulf Oil Lubricants India Limited
Auto Ancillary
Tenneco Clean Air India | Small Cap | Auto Ancillary
Tenneco Clean Air India Ltd. (TCAIL), founded in 1979 and part of U.S.-based Tenneco Group, designs and manufactures clean air, powertrain, and suspension solutions for Indian and global OEMs. It leads in CT, OH, and PV segments and exports across major global markets.
[Concall]
One of the most important comments from the call. The company highlighted that its current order book already provides complete visibility on its internal FY28 revenue plan and supports double-digit growth over the medium term.
“As of March 31, 2026, our lifetime order book stands at INR124,000 million after accounting for net additions and programs that commenced production this year.”
“This provides 100% visibility of our FY2028 internal revenue target and underpins a double-digit growth trajectory over the medium term.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
The company expects exports to become a key pillar of growth driven by China+1 diversification, technology parity and cost competitiveness.
“Clearly, exports is going to be a very key vector of growth for us beyond content per vehicle.”
“Our exports are coming in way stronger than our current level of exports.”
“They’re coming in very strong on both the Clean Air Powertrain side and also on the shock absorber side.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
This was one of the boldest product-related statements made during the call.
“We are hopefully targeting somewhere about 50% of that to be able to disrupt.”
“The OEM interest has been very, very significant.”
“The feedback has been fantastic.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management suggested that customer interest has accelerated beyond the initial launch customer.
“The traction is so good that we have three to four OEMs that are already interested in our product.”
“This covers Indian OEMs, Japanese and also Korean OEMs... and also European OEMs.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
This is arguably the biggest regulatory growth opportunity discussed during the call.
“The addressable market, if you look at CAFE 3 and BS7, is as much as 1,300 to 1,400 crores of additional content per vehicle.”
“That’s something that we’re going to target.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Tenneco has historically not supplied Clean Air products to the largest passenger vehicle OEM in India, limiting growth. That changes with a new gasoline particulate filter program.
“We have already secured entry into the supplier panel for this largest PV OEM in India.”
“Due to CAFE norms with a Gasoline Particulate Filter.”
“We’re hoping that once we enter the panel, our growth will increase quite a bit.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Contrary to concerns that electrification may hurt Clean Air suppliers, Tenneco believes hybrids are a net positive.
“For hybrid vehicles... our content can go from X to 1.5 to even 2X.”
“Hybrid vehicles actually can have the effect of taking our content from X to 1.5 to even 2X.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management offered a notable industry view on powertrain evolution.
“The markets in the US and Europe are sliding back from an EV to more of a compromise.”
“They’re going more to a hybrid or a range extender solution.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management views the weaker rupee as a structural advantage for export competitiveness.
“A depreciation of the rupee can also be a blessing in disguise.”
“It makes our products more competitive.”
“I see this as an immediate 15% to 20% improvement in our ability to compete in the global market.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management explained why it consistently delivers industry-leading ROCE and margins.
“The flexibility is so unique and everything is so standardized.”
“That gives us a unique competitive advantage.”
“The time to market is faster, the cost of that product is less, the margins are better, and the capital efficiency is the highest.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management explicitly linked future export growth to global OEMs diversifying sourcing away from China.
“Many of the OEMs from a China plus one diversification or let’s call it supply chain diversification standpoint are looking to India as a source for products, and we are also benefiting from that.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
This is an important enabler for exports because Indian facilities can now manufacture products meeting global standards, achieving technology parity with Europe in key product categories, .
“India is now equal in technology, whether you look at Clean Air exhaust systems or with shock absorbers.”
“The same essential products can be exported.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management stressed that the significance lies in entering the supplier panel of a major Japanese OEM.
“It was difficult to get into this particular customer bearings for a very long time.”
“The fact that we have been able to enter the supplier panel is very strategic for us.”
“Which means we can now grow with this Japanese customer in a bigger way.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Useful insight into why management is excited about CV and off-highway opportunities.
“If the car typical passenger vehicle exhaust system is at X, a commercial system exhaust could be somewhere between 3X to 4X.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
One of the most striking content-per-vehicle observations from the call.
