The Chatter: Reliance, Vedanta, Gillette, Prestige & More
Q4FY26 | Edition #64
Welcome to the 64th edition of The Chatter — a weekly newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.
We’re always eager to improve—please share your ideas on how else we can innovate “The Chatter” format to better serve your needs.
In this edition, we have covered 11 companies across 8 industries.
Energy
Reliance Industries
Metals
Vedanta Group
FMCG
Gillette India Limited
Real Estate
Prestige Estates
Software Services
Coforge
Engineering & Capital Goods
RBM Infracon Limited
Dhara Rail Projects Limited
RMC Switchgears
Finolex Cables
Defence
BEML
IT Services & Distribution
Redington
Energy
Reliance Industries | Large Cap | Energy
Reliance Industries is India’s largest private sector company with diverse operations in hydrocarbons, refining, petrochemicals, renewables, retail, and digital services. It leads in managing a fully integrated Oil-to-Chemicals portfolio and emphasizes inclusive growth by partnering with various stakeholders.
[Concall]
This was the biggest announcement of the AGM. Mukesh Ambani confirmed that the Jio Platforms board had approved the DRHP and that it would be filed with SEBI the same day, formally initiating the IPO process.
“With great delight, let me tell you that the board of Jio Platforms has approved the draft red herring prospectus earlier today and it will be filed with SEBI today. This is a deeply emotional moment for me, for the entire Reliance family, and for millions of its shareholders.”
“The proposed listing of Jio will demonstrate to the world that India can build technology companies of global scale, global capability, and global value.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
One of the strongest long-term financial outlook statements from Mukesh Ambani. He drew parallels with the doubling of EBITDA achieved over the previous five years.
“We doubled our EBITDA in the last five years. And as I look to the future, I am absolutely confident in our ability to double, indeed more than double, our consolidated EBITDA over the next five years.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
Ambani highlighted AI as potentially as important as the New Energy business and one of Reliance’s most prolific future growth platforms.
“Reliance Intelligence is going to be as transformative and consequential as our new energy business.”
“Hence, I envision this business becoming one of Reliance’s most prolific growth platforms.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
Akash Ambani outlined Reliance’s AI infrastructure ambitions and disclosed timelines and scale.
“Reliance Intelligence is building India’s sovereign AI backbone in Jamnagar.”
“The first 120 megawatts will be commissioned by the end of 2026.”
— Akash Ambani, Managing Director, Jio Platforms
One of the most significant disclosures regarding Reliance’s AI infrastructure capacity.
“As the first 120 megawatts becomes fully operational, this capacity can scale over 2 lakh H100 equivalent GPUs.”
“This capacity places Reliance amongst the largest AI infrastructure platforms being built anywhere in the world.”
— Akash Ambani, Managing Director, Jio Platforms
Reliance disclosed plans to enter satellite broadband infrastructure through a dual strategy.
“Jio is evaluating the development of a sovereign low Earth orbit satellite constellation for India.”
“We are also partnering with the leading global constellation providers by leasing satellite capacity.”
— Akash Ambani, Managing Director, Jio Platforms
Jio provided a long-term network migration target while discussing future telecom strategy.
“Our target is to migrate all subscribers to 5G by 2030, whilst advancing India’s leadership position in 6G standards.”
— Akash Ambani, Managing Director, Jio Platforms
One of the clearest long-term growth targets announced during the AGM.
“RCPL’s near-term ambition is to reach 1 lakh crores in revenue by FY30.”
“Our long-term ambition is to become one of India’s largest FMCG companies with a global platform to match.”
— Isha Ambani, Executive Director, Reliance Retail Ventures
Management highlighted the rapid scaling of the Campa brand.
“Campa achieved 4,700 plus crores in gross sales in FY26, having challenged decades-long market leadership.”
“It is now India’s fourth-largest carbonated soft drinks brand with a double-digit market share in key markets.”
— Isha Ambani, Executive Director, Reliance Retail Ventures
One of the largest new-energy disclosures in the AGM.
“The first phase of our 40 GWh annual BESS and cell giga-factory is on track to be commissioned this year.”
“We have now committed to scale this up to 120 GWh of annual capacity.”
— Anant Ambani, Executive Director, Reliance Industries
Investors have long awaited monetization of Reliance’s new energy investments.
“Commercial revenues from solar modules start rolling in this year.”
“From FY27 onwards, new energy will begin contributing meaningfully to Reliance’s financial performance.”
— Anant Ambani, Executive Director, Reliance Industries
One of the most ambitious targets announced in the AGM.
