The Chatter: Threads in the data
Edition #49
Welcome to the 49th 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 15 companies across 9 industries.
Auto Ancillary
Ola Electric Mobility
RACL Geartech
Bosch Limited
Engineering & Capital Goods
Elgi Equipments
John Cockerill India
Astral Limited
Building Materials
Kansai Nerolac Paints
Berger Paints India Limited
Software Services
Fractal Analytics
Telecom
Bharti Airtel Limited
FMCG
Avanti Feeds Limited
Patanjali Foods Limited
Retail
Lenskart Solutions Limited
Consumer Durables
LG Electronics India Limited
Chemicals
Rain Industries Limited
Auto Ancillary
Ola Electric Mobility | Small Cap | Auto Ancillary
Ola Electric Mobility is a company specializing in manufacturing electric vehicles and core components like battery packs, motors, and vehicle frames at the Ola Futurefactory.
[Concall]
While the company acknowledges and is actively improving its service challenges, which have impacted brand trust, cost improvements and operational changes have lowered the breakeven point, paving a faster path to profitability as sales recover.
“So the headline here is, yes, there’s a service challenge. We are fixing it. We are fixing it and it’s meaningfully improving. We do have some journey to cover and brand trust will take its time to recover. But as a result of our cost improvements and the structural operational model improvements, we’ve actually been able to create enough headroom and a lower breakeven point.”
— Bhavish Aggarwal, Chairman and Managing Director
Ola Electric boasts the largest customer base in the EV two-wheeler industry, with approximately 30% market share and 1.1 million existing customers who have historically provided positive referrals.
“Another important thing is, we have the largest customer base in the industry, given the fact that, you know, till date, whatever number of two - wheeler EVs have been sold, almost 30 percent are actually Ola vehicles. So 11 lakh customers use Ola, and they actually have always referred us well.”
— Bhavish Aggarwal, Chairman and Managing Director
Ola Electric is not concerned about its competitive positioning due to its built-in strengths, but rather focuses on improving service delivery to allow its superior product quality to drive sales recovery from current low levels.
“You know, we have done a lot of good things in this company. We have built a lot of strengths, which is not going to be easy for industry to catch up on. So, you know, our competitive positioning is not really of concern or a risk to us. Today, the numbers are low but that is because of the fundamental loop of delivering good service and, hence, letting the product shine.”
— Bhavish Aggarwal, Chairman and Managing Director
To trigger the next phase of EV growth, Ola Electric plans to increase education and marketing efforts to attract “follower” customers, addressing the “Crossing the Chasm” phenomenon in technology adoption and highlighting EV benefits like 90% lower operating costs.
“Eshan, see, firstly, like any technology adoption industry, and EV is a technology adoption industry, there is actually this notion very well established in the valley called the ‘Crossing the Chasm’ in terms of market adoption. I’m sure some of you analysts would have read the book there. So, basically what happens is, the early adopters adopt and then the followers need more education and more stability in terms of product experiences to adopt. It’s exactly what happened in the EV industry. We have been focused on penetration. The incumbent players don’t really focus on penetration, they focus on just having a product just to play in the industry. So, as we have in the last few quarters focused on our own operational view, focus of service, we’ve not communicated in a very meaningful way the benefits of EV to the customer. The reality is the benefits of EV are very strong. OpEx savings, 90% lower cost of operations and for the 2 - wheeler customer that matters in a meaningful way. So, this next level of a customer, which is a follower customer, needs more education and marketing of that. And you’ll see the company, you’ll see us do some meaningful steps in that direction very soon.”
— Bhavish Aggarwal, Chairman and Managing Director
The current 6 GWh installed Gigafactory capacity, yielding about 5 GWh effectively, can support approximately 1.2 million products annually, providing sufficient headroom for both the Shakti and Auto businesses.
“Yeah. Just as a rule of thumb, Arvind, 6 gigawatt hour installed capacity means, let’s say, practically you can get 5 out of it with the yields, etc. So, 5 gigawatt hour, if each product takes 3.5 - 4 kilowatt hour, that’s about 1.2 million products. So, between our Shakti business and our Auto business, that’s the headroom we have in our own gigafactory.”