“Some of the real low volume applications like construction equipment can be even like 10 to 15X.”
“Because they really need very, very strong aftertreatment.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
This is effectively management’s long-term thesis for the suspension business.
“Cars moved to SUVs, but the premiumization of SUVs never happened.”
“But that’s changing dramatically.”
“This is where Tenneco comes in.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management ruled out competing purely on price in new categories.
“If we do enter the two-wheeler market for Clean Air or for suspension, it will be something that brings something unique to that segment.”
“We don’t have to play a commodity price game.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Management tied localization directly to profitability.
“Localization is very important because that’s where our profit margins come from.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
The company intends to maintain very high local sourcing levels even as it introduces new technologies.
“Currently, our localization is about 89%, 90% level.”
“We want to keep that.”
— Arvind Chandrasekharan, Whole-Time Director & CEO
Consumer Durables
IFB Industries | Mid Cap | Consumer Durables
IFB Industries is a diversified manufacturer best known for its premium front-load washing machines, with a growing presence in air conditioners, microwaves, refrigerators, and dishwashers. The company also runs an engineering division supplying fine-blanked components to the automotive industry. IFB has been investing in capacity expansion and portfolio premiumization as it pushes deeper into the home appliances market.
[Concall]
The new MD and CEO of the Home Appliances Division, in his first earnings call, outlined a back-to-basics agenda centred on distribution intensity, SKU rationalisation, and plugging trade scheme leakages rather than new strategic initiatives.
“My priority is to ensure the processes the team already put into place are tightened further. We are focusing on improving cost structures, managing the dealer network, and plugging leakages in trade schemes.”
“We have identified approximately 10,500 outlets that contribute the most volume. Now we must maximize placement and extraction from those outlets.”
— Sandeep Joseph Abraham, MD & CEO, Home Appliances Division, IFB Industries
Commodity and forex pressures have continued into the new financial year, with a Rs. 49 crore negative impact already visible in April and May alone, partially offset by Rs. 29 crores of cost measures and Q1 price increases.
“Raw material costs are increasing further, including both commodities and forex. April and May are seeing a negative impact that has not yet been fully offset by our cost initiatives.”
“For April and May, the cumulative negative impact from commodities and forex was approximately 49 crores.”
— Sandeep Joseph Abraham, MD & CEO, Home Appliances Division, IFB Industries
The company’s 23% front-loader market share is understated because IFB does not currently compete in the 12 kg segment, which has grown to represent 13% of the overall market. Launches in the 13 kg and 14 kg categories are planned for later this year.
“Our front loader market share is about 23%. This is despite not operating in the 12 kg category, which is 13% of the market. If you exclude that 12 kg segment, our share would be about 25.5% to 26%.”
“We will be plugging that gap this year by launching 13 kg and 14 kg products.”
— Sandeep Joseph Abraham, MD & CEO, Home Appliances Division, IFB Industries
The brand is management’s primary confidence anchor for expanding into new categories, with the argument that established outlet relationships from washing machines reduce the entry barrier for ACs and refrigerators.
“In categories where we have entered, we have achieved significant share because our products are well-received. The IFB umbrella brand stands for quality products and service, which is our biggest asset.”
“If we have succeeded in washing machines, microwaves, and dishwashers, we believe customers will see an IFB AC as a great investment.”
— Sandeep Joseph Abraham, MD & CEO, Home Appliances Division, IFB Industries
The Engineering division is targeting 20% to 25% revenue growth over the next two to three years, supported by capacity additions and new product lines including EV battery packs, motorcycle chains, and brake discs mandated under new legislation.
“Over the next 2 to 3 years, we plan for 20% to 25% growth in existing business. We are also adding new revenue streams like EV battery packs, motorcycle chains, and brake discs, which have become mandatory under new legislation.”
— Jayanto Patnaik, Engineering Division, IFB Industries
The engineering division’s new order win target for FY2027 has been raised to Rs. 350 crores, more than double last year’s Rs. 153 crore actual, with management attributing the FY2026 miss to the long validation cycles inherent in the B2B automotive supply chain.
“Order maturity in the Engineering business takes time. Supplies only start after a 7 to 8-month validation period for drawings and samples.”
