The Chatter: Known Unknowns
Edition #32
Welcome to the 32nd 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 20 companies across 10 industries, along with some international features.
Textiles
Vardhman Textiles
Engineering & Capital Goods
Waaree Energies
Yash Highvoltage
Shilchar Technologies
Financial Services
Jana Small Finance Bank
Can Fin Homes
Energy
Mangalore Refinery and Petrochemicals Limited (MRPL)
Indian Oil Corp.
Trading
Aelea Commodities
FMCG
Hindustan Unilever
Varun Beverages
Software Services
Onward Technologies
Real Estate
PSP Projects
Healthcare
Acutaas Chemicals
Metals
SAIL
Jindal Steel
International
Samsung SDI Co Ltd.
Intel Corporation
L’Oréal
Mattel Inc.
Textiles
Vardhman Textiles | Small Cap | Textiles
[Concall]
Indian mills face 6-8 cent/pound cost disadvantage versus Vietnam/Indonesia, partially offset by temporary import duty relaxation.
“On the raw material front, Indian spinning industry is facing significant challenges due to persistently high domestic cotton prices compared to global levels. This is driven largely by the elevated minimum support price. With MSP announced for 2025-26 showing a further 8% increase, it is likely that CCI will need to purchase even more cotton as private ginners will struggle to buy at these higher prices. Global cotton prices on the New York futures range from 65 to 68 cents per pound resulting in landed costs of about 76 to 78 US cents for mills in regions like Vietnam or Indonesia, whereas for us Indian mills they trade at 80 to 84 US cents per pound which is a cost disadvantage. This cost disadvantage is now eased by the government relaxing the 11% import duty for the time being.”
– Neeraj Jain, Joint Managing Director
US customers delaying orders by 30-45 days and reducing quantities by 20-25%, shifting to hand-to-mouth buying due to tariff uncertainty.
“US-based customers have been very cautious in placing their orders and their orders are delayed by about 30 to 45 days and also the quantity has been lower by about 20 to 25%. When we look at the US customers buying pattern, one there is a delay in order flow. So if somebody was placing order in September they have delayed it, they have pushed it to mid-October. So that is a delay of about 45 days. In addition the quantum which was there last year that quantum has also reduced by 20 to 25%. So there we can see that the US customers are taking a very wait and watch approach. They do not, they are also doing buying more hand-to-mouth. They are not going for long orders, they are going for small and more frequent orders so that in case there is any change in policies then they can respond appropriately to that.”
– Agria Jain, Executive Director
India expecting 3 million bales imports (10% of consumption) by December 31st duty-free deadline, with Vardhman aggressively securing shipments despite Gaza port bottlenecks.
“We have tried to cover whatever best could have been possible because the window was 31st December arrival has to be there for cotton in India and unfortunately there are lots of bottlenecks in Gaza and other countries in terms of the shipment etc. So it’s not only we as a country we expect almost 3 million bales will be coming in this period of October November December which will be almost 10% of our total consumption of India. So it’s not only Vardhman I think there are lots of trade, lots of spinners are trying to buy cotton so that the shipment could reach India before 31st of December. So let’s see how much can it come and what does this pricing strategy but of course as Vardhman we have tried whatever the best we could get we have also tried to cover it.”
– Neeraj Jain, Joint Managing Director
11 million spindles (1,000 units) shut down with 80-90% unlikely to restart, while competing countries expand capacity.
“The industry estimation is about 11 million spindles have got stopped and if you look at the number of units which have got stopped are almost a thousand units. Our feeling is more than 80 to 90% may not come back even if this becomes better. Today what is happening because of the disadvantage India have India is not expanding at all and wherever these opportunities are there the other countries are expanding.”
– Neeraj Jain, Joint Managing Director
Odisha offers 30% capital subsidy versus MP’s 18-20%, plus 5,000 rupees/person/month labor subsidy for 5 years.
“Odisha government is giving subsidy or capital subsidy which is a little higher in the range of about 30% or so compared to 18 to 20% which Madhya Pradesh government offers. Also the Odisha government gives you 5,000 rupees per person per month subsidy for 5 years for all the workers you are engaging.”
– Neeraj Jain, Joint Managing Director
Engineering & Capital Goods
Waaree Energies | Mid Cap | Engineering & Capital Goods
Waaree posted record growth with a strong balance sheet, 18.7 GW module capacity, and the largest cell manufacturing facility in India.
“Our revenue for the quarter has recorded a growth of 70% year-on-year. EBITDA grew 155%, and PAT for the quarter grew 134%, setting a strong tone for the fiscal year ahead. Our total module capacity has touched ~18.7 gigawatts, and our cell capacity is now fully functional and operational at 5.4 gigawatts, the largest cell manufacturing facility of its kind in India. Our order book continues to be strong at INR ~47,000 crores as of September 30, 2025. We are on track with all of our projects and maintaining a very healthy ROCE and ROE of 41.8% and 34.8% respectively.”
— Amit Paithankar, Chief Executive Officer
The company announced ₹8,175 crore in new capex to expand solar, battery, inverter, and hydrogen manufacturing capacity.
“To maximize the industry momentum, we have undertaken several key initiatives this quarter. We have successfully commenced and commercialized an additional 2.75 gigawatts of module manufacturing capacity at our Chikhli facility. Our overall capex program continues with additional INR ~8,175 crores approved by our Board of Directors. We are augmenting our battery energy storage system capacity from 3.5 gigawatts hour to 20 gigawatts hours. The electrolyser manufacturing capacity is being augmented to 1 gigawatt and the inverter manufacturing facility from 3 gigawatts to 4 gigawatts.”
— Amit Paithankar, Chief Executive Officer
Acquisitions in smart meters, transformers, and U.S. solar manufacturing strengthen Waaree’s integration across the renewable chain.
“Smart meters are going to be extremely important components of renewable value chain and hence we have announced 76% stake in Racemosa Energy India. We have acquired 64% stake in Kotsons Private Limited, which marks our entry into the world of transformers. And recently, we have acquired solar manufacturing assets of Meyer Burger in the US, further strengthening our hold in this market.”
— Amit Paithankar, Chief Executive Officer
India’s solar market is seeing strong policy and demand tailwinds, with ALMM extensions and GST cuts improving affordability.
“India’s solar capacity is projected to move more than double from ~127 gigawatts to around 280 gigawatts by 2030. GST cut from 12% to 5% is expected to reduce module and component prices, improving affordability and driving stronger customer demand. Several states are pushing solar adoption aggressively, notably Uttar Pradesh and Maharashtra, which have announced strong incentives under PM Surya Ghar and PM Kusum Yojana. The regulatory environment continues to be conducive with initiatives like extension of ALMM for cells since June 2026 and for ingots and wafers from June 2028, aiming further strengthening India’s domestic value chain from ingots to modules and reduce reliance on imports.”
— Amit Paithankar, Chief Executive Officer
FY26 EBITDA guidance reaffirmed at ₹5,500–6,000 crore as projects progress on schedule.
“All of our projects are progressing as planned. All-in-all, ladies and gentlemen, we reaffirm our FY ‘26 EBITDA guidance in the range of INR 5,500 crores and INR 6,000 crores.”
— Amit Paithankar, Chief Executive Officer
Gross margins remain stable, with DCR modules earning a 300–350 bps margin premium over non-DCR products.
“If you look at the results that we have shown, the margins continue to be stable, and they in fact are increasing versus the trailing quarter as well. And as we look forward, it is important to see that we are always managing Waaree at the gross margin level, because the input cost, as you know, also trends in the direction of the prices. On the gross margin level also, if you see the results, it is pretty much stable. In fact, it has increased also versus the trailing quarter. So, that’s how we continue to monitor or manage the margins. Having good orders and sourcing back-to-back as much as possible, and looking at our manufacturing cost. However, it can be a little different from quarter-to-quarter. And you will see the last two quarters, we have been pretty heavy on exports. Normally, it kind of tapers to around 20%, 25% and that’s what we would like to keep, more diversified segment, so that we can manage the profitability accordingly. DCR has higher margins than the non-DCR. If a segment has about 18% to 19% margin, this will typically be another 300 plus. That’s the kind of spread we get, 300 basis points to 350 basis points plus.”
— Sonal Shrivastava, Chief Financial Officer
Inventory spike of ₹1,300 crore is due to goods in transit for export orders; normalization expected next quarter.
“The main reason for the cash that you see, you will see the CFS statement that my inventory has gone up and this is typically because part of my export orders, which I have actually shipped out, has not reached the customer. So, I don’t recognize that sale and that’s showing up as an inventory in my books. So, what’s going to happen is that it’s going to translate into revenues in the coming quarter and you will then see that bump down eventually. It’s not structural. Typically, goods in transit ranges between INR 300 crores to INR 400 crores. But this time, there’s a bump up to almost INR 1,300 crores. So, you see that will taper out.”
— Sonal Shrivastava, Chief Financial Officer
IRA credits in the U.S. are part of ongoing operations, expected to persist through 2030.
“I would not like to exclude the IRA because the IRA is very much my production and sale related income that I’m getting. So, it’s part of my operation, and as the US operation will ramp up, this number will be there continuously for at least 2030. So, it’s really part of my operations and it’s not a one-off.”