“Reliance aims to become an anchor institution for developing a globally competitive multi-sector export hub with a target to enable 125 to 150 billion dollars in exports by 2032.”
“This ambition is not only about creating a larger Reliance; it is about creating a stronger India.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
Mukesh Ambani framed AI not merely as a business opportunity but as a strategic imperative for India, alongside energy independence.
“Maximum energy self-sufficiency and AI self-sufficiency must become our national missions.”
“The success of these missions is critical to the success of Developed India.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
This highlights how Reliance’s earnings mix has fundamentally changed over the past few years.
“Retail and digital businesses contributed nearly half of the FY26 EBITDA.”
“Together they are increasingly becoming the primary drivers of Reliance’s future growth.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
One of the strongest statements regarding Reliance’s AI ambitions.
“Just as Jio made data extremely affordable for every Indian, Reliance Intelligence will disrupt AI economics by making it dramatically more affordable for every Indian by the end of this decade.”
— Akash Ambani, Managing Director, Jio Platforms
One of the strongest operational metrics disclosed for AirFiber.
“Home connections are now growing at a phenomenal rate of up to 60,000 per day.”
— Akash Ambani, Managing Director, Jio Platforms
A key monetization statement that could have direct earnings implications.
“As we launch more value-added services such as premium 5G, AI bundled services, and enterprise solutions, our ARPU will grow significantly.”
— Akash Ambani, Managing Director, Jio Platforms
Management is positioning RCPL as a global consumer products company.
“The rapid growth in our consumer brands business in India has given us the confidence to build a strong and scalable global FMCG business.”
— Mukesh Ambani, Chairman & Managing Director, Reliance Industries
One of the strongest growth disclosures in the AGM.
“RCPL achieved gross revenue of 22,000 crores, doubling year-on-year.”
“What took other peers decades, we achieved in just four years.”
— Isha Ambani, Executive Director, Reliance Retail Ventures
Management highlighted Reliance’s role in supporting India’s energy security.
“We increased LPG supply four-fold to help the nation tide over the import disruption.”
— Anant Ambani, Executive Director, Reliance Industries
One of the most overlooked but important technology-related disclosures.
“We are progressing towards operating Jamnagar as the world’s first end-to-end autonomous refinery.”
“An industrial milestone that will define the next era of global refining.”
— Anant Ambani, Executive Director, Reliance Industries
This shows the scale of the Kutch renewable project.
“Once fully operationalized, the integrated hub will generate over 40 billion units of green electricity every year.”
“Which is approximately 3% of India’s annual electricity requirement.”
— Anant Ambani, Executive Director, Reliance Industries
This marks the transition from capex-heavy investment to revenue generation.
“In FY26, this mission moved from construction to commissioning.”
“The Dhirubhai Ambani Green Energy Giga Complex at Jamnagar is now one of the world’s most integrated clean energy manufacturing ecosystems.”
— Anant Ambani, Executive Director, Reliance Industries
One of Mukesh Ambani’s most important governance comments. He formally indicated that the next generation is now leading Reliance’s growth engines.
“The next generation leadership of Reliance has now fully assumed operational responsibilities across our businesses.”
“They are delivering strong growth while remaining anchored to the values and principles that have shaped Reliance.”
— Mukesh Ambani, Chairman & Managing Director
Metals
Vedanta Group | Large Cap | Metals & Mining
Vedanta Group is one of India’s largest natural resources conglomerates with businesses spanning metals, mining, oil & gas, power, and critical minerals. Following the group’s landmark demerger, Chairman Anil Agarwal outlined an ambitious long-term vision centered on independent business verticals, large-scale expansion in power, steel, and energy, and sustained shareholder value creation through focused, technology-driven companies.
The demerger is intended to give each business its own identity and management focus, allowing them to pursue growth opportunities independently.
“It is a time it has grown like a banyan tree. So everybody should have his own identity and every company will be like a Vedanta. If we give them independence, each company... I have a vision, each company will be a hundred billion dollar company.”
— Anil Agarwal, Founder & Chairman, Vedanta Group
Management believes the demerger will be one of the most significant value-creation events for shareholders, with investors receiving stakes in multiple independent businesses.
“This is the best benefit they will ever get for the investment because you will get the four share and each company has the potential to be the same level. So it is a win-win situation... one thing I can promise that I’m very conscious that we should be dividend paying company and the value must be created for our shareholder.”
— Anil Agarwal, Founder & Chairman, Vedanta Group
Vedanta has outlined an ambitious long-term plan to build a 50,000 MW power business, leveraging its resource base and existing infrastructure.