“For FY27, we have a 350 crore target for new orders. Many are already in the validation stage.”
— Jayanto Patnaik / Amit Ghosh, Engineering Division, IFB Industries
Srigee DLM | Nano Cap | Consumer Durables
Srigee DLM provides end-to-end plastic manufacturing solutions with a design-driven approach to enhance functionality and manufacturability. They serve both OEM and ODM clients, offering comprehensive services in the plastic manufacturing industry.
[Concall]
Management attributed growth constraints primarily to lack of manufacturing space rather than lack of demand.
“The performance we achieved is based on our existing capacity utilization, which is over 100%.”
“When we expand, the rent we are currently paying will be saved and become income.”
“Moreover, with more space, we can add more customers and products.”
— Suresh Kumar Singh, Whole-Time Director
The expansion is the central growth driver for the next phase of the business.
“We are moving to a new facility with a plot size of 10,850 square meters, which is 4 times our current size.”
— Suresh Kumar Singh, Whole-Time Director
Management sees polymer compounding as one of the biggest growth opportunities within the company.
“We plan to expand this in this year when we move to the new facility.”
“Our plan is to increase production capacity to 150 metric tons.”
“We are eyeing approximately a 3x expansion in this polymer compounding sector.”
— Suresh Kumar Singh, Whole-Time Director
Management indicated that while mobile assembly is not the largest revenue contributor yet, it generates the best profitability.
“If you ask which segment has the highest margins among the four verticals, it would be mobile phone assembly.”
— Suresh Kumar Singh, Whole-Time Director
Management suggested current volumes represent only a small share of the potential opportunity.
“Samsung is currently assembling more than 10 lakh phones and my contribution is not even 10%.”
“My customer told me that if I provide more space, they will increase my business.”
— Suresh Kumar Singh, Whole-Time Director
Management acknowledged dependence on a few customers and intends to diversify.
“Last year, 95% of revenue came from these top customers, which has now gone down to 91%.”
“It is in our focus area to reduce this and ensure an equitable distribution among customers.”
— Suresh Kumar Singh, Whole-Time Director
Management proactively stocked raw materials ahead of price spikes linked to geopolitical tensions.
“The major impact is on the polymer business.”
“We made very large purchases of polymer in February and March to nullify the effect of the war.”
“In March, polymer prices shot up 3 times.”
— Suresh Kumar Singh, Whole-Time Director
Management sees the business as a double-margin opportunity.
“I am already saving 10 rupees there.”
“That 10% saving becomes my income.”
“My linkages with other customers will allow me to sell the product in a trading format.”
“This is a double benefit for me.”
— Suresh Kumar Singh, Whole-Time Director
Management is looking beyond coolers and mobile assembly for diversification.
“We are expecting a hand blender segment and a home appliances segment.”
“Yes, we will do something beyond coolers.”
“We are in talks regarding the hand blender segment and the mixer-grinder segment.”
— Suresh Kumar Singh, Whole-Time Director
A proactive inventory decision driven by geopolitical concerns.
“We knew the impact would hit polymer prices, so we rushed to buy as much material as possible.”
— Suresh Kumar Singh, Whole-Time Director
FMCG
Apex Frozen Foods | Micro Cap | FMCG
Apex Frozen Foods Limited is a leading exporter of processed L. Vannamei and Black Tiger shrimp, with a strong presence in the value chain. The company has strategically focused on backward integration and value addition, positioning itself as a premier supplier of high-quality shrimp.
[Concall]
This is arguably the biggest strategic shift in Apex’s business model. The company has spent years diversifying away from U.S. dependence, and FY26 marks an inflection point.
“For the first time in Apex’s history, non-U.S. export markets became the largest contributor to sales in FY ‘26, accounting for almost 52% of the total sales mix.”
— Chowdary Karuturi, Managing Director & CFO
While the U.S. market faced tariffs and logistics disruptions, Europe continued to absorb additional volumes.
“Despite softness in the U.S. market, we were able to maintain our volumes close to last year’s levels of 10,300 metric tons, backed by robust performance in the non-U.S. markets, mainly European Union, which grew 19% year-on-year in FY ‘26 and 15% year-on-year in Q4 FY ‘26.”