— Sonal Shrivastava, Chief Financial Officer
Waaree avoids using Indian-made cells for U.S. modules to minimize tariffs and comply with FEOC norms.
“Our supply chain is being configured in such a way that it is in complete alignment, first of all, with the prevailing laws and rules, which include FEOC conditions. Our supply chain has to be free of all of those, which we have ensured. And number two, we have also configured it in such a way that the tariff problems associated with that are the lowest. At this point in time, we are not using our own domestic manufactured cells for United States, because that would attract tariffs much higher than if we source it from some other country. So, we are not using India cells for that.”
— Amit Paithankar, Chief Executive Officer
Retail solar sales are rising rapidly post-GST cuts, boosting profitability.
“Retail is also an important component of our overall breakup, which we have not shown here directly. But that’s a segment which is actually increasing and the reason why I mentioned that is because it has got a bearing overall on the profitability. Because these are segments, I mean, export segment, retail segment are inherently segments which have slightly better profitability than the rest of the business. And because of GST changes, we will see that portion of the business also keep going up over the next few quarters. And we should also have a positive bearing on the profitability.”
— Amit Paithankar, Chief Executive Officer
Waaree to invest ₹8,000 crore in battery energy storage systems amid global fivefold capacity growth by 2030.
“The battery energy storage system industry, which is witnessing remarkable transformation globally and in India, is emerging as one of the fastest growing industries for us. With rapid renewable energy expansion, supportive government policies such as the PLI and viability gap funding and continuous advancements of battery technology, the sector is poised for exponential growth. Global battery storage capacity is expected to grow fivefold by 2030, reaching over 1,800 gigawatts hour. In India, government’s ambitious plan is set to develop 236 gigawatts hour of cumulative energy storage by 2032, and that underscores the strategic importance of storage. It is, therefore, the right time for Waaree to enter this important segment, and hence we are making an investment of INR ~8,000 crores in this area.”
— Amit Paithankar, Chief Executive Officer
PLI projects for 6 GW of integrated solar manufacturing are on schedule for 2027 completion; incentives treated as upside
“PLI we have actually won for 6 gigawatts of ingots-wafers, cells and modules. You must have seen that we have actually upped our capacity from 6 gigawatts to 10 gigawatts for ingots and wafers as well as for cells. Those projects are moving right on schedule and on time for cells 2027 and for ingots and wafers 2027 completion. We typically don’t bake in PLI in our overall plans. It’s going to be a cherry on the top as we move forward.”
— Amit Paithankar, Chief Executive Officer
ALMM implementation for solar cells from June 2026 will materially benefit Waaree’s domestic business.
“The demand and supply situation is not going to be dramatically different and the important change that is going to happen is from June 2026 onwards, ALMM for cells will kick in. That will have a positive impact overall on our business.”
— Amit Paithankar, Chief Executive Officer
Integrated backward manufacturing expected to sustain 22–25% EBITDA margins over time.
“Margins on module have reached between 18% to 19%, just the module, normal modules. And with the advent of cell, so that’s going backward and, of course, means a little bit more capex than what you would put in a module. The margin should bump up between 300 to 350 basis points overall on a sustained basis. So, anything between 22% to 25% is a good margin to look at on the backward integration. And that’s what we really want to maintain at around like 24%, 25%.”
— Sonal Shrivastava, Chief Financial Officer
Company targets 25–30% share of India’s DCR/PM Surya Ghar solar market.
“Our attempt is to capture a fairly large element of that. Now, I don’t want to put an exact number to it, but it would be safe to say that I would like to be somewhere between 25% and 30% of the market share for that. So, a fairly large component. All the major government contracts, all the major contracts under PM-KUSUM, under PM Surya Ghar, will necessarily need to have DCR cells. And since most of the value chain would be Indian value chain, we will see that the margins in that segment will be healthy.”
— Amit Paithankar, Chief Executive Officer
Most of the ₹25,000 crore capex will peak in FY27–28, supported by internal cash and pre-arranged funding.
“You can expect around 10%–15% happening this year, 10% to 15% over the next two quarters. Around a significant 50% of the capex expected in FY27 and balance will lie down in FY28. That’s how you can expect the capex outflow to happen. We always try to do the financial closures much ahead of the capex that we do. So, the incremental capex along with the earnings forecasted should be helping us to chalk out the plan in a very steadfast way.”
— Abhishek Pareek, Group Head – Finance
Waaree aims to evolve from a solar module maker to a full energy transition major across technologies.
“We want to be the energy transition major of choice. So, whatever technology, whatever components, whatever ideas are required for energy transition, we should be there and we should be the supplier or vendor of choice. That’s where we start with solar, we go into adjacencies of battery energy storage systems, we go into hydrogen, the component levels like transformers, smart meters, inverters, and many more to come. So, that’s the grand vision.”
— Amit Paithankar, Chief Executive Officer
India’s solar demand is expected to rise sharply as data centers and green hydrogen boost consumption, favoring backward-integrated local players amid Atmanirbharta policy tailwinds.
“Akash, thank you for your questions. The first one relates to what is the demand supply situation evolving in India? I think the first thing that we need to understand and when we put all of these numbers in place, there is a DC capacity and then there is AC capacity and what we need to provide to go to the grid that has about anywhere between 1.3 to 1.4 times difference. So, let’s say I need to add 40 gigawatts on the grid, it actually translates to around 60 to 65 gigawatts of solar panels. And then when you convert it into, let us say, capacity utilization of a typical plant that you have to add another factor of around somewhere around 15% to 20%. So then you are already hovering around, from a module perspective a demand translated into capacity terms around 70–75 odd gigawatts. That’s number one. Number two, in the out years, if you consider 237 odd gigawatts of solar that we need to deploy by 2030 the demand is actually going up. And in the out years, you will see that it is actually going to go to 50, 60, maybe even higher in terms of gigawatts. And what is not factored in there is the potential rise, which will be caused because of two factors, one is data centers and the other one is green hydrogen. So, that is going to add to the demand further. So, if you look into the crystal ball, the demand is actually going to be much higher than what we see at this point in time. So, that’s the demand side. Now, on the supply side, most of these projects will demand cells, which are made in India and increasingly ingots and wafers, which are also made in India. And so the market dynamics is going to be completely altered. The companies which are more and more backward integrated will have the highest chance of success as we move forward, because as a nation, we are moving towards Atmanirbharta.”
— Amit Paithankar, Chief Executive Officer
Yash Highvoltage | Micro Cap | Engineering & Capital Goods
Management is clearly articulating how capacity expansion directly translates into market opportunity expansion, moving upmarket in voltage classes.
“The global transformer bushing market today is estimated to be Rs.25,000 crore and is projected to grow at CAGR of 5.6% through 2034. Within this, our current product range addresses Rs.10,000-12,000 crore. With the new greenfield project scaling up to 550 KV against our present range of 245 KV, our addressable market is set to expand to minimum Rs.15,000 to 16,000 crore.”
- Keyur Shah, Chairman and Managing Director
From a ~INR200 crore revenue base, management is boldly targeting 8-10x growth over 8-10 years while maintaining that even with such growth, they’d still be under 5% market share.
“At present, we hold around 1% of the global addressable market, underscoring the immense scope for ahead growth. We are well on course to deliver multi-fold growth over the next five years, targeting a minimum CAGR of 35%. A company like Yash can aspire to have at least 8x to 10x their revenue in next 8 to 10 years.”
Management sees significantly longer demand runway for bushings (12-13 years) versus transformers (6-7 years) due to high barriers to entry and qualification timelines.
“The transformer demand is expected not to slow down for at least next 6 to 7 years minimum. For bushing players like us, there will be still a huge room for at least 12 to 13 years, because unlike transformers, in bushings there is a huge entry barrier. It takes a lot of time for the end customer, consultant and OEM to gain trust for a new bushing supplier, given the criticality of the bushing application.”
The mismatch between 250+ transformer OEMs expanding and only 12-13 bushing suppliers creates a favorable supply-demand dynamic for years.
“250+ transformer manufacturers today are almost doubling up their capacity. We as the component player are less than 12 or 13 globally. We believe it’s enough room for all bushing players to grow multifold. We don’t see any bloodbath, we don’t see any spoiling of pricing, and everybody would be able to utilize their capacity effectively.”
- Keyur Shah, Chairman and Managing Director
Management sees 30-40% price premium for exports, which will flow through as higher margins as RIP export capability kicks in post-greenfield commissioning.
“The price realization for the same kV class product in a domestic market versus an export market has a delta between 30%-40%. From our OIP experience, export margins are generally much, much, much better when we go outside India to any country. In India we have the highest negotiation, price margin in any export country is much better.”
- Keyur Shah, Chairman and Managing Director
Despite OIP growing well in volume/markets, RIP’s higher value means it will continue dominating revenue mix at 80%+.
“While our contribution from RIP continues to be more than 80%, our OIP and exports are also able to substantially grow. RIPs value-wise are more. So if RIP continues at 80%-85%, but for OIP it becomes difficult to match that pace. And to still be at 18-20% of revenue at almost 70%-80% of the market.”
50-50 JV with Quality Power to revitalize underperforming but well-regarded transformer component brand through combined distribution reach.