— Bhavish Aggarwal, Chairman and Managing Director
Regional sales metrics show significant volume improvements (2-3x) in markets where service challenges have been deeply resolved, indicating the effectiveness of current initiatives.
“Sales numbers of our vehicle, you can track every week. I’m sure you guys do. So, we are seeing that goodness in regional sales metrics where we have solved service challenges more deeply. Like, for example, in the South, etc., maybe in some markets in the North, we see volumes have improved almost 2X - 3X in some markets wherever we have more meaningfully solved service challenges.”
— Bhavish Aggarwal, Chairman and Managing Director
Ola Electric’s products offer a real range to price index that is 50% higher than competitors, a key acknowledged benefit that should attract prospective customers once service-related brand concerns are resolved.
“Our real range to price index is almost 50 percent higher than competition. It’s a very meaningful benefit that our product has, which the customer acknowledges. Our existing customers definitely acknowledge it, but the prospective customers who are holding back due to the brand noise around service, once that goes away, they will also start acknowledging it.”
— Bhavish Aggarwal, Chairman and Managing Director
The Gigafactory is a crucial strategic asset providing future revenue optionality by feeding Ola’s auto business and tapping into the growing global energy storage market in India and worldwide.
“So this is something which we believe is going to be a very signific ant lever for strategic strength as well as optionality in revenue in the future. I’m sure everybody is following how globally the energy storage industry is also growing. And the Gigafactory for us is going to obviously feed our own auto business, but also really get revenue and growth into this energy storage opportunity, both in India and globally.”
— Bhavish Aggarwal, Chairman and Managing Director
RACL Geartech | Small Cap | Auto Ancillary
RACL Geartech Limited is a leading provider of automotive components in India and is a globally renowned enterprise. It is the auto part suppliers catering as Tier 1 to the biggest Original Equipment Manufacturers (OEMs) and major system manufacturers, who are functioning as Tier 1 manufacturer.
[Concall]
RACL Geartech aims for a revenue of 565 crores (+/- 5%) in FY26-27, representing approximately 17% growth over FY25-26.
“For the financial year 26-27, we are targeting a revenue plan of 565 crores plus minus 5%, which is growth of about 17% as compared of financial year 25-26.”
— Jitender Jain, Chief Financial Officer
The recent EU FTA is favorably positioning India as a prominent supply chain partner for European companies, particularly benefiting RACL due to existing European presence.
“The roots of growth are already started coming up, and yes, things are going, but the supply chain scenario, whatever is happening, it is in India’s favour, because first of all, this latest EU FTA, which has happened between India and European Union although FDA will be applicable after one year but this has actually brought India into limelight because in European Union okay all big brands bigger companies they were already knowing India very well but there were other brands other companies who did not have that cross country or intercontinental businesses, they have also started looking towards it.”
— Gursharan Singh, Chairman & Managing Director
The company maintains its historical 15-20% growth trajectory, noting potential for upside surprise if customer projections exceed current expectations.
“But as an indication, the company has grown 15 to 20% in the past. Now we of course, we maintain that because we are confident whatever indications we receive from our customers and as you correctly said, you know, certain things which were beyond our control like the KTM, those things are also shaping well now. So, if those things, whatever our customers are telling, if they perform better than what they have told us, then yes, we will be also equally surprised.”
— Gursharan Singh, Chairman & Managing Director
The new electric heat treatment plant will provide significant energy savings, stabilize costs by shifting from volatile LPG to electricity, and align with green manufacturing goals.
“This new setup which we are trying to bring in, this will be replaced to electric. Now electric will have its own advantages because as you know, gas . The pricing is governed by a lot of political and other factors. So, the LPG price is always very subjective to the inflations in the country and the world and the exchange rate as well, since most of this gas, as you know, it comes from outside. Electricity on the other side is a commodity which has remained constant for many years and you know, the India’s expansion in solar electricity prices will reduce in the coming years only. So, it helps us to save energy to make us green in terms of, you know, we don’t now depend on gas.”