— Chowdary Karuturi, Managing Director & CFO
This is one of the strongest forward-looking comments on the call and indicates management’s internal expectations.
“We have originally envisaged, of course, growth by almost 30% in volume terms.”
“But we need to see how that goes between quarters.”
— Chowdary Karuturi, Managing Director & CFO
Management suggested the recovery is no longer theoretical and is already visible in the order book.
“We are getting back our orders into the U.S. already post removal or rather reduction of tariffs to 10%, because all the shrimp supplying countries are on the same level playing field as far as the tariff is concerned.”
— Chowdary Karuturi, Managing Director & CFO
This provides a timeline for one of the biggest structural catalysts discussed on the call.
“I think UK will be the first one to implement sometime soon, very soon and followed by EU more towards maybe the end of this calendar year.”
— Chowdary Karuturi, Managing Director & CFO
FTAs were repeatedly cited as a critical medium-term growth catalyst.
“They will definitely help us to gain more volumes out of the EU, especially.”
“We are well placed with regard to having a good market share and actually growing them further also in the European Union.”
— Chowdary Karuturi, Managing Director & CFO
This suggests the company can grow significantly without major capacity expansion.
“We still have a good headroom for growth because of our overall utilization of capacities also being currently at only at 30% for the full year.”
— Chowdary Karuturi, Managing Director & CFO
Management highlighted approvals for new geographies beyond traditional markets.
“Both our facilities, one after the other, are also getting approved for newer markets like Russia also.”
“We are definitely looking on multiple fronts, not just the traditional markets.”
— Chowdary Karuturi, Managing Director & CFO
A key strategic lesson management says it learned from recent disruptions.
“Since we cannot depend on just one market excessively, which has already been taught to us as a lesson, that’s one of the reasons why diversification also helps us.”
— Chowdary Karuturi, Managing Director & CFO
Important for modeling profitability and export economics.
“We believe it’s going to remain around that level.”
“Between 5%, 5.5% to 6%.”
— Chowdary Karuturi, Managing Director & CFO
Management highlighted that vessel availability is a larger issue than costs.
“More than the cost increase, it is becoming a little bit of challenge with regard to support from the shipping lines.”
“Equipment is not available because of the crisis in the Middle East.”
— Chowdary Karuturi, Managing Director & CFO
Management repeatedly highlighted forex gains as a meaningful earnings driver.
“The net gain of foreign exchange difference in the current year was quite high, mainly attributed to the depreciation of the exchange rate currency currently.”
— Chowdary Karuturi, Managing Director & CFO
An important comment on industry pricing behavior and margin retention.
“It’s not really a point that there is a depreciation in the currency, it will be passed on to the customer.”
— Chowdary Karuturi, Managing Director & CFO
One of the more useful disclosures for analysts tracking industry pricing.
“For last year, it was $9.5 to $9.7.”
“But now currently, it is around $9.1 per kilo.”
— Chowdary Karuturi, Managing Director & CFO
This was a notable industry observation and counters concerns about farmer distress.
“Comparing India’s farm gate pricing to many other countries, we are still higher, actually, at this point.”
“We are paying higher prices to the farmers in the country compared to many other countries.”
— Chowdary Karuturi, Managing Director & CFO
This can affect quarterly volume recognition even if demand remains intact.
“Our shipments do get postponed by anywhere between, let’s say, 3 to 5 days.”
“Which means it is spillover to the next week.”
— Chowdary Karuturi, Managing Director & CFO
Information Technology
Dev Information Technology | Small Cap | IT Services
Dev Information Technology is an Ahmedabad-based end-to-end IT services company founded in 1997, offering cloud, AI, blockchain, cybersecurity, enterprise applications, and managed IT services. The company serves a mix of Indian government agencies, domestic corporates, and international clients, with a growing focus on Microsoft technologies. FY26 was deliberately a consolidation year, as management chose to prioritize the India market over exports amid geopolitical uncertainty, while simultaneously laying the groundwork for a North America push through the Xduce Infotech partnership.