“Sukrut is a very old renowned company. Unfortunately, today they are not doing business to what they should. Looking at competition who came much later than them and have done at least 7 times the revenue what Sukrut is doing. With our presence and very good Sukrut products, we believe we should be able to grow at least 8 to 10 times the Sukrut top line in next 5-6 years.”
Low revenue contribution combined with high criticality creates structural preference for outsourcing among transformer OEMs.
“Bushing is a connection to transformer, like the transformer is heart of a substation, then bushing is gateway to that heart. For any transformer company, bushing doesn’t contribute more than 2-3% of their annual revenue. So generally people would prefer to outsource it, because it is very critical, and if there is any issue, their transformer guarantee warranty can be extended to much longer period.”
- Keyur Shah, Chairman and Managing Director
Even large OEMs often outsource due to complexity and focus considerations, creating persistent demand for specialists.
“There are transformer companies like Hitachi, Siemens, GE, Crompton Greaves who have been producing bushings for captive consumption. But majority like Hyundai, WEG, Volt amp and so many companies prefer to outsource. Bushing is high-skilled market for people like us who have 100% focus only on bushing.”
Management sees no pass-through of transformer pricing pressure to bushings due to supply constraints and order selectivity.
“Transformer players are expected to have some price war in next 3-4 years. But we as bushing players might still have option to select which orders we want to do and where we want to allocate capacity. It is not necessary that we would be reducing our prices just to satisfy customer’s expectation. The number of orders out there would be much more than what we can deliver. The shortage is going to continue at least 8-10 years for us.”
Strategic inventory build to manage supply chain volatility and enable faster delivery, not a sign of demand weakness.
“Once upon a time there was concept of just in time. But now it is better to have available components in hand ready and just follow up for shortage component and then deliver fast. Sometimes we might need to have inventory more because one of the other components has yet not come. So inventory needs to be higher, but we are still comfortable.”
Management acknowledges competitive landscape while emphasizing the limited number of players relative to market size.
“Domestic, also there is a competition. We cannot refuse that we are the only one. There is Crompton Greaves who is already into the market. There is Massa Izolyator Mehru who is making our attribution similar to us. There is Hitachi in India. They are also having an assembly model as what we have. There might be one or two who might be as far as. That’s the local situation.”
Three major players (Hitachi, Trench, GE) control 80% of the high-voltage bushing market globally, with remaining 20% fragmented among smaller specialists.
“The majority competition in this segment globally comes from very large players like Hitachi or Trench or GE, in Italy. These are the three very large players which control close to 80% of the market. And the balanced market has players like us or Crompton Greaves or Moser-Glaser, a couple of Chinese and also a player like Russian, Mehru Izolyator.”
- Keyur Shah, Chairman and Managing Director
Shilchar Technologies | Small Cap | Engineering & Capital Goods
Announcing the largest capacity expansion in company history, emphasizing internal funding and strategic positioning for future growth
“A significant milestone for Shilchar this quarter was announcing our Gavasad expansion 3 project. This will be the largest capacity addition in our company’s history, adding 6,500 MVA and bringing our total to 14,000 MVA by April 2027. This expansion is funded entirely through internal accruals with a capital outlay of approximately INR90 crores.”
— Aashay Shah, Executive Director
Explaining the strategic rationale for entering 220 kV segment and how it will complement existing business with higher margins
“It’s mainly volume and most of our customers who are buying for us, they really look at quality and they don’t mind paying a premium to us for the transformers they buy from us. So we are expecting them to have the same kind of approach for these power transformers. It will increase our top line and the bottom line as well.”
— Aashay Shah, Executive Director
Addressing the 50% U.S. tariff implemented from August 27, 2025, and its impact on business momentum and customer behavior
“There have been some recent changes in policy landscape in the United States. The new tariff measures implemented from August 27 have introduced some uncertainties. Despite these developments, underlying demand and customer engagements in the United States remain strong. Notably, business momentum in the United States market remains healthy so far even post policy change.”
Explaining who is absorbing the 50% tariff cost and why customers continue to buy despite the significant price increase
“The customers are ready to pay for it as of now because our competitors for these markets, they are in different countries, which also have tariffs... They are only taking the full brunt of the duty... They don’t have much choice because our competitors are in various countries where they have kept tariff also. So they don’t have much of a choice. In order to fulfil their projects, they will have to bear this cost.”
Addressing why U.S. local manufacturing is not a viable competitive threat despite 50% tariffs on imports
“It doesn’t make sense in the U.S. because this is a very labour-intensive manufacturing product. So it becomes very expensive to manufacture there.”
Explaining premium pricing strategy and customer willingness to pay despite competitive pressures and new capacity additions in the industry
“Most of our domestic customers, they prefer buying from us and they don’t mind paying a premium to us as well... We don’t see that happening [margin pressure] for next at least three, four years.”
Articulating the company’s quality-driven competitive advantage that justifies premium pricing and customer loyalty
“Our product gives very little problem at site. In case there is any issue, our service team responds to them very quickly, so customer really appreciates that. And most of our customers, if you have seen, I mean, they are all repeat customers. They have been working with us over the last 10, 15 years.”
— Aashay Shah, Executive Director
Explaining the structural drivers supporting extended growth cycle beyond traditional 5-7 year industry cycles, addressing investor questions about cyclicality
“It’s just that government is pushing really hard for 100% electrification in India. And they are, I mean, focusing a lot on renewable energy also. So we already have a lot of capacity to expand in the renewable energy space... In order to fulfil what the government is targeting, it will take at least five to 6 years. Export-wise, In the U.S., the data centers because of artificial intelligence, because of that the demand has really shot up.”
Providing India’s solar capacity addition data to support strong domestic demand outlook
“According to Ministry of New and Renewable Energy, India commissioned approximately 21.7 gigawatts of solar capacity in first half of FY ‘26. This strong sectorial momentum is translating directly into sustained order inflows and robust visibility across the domestic segments positioning us well for further growth.”
Explaining domestic revenue composition across generation, transmission, and distribution segments, highlighting dominance in renewable energy
“We are mainly manufacturing special purpose transformers for solar and wind energy sector and we are growing in that segment itself. So now with the 220 kV class transformers, those will be used in the transmission side. And also, we have very strong customer hold for the distribution transformers as well... Right now, generation of solar and wind is a major chunk. It will be about 80% of domestic revenue.”
— Aashay Shah, Executive Director
Financial Services
Jana Small Finance Bank | Small Cap | Financial Services
The bank is fundamentally reshaping its risk profile by moving most unsecured MFI lending under CGFMU/CGTMSE government guarantee programs to protect against external shocks.
“As of 30th September, 72.5% of our book is secured, 13.5% is unsecured but under guarantee programs, and 14% is unsecured outside guarantee program. By March 2026, we expect 74-75% secured, 16-17% unsecured under guarantee, and only 8-10% unsecured without guarantee.”
-- Ajay Kanwal, MD & CEO
While the guarantee program costs money this year with minimal recovery, the economics dramatically improve next year when claims can be processed.
“Next year (FY27), we expect to pay INR 80-90 crore in guarantee premiums and receive INR 120-144 crore from the guarantee trust for credit costs. By March 27, 96% of the unsecured portfolio will be under guarantee. This will improve ROAs by 50-70 bps.”
After 5 quarters of stress, the MFI business is finally bottoming out with stable collections and controlled costs.
“The portfolio is stabilizing. We’ve seen 0.3% growth in Q2. Employee headcount in MFI hasn’t increased - in fact, we’ve seen a marginal drop. The portfolio was declining, now it’s arrested at Q2. We expect fresh flows in Q3 to be much lower. By Q3, all lines will show positivity, with even more in Q4.”
Management is refreshingly cautious about MFI sector health despite stabilization, citing rising leverage and regulatory risks.
“What do we see in the industry on MFI? I would be very guarded. It depends on every player’s strategy. The amount we lend per customer has been going up even through the last 6 quarters. Maybe we’re getting out of the problem, but I’m not sure we’re not creating the next one. You could get an ordinance from some state government that could cause problems in future.”
Management wants one more quarter of MFI data before committing to profit guidance, showing disciplined conservatism.
“On credit costs for next year, we can give guidance - at least 40-50 bps improvement from this year. What’s unclear is unsecured growth. Once we exit Q3, we’ll have a fair idea of what unsecured will grow, then we’ll give good PAT guidance for next year. The secured book performance and credit cost under guarantee is very clear to us.”
The bank is well-positioned for the upcoming Expected Credit Loss norms with minimal impact expected.
“In 2 years when ECL comes, we should be 80% secured and 19% under guarantee program. Everything under guarantee doesn’t require ECL due to sovereign guarantee. Our secured book will have completed 5 years by then - enough time to judge credit losses. We’re already carrying INR 222 crore accelerated provision above regulatory requirements.”
-- Ajay Kanwal, MD & CEO
Can Fin Homes | Small Cap | Financial Services
Announcing quarterly disbursement achievement and highlighting that both Q1 and Q2 FY’26 set new records for their respective quarters
“In terms of the disbursement for Q2, the company had given a guidance of INR2,500 crores, and we have achieved that. And in terms of disbursement for the first time, in the second quarter, we have crossed the number of INR2,500 crores in terms of disbursement. In fact, in Q1 also, it was the first time that for any of the Q1 in the year, we had crossed the number of INR2,000 crores.”