— Prabh Mehar Singh, Chief Operating Officer
The new heat treatment plant represents a significant technological upgrade, enhancing capacity, component durability, and positioning it as one of India’s most advanced facilities.
“And to add what Prabh said over there, because it’s not only going to increase our capacity, it is also going to give us the latest, the latest technologies available in the field of teaching and as he has already explained to you, in gear making , heat treatment remains the core for deciding the strength of the or durability of the components, so rather , with this technology coming in, will be one of the most latest equipment plant available in India.”
— Gursharan Singh, Chairman & Managing Director
The company’s capital expenditures are strategically linked to confirmed new business or organic growth requirements, with the current CapEx being the lowest in three years.
“Whatever investments we make, we make only when we have business in hand or when the business is to start. So, we are not investing much, to be honest. This is the lowest Capex we have taken in the last three years.”
— Prabh Mehar Singh, Chief Operating Officer
RACL Geartech has diversified into a new product line, partnering with ZF to supply gearboxes for electric power steering systems in trucks for an American OEM, marking a first for this truck segment.
“We are very proud to share and announce that we have again further diversified into a new product line as you know. We started for a project with ZF Rane in electric power steering systems, but that was still recirculating ball technology and that was for pass cars. That was for pass cars segment. This one is going to the trucks. These are trucks which it is for ZF. ZF will sell to their end customer, which is an American company and this truck is right now being made with a normal hydraulic steering system. They have now decided to bring electric power steering system in the trucks for the first time.”
— Prabh Mehar Singh, Chief Operating Officer
RACL Geartech maintains a strong export-oriented business model, with 70% of its sales derived from international markets.
“Our segmentation sales segment, we have around 70% exports and 30% is the domestic business.”
— Jitender Jain, Chief Financial Officer
RACL Geartech’s established 16-year presence and five warehouses in Europe provide a significant competitive advantage when attracting new European customers, especially in the context of the new EU FTA.
“We are having an advantage that we already have a very, very strong presence in European Union. So, if I want to see competitive edge as compared to my other co-manufacturers from India, so we get that advantage because you know any European Union new customer, the y will first like to see Indian supplier who already has a presence in Europe, so there we have a competitive advantage because we don’t only not only we have the presence, we are operating 5 warehouses in Europe and w e are present in Europe now for today for the last 16 years, so that really gives us the upper hand.”
— Gursharan Singh, Chairman & Managing Director
Government export benefits, previously enjoyed by the company, have been reduced by 50%, which will negatively impact profitability starting next fiscal year.
“We had the benefit, and yes, the government of India has cut down by 50%, so yeah, so this will be hitting our next year, yes, because they are reduced 50%.”
— Prabh Mehar Singh, Chief Operating Officer
Bosch Limited | Large Cap | Auto Components
Bosch Limited is a leading supplier of technology and services in the areas of mobility solutions, industrial technology, and consumer goods in India. It is a key player in the automotive sector, specializing in diesel and gasoline fuel injection systems, aftermarket parts, and power tools.
[Concall]
The company expects record-breaking production across most major vehicle categories in the upcoming year. This indicates a strong revenue growth opportunity as Bosch supplies components to these expanding segments.
“Looking ahead to fiscal year 2026, we anticipate a period of steady and robust growth for Indian automotive industry... we expect 3 of the core segments, the Passenger Cars, Tractors and 2-Wheelers to achieve all-time high production levels.”
— Guruprasad Mudlapur, Managing Director and Chief Technology Officer
New environmental regulations have significantly boosted sales for the two-wheeler component division. This demonstrates how tightening emission standards act as a direct revenue driver for Bosch’s specialized technology.
“The 2-Wheeler business grew by 58.3%, mainly on account of higher sale of exhaust gas sensors due to ramp-up for OBD-II norms implementation from 1st April 2025.”
— Guruprasad Mudlapur, Managing Director and Chief Technology Officer
The company maintains a flexible capital expenditure strategy to quickly expand capacity as customer demand grows. This proactive approach ensures Bosch can capture market share during industry upcycles without supply bottlenecks.