[Concall]
The company’s most significant strategic move in FY2026 was the Xduce partnership, which gives Dev IT its first meaningful onsite presence in North America and the UK after nearly three decades as a purely offshore business.
“Dev IT was totally an offshore business and we wanted to have our onsite presence so that we can have onsite and offsite hybrid business styles as well as acquire more enterprise-level customers from the North America and UK regions.”
“Xduce, being a company with over 20 years of presence in the USA and in the UK, is extremely focused on enterprise-led customer acquisition.”
— Jaimin Shah, Managing Director & CEO, Dev Information Technology
Management provided a clear revenue-sharing model for joint deals, with the bulk of the economics flowing back to Dev IT as the offshore delivery engine.
“For all non-India matters, it will be front-ended by Xduce, and their entire offshore development will be done by Dev IT. The split will be 20:80. So 80% comes to Dev IT and 20% remains with Xduce.”
— Jaimin Shah, Managing Director & CEO, Dev Information Technology
Achieving all six Microsoft Solution Partner designations puts Dev IT in a small group globally and is already translating into inbound enterprise deal flow that would not have been accessible otherwise.
“When I asked ChatGPT about North America, it was around 5% of the total Microsoft partner ecosystem that had achieved all six competencies. So that is the uniqueness.”
“One of our customers, which is a leading sugar processing company in Texas, approached us through the Microsoft platform because we have achieved these competencies. We were able to close that 600,000 to 700,000 dollar business, which is significant for Dev IT prior to the Xduce integration.”
— Jaimin Shah, Managing Director & CEO, Dev Information Technology
Management’s revenue guidance for FY2027 is flat at around Rs. 200 crores, with meaningful growth expected only from FY2028 as international integrations mature.
“We are expecting around 200 crores worth of revenue for the current year. For next year, we are expecting around 15-20% growth from the current year.”
— Jaimin Shah, Managing Director & CEO, Dev Information Technology
Services
CMR Green Technologies | Small Cap | Metal Recycling
CMR Green Technologies is one of India’s leading recycled aluminium manufacturers, serving automotive and industrial customers through a circular-economy business model. Speaking after the company’s strong stock market debut following an IPO that was subscribed over 127 times, management outlined its growth plans, sustainability advantages, and expansion into newer aluminium recycling segments.
Management believes recycled aluminium is positioned at the center of the global decarbonization trend due to its dramatically lower carbon footprint compared to primary aluminium. Combined with aluminium’s infinite recyclability and growing consumption across industries, the company sees a long runway for sustained growth in the recycling sector.
“Recycled aluminium has the biggest decarbonization impact. The carbon generation is only 290 kgs against 16,000 kgs in the case of primary aluminium. So there is a very strong focus whenever we talk about sustainability and decarbonization. Aluminium comes in as number one.”
— Mohan Agarwal, CMD, CMR Green Technologies
Management remains highly optimistic about the future of the recycling industry, viewing the existing stock of aluminium in use as a perpetual source of raw material. This structural advantage, coupled with decades of industry experience, underpins the company’s confidence in long-term growth.
“There is a huge amount of aluminium in use today. All of which is going to come back into recycling not once but a number of times. So it’s a mine above the earth. We will keep getting more and more feed and we’ll keep producing more and more recycled products for our customers. I am ever so bullish on growth.”
— Mohan Agarwal, CMD, CMR Green Technologies
Management indicated that current cash generation is sufficient to fund ongoing capital expenditure requirements. However, becoming a listed company provides the flexibility to pursue significantly larger growth opportunities in the future without being constrained by internal resources alone.
“Basically, our business generates enough cash to fund our capex, but whenever we get a large opportunity going forward, one of the reasons for becoming a public company is that we can look for larger growth opportunities. Something that we had been kind of leaving in the past, being constrained by our ability to pursue those large opportunities. But being a public company, we should be able to now pursue those larger opportunities as they come, and we can always come back to the market to raise primary when we need it.”
— Mohan Agarwal, CMD, CMR Green Technologies
That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!
Quotes in this newsletter were curated by Meher, Shahid, & Srusti.
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.
Title says Asian Paints, NMDC.. but the post is anything that