The Chatter: Scaling Through Slowdowns
Edition #31
Welcome to the 31st 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 22 companies across 11 industries, along with some international features.
Retail
Eternal Ltd
Engineering & Capital Goods
Havells
Polycab
Financial Services
South Indian Bank
ICICI bank
Au Small Finance Bank
Energy
Reliance Industries
JSW Energy
Media & Entertainment
TIPS Music
Chemicals
Rallis India
Manorama Industries
Consumer Durables
Dixon
Software Services
Tata Tech
L&T Technology Services
Real Estate
Sobha
Building Materials
Kajaria Ceramics
Metals
JSW Steel
International
Nestlé
Heineken Holding
The Coca-Cola Company
Hermès International
General Motors
Retail
Eternal Ltd | Large Cap | Retail
Eternal Limited, formerly known as Zomato, operates a B2C technology platform offering seamless food ordering and quick delivery solutions. Its businesses include Blinkit for on-demand product delivery, Going-out for customer entertainment needs, and Hyperpure for B2B food supplies.
Dhindsa signalled ad-spend intensity will remain high near term as long as new-user acquisition costs stay attractive.
“What we are seeing right now is that there are new consumers out there in the market, and if we are targeting them, we are able to onboard them at a reasonable marketing cost which is why we spent more on marketing this quarter as well.
So, till the point that we keep seeing this trend, we will keep investing however much that we can to basically power more growth. So, you should expect this to continue in the next quarter as well.”
— Albinder Singh Dhindsa – CEO, Blinkit
Marketing efficiency improving despite heavier spend; implies better scalability of Blinkit’s cost base.
“Now that we are at about 1,800 stores, it’s a much wider geographical footprint. So, our addressable market has also expanded in the last few months and quarters. As a result, the CACs are not going up when we spend more because there is sort of operating leverage on the marketing costs now.”
— Akshant Goyal – CFO
Confirms margin lift was pricing-led, not demand-led; competitive pricing dynamics in play.
“The main delta here is increase in platform fee that happened in the middle of the quarter, which we did not anticipate or estimate at the beginning of the quarter, when we declared the last quarter’s result. And our increase in platform fee was more of a reaction to what our competitor did. So, that’s why you see the growth in margin versus our earlier guidance of margin perhaps remaining flat”
– Akshant Goyal – CFO
Reaffirms medium-term 20 % growth ambition despite near-term drag.
“Guidance cannot be always close to the current growth levels. Then it’s not really a guidance. So, the reality is the current growth rate number, which is around 15%, but whether you give guidance of 10% or 20%, you will have no basis for that. It’s a judgment call and in the last letter we did say that for this financial year, we’re unlikely to be at 20%, and we’re expecting a 15% sort of year-on-year growth. But longer-term, our view on 20% remains as of now. And if that changes, we’ll communicate, but that’s where we are right now.”
– Akshant Goyal – CFO
Clarifies staged benefit timeline from inventory transition.
“What we meant last time and maybe we can clarify if there was any confusion is that the realization of the margin gains will start happening immediately, which has happened even in this quarter. But the overall margin accretion of 1% will take some while, because it requires you to negotiate with brands, you’re signing contracts directly with brands, and that process cannot happen in one shot”
– Akshant Goyal – CFO
Highlights gross-to-net compression from assuming first-mile logistics costs.
“So, the entire margin expansion is not just on account of this business model change. There is actually a meaningful margin expansion outside of that also. Right now, I would say, therefore with respect to this 3 percentage point gross profit increase, the cost side increase is on account of the supply chain costs that were moved from the sellers to us. We’re not giving a split of how much of the contribution margin gain is because of the business model change and how much of it is because of other efficiency and operating leverage, but that’s what I wanted to highlight that it’s a combination of both. “
– Akshant Goyal – CFO
Urban density still drives Blinkit economics.
“So, more than 70-75% of our store addition continues to be in the top 10 cities. While the number of city count seems to be exploding, but number of stores in these long tail cities is really small. So, majority of the business and the success of the business is still linked to how well we do in the top 8 to 10 cities, and that remains the focus.”
– Akshant Goyal – CFO
Engineering & Capital Goods
Havells India | Mid Cap | Engineering & Capital Goods
Havells India Limited is a prominent player in the electrical manufacturing industry, producing a variety of products like switchgears, cables, lighting fixtures, and electric consumer durables. The company operates through segments including switchgears, lighting, cables, and electrical consumer durables, providing a diverse range of products to domestic and industrial customers.
Opening remarks highlighting the key challenge in Q2 - excess inventory from weak summer season affecting growth and margins.
“The summer products experienced weakness with overhang of shorter summer and higher channel inventories. Air conditioners, fans and coolers’ revenue declined Y-o-Y. This not only impacted our growth and margins, but also led to elevated working capital levels. We have been working closely with our channel to increase consumer offtake, and we believe that the channel inventories will normalize by the end of Q3.”
- Anil Rai Gupta, CMD
Discussing the impact of upcoming January 2026 BEE rating changes on Q3 inventory management.
“There will be liquidation of inventories in the third quarter because of the BEE rating changes. Depending upon how much inventory is there, depending upon how much of the old ratings will be produced, we’ll definitely be offloading that inventory to the channel. The channel can sell that inventory to the consumers in the coming quarter as well. But the manufacturers will limit their production to that extent as it can be liquidated during the third quarter.”
Explaining that benefits of recent GST cuts will be offset by BEE-related cost increases coming in January 2026.
“This is unfortunate that the GST reduction is not fully being passed on to the consumers because of these changes, which will happen in the 1st of January. So which means the prices will come back to almost the same levels as before. But otherwise, yes, the cost increases will be passed on.”
Expressing optimism about demand recovery in early Q3, with rural growth returning and pent-up demand being released post-September 22.
“We definitely see positive momentum, especially also because of the fact that there was some pent-up demand. Until 22nd of September, there was a slowdown of sales. So the channel is also picking up materials. They’re also clearing their old inventories also in the system. But we do believe that there is a better pickup. The rural area’s growth is also coming back.”
Defending wires performance by pointing to strong H1 mid-double-digit growth despite Q2 appearing weaker due to dealer stocking patterns.
“If you see first quarter, our wires sales were showing a much higher growth. If you actually see the first 6 months, it also depends upon stocking of material at the dealers and depending upon the price increases or price reduction. So I would not see wire performance on a quarter-on-quarter basis. So what we track is market shares, and I think we continue to be very strong in wires. And overall, if you see the first half of the year, our growth in wires has been quite good, mid-double digits.”
Management highlighting that Goldi Solar investment benefits will materialize in H2 with strong growth expected over next 2-3 years.
“Generally, second quarter is a low season for the solar business. I think third and fourth quarter, we are expecting very decent growth in the solar. In this quarter, it is good, but real growth will come in third and fourth. Second half is generally a good time period for the solar.”
– Anil Rai Gupta (CMD)“The real benefits of that will start coming from the supplies point of view, strategic supplies. So because of these, we will continue to have a very good growth in the coming 2 or 3 years.”
– Rajiv Goel (Executive Director)
Emphasizing premiumization as the key strategy to maintain margins despite competitive intensity, with premium mix increasing across categories.
“I feel that the real play in Havells kind of a brand is premiumization. So while competitive intensity keeps going up in every category, our focus has always been our strength, innovation, distribution and brand. All I can say on this call is that in products like fans, appliances, room heaters, air conditioners, our share of premium products and that there’s a certain definition, share of premium products in the overall portfolio is high & increasing.”
– Anil Rai Gupta, CMD
Polycab India | Large Cap | Engineering & Capital Goods
Polycab India is a leading manufacturer and seller of diverse wires and cables for retail and industrial use, serving various industries. The company is expanding into Special Purpose Cables (SPC) and Extra High Voltage (EHV) cables to meet demands in smart cities, renewable energy, and electric vehicles.
Complete resolution of tax matter with CIT (Appeals) ruling in full favor of Polycab, eliminating ₹525 crore tax demand and ₹175 crore interest.
“As you would recall, in December 2023 the Income Tax Department conducted a search at the company. Following the search, assessment orders for AY2014–15 to AY2023–24 were issued during FY24–25, resulting in a total tax demand of ₹525.63 million and interest of ₹175.58 million. The company appealed these orders in the quarter ended September 30, 2025. The CIT (Appeals) allowed the company’s appeals in full, resulting in no tax demand.”
– Gandhar Tonga (CFO)
Demonstrating sustained momentum with 21% growth on a very high 28% base from Q2 FY25, indicating market share gains.
“The W&C business delivered 21% year-on-year revenue growth, supported by high-teens volume expansion during the quarter. The domestic W&C business recorded a strong 21% year-on-year growth despite a high base from the previous year, which had witnessed 28% year-on-year growth. This performance was driven by higher government spending, improved project execution, and a favorable commodity environment.”
– Chayo Pandey (Head - IR)
Highlighting balanced growth across channels and all regions, with North leading followed by West, South, and East.
“Sales across both distribution and institutional channels showed healthy traction, indicating broad-based demand. Regionally, the North led growth, followed by the West, South, and East—reaffirming our strong pan-India presence.”
– Chayo Pandey (Head - IR)
Noting ₹1 lakh crore additional devolution to states for capex acceleration, supporting infrastructure demand outlook.
“Looking at the broader environment, demand remains robust across key sectors. Central government capex spend continues to remain strong. Additionally, the Government of India released an extra ₹1 trillion in tax devolution to states on October 1 ahead of the festive season to accelerate capex and welfare spending—a timely fiscal boost for infrastructure and development projects.”
– Gandhar Tonga (CFO)
Highlighting front-loaded government spending with 38% of annual capex already deployed by August, de-risking full-year execution.
“Government capex remains strong, growing 43% year-on-year till August 2025, with around 38% of the FY26 outlay already spent. This provides confidence that full-year targets should be met comfortably.”
Identifying green shoots in private capex after prolonged weakness, though still below historical peak of 35% (currently ~30%).
“India’s private capex cycle is also showing early signs of revival after a period of subdued activity, supported by monetary easing (rate cuts and liquidity infusion), fiscal stimulus (front-loading of capex and tax cuts), and regulatory reforms. While the capex-to-GDP ratio remains below its historical peak of roughly 35% (2004–2008), currently standing at ~30%, the outlook continues to improve.”
Attributing strong volume growth to fundamental demand rather than channel stocking, supported by government and early private capex recovery.
“In H1 we have seen better traction in volume growth, but this is largely linked to fundamental demand. We don’t see significant inventory build-up in the channel right now. Government capex has been front-loaded (38% of annual target already spent), and we see green shoots in private capex. All of this supports volume growth in cables and wires.”
– Chayo Pandey (Head - IR)
Expressing confidence in H2 acceleration given strong Q2 performance despite extended monsoon headwinds.
“Q2 is generally hampered by the monsoon, and this year it was extended, yet we delivered strong numbers. With the monsoon over, execution should pick up. Government H1 spend has been strong, and private traction is visible. We have a positive outlook for H2, but won’t quantify volumes.”
Noting continued strength in real estate following record FY25 sales/launches, providing tailwind for wires business.
“The real estate sector remains healthy, though with some signs of moderation. The real estate market remains strong following last year’s record sales and launches—a trend that should continue to support wires demand in the coming years.”
– Gandhar Tonga (CFO)
FMEG lighting, switches, and switchgear benefiting from real estate demand and festive season momentum.
“The lighting business gained traction due to festival demand, registering healthy growth in switches, switchgear, and conduit solutions. Healthy demand from real estate continues.”
Clarifying that Polycab’s institutional export model (vs distributor-led) meant no pre-stocking ahead of tariffs, just steady order book execution.
“Export margins are higher, but unlike some peers, we don’t operate via distributors in exports—we supply directly to institutional clients. Institutional buyers don’t pre-pone purchases; distributors do. So we didn’t see pre-stocking in exports due to tariffs or copper moves; it’s just execution of the order book.”
-Chayo Pandey (Head - IR)
Explaining YoY gross margin expansion—less competitive intensity than Sept 2024, plus premiumization in wires (Class 2) and cable mix improvement.
“We didn’t see the same heightened competitive intensity in wires this time. Last September, copper spiked sharply over 3–4 days at quarter-end, which heightened competition. This time the increase was over a longer period, so competitor behavior differed. Our internal initiatives also helped—focus on Class 2 (premium) wires has improved mix, lifting margins. In cables, we’ve seen sales of better-margin SKUs rise.”
Explaining monthly price revision mechanism for 90% distributor business, with Sept copper uptick passed through in October.
“On pricing, ~90% of our business is through distributors, and we revise prices monthly. So movements in a month are passed through in the subsequent month. The uptrend in copper toward the end of September was passed through in early October. Average September copper prices year-on-year were largely flat, hence limited impact in Q2.”
Asserting sustained pricing power with premium intact versus competition, reflected in expanding gross margins.
“We don’t see increased competitive intensity; that’s visible in our gross margins. Our pricing premium versus peers remains intact, and we don’t expect material changes near-term.”
Addressing large new entrants—noting long lead time before entry, initial focus on already-oversupplied wires, and Polycab’s track record of gaining share despite competition.
“Announcements from these conglomerates [Adani, Birla] came earlier this year. It will take time for them to enter. One player has shared timelines for commissioning; the other hasn’t. Even for the one with timelines, their initial focus is largely on wires. Wires has historically been oversupplied, with competition from large organized and unorganized players. We’ve continued to grow and gain share in that environment.”
Clarifying EHV vs HVDC—current focus is EHV; HVDC is 10+ year opportunity requiring tech development/acquisition, with no Indian player currently capable.
“The EHV plant we’re putting up is for EHV opportunity. As of now, we’re not looking at HVDC. HVDC may be a longer-term opportunity (decade-plus). Currently, projects are limited, no Indian player has HVDC manufacturing tech, and supplies will be imported. In the next few years, we may evaluate developing or acquiring the tech.”
Highlighting SPC vertical targeting defense, auto, and railway coaches, with approvals secured and supplies scaling over past 2-3 years.
“Yes. We have a Special Purpose Cables (SPC) vertical serving defense, automotive, and railways (coach) applications. Over the last 2–3 years we’ve developed products and secured approvals. We’ve been consistently increasing supplies. As new investments come through in these sectors, we are an approved player and expect good growth.”
SPC at low single-digit contribution today but positioned as fastest-growing vertical; cable demand ~2.5-3% of sector capex (defense/railway/EV auto).
“Within SPC we cater to defense, automotive, and rail coaches. Combined, SPC currently contributes low single digits of W&C revenue, but given investments in these sectors, it could be one of the fastest-growing verticals. To size demand, track government announcements (defense, railways) and EV investments in auto, and apply ~2.5–3% of capex to estimate cable demand.”
Segmented wire brand strategy—AIRA for Tier-2/3/4/5 competing with unorganized; Supriya/Prima premium for metros/Tier-1; Class 2 premiumization driving margins.
“For Tier-2/3/4/5 cities we have the AIRA brand (introduced ~3–3.5 years back) which competes effectively with unorganized offerings. Supriya, Prima, and other ranges are more premium and are largely used in metros and Tier-1. As mentioned earlier, we’re seeing strong traction in Class 2 (premium) wires, which has improved our mix and margins.”
FMEG also on track with 1.5-2x industry growth and margin improvement path; dividend payout increasing toward 30% FY30 target (currently 26.3%).
“In FMEG, we continue to outpace industry growth in line with our plan of growing 1.5x to 2x the market rate, while maintaining focus on margin improvement and progressing toward the 8–10% EBITDA target by FY30. For FY25, we raised our dividend payout to 26.3% from 25.5% last year, in line with our goal of crossing 30% by FY30.”
– Chayo Pandey (Head - IR)
Providing global macro context with weakness in US, Eurozone (Germany/France), and China still in manufacturing contraction.
“Major global economies are beginning to show signs of a slowdown in economic activity. In the US, indicators across the labor market, manufacturing, and services point to easing momentum. In the Eurozone, manufacturing is being weighed down by softness in both Germany and France, where reforms are progressing more slowly than expected, affecting business sentiment. In China, manufacturing activity improved slightly in September 2025 but remains in contraction territory, constrained by weak export orders.”
GST cuts during festive season expected to boost consumption, with rural supported by strong monsoons, though urban showing some wealth effect moderation.
“The recent GST rate revisions are expected to further boost consumption, especially as they coincide with the festive season. Rural consumption remains supported by last year’s good monsoon and this year’s above-normal rainfall; urban demand has seen some moderation in wealth effects. However, the combination of GST and income tax cuts and soft inflation is supporting consumer sentiment.”
– Gandhar Tonga (CFO)
Financial Services
South Indian Bank | Small Cap | Financial Services
South Indian Bank is one of the earliest banks in South India, established during the Swadeshi movement. It aims to provide a safe and efficient repository for savings and offer need-based credit to free the business community from exploitative money lenders. Based in Thrissur, Kerala, the bank has been serving the community with a focus on service orientation.
Management confidently stating that Q2’s 2.8% NIM represents the trough, with recovery expected as rate cuts have been fully transmitted and balance sheet mix improves.
“The net interest income, the yield compression that you saw was an account of the reduction of the external benchmark rates. So, when RBI announced the 100 basis points cut during the first half of this year that is what is going through now. In our case, we ensured full transmission as quickly as possible so that we got to the bottom of the rate cycle. So, what you see now at 2.8% is, to the best of our knowledge, the lowest ebb in terms of interest rates from a NIM perspective. We expect NIMs to recover going forward.”
- P R Seshadri (MD & CEO)
Explaining why South Indian Bank’s NIM compression was more severe than peers - concentrated exposure to short-duration corporate lending that repriced faster.
“The reason why we are a little bit more impacted than other banks is that we had a large corporate book and within that corporate book, we had a large preponderance of very short duration assets... So, when the repo rates came down and there was significant infusion of liquidity into the system, the short end of the assets actually yield dropped significantly more than in the longer end. And since we were overexposed to that, we got impacted more than some of the other institutions.”
Managing expectations on gold loan growth - already at 20.4% of book (Rs. 18,845 crore), approaching prudential limits despite strong market opportunity.
“From our point of view, there are limits to how much the gold can actually grow. As a Bank, we will start hitting prudential caps at some point. At this point in time, we are about 20.4% of our balance sheet is gold. So, it is not possible for us to expand this indefinitely. So, I think we have had approximately Rs. 1,800 crores or so of very significant growth. We think that will continue in the near term. But at some point in time, we will have to pull back and see what is appropriate for a balance sheet of this size.”
New ECL norms will have limited P&L impact due to tight portfolio quality - SMA 1+2 at only 80 bps with high existing provision coverage (90%+ including write-offs).
“The ECL norms that RBI has just said, basically says that in Stage-II assets, where we were keeping 40 basis points of reserves, that has to move to 500 basis points. So, there is a 460 basis point delta there. So, that delta will get applied to a portfolio which is a little less than 100 basis points. Ballpark is SMA 1 and 2 for us. So, if you apply this 460 basis points on 80 basis points, it is not a very material number in terms of impacting future credit costs.”
– P R Seshadri (MD & CEO)
Strategic shift to reduce corporate from 40% to ~33% over 18 months while improving yields within corporate through mid-corporate focus, with retail/MSME taking up the slack.
“The challenge of a 40% share of our overall advance book coming from corporate and to cycle it out is going to take a while. So, what we thought is that corporate as a vertical itself has to cycle out a good portion of the corporate book and get to a stable book with a higher or better yielding book... And keep the corporate book stable with a better yielding book. That is the way we go forward from here.”
- Dolphy Jose (Executive Director)
Increased both HTM and AFS investment books (up Rs. 7,000 crore in quarter) as directional bet on interest rates falling, positioning for capital gains and arbitrage opportunities.
“We have grown our HTM book a little bit, because we do believe that we are hoping that interest rates are headed in our favor in the future, which at some level is a call on the interest rate. We have also grown our AFS book. So, if there is a change in the interest rate regime, it will give us a trading opportunity subsequently... If you were to try and summarize it in one line, perhaps, there is a view that interest rates would soften going forward.”
-- P R Seshadri (MD & CEO)
ICICI Bank | Large cap | Financial Services
ICICI Bank is a leading private sector bank in India providing a wide range of financial products and services to retail, SME, and corporate customers. With a strong presence across urban and rural areas, the bank offers digital banking solutions, international services, and financial solutions to businesses and government entities.
[Concall]
Domestic loan growth accelerated sharply to 3.3% QoQ from 1.5% in Q1, while CASA deposits grew 9.7% YoY, indicating improving momentum in both lending and low-cost funding.
“Average deposits grew by 9.1% year-on-year and 1.6% sequentially, and average current and savings account deposits grew by 9.7% year-on-year and 2.7% sequentially in this quarter. Total deposits grew by 7.7% year-on-year and 0.3% sequentially at September 30, 2025. The bank’s average liquidity coverage ratio for the quarter was about 127%. The domestic loan portfolio grew by 10.6% year-on-year. The quarter-on-quarter growth in domestic loan portfolio was 3.3% at September 30, 2025 compared to 1.5% at June 30, 2025.”
– Sandeep Bakhshi (MD & CEO)
Business banking emerged as the fastest-growing segment at 24.8% YoY and 6.5% QoQ, while retail grew 6.6% YoY, indicating the bank’s diversified growth strategy across customer segments.
“The retail loan portfolio grew by 6.6% year-on-year and 2.6% sequentially including non-fund based outstanding. The retail portfolio was 42.9% of the total portfolio. The rural portfolio declined by 1% year-on-year and grew by 2.8% sequentially. The business banking portfolio grew by 24.8% year-on-year and 6.5% sequentially. The domestic corporate portfolio grew by 3.5% year-on-year and 1% sequentially. The overall loan portfolio including the international branches portfolio grew by 10% year-on-year and 3.2% sequentially at September 30, 2025.”
– Sandeep Bakhshi (MD & CEO)
Net NPA ratio improved to 0.39% from 0.42% YoY with total provisions at just 5.4% of core operating profit, while the bank maintains a substantial 131 billion rupee contingency buffer representing 0.9% of advances.
“The net NPA ratio was 0.39% at September 30, 2025 compared to 0.41% at June 30, 2025 and 0.42% at September 30, 2024. During the quarter, there were net additions of 13.86 billion rupees to gross NPA excluding write-offs and sales. The total provisions during the quarter were 9.14 billion rupees or 5.4% of core operating profit and 0.26% of average advances. The provisioning coverage ratio on non-performing loans was 75% at September 30, 2025. In addition, the bank continues to hold contingency provisions of 131 billion rupees or about 0.9% of total advances at September 30, 2025.”
– Sandeep Bakhshi (MD & CEO)
Cost of deposits fell sharply to 4.64% from 4.85% QoQ and 4.88% YoY, while 55% of domestic loans remain linked to external benchmarks, positioning the bank for potential margin expansion with further rate cuts.
“Of the total domestic loans, interest rates on about 55% of the loans are linked to the repo rate and other external benchmarks, 14% to MCLR and other older benchmarks and the remaining 31% of loans have fixed interest rates. The domestic NIM was 4.37% in this quarter compared to 4.40% in the previous quarter and 4.34% in Q2 of last year. The cost of deposits was 4.64% in this quarter compared to 4.85% in the previous quarter and 4.88% in Q2 of last year.”
– Anindya Banerjee (CFO)
Au Small Finance Bank | Mid Cap | Financial Services
AU Small Finance Bank Limited, an NBFC, operates in vehicle finance, MSME loans, and SME loans. It leverages its asset-based lending strengths and technology-driven branch operating model to offer diverse banking products like working capital facilities, gold loans, Kisan credit cards, and more to MSMEs and SMEs.
[Concall]
AU received RBI approval for universal bank transition (18-month timeline) amid system credit growth slowing to 10% from 16%, while AU’s deposits grew 21% YoY (2x system) and secured loan book grew 22% YoY.
“On August 7th, we received an in-principal approval from the Reserve Bank of India to become a universal bank with an 18 months transition time. This is a strong endorsement of AU’s business model, sound governance and commitment to financial inclusion. Domestically, the banking system credit growth has slowed to 10% versus 16% in FY24. However, the policy environment is turning more supportive with CRR cut, LCR changes, draft circular on reduction in RWAs and well staggered ECL implementation plan. These announcements supplement the earlier announced cuts in policy rates by RBI as well as income tax and GST cuts by the government. Our deposit book grew by 21% year-on-year which was nearly 2x of the system growth rate. Our loan portfolio excluding unsecured businesses grew by 22% year-on-year.”
– Gaurav Jain (Interim CFO)
Credit cost fell to Rs 481 crore (from Rs 533 crore in Q1) with 12% reduction in slippages across cards, mortgages and commercial banking, maintaining full-year guidance of 1% of average total assets.
“Credit cost declined to Rs 481 crore in Q2 versus Rs 533 crore in Q1, with this credit cost for first half was at 1.28% on an annualized basis. Lower credit cost was driven by 12% reduction in slippages during the quarter with lower slippages seen in cards, mortgages and commercial banking. We expect to see continued recovery in unsecured and seasonal recovery in secured assets in the second half and expect full year credit cost to be within our guidance of 1% of average total assets. To sum up, Q2 was a milestone quarter for us as we received an in-principal approval for universal bank license. Our margins have started to improve. Credit cost is on a declining trend and our unsecured portfolio is stabilizing.”
– Gaurav Jain (Interim CFO)
Credit card book (Rs 2,200 crore) down 31% YoY with Q2 marking first quarterly decline in provisions/slippages in a year, expecting normalized credit costs by FY-end with growth to resume in 1-2 quarters post new sourcing evaluation.
“Total credit card book is around Rs 2,200 crores which saw a degrowth of 31% year-on-year and 3% quarter-on-quarter. Credit cost has started to normalize with Q2 marking the first quarter of decline in provisions and slippages in credit card book in the last one year. We expect the book to start reflecting normalized credit costs by the end of this financial year. Incremental sourcing in credit cards is currently at a controlled pace and it will take one or two more quarters for the impact of this new sourcing strategy to reflect in the overall book. Post evaluating the new book, we will accelerate growth in this segment.”
– Gaurav Jain (Interim CFO)
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.
Discussing Jio’s technological capabilities and competitive positioning in 5G/6G development, emphasizing their indigenous technology stack working at global scale.
“We have our own proprietary 5G stack and fixed wireless stack that we have spoken about in the past, and which is now working at a significant scale, at global scale. We have 3,400 plus patent applications across 5G and 6G where we are among the thought leaders now across international forums.”
Highlighting global leadership position in wireless broadband with 9.5 million JioAirFiber homes, surpassing established US operators despite their earlier market entry.
“Out of these 23 million, nine and a half million are Jio Air Fiber homes using different technologies that we have spoken about, which makes us the world’s largest fixed broadband service provider, wireless fixed broadband service provider, bigger than Verizon and T-Mobile which have had a much earlier start.”
Discussing unexpected data consumption patterns in Tier 3/4/rural areas showing higher growth than urban, with Jio often being the only 5G provider in these regions.
“One of the interesting things that we are observing is the uptake in data consumption and traffic in the non-urban areas, basically Tier 3, Tier 4 rural areas. Pan-India 5G site traffic has grown 2x in the last year, but rural sites have shown higher growth. In many of these areas, we are really the only 5G service provider at this point in time.”
Response to questions about future tariff hikes, clarifying no immediate plans while continuing to encourage higher-value plan upgrades through nudges.
“At this point in time those will happen when they will happen. There are no current plans to change anything on it. We are nudging consumers to consume more and happily pay more but no immediate plans for the tariff.”
Explaining the structure and rationale for the new AI subsidiary as a 100% RIL entity focused on AI infrastructure, capabilities and product development.
“In Reliance Intelligence, we have created a company as a 100% subsidiary of RIL, which will utilize all of this, which will invest in developing AI capabilities, infrastructure, and then build solutions and products and take them to market through Jio or through the other ecosystem companies. The capex is going to be done here. The infrastructure is going to be built here.”
Clarifying the relationship between Jio and Reliance Intelligence, with Jio as the go-to-market platform while maintaining flexibility to work with other AI providers.
“Jio is the user of those capabilities which are going to be built. Jio would also work with Meta and would work with OpenAI and Google and Microsoft to use their products and services as well. So Jio will have an open slate to work with anybody that it wants to do, whereas Reliance Intelligence is competing with the Metas and the Googles for the AI products that are coming into the market.”
Detailing data center infrastructure plans including gigawatt-scale DC in Jamnagar and GCP region powered by 100% RIL green energy as unique offering.
“We have announced gigawatt scale DC in Jamnagar. We have already announced a GCP region, a cloud region in Jamnagar working with Google, which is going to be powered by 100% RIL green energy. It is going to be fairly unique in that sense to have access to so much of green energy in that one location.”
- Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm Limited
Explaining the strategic pivot in JioMart’s business model from scheduled deliveries to quick commerce, adapting to changing consumer behavior over past two years.
“JioMart in the initial avatar was about scheduled deliveries. Over the last couple of years, quick commerce has really picked up where people are looking for instant deliveries. We were a bit late compared to some of our peers in that, but we pivoted our model sometime last year. We have changed our model completely from next day delivery to 60 to 90 minute delivery to 30 minute delivery to now significantly lower than 30 minute delivery.”
Detailing JioMart’s competitive advantages including widest assortment, best pricing with no store-online price differentiation, and complete transparency with no hidden charges.
“My proposition is the strongest because I have the widest assortment. I have the best pricing. We do not differentiate between pricing in our stores and on JioMart. Thirdly, we do not have any hidden charges. We do not, what you see is what you get. You don’t get any charges when you are checking out which are not transparent in nature.”
Providing specific metrics on quick commerce reach across 5,000+ pin codes and 1,000+ cities, with massive customer acquisition growth of 120% QoQ.
“We are quickly scaling up our Quick Commerce offering, which is now available in 5000 plus pin codes across 1000 plus cities. We added close to 6 million new transacting customers during the quarter, which is up 120% on a quarter-on-quarter basis.”
Highlighting dramatic growth in hyper-local deliveries with 42% QoQ and 200% YoY growth in average daily orders, while expanding seller network.
“Our quick hyper-local deliveries continue to be in a strong trajectory with 42% growth on a quarter-on-quarter and 200% growth on a Y-O-Y basis in terms of average daily orders. To complement our 1P offering, we continue to add new sellers so that we provide the entire range to customers.”
Explaining infrastructure strategy with 600 operational dark stores focused on metro cities to reduce last-mile delivery radius, while majority of deliveries come from 3,000+ grocery stores.
“We have about 600 dark stores which are already operational. Dark stores are more in the bigger cities where there are big gaps in the network. In the bigger cities, you cannot because of traffic, you cannot go beyond one, one and a half, two kilometers for delivery. Majority of the deliveries are happening from the stores, dark stores are only where there are gaps in the network.”
Highlighting delivery performance improvement with promise of 30 minutes but actual average delivery time significantly lower, meeting competitive standards.
“Our promise is 30 minutes, and pretty much all the orders are getting delivered in meaningfully less than that. The average is much lower. Once we were very confident about our model that we are able to meet the delivery timelines of competition, we have gone out and communicated our proposition.”
Highlighting massive geographic advantage with presence in ~1,000 cities versus competition limited to top 10-20 cities, providing years of head start.
“Big advantage we have is if you look at the competition today is mainly in the top 10, 20 cities. We are present in almost a thousand cities. Competition will take many years to reach where we already have a head start there. What we have to do is take share away from competition in the bigger cities.”
Emphasizing unique multi-category quick commerce capability beyond grocery, including electronics grab-and-go assortment and fashion in top cities within 30 minutes.
“Other advantage that we have is we are not just a grocery quick commerce. In my big box electronic store, the entire grab and go assortment is available for delivery within a 30-minute timeline. Similarly, fashion. Nobody can do that kind of because of my store network that I have.”
Highlighting localization advantage with existing understanding of regional preferences from physical stores, providing superior merchandising compared to competitors.
“Nobody has the kind of network that we have in order to deliver this proposition to the customers, both in terms of network, the scale, the understanding of what sells in each geography. Because grocery, a significant part of the assortment is localized. We already know what sells in that region because that is what we merchandise in our stores.”
Highlighting strategic focus on ethnic wear for festive period and complete look offerings beyond just apparel to improve average bill value.
“We are also kind of focusing on the ethnic wear category for the festive period. Also focusing on giving customers a complete look, because customers, when they come to a store, are looking for everything, not just apparel. In addition to apparel, footwear, beauty, accessories, imitation jewelry, those are all categories we are enhancing our offering.”
Providing Shein India relaunch metrics with 6 million app downloads, 11 million+ monthly active users, and portfolio expansion to 25,000+ options.
“Shein, which we launched a couple of quarters back commercially, we have crossed 6 million app downloads. Monthly active users are upwards of 11 million. We are now also starting to invest behind educating the customers about the relaunch of Shein, because now we have a significantly large portfolio of almost 25,000 plus options.”
Explaining impact of gold price surge on jewelry business with volumes down but ASPs up, and increased exchange from 22% to 33% as customers recycle.
“On the jewels business gold prices have gone up significantly over the last quarter. Now what has happened across the industry is that volumes have gone down because the purchasing power has been impacted. Instead of investing more in new gold, the share of exchange has gone up substantially. It used to be about 22% earlier last year, which has now gone up to almost 33%.”
Discussing strong LFL growth with temporary impact from GST rate announcement creating purchase deferrals, followed by strong pent-up demand post-implementation.
“Electronic business again had a very, very strong quarter with very, very strong LFL growth. There was some impact in the time period between the announcement of the GST rate reduction on select categories and the actual GST rates came into effect on September 22, 2025. During that interim period, people deferred their purchases. But after that, the pent-up demand picked up pretty well.”
Highlighting 2x growth YoY for H1 with Q2 revenue at ₹5,400 crores, with Campa and Independence brands seeing strong market share gains and volume growth.
“Quick on our FMCG business. 2x growth on a Y-O-Y basis for H1, Q2 was Rs.5400 Crores of top line. All our brands, the main brands are Campa and Independence. Both are seeing very strong market share gains. And as we are expanding the supply chain, the volume growth is pretty substantial.”
Discussing FMCG expansion with food parks MOUs across the country and Velvette brand acquisition for personal care portfolio expansion.
“We have signed up several MOUs for food parks and looking up setting up manufacturing facilities across the length and breadth of the country. We have also acquired the brand called Velvette, which is a pretty old heritage personal care brand. This will drive our growth in the personal care portfolio.”
Explaining the unified approach to capturing customer wallet share regardless of channel, neither purely offline nor online focused.
“Ultimately look at it this way, our objective is to maximize wallet share with the customer. I am neither an offline player, nor an online player, we look at the am I capturing enough wallet share of the customer, whether he buys online or offline, that is something that does not concern us.”
-Dinesh Taluja, CFO & Corporate Development, Reliance Retail
Discussing post-IPL audience retention challenge and success in maintaining 400 million MAUs by converting cricket viewers to entertainment content consumers.
“The last time I presented to you all was just after the IPL. With the IPL came an influx of a huge number of audiences. Our biggest challenge at that point of time is, how do we convert these audiences to remain on the platform and watch our entertainment content? We managed to have 400 million monthly active users on this platform.”
Explaining record EBITDA performance with industry-leading 28.1% margins despite challenging microenvironment, representing gold standard in media world.
“On the financial front we have had a record EBITDA performance with industry-leading margins in a challenging microenvironment. If you look at our EBITDA margins 28.1% which is really gold standard within the media world. Our revenue of Rs.6179 Crores, and EBITDA, which has grown quarter from 1000 to 1738.”
-Kevin Vaz, CEO – Entertainment, JioStar
Explaining crude price support around $69/bbl due to OPEC+ unwinding 2.2 million bpd cuts, offset by geopolitical concerns preventing further slippage.
“Quarter to quarter, if you look at year on year basis, second quarter was of 2025 versus second quarter of financial year 2026 from $80, it has fallen to $69. The reason for the fall was OPEC Plus has been unwinding their cuts. More than 2.2 million barrels of OPEC cuts have come back into the market. What has been holding it up from any further slippage is geopolitics and concerns over whether there could be any disruption.”
Analyzing fuel crack strength due to Ukraine attacks on Russian refineries, concerns about product supply disruptions leading to increased global refinery runs.
“On the refining side because of the drone attacks happening between Russia and Ukraine, the oil infrastructure is getting affected seriously. The market perceives that there could be a risk to product supply and what we have seen is everyone has increased the refinery runs. Any small outages tend to magnify the impact.”
- Sanjay Barman Roy, President – E&P
Highlighting positive GST rationalization impact already visible in demand, especially for polyester products with rate reductions from 12%/18% to 5%.
“GST rationalization has really helped a lot in boosting demand. We are already seeing it in some of the products. In polyester-end products where the GST rate has been brought down for staple 12% to 5% and for filament yarn from 18% to 5%, that is likely to give a big boost.”
-Amit Chaturvedi, President – Petrochemicals
Emphasizing creation of world’s only end-to-end integrated manufacturing ecosystem for both solar PV and batteries, unique globally in scale and scope.
“We are building up what I believe is the world’s only end-to-end integrated manufacturing ecosystem. We are building the complete value chain, starting with the solar modules, solar cells, wafers, polysilicon and ingot factories. So, this is building the complete value chain including glass for the PV modules.”
Highlighting Jamnagar new energy complex as world’s largest with complete ecosystem for PV modules down to polysilicon and complete battery ecosystem in one location.
“We are building what will be the world’s largest new energy complex. Nowhere in the world do we have the complete ecosystem for PV modules all the way down to polysilicon. Nowhere are you going to have the complete battery ecosystem in one location and this is at the new energy complex in Jamnagar.”
Highlighting India’s first polysilicon factory using CVD process from metallic grade silicon, representing extremely high technology process for backward integration.
“This is probably going to be India’s first polysilicon factory where we actually will be producing polysilicon from metallic grade silicon, and this is using CVD process. It is extremely high technology process that we are using to produce polysilicon. This polysilicon would get converted into ingots and wafers.”
Discussing glass gigafactory as by far the largest in India, progressing well according to plans to supply PV modules.
“This is a bird’s eye view of our glass gigafactory. This is by far the largest glass factory in the country, and it is also progressing very well according to our plans, and this glass will be supplied for our PV modules.”
Announcing rapid progress on battery gigafactory with target to start first factory early next year, completing 40 GWh capacity at Jamnagar.
“Happy to share that we are starting to make rapid progress on the ground. We are currently on track to complete 40 gigawatt hours of battery energy storage gigafactory at Jamnagar. We are looking to start this factory, which would be our first factory in the battery gigafactory complex early next year.”
Confirming all equipment secured for first phase of cell manufacturing despite new Chinese export restrictions, with global sourcing strategy in place.
“The battery cell factories are also progressing well. We have started the construction of the cell factories as well as we have secured all the equipment for our first phase of cell manufacturing. Our cell equipment sourcing is happening across the globe, and we are monitoring the impact of the new regulations but for the most part, we have secured the equipment.”
Clarifying initial focus on internal demand including 17-18 GW for operations plus gigawatt data center, before external C&I customers marketing.
“The focus initially is to deploy our own power plants, RE-RTC power plants in Kutch which will first supply all our internal demand, including we are setting up a gigawatt data center. So that would also be one of the consumer for this RE-RTC power. For the first few years, for sure, it will be internal consumption.”
-Sriram Ramakrishnan, President – Battery and Energy Systems
Highlighting balance sheet strength with net debt broadly flat and CAPEX of ~₹40,000 crores almost in line with cash profits.
“When you look at the balance sheet, net debt is broadly flat. The CAPEX that we spent at about close to 40,000 Crores, almost in line with our cash profits. So overall, a strong performance and continuing strength in the balance sheet.”
-V. Srikanth, CFO, Reliance Industries Limited
JSW Energy | Mid Cap | Energy
JSW Energy is a diversified power generation company, operating thermal, hydro, and renewable energy assets. It focuses on integrating renewable sources, offering dispatchable energy solutions, and expanding across the energy value chain, including transmission, trading, mining, energy storage, and green hydrogen.
[Concall]
India added 48 GW capacity in 12 months (33 GW renewables), with 35 GW thermal under construction expected to push total thermal capacity to 300 GW by FY32, and 11.6 GW thermal bids awarded in H1 FY26.
“Over the past 12 months, 48 gawatt has been added with 33 gawatt in renewable, 16 gawatt commissioned in H1 and quarter 2 respectively. Renewable energy continues to lead this expansion during H1, contributing 25 gawatt during the half year, 22 GW from solar and 3 GW from wind. For thermal, the capacity, the current installed capacity is 245 gawatt. Considering the current bidding of 12 to 15 gawatt of projects awarded in FY25 and approximately 35 gawatt of installed capacity under construction, all these capacities shall be commissioned in next 5 to 7 years. With this India’s total thermal capacity in FY32 should reach close to 300 gawatt. We have witnessed thermal bids from various states totaling to 11.6 gawatt this half year.”
– Sharad Mahendra (Joint MD & CEO)
GST rationalization reduces renewable capex and thermal fuel costs (Rs 400/ton cess removal on domestic coal), improving discom finances and sector economics, with positive regulatory changes expected in RCO framework and Electricity Act amendments.
“On the macro environment, the recent GST rationalization has been a welcome reform for renewables. It lowers capital cost and will translate into more competitive tariffs. For thermal power plants using domestic coal, the removal of rupees 400 per ton of compensation cess and the streamlined GST structure will reduce fuel cost and improve overall generation economics. These changes will strengthen the financial health of discoms and support long-term sector sustainability. From a regulatory standpoint, there are some anticipated changes from recent renewable consumption obligations framework and new draft amendments of the electricity act which are sector positives.”
– Sharad Mahendra (Joint MD & CEO)
JSW commissioning 5 GWh/year BESS assembly plant in Q3 FY26 for captive use and third-party sales, anticipating domestic content mandates for storage similar to solar ALM requirements as Make-in-India focus extends to BESS sector.
“We are in the process of establishing a battery assembly plant in Pune with a rated capacity of 5 gawatt hour per annum. This facility dedicated to supporting battery energy storage systems is expected to be operational in the current quarter that is quarter 3 of FY26. It will also enable us to meet domestic content requirements for BESS as and when they are mandated by government of India. The way MNRE has been focusing in terms of ALM for solar modules and then cells also which is in discussion and also for wind also which is there, so ultimately there is a focus for making in India even in this area. So we feel that there will be opportunities even to cater to the requirements of outside also. So we’ll be open to both for our captive and also if there is any requirement we can cater to the outside requirements.”
– Sharad Mahendra (Joint MD & CEO)
Media & Entertainment
Tips Industries Limited | Small Cap | Media & Entertainment
Tips Industries Limited is a Company limited by shares, incorporated and domiciled in India. The Company was incorporated on May 8, 1996 under Chapter IX of the Companies Act, 1956. The Company is engaged in the business of Production and Distribution of motion Pictures and acquisition and exploitation Music of Rights. The Equity Shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited.
Explaining the temporary nature of current industry pressures from OTT platforms moving to paid walls and subscription model transition expected to benefit long-term despite near-term challenges.
“There is overall pressure because in last 1, 1.5 years, many people have shut down their businesses or they have gone behind the paid 100%. That pressure is there. But I feel this is a temporary phase. Subscription is growing, so I feel the subscription will give us a big boost. We will make more money in coming months. Maybe 6 months to another 1 year, it will take.”
Explaining disciplined content acquisition strategy targeting 23-25% of revenue for content investment, focusing on quality over quantity with emphasis on 4-5 year payback period.
“Overall, we feel this year 23% or 25%, we will invest in content. We are not getting content at the right price. If we take content with INR10 crores and only INR1 crores, INR1.5 crores first year recovery, money will not come out and for the money to come out it takes around 15 years. So there is no benefit and sometimes it will not work. Success ratio for new releases was hardly 10% to 12%. Our target is that in next 4 years, 5 years our money should come back.”
Clarifying strategic rationale for avoiding bidding wars while maintaining significant acquisition capacity, prioritizing selective quality content over aggressive volume growth.
“There is a producer, he called me about his film and composer. So I said, I can give you INR3 crores to INR5 crores. He said, I already have an offer of INR14.5 crores and INR2.5 crores promotion, INR17 crores total. I said, immediately run and give it to them. It is good that if we finish our competition early, then we will get an opportunity to buy the material.”
Explaining pressure from OTT platforms like Spotify and JioSaavn pushing users to paid subscriptions by limiting free streaming, troubling users with ads and restrictions on favorite songs.
“Even these ads on the platforms like Spotify or JioSaavn, they are not allowing free stream. They are pushing for promotion or if you want to listen music free, they will push you first for ads and trouble you. They will not allow you to listen your favorite songs again and again, they are pushing all people to go for a paid wall. So that’s really hurting business. Maybe we will have difficulty for a few quarters. But long term, it is beneficial.”
Drawing historical parallel to CRBT business which generated INR8,000 crores from just 30-second content subscriptions, demonstrating India’s willingness to pay for music and long-term subscription potential.
“In 2006-07, there was a service called CRBT. The telecom companies was making money from subscription and downloading of content. That’s only 30-second content for others to hear. And those mobile companies used to make INR8,000 crores. So we have many people who can subscribe, who can pay money. It’s a temporary trouble. It will take 3 quarters or 7 quarters, but will come through from this.”
– Kumar Taurani, Chairman and Managing Director
Clarifying that short-format content platforms currently operate on lump-sum deals rather than revenue sharing, though seeing significant revenue jumps due to strong catalog performance.
“Short format is still not sharing the revenue. It’s lump-sum kind of a deal. But we see quite a bigger jump in the revenues because our content is really doing very well on short content. Last 4, 5 years, whatever growth we are seeing, it is because of that also. And even this year, our catalog is doing really well.”
Explaining short-form revenue sharing evolution similar to YouTube’s progression from fixed deals to ad revenue or fixed fee (whichever higher), expecting similar transition for Instagram Reels and other platforms over time.
“The deals are right now all fixed deals not based on advertisement, and it will change over a period of time, like how it did with YouTube. Initially, YouTube was fixed deals, then it moved on to ad revenues or fixed fee, whichever is higher. So the short format video apps also will move in that direction. It will take some time for that.”
Addressing YouTube Shorts fixed deal expiring in June 2026, expressing intention to negotiate revenue-sharing model renewal while noting main YouTube remains ad-sharing and is stable and growing.
“YouTube Shorts again, is a fixed fee deal, but the larger YouTube is an ad sharing deal, and it is stable and it is growing. So what we see in the first week of October, it has just picked up. So I’m very positive about the growth from YouTube also. The YouTube Shorts deal will come to an end in June. We will definitely try and our vision is that we should have a sharing basis.”
-Hari Nair, Chief Executive Officer
Discussing Spotify’s first India price increase impact, explaining Tips receives 55% revenue share so any price increase directly benefits them proportionally.
“Yearly phenomenon is difficult to say, that Spotify people will tell. If they think that the growth is very good, their total industry target is 10 crores to bring in paid wall. As far as our revenue is concerned, it’s a percentage. They give us 55% and if it gets 20% then that also is 55% all levels will get. So absolutely safe and sorted.”
Comparing India pricing to global markets where Spotify charges GBP10, USD10, AUD10, SGD10 with 90% subscription penetration, demonstrating significant pricing headroom in India.
“It increases a lot globally. If you go to London, there are GBP10, $10 in the US, AUS$10 in Australia, SGD10 in Singapore. So, it’s very expensive. And how many people do I meet? 90% of the people are in subscription. Spotify has experience of 150-250 countries doing business for 10-15 years. They know how to lower the market, how to raise it, how to give it free, how to get the customer to paid.”
Explaining Spotify’s strategic shift from first 5 years of customer acquisition to next 5 years focus on monetization extraction, controlling free consumption despite 15 billion monthly streams capability.
“Last year at Spotify event, they said in the first 5 years, we got the customer used to Spotify. Today in the next 5 years, our emphasis will be on taking money out of the customer’s pocket. They have 15 billion streams per month. If they let everyone listen, they can do 25 billion today. And if they distribute money according to 25 billion, growth will be 40% immediately. They are controlling free consumption.”
- Kumar Taurani, Chairman and Managing Director
Explaining strategic rationale for devotional content acquisition which has longer monetization period and better stickiness than regular content, providing consistent YouTube/Spotify revenues.
“If you see the devotional content also has a lot of monetization, a longer monetization and a better monetization than the normal one. So it is very sticky, and it just keeps on giving revenues on YouTube or Spotify, any platform you take.”
– Hari Nair, Chief Executive Officer
Providing industry-level paid subscription contribution estimate at approximately 10% of total revenue, unable to provide specific Tips platform-wise breakdown for competitive reasons.
“On an industry basis, around 10% would be paid subscription. We can’t give platform-wise details because it’s a competition world. We can’t give you details. So, please bear with us.”
– Sushant Dalmia, Chief Financial Officer
Outlining ambitious long-term industry growth vision to INR10,000-15,000 crores from three drivers: subscription growth, short content revenue sharing (Instagram Reels, TikTok return, YouTube Shorts), and public performance expansion from INR350 to INR2,000 crores.
“I feel the industry can grow to INR10,000 crores to INR12,000 crores in next five years. Three major things: subscription, short content where Instagram Reels, TikTok will come back, YouTube Shorts will do profit sharing and start advertiser model. Third, public performance is now INR350 crores, can easily become INR2,000 crores business. Industry can be INR15,000 crores also.”
Projecting Tips can achieve INR7,000-8,000 crores revenue with 7-8% market share in INR15,000 crore industry, emphasizing India consumption matches US but represents only 2% of revenue, highlighting massive monetization upside.
“If we have around 7%, 8% share, you can estimate what can be our business, we can achieve easily INR7,000 crores, INR8,000 crores, not a big deal. If you look at our industry international comparison, consumption wise, we are equal to the US. But money wise, we are only 2%. If we are 10%, think what will happen. I will advise shareholders, please treat us as long-term partner with vision on it.”
– Kumar Taurani, Chairman and Managing Director
Chemicals
Rallis India | Small Cap | Chemicals
Rallis India Limited, a subsidiary of Tata Chemicals Limited, is part of Tata Group, operating in Agri-Sciences. The company provides farmers with innovative agricultural products, focusing on enhancing farm yield, soil health, and farmers’ income. It offers a wide range of crop protection, crop nutrition, and pesticide solutions domestically, while internationally engages in technical grade pesticides, formulations, and contract manufacturing.
Revenue declined 7% YoY to INR861 crores in Q2, with abnormal rainfall in key agrochemical-consuming states like Punjab, Maharashtra, UP and Rajasthan causing significant crop losses and delayed harvesting.
“Abnormal and uneven rainfall distribution in Q2 has led to significant crop losses in pre-agronomic consuming states. Heavy rain plus floods, water logging and submergence of large farmland areas severely affected crops like soybean, maize, cotton and pulses.”
Export revenue grew 33% in Q2 and over 30% in H1 FY’26, driven by volume growth and expansion into new markets like France, Malaysia, and Spain.
“Our export business has displayed encouraging performance with a focus on maximizing volume, driving capacity utilization for our plants and expanding customer base. Metribuzin and Hexaconazole showed good momentum, Pendimethalin is also on good track with long-term demand remaining steady.”
With U.S. tariffs up to 60% on Chinese agrochemical imports affecting competition, Rallis’ technical products remain largely exempted from these tariffs.
“U.S. is our primary business. Now U.S. has tariff challenges, but fortunately for us, 85% of our business is technical supply that is not impacted by tariffs as of now. Only 15% of export business is impacted by tariff because it is formulation based.”
Eight new products launched in FY’25 (including herbicides ‘Deeweed’ and fungicide ‘Dodrio’) have shown strong traction with volumes more than doubling on YTD basis.
“These products were introduced towards quarter 4 of last year as a test launch. And we have more than doubled their volume as we speak on a YTD basis. So it looks like good traction and good momentum in the market.”
– Dr. Gyanendra Shukla, Managing Director & CEO
Q2 FY’26 marked a historic milestone with total collections crossing INR2,000 crores for the first time, with real estate contributing 90.2% of total collections.
“During the quarter from all businesses, we collected a total of INR2,046 crores. We crossed the INR2,000 crores quarterly collection milestone for the first time, thereby recording highest historic high. For H1, we collected INR3,824 crores, recording a healthy 30.9% growth over H1 ‘25.”
— Bhaskar Swaminathan, Chief Financial Officer
Extended kharif season spillover to October and residual moisture from excessive rains are expected to support better rabi prospects, though fertilizer shortages pose near-term challenges.
“There could be some spillover of kharif season 10%, 15% to October because there could be extended rabi season for some crops. Normally, residual moisture leads to better rabi crop if this situation continues. So I’m expecting rabi prospects look slightly better at this point of time.“
While 70-80% of Rallis’ cotton business comes from Northern India (protected from illegal seeds), South and Central face challenges from illegal HTBt cotton varieties.
“Our cotton dependency is very high on Northern India. Fortunately, illegal cotton has not made inroads into that. To that extent, we have secured because 70%, 80% of the business still comes from North. But if illegal HTBt turns out successful as it was this year, it does create challenges for companies operating primarily in South and Central part of India.“
– Dr. Gyanendra Shukla, Managing Director & CEO
The company has narrowed seed focus to five key crops (cotton, maize, millet, mustard, rice) to drive scale and profitability, with limited challenges expected in mustard and bajra.
“Our focus is primarily on 5 key crops: cotton, maize, millet, mustard and rice for our seed segment. We believe the focus on such selective crops will aid in driving scale. We aim to gradually build our presence across these 5 crops with a focus on profitability.”
– Bhaskar Swaminathan, Chief Financial Officer
Based on early industry data and channel feedback showing 10-15% volume declines in affected regions, full-year industry growth is expected to be modest.
“Based on what I hear, industry is not likely to grow beyond low to mid-single digit. Companies could be in that range. And the companies with seed in the portfolio, they get some cushion because seed business has done overall well.”
— Dr. Gyanendra Shukla, Managing Director & CEO
Manorama Industries | Small Cap | Chemicals
The company signed an MoU with the Government of Burkina Faso for setting up a processing extraction facility to secure raw material supply of Shea Nuts.
“We have established subsidiaries in West Africa to streamline and strengthen the procurement of our raw materials like Shea Nuts, which are a key raw material for our operation. We have signed a MoU with the government of Burkina Faso for setting up a processing facility in the country. This will enhance local value addition and improve supply chain efficiency.”
The company entered Brazil through an agreement with DEKEL to utilize their processing facilities, enabling quick market entry without immediate capex.
“In Latin America, we have entered into an agreement with DEKEL in Brazil to utilize their processing facilities for manufacturing of specialty fats intended for that regional market. This will allow us to scale up very quickly without immediate CAPEX and address local demand more efficiently.”
Working capital days improved dramatically from 151 days to 97 days, with management targeting further reduction to 75 days over next 2 years.
“From 151 days, we have come to 97 days now and we target to 75 kind of days for our working capital cycle given the model of the business. We are trying to maximize our working capital cycles as well as the inventory management. So, we see in going forward better working capital management.”
— Ekta Soni, AVP - Investor Relations & Ashok Jain, CFO
Despite cocoa butter prices falling 25% from highs to below EUR 10,000/ton, CBE prices remained stable at $5,500-6,000/ton due to functional differentiation.
“The functional properties and the structural properties of cocoa butter equivalents are very different. This is why customers want it because it provides stability, good texture, good finishing lines to the confectionery and chocolate. So, we see our demand and prices of our products very sustainable, in not relation to cocoa butter.”
— Ekta Soni, AVP - Investor Relations
The company secures contracts for 9-12 months with fixed pricing, insulating revenue from short-term cocoa price fluctuations.
“Our contracts are usually for 9-12 months, and we are very firm with our contracts and order books and we do not see any price drift in our cocoa butter equivalent, Stearin or any of our specialty fats and butter products. We do not see any price drift for our products for the next 2 quarters coming up.”
— Ekta Soni, AVP - Investor Relations
Top customers include global chocolate giants Mondelez, Nestle, Hershey’s and Ferrero, with top 10 customers contributing 40% of revenue, indicating diversification.
“The top 3 customers include Mondelez, Ferrero, Nestle, Hershey’s. These are our top customers. We can share the figures for top 10 customers, which is around 40%. And top three customers are Mondelez, Nestle and Hershey’s.”
— Ashok Jain, CFO & Ekta Soni, AVP - Investor Relations
The company maintains a balanced revenue mix with 58% export and 42% domestic, with US exposure minimal at only 2-3% (insulated from Trump tariffs).
“58% was the export contribution and 42% is the domestic. Our export sales to US are around 2%-3%. It has no real impact on our topline and bottomline. This has been historically only 2%-3% export sales to US.”
— Ekta Soni, AVP - Investor Relations
Management highlighted unique competitive advantages from waste-to-wealth sourcing model, technology, customer approvals, and scale as entry barriers.
“There are very few companies who are into manufacturing of cocoa butter equivalents because what we are producing is from wastage seeds like Sal seeds, Mango Kernel, or Shea Nut. To procure these seeds, to have sustainable supply chain network to deal with millions of tribal people including women, having thousands of collection centers, and to get product approval with top giant MNCs, this could be the entry barrier for any newcomer to build the foundation.”
— Ekta Soni, AVP - Investor Relations
Management highlighted exponential growth in CBE demand globally, particularly in emerging markets like India and Brazil, driven by functional benefits.
“The demand for this cocoa butter equivalent has been growing very fast over the years. The importance of these fats is more on the manufacturing and producing of chocolate and confectionery rather than the prices fluctuations. It provides better texture, taste and stability. There is sustainable pricing for our cocoa butter equivalent, and demand is growing exponentially including countries like India and Brazil.”
— Ekta Soni, AVP - Investor Relations
The company positioned itself as the largest and leading global supplier of specialty fats and butters, particularly from Sal and Mango Kernel sources.
“We are not seeing anybody at this scale. We say we are the largest and leading supplier of this fats and butters to the world. And being Sal and Mango, then we are the largest and leading supplier in the world. Globally, there are very few companies who are into this kinds of niche specialty fats and butters business.”
— Ekta Soni, AVP - Investor Relations
Consumer Durables
Dixon Technologies | Mid Cap | Consumer Durables
Dixon Technologies (India) is a leading electronics manufacturer specializing in consumer electronics, home appliances, lighting, mobile phones, wearables, refrigerators, and telecom/IT hardware. The company provides end-to-end solutions to OEMs, including global sourcing, manufacturing, quality testing, packaging, and logistics, making it a comprehensive partner in electronics innovation and production.
[Concall]
Explaining why Q2 revenue growth was only 29% YoY despite strong underlying demand, particularly affecting TVs, refrigerators, and washing machines.
“The announcement of the reduction in GST rates in mid‑August led to a significant postponement of purchases across trade and consumer channels from mid‑August until September 21. Most customers and retailers deferred buying decisions in anticipation of lower post‑cut prices. Although demand began to normalize after the new GST rates came into effect on September 22, the short window of nine days before the quarter-end was insufficient to fully recover the deferred volumes.”
– Atul Lal (MD & VC)
Outlining strategic investments in component manufacturing to deepen value addition and reduce import dependency.
“We have filed Component PLI (Design‑Led) applications for display modules, camera module enclosures, lithium‑ion batteries, optical transceivers/SFPs, and mechanical enclosures, with investment commitments of approximately ₹3,000 crore over the next three years. This will be the next phase of growth and should also lead to margin expansion.”
Articulating the strategic rationale for component manufacturing as a high-ROCE business despite lower asset turnover compared to assembly.
“Components are the next critical focus: displays, camera modules, mechanicals, SSD/memory/power supplies, etc. Unit economics are attractive with higher operating margins; despite lower asset turns, ROCE remains high. Component play will serve captive mobile/IT hardware and open automotive opportunities, where our JV partners already have strong global relationships (including India).”
Reaffirming market leadership and outlining volume trajectory despite being at 40-42 million units for FY26.
“Dixon remains the largest domestic manufacturer of mobile phones, with high‑volume capabilities and best‑in‑class infrastructure. We expect ~40–42 million units this year. With progress on our partnership with Vivo, we expect a major push next year, targeting 55–60 million units.”
Revealing a new ODM partnership beyond existing Longcheer relationship, adding incremental volumes from Q4 FY26.
“We’re in discussions with a large global ODM for smartphones. We expect production to start by end‑Q4 of this fiscal or early Q1 of next fiscal. Expected volumes are around half a million units per month.”
Addressing concerns about market share saturation at 55-60% of India’s outsourced smartphone market, outlining path beyond domestic growth.
“In mobiles, there’s still room to increase share of wallet with existing customers and acquire a couple of new ones. We’re pursuing export opportunities with Transsion; that can be significant. Beyond 65–75 million, a significant portion can be for exports.”
Identifying telecom as the second-largest growth driver after mobiles, with breakthrough in complex radio access network (RAN) equipment for global markets.
“We grew from ~₹700 crore to almost ₹4,800 crore this year in telecom. We have secured an order with a US‑based company in radios. Initially, this new category should be around US$150 million. Overall, we feel the segment can be close to US$1 billion in a couple of years.”
Demonstrating capability upgrade from CPE devices to enterprise-grade telecom infrastructure equipment, with export potential.
“We have secured a significant order from a leading US telecom customer to manufacture telecom backhaul microwave radios—an integral part of the radio access network (RAN). These are highly complex, advanced network equipment. Production will cater not only to the Indian market but also to global demand from Q4 of this fiscal.”
Explaining the strategic evolution from consumer CPE to enterprise network infrastructure, representing a capability leap.
“Thus far, we have focused largely on CPE products—Wi‑Fi routers, fixed wireless access (FWA) equipment (a major growth area), and IPTV/hybrid set‑top boxes. We have acquired scale and operational efficiency and built strong global partnerships. Our aspiration was to get into network equipment, which is more complex.”
Outlining aggressive growth trajectory in laptops/notebooks/servers with mass production stabilized for HP, ASUS, and Acer.
“This year we’re targeting ₹1,200–1,300 crore in IT hardware. Over the next two years, we see IT hardware at ₹4,000–₹5,000 crore. The JV with Inventec will go live by Q2 next fiscal.”
Highlighting partnership with global top-5 ODM and scope expansion into servers and components.
“We finalized our manufacturing location for the 60:40 JV with Inventec Corporation (Taiwan), one of the world’s top five IT product ODMs, to manufacture notebook PCs, servers, desktops, and components (SSDs, memory, mechanicals) in India. It is expected to be operational by Q1 next fiscal and should positively impact margins.”
Explaining strategy to overcome India’s ITA-related duty disadvantage through backward integration and make IT hardware export-competitive.
“We plan to bridge this [4-5% duty disability] via component integration—display, mechanicals, power supplies, SSDs, memory—over the next 7–8 months. If we achieve parity with China, the global market opens up. Of the ~$102 billion production value, Dixon could target $1.5–2 billion.”
Providing realistic assessment of IT hardware export potential, drawing parallels to mobile manufacturing evolution.
“India’s IT‑product market is ~12–13 million units. India is a signatory to ITA; the government can’t create duty arbitrage. The IT‑hardware PLI exists, but there’s a 4–5% disability versus 0‑duty imports. It will be a journey—mobiles took 4–5 years to become an export hub; IT hardware could follow a similar trajectory.”
Explaining double impact on refrigerator sales from both GST changes and regulatory transitions.
“Another reason for subdued growth [in refrigerators] was the introduction of new and more stringent energy‑efficiency norms in India, leading to deferrals until the enforcement deadline.“
Highlighting near-term export traction with major US and German retail chains for lighting products.
“We executed the first pilot order from one of the top retail chains in the US in early October and aim to scale this opportunity in coming quarters. Another pilot order from the largest retail chain in Germany is expected to be fortified this quarter.”
Drawing parallel to Signify’s successful China manufacturing experience as precedent for India export potential.
“We are also excited about the Signify JV in lighting, which moves us into more premium categories and potentially opens global markets, similar to our partner’s China experience.”
Acknowledging potential margin headwinds if Mobile PLI expires on March 31, 2026, before backward integration benefits fully materialize.
“There could be some pressure for a couple of quarters [in FY27] until display and camera module integration fully ramps. Camera modules are already running; display becomes operational by March–April. So yes, there could be short‑term pressure in FY27.”
Revealing battery manufacturing plans primarily for captive mobile consumption, with Transsion taking operational lead.
“We are looking at lithium‑ion battery products mainly focused on mobiles, given our large captive base. We are in advanced discussions with a technology partner; project plans are being finalized. We have submitted our PLI application for cell/component manufacturing. In this case, the lead will be taken by our JV partner, Transsion/Itel.”
Providing long-term revenue target and margin expansion outlook driven by component integration and operational leverage.
“We feel confident about the revenue aspiration [₹1 lakh crore in 3-4 years]. With more backward integration, operating leverage, and some OEM/ODM mix improvement—especially in refrigerators—EBITDA margins could move up by ~70–80 bps from current levels; a range around ~4.0–4.5% seems reasonable on that scale.”
Tempering expectations for sustained 100%+ growth rates as revenue base has expanded significantly.
“On a large base, triple‑digit growth isn’t sustainable. The base is much larger now, but growth remains aggressive. The GST timing distortion also affected Q2.”
Addressing data center/server opportunity cautiously, indicating it’s under discussion with Inventec JV but no concrete plans yet
“It’s early, but we expect to leverage our relationship with Inventec. Too early to quantify; this is part of ongoing discussions and agreements with the partner.”
– Atul Lal (MD & VC)
Software Services
Tata Technologies | Small Cap | Software Services
Tata Technologies Limited is a global engineering services company providing product development and digital solutions to OEMs and tier 1 suppliers. It specializes in the automotive industry and extends its expertise to aerospace, transportation, and construction heavy machinery. The company focuses on creating value for clients by developing innovative and sustainable products, leveraging diverse global teams and skill sets to solve complex engineering challenges.
Aerospace and industrial heavy machinery are emerging as growth drivers, showing double-digit sequential growth.
“We continue to see strong performance in aerospace, which alongside the industrial heavy machinery vertical, delivered 14% revenue growth in US dollar terms. This was driven by sustained demand and consistent execution across MRO, PLM, manufacturing engineering, and digital transformation engagements.”
-Warren Harris, CEO
ES-TEC acquisition is strategically significant for expanding European presence and accessing Volkswagen, the world’s leading automotive R&D spender.
“This acquisition provides direct access to Volkswagen as a key customer, strengthens our leadership position in Germany, and adds deep expertise at the top end of the systems engineering automotive V-cycle. With a team of over 300 highly skilled engineers, ES-TEC brings advanced capabilities in ADAS, Connected Driving, and Embedded Software.”
These wins demonstrate expanding customer base and deeper engagement, particularly the first direct German OEM deal.
“We closed three large deals during the quarter: One with a Tier 1 automotive supplier for harmonizing product data across acquisitions; the second for development of a heads-up display unit for a Scandinavian OEM; and third, our first direct deal with a German OEM focused on traditional body engineering services for all future vehicle programs.”
– Warren Harris, CEO
JLR’s IT restoration (following a cyberattack) may create temporary headwinds in Q3, though Q4 is expected to rebound strongly.
“While Q2 performance was solid, we anticipate some moderation in Q3, followed by a sharp recovery in the fourth quarter. As you may have read in the press, JLR’s IT systems are in the process of being carefully restored, and we are at the moment grappling with the implications of that.”
After initial tariff-related uncertainty in Q1, customers are now proceeding with investments as the tariff environment stabilizes.
“What we anticipated in Q1, it started to play out in Q2 because the uncertainty that was there after the tariff announcement is starting to clear and most of our customers are now getting aligned with the new normal in terms of the tariff environment specifically. So, many of those investment decisions that we were looking to intersect with at the beginning of the fiscal year have now come through in Q2.”
The BMW joint venture has scaled to 1,000+ employees ahead of schedule and is handling increasingly complex, high-value work.
“Both in quantitative terms and qualitative terms, the JV continues to exceed the expectations of both Tata Technologies and BMW. We have exceeded the headcount targets through the teams in Pune, Bangalore, and Chennai. The feedback from BMW and the teams in Munich specifically is that they are very pleased with the work being undertaken.”
Management: Warren Harris, CEO Management sees significant long-term opportunity in aerospace, particularly leveraging India’s and Tata Group’s growing role in the sector, including defense and manufacturing.
“We are confident because of the growth projected for aerospace. But we are also confident because India specifically and the Tata Group will play a very big part in the aerospace industry in the future. And we intend to take full advantage of the opportunity that that represents.“
Demonstrates capability in cutting-edge connected car technologies for domestic OEMs.
“We successfully introduced the Digital Key feature for an Indian automotive OEM, enabling iPhones, Apple Watches, and Android Devices to function as smart keys.”
Aerospace growth strategy involves both direct OEM work (Airbus) and expanding into the supply chain and propulsion systems.
“We have not only built a relationship that we are very proud of at Airbus, but we are growing within the Airbus supply chain. And we are also investing very heavily in North America, specifically with the propulsion system manufacturers.”
In aerospace, capacity constraints are more critical than tariff considerations, providing resilience to trade policy changes.
“I think if you were to canvas opinion from the big players, Airbus and Boeing and their associated supply chains, I think while tariffs are important, building as many aircraft as the demand requires at the moment is an even greater priority. And so, our view is that accessing capability will be more important than the implications of some of the recent tariff regulations.”
– Warren Harris, CEO
L&T Technology Services | Mid Cap | Software Services
LTTS is a global leader in engineering and technology consulting, offering transformative products and services across industries like Mobility, Sustainability, and Tech. It partners with major global brands to drive innovation, focusing on smart, sustainable solutions that ensure regulatory compliance and deliver significant value.
[Concall]
LTTS has filed 216 AI/GenAI patents and now derives 1% of trailing 12-month revenue from AI product licenses, targeting 5% medium-term while investing in manufacturing humanoids.
“Before diving into segments, I want to share some updates about our technology and innovation charter. We have filed 216 patents in AI and GenAI alone. While our overall patent count has exceeded the 1,600 mark this quarter, we established a strong leadership position in engineering and industrial AI offerings which is helping us gain client mind share and market share. About 1% of our trailing 12 months revenue has come from license revenue of these products including AI. And our goal is to expand this to 5% of trailing 12 months revenue in the medium term. We are also making strategic investments in humanoids for manufacturing environment with use cases focused on repetitive precision-driven tasks.”
– Amit Chadha (CEO & MD)
Automotive clients are reviewing model year decisions with clarity expected in 3 months, while LTTS sees resilient spending on local manufacturing and growing traction for its proprietary EV platform iDrive.
“In auto, our clients are reviewing model year choices and we believe some certainty will emerge in the next 3 months. Clients spending on local manufacturing and supply chain continue to be resilient. We are also actively participating in consolidation deals in the US and Europe. This quarter we saw an uptick in clients wanting to use our proprietary EV platform LTTS iDrive solution for SDV and Track AI for specific OEM programs. The mobility segment will be muted with cyclical impact due to furloughs in the coming quarter Q3 and expect a comeback in Q4 FY26.”
– Amit Chadha (CEO & MD)
Real Estate
Sobha Limited | Small Cap | Real Estate
Sobha Limited is engaged in the business of real estate construction, development, sale, management and operation of all or any part of townships, housing projects, commercial premises and other related activities. The company is also engaged in manufacturing activities related to interiors, glazing and metal works and concrete products which also provides backward integration to the company’s turnkey projects.
The company sold 1,576 homes across 2.84 million square feet with average realization of INR14,028 per square foot, with Bangalore contributing 48% and NCR 38%.
“During the first half of this year, we achieved a real estate sales value of INR3,981 crores, which is higher by 30% compared to the last year in the same period.”
— Jagadish Nangineni, Managing Director
After launching over 10 million square feet across 12 projects in the past 6 quarters, H1 FY’26 launches were slower than expected.
“The slower first half launches were impacted due to several external and internal issues, and we are making our best efforts to catch up in the second half and launch at least 8 million to 9 million square feet for the entire financial year across 7 to 8 projects.”
— Jagadish Nangineni, Managing Director
The company completed 1.18 million square feet (591 homes) in Q2, up from 2.25 million square feet in H1, signaling faster execution.
“Our project delivery teams have also increased the pace of project completions with completions of 2.25 million square feet in the first half of the year. We aim to complete overall at least 5.5 million square feet in this financial year.”
— Jagadish Nangineni, Managing Director
After facing margin pressure during the high inflation period (2021-2024), the backward integration model now provides better cost control and delivery speed.
“Sobha has a unique execution model, which is backward integrated, where the entire design, execution and some parts of the manufacturing are done in-house. This gives us a unique advantage in terms of speed of delivery and also managing the cost of delivery.”
— Jagadish Nangineni, Managing Director
Despite being launched in February/March 2025, Townpark contributed 70% of Q2 Bangalore sales without any new tower launches, driven by INR2-3 crore ticket sizes.
“The Q2 sales, the majority of the contribution has been from Townpark for 70%, and all of them are sustained sales. This shows good on-ground demand for the end user-based products, particularly within the ticket sizes of INR2 crores to INR3 crores.”
— Jagadish Nangineni, Managing Director
The company maintains hands-on control over procurement and construction costs, allowing immediate pricing adjustments when raw material costs increase to protect margins.
“We are backward integrated company, wherein most of the things we are doing in-house. With this, we have a hand on all the cost and procurement. We real time monitor all the cost so that if we have to take price escalation because of increase in raw material, we take immediately to protect our margins.”
— Yogesh Bansal, Chief Financial Officer
With improved balance sheet strength (INR751 crores net cash) and patient capital allocation, Sobha is targeting locations with demand-supply gaps like Greater Noida for faster monetization.
“Our own capital structure has become better and hence, some of the land parcels that we can really pursue would reduce the competitive environment. We are being a little bit strategic in terms of the locations where there has been a demand-supply gap and we could quickly turn around.”
— Jagadish Nangineni, Managing Director
After 3-4 years of continuous price increases driven by demand-supply mismatch, supply is expected to increase, moderating the pace of price appreciation.
“We are entering into a phase of steady demand and supply in Bangalore. If supply might increase, then from a pricing point of view, we should see a stable or an inflationary increase in the pricing than the kind of price rises we have seen in the last 4 years.”
On Accounting Method Differences vs Peers Context: Unlike Mumbai-based developers using percentage completion method, Sobha uses completion method, meaning current P&L reflects margin economics from 2020-22 vintage projects.
“We recognize revenue once the project is completed and once we hand over the units to the customers. This is reflective of the sales and embedded margins that we have done in 2020, 2021 and 2022 and not of the sales that we have done today.”
— Jagadish Nangineni, Managing Director
Building Materials
Kajaria Ceramics | Small Cap | Building Materials
Management highlighting multiple cost optimization levers - packaging redesign saving INR30-35 crore annually, better sourcing negotiations, and 250 employee headcount reduction already implemented.
“In terms of cost reduction, we have taken significant steps, for example, reengineering of the packing boxes across all our plants across the country, which has resulted in substantial savings of INR30 crores, INR35 crores on an annual basis. Plus we’ve also worked on reducing our purchase price and outsourcing of ceramic and polished vitrified tiles, removed a lot of people, around 250 people. So a lot of work has gone behind the scenes to rationalize the cost, which you have seen in the results.”
Management emphasizing current 17.94% EBITDA margin is structurally superior and sustainable unlike the COVID-era 20%+ margin which was driven by temporary fuel price crash.
“In COVID area, the margin which we got in a particular quarter, that was a result of a significant fall in the fuel price. That was a one-off thing. But sustainably, our margin trajectory was around 14% to 15% to 16%. So we have moved into a new orbit of margin... That’s a much -- quality-wise, it’s a much superior margin, if you ask me, than that 21% margin in that COVID area. Because that was a result of a particular commodity which went down that significantly upped our margin. That margin was not sustainable. But this margin is definitely sustainable.”
Volume consolidation across three divisions now being leveraged for better supplier negotiations on raw materials, not benefiting from any industry-level price declines.
“Correct. You’re absolutely right. So with unification of sales, we have also unified our purchases and utilizing our power of volumes for better negotiations.”
Management expecting volume inflection from Q3 after zero growth in H1, though not quantifying specific targets, citing market improvement and benefits from unification initiatives.
“It’s too early to say because it’s a Diwali time also, but we are pretty hopeful this quarter, October to December, we should have some volume growth. The exact number, we’d not like to say, but we should definitely have some volume growth this quarter... H1 was -- we had 0 volume growth. H2 will definitely have some good volume growth.”
Multiple exclusive showroom formats (Prima Plus, Eternity, Galaxy, Ambiance, Gres Universe) being consolidated into single unified brand identity with consultant guidance, implementation by Q4.
“So that’s why the consultant has also come into play is they are guiding us to see how we have to do the outside branding for the normal -- for a regular customer. So all Prima Plus, Eternity World, all those terminology will go. There will be a common name, maybe like a Kajaria Galaxy or a Kajaria World or whatever. So that work is already going on. We just got this consultant recently. So maybe in the next 1 or 2 months, we’ll have the entire plan ready. And the last quarter, Jan to March, we will get everything implemented.”
Industry-level tile exports growing 9-10% H1 FY26 vs prior year (INR8,300 cr vs INR7,600 cr), expected to reach INR18,000 cr for full year, signaling some global demand resilience.
“So the data which you have got in the last 6 months, export has grown a little bit. So from last 6 months, they had April ‘24 to September ‘24, they had a volume of about INR7,600 crores. April ‘25 to September, we have exported about INR8,300 crores. So there’s a marginal 10% increase, 9% to 10% increase. And this will continue looking at the situation in India... Full year should be INR18,000 crores.”
Clear retail expansion roadmap - growing exclusive showroom network beyond current 450 stores across 1,850 dealer base to strengthen brand control and premium positioning.
“Currently, we have 450 exclusive showrooms of Kajaria with 1,850 dealers. Our target is to increase that more in the next couple of years and get more exclusive distribution showrooms.”
Stable premium positioning maintained - Kajaria commanding consistent 20% price premium over unorganized Morbi players, indicating brand equity and differentiation holding despite competitive pressure.
“Pricing gap between Morbi and Kajaria is about 20%, and that remains.”
Broader industry context - weakness not unique to tiles, affecting all building materials except cement/steel, attributing it to government infrastructure spending slowdown with expectations of revival as spending picks up.
“No, no. I answered that point, not only tiles, all kind of building material, except cement and steel, which go into the building industry has been weak. Right now, we don’t have an answer. But you see what happens. All of a sudden, you see demand coming in with all the infrastructure government is doing. Government has also slowed on infrastructure of late. But I think now things are pushing where they are only talking about infrastructure development and all that. Once that happens, demand has to come.”
Portfolio diversification paying off - Bathware growing 14% YoY and Adhesives up 78% YoY, both outperforming core tiles business and expanding addressable market beyond traditional ceramics.
“Bathware segment registered a 14% growth in revenue, reaching INR102 crores compared to INR90 crores in quarter 2 F ‘25. Revenue from Adhesives grew to INR32 crores in quarter 2 F ‘26 as compared to INR18 crores in quarter 2 F ‘25.”
Metals
JSW Steel | Large Cap | Metals
JSW Steel, a leading steel company, has a strategic collaboration with JFE Steel of Japan to produce high-value special steel products for various industries. Known for excellence in business and sustainability practices.
[Concall]
Board approved 1 million ton EAF structural steel plant in Andhra Pradesh (FY29 completion) taking India capacity to 42.9 million tons, while CRGO electrical steel expansion announced at Nashik (50K to 250K tons) and Vijayanagar (62K to 100K tons) to maintain VSSP share above 50% of sales.
“The board has now approved to set up a project of 1 million ton based on EAF in Karapada, Andhra Pradesh by end of FY29. The plant will incorporate a section mill to produce structural steel widely used in construction and infrastructure. As construction transitions to becoming more steel intensive, the site has the potential for further expansion and with possible iron ore availability in Andhra Pradesh, this site has potential for further growth. This project will take our India capacity to 42.9 million by FY29. Along with steel making, we continue to strengthen our VSSP portfolio and capacities aiming to keep our value added and special products share in our total sales above 50%. In August, we announced that we will expand our CRGO electrical steel capacity at the Nashik plant from 50,000 to 250,000 tons per annum and the Vijayanagar facility to have a capacity of 100,000 tons per annum from 62,000 tons envisaged earlier.”
– Jayant Acharya (Joint MD & CEO)
Supreme Court dismissed appeals on BPSL resolution plan (September 26, 2025) acknowledging JSW’s turnaround efforts.
“In the case of BPSL, I’m happy to share that on September 26th, 2025, the Supreme Court dismissed the appeals filed by the former promoters and certain operational creditors. The court upheld the NCLT 2021 order, which had approved JSW Steel’s resolution plan for BPSL. The court has also acknowledged the substantial efforts made by JSW Steel in resolving and turning around BPSL into a profit-making company.”
– Jayant Acharya (Joint MD & CEO)
Steel imports increased in last two months despite absolute decline, driven by global tariff spillovers making India natural destination, with 12% safeguard duty benefit partially eroded, requiring monitoring of trade measures to prevent dumping while domestic demand and supply capability remain strong.
“If you were to see on an absolute basis your imports have come down. So only thing is that in the last two months imports have again shown an increase. Primarily these are because of the tariff headwinds which we are seeing in the world. Various countries are announcing different tariffs and that is resulting into some spillover for steel looking for a market and India becomes a natural choice. While our safeguard duties of 12% have been helpful in the first quarter but I think part of that is already eroded. So I think as we watch the tariff actions by others I think we will probably have to monitor how that goes and accordingly look for measures trade measures which may be required to support any kind of dumping which may come in. Other than that from an India perspective I think we remain quite optimistic and quite strong in terms of our demand and our ability to meet that demand.”
– Jayant Acharya (Joint MD & CEO)
GST reforms characterized as milestone event changing buyer sentiment evidenced by Maruti’s small car booking surge, with cement GST cut expected to boost housing and infrastructure demand, positively impacting consumer durables and real estate though full effect requires few months to materialize.
“The GST reforms which they have announced has been a milestone event. I think it has changed the sentiment of the buyer. You can see it reflected in Maruti Suzuki’s booking which they have announced in the papers. They are all struggling to meet the demand because they didn’t anticipate this kind of demand for small cars which were not there for some time. Secondly, reduction of GST on cement will also have I think an impact on housing and infrastructure because that also I think would improve. So you will see consumer durables, housing, residential and office spaces both improving. So I think it should be positive but as Arun said I think we’ll have to watch for a few months to see how it unfolds but I am quite positive about this move. It has been a big support I think the way we have seen in the last few weeks.”
– Jayant Acharya (Joint MD & CEO)
International
Nestlé | International
Nestlé is a multinational food and beverage company that manufactures and sells a wide variety of products, including coffee, chocolate, bottled water, dairy, and pet care items.
[Concall]
Total headcount reduction of 16,000 employees (12,000 white-collar + 4,000 manufacturing) over two years for efficiency gains.
“We plan a further 4,000 headcount reduction as part of our ongoing productivity initiatives in manufacturing and supply chain. This will drive cost savings and we have increased our fuel for growth savings target by 500 million Swiss Franks by the end of 2027. Historically, we have avoided being fully transparent about these changes and I want to be transparent. We plan a reduction of 12,000 white collar professionals across functions and geographies over the next coming two years.”
– Philip Navertil (CEO)
Air fryer penetration globally creating new consumer platform opportunity in modern cooking; company launching product mixes to capture trend.
“The other example I have there is we call it modern cooking and we have had a very good example where we tapped really early into a consumer trend which is the growing penetration of air fryers at homes all over the world. And we have launched specifically on the Maggi but also other brands, mixes that can be used to prepare delicious dishes with air fryers and we were fast in doing this. We had the right brand, we rolled it out, the right execution, but then modern cooking can be taken to other ways of cooking and we’re looking at that.”
– Philip Navertil (CEO)
The Coca-Cola Company | International
The Coca-Cola Company is a total beverage company that manufactures, markets, and sells beverage concentrates, syrups, and finished beverages across various categories. Its business includes a wide portfolio of products such as sparkling soft drinks, water, sports drinks, coffee, tea, juice, dairy and plant-based beverages, and flavored alcoholic beverages.
[Concall]
GLP-1 drugs driving protein beverage growth; Fair Life New York facility ramping through 2026 adding 30% capacity to address allocation constraints.
“They tend to drink less full sugar soft drinks but they tend to drink more diet soft drinks, also hydration, more coffee and as you say a big shift towards protein drinks. I think that’s a pretty standard set of conclusions that everyone’s seeing. And then as it relates to what we’re doing on protein, obviously we’ve got Fair Life and Core Power which have been standout successes for the last number of years and continued to grow in the third quarter. The capacity that we’ve talked about at the big factory up in upstate New York is on track. We expect to begin to produce on time and ramp up that capacity through the course of 2026. As much as I would love it to all be available on January the 1st, that will not be the case. And so we do see ourselves having a much more unconstrained ability to satisfy consumer demand over the course of 2026.”
– James Quincy (CEO)
Refranchising strategy near completion with India (Jubilant Bhartia) and Africa (Hellenic) deals; only small markets like Malaysia/Singapore remain.
“Recently, we reached two significant steps in completing this journey. In July, we sold the 40% ownership stake in our company-owned Indian bottler to the Jubilant Bhartia Group. Additionally, this morning, Coca-Cola Hellenic announced its intention to acquire a controlling interest in Coca-Cola Beverages Africa, which is expected to close next year subject to regulatory approvals. We believe these moves will unlock growth opportunities in India and Africa. With these milestones, we have a clear line of sight to complete our refranchising strategy, allowing us to further focus on brand building and innovation complemented by integrated execution with our bottling partners. The things that will be left are just a handful of smaller countries like Malaysia and Singapore.”
– James Quincy (CEO)
Heineken Holding | International
Heineken Holding’s business is primarily in overseeing and managing the brewing giant, Heineken N.V., which manufactures and sells a wide portfolio of beer and cider brands globally. It acts as the primary shareholder and a supervisory body for Heineken N.V. and does not conduct direct operational activities.
[Concall]
Americas beer market softening more than anticipated due to tariff uncertainty; company now tracking remittances and small business funding as leading indicators.
“The macroeconomic volatility that we really firmly believe is cyclical in nature as we said was more pronounced in quarter three. And what you do see is that particularly in the Americas for instance, you see the beer market was actually softening and I already cautioned that if you can recall in our first half results where we specifically called out Brazil as an early sign of consumer sentiment turning driven by the tariff uncertainty revolving around there. And that really played out more pronounced than we had anticipated but we did have it on our radar screen. Our business is really starting to pay much more attention to macroeconomic indicators that may have an impact on for example funding of smaller businesses, overall consumer sentiment, remittances. So those we see as really the leading indicators that we should factor in and base our risk management approach on.”
– Harold van den Broek (CFO)
India volumes down mid-single digit on strong monsoon but outperformed market; China licensed volumes up mid-20s gaining share.
“In India, beer volume fell by a mid-single digit impacted by an unusually strong monsoon season, but we still outperformed the market. Price mix expanded by a high single digit supported by pricing in key states and portfolio mix with premium volume growing in the teens. In China, Heineken Original, Heineken Silver and Tiger maintained strong momentum with licensed volume growing in the mid-20s and gaining market share.”
– Harold van den Broek (CFO)
Hermès International | International
Hermès International is a French luxury goods manufacturer that creates and sells a wide range of high-end products, including leather goods, ready-to-wear apparel, silk scarves, watches, jewelry, and fragrances.
[Concall]
Chinese tourist spending outside mainland not accelerating; US and Middle East travelers driving Europe/France luxury demand with footfall increasing.
“For our Chinese client base, outside of greater China, we haven’t seen a speed up particularly for wealthy individuals. So the two client bases that we believe are more important, the most important in Europe and France, it’s people from the US and the Middle East who travel over and we saw it in Q3 a slight uptick when the events between Israel and Qatar were probably the tensions were at its highest but we’ve gone back to normal more level since then. Now, as you’ve seen, silk which is a volume-driven division and clothing and fashion accessories that has sped up a little bit and we’ve seen these divisions benefit from a slightly higher footfall including in the US.”
– Eric Duwet (CFO)
All Russian stores closed since war began; exiting leases except one minimal location for legal/maintenance obligations; no active Russian business.
“Regarding sales in Russia, well we’re one of the first groups to have pulled out of Russia and closed our stores after the beginning of the war. All of our stores are closed since the war started. We’d kept the stores, but we’re now exiting the leases so that we only keep one store in Stoleshnikov just to host the couple of people who are in charge of legal obligations and maintenance. We have no business in Russia anymore.”
– Eric Duwet (CFO)
General Motors | International
General Motors is an automotive company that designs, manufactures, and markets a variety of vehicles, including cars, trucks, and crossovers, under brands like Chevrolet, Buick, GMC, and Cadillac. Its business also includes automotive parts, financial services such as leasing and financing, and a growing focus on electric and autonomous vehicle technology.
[Concall]
EV demand collapse post-federal incentive elimination driving $1.6 billion Q3 charge; Orion shifting EV to ICE, Michigan cell plant sold to LG, hydrogen fuel cell development halted.
“With an evolving regulatory framework and the end of the federal consumer incentives, it’s clear that near-term EV adoption will be much lower than planned. This is resulting in higher variable costs as we expect to utilize less capacity across our EV plants and supply chain. All of this drove our decision to transition Orion assembly from EV to ICE production and to sell our joint venture-owned cell plant in Michigan to LG Energy Solution. It’s also why we recorded a $1.6 billion special item charge in the third quarter. $1.2 billion of the charge is for non-cash impairments, most of which are related to the Orion transition, reductions in battery module assembly capacity, our decision to stop development of next generation hydrogen fuel cells, and the write-off of CAFE credits and associated liabilities. The remaining $400 million is for cash charges related to supplier contract cancellation costs.”
– Mary Barra (CEO)
China chip supply disruption being actively managed with alternative sourcing; industry-wide issue with fluid situation requiring around-the-clock supply chain mitigation efforts.
“We are also monitoring the supply of certain chips from China. This is an industry issue I know you are all aware of. While this has the potential to impact production, we have teams working around the clock with our supply chain partners to minimize possible disruptions. The situation is very fluid and we will provide updates throughout the quarter as appropriate. Our team has jumped into action evaluating where we had potential disruptions and what different sources we could use. So, the team is working around the clock to get that done. And I don’t have any specific timing to share with you, but I think that you know, we’re very hopeful this is going to get resolved in the meantime, but the team continues to work as we speak to make sure we continue to identify other sources so we keep running.”
– Mary Barra (CEO)
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.
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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Plotlines is an extension of our Chatter newsletter. While most financial analysis focuses on quarterly results and near-term changes, Plotlines takes a different approach. We analyze executive commentary from earnings calls and investor presentations to identify long-term, structural shifts that will shape industries for years to come.
Instead of chasing headlines, we look for strategic pivots, evolving competitive dynamics, and fundamental changes in how companies allocate capital. Each week, we’ll highlight the most significant “plotlines” from recent corporate communications, focusing on comments that signal permanent changes in market structure, technology adoption, or business models.
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Think of it as a visual extension of The Chatter. While The Chatter tracks what management says on earnings calls, Points and Figures digs into what companies are showing investors—and soon, even what they quietly bury in annual reports.
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