— Suresh Iyer, Managing Director and CEO
Explaining the dramatic turnaround in Karnataka state performance, from INR78 crores monthly disbursement last year to INR270 crores in September 2025
“Karnataka, in fact, in the month of September, we have touched a number of INR270 crores, whereas last year in Q2, we had touched INR78 crores, and we were roughly doing about INR275 crores on an average. So we are almost back to that number. Karnataka state has recently made a couple of announcements. One is that B-Khata properties can also be converted to A-Khata. And second thing is, even for other properties, E-Khata will be possible within 15 days’ time.”
— Suresh Iyer, Managing Director and CEO
Providing outlook on when Karnataka will return to positive YTD growth after previous challenges with property registration issues
“With this kind of a INR270 crores to INR280 crores kind of a disbursement also, we will easily be able to not only move back to the green, but we should be able to do a 3% to 4% YTD growth in Karnataka by the end of third quarter itself. Because last year in Q3 was badly hit because of our -- we were almost doing INR150 crores, INR160 crores on the average disbursement in Karnataka because of the e-khata.”
— Suresh Iyer, Managing Director and CEO
Discussing Telangana’s slower recovery trajectory compared to Karnataka, with focus on reducing negative growth from -30% to -27%
“In terms of Telangana, where the negative was much higher, it was almost 30%. We have been able to bring down the negative growth in Telangana from 30% to 27%. Month-on-month in Telangana like in Karnataka, we’ve had a positive growth month each 1 being better than the previous. But Telangana will take a little longer time. So probably in Q4 is when we will move into the green.”
— Suresh Iyer, Managing Director and CEO
Setting realistic expectations for Telangana recovery, targeting INR120-125 crores monthly disbursement instead of historical INR140 crores
“Telangana also, in fact, in this month in September, we were able to cross INR100 crores. But Telangana, I would still feel that INR140 is not a number we would want to touch. We would-be really happy with INR120 crores, INR125 crores. Because that is a state where our delinquencies are also, as I mentioned, slightly moved up. So we would like to focus on that as well.”
— Suresh Iyer, Managing Director and CEO
Analyzing the INR200 crores increase in prepayments, breaking down into loan closures versus partial prepayments as an indicator of improved customer liquidity
“We’ve had a slightly higher prepayments because of which our AUM growth has been a little lower... this INR200 crores additional prepayment that was witnessed is not entirely because of takeover also. Detailed analysis shows that it’s mainly -- while, INR120 crores prepayment and loan closures have increased which may not necessarily be because of takeovers, but closures have increased by INR120 crores. But the remaining INR80 crores is because of customers paying more than the regular EMIs and reducing their liabilities, but the loans are still live in our books.”
Explaining the remarkably low credit costs in Q2 due to broad-based delinquency improvements
“As a result of this, our credit costs have been very, very low. In fact, only for the growth we’ve had to provide for the provisioning of INR3 crores. Otherwise, in terms of the delinquent accounts, there is almost 0 kind of provisioning that we’ve had to make in this quarter.”
— Suresh Iyer, Managing Director and CEO
Explaining the strategic shift from MCLR to repo-linked borrowing that enabled full benefit capture from rate cuts
“In case of bank borrowings, we took a conscious call about two years back that we will move all our MCLR linked loans to Repo linked loans because even when the repo rate cuts are announced, the MCLR do not come down into the same kind of a thing. In fact, they don’t actually come down because banks also have to protect their spread. So we consciously moved and that has helped us in our liability or cost of borrowing management.”
— Suresh Iyer, Managing Director and CEO
Detailing current borrowing costs across different funding sources, highlighting competitive rates achieved
“Today, the bank term loans that we are raising, the highest cost is around 7.10%, the incremental sanctions that we are receiving, that is for a long-term rate of interest. If it is for a short term or WCDL kind of a limit that is being sanctioned, it is even lower than 7%, below 7%. So in fact, our highest cost borrowing from banks is around 7.10%.”
— Suresh Iyer, Managing Director and CEO
Energy
Mangalore Refinery and Petrochemicals Limited (MRPL) | Small Cap | Energy
Providing forward-looking guidance on throughput and margins.
“We expect Q3 also to be above 4.43 MMT of crude processing. And with GRMs already showing stronger in October, that is with the crude price, if the crude price does not fluctuate too much, we should also be able to post good numbers going ahead in the rest of the remaining quarters.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Responding to concerns about potential US pressure on Russian crude imports.
“There is some kind of a tweet which has come from the US President today. But, you know, there is another news which has also come saying that we will be doing what is best in the Country’s interest and that’s what the government has made a statement, also made a counter statement. Now, going forward, yes, it is not just the Russian barrel that we are going to look at. We have already started looking at other crudes which are available on discount by our own methods of sourcing crude. And on an economic basis, I am confident that we will be able to sail through.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Clarifying the consistency of Russian crude sourcing at 30-40% of the crude basket.
“There has not been much variation from the kind of crude, the Russian barrels that we have been sourcing in the previous quarters, no much variation. Only during the month of, in the first quarter there was some reduction because we had a plant, and to that extent only we have reduced. Or else we are now going back at the kind of levels in which we were there in the previous quarters.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Explaining the contractual nature of Russian crude purchases.
“These are all, I would say, on a spot basis. We don’t have a kind of term deals for Russian supplies.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Explaining the economics and risk mitigation benefits of Russian crude sourcing.
“Russian discount is to be treated at two levels. One is the direct kind of discount which you look at, which could vary anywhere between half a dollar to maybe about four dollars. That is the range we have seen in the past. It is not fixed for each cargo which comes. More importantly, the second part is the timing issue. These are all crudes which are on delivered basis. So, it derisks our timing issue. And just to give a sense of proportion, even if two crudes are at level, the preference will be for Russian barrels just because of the contractual terms. It is on delivered basis.”
-- Devendra Kumar, Director of Finance
Addressing crude sourcing flexibility and economic optimization approach.
“We see any crude that we source is done on an economic basis. So, the US crude is also there in the basket when we carry out the evaluation. Currently, we are not, it is not getting picked up on an economic basis as of now. But going forward, the situation can be different. We did buy a Russian crude in the last quarter of, in the last financial year, we had purchased one cargo of US crude.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Describing the future-ready approach to retail outlets with alternate fuel infrastructure.
“All our retail outlets would feature one alternate fuel option. It could be CNG or it could be an EV charger. We look at it as a mix of requirement of the customers. So, many places we would install chargers which are capable for two and three wheelers because that is the current market space. And some of the larger highway outlets, we would be also looking at larger charging stations in collaboration with some other companies.”
-- Deepak Prabhakar, ED Marketing
Explaining the structural drivers behind strong refining cracks beyond geopolitical factors.
“There is one more point which is there. There are some of these refineries which are getting closed down. That is also adding into the supply-demand issue. Like we have seen a couple of refineries getting closed down in the US. Australia, we understand only one refinery is operating now. That is also on the verge of probably getting closed down, something like that. New Zealand has practically closed down the refinery. So, apart from the geopolitical things, some of these refineries getting closed down is also pushing the supply-demand imbalance.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Providing domestic demand outlook and impact of recent policy changes.
“The domestic demand, as I mentioned, MS is resilient and we are expecting it to grow. With the recent changes in the GST also, we have seen the kind of sales that have got picked up in the automobile sector. The diesel demand is also, now that monsoons are over and there was a good monsoon, we are expecting the diesel demand also to come back soon. And we are seeing that now. It’s almost 2-3% there is a demand for diesel also.”
-- M. Shyamprasad Kamath, Managing Director & CEO
Indian Oil Corp. | Large Cap | Energy
[Concall]
Ethanol blending at 19.85% exceeding industry 19.83%; 31 GW renewable target by 2030 with 10 KTA green hydrogen plant at Panipat and 15 fuel cell buses under trials.
“During April to September 2025 we have achieved ethanol blending percentage of 19.85% on all India basis which is slightly higher than the industry blending percentage of 19.83%. The company is working to develop 31 gigawatt of renewable energy by 2030. We are setting up the country’s largest green hydrogen plant of 10 KTA at Panipat Refinery to promote hydrogen mobility. We have set up India’s first hydrogen dispensing station at our R&D center in Faridabad followed by a station in Gujarat refinery where field trials on fuel cell buses are being undertaken. Indian Oil has introduced 15 hydrogen fuel cell buses along with Tata Motors Limited for operational testing in Delhi NCR and Gujarat regions.”
– Anujendra Jain, Director Finance
Trading
Aelea Commodities | Nano Cap | Trading
Explaining why percentage-based margin analysis is misleading in a commodity business where absolute margins remain stable but percentages fluctuate with price movements
“In percentage terms, calculation of margins is not a very right number. If tomorrow the price, let’s say half, then this same margin may, in a percentage, double up. So that’s something which you could see my previous calls also, that you can’t just have a percentage fixed.”
— Hozefa Jawadwala, Chairman and Managing Director & CEO
Correcting investor assumptions about business seasonality, clarifying that H2 is typically stronger due to Diwali, wedding season, and summer ice cream demand
“Last year was an exception. It is usually the other way around. It is the second half, which is heavy. You have the Diwali season, you have the wedding season, you have summers, which requires a lot of ice creams and everything. So, it’s the second half typically, which is heavy.”
Explaining the financial viability of solar investment, noting that captive solar power costs 30-35% of grid power with an attractive 27-28% IRR
“The power that you have from a captive solar is almost at 30%-35% of the grid power. So, that significantly makes economics for us... it has its payback which is typically around an IRR of 27%, 28%.”
— Hozefa Jawadwala, Chairman and Managing Director & CEO
Discussing cashew commodity price trends over past 12 months and providing outlook based on supply-demand dynamics with significant new crop additions
“From a cashew perspective these prices since last 12 months has been getting -- is in a downward trajectory. The pace has significantly reduced... If you purely see from a demand supply perspective, for the next 12 months I can say that there is a significant crop that has been added in the last 1.5 years, 2 years into the market. And that would keep the pressure on the prices to rise from here.”
Explaining why current lower price environment benefits consumption growth, noting that cashew has limited substitution risk with 6-7% annual consumption growth
“From a growth perspective, from a consumption perspective, this is a good time to be there... Every year you see around 6% to 7% growth in the consumption.”
— Hozefa Jawadwala, Chairman and Managing Director & CEO
Addressing competitive pricing pressures and explaining how Aelea’s low-cost position as the cheapest processor provides resilience even in cutthroat competition scenarios
“We cannot say that we will not have this issue if everybody starts doing a cutthroat competition. But even at the cutthroat competition, we have significant margins compared to industry average. So, we are at the cheapest level of processors. And that allows us to stay afloat irrespective.”
Providing detailed input-output conversion ratios for cashew processing, explaining how 100 kg RCN yields 23 kg edible cashew and 14.4 kg oil
“100 kgs of raw cashew nuts going in. You will have 70 kgs of cashew shell and 30 kgs of cashew with the skin. Of that skin will be 7 kgs and typically you will get 23 kgs as your edible cashew. From the 70 kgs of the shell that you have got, typically the oil would be around 22%, which is 14.4 kgs from a raw cashew nuts equivalent.”
Describing India’s fragmented cashew processing industry structure with 2,000 processors, 95% having less than 10 TPD capacity lacking scale and mechanization
“We have roughly around 2,000 processors in India... 95% of them would be less than 10 tons per day capacity. Their mechanization levels are not up to the levels that we have. Their ability to buy and scale, get the economies of scale is not up to the levels that we have.”
Comparing Aelea’s technology advantage versus global competitors in Vietnam and Africa, highlighting proprietary inputs and latest automation incorporated in their facility
“If you compare it from a global perspective, let’s say Vietnam or any unit that has come in Africa in the last two to three years, we have an advantage because of the latest technologies and the kind of proprietary inputs that we have incorporated in our factory.”
Discussing sourcing of advanced processing machinery with AI capabilities, noting that cutting-edge technology comes from China and Europe, not yet available in Vietnam/Africa
“It is indigenous as well as imported. A lot of things have to get imported. There are technologies significantly advanced with artificial intelligence built in... these technologies are not there from Vietnam or Africa. Mainly that technologies are ideally from China or Europe.”
— Hozefa Jawadwala, Chairman and Managing Director & CEO
FMCG
Hindustan Unilever | Large Cap | FMCG
Discussing the government’s GST rate reduction affecting ~40% of HUL’s portfolio.
“From a long-term perspective, these reforms are a welcome move. By enhancing affordability, they are expected to boost disposable income, uplift consumer sentiment, and unlock meaningful opportunities for premiumization across categories. These reforms will serve as a structural growth enabler, reinforcing our long-term value creation agenda.”
— Priya Nair, CEO
Quantifying temporary volume impact from trade destocking and consumer delays during GST transition.
“We estimate that this quarter, we saw overall at an aggregate HUL level, up to 2% impact, largely volume of GST transition.”
— Ritesh Tiwari, CFO
Clarifying strategic priority between volume-led growth and margins.
“Our focus, obsession is going to be on volume-led revenue growth. So very simply, if I had to tell you how we will look at the business, it will be unblinkingly looking at growth first. When we do that, we have the right financial leverage to deliver the operating margin of the business.”
— Priya Nair, CEO
Explaining operational response to GST cuts via pricing and pack size changes.
“We acted with agility, implementing pricing and grammage interventions across more than 1,200 SKUs. We ensured that we passed on the entire benefit of this GST rate reduction to the consumers.”
— Ritesh Tiwari, CFO
Modernizing brands for younger consumers and driving premium innovation.
“If you look at brands, brands no longer it’s not just good enough to have higher brand equity, you need to have brands that are truly desired and desirable by consumers. Today, we have almost 400 million Gen Z consumers in India. And these consumers are indeed driving change and transformation in India.”
— Priya Nair, CEO
Reinforcing brand and distribution leadership across India.
“HUL has consistently maintained market leadership, holding the number 1 position in more than 85% of the business. This leadership is the result of a portfolio that’s been built with rigor across demand spaces and price tiers, designed to serve every Indian household.”
— Priya Nair, CEO
Commenting on demand stability across rural and urban markets.
“At this stage where we see the FMCG market, both are contributing. Urban is growing and so is rural growing. And we have used the word where we do see this now demand trends to be stable, which we are not seeing big ups and big downs when I look at moving annual total for the last 12 months’ time.”
— Ritesh Tiwari, CFO
Category-wise price elasticity and GST benefit realization.
“What are the categories which we know are more elastic to price. Skin Cleansing and Tea... But take another example of Home Care. Even in the peak when we had more than 20% price growth, we still saw a mid-single digit volume growth because we have seen a category like Home Care more resilient to price changes.”
H2 demand outlook and weather-related risks.
“Overall, we expect growth of second half of this financial year to be better than the first half. We remain vigilant about the evolving impact of weather patterns—particularly as the winter season approaches and the effects of a prolonged monsoon begin to play out.”
— Ritesh Tiwari, CFO
Premiumization strategy in soaps and emerging body wash opportunity.
“What augurs well for HUL is the double-digit growth of premium soaps, and this is an area, again, we will continue to focus. Here again, liquids and body wash is under 2% penetration in India, and our job as the market leaders of soaps is to grow and develop the markets towards liquids.”
— Priya Nair, CEO
Expected timeline for normalization post-GST implementation.
“The GST-related impact continues through October. We anticipate normal trading conditions starting early November, once prices stabilise, paving the way for a gradual and sustained market recovery.”
— Ritesh Tiwari, CFO
Varun Beverages | Large Cap | FMCG
[Concall]
Chairman signals preparedness to enter 10 rupee price point if market share threatened, currently attributing weakness to weather with October delivering double-digit growth.
“10 rupees is such an interesting price point. If you all go back 20 years and go back to the Pepsi time when we had brought the price down to 5 rupees which was at that time mainly Coke and us I mean I remember that we could not we ran the lines 24 hours and we couldn’t produce enough. So I think 10 rupees is such an affordable you can’t even get a cup of tea today for 10 rupees the small cup of tea. It’s a very aggressive price point which our competitors have decided to put and this will completely enhance the rural and semi-rural markets and I think we are also reasonably prepared and whatever the market requires we’ll be in the market and expand the market. If we see that our market share is being taken drastically we will come to the party. At the moment we see it’s the weather which is only making the issue. As soon as the weather changes, if you look at October for example for the next quarter as soon as the weather has changed we are growing in double digits. So I am very happy with double digit growth.”
– Ravi Jaipuria, Chairman
Carlsberg distribution agreement for beer in multiple African countries using existing VBL infrastructure, targeting fragmented markets dominated by single players with common go-to-market infrastructure.
“We are also diversifying our product offerings and certain African subsidiaries of VBL shall test market beer in their territories through an exclusive distribution agreement with Carlsberg breweries for the Carlsberg brand. In Africa we don’t have the challenges what India has that restrictions from the government that it has to be a separate and it so we have the same go to market our trucks can be loaded on the same trucks can be loaded same people can sell the products so it becomes much easier and much without extra expense expandable and there is a huge scope on that. Most of the countries there is individual players running beer business in the country. So it’s a golden opportunity for us. We are going to test the market and as soon as we see the test coming right, we’ll go forward with it.”
– Ravi Jaipuria, Chairman
GST 2.0 cuts benefiting 25% of India portfolio with full benefit passed to consumers; minor September disruption from distributor destocking but no major operational impact.
“The reduction in GST rates across key categories including value added dairy products, juice based drinks, soda, packaged drinking water represents a structural positive for the company. Directly benefiting nearly 1/4 of our portfolio in India. By passing on the full benefit of the rate reduction to consumers, we expect to drive category expansion and support sustained demand growth over time. It affected slightly in the September quarter because lot of people could not initially understand it and everybody downsized their stock levels. But we were able to make sure that the goods were sent to them after the GST date and we it affected for a few days and then of course Diwali affected a little bit but otherwise it was not a major issue for us.”
– Raj Gandhi, President
Nimbu hydration category up 50%+ and value-added dairy up nearly 100%; new energy drink Adrenaline Rush launched at 60 rupee price point targeting mid-premium segment between Sting and Red Bull.
“We’ve had tremendous growth in our hydration category which is Nimbu we’ve grown more than 50% in that and we’ve had a excellent growth in our value added dairy we’ve practically grown at about 100%. And we see both these categories still firing and doing extremely well. If the weather was slightly favorable, I think they would have done it much better than what they have. We’ve come back with a much better product and a product which is on medium priced not at the price of Sting but much higher price and not at the price of Red Bull. It’s a medium price where it’s priced at 60 rupees and this is a very fabulous product which we have just launched actually day before yesterday only and it’s called Adrenaline Rush and we think there is a huge market for this.”
– Ravi Jaipuria, Chairman
Software Services
Onward Technologies | Nano Cap | Software Services
Highlighting the strategic transformation from domestic to global markets.
“Just to reemphasize that 5 years ago, our business was primarily from the India market. Now our business is predominantly from the global market, which is the North American and European customers. As I’ve mentioned in previous earnings calls, we expect our headcount to remain relatively stable over the next couple of years, with a possible 10–20% increase. And most of our growth will continue to come from the North American and European markets.”
-- Jigar Mehta, Managing Director
Discussing significant infrastructure investments to support growth.
“In terms of the infrastructure, the last quarter and last 6 months have been the most exciting for us. We’ve been upgrading our infrastructure across all our delivery centres in India. Our Bangalore and Hyderabad centres are relatively new and operating very well, while our Pune and Chennai facilities have been upgraded substantially. Both offices are now fully operational.”
-- Jigar Mehta, Managing Director
Explaining the runway for further margin expansion through automation and geographic expansion.
“Absolutely. I continue to believe that we still have a huge runway and that’s predominantly driven by two points. First one is, we’re still at a very early stage in terms of automation, which will improve further efficiency across the organisation. For example, our books now close by the 5th of the month. Our finance team, our HR team, our CIO functions are doing a great job and we’re making good progress there. On the client side, we have a huge runway because we are investing heavily to enter the U.S and Europe.”
-- Jigar Mehta, Managing Director
Describing unprecedented demand growth in the US market.
“Absolutely, in U.S., the demand is growing at a speed I’ve never seen before. A lot of positive things are happening across the manufacturing industry. There’s a tremendous push for companies to move towards AI. We still have to build more capability in that, and we are doing that. We see continuous improvement and opportunities as we enter 2026. That’s what we’re going to be investing in.”
-- Jigar Mehta, Managing Director
Providing outlook on European market recovery.
“In terms of Europe, the last quarter has been slow for us, but I do believe Europe is also on the verge of growth because they also will have to invest heavily in data center, cloud, and AI. And I do believe that’s going to be a runway not only for us, but also for other tech companies that have built the competencies and capabilities.”
-- Jigar Mehta, Managing Director
Describing the strategic shift from mechanical engineering to digital and AI services.
“As you know, we started very well on the mechanical side and we continue to invest in robotics and manufacturing engineering, but that area is becoming more and more commoditized. Our second area, where we are spending our time, energy and investments, is on the digital side and now more and more on AI where the opportunity is huge, and we are continuously investing behind that. We are hiring a lot of SMEs and delivery leaders to build more capabilities, and the new infrastructure in Pune and Chennai is also helping because we have more space to set up labs, etc.”
-- Jigar Mehta, Managing Director
Providing realistic Q3 expectations around furloughs.
“Q3 is predominantly a slow quarter. There are furloughs, which sort of continues from the pandemic era. It sounds like ages ago, but it still continues in some clients. Most clients have stopped, which I think is a positive sign. The strange part about furloughs is nobody knows till around December 15, whether there’s going to be furloughs. It’s not something we’re able to predict. As of today, we only have two clients who have sent an e-mail saying they plan to continue furlough from last year because they have to save costs, and these are massive companies.”
-- Jigar Mehta, Managing Director
Providing timeline and targets for healthcare vertical maturation.
“Healthcare has been tricky for us a bit. As I said, we won some great clients and we’re building capabilities. We started winning a few more clients, but we got distracted. Now we’re focusing on the main clients, and we just need to deepen in terms of mining or winning deals from our existing clients. We brought the focus back last quarter, and we will see a lot more progress in 2026, both in terms of revenue growth and growth from existing clients, which will all shoot towards reaching $1 million. Just to give a perspective, in our industrial and our automotive clients, it took us 5 years to get to $1 million with those clients. In healthcare, we’re trying to reduce that to 3 years.”
-- Jigar Mehta, Managing Director
Real Estate
PSP Projects | Small Cap | Real Estate
Highlighting exceptional execution capability and engineering excellence that compressed three months of work into 54 hours, demonstrating the company’s technical prowess.
“During the quarter, the company set a world record by completing a continuous concrete pour of 24,000 cubic meters in just 54 hours for the foundation of the 504-feet Vishv Umiya Dham Temple in Ahmedabad. This achievement, recognized by the Golden Book of World Records, represents the world’s largest raft foundation for a religious structure... The project generated Rs. 37 crore revenue in Q2FY25 for work that would have normally taken three months.”
-- Pooja Patel, CEO
Demonstrating strong order momentum with Adani becoming the majority client, transforming PSP’s business model.
“As on 30 September 2025, the company reported an outstanding order book of Rs.9,883 crore, a YoY growth of 51%. The order inflow was at Rs. 4,011 crore (excluding GST) during the same period. Of the current outstanding order book, Adani projects comprise of 56% and balance are non-Adani projects.”
-- Pooja Patel, CEO
Highlighting dramatically improved working capital dynamics with 7-day payment for 75% of billings and 30 days for remaining 25%, with 10% interest-free mobilization advance.
“After joining partnership with Adani, they themselves have a CAPEX of more than 2 lakh crores in next 1.5-2 years... the conditions of contract, the way it is decided with Adani Group, it is 10% mobilization advance and most of the payments are being approved within seven days for 75% and maximum to 30 days for first 25% is approved. So probably this will help company a lot in terms of reducing the debt level and at the same time, minimize our working capital.”
-- P.S. Patel, Chairman & MD
Addressing previous labor shortage concerns (37% deficit in Q1), confirming full availability now with only temporary 10-12% Diwali-related shortfall.
“After 1st Quarter, July onwards there is a full availability of labor. But just because of heavy monsoon in Gujarat, it went up to August and September, that has impacted on revenue but not because of the labor availability. Presently we can say that there can be a shortfall of 10%-12% just because of Diwali. But overall, the full strength of labor is available now as what we have done in the 2nd Quarter and probably 3rd Quarter also will be in better position as now availability of labor will not be an issue to the company.”
Positioning for Commonwealth Games 2030 stadium/infrastructure projects in Ahmedabad worth Rs. 800-1,000 crore, with tenders expected post-Diwali 2025.
“Probably, we are into discussion and what we have heard before two days that now it is being declared that Ahmedabad is going to host Commonwealth and we have heard from the market also that the designs and everything is ready. So, probably, the tender should come any time after Diwali... the size of the project will be more than Rs. 800 crores to Rs, 1000 crores. Of course, we will be bidding because the qualifying criteria will help us for a niche competition.”
Addressing why Rs. 15,000 crore order book may yield only Rs. 4,000+ crore FY27 revenue - Mumbai projects (Dharavi) still in challenging substructure phase with sheet piling/excavation delays.
“You’re absolutely right — with a large order book, we should ideally be able to deliver stronger performance. However, at present, many of our projects, especially in Mumbai, are facing delays due to the nature of work. Sheet piling and excavation in Mumbai typically take considerable time. For instance, in the two Dharavi projects that began about four months ago, excavation work has yet to commence, posing some challenges at the substructure stage.”
-- P.S. Patel, Chairman & MD
Providing granular project-level updates showing most projects progressing well (Airport, GBRC, SMC, RVNL) with only GMC facing continued land acquisition issues.
“The work execution at the Ahmedabad Airport cluster has geared up strongly with reasonable work finishing at a faster pace. The GBRC project is going on steady and as per planning. The SMC and RVNL projects are going smoothly now. We will see good execution and numbers flowing in during H2FY26 due to finishing and MEP activities taking place at these projects... At GMC, the problem still persist, work is on hold due to land acquisition.”
-- Pooja Patel, CEO
Healthcare
Acutaas Chemicals | Small Cap | Healthcare
Providing timeline and confidence on the battery chemicals vertical.
“In our battery chemical business, we have successfully secured multiple customers across diverse geographies. Production is expected to commence in Q4 FY ‘26 once our ongoing capex is completed. We are confident this segment will emerge as a key growth driver going forward.”
-- Naresh Patel, Chairman & Managing Director
Setting realistic expectations for semiconductor chemicals ramp-up.
“For semiconductor chemicals, our engagement with new customers in Korea, Japan and Taiwan through Baba Fine Chemicals continues to progress for newer products. While there are some products, which will start in the near term, they are small in size, and we anticipate that it will take some time before we see meaningful contributions.”
-- Naresh Patel, Chairman & Managing Director
Announcing the Korea JV groundbreaking and revenue contribution timeline.
“Our new joint venture in Korea, Indichem also marks a major milestone in our international expansion journey. The groundbreaking ceremony took place last month, and capex activities are now underway. This venture is expected to start contributing to revenues from H2 FY ‘27.”
-- Naresh Patel, Chairman & Managing Director
Explaining the equity structure and value contribution from each JV partner.
“In South Korean JV, we are the investment partner with 75% investment and 25% is with our Korean partner who will bring their technology, their market as well as the production capability. As well as the supply of starting material.”
-- Abhishek Patel, Vice President, Strategy & Naresh Patel, CMD
Clarifying that the Korea and India semiconductor businesses serve different markets with different products.
“Both the business of semiconductor in India through Baba Fine Chem and in Korea through Indichem are completely different business verticals, no kind of connection. Related to products, which are going to get developed or manufactured in Indichem, actually, we have already mentioned that those are more value-added products than those traditional product in Baba Fine Chem.”
-- Abhishek Patel, Vice President, Strategy
Providing update on CDMO project progress and validation milestones.
“Our ongoing CDMO projects are progressing in line with expectations and expected to start contributing by end of FY ‘26, subject to regulatory approvals. As Naresh bhai highlighted, our CDMO pipeline continues to expand. And during the last quarter, we dispatched a couple of validation batches for new products, which mark important progress in scaling this vertical.”
-- Abhishek Patel, Vice President, Strategy
Clarifying that CDMO is the primary growth driver within pharma intermediates.
“Related to your question of Pharma business split between CDMO and non-CDMO, we are not actually giving the bifurcation. But in terms of growth, the higher growth is coming from the CDMO segment as it was earlier expected than the traditional business. And going forward also, that CDMO business will definitely have a better growth than the traditional Pharma Intermediates business.”
-- Abhishek Patel, Vice President, Strategy
Explaining competitive advantages and barriers to entry in CDMO business.
“CDMO business, when we talk in CDMO business in pharma segment, is not a business which can come to anyone overnight. Of course, there is a lot of work available in the market and a lot of players are there in the market to grab those business. But that business is always a function of how you are complied with the quality system. Because originator or someone who is giving you the business for the outsourcing or the manufacturing of outsourcing in this industry, they would like to see the level of compliance related to QA, your consistency, relationship with that customer over the years. We got consistent supply, quality supply as well as the QA system in place. And lastly and not the least, the environment and the ESS compliance.”
-- Abhishek Patel, Vice President, Strategy
Highlighting ESG credentials as a competitive differentiator for winning CDMO business.
“I would like to share one more insight that we now are EcoVadis Platinum certified company, which is only 1% of the companies over the world are into this territory. So this gives us the confidence that because of this, we are able to sustain -- in fact, get a good share of this business in the market.”
-- Abhishek Patel, Vice President, Strategy
Clarifying that margin expansion is driven by deliberate portfolio optimization.
“One of the reasons of the improvement in the margin is that we started restructuring our existing core pharma intermediate portfolio by churning out low-margin products, at the same time maintaining our growth guidance of 25% for overall business. This has resulted in better product mix leading to better margins.”
-- Abhishek Patel, Vice President, Strategy
Explaining the strategic rationale behind vertical diversification beyond pharma.
“We want to expand our chemistry base out of pharma, and that’s why we started acquiring Gujarat Organics and then we entered into the battery and then later on, we acquired Baba and now we enter into the semicon. So this is all to expand our strength into the production side and as well as the chemistry application. And two, if you see the last 5 years, management has introduced a lot of system digitalizations, KMPs are introduced time to time required for each segment. So this is a part of the business cycle, and this is part of the business to grow from one state to another state.”
-- Naresh Patel, Chairman & Managing Director
Articulating the long-term vision for the company.
“Overall, we are steadily moving towards our vision of becoming a global chemical company with diversified business verticals catering to multiple industries, including pharmaceutical, battery chemicals, semiconductors chemicals, cosmetics and other specialty chemicals.”
-- Naresh Patel, Chairman & Managing Director
Highlighting dominant market positions in key products as competitive advantage.
“So as you know, for most of our top products, we have more than 50% to 80% kind of market share as against any of the competitor. So that shows our track record that we have been competing in the market for a long time.”
-- Abhishek Patel, Vice President, Strategy
Metals
SAIL | Mid Cap | Metals
[Concall]
Indian steel demand grew 8% in H1 but production surged 12%, creating oversupply and pricing pressure despite lower imports and higher exports.
“The projections for India have also been revised upwards to 6.3% by various agencies. In the global steel industry front, the global steel industry is weigh down on the adverse demand supply situation as some of the largest producers are finding demand lowering in their own geographies. Indian steel industry continues to enjoy robust demand for steel with the consumption during H1 2526 which has grown by more than 8% over the same period last year. This was however sort of overshadowed by the growth in production as crude steel production grew by more than 12% in this period over same period last year. During the same period imports have come down substantially whereas the exports have recorded increase yet India even then India remains a net importer during H1 2526. Exports have gone up because during H1 the production was more than that of the demand in the domestic market. So that is the reason why there was a bit of over supply situation in the country due to which the exports have gone up and maybe because of this safeguard duty and other things the imports have come down drastically that has given some kind of a relief but because of the over supply situation in H1 the pressure was on the price front.”
– Dr. Ashoke Panda, Director of Finance
Imported coking coal costs increased 700 rupees to 17,300 in October due to rupee depreciation, expected to rise further to 18,000-18,100 in Q3.
“So as we can see that in October the imported coal price in our plant units are around 17,300 rupees which has gone up from the August level of 16,600 that means between August and October there’s an increase of around 700 rupees. This is primarily because of depreciation of rupee with respect to USD. But now onwards in this month by October end we are finding that the indexes have increased a bit. Of course the indices are range bound but it is increased from September level of 187 to 194 right now. It may soften we do not know about that but it is varying between 185 to 195 in that range. So right now the index is on the highest little on the higher side 194. So as you said what about quarter three and quarter four because in quarter three and quarter four the demand is going to pick up everywhere. So we believe the imported coal price will remain a little higher as compared to what it is today. Today it is around 17,400 rupees. It may go towards 18,000 18,100 and something like that in quarter three.”
– Dr. Ashoke Panda, Director of Finance
Jindal Steel | Mid Cap | Metals
[Concall]
Commissioned 4.6 million ton blast furnace and 3 million ton BOF in Q2, more than doubling Angul hot metal capacity to 8.85 million tons and crude steel capacity to 9 million tons, targeting 15.6 million tons by FY26 end.
“The second quarter of FY26 was a defining quarter for Jindal Steel at Angul. We commissioned two major plants. The 4.6 million ton per annum Bhagwati Subhadra blast furnace 2 which more than doubles the hot metal capacity at Angul to 8.85 million tons per annum from the earlier 4.25 million tons per annum and the new 3 million ton per annum basic oxygen furnace 2 the BOF2 taking crude steel making capacity at Angul from 6 million tons to 9 million tons per annum. Together these assets synchronize hot metal and steel making capacities and put us firmly on track to reach the stated 12 million ton per annum goal at Angul within the current financial year. With the current round of expansion we will achieve 15.6 million tons of steel making capacity by the end of this fiscal year.”
– Gautam Malhotra, CEO
Extensive AI deployment across operations including IoT sensors for predictive maintenance, computer vision for safety and automation, and predictive models for blast furnace optimization, but too early to quantify cost savings.
“At Jindal Steel, artificial intelligence is transforming the way we operate, making our processes safer, faster, smarter, and more efficient. We’ve deployed IoT sensors on critical equipment to predict failures early, enhance asset reliability, and prevent unplanned shutdown. With computer vision and video analytics, we ensure PPE compliance, detect near miss incidents, analyze coal size and moisture, and also automate billet counting. Our predictive AI models forecast power demand, optimize blast furnace operations, and also improve gas supply efficiency, thereby driving higher productivity and lower cost. I think it’s too early to talk about the cost savings coming from AI. We actually are doing a lot of stuff on it but it’s too early in the journey to start putting a dollar value to it.”
– Gautam Malhotra, CEO
International
Samsung SDI Co Ltd. | International
[Concall]
Humanoid robot market projected to surge from 20,000 units (2025) to 600,000+ units (2030), with SDI cylindrical batteries already adopted by multiple robotics customers leveraging proven power tool technology.
“The robotics market has been advancing rapidly driven by more sophisticated movement capabilities, AI-enabled intelligence and declining costs. As a result, applications are expanding beyond industrial uses to commercial and household sectors. With component technologies and supply chains expected to take shape in earnest, the humanoid market is projected to grow quickly from around 20,000 units this year to over 600,000 units by 2030. Because humanoid robots have very limited internal space for battery installation, the batteries must deliver both high power and strong durability to support movement. As a result, high-power high-capacity cylindrical batteries are currently being used for this application. Several robotics customers have already adopted SDI cylindrical batteries which have demonstrated high power and large capacity performance in the power tool market. To further expand business opportunities, SDI is also engaged in additional discussions with multiple robotics manufacturers.”
– EVP Park Jong-seon (Strategic Marketing)
Hyperscalers like Google, Meta, and Amazon are deploying rack-level battery backup units in AI data centers, driving BBU installations to more than double between 2024 and 2026 during peak data center investment, with rack space constraints requiring high-power cylindrical battery specifications.
“Major cloud service providers including Google, Meta and Amazon have been rapidly installing BBUs or battery backup units at the server rack levels within their AI data centers. This trend is driving rapid growth in both the overall BBU market and the demand for BBU cells. The number of BBU installations is expected to more than double between 2024 and 2026, a period when data center investments are projected to be highly concentrated. As BBUs are required to deliver high output power rapidly within the limited space of a server rack, demand for high-power cylindrical batteries is expected to increase significantly.”
– EVP Park Jong-seon (Strategic Marketing)
AI-driven memory demand is causing semiconductor manufacturers to expand DRAM and HBM wafer production and accelerate process migration, which is driving strong growth in advanced semiconductor materials demand aligned with AI infrastructure build-out.
“As you have just mentioned, demand for high value-added memory used in AI applications is expected to continue growing with our key customers expanding wafer production for DRAM and HBM. As a result, demand for our semiconductor materials is also projected to maintain solid growth momentum. To further drive sales growth, we are pursuing customer diversification while strengthening material competitiveness to meet customer needs for process migration and performance enhancement.”
– EVP Kim Ik-soo (Electronic Materials Strategic Marketing)
Intel Corporation | International
[Concall]
Intel announced multi-generation collaboration with Nvidia to create new AI products using NVLink to connect Intel CPUs with Nvidia GPUs, targeting hyperscale, enterprise, and consumer markets.
“Our cooperation with Nvidia is a prime example. We are joining forces to create a new class of products and experience spanning multiple generations that accelerate the adoption of AI for the hyperscale, enterprise and consumer markets. By connecting our architectures through Nvidia NVLink, we combine Intel CPU and x86 leadership with Nvidia unmatched AI and accelerated computing strengths, unlocking innovative solutions that would deliver better customer experience and provide a beachhead for Intel in the leading AI platform of tomorrow.”
– Lip Boutan (CEO)
Intel faces widespread supply shortages across Intel 10 and 7 nodes, not planning to add capacity there; living off inventory while trying to shift customers to other products; expects strong demand to continue into 2026.
“I mean shortage is pretty much across our business, I would say. We are definitely tight on Intel 10 and 7. Obviously we’re not looking to build more capacity there. And so as we get more demand, we’re constrained. In some ways we’re living off of inventory. We’re also trying to kind of demand shape to get customers to other products. There’s also shortages even beyond our specific challenges on the foundry side. I think there’s widely reported substrate shortages for example. So obviously I think the demand, there’s a lot of caution coming into the year. I think across the board and it looks like things are going to be stronger this year and probably that continues well into next year.”
– David Zindner (CFO)
Intel prioritizing debt repayment with improved cash position; CEO demanding disciplined capex approach requiring firm customer commitments before adding capacity; will only invest when demand is clearly visible.
“Obviously we’re in a great position. I’d say as we think about this cash our first focus is to delever. I mean, that’s one of the things we really wanted to, when Lip came in, he really was upset about the balance sheet. And so, we’ve done a lot to work on that and improve that for him. We took $4.3 billion of debt off the books this quarter and all the maturities next year should come off and we’ll repay that. I think as you look at capex, it puts us in a position of flexibility on capex, but we want to be very disciplined around capex. So we will absolutely be looking at demand. Lip has been very direct with us on this. He wants to see the whites of the eyes of the customer that we can believe in that demand and if that demand exists of course we will amp up the capex as necessary.”
– David Zindner (CFO)
AI is driving a dual demand pattern where it both accelerates adoption of new compute architectures while simultaneously fueling renewed growth in traditional compute infrastructure, with x86 particularly well-positioned for hybrid compute environments needed for inference and agentic AI systems.
“AI is clearly accelerating demand for new compute architectures, hardware models and algorithms. At the same time it is fueling renewed growth of traditional compute as the underlying data and the resulting insights continue to rely heavily on our existing products from cloud to edge. AI is driving near-term upside to our business and it is a strong foundation for sustainable long-term growth as we execute. In addition with unmatched compatibility, security and flexibility by virtue of being the largest install base of general-purpose compute, x86 is well positioned to power the hybrid compute environment that AI workloads demand particularly for inference workloads and agentic systems.”
– Lip Boutan (Lipu), CEO
The PC market TAM is approaching 290 million units in 2025, representing the fastest growth since 2021 with two consecutive years of expansion from the 2023 post-COVID bottom, and the industry is preparing for continued strong demand through 2026 in a healthy ecosystem.
“We expect the client consumption TAM to approach 290 million units in 2025, marking two straight years of growth up from the post-COVID bottom in 2023. This represents the fastest TAM growth since 2021. And we’re prudently preparing for another year of strong demand in 2026 as Core Ultra 3 ramps into a healthy PC ecosystem.”
– David Zindner (Dave), CFO
L’Oréal | International
[Concall]
L’Oréal announced €4B acquisition of Caring Beauty including Creed niche fragrance brand and beauty licenses for Balenciaga, Bottega Veneta, and Gucci; YSL Beauty now as large in beauty as fashion, Prada exceeded €500M in four years.
“We announced the acquisition of Caring Beauty, including the Creed niche fragrance brand as well as the beauty and fragrances licenses of Balenciaga, Bottega Veneta, and when available, Gucci. I’m extremely excited about this transaction. Not only does it cement our existing leadership in luxury beauty, I also see enormous potential for each one of these four brands. And we have proved our ability to turn licenses into billionaires. Today, YSL is as big in beauty as it is in fashion. Prada crossed the 500 million euro mark just four years after joining the L’Oréal Lux family. The future truly smells good and I look forward to writing this new chapter.”
– Nicolas Hieronimus (CEO)
E-commerce growing at +12% (double market rate of ~3%), now represents 28% of total sales approaching 30%; channel growing at twice overall market rate enabling faster penetration and market outperformance.
“When we say the market is growing about a bit about plus three probably the growth rate of e-commerce is more than twice that and we grow our e-commerce growth is at plus 12% right now. E-commerce is getting closer to 30% of our sales. I think it’s 28% as we speak today. E-commerce allows us to penetrate much faster be with new products and that helps us overperform and that’s what we intend to continue to do. In the current context where offline or brick and mortar is a bit more stable and where e-commerce is more booming, that helps us overperform.”
– Nicolas Hieronimus (CEO)
L’Oréal and Caring establishing 50/50 joint venture focused on well-being, health, and longevity services targeting high net worth individuals; combining L’Oréal’s skin care/longevity research with Caring’s luxury experience and clienteling expertise.
“We are creating a 50/50 joint venture between Caring and L’Oréal with a clear goal which is responding to the strong demand for services and experiences linked into well-being, health and longevity. We will bring our expertise of skin care, longevity research, and what we’ve learned from our services we offer in the Kiehl’s store. Caring will bring their expertise in experience luxury, their clienteling, they are used to focus on high net worth individuals which are the primary target of this type of business.”
– Nicolas Hieronimus (CEO)
Mattel Inc. | International
[Concall]
Retailers shifted from direct import to domestic shipping in 2025 as anomaly due to trade environment, seeking more flexibility; shift pushes orders to Q4 as domestic shipping is more just-in-time versus advance bulk direct import orders.
“Direct import is when the retailers take ownership of the product at the sourcing country and handle the importation and warehousing themselves. Direct import orders occur normally a couple months in advance and they are in larger quantities per order. Domestic shipping is when Mattel handles importation of the goods and warehousing and the retailers take the ownership in the destination country. This year given the macroeconomic environment and the trade dynamics this was an anomaly and retailers shifted more from purchasing from direct imports to domestic shipping because they wanted to give themselves time and more flexibility to commit to orders. This shift is resulting in more domestic shipping towards the back end of the year and into the fourth quarter.”
– Ynon Kreiz (CEO)
Dolls fell 12% on Barbie and Polly Pocket weakness with improvement expected in Q4 and 2026 from innovation and adult expansion, while vehicles grew 6% with Hot Wheels achieving an eighth consecutive record year driven by fastest-growing adult demand.
“Dolls declined 12% primarily due to Barbie and Polly Pocket partially offset by growth in Wicked Monster High and American Girl. We expect improving trends for Barbie in the fourth quarter and into next year driven by cultural relevance, packaging innovation and enhanced product segmentation, new form factors and play patterns and expanding adult demand. Vehicles strong momentum continued growing 6%. Hot Wheels up 6% and on track for an eighth consecutive record year. We are successfully driving demand across all ages with adults being the fastest growing audience for Hot Wheels.”
– Paul Roeder (CFO)
Repurchased $412M shares year-to-date targeting $600M for full year; own inventory up $89M to $827M due to tariffs, FX, and buildup for domestic shipping shift; retail inventories modestly lower year-over-year with good quality positioning for holidays.
“We repurchased $22 million of shares in the third quarter, bringing our year-to-date repurchases to $412 million as we continue to target $600 million for the full year in accordance with our capital allocation priorities. Our inventory level was $827 million, an increase of 89 million as compared to the prior year. The increase reflects tariff related costs, foreign exchange, and the buildup of inventories in response to retailers shifting from direct import to domestic shipping in the US. Retail inventories are modestly lower as compared to the prior year and are of good quality, positioning us well for the holiday season.”
– Paul Roeder (CFO)
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 Vignesh, Meher & Kashish.
Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.
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