The Chatter: Still in Play
Edition #18
Welcome to the 18th edition of The Chatter — a weekly newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.
We're always eager to improve—please share your ideas on how else we can innovate "The Chatter" format to better serve your needs.
In this edition, we have covered the 13 commentaries across 6 industries:
Information Technology
L&T Mindtree
HCL Technologies
Tata Technologies
Tech Mahindra
Wipro
Financial Services
HDFC Asset Management Company
Angel One
Anand Rathi Wealth
Logistics
Allcargo Group
Conglomerate
Reliance Industries
Consumer
Heritage Foods
Dixon Technologies
Engineering & Capital Goods
KEI Industries
Information Technology
L&T Mindtree | Large Cap | Software Services
LTIMindtree Limited, formed by the merger of Larsen & Toubro Infotech Limited and Mindtree Limited, provides a wide array of IT services to clients across various industries.
The company delivered steady Q1 results, with 2% revenue growth and better profit margins. This supports its plan to double revenue to $10 million in 5–6 years. While growth was modest, improving margins show strong execution.
“Look, yes, the Q1 was in line with expectation. You know, we grew 2% quarter on quarter on US dollar terms and we expanded our margin as well. in line with you know the overall strategy that we have to double our revenue to $10 million over the next five to six years.I think we've made a very promising start.”
— Venu Lambu, CEO & MD
The company is seeing strong deal momentum, with one major deal signed and more on the way—one possibly a record. This is expected to drive near double-digit year-on-year growth in the second half, signaling a strong pipeline and positive outlook.
“right so we announced a very large deal at the beginning of this the Q1 and we're almost at the final stages of announcing couple of very large deals and one of them can beat the record of a previous last deal that we announced so all this momentum will carry you know it forward towards the H2 and sometime in H2 you know we will have a year-on-year growth of closer to the double digit.”
— Venu Lambu, CEO & MD
The company shows confidence in its growth within the BFSI(Banking, Financial Services, and Insurance). sector, backed by solid relationships with major banks. Minor short-term fluctuations, like seasonal dips or early project completions, are acknowledged but not seen as threats to its long-term $10 million revenue target.
”you know indication towards the growth of our business in the BFS right I mean we have a very strong relationship in the BFSI space you know we support all the global banks and regional banks across different aspects of the financial services institution.So you know you know there may be youI know a quarter here and there in our journey of $10 million where we might have some seasonally weak quarter and some project coming off too early and so on you know but otherwise I don't see any material impact in the structure of the business that will slow down what we want to do.”
— Venu Lambu, CEO & MD
The company’s "Fit for Future" program is enhancing competitiveness and agility by optimizing costs. This initiative supports its ability to win large deals while maintaining profitability. Management sees it as part of a larger strategic journey that is well underway.
“The “fit for the future program” actually makes us more competitive. You know makes us more agile and we really spend the cost and our ability to win large deals and you know and still continue a profitable Journey is possible as part of these initiatives. So there's a bigger picture that we have and we're on that journey.”
— Venu Lambu, CEO & MD
HCL Technologies | Large Cap | Software Services
HCL Technologies Limited offers a wide array of IT, business services, engineering, R&D services, and software products. They specialize in digital, engineering, cloud, and AI solutions across various sectors like Financial Services, Manufacturing, Life Sciences, Public Services, Retail, Technology, Telecom, Media, and Entertainment.
Positions HCLTech not just as a respondent to the AI wave, but as an early mover, embedding AI/automation into core service lines and launching vertical-specific, repeatable solutions.
"Our AI Force platform is deployed across 35 clients and 70-plus deployments, enabling several new wins... AI Engineering is gaining traction in robotics domains, while AI Labs are building Centers of Excellence in emerging tech areas. Platforms like Invoice-to-Payment and Lab-as-a-Service are being launched to accelerate value and deliver measurable ROI."
"The share of AI and Gen AI is growing as they become central to nearly every deal. Gen AI is now central to IT Services strategy."
— C VIjakumar, CEO
Hints at management’s intent to preserve long-term margin credibility (signaling this year’s dip is transitory), which is essential for investor confidence—especially when investing aggressively in new technologies.
"We are not setting, structurally, the margin bar lower... will continue to be 19%-20%. This year, for all the reasons explained, there's going to be certain headwinds—so this year, we will be between 17%-18%."
— C VIjakumar, CEO
Their choice to avoid heavy capital investment in physical data center assets is a critical strategic demarcation versus competitors who may pursue infrastructure-heavy approaches.
"We don’t want to play in the assets kind of game. Pickup will be gradual; even Edge AI is being piloted factory-by-factory, but we see this as a big strength and capability of ours."
— C VIjakumar, CEO
Signifies a break from traditional mass campus intake, increasing the quality (and cost) of entry talent—reflecting a pivot toward high-complexity digital/AI services rather than commodity IT.
“...Our fresher intake is now based on skills and specialization, no longer just numbers. We have also revised compensation so that specialist or elite freshers earn 3x-4x of the regular base. There is an extreme level of specialization now... major overhaul and recalibration of entry-level talent plans."
— Ram Sundararajan, Chief People Officer
Demonstrates management’s willingness to address underperforming assets/sectors aggressively, rather than wait for recovery. Also underlines structural workforce transformation as automation takes hold.
"First aspect is acquisitions done in the past—while integration happened, cost rationalization (facilities, etc.) didn't. Automotive has seen a ramp down and is not expected to recover quickly or requires more offshore skills—so further restructuring is needed. And, due to productivity improvements, some released employees are not readily redeployable, especially as automation/AI addresses lower-skill needs."
— C VIjakumar, CEO
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.
Management frames the disappointing Q1 not as a structural concern but as a response to transitory headwinds (notably tariff-based macro disruption and delayed investments). They stake considerable confidence in a demand recovery, especially supported by anchor customers and sector diversification.
“However, we believe the factors that informed the softness in Q1—such as delayed deal ramp-ups and macro-driven investment pauses—are short-term in nature and largely isolated to the first three months of this fiscal year…”
“Additionally, recent progress in global trade negotiations and bilateral agreements signals that macroeconomic headwinds may be transitory... Our performance in Aerospace underscores the resilience of our diversified portfolio...”
— Warren Harris, CEO
Expansion of “CHROMOSOME.AI” across a major Tier 1 auto supplier signals deeper moves into high-value digital manufacturing and AI, highlighting strong differentiation and multi-year growth potential.
..”very large deal with a Tier 1 North American automotive company, where we are deploying our proprietary AI framework at CHROMOSOME.AI into that organization across 100 plants. We are deploying sensors, collecting data and using that platform to enable the organization to accelerate manufacturing throughput and increase manufacturing uptime of assets, legacy assets within those plants...”
— Warren Harris, CEO
Openly acknowledges the material sensitivity of client spend to global trade policy – exposure to macro risk is non-trivial. Yet, management's willingness to maintain capacity points to strategic patience and confidence in demand rebound.
“The announcement was made about tariffs. And I think the uncertainty that it generated prompted a number of our customers... to pause and delay... And so, whilst we entered the quarter with confidence and with high expectations, we've had to recalibrate the expectations... as a result of that macro issue. “
— Warren Harris, CEO
Management stops short of formal guidance downgrade but softens language on full-year targets, shifting focus to Q2-Q3 as a proving ground for recovery. Investors should recognize higher-than-usual uncertainty around annual top-line numbers.
“...We certainly have had our expectations somewhat challenged by the events of the first 3 months. But double-digit will continue to be our North Star. We'll see how we do in the second quarter. And I think we'll have a much more informed perspective as we move into September and October. So as of right now, we will continue to push the organization as hard as we can to achieve the type of growth”
— Warren Harris, CEO
European automotive OEMs are shifting sourcing strategy towards India and low-cost regions, opening new addressable market opportunities and forming potential industry tailwinds for Tata Technologies.
‘“I think all three of the big OEMs in Germany are now requiring BCC (Best Cost Country, i.e., lower-cost geographies) components to their sourcing of engineering services... opportunity for organizations like ourselves to partner with their incumbent engineering service providers onshore... that push of Germany into not just India but also places like Eastern Europe and Morocco is continuing at pace.”’
— Warren Harris, CEO
While revenue softness hurt margins, management maintained higher fixed personnel costs (capacity build-up, not cuts) and reduced third-party/outsource costs. Implies cost discipline but also strategic optimism.
“...Employee benefit expenses... remained flat quarter-on-quarter in absolute terms, rose by 170 basis points as a percentage of total revenue as we built the right skill mix... in anticipation of a rebound in the following quarters... Outsourcing and consultancy expenses... declined by 13% sequentially,”
— Savitha Balachandran, CFO
Tech Mahindra | Large Cap | Software Services
Tech Mahindra Limited, a global leader in digital transformation and consulting services, offers a wide range of solutions including Telecom IT & Network Services, Application Outsourcing, Engineering Services, BPO, and more.
Confirms the company’s guidance is contingent on stability in the macro environment; suggests that margin commitments are maintained but growth guidance is more conditional.
“...over the past 3 or 4 quarters, continued to show a steady increase in our large-deal booking rates. But at the same time, we have also had to deal with tougher macro and some run-offs that we have been grappling with...
We do expect that from Q2 onwards and certainly from the second half onwards that the large-deal wins will have completed transition and will start accruing to revenue, provided that the business environment remains at the current level.”
— Mohit Joshi, CEO & MD
Signals Tech Mahindra’s opportunity to benefit from vendor consolidation in the European telco market; management’s optimism is based on tangible pipeline developments.
"In Europe… We are seeing a very significant pipeline from a consolidation perspective, right. There is consolidation in the market overall in terms of the reduction in the number of telcos. But we are also seeing a consolidation of IT services providers and BPO providers for each of our clients."
— Mohit Joshi, CEO & MD
Reveals that margin expansion is not reliant solely on external (revenue) growth—material operating levers persist internally, especially fixed-price program productivity and corporate integration.
"One of the big portions of the improvement lever will be driving productivity actions around the fixed-price program..."
"Integration of the portfolio companies... will continue to give us improvements from now till F’27…”
— Mohit Joshi, CEO & MD
Gives substance to the frequent AI narrative—Tech Mahindra’s AI initiatives are not limited to pilot projects but are scaling in production.
“We now have a portfolio of 200 plus enterprise-grade AI agents across industry segments. Several of these are already in use at scale with our clients.
“...Our 77,000 plus employees across the company trained in AI and Gen-AI (Generative Artificial Intelligence), including a critical mass with advanced training and certifications.”
— Mohit Joshi, CEO & MD
Wipro | Large Cap | Software Services
Wipro Limited is a prominent technology services and consulting company specializing in creating innovative solutions to meet clients' complex digital transformation needs.
Explicit warning that while margins have improved, continued ramp of larger, lower-margin deals will pressure profitability, at least in coming quarters.
“Our focus and energy is going to be on conversion, right? A lot of these deals will ramp up over the next 4 to 6 quarters…these larger deals…the margin profile is weaker compared to the rest of the portfolio. So, there will be some pressures…”
“We have done well in order to improve our profitability. For now, our number one priority would be growth.”
— Aparna Iyer, CFO
A candid admission that deal wins environment is highly competitive—pricing is under pressure. Margin sacrifices are not from pass-through arrangements (which can obscure true profitability), but from necessary investments in talent, onboarding, and client-specific integration.
“…some of these large deal wins are very competitive. There will be price pressures on that. What matters is, how do you transition and how do you execute these deals…each of these deals are extremely strongly contested. What’s good news is that we have won despite that competition…So, we and everybody has to innovate. We have to generate more savings and continue to stay competitive.”
— Srini Pallia, CEO
Important for yield-focused investors: payout commitment raised from 50% to 70% of net income over 3 years, showing focus on cash generation. Buybacks still possible, giving flexibility based on future market conditions.
“we had communicated that we continue to prefer dividends and buyback as a means of returning cash to our shareholders. For now, in the January quarter and this quarter, We have given out dividends. Buyback continues to remain an option and we could consider that at an appropriate time.”
— Aparna Iyer, CFO
Management signals resolution of Europe-specific disruptions, with visibility for improvement in H2, despite overall sector and macro headwinds. Key for investors watching for inflection points in lagging geographies.
“…In Europe, we have said that it’s a combination of both the macroeconomic environment, the discretionary spend environment, and a few clients’ specific challenges. Client specific challenges are now behind us…in the second half of this financial year, we should start seeing some stabilization and growth in Europe.”
— Aparna Iyer, CFO
Resume demand is sector-specific: recovery is limited to AI and data-driven projects in select verticals and repeat clients; other budgets remain flat.
“…broadly…discretionary spend is coming around data, AI and modernization…for example, we have won a deal…for a particular retailer, we call it fashion intelligence, right? AI will know what to sell and this is a large American fashion brand…Similarly…a Financial Services company…look[ing] at…smart credit decision, right…how can we make this more AI so that it is less error-prone and also...more accurate…”
— Srini Pallia, CEO
Financial Services
HDFC Asset Management Company | Large Cap | Financial Services
HDFC Asset Management Company Limited (HDFC AMC) is a leading investment manager to HDFC Mutual Fund in India. Known for actively managed equity-oriented assets, it offers a wide range of savings and investment products across asset classes.
Approval to launch SIF and intention to expand into new asset classes signal a strategic inflection point, targeting more sophisticated or institutional investor segments, diversifying from traditional mutual fund offering.
“We have secured the necessary approval from SEBI (Securities and Exchange Board of India) to set up a Specialized Investment Fund (SIF)... this opens up an avenue for us to launch this product. Team is focused on designing a thoughtful set of offerings... that aligns with our investment strength and risk management capabilities.
— Navneet Munot, MD
Fintech and direct channels are now growing faster than traditional banks, hinting at a major shift in how financial products are sold.
"...if other channels grow faster as compared to a bank, you will automatically see that pie chart shape up in the fashion it has. So, it is not necessary that we are losing a share... fintechs are contributing in terms of SIP flows and others, direct as a proportion... is growing at a faster pace. So, it's more of a realignment..."
— Simal Kanuga, Executive VP
Clarity on macro-driven flows (liquidity, interest rate cuts, regulatory environment) and record-high debt/liquid inflows provide “between the lines” guidance suggesting a multi-quarter tailwind for fixed income asset gathering.
“We have a best-in-class product range; almost all SEBI-allowed categories available. In this quarter... the flows in the debt and liquid category put together for the mutual fund industry would be the highest ever for the industry.”
Favorable backdrop for the debt markets and by extension for debt mutual funds... We remain constructive on the outlook for debt funds... whenever liquidity in the system improves, that also helps when people have a positive view on the rate trajectory.”
— Navneet Munot, MD
Management signals strong new business momentum—even if AUM market share appears static or only slightly growing, they are capturing outsized new flows.
“Our market share across all channels… includes national distributors, mutual fund distributors, fintech channel, direct investors, RIAs, etc. We continue to get good share both in lump sum as well as SIPs... The change in share you notice is due to flows and mark-to-market impact. ...Different funds move differently… It's a combination of many things.”
“Our overall net flow market share is higher than our book market share.”
— Navneet Munot, MD
While this seems positive, it also signals risk—high spending on retaining talent points to a competitive job market or fear of key staff leaving, especially as teams shift to new products like SIFs and alternatives.
“We are broadening ownership and deepening alignment... Under the new plan, ESOPs and PSUs cover over 800 people, about 50% of our workforce.”
— Navneet Munot, MD
Angel One | Small Cap | Financial Services
Angel One Limited, formerly Angel Broking Limited, is a prominent retail full-service broking firm in India. Established in 1996, it specializes in stock, currency, and commodity broking, along with margin trading, depository services, mutual fund distribution, and portfolio management.
This marks a significant business model pivot from pure broking towards a holistic fintech platform, signaling intention to capture a larger wallet share across financial products.
"We are no longer just a broking company. We are building Angel One as a fintech platform, one that is product-agnostic, client-centric and technology-led."
— Dinesh Thakkar, Chairman & CEO
The operational detail about AI/ML integration is more advanced than industry narratives, indicating proprietary tech could be an emerging moat.
"AI is no more just an enabler. It is the core engine driving every aspect of our platform. With over 32 million clients and billions of data points processed every day, our deep focus on data science, machine learning and platform intelligence is enabling us to build India's most inclusive and intelligent financial services ecosystem."
— Dinesh Thakkar, Chairman & CEO
Losses in new business lines are starting to meaningfully affect group-level profitability, risking greater drag if incubation periods extend.
...the effective tax rate for this quarter is higher. And this is primarily because a couple of our businesses are loss-making, and therefore, the effective tax rate has gone up by about 3% because of those businesses. And the CSR (Corporate Social Responsibility) contribution that we do quarter-on-quarter, that doesn't qualify for any tax deduction. So that's also about a 1% impact..."
— Dinesh Thakkar, Chairman & CEO
Expresses confidence in India’s macro and secular tailwinds for capital markets, but also pushes for diversification—potentially signaling Angel One’s commitment to expanding product suite to serve broader portfolio needs.
"Given this backdrop, 2025 is shaping up as a year of asset allocators and presents opportunities for patient investors. While domestic equities remain attractive, we recommend cautious diversification."
— Dinesh Thakkar, Chairman & CEO
Anand Rathi Wealth | Small Cap | Financial Services
Anand Rathi Wealth Limited is a prominent non-bank wealth solutions firm in India offering a range of services through its Private Wealth division, including mutual fund distribution and market linked debenture sales.
This operational detail reveals a lag effect in incentive expenses and a leverage in OPEX as new RMs mature (move from fixed to variable comp). It also signals a systematic pipeline for RM scaling and a unique reliance on internal promotions versus lateral hiring.
"The number of new RMs which have been added into the system in the last 1.5 years, 2 years they have started reaching to the threshold and...have started contributing on the revenue side and their fixed cost of salary is coming into the operating cost. But they have not yet reached the incentive level..."
— Feroz Azeez, Joint CEO
Acknowledges regulatory headwinds but projects confidence in business continuity and hints at prudent risk management by diversifying underlying indices. Suggests minimal disruption to growth targets from SEBI’s F&O clampdown.
"Now coming to...Jane Street and the regulation in terms of option volumes...for the next Rs. 1.5 lakh - Rs. 2 lakh crores of our next AUM, we do not see any challenge...Of course, on one index what Jane Street hypothetically...did was made cash market losses to make, built put option positions or call option positions on expiry day and trigger stop losses to the rest of them...So, will we look at more diversification in terms of NIFTY, Sensex? The answer is, "Yes..."
— Feroz Azeez, Joint CEO
Signals intend to strategically position for the long-term influx of NRI and offshore wealth into India, leveraging new regulatory pathways (GIFT City, pooled investment vehicles). Nascent, but a clear structural growth lever.
"Point three, SEBI has been creating several platforms, which make it very easy sort of a pooled investment, especially from international...In the GIFT City and the AIFs and other businesses, which can channelize money into India are developing beautifully. So, we have just got licenses, or we are in the process of getting licenses..."
— Feroz Azeez, Joint CEO
Reaffirms fiscal targets with confidence and highlights a record of conservative guidance and delivery. Reference to uniqueness builds trust and supports premium valuation.
"Do I see any change in the guidance? The answer is a big no, because we will be able to achieve those numbers is how we have always under committed, overdelivered. ...there is only one Company which has given PAT guidance and also met it for 3 successive years, which is Anand Rathi Wealth Limited."’
— Feroz Azeez, Joint CEO
No immediate return-of-capital action expected; management will signal plans if/as they arise. Preference for measured approach to buybacks given diminished tax advantage.
“…our corporate actions of buyback, I think we have not considered any buyback so far. And if there is any consideration we will come back to you and price is not a huge motivation for a buyback. Of course, earlier, there used to be immense amount of tax efficiency...tax laws have changed on that as well...As of now...there is nothing on the cards...if I have to tell you as transparently as it could get.”
"As of now, in my mind, there is nothing on the cards, which we have discussed internally if I have to tell you as transparently as it could get."
— Feroz Azeez, Joint CEO
Logistics
Allcargo Group | Small Cap | Logistics
Allcargo Logistics Limited is a global leader in LCL consolidation and India’s largest integrated logistics solutions provider. They create innovative services to meet supply chain needs and specialize in designing special logistics solutions for challenging projects in difficult terrains using high-end expertise.
The company’s market leadership in CFS operations reflects a strong foothold in India’s logistics and port-linked infrastructure. Their scale likely enables cost efficiency and wider reach.
ICD (Inland Container Depot): located further inland, handles full container loads (FCL) and often includes rail/road connectivity to ports.
CFS (Container Freight Station): typically located near ports, handles less-than-container-load (LCL) cargo.
“Let me start with the all cargo terminals business. That's where we have all our container freight stations and ICDs. So primarily in that business we are the largest CFS operator in the country and the business has been doing good.”
— Ravi Jakhar, Group Director
This signals the company’s intention to scale operations at key port locations on both coasts, improving its logistics footprint.
“What we intend to do is we intend to add capacity in JNPT(Jawaharlal Nehru Port Trust, Navi Mumbai) in Chennai and we have been speaking about an ICD now.”
— Ravi Jakhar, Group Director
This shows the company is exploring internal funding routes and that the promoters are investing more, signaling confidence in the business. However, the final step depends on shareholder consent,
“In terms of funding we believe there are multiple opportunities to begin with and the board has recently approved an issuance of preferential allotment to the promoter group which has been concluded and is now subject to the shareholders approval.”
— Ravi Jakhar, Group Director
The company is taking a flexible, cost-optimized approach by combining lease-based (asset-light) models with selective ownership (asset-heavy) with an average plan of 300crores.This helps manage risk while still enabling significant growth, especially at key locations like JNPT and Chennai.
“So it would be a combination of asset light and asset heavy in the sense that you know we would try to get into some of the operating leases like in JNPT we are looking at expanding capacity by almost 30% with the addition of new facility but that will be on an asset light model in Chennai we are evaluating both models right now in ICD there'll be some capex required so we estimate that the total capex requirement over the next 3 years could range anywhere from about 150-200 crores to about 350 crores to 400 crores depending on the final you know dynamics of our strategy.”
— Ravi Jakhar, Group Director
The company is targeting strong, sustainable growth backed by strategic expansion. The fact that returns exceed the cost of capital indicates that the new investments are expected to be value-accretive and efficient in terms of capital usage.
“I would say you know with the new capacity addition we believe that over the next 3 to four years there should be an opportunity for the company would grow in the range of 15 to 20%of a compounded annual growth rate that's the broad target around which it is being planned and in terms of return on capital employed as well as for the new projects these are all significantly higher than our weighted average cost of capital.
— Ravi Jakhar, Group Director
The core business remains healthy, with consistent positive cash flows. Any dip in profit is mainly due to accounting adjustments, not operational weakness.
“The operating cash flows had remained positive for the last several quarters. There could have been, you know, one of depreciation line items that you were possibly referring to on goodwill depreciation or around the brand etc. on some past acquisitions which potentially leads to you know a decline on the bottom line. But from a business standpoint, the operating cashflows have remained steady and consistently positive over the last many quarters and will continue to remain positive and also grow from here.
— Ravi Jakhar, Group Director
The slow start was expected due to seasonal and tariff-related factors. Trade activity is now recovering, with positive signs emerging in July, suggesting a return to normalcy and potential growth ahead.
“We have not seen any momentum until the June quarter. It is also very customary for May and June
months to be low and typically is the month of July from which the trade pickup happens globally. This time there was a bit of a confusion around the tariffs and that led to volatility within the months of April and May. Now that we are almost into the third week of July, we are seeing the momentum come in on international trade..”
— Ravi Jakhar, Group Director
Conglomerate
Reliance Industries | Large Cap | Energy
Reliance Industries Limited (RIL) is India's largest private sector company with operations in hydrocarbon exploration, petroleum refining, petrochemicals, renewables, retail, and digital services. Its diversified product portfolio includes petroleum products, polyester, plastics, chemicals, synthetic textiles, and fabrics.
Management makes a pointed claim that RIL’s New Energy vertical is reaching a strategic inflection point, with multi-decade growth potential, through scale and vertical integration unmatched outside China.
“I do not think it has been attempted in any other place in terms of building the giga factories... It is not about giga factories, it is the integration with Kutch, where we have access to 700,000 acres of land, which means that technically you are in a position to have 125 gigawatts of production."
— V Srikanth, CFO
The readiness and scalability of the homegrown OSS/BSS and the pioneering of UBR at scale, plus a substantial patent portfolio in 6G, signal future revenue opportunities beyond Indian connectivity—possibly global licensing and B2B/IP streams.
OSS - Manages the network-facing and technical side of operations
BSS - Manages the customer-facing and commercial side of telecom operations:
UBR- A wireless technology that uses unlicensed spectrum bands (like Wi-Fi frequencies) to transmit data without needing fiber or licensed telecom spectrum.
"The OSS, BSS that we deployed is completely now in-house, and it is ready to be deployed in other places... We are the first to deploy UBR for UBR-based connectivity at scale. This is a technology that operators worldwide have tried to work on and have not had much success. We have now demonstrated this on the ground with several million homes connected..."
— Anshuman Thakur, Head of Strategy
This subtle but concrete datapoint reveals a structural shift in Indian consumer behavior towards e-grocery, with greater order frequency and deeper basket penetration, led by fresh segments. It suggests that Reliance’s omnichannel investments are working and that retention metrics are strengthening.
"Our number of orders which include FNV (fruits & vegetables) is a key metric that we measure. 21% of the orders now had FNV compared to 9% six months ago. So, there is a lot of stickiness which is coming in, a lot of repeat behavior which is coming in, which is driving traffic onto the platform."
— Dinesh Taluja , CFO, Reliance Retail
Amid market obsession with startup quick commerce models, Reliance’s answer reveals a hidden but pivotal competitive edge: it will flex its pan-India physical store network as the default fulfillment backbone, deploying dark stores only as a targeted supplement, not a core.
“See, we are already building dark stores. Now the logic of dark stores is not that if I have an existing store, if it is within the right radius, you can meet that SLA,(delivery time) right. A lot of our orders actually get delivered within 10 to 15 minutes. 30 minutes is the outer limit...So the dark stores will come. Our own stores will continue to be the backbone of our model and dark stores will basically supplement the model and help me fill the gaps. That is the strategy that we are following.”
— Dinesh Taluja , CFO, Reliance Retail
Potential windfalls may accrue to refining, while the nimble trading and portfolio mix reduce downside vs. global competitors tethered to more rigid supply chains.
"If there were to be a loss of distillate for Europe, one would expect that the cracks would significantly rise. Actually, that may be disproportionately higher is the experience of what it suggests."
— Srinivas Tuttagunta, COO, Refining & Marketing
Detailing cost savings from in-house stack and opening the door to a new B2B/IP revenue stream materially differentiates Jio’s margin expansion potential from peers. It also teases a new SOTP leg for valuation: global technology licensing.
“So, on the cost side that is a big advantage. ... This kind of tech stack and we are increasingly getting that confidence with our conversations with global operators. They all want to use this. ... So, several advantages and we are seeing that. ... On the margin front, again, we have the cost completely in our control."
— Anshuman Thakur, Head of Strategy
Consumer
Heritage Foods | Small Cap | FMCG
The Heritage Foods Limited was founded by Mr. Nara Chandrababu Naidu in the year 1992, which is one of the fastest growing Public Listed Companies in India, with two business divisions - Dairy and Renewable Energy.
This acquisition with Novandie Foods demonstrates a clear move beyond the core liquid milk business, suggesting a more FMCG-like (Fast-Moving Consumer Goods) orientation and reducing seasonality risk.
"An additional 44% stake was acquired in Heritage Novandie Foods Private Limited, increasing the holding of Heritage Foods to 94.4% and ensuring strategic control of the yogurt supply chain. The upcoming greenfield ice cream facility expected to be operational by the end of calendar year '25 is set to unlock new product and market opportunities for us."
— M Sambasiva Rao, Director
Heritage maintains a premium pricing strategy versus cooperatives, with co-op price hikes being reactive to Heritage's earlier moves, yet paused H1 price realization to avoid volume loss due to bad weather.
"Our brands are priced at a premium compared to all cooperatives. In many cases, cooperative pricing is a catch-up on the pricing that we have done. Their hikes in March and April were a catch-up to...our increases in December and January."
“We did not do another increase in Q1 due to sales pressure from very inclement weather...Business had bounced back in June, with overall business growth rebounding to 15.1% revenue in the month and value-added products growing at 11%."
— M Sambasiva Rao, Director
Management reframes the business’s mission—explicitly aiming to pivot toward FMCG margins and valuation multiples, and to hardwire premiumization, sustainability, and non-dairy nutrition into its targets.
“Vision 2030 is to be the most admired dairy nutrition company. Primary parameter is revenue growth...intention to keep double-digit growth over the next many years, mid-teens near/short term...ambitions to improve farmer income, drawn out consumer and Net Promoter Score metrics...ambitious targets for environment and sustainability..."
"Margins and shareholder wealth are a primary focus...scaling value-added products and shifting toward branded consumer business resembling more FMCG. Transitioning margin potential in that direction. Too early to communicate any number."
— M Sambasiva Rao, Director
Specifically addresses investor concern about raw material inflation and working capital—current visibility points to only marginal short-term upward pressure.
"We are quite diversified in procurement. August/September typically lean across Maharashtra, Andhra, Telangana (buffalo milk), North (4-5%). At this time, milk supply looks good, temporary small inflation possible, INR0.50-1 only, ideally normalized by October/November. Nothing much to read into this."
— M Sambasiva Rao, Director
Proactive portfolio adaptation for emerging trends (lactose-free, functional health), with most R&D spend directed at new launches meant to reduce seasonality dependence and capitalize on niche wellness trends.
“Lactose tolerance point is debatable; most VAP (curd, buttermilk, paneer) are reduced lactose. Working on innovations, including reduced/zero lactose."
No other private player has diversified. Wide drinkables (buttermilk, lassi, flavored milk), whey drink GlucoShakti. Capex INR220 crores for new ice cream facility coming end-2025—currently fully utilized. Small sweet category presence as well (Doodhpeda, Millet Ladoo, Gulab Jamun). Investing proportionately in every line to deseasonalize business."
— M Sambasiva Rao, Director
Dixon Technologies | Mid Cap | Consumer Durables
Dixon Technologies (India) Limited is a leading design-focused company in India, specializing in manufacturing consumer durables, lighting, and mobile phones.
Management’s explicit guidance of 40–45% revenue growth is highly bullish relative to industry norms and signals a robust order book.
“we feel confident that at least a 40–45% kind of a growth is definitely doable. ... Growth can be marginally lower or higher, but 40–45% is something we are targeting for this financial year."
— Saurabh Gupta, CFO
The firm's over-dependence on mobiles is clear, but diversification into telecom, lighting, and white goods is in motion, with meaningful revenue/margin impact expected post-FY27.
“basic contribution still coming from mobiles ... the largest opportunity this year, followed by telecom."
On percentages: "Almost 80% will be mobiles, 75–80% ... telecom vertical for us ... will be closer to 10% of our revenues ... Our JV with Signify should be operational in the first week of August ... expect to get more product categories from Signify for the Philips brand”
— Saurabh Gupta, CFO
Substantial expansion remains conditional on government PLI guidelines and capex support. Management exhibits confidence but is effectively gating expansion on external approvals—key for forecasting capex and leverage.
"We are still waiting for ISM2 (India Semiconductor Mission 2) approval from the government ... tied up with HKC for display modules ... getting into a fab with them will be a natural extension, but we’ll wait for guidelines.”
“Total capex of $3 billion ... Dixon's outflow should be $500 million over 3 years ... can be funded from internal accruals ... can always take a little bit of debt, but large part funded internally ... this will add significant more to our business ... automotive displays is also something we will be getting into ... next couple of years."
— Saurabh Gupta, CFO
There is a major shift—suggesting Dixon is pivoting from import substitution to export-driven growth, capturing global supply chain realignment away from China and Vietnam.
"This year exports will ramp up significantly. Last year we were at 1,700 crores from 39,000 crores. This year, we hope to do exports of 7 to 9,000 crores. First quarter number is already 1,700 crores ... for an anchor customer to the US market ... for another partner, a large export order to Africa. If last year that number was 5% of our revenues, this year it could be 14–15%."
— Saurabh Gupta, CFO
Engineering & Capital Goods
KEI Industries | Mid Cap | Engineering and Capital Goods
Established in 1968, KEI Industries Limited is a leading manufacturer of cables and wires in India. They offer a wide range of products from housing wires to Extra High Voltage cables, and also provide EPC services for power and transmission projects.
This is a clear statement of strategic focus, signaling a long-term pivot away from a volatile EPC segment toward higher-value, more stable core operations (wires and cables).
“The EPC (Engineering,Procurement and Construction Goods)business we are consciously bringing down... We are not taking on new projects and our aim is to limit it to maximum 3 to 4% of our total sales… We have already reduced it to that level.”
— Anil Gupta, CMD
The actual competitive investment is much lower and will be absorbed by organic market growth and ongoing capex cycles in both private and government sectors.
“Secondly, whatever capex will come—maybe ₹8,000–₹10,000 crore in next 2–3 years. The market is also growing and I think there will be enough room...Our focus will remain on the domestic market as well as the export market. I continue to maintain my guidance that we want to take our export sales to 20% of total sales within the next two to three years as our new capacities come on board…”
— Anil Gupta, CMD
Growth is almost entirely export-driven, not domestic market share gains—suggesting core domestic growth is tracking the market, not outpacing it.
“Our export of wire and cables has grown by 122%... That is the reason we have outgrown the industry peers in our revenue.”
“In the domestic market...your market share will be more or less stagnant.” — “Yes.”
— Anil Gupta, CMD
Large, multi-year capex signals strong confidence in long-run demand—focused on scaling exports and extracting operational efficiencies.
“We expect to spend around ₹900–₹1,000 crore capex in our Sannath plant… may be for the increase in capacities or for some backward integration as well.”
“In exports the margins are slightly better... as we start our San plant we will have some improvement in the margins because of [lower] logistic costs...”
— Anil Gupta, CMD
That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!
Quotes in this newsletter were curated by Apeksh & Kashish.
Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.
Introducing “What the hell is happening?”
We've been thinking a lot about how to make sense of a world that feels increasingly unhinged - where everything seems to be happening at once and our usual frameworks for understanding reality feel completely inadequate. This week, we dove deep into three massive shifts reshaping our world, using what historian Adam Tooze calls "polycrisis" thinking to connect the dots.
Frames for a Fractured Reality - We're struggling to understand the present not from ignorance, but from poverty of frames - the mental shortcuts we use to make sense of chaos. Historian Adam Tooze's "polycrisis" concept captures our moment of multiple interlocking crises better than traditional analytical frameworks.
The Hidden Financial System - A $113 trillion FX swap market operates off-balance-sheet, creating systemic risks regulators barely understand. Currency hedging by global insurers has fundamentally changed how financial crises spread worldwide.
AI and Human Identity - We're facing humanity's most profound identity crisis as AI matches our cognitive abilities. Using "disruption by default" as a frame, we assume AI reshapes everything rather than living in denial about job displacement that's already happening.
The Chatter is run by the same team that creates The Daily Brief and Aftermarket Report.
Gr8 work..
Read The Chatter—,before investing,that breaks down the 13 commentaries across 6 industries with horses’ mouth words,to make well informed decisions!