“Golden rule within Bosch, we all the time have some buffer left. And as soon as we drive into the buffer, we release the next capex for extension.”
— Karin Gilges, Chief Financial Officer
Bosch is actively replacing imported components with locally manufactured ones to improve efficiency. Increased localization typically leads to better margins by reducing exposure to currency fluctuations and import duties.
“This year... we have localized NOx sensor component for the common rails. We are going ahead with more localization for the common rail products.”
— Karin Gilges, Chief Financial Officer
India is becoming an increasingly important export hub for the global Bosch network, particularly for spark plugs and pumps. This diversification reduces reliance on the domestic Indian market and improves capacity utilization.
“We have increased already our export volume for the spark plugs in 2025, and we expect also further good development of volumes... what we have relocated in the last, let’s say, 1.5 years was pumps from Japan to India.”
— Karin Gilges, Chief Financial Officer
The company has started accounting for future costs related to new labor laws, which slightly impacted current results. Despite these costs, management remains confident that localization and product mix will drive margin growth.
“We also did already the first provision for the New Labour Code. So therefore, product mix going forward, further localization... we see a good margin development.”
— Karin Gilges, Chief Financial Officer
Bosch is focusing its electric vehicle strategy on e-axles, which are high-value integrated drive systems. This strategy targets the most profitable part of the EV supply chain beyond the battery itself.
“From the portfolio of Bosch Limited, we will strongly aim to begin in e-axles and that would be the biggest component that comes into an electric vehicle.”
— Guruprasad Mudlapur, Managing Director and Chief Technology Officer
The company is deeply involved in developing hydrogen engine technology with all major Indian commercial vehicle manufacturers. While commercial rollout depends on infrastructure, Bosch is positioning itself as the primary technology partner for future clean fuels.
“On the hydrogen activity, we are working very closely with virtually every commercial vehicle and bus OEM in India... all OEMs are working towards readiness of hydrogen vehicles from their side.”
— Guruprasad Mudlapur, Managing Director and Chief Technology Officer
Management clarifies that new trade agreements will not stop their push for local manufacturing in India. Localizing production remains a core strategy to remain cost-competitive and responsive to local OEM needs.
“The Bosch approach with or without FTA has always been to have localized production wherever the demand is and our international production network always operates on that theme.”
— Guruprasad Mudlapur, Managing Director and Chief Technology Officer
Engineering & Capital Goods
Elgi Equipments | Small Cap | Engineering & Capital Goods
Elgi Equipments Limited is a global leader in manufacturing innovative and technologically advanced compressed air systems. They offer a wide range of products including rotary screw compressors, reciprocating compressors, centrifugal compressors, dryers, filters, and accessories.
[Concall]
The existing distributor-led growth strategy is plateauing, necessitating the development of new strategies to achieve higher growth trajectories.
“So, far our strategy has been getting more distributors... Now what has happened is that strategy is beginning to plateau... What got us here is not going to take us there. It will take us to some point of that. But we need something more.”
— Jairam Varadaraj, Managing Director
Aftermarket loyalty for genuine parts is stronger in Europe and America compared to India, where customers are more prone to using spurious parts.
“the aftermarket loyalty outside of India is higher. In India, there is a tendency to... go for spurious parts. Whereas in Europe and America, the loyalty to stay with genuine parts is little bit higher.”
— Jairam Varadaraj, Managing Director
Despite flat or low-growth markets in Europe and America, Elgi is gaining significant market share but acknowledges the need for new strategies to sustain and accelerate this growth.
“The European market is actually flat, and we are planning to grow 10% which means we are gaining share. The American market is expected to grow at 1.5% and we are growing at around 12%... we are gaining share... That’s our reality. We can’t cry about it but we need a different strategy.”
— Jairam Varadaraj, Managing Director
Elgi launched its patented Demand=Match system, which optimizes airflow for fixed-speed compressors to meet fluctuating demand, gaining positive market reception.
“Demand=Match system automatically adjusts itself to the demand and produces what is required. So, this product was launched into the market across all the kilowatt ranges and it was well received and we also applied for an international patent which is published now...”
— Venu Madhav, Executive President, Product Excellence and Innovation
The Demand=Match technology offers significant energy savings (6-17%) for fixed-speed compressors by intelligently varying airflow without a variable speed drive.
“Demand=Match is for the fixed speed... What this technology does is varies the flow to the customer without a VSD... The customer savings has been anywhere between 6% to 17%.”
— Jairam Varadaraj, Managing Director
The company has drastically reduced its import dependency for motors from 33% to just 5%, highlighting successful backward integration efforts.
“Today, I’m happy to share with you that that has now dropped down significantly to 5 percent.”
— Ramesh Ponnuswami, Executive President, Operations and EBS
Europe has achieved breakeven, and North America is profitable despite tariffs, enabling reinvestment into US go-to-market strategies.
“Europe... has actually helped us make Europe breakeven. North America is actually profitable if you take out the impact of tariff North America has registered profits this year, which is a very pleasing information for us because that gives us a lot more opportunity to reinvest that profit back into go-to-market initiatives in the US.”
— Indranil Sen, Chief Financial Officer
The company successfully mitigated tariff impacts by implementing swift price increases and accelerating cost reduction programs.
“we all were faced with tariff as a subject this year and we kind of successfully navigated that challenge through quick actions in terms of our ability to pass on some price increases to the market. We were also quite sharp in terms of our ability to accelerate our cost reduction programs”
— Indranil Sen, Chief Financial Officer
The Portables business faced profitability challenges due to Italian tariffs, prompting the company to initiate transformational projects.
“The Portables business has been a challenge, and this is primarily due to the tariffs from Italy... Now unlike our industrial business, we had fewer levers to address that during the year, but we have kicked off a couple of projects to be able to undertake some transformational measures to improve the profitability in the business.”
— Anvar Jay Varadaraj, Executive Director
Elgi has strategically shifted from a channel-only to a direct sales model in the Middle East to unlock further growth potential.
“Middle East, ...we first started off with a channel-only model and once we realized that the channel-only model could get us to x percentage of growth, we have now pivoted to direct sales”
— Anvar Jay Varadaraj, Executive Director
John Cockerill India | Small Cap | Engineering & Capital Goods
John Cockerill India Limited (formerly CMI FPE Limited) is into the business of customised design, engineering, manufacturing and installation of components of Cold Rolling Mill Complexes, Galvanising Lines, Colour Coating Lines, Tension Levelling Lines, Skin Pass Mills, Acid Regeneration Plants, Wet Flux Lines and Pickling Lines (the projects) for ferrous and non-ferrous industries world wide.
[Concall]
During the market outlook section of opening remarks, management commented on the US steel investment cycle.
“US is seeing a new wave of investment and large groups like Hyundai Steel, like US Steel are reviewing largely in a growth way their investment on the market to localize more their production.”
— Francois David Martino, Chairman, John Cockerill India Limited
In the opening remarks, management laid out their five growth engines. The fourth engine — global consolidation — specifically addressed the planned US acquisition.
“In 2026, this consolidation advances to its next major step: the proposed acquisition of the US-based group entity targeted for completion by December 31st, 2026. What does the US acquisition mean for JCIL’s growth potential? Access to North American engineering expertise and project management capability directly under the JCIL platform; participation in major North American steel industry projects like ArcelorMittal Calvert and others like it where JCIL’s technology is already deployed.”
— Francois David Martino, Chairman, John Cockerill India Limited
During the opening remarks, management outlined the global steel landscape and China’s position within it.
“China, despite the headwinds, is expecting to invest as well because a lot of steel mills need to differentiate themselves from competition and they need to offer high-added value products to the market.”
— Francois David Martino, Chairman, John Cockerill India Limited
An analyst asked about meetings with Shagang Steel in China and whether there’s positive news on JVD or Volteron technologies.
“The Chinese market is highly interested in cutting-edge technologies and we had meetings with Shandong Steel but many other groups to discuss JVD and Volteron as well. What I can tell you is that cautiously but realistically we expect that China will represent in 2026 a very strong field in terms of order entry for new technologies. So in order to really accompany our Chinese customers in the future, we have decided to open in Shanghai a new office which will be inaugurated next week... Our Chinese entity has been successful on the local market but also on the international market, signing contract with Chinese companies like Yongfeng, but also signing a large contract with a Kazakhstan company Qarmet. These projects will be executed out of China.”
— Francois David Martino, Chairman, John Cockerill India Limited
JCIL is actively developing a partnership with SAIL, formalized through an MoU, to revamp and upgrade SAIL’s downstream steel processing lines in India.
“Yes, we have been moving significantly with some of our strong partners in India. As you may know, we have signed a memorandum of understanding with SAIL on the Indian market to support them to revamp and upgrade their downstream processing lines. We are in the middle of the development of this partnership.”
— Francois David Martino, Chairman
The company aims for double-digit profitability within five years, expecting a significant increase in absolute profit value for the newly consolidated entity.
“Yes. We are aiming for double-digit profit in over five years. And for sure for the consolidated new entity, we are looking for increase in absolute value. There we will see a big difference.”
— Francois David Martino, Chairman
The consolidation grants JCIL direct access to advanced upstream and downstream technologies, including Jet Vapor Deposition and electric arc furnaces, enhancing its offerings and financial impact from new technology streams.
“The consolidation of the entities is supporting John Cockerill India Limited to have direct access to technologies which the entity was enjoying in a collaboration way with the other entities of the group, but also has access to new technologies. And these technologies are from the upstream side as well as downstream. In downstream, jet vapor deposition, which is a technology which was contained in the external entity in Belgium, will have full effect on the order book and the financials of John Cockerill India Limited onwards.”
— Francois David Martino, Chairman
John Cockerill India Limited holds an estimated 15-20% market share in India’s downstream steel capex, positioning it as a trusted value-for-money solution provider due to recent successes with major clients.
“Yes, and we are extremely proud of our market share currently in India, which I would estimate being between 15% to 20% market share in the downstream area. Our company is recognized as one of the best value for money solution provider in India.”
— Francois David Martino, Chairman
JCIL’s project for JSW JFE Electrical Steel signifies its entry into the high-growth, high-tech electrical steel segment (CRGO), contributing to the localization of a previously import-dominated market in India.
“Electrical steel processing: our project for JSW JFE Electrical Steel, Nashik, marks our entry into a high-growth, high-technology segment, CRGO steel for transformers, a market previously dominated by imports and now being localized in India for the first time.”
— Francois David Martino, Chairman
The restructuring establishes Europe and USA as technology competence centers and India and China as manufacturing hubs, aiming for operational consolidation, efficiency, and faster decision-making.
“Europe and USA will primarily be the center of technology competence, whereas India and China will function as the manufacturing hub, which will lead to consolidated operations, consolidated results in removal of duplication, clarifying accountability, and accelerating decision-making.”
— Francois David Martino, Chairman
Astral Limited | Mid Cap | Engineering & Capital Goods
Astral Limited is a leading Indian manufacturer of specialized plumbing and drainage systems, pioneering the use of CPVC pipes in the domestic market. The company has expanded its portfolio to include adhesives, bathware, and paints, transforming into a comprehensive building materials provider.
[Concall]
After a period of heavy investment in new plants and products, the company is shifting its focus to increasing production and generating cash. Investors should expect better asset utilization and higher free cash flows as these investments begin to pay off.
“As you are aware that Astral has spent Rs. 1,400 crores in CAPEX in last 4 years through all the verticals. And now it is the time to utilize the same and generate the cash flow from all these expansions.”
— Mr. Sandeep Engineer, Chairman and Managing Director
The new CPVC resin plant is on track to begin commercial production by the final quarter of the next financial year. This backward integration will reduce dependency on imported raw materials and likely boost overall profit margins.
“Complete machinery orders have been placed and we are expecting to have trial runs by this Diwali around the Q3 of the next fiscal and by Q4 of next fiscal, the plant will be operational. So we are going as scheduled in our new project of CPVC.”
— Mr. Sandeep Engineer, Chairman and Managing Director
Securing a prestigious German quality certification opens doors for the company to supply gas and water projects globally. This expands the potential market size for their specialized industrial fittings beyond the domestic Indian market.
“I am happy to let all of you know that recently, we have got a DVGW certification from Germany for all our Electrofusion product range. This certification is very important to not only sell product in India with certain projects, but also a global trust has been established which will help us to export this product line.”
— Mr. Sandeep Engineer, Chairman and Managing Director
The Bathware segment has reached a financial break-even point and is no longer a drag on company profits. It is expected to become a positive contributor to the company’s total earnings starting next year.
“Bathware is clubbed with the pipe business... it is very difficult for us to segregate the EBITDA level in the Bathware category. But largely we are not losing much money in the Bathware business. It is at a break-even point. So from next year onward, it will start contributing to the EBITDA level.”
— Mr. Kairav Engineer, Executive Director
The primary goal of the new CPVC resin facility is to use the cost savings to aggressively capture more of the market. This strategy prioritizes long-term market dominance over maximizing immediate profit margins in that specific unit.
“Our strategic aim is to make this backward integration and gain market share. So we will also have our eyes on gaining higher market share in the CPVC vertical in the coming years.”
— Mr. Kairav Engineer, Executive Director
The management emphasizes that unlike competitors, they are growing without discounting prices or sacrificing their profit margins. This demonstrates strong brand power and pricing discipline in a competitive landscape.
“We are giving growth, but at the same time we are giving the best margins. That is very important. People have sacrificed use on margin, but not substantial growth has been given.”
— Mr. Sandeep Engineer, Chairman and Managing Director
Building Materials
Kansai Nerolac Paints | Small Cap | Building Materials
Kansai Nerolac Paints Limited (KNPL) is a leading player in the Indian Paint industry, offering innovative coating solutions.The company’s product line caters to both Decorative and Industrial segments, aligning with the changing needs of its customer base.
[Concall]
The competitive intensity in the paint industry has stabilized, indicating a potential easing of market pressure despite remaining strong.
“As far as the competition forecast is concerned, the competitive intensity in the short term will remain strong. However, the pace at which it was increasing is not happening now. In that sense, the competitive intensity remains elevated, but it has now stabilized and is not increasing further.”
— Pravin Chaudhari, CEO
The overall paint industry is growing, but listed companies show lower reported growth due to smaller, new entrants capturing a market share.
“In terms of growth rates, the paint industry as a whole is growing. However, a part of that growth is being captured by smaller players who have recently entered the market, and that is why we see listed companies reporting slightly lower growth rates. That does not mean the paint industry itself is not growing.”
— Pravin Chaudhari, CEO
The industrial coatings segment has high barriers to entry due to the need for a complex value chain, advanced technology, and performance-driven sales, making it challenging for new competitors.
“However, in industrial coatings, success is not only about having a ready-made business. It also requires a complete supply chain and value chain setup, strong technology offerings for customers, continuous line support, constant market presence, and proven global track records, but all of this takes time. This is not a business that can be entered easily, as it is performance-driven rather than purely price-driven.”
— Pravin Chaudhari, CEO
The construction chemicals sector presents significant growth potential, with current low penetration suggesting a large untapped market.
“Construction Chemicals is a growing area. A survey indicates that only three out of ten homes, institutions, or buildings currently use construction chemicals, which implies nearly three times growth potential.”
— Pravin Chaudhari, CEO
The company has acquired Nerofix and Perma to enhance its product range and technological capabilities in the expanding construction chemicals segment.
“In this space, we have made two acquisitions: one is Nerofix, and the other is Perma. Both have an excellent range of construction chemical products and technologies.”
— Pravin Chaudhari, CEO
Indian automotive manufacturers are projected to double their production capacity by 2030, signaling robust long-term demand for automotive paints.
“Another supporting factor is that automotive companies in India are investing heavily in capacity expansion. In fact, based on our projections, they are expected to double their production capacity by 2030.”
— Pravin Chaudhari, CEO
The rising popularity of larger vehicles like SUVs will increase paintable surface area per vehicle, potentially leading to higher automotive paint sales growth for the company than overall auto production.
“Today, however, SUVs and larger vehicles, including five- and seven-seaters, are increasingly popular. As a result, the share of larger vehicles in our customersʼ sales mix is increasing, which means there is a larger paintable surface area per vehicle. Therefore, I would not be surprised if our growth is slightly higher than overall automotive production growth.”
— Pravin Chaudhari, CEO
The company’s core strategy involves premiumization and targeting higher-value, more profitable market segments across all its businesses.
“For multinational players like us, the strategy is focused on premiumization — moving up the value chain, offering more to customers, and targeting higher-value and more profitable segments.”
— Pravin Chaudhari, CEO
The company is confident that new competition will not pose a significant threat to its leading position in the industrial segment for a considerable period.
“However, in the industrial segment, we remain confident that it will take a long time before competition poses a serious threat to our position.”
— Pravin Chaudhari, CEO
The company’s over 50% industrial business mix significantly differentiates its gross margins from other Indian paint companies, which typically have a higher decorative share.
“As far as our overall mix is concerned, we are now more than 50% industrial and about 45% to 50% decorative. That is why you will find our gross margin to be quite different and not directly comparable to other Indian businesses.”
— Pravin Chaudhari, CEO
The perception of industrial business as low-margin is outdated, as current margins are healthy and expected to improve, challenging past industry narratives.
“As far as industrial margin is concerned, that was the story in the past. While we cannot disclose segment information because of the nature of the business, I think it is quite healthy now. And as we move forward, I think you will see the real picture emerging, maybe over some time.”
— Pravin Chaudhari, CEO
The current localized, town-level decorative strategy is a temporary 2-3 year approach, after which the company plans to revert to a pan-India strategy once competitive intensity normalizes.
“I would say this is probably a 2-3 year strategy. I donʼt think we will take this approach beyond that. Once competition settles, I think it will again become pan-India, similar to what we were doing a couple of years back.”
— Pravin Chaudhari, CEO
The liquid coatings segment presents a significant growth opportunity, heavily driven by substantial government infrastructure spending.
“The second part is the liquid segment, where the bulk of our focus currently lies. This presents a very big opportunity for us, given the huge spending by the government on infrastructure, which has a direct correlation with increased paint consumption.”
— Pravin Chaudhari, CEO
The company asserts a dominant market share exceeding 50% in the overall automotive paint sector.
“Overall, I would say we are at 50% plus as far as auto is concerned. From there, you can do some arithmetic to arrive at a reasonable estimate.”
— Pravin Chaudhari, CEO
Berger Paints India Limited | Mid Cap | Building Materials
Berger Paints India Limited is the second-largest paint manufacturer in India, providing a wide array of decorative and industrial coating solutions. The company operates an extensive distribution network and holds significant market share in the protective and automotive coating segments.
[Concall]
The company continues to aggressively expand its retail reach by placing more tinting machines in stores. A larger machine base is a leading indicator for future market share gains in the decorative segment.
“The dealer network expansion continued during the quarter. Driven by installation of 2,500 plus color bank machines.”
— Abhijit Roy, Managing Director and CEO
The company successfully challenged anti-dumping duties on a key raw material, leading to a refund and lower current costs. This legal victory is a direct tailwind for maintaining high gross margins.
“The court has given a judgment that, you know, it needs to be given back... As of now, there is no anti-dumping duty on titanium dioxide.”
— Abhijit Roy, Managing Director and CEO
The company is committing nearly 2,000 crore to build two new manufacturing plants to meet long-term demand. This shows management’s high conviction in the structural growth of the Indian paint market.
“We believe that things are going to change. As of now, we have plans for two factories... Both of which together is an investment of about 1,800 to 2,000 crore.”
— Abhijit Roy, Managing Director and CEO
Management admitted that high pricing slowed their growth in the protective coatings segment and plans to adjust prices to regain volume. This tactical shift should help the company defend its leadership in the industrial space.
“Our prices are slightly on the higher side, I think. You know, