The Chatter: Moving Pieces
Edition #16
Welcome to the 16th 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 the 16 commentaries across 9 industries:
Banking & Finance
CRIF High Mark on Overlending
5paisa Capital
IndiGrid
Engineering & Capital Goods
Hindustan Aeronautics Limited (HAL)
Astra Microwave Products
Retail
Balaji Telefilms
Style Bazaar
Thomas Cook
Energy
GAIL
Logistics
JSW Infrastructure
Real Estate
Signature Global
Textile
Sanathan Textiles
Software
NIIT Learning Systems
Miscellaneous
Labour Ministry Secretary comments on ELIS Scheme
Digitide Solutions
Telecom Minister on TRAI Satellite Spectrum Auction
Banking & Finance
CRIF High Mark on Overlending
Public sector banks and NBFCs gaining share over private banks in key areas like home loans, credit cards, and personal loans has been surprising, signaling a major shift in the industry.
“the share gain by public sector banks and even NBFCs in many of the seg segments over private sector banks that has been a big surprise because there has been a stronghold of private sector banks in many of the segments including home loans including other segments credit cards personal loans etc that has been a very very uh eyeopening thing which means that there are systemic change happening in the industry.”
Many MSME owners also borrow personally, so lenders assess both their business and personal finances. When signs of stress appear in their personal loans, lenders become more cautious with MSME lending.
“many of the MSME especially on their personal or the individual capacity also borrow borrow from the market and the fact is that when you underwrite an MSM loan you not only look at underwrite their business you also underwrite them personally and when you see that their personal borrowing facilities are see showing signs of stress the guards also go up in their MS lending”
Overall, rising risk perception in the industry led to tighter credit norms and a broad decline in lending across all sectors.
“I think overall the risk perception of the industry went up which led to increased sort of credit guard rails across all segments which led to a sort of a secular degrowth in lending in all sectors.”
High-ticket loans, especially home loans, are driving growth. This is one reason private sector banks have lagged behind public sector banks.
“It is the high ticket loans that are gaining momentum and I'll actually connect with what Sachin talked about. Uh the reason why private sector banks were not growing as much as public sector banks one of the key areas is home loans”
In Q1 FY25, stress emerged in the unsecured lending space, including short- and long-term personal loans and microfinance.
“So if you take Q1 of FI25 which was last uh last year somewhere in that April May June quarter uh everyone saw the stress in the unsecured lending space it could be either the short-term personal loan long-term personal loan or even the micro finance started showing certain stress”
The speaker noted that loans below ₹1 lakh have remained stable, while risk has increased in the ₹2–10 lakh segment over time.
“but if you go a little bit deeper and then look at it less than one lakh rupee the risk has not built up you know the the risk has built up in like two lakh to let's saythe 10 lakh segment is where we have seen the risk has deteriorated over the type but less than one lakh has always been uh performing well”
Gold loans have seen the highest growth, while most other segments declined. The RBI has now mandated bureau checks for gold loans.
“...right gold loan also has been the highest growth has been in the gold loan. In fact, if you see the portfolio growth, there has been a decline in almost everything except gold loan and gold loan RBI has already come out with saying that you need to have even a bureau check”
5 Paisa | Small Cap | Financial Services
5paisa Capital is a low-cost digital stockbroker offering trading, mutual funds, and investment services, primarily catering to young and tech savvy retail investors.
Customers are trading more on the platform, which is boosting 5paisa’s revenue.
“Average Daily Turnover (ADTO) increased 17% QoQ to ₹2.25 trillion in Q1 FY26. Our equity market share stood at 2.3% and derivative market share improved to 2.6%.”
— 5paisa Management
5paisa is making more money and keeping costs in check, which means its business model is working and becoming profitable over time.
“We clocked our highest ever quarterly revenue of ₹778 Mn and PAT of ₹115 Mn, up 9% and 15% QoQ respectively. Profitability has continued to improve over the quarters, supported by strong revenue growth and tight control on cost.”
— 5paisa Management
High satisfaction and good support mean strong customer loyalty.
“Customer satisfaction score (CSAT) improved to 94% in Q1 FY26. Enhanced customer experience through AI chatbots, self-serve platforms, and prompt query resolution.”
— 5paisa Management
Indigrid | Micro Cap | Financial Services
India Grid Trust, established by Sterlite Power Transmission Limited, is an infrastructure investment trust focused on owning and investing in power transmission and solar assets in India. IndiGrid aims to generate stable and sustainable distributions to its unitholders in accordance with the InvIT Regulations and Trust Deed.
IndiGrid has signed a Battery Energy Storage Purchase Agreement (BESPA) with GVNL. The project will be housed under a dedicated structure with equity from BII and North, and debt support from IFC, which has structured a strong financing package as a long-term partner.
“This project is uh first of all it's a best pass or battery energy storage purchase agreement which is already signed with GVNL.
Yes, this project is going to be under inrit where on equity side we are partnering with BII and North and on debt side IFC who has been a long-standing uh partner on the lending side is also participating uh and then they have they have done a phenomenal structure for us in terms of debt for this project specifically..”
— Harsh Shah, MD
IFC has signed agreements for a debt facility of approximately ₹460 crore ($55 million) for the project. With this deal, IFC’s present lending to IndiGrid stands at around $380 million (₹3,250 crore), making it one of the largest and longest-standing lenders to the platform.
“Yeah, so the the agreements are already signed for this this uh total commitment is around 460 odd crores of debt facility that IFC have signed which is around $55 million.The IFC in with this deal have overall lent approximately $380 million to Indigrid which is about 3250 cr which is one of the largest lender on our books and also one of the longest uh debt financiar for us.”
— Harsh Shah, MD
This project's tariff is less than half of the JSW project's ₹10 lakh/MW/month. With GRC approval in place and commissioning expected this financial year, regulatory risk is minimal.
“...in comparison to the JSW project you were referring to was approximately, if I'm not wrong, around 10 lakh rupees per megawatt per month, right? Versus this one is less than half. There's also a long time gap between the two. So they're not strictly comparable. But in our case, the GRC has already approved the tariff. The project has started and we are looking to commission in this financial year as well. So it's a pretty advanced stage. So we do not see a regulatory risk on this project itself.”
— Harsh Mehta, MD
In transmission, the company is working on both building new projects and buying existing ones. Through the Grid platform, it aims to take up projects worth over ₹50,000 crore this year.
“First is transmission where we are doing development as well as acquisition. Development happens in the grid platform where we are targeting over 50,000 kores of projects this year.”
— Harsh Mehta, MD
The company recently acquired a solar-plus-transmission project from ReNew with an enterprise value of around ₹2,100 crore, closed earlier this month.
“On the acquisition side we have already acquired one uh project which is solar plus transmission from Renew which put together approximately 2100 crores of enterprise value this year itself. We just closed it earlier this month.”
— Harsh Mehta, MD
With expected interest rate cuts and upcoming refinancing, the company is confident in meeting its ₹16/unit guidance for the year.
“On top of it, we are looking at uh interest rate reduction that is coming in this year and hopefully with more refinancing coming in, we'll be very very comfortable delivering our 16 rupees a unit guidance for this year.”
— Harsh Mehta, MD
Engineering & Capital Goods
Hindustan Aeronautics Limited (HAL) | Large Cap | Engineering & Capital Goods
Hindustan Aeronautics Ltd (HAL) is India’s leading aerospace and defense company, manufacturing fighter jets, helicopters, and military aircraft systems.
This is a massive fighter jet order for HAL’s LCA Tejas. If finalized, it will add strong revenue visibility for years and strengthen HAL’s position in India’s defense pipeline.
“Upwards of ₹60,000 crores... so that's the big one which we are now working on and we expect to close it this year.”
—DK Sunil, Chairman & Managing Director
A fivefold jump in orders means HAL has huge demand across both new aircraft and maintenance. It signals a strong growth year ahead.
On an average we do about ₹20,000 crore of RMSO orders... this year we hope we will be able to bring in about ₹1 lakh crores.”
—DK Sunil, Chairman & Managing Director
HAL is expanding into space tech with small satellite launches, creating a new revenue stream beyond defense aviation.
“We expect... to do about 6 launches a year... adding ₹1,000 crores to the top line... maybe up to 15 launches depending on market.”
—DK Sunil, Chairman & Managing Director
HAL is building big combat drones, which are becoming very important in modern warfare. In the future, this could be as big for HAL as fighter jets are today.
“We’re working on the 3-ton UCAV... integrating test engine... 10 years down the line, this will be a very significant chunk of our portfolio.”
—DK Sunil, Chairman & Managing Director
Astra Microwave Products | Small Cap | Engineering and Capital Goods
Astra Microwave Products Limited (AMPL) specializes in designing, developing, and manufacturing RF and microwave sub-systems for defense, space, meteorology, and telecommunication sectors.
A firm balance is needed between timely deliveries in a long-cycle industry and combining in-house tech with outsourced components to fill tech gaps.
“Um a delicate balance has to be maintained between timely deliveries with in a in an industry which has slightly longer uh life cycle and homegrown tech supplemented by outsourced pieces which are uh missing uh tech pieces.”
— Atim Kabra, Executive Director & Director-Strategy
The company is expected to generate around 1800-2000 Crs from the QRSAM PROJECT. The company is involved in missile electronics, including passive homing heads and key subsystems for the Akash missile.
“Kasam Astra will get about 1,800 to 2,000 crores which we have disclosed in our analyst interactions. Uh when you look at newer missiles coming in uh you know if if you have passive passive homing heads which we are making we are into missile electronics Akash missile has been you know we have supplied crucial subsystems to that.”
— Atim Kabra, Executive Director & Director-Strategy
Upgrading over 230 SU-30s and several MiGs presents a major business opportunity. Airborne platforms and radars are key to modern warfare.
“Okay. So we hope that that itself will be a very very big chunk of business for us because there are more than 230 SU30s which will need to be upgraded. So you know there are megs which need to be upgraded you know so airborne platforms are one radars are the backbone of modern warfare.”
— Atim Kabra, Executive Director & Director-Strategy
Despite high cash conversion, the industry is capital-intensive. Since most orders are released in the last quarter, receivables remain high and grow alongside sales.
“..Much of cash conversion is very very high tell us whether these numbers stabilize that sir please go ahead.”
“ the industry is capital intensive right yes there's no two things about this right but you have to also remember that the biggest chunk of orders they are released in the last quarter right so yes you may do whatever but those orders will always reflect in your books as receivables right so as your sales grow your receivables will keep growing..”
— Atim Kabra, Executive Director & Director-Strategy
Retail
Balaji Telefilms | Small Cap | Media & Entertainment
Balaji Telefilms is a leading Indian entertainment production house known for its popular TV serials and digital content via ALTBalaji.
The company is merging all content businesses under one umbrella leading to less duplication, more cost efficiency, and a smoother strategy for digital and film production.
“We recently completed the amalgamation of our subsidiary companies into one entity… ALT and Marinating Films Pvt. Ltd. have been merged… leading to better efficiency and utilization of pooled resources.”
— Sanjay Dwivedi, Group CEO & CFO
ALT Balaji is gaining traction again , both new sign-ups and renewals are strong, showing that users like the content enough to come back.
“ALT now has over 2 million active subscribers… this quarter we sold a record 3.29 lakh subscriptions including 1.73 lakh renewals.”
— Sanjay Dwivedi, Group CEO & CFO
The company isn’t just relying on one or two hits, it has a strong pipeline of upcoming films, ensuring steady visibility and revenue over the next two years.
“We’ve built a very robust movie slate… 8 projects are in various stages — 3 will release in FY26, 5 more in FY27.”
— Sanjay Dwivedi, Group CEO & CFO
Balaji is in a strong financial position, no loans to repay and ₹162 crore in the bank.
“The company has zero debt… with a cash and cash equivalent position of ₹162 crore as of March 31, 2025.”
— Sanjay Dwivedi, Group CEO & CFO
Style Bazaar | Small Cap | Retail
Baazar Style Retail Limited is an Indian public company specializing in retailing a variety of apparels and consumer products through retail stores under the Brand/Trade name of Style Baazar and Express Baazar.
Normalized growth was 37% for the quarter and 45% for the first half, while annual growth stood at 8%. The company has set a full-year growth guidance of 25%.
“...we have given that normalized growth we have grown at 37% for this quarter and if you see for thefirst half we have grown at a rate of 45% with an annual growth of 8% we have also given that uh in terms of this year guidance we have guided for 25%..”
— Shreyans Surana, MD
In the last three years, growth was 13% last year and around 10% the year before. The company gives a conservative growth guidance of 7–8% for mature stores, aiming to exceed it.
“For the last 3 years, we are growing at a rate of more than uh last year it was 13% before that it was around 10%. So, we always take a conservative growth guidance for our mature stores 7 to 8 with intent to grow higher on that.”
— Shreyans Surana, MD
The guidance remains at 14–15%, similar to last year. There’s no price increase, with the average selling price (ASP) staying around ₹300 per item.
“So uh so this is the 14 to 15%. uh the similar guidance from last year and in terms of pricing see we are not increasing anything our ASP is around 300 per article the target is simple..”
— Shreyans Surana, MD
Currently, 87% of revenue comes from the apparel segment and 13% from general merchandise. Within apparel, 36% is from men's, 28% from women's, and 22% from kids' categories.
“So right now the mix 86% revenue comes from Apparel section right 13 87% comes from April section and 13% comes from general percentage out of 36 comes frommen's 28 comes from ladies and around 22 comes from kids.”
— Shreyans Surana, MD
Thomas Cook | Small Cap | Tourism and Hospitality
Thomas Cook (India) Limited is the leading omnichannel travel company in India, offering a wide range of services such as Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Value Added Services, and Visa Services.
The company noted a minor dip toward the end of summer 2025 but said Q2 (April–June) acquisitions remained strong overall, with no significant impact on the quarter.
“...Uh summer 2025 I think we saw a little bit of a blip uh towards the end of the summer. uh I think uh what we look at is you know our acquisition for quarter 2 uh which is April, May and June was fairly good from the acquisition point of view. So we didn't see a very big impact as such on on this quarter..”
— Rajeev Kale, President
The company explained that Q1 (Jan–Mar) was strong and ahead of target, and Q2 is also performing well. Overall, the year is on track to meet or exceed targets.
“So we look at the calendar year.So for us the Q1 is basically the Jan Feb March which was fantastic. We were ahead of the target. Q2 also is you know uh looking good. Uh we still have uh some uh you know numbers to kind of conclude. So on the on the whole we will we the the this year is looking good and we will be we will be on our target or ahead of our target.”
— Rajeev Kale, President
The speaker expects 12–15% growth in the travel business, particularly on the leisure side. However, they noted it's too early to comment on corporate travel.
“So we are looking at growth of uh you know between 12 to 15%. And we should be there uh there on on that growth trajectory.”
“Only the travel business.”
“On the leisure side you know we are looking at 15% growth. 12 to 15%. And corporate corporate travel corporate travel is very difficult to comment on at this point of time.”
— Rajeev Kale, President
With 2000Cr of cash at disposal, the company mentioned ongoing business expansion plans, highlighting AI as a key focus area with existing investments. Additional growth plans are in place and will be shared later.
“..See, we have uh we have some plans as far as uh you know the expansion of business is concerned. uh we will uh we will uh you know look at uh the AI space is uh is something which is very important and we have already invested in that uh and and there are other growth plans are there you know which uh you know we will talk about it..”
— Rajeev Kale, President
The speaker noted that a major Q1 event, the National Games in Uttarakhand, and upcoming government-led sports events will boost business. The government contributes around 10–15% of their revenue.
“So we we did a large event uh you know in the first quarter which was the national games which was held in Uttarakhand and government is looking at expanding their portfolio from the sports authority of India point of view on there are various national games are coming up so that is definitely going to you know help us.”
“revenue comes in from the government uh approximately uh 10 to 15%.”
— Rajeev Kale, President
Energy
GAIL | Large Cap | Energy
GAIL (India) Ltd. is the country’s largest natural gas transmission and marketing company, playing a key role in transporting gas through pipelines and expanding India’s clean energy infrastructure.
GAIL has officially asked the government to raise the prices it charges for using its pipelines.
“As requisitioned by the regulator, we have submitted requisite details for review of tariff in August 2024. The revised tariff filed is ₹78 per mmBtu.”
— Sandeep Kumar Gupta, Chairman
If the tariff hike goes through, GAIL could make thousands of crores more each year, without laying a single new pipeline.
“This would increase our profit before tax by up to ₹3,400 crore.”
— Sandeep Kumar Gupta, Chairman
A decision is likely in the next few months. Investors won’t have to wait long to know how much extra money GAIL could make.
“The tariff review process is expected to conclude by Q1 of FY26.”
— Sandeep Kumar Gupta, Chairman
Logistics
JSW Infrastructure | Mid Cap | Logistics
JSW Infrastructure is India’s second-largest commercial port operator, handling cargo across bulk, liquid, and container segments.
JSW Infra hasn’t officially won the ₹832 crore Kolkata port bid yet but the company is optimistic.
“Regarding this Kolkata thing, we have yet to hear from the port trust… once we come to know then we can talk more in detail… bids were invited… official communication or LOI yet to receive..”
— Lalith Singhvi, Director & CFO
The terminal is already operating near full capacity. JSW Infra believes better equipment and 24/7 operations will boost efficiency and volumes, translating into stronger revenue.
“This has a capacity of, say, 4 lakh 50,000 TEUs and they are already running at 90% capacity utilization. We don’t foresee a downturn in cargo… after putting up a good cranes and whatever mechanization we need… operational efficiency will increase and give them more cargo.”
— Lalith Singhvi, Director & CFO
The company is financially strong and doesn’t need loans to execute this ₹800+ crore project. It’s focused on growing and diversifying its logistics and cargo business.
“Funding for this ₹800 crore-plus project is not an issue. We are having a very strong balance sheet, sitting on cash. The point is to diversify our cargo profile and revenue. We’ll be able to charge as per market prices…and in the future, volume will also come from the Kolkata dock.”
— Lalith Singhvi, Director & CFO
While this one project won’t drastically change JSW Infra’s total volumes, it fits into a long-term strategy of expanding through acquisitions and terminal optimization.
“We have nine terminals and… from 177 million tonnes we are taking it to 400 million tonnes. Half a million TEUs would be around 7 million tonnes. I’m already doing 117 million tonnes. Every year such assets we keep acquiring… it gives us more efficiency and revenue.”
— Lalith Singhvi, Director & CFO
Real Estate
Signature Global | Small Cap | Real Estate
Signatureglobal (India) Limited is a real estate company operating in the National Capital Region of Delhi (Delhi NCR) that focuses on providing affordable and mid-segment housing units.
The decline in sales was mainly due to the base effect.
“..you're right with the commercial understanding that it's largely because of the base effect.”
— Rajat Khaturia, CEO
It was a strong quarter, with over 20% of the annual target already achieved.
“So from our perspective it's a good sort of you know quarter where we've achieved more than 20% of the annual target.”
— Rajat Khaturia, CEO
Collections will spike in late Q2 and Q3 as major project milestones are reached, so they won’t be evenly spread throughout the year.
“Uh there in terms of collections, we'll see a good spike towards the end of Q2 and Q3 because some milestones of a few large projects are getting achieved around that time and hence collections will not be as equally distributed.”
— Rajat Khaturia, CEO
Average prices in these micro markets aren’t increasing beyond 7–8%, so per square foot realization is expected to decline.
“So I don't think on an average prices are going up beyond 7 to 8% in any of these micro markets. So you know this per square foot realization will come down.”
— Rajat Khaturia, CEO
Net debt stands at ₹8.9 crores, with no dues on the land, which is fully owned. As sales and collections come in, they will directly add to cash flow, making the company financially comfortable.
“..So there is net debt which is 8.90 crores. There's nothing particularly due on the land side. So the land ownership belongs to us you know. So as this converts into sales and collections you know it's all going to trickle down to cash for the company and hence we feel very comfortable..”
— Rajat Khaturia, CEO
Q2 is a major quarter for launches, with more expected in Q3 and Q4. The remaining ₹13,000–14,000 crore in launches is on track, as approvals are at advanced stages.
“..again quarter 2 is a big quarter in terms of launches and uh you know likewise Q3 and Q4 also we'll see uh you know more launches. So this balance 13 to 14,000 crores of launches we are comfortable because we are at very advanced stages of approvals”
— Rajat Khaturia, CEO
Textile
Sanathan Textiles | Small Cap | Textiles
Sanathan Textiles Ltd. is a leading textile manufacturing company specializing in high-quality fabrics and garments. Known for innovation, the company offers a wide range of textile solutions, catering to both domestic and international markets.
If current tariffs remain favorable for India, there's a strong opportunity to grow our global textile market share. Textiles are already India’s second-largest export sector.
“..And if the current tariffs are relatively more favorable towards India, I think we have a damn good opportunity in front of us to really expand our global market share of textile supply. And as you know, textiles are the second largest exports out of India.”
— Sammir Dattani, ED
The industry must scale up production to tap into growing domestic and global opportunities, with strong government support, especially for man-made fiber exports.
“I think the entire industry needs to scale up its production capacity looking at the kind of opportunities we have in India as well as globally and ample support from the government is there today to increase the exports especially focusing on man-made.”
— Sammir Dattani, ED
India is already cost-competitive with Bangladesh, and favorable tariffs could further strengthen its advantage.
“I think we are similar or cheaper than Bangladesh if not cheaper at least similar for sure but the if the tariffs are more favorable to us all that will get evened out very easily.”
— Sammir Dattani, ED
A new greenfield facility in Punjab will focus on polyester filament yarns, driven by strong domestic and global demand for man-made fibers.
“a new green field facility in Punjab and this new facility is totally focused on polyester filament yarns because we see this as the future the domestic India consumption growth and the global consumption will be more skewed towards polyester filament yarns man-made fibers.”
— Sammir Dattani, ED
Export and domestic margins are similar, with only slight seasonal variations. The difference between them isn't significant.
“So are the margins for direct exports are probably similar to domestic sometimes. So it's a very it's a very seasonal thing as far as margins are concerned but uh the the difference between domestic margin export margin is not very large.”
— Sammir Dattani, ED
Sanathan Textiles expects 60–70% of new revenue from its upcoming facility to reflect in FY26, providing a significant boost to overall revenue.
“Yes, for sure at Sanathan textiles because of our new facility coming on stream this year. We should get at least 60 70% of the new additional revenue in FI26. So that will give us a big bump up as far as our revenue is concerned.”
— Sammir Dattani, ED
Software
NIIT Learning Systems | Small Cap | Software Services
Hole-in-the-Wall Education Limited is a subsidiary of NIIT Limited. HiWEL offers a fresh perspective for the learning process. It offers a unique collaborative learning approach and encourages children to express, learn and explore themselves.
MST Group, a new addition to the family, is a smaller version of our company, focused on providing similar services in Europe.
“..new addition to the family MST group based in Germany uh which is I would say a mini me company in the sense they are a smaller version of the kind of services that we offer very focused on Europe…”
— Vijay K Thadani, Vice Chairman & MD
About 30% of our business comes from Europe, and having operations within Europe offers significant advantages.
“uh about 30% of our current business comes out of Europe and uh through European companies. But I think having a footprint and an operation within Europe itself I think gives us some very sign significant advantages.”
— Vijay K Thadani, Vice Chairman & MD
This acquisition, though of a small company, will add around 20% to our European business, bringing specialized capabilities
“I think at this point of time the uh this acquisition itself will add about 20 odd% to the work that we do from Europe uh it's a it's a relatively small company I told you it's a mini me that's how we define but with very specific capabilities.”
— Vijay K Thadani, Vice Chairman & MD
The acquisition is both margin- and profit-accretive, involving a profitable, stable, and specialized team, which should help maintain our performance.
“It's a margin accreative as well as a profitcreative uh uh acquisition. So becauseit's a profitable company it's been around stable team uh and very committed and very specialized team. So I think uh we should be able to maintain that rank.”
— Vijay K Thadani, Vice Chairman & MD
Miscellaneous
Labour MInistry Secretary comments on ELIS Scheme
The ELIS scheme starts on 1st August and runs until July 2027. Any employment generated above the baseline during this two-year period will be eligible for incentives.
“ So it commences on 1st August this year and the registration or the enrollment goes on till July of 2027. So whatever additional employment over and above the baseline that gets generated during this period of 2 years would be eligible for incentives under the scheme.”
— Vandana Gurnani, Secretary Of Labour Ministry
Part A of the scheme targets first-time jobseekers, aiming to reduce employers' hiring costs and help employees cover job search, transport, and housing expenses
“You know this entire scheme especially the part A is focused on first-time joinies uh because that is where the you know the hiring costs are higher and the scheme can have an impact on the marginal cost of hiring from the employees perspective but for employees it is something that will help them uh you know cover the uh costs of searching for jobs, transportation, housing etc.”
— Vandana Gurnani, Secretary Of Labour Ministry
The secretary stated that while all sectors receive incentives for 2 years post-employment generation, the manufacturing sector gets an extended incentive period of 4 years to provide an extra boost.
“ uh there is uh I would say an additional incentive a longer incentive for the manufacturing sector to give a special boost uh to that particular sector. uh so all sectors would be eligible for incentive for 2 years after the employment is generated However, manufacturing sector would have an additional 2 years..”
— Vandana Gurnani, Secretary Of Labour Ministry
The Scheme A is exclusively for employees, offering incentives to first-time joiners via their Aadhaar-linked bank accounts.
“Yeah. Scheme A is only for the employees. It gives uh incentive to the uh firsttime joinies uh and it is through the Aadhaar linked bank account of the uh the people who would be employed. So yes, it is correct that it is only for the uh employees.”
— Vandana Gurnani, Secretary Of Labour Ministry
The secretary explained that companies with fewer than 50 employees must hire at least 2 more to qualify for incentives, while those with over 50 must hire at least 5. Incentives apply to all additional hires beyond these thresholds.
“any company which has less than 50 employees has to hire two additional employees. So uh over the baseline of employment that they currently have uh just two more people hired makes them eligible for the incentive. uh and if they hire 10 people, 15 people, 100 people, they get incentive for all of them. Similarly, for companies which have more than 50 employees, they have to hire five additional employees.”
— Vandana Gurnani, Secretary Of Labour Ministry
The scheme aims to ensure sustained employment, as EPFO data shows 45% attrition in the first 6 months. Incentives are given only after 6 months of job retention.
“..during this period because current data that we have from EPFO shows that almost 45% attrition takes place in the first 6 months uh so the the objective of the scheme is to make sure that there is a sustained employment and therefore the incentive comes in after 6 months of retention in that employment”
— Vandana Gurnani, Secretary of Labour Ministry
The secretary said companies only need to provide GSTN, a PAN-linked bank account, and employees' Aadhaar-linked accounts with face authentication. No detailed forms are required; once on the EPFO database, they're eligible.
“Yes. So as I said for companies just the just the details of GSTN and the panel linked bank account uh for the uh employee face authentication and an Aadhar linked bank account that's all they need to give uh there are no detailed forms that they have to fill out uh with this once they are on the EPFO database uh they would be eligible for the scheme.”
— Vandana Gurnani, Secretary Of Labour Ministry
The EPFO system has a strong IT backbone and algorithms to detect and prevent fraud.
“..so for that one is that the EPFO system has a very strong uh IT backbone uh to you know make sure that these frauds don't happen and then there are algorithms to detect if things do not uh go right.”
— Vandana Gurnani, Secretary of Labour Ministry
Digitide Solutions | Small Cap | Miscellaneous
It is in the business of AI-Led digital solutions, data intelligence and business processes solutions.
The company sees AI as value-accretive, helping to reduce costs while opening new opportunities. This strategic potential is the reason behind its significant investment in AI.
“AI is going to be value accreative for us. You know on one hand AI helps us to optimize the cost on the other hand it opens a lot of new opportunities and frontiers for us. So that's where we have taken a big bet on AI.”
— Gurmeet Chahal, CEO & Executive Director
The company is taking a three-fold "lens" approach to AI, with the first focused on industry-specific solutions—such as AI for insurance, banking, and healthcare.
“Uh the approach we are taking is a three-fold approach. Uh I call it the three lens approach. Lens number one is the lens of industry. So we will have AI for insurance, AI for banking, AI for Healthcare..”
— Gurmeet Chahal, CEO & Executive Director
The second lens focuses on processes, applying AI to areas like customer care, HRO, F&A, and software development.
“The lens number two is the lens of the process. So AI for customer care, AI for HRO, AI for FNA, you know, AI for software development.”
— Gurmeet Chahal, CEO & Executive Director
The third lens targets personas, developing AI solutions for roles like CIO, CTO, and CFO—guiding the company's investment strategy.
“Third is which is most interesting is the persona lens. So AI for CIO, AI for CTO, AI for CFO. So that's how we are making investments.”
— Gurmeet Chahal, CEO & Executive Director
The company is targeting 16–17% margins, as stated in its Q4 commentary. While exiting non-core businesses, margins may dip temporarily over the next one or two quarters.
“So we are looking at 16 to 17% margin eventually as we stated in our Q4 uh you know commentary. We are also looking at optimizing our portfolio. So we are you know getting out of some noncore uh business and as a result one or two quarters we expect the margin to be dipping..”
— Gurmeet Chahal, CEO & Executive Director
Currently, 70% of business comes from BPM and 30% from tech, data, and AI—with a goal to raise the latter to 40%. The company also aims to grow international revenue from 40% to 50%, aligning investments and portfolio changes accordingly.
“70% of our business comes from BPM 30% comes from technology data and AI we want that 30% % to be 40%. Secondly, we want our international revenues to grow from currently 40% to 50%. Okay. So the investments that we are making and the portfolio optimization is aligned to this direction.”
— Gurmeet Chahal, CEO & Executive Director
The company has developed an agentic AI solution called Cubody, which works alongside human agents to improve efficiency.
“We have developed our own agent agentic AI solution called Cubody which is coexisting with our human agent. So it has made it more efficient.”
— Gurmeet Chahal, CEO & Executive Director
Telecom Minister on TRAI Satellite Spectrum Auction
Despite fears, the Minister confirms that India still has a competitive telecom market with four large players, and the government doesn’t want dominance by just two companies.
“I do not think a duopoly is healthy in any sector... there are very few countries in the world that have four players within a particular market, and India happens to be one of those very few outliers… each one of our players has upwards of 90 million subscribers or 100 million subscribers—from BSNL at 91 million to Jio at 390 million.”
— Jyotiraditya Scindia, Telecom Minister
BSNL is no longer a loss-making public company. Its strong financial turnaround boosts public sector credibility and shows that government reforms are working.
“After 18 years, we’ve been able to turn BSNL around… revenue rose from ₹20,000 crore to ₹21,900 crore… EBITDA grew from ₹2,146 crore to ₹5,395 crore—150% growth. Net loss reduced from ₹5,300 crore to ₹2,150 crore. Q3 and Q4 both posted profits—₹260 crore and ₹282 crore respectively.”
— Jyotiraditya Scindia, Telecom Minister
The government won’t put more money into Vodafone Idea. It’s up to the company and its investors to fix things on their own.
“We can't increase our share beyond 49% because the minute you do that, it becomes a PSU—which is not our intent… increasing the equity option is not an option… as far as other options are concerned, there’s not much discussion happening.”
— Jyotiraditya Scindia, Telecom Minister
Satellite companies like Starlink and JioSat won’t need to pay in auctions for spectrum. This makes it easier and faster to launch services, especially in remote areas.
“You cannot auction something that is shared… every country in the world administratively assigns spectrum for satellite. There's no country that auctions spectrum for satellite. The laws of physics combined with the laws of economics are very clear on that principle.”
— Jyotiraditya Scindia, Telecom Minister
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 Apeksh, Mridula, 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.
Introducing “What the hell is happening?”
We've been thinking a lot about how to make sense of a world that feels increasingly unhinged - where everything seems to be happening at once and our usual frameworks for understanding reality feel completely inadequate. This week, we dove deep into three massive shifts reshaping our world, using what historian Adam Tooze calls "polycrisis" thinking to connect the dots.
Frames for a Fractured Reality - We're struggling to understand the present not from ignorance, but from poverty of frames - the mental shortcuts we use to make sense of chaos. Historian Adam Tooze's "polycrisis" concept captures our moment of multiple interlocking crises better than traditional analytical frameworks.
The Hidden Financial System - A $113 trillion FX swap market operates off-balance-sheet, creating systemic risks regulators barely understand. Currency hedging by global insurers has fundamentally changed how financial crises spread worldwide.
AI and Human Identity - We're facing humanity's most profound identity crisis as AI matches our cognitive abilities. Using "disruption by default" as a frame, we assume AI reshapes everything rather than living in denial about job displacement that's already happening.
The Chatter is run by the same team that creates The Daily Brief and Aftermarket Report.
Can you convince your transcription agent to drop the "uh"s, it makes reading painful. Unless of course you are conveying some deeper meaning by leaving the "uh"s in.
Great consolidation, thanks for this series