“We are just starting as we started everything because demand supply is tremendous... I am very focused on thermal because we have amazing coal deposit... this company should go 50,000 megawatt, part of the nuclear and part of the thermal, technology AI-driven, environmentally friendly.”
— Anil Agarwal, Founder & Chairman, Vedanta Group
Management sees a significant opportunity to scale its oil and gas business and improve India’s energy security through higher domestic production.
“For me I’m looking forward to produce 500,000 barrel and then aiming for million barrel... our cost of production is $10. If 50% energy security is not there in a large country, we’ll be vulnerable. So it’s very important for us to be self-sufficient at least 50% for our energy security.”
— Anil Agarwal, Founder & Chairman, Vedanta Group
The company remains highly bullish on steel and believes India has substantial unmet demand despite planned capacity additions across the industry.
“The demand is 300 million ton. Even if everybody comes in, still there’s a huge gap... we are very keen on electric steel, green steel. So 15 million ton, time to come, is very important. We should start planning for 50 million ton of steel in this country also.”
— Anil Agarwal, Founder & Chairman, Vedanta Group
FMCG
Gillette India Limited | Large Cap | Personal Care
Gillette India is a leading consumer goods company specializing in grooming and oral care with a dominant market share in blades and razors. The company operates iconic brands like Gillette and Oral-B, focusing on product superiority and productivity to drive long-term value.
[Concall]
The company has integrated high-frequency data analytics to ensure products remain in stock across various retail points. This serves as a competitive advantage by minimizing lost sales in a complex and fragmented retail market.
“Every single day, over 2 million data checks are done to ensure that our consumers can always find their favorite products where and when they are looking for them. We are working to have the systems in place to make our work even more effective and efficient while maintaining the standards that consumers expect of us.”
— V Kumar, Managing Director
Management highlighted their long-term history of returning cash to shareholders through consistent dividends. This reinforces the company’s status as a stable, cash-generative business for long-term investment portfolios.
“Over the period of 30 years, if we look at it, it is a really consistent dividend payout that we have paid out. Let’s talk about the external landscape and how we see it evolving.”
— Vidya Srinivasan, Chief Financial Officer
Despite rising competition, the company maintains its dominant position in the shaving market through consistent year-on-year growth. This confirms the durability of their competitive moat and leadership in the core grooming business.
“The addressable size for Gillette is significant. At the same time, we have a role to play as market leaders. Gillette continues to be the market leader in the blades and razors segment, and we have grown year-on-year, as you saw in the earlier charts.”
— Vidya Srinivasan, Chief Financial Officer
The Guard brand has significantly expanded the company’s reach by adding 20 million new consumers in a short period. This massive user acquisition provides a large base for future product upselling and sustainable revenue growth.
“Let’s look at our iconic Gillette Guard portfolio as an example. Over the last 3 years, we have added nearly 20 million new users to the franchise. Even with these efforts, our teams remain committed to following a consumer-first approach, gathering insights, and taking those insights to build superior offerings that delight the consumer, which is what brings brand loyalty in the long term.”
— Vidya Srinivasan, Chief Financial Officer
The Venus brand is growing rapidly as female consumers increasingly adopt razors for at-home hair removal. This high-growth segment represents a significant new revenue stream that helps diversify the company’s historical male-focus.
“Venus already contributes double digits to our grooming business and is growing upwards of 20%. The biggest opportunity remains new user growth. Female hair removal is a diverse segment.”
— Vidya Srinivasan, Chief Financial Officer
The company is expanding beyond blades into the grooming appliances market with a new range of multi-functional trimmers. This strategic move targets the growing trend of facial hair styling among younger Indian consumers.
“Gillette Trimmers launched just 2 months ago have four unique product propositions that are designed to offer versatile grooming solutions. This targets the increasing demand for multi-functional devices that cater to both beard styling and body grooming.”
— Vidya Srinivasan, Chief Financial Officer
Real Estate
Prestige Estates | Large Cap | Realty | Multi-Year Visibility
Prestige Estates is one of India’s leading real estate developers with a strong presence across residential, commercial, retail, hospitality, and emerging asset classes. Management remains confident about housing demand, execution, and future launches, while highlighting a ₹65,000 crore unrecognized revenue pipeline, robust sales momentum, and growing opportunities in the data center segment.
The company has a massive backlog of sold units that will be booked as revenue in future periods as construction progresses. This provides investors with significant visibility into the company’s long-term revenue and profit potential.
“Today, we have around ₹65,000 crore of sales that have not yet been recognized in the profit and loss account. As we continue selling projects, unrecognized revenue keeps increasing.”
— Irfan Razack, Chairman & Managing Director, Prestige Group.
Management expects to convert their large sales backlog into reported earnings over a three to four-year horizon. Successful and timely project completion is the key factor that will determine when this value is realized.
“We believe this unrecognized revenue will come into the books over the next three to four years, while new projects continue to add to the pipeline. Ultimately, it’s all about execution and completion.”
— Irfan Razack, Chairman & Managing Director, Prestige Group.
Extremely fast sell-through rates for new launches indicate that buyer appetite for the company’s projects remains very high. High sales velocity is a positive sign for cash flow and reduces the risks associated with carrying unsold inventory.
“We recently launched Prestige Gardenia Phase 2, and it was practically sold out within three days. That’s the kind of demand indicator we look at. Whenever we bring the right product to market, sales continue to be robust.”
— Irfan Razack, Chairman & Managing Director, Prestige Group.
The group is moving into the data center sector, using its previous experience as a contractor to build its own specialized assets. This diversification provides a new growth engine beyond the core residential and commercial business.
“Data centres are a significant opportunity. We recently completed a data centre project as a general contractor in Bengaluru. That has given us experience in how these facilities are built.”
— Irfan Razack, Chairman & Managing Director, Prestige Group.
Software Services
Coforge | Mid Cap | IT Services | AI Tailwinds & Margin Expansion
Coforge is a global IT services company focused on banking, insurance, travel, and digital transformation. Management remains firmly bullish on growth, arguing that AI is creating new demand rather than destroying it, while targeting higher margins, pursuing strategic acquisitions, and outlining a path to potentially reach $5 billion in revenue by 2030.
Management believes AI will create more work opportunities rather than replacing the company’s services. This positive outlook counters fears that AI might disrupt the traditional IT services business model.
“Management maintains a contrarian view that AI is creating new demand pools and will act as a growth tailwind rather than a headwind. Coforge stated that maintaining its historical growth trajectory along with one meaningful acquisition could potentially take revenue to $5 billion by 2030.”
— Sudhir Singh, CEO & Executive Director, Coforge Limited
There is a plan to reach $5 billion in revenue by 2030 through organic growth and strategic buyouts. This long-term target shows the company’s high ambition and potential for massive scale.
“Coforge stated that maintaining its historical growth trajectory along with one meaningful acquisition could potentially take revenue to $5 billion by 2030. Headcount growth is expected to remain below revenue growth as productivity improves through AI adoption.”
— Sudhir Singh, CEO & Executive Director, Coforge Limited
The recent acquisition of Encora is performing better than expected in terms of cost savings. Successful integration reduces the risk for future acquisitions and proves management’s ability to execute deals.
“The Encora acquisition has already delivered 25%–30% G&A synergies, exceeding the original target. Acquisitions remain an important growth lever and management highlighted a strong integration track record.”
— Sudhir Singh, CEO & Executive Director, Coforge Limited
Coforge is looking to sign major deals with leading AI model providers soon. These partnerships will give the company better tools to serve clients and stay competitive in the AI race.
“Coforge is actively pursuing partnerships with major LLM providers and expects to conclude at least one significant partnership in the coming quarters. Management supports sovereign Indian AI models but does not intend to build foundation models itself, preferring to focus on AI-powered business solutions.”
— Sudhir Singh, CEO & Executive Director, Coforge Limited
Engineering & Capital Goods
RBM Infracon Limited | Small Cap | Construction & Engineering
RBM Infracon Limited is an integrated energy infrastructure company providing EPC, plant turnaround, and operation and maintenance services for the oil and gas, fertilizer, and power sectors. The company has recently expanded its capabilities into upstream crude oil services and green energy infrastructure both in India and the Middle East.
[Concall]
The company dramatically expanded its asset base this year by investing over 100 crores in new machinery and equipment. This aggressive capex is intended to support the execution of a growing and more complex order book.
“FY26 was our biggest year ever for investment in capabilities. Our gross block of property, plant, and equipment has grown from 24 crores to 113.11 crores—an addition of almost 100 crores in plant, machinery, and equipment in a single year.”
— Aditya Jaybajrang Mani, Whole-Time Director
The company is successfully expanding internationally and into the green energy sector through a new partnership in Oman. Investors should note this as a diversification away from traditional fossil fuel services.
“We have concluded an order worth 1.3 million Omani Rial with Acme Cleantech Energy for a green ammonia and green hydrogen project at the Duqm refinery in Oman. We are forming a JV with a local partner in Oman in the next few days. We are expecting a few more packages from this project.”
— Aditya Jaybajrang Mani, Whole-Time Director
The ONGC contract features a profit-sharing model where RBM retains a massive 66% share of all production above a set baseline. This structure provides significant financial upside if the company can successfully boost well output.
“For the incremental production from new wells, our commitment is 78 cubic meters. After meeting that top-up of 78 cubic meters per month—which is about 550 barrels—any production above that is considered incremental. On that incremental part, 34% goes to ONGC and 66% belongs to us.”
— Jaybajrang Mani, Managing Director
RBM is entering a semiconductor venture where its primary role will be capturing billions in civil and mechanical infrastructure work. The company will also hold a 30% equity stake, creating a massive potential pipeline for its core construction business.
“For this semiconductor project, there is about 2,000 to 3,000 crores in infrastructure work and 3,000 to 4,000 crores in machinery imports. Our first interest is to complete all the infrastructure work. I will also be a partner with a 30% stake.”
— Jaybajrang Mani, Managing Director
Management anticipates a massive surge in demand for refinery maintenance services in the Middle East over the next two years. RBM is positioning its workforce to capture this regional boom in plant shutdowns and pipeline work.
“Over the next 2 years, there will be so much work in the Gulf that you might not find enough people in India. Many refineries are seeking maintenance and shutdowns. We will handle pipelines and equipment maintenance.”
— Jaybajrang Mani, Managing Director
Dhara Rail Projects Limited | Small Cap | Railway Services
Dhara Rail Projects Limited provides specialized maintenance, repair, and installation services for Indian Railways’ rolling stock and electrical systems. The company operates an asset-light model and focuses on high-growth areas like Vande Bharat train maintenance and overhead equipment servicing.
[Concall]
The roll-out of high-tech Vande Bharat trains creates complex maintenance needs that play to the company’s technical strengths. Expanding into new geographic railway zones provides a clear path for volume growth beyond their current markets.
“The prevalence of Vande Bharat trains, which require high-technology intensity in their coaches, will also help Dhara. While we have a deep presence pan-India, we are increasing our footprint in zones where we previously had lower presence.”
— Shashank Velaya, Management
Almost the entire current order book is composed of direct contracts rather than sub-contracts. Investors should expect better profitability as the company no longer has to share its earnings with original equipment manufacturers.
“Out of the 184 crore order book, 95% consists of direct contracts; only about 5% is through other OEMs. Direct bidding definitely offers better margins because we have direct access to the customer. When we quote through an OEM, the margin is split, so we receive less.”
— Tejas Mehta, Chairman and Managing Director
Maintenance is a recurring business that generates steady income long after the initial construction of railway assets is finished. This makes the company’s revenue more stable and predictable than traditional construction firms.
“Once the Railways spends money and an asset is built, it must be maintained for 15 to 20 years. Infrastructure spending happens once, but maintenance is recurring and cumulative. The company can scale faster than overall railway infrastructure spending.”
— Tejas Mehta, Chairman and Managing Director
A majority of the company’s revenue comes from high-margin annual maintenance contracts. This mix supports overall profitability and provides a steady stream of predictable, recurring income.
“It fluctuates, but right now it is approximately 60% from AMCs and 40% from non-AMC work. The AMC business generates the higher margins.”
— Tejas Mehta, Chairman and Managing Director
Working directly for the government eliminates the risk of total payment default, though the timing of cash receipts can vary. Direct bidding gives the company more control over its financial relationship with the Indian Railways.
“This is sovereign work, and the government pays us. Payments can sometimes be delayed, but there is no existential risk. Major challenges and risks are mitigated by the fact that Dhara is doing more direct bidding.”
— Shashank Velaya, Management
RMC Switchgears | Nano Cap | Engineering & Capital Goods
RMC Switchgears Limited is an ISO 9001:2008 certified company specializing in designing and manufacturing Enclosures of Energy Meters, LT/HT Distribution Boxes and Panels, Junction Boxes, Feeder Pillars, and other Power Distribution and Circuit Protection Switchgears. They use Mild Steel, Stainless Steel, Sheet Moulding Compound (SMC), and Bulk Moulding Compound (DMC) materials in their fabrication process.
[Concall]
PulseBox was the single biggest opportunity discussed during the call. While management clarified that this is not guidance, it believes the addressable market is substantial.
“Within this, management estimates that approximately 75 lakh transformers may represent a realistic, addressable opportunity for PulseBox-type deployment.”
“This represents a potential addressable market opportunity for at least Rs. 50,000 crore plus for the Indian market.”
— Ankit Agarwal, Whole-Time Director & CEO
Management used this example to demonstrate real-world effectiveness.
“Within 7 days, we gave them around 388 alarms.”
“There were two or three critical alarms because of which they have shifted the transformer, they have replaced the transformer before anything adverse could have happened.”
— Ankit Agarwal, Whole-Time Director & CEO
Management tied future growth to India’s power infrastructure buildout.
“The Government of India has announced the transmission investment in transmission infrastructure of around Rs. 9 lakh crore till 2032.”
“Transmission line has become a really very big bottleneck.”
— Ankit Agarwal, Whole-Time Director & CEO
PulseBox is being positioned directly into the government’s grid-modernization push.
“The Indian government is going under a phase two of RDSS modernization.”
“The Indian government is focusing on how we can digitalize the infrastructure of electricity in India.”
“That is where our PulseBox sits.”
— Ankit Agarwal, Whole-Time Director & CEO
This is the macro thesis underpinning the company’s long-term strategy.
“Till 2047, power is one sector that we believe will grow multi-fold in the next, I think, 15 years.”
— Ankit Agarwal, Whole-Time Director & CEO
Management explicitly acknowledged that B2G concentration affects working capital.
“We want to increase more of B2B, and we want to reduce B2G.”
“The only idea behind is if we can control the debtor days.”
— Ankit Agarwal, Whole-Time Director & CEO
This is one of the clearest diversification initiatives discussed.
“We are eyeing on some going into medium voltage and high voltage.”
“That is the part where we can sell this product to the solar power plants, solar generation plants, thermal plants.”
— Ankit Agarwal, Whole-Time Director & CEO
This clarifies a previously discussed diversification strategy.
“We are not going ahead with the water management now anymore.”
“We are focusing on energy now.”
— Ankit Agarwal, Whole-Time Director & CEO
An interesting perspective on growth and tender eligibility.
“In the last 4 years, we have gone from Rs. 40 crore to Rs. 410 crore.”
“Going Rs. 400 crore to Rs. 4,000 crore would be comparatively easier.”
“Once you have Rs. 400 crores, then you can participate in much more bigger tenders.”
— Ankit Agarwal, Whole-Time Director & CEO
This is perhaps the clearest articulation of the strategic transformation underway. Management wants to move from competing on price to solving utility problems through technology.
“Currently, I would say that we would be considered as an EPC company in a red ocean market.”
“Where the competition decides everything, where the price decides everything.”
“Now we are focusing only on technology.”
— Ankit Agarwal, Whole-Time Director & CEO
This comment reveals the philosophy behind PulseBox and future R&D investments.
“What we have felt when we had done our first project of Maharashtra, that solving problem of a customer should be the ideal thing for a company to do.”
“And that is where you can build a company, build an institution.”
— Ankit Agarwal, Whole-Time Director & CEO
One of the strongest explanations of the product’s value proposition.
“Smart meters cannot directly solve this problem.”
“They only do energy auditing.”
“They can’t stop it.”
“My PulseBox will be able to stop it, will be able to cut the current as soon as it detects the issue.”
— Ankit Agarwal, Whole-Time Director & CEO
Management highlighted a significant difference in utility response time.
“A smart meter will tell after 30 days.”
“The PulseBox will react on the same time, in real time.”
— Ankit Agarwal, Whole-Time Director & CEO
This is a notable industry observation and forms the basis for PulseBox’s market opportunity.
“Grid has been modernized, substations have been modernized, smart meters have been installed.”
“The only LT layer which we are focusing on is left.”
“Putting technology on it will help the utilities.”
— Ankit Agarwal, Whole-Time Director & CEO
Useful insight into RMC’s R&D strategy.
“We have developed this technology through our domestic and international teams.”
“This is the outcome of that effort.”
— Ankit Agarwal, Whole-Time Director & CEO
One of the most interesting strategic comments in the call.
“The product will always be made in India, but the technology will always be from a Western country.”
“Because they are the innovators, we are the producers.”
— Ankit Agarwal, Whole-Time Director & CEO
Finolex Cables | Small Cap | Engineering & Capital Goods
Finolex Cables Limited, established in 1958, is India’s largest and leading manufacturer of electrical and telecommunication cables. It has recently diversified into the fast-moving electrical goods (FMEG) segment with the aim of becoming a complete electrical products company. The company is principally engaged in the manufacturing of Electricals Cables, Communication Cables & other electrical appliances.
On growth prospects for Finolex Cables’ largest segment, the electrical cables business, amid copper price volatility.
“It depends a little bit on where copper is going to be with the kind of volatility that we have seen. Last year there was quite a bit of volatility. Copper prices went up close to 25% or so and we had to keep pace with that change in commodity prices. What then the market will bear is not something that I want to predict at this point in time. But yeah, provided things are normal, double-digit growth is not impossible.”
— Mahesh Viswanathan, CEO, Finolex Cables
On the communication cables business and the impact of the company’s integrated glass manufacturing facility.
“We are backward integrated and our glass factory is now fully operational. We should get the benefit of making our own glass from the next quarter onwards once the factory stabilizes.”
— Mahesh Viswanathan, CEO, Finolex Cables
On upcoming capacity additions in fiber manufacturing.
“We currently have a glass capacity of about 100 tonnes, which translates to 4 million fiber kilometers. We have a current draw capacity of about 4 million fiber kilometers, which we are increasing to 8 million fiber kilometers and that should be ready in a month or two’s time. So from the second half we should be having enhanced capacities.”
On managing rising metal costs and pricing strategy.
“Our policy has been that we treat metal prices as a pass-through. Whether there’s a price increase on the commodity side or a decrease on the commodity side, we pass it on to the customer. There might be a small lag.”
On long-term profitability of the electrical cables business.
“In the long run, what one can expect is a blended average of somewhere around 12%. That should be something that is sustainable.”
On the impact of a large new competitor entering the industry.
“We know that they are coming, so we are preparing ourselves to handle that challenge.”
On whether the new entrant could replicate the disruption seen in the paints industry.
“What strategy they would follow is not fully transparent as yet. I’m not sure if they will do a repeat of the paints business or they would try something else.”
On how the industry structure could evolve over time.
“Long term, I think there would be some consolidation. Today you have quite a few smaller players and those probably would get consolidated one way or the other. I think there is enough space and market for five or six of the larger players to continue to operate with reasonable market share among themselves.”
On whether the new entrant poses a major threat.
“It would be a challenge, but then we are prepared. We are ready for it.”
On the company’s long-term ambitions in the FMEG segment despite recent underperformance.
“A few years ago we put out a statement saying that we would like to see this first reach a level of ₹500 crore and then we would like to scale it up from there. Our faith in that segment still continues.”
On why the FMEG business has fallen short of expectations.
“We realize that there are things that we need to work on. It could be on the distribution side. It could be on the product mix. It could also be on the overall strength of the team that is handling this.”
On the company’s approach to inorganic growth.
“We have looked at a few, but the ask has been fairly high. I am okay with multiples of bottom line, but I’m not so sure about multiples on the top line and that seems to be the trend that the bankers are working towards nowadays.”
On the use of the company’s large cash balance.
“We are definitely interested in acquisitions and inorganic growth.”
forums and I don’t think I should be commenting on that.”
On how the company is functioning despite the promoter dispute.
“As far as the company is concerned, it’s run by a board. Matters that can be handled at the board level are being handled at the board level.”
— Mahesh Viswanathan, CEO, Finolex Cables
Defence
BEML | Small Cap | Defence
BEML Limited, originally Bharat Earth Movers Limited, is a Public Sector Undertaking founded in 1964 in Bangalore. It operates in three major business verticals: Mining & Construction, Defence, and Rail & Metro.
[Concall]
This is one of the strongest indicators of revenue visibility and execution certainty.
“The current year, we started with the 5,500 crore order book executable order for the year.”
“First time in the history of the company, we are at this situation.”
— Shantanu Roy, Chairman & Managing Director
This provides a sense of the scale of tenders and opportunities currently visible to BEML.
“If you look at the orderbook pipeline, this year we have an opportunity size of around 40,000 crore.”
“Which mainly consists of 70% from the rail and metro, 20% from the defense, 5% from mining, 5% from exports.”
— Shantanu Roy, Chairman & Managing Director
A key revenue growth driver for FY27. Rail & Metro execution is expected to double this year
“This year we are expecting an execution from Rail Metro of at least 2,000 crores.”
— Shantanu Roy, Chairman & Managing Director
Management is signaling a structural shift away from mining-led revenue dependence.
“Rail metro should account for very shortly 40%, 45%.”
“Rail metro and defense put together should do somewhere around 65% to 70%.”
— Shantanu Roy, Chairman & Managing Director
Management is positioning BEML as one of the few Indian companies capable of building 350 kmph trainsets.
“The seven corridors which have been announced.”
“So seven corridors, it will all be 350 KMph aluminum.”
“We have already started preparing for aluminum almost for a year.”
— Shantanu Roy, Chairman & Managing Director
BEML is actively pursuing metro and mining opportunities outside India.
“Now we are targeting two more rolling stock metro opportunities, one in Tel Aviv and the other is in Dublin.”
— Shantanu Roy, Chairman & Managing Director
One of the largest defence opportunities discussed in the meeting.
“We are one of the three shortlisted bidders for the AMCA project.”
“The ticket size is 15,000 crores.”
— Shantanu Roy, Chairman & Managing Director
BEML continues to aggressively invest in indigenous product development.
“Sustainable number for R&D spend should be around 7%.”
“We have already reached 6.25% of the revenue in last year.”
“We have already some 40 odd products lined up.”
— Shantanu Roy, Chairman & Managing Director
Management sees exports as not just a growth opportunity but also a profitability lever.
“Suppose we plan for a EBITDA of around 20% for exports.”
“If the dollar further goes up, it will go up to 25% also.”
— Shantanu Roy, Chairman & Managing Director
One of the most ambitious diversification plans disclosed during the meeting.
“It should, because the tunnel boring machine requirement is huge.”
“The ship to shore crane manufacturers in the country.”
“We are looking at around 80 to 100 ship to shore cranes.”
— Shantanu Roy, Chairman & Managing Director
A key milestone for India’s indigenous bullet train program.
“We expected that the first car body will be out by August.”
— Shantanu Roy, Chairman & Managing Director
Management views mining electrification as a major international opportunity.
“The EV trucks, they will open a big market for us in the exports.”
“The dump trucks.”
— Shantanu Roy, Chairman & Managing Director
Excellent insight into management’s portfolio strategy.
“Mining is a fast turnaround product and gives us quick cash.”
“Whereas defense, it’s a long gestation period.”
— Shantanu Roy, Chairman & Managing Director
Perhaps the most important margin-related statement in the meeting.
“Break even now it’s somewhere near Rs. 4,000 crores.”
“Any sales revenue we do above that number, it results in exponential contribution to the bottom line.”
— Shantanu Roy, Chairman & Managing Director
IT Services & Distribution
Redington | Mid Cap | IT Services & Distribution
Redington is a leading global technology distributor that connects international brands with thousands of resellers across India, the Middle East, and Asia. The company is currently pivoting from hardware distribution to an orchestration model focused on software, cloud services, and cybersecurity.
[Concall]
Customers now prefer to pay for software as a monthly subscription rather than buying it once upfront. This shift requires Redington to manage long-term relationships rather than just individual deliveries.
“The first is the consumption models moving from perpetual licenses to flexible, outcome-based subscriptions. The customer’s choice to subscribe for a service rather than owning a license is a major shift. The second part is about platform-led distribution.”
— Sayantan, Global Head of SSG
Management is targeting $5 billion in revenue for the software segment with healthy margins. If they can sell more high-end services, the profit margins could exceed their current 6% target.
“Overall, in the next 3 years, we expect to achieve a revenue of about $5 billion with a gross margin range between 5.5% and 6%. If the professional services mix improves, this can definitely be better than 6%.”
— S.V. Krishnan, Director - Finance
For certain software sales, the company only records the profit as revenue instead of the full contract value due to accounting rules. Investors should note that the actual cash moving through the business is higher than the reported revenue figures suggest.
“There is a portion relating to renewals, subscriptions, and vendor-led services where IFRS rules dictate we cannot take the full invoice value as revenue. The spread, or gross margin, becomes our revenue. If you take SSG as 100%, this piece is about 5% of the mix.”
— Management, Q&A Section
Redington is outperforming global trends in hardware, which makes it harder for the software segment to become the dominant part of the company. They are aiming for software to eventually make up one-quarter of total group revenue.
“In FY26, our hardware business grew at 17%, whereas hardware distribution globally is de-growing by 2-3%. If hardware continues to grow at 15-20% and software grows at 30-35%, the ratio could remain in the 17-25% range. Our aspiration is for SSG to reach about 25% of our business in the coming years.”
— Management, Q&A Section
Redington is avoiding expensive custom consulting and instead building standardized service packages that can be sold many times. This strategy is designed to grow service revenue by 7 to 10 times without needing a massive army of employees.
“We are not an IT-ITES company; we aren’t doing bespoke million-dollar custom deals. We are creating ‘productized services’ for AI, cloud, and security that complement our partners. Our goal is to multiply professional services 7-10x over the next few years.”
— Management, Q&A Section
A major 5-year deal with Amazon Web Services highlights Redington’s importance as a top-tier global partner. This long-term contract provides a strong foundation for future growth in the cloud and AI sectors.
“We are among the few partners globally to enter into a multibillion-dollar, 5-year Strategic Collaboration Agreement with AWS. This commitment focuses on partner enablement, GenAI adoption, and new customer acquisition across SMBs, startups, and the public sector.”
— Kalyan Pola, Principal Partner Development Manager, AWS
That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!
Quotes in this newsletter were curated by Meher, Shahid, & Srusti.
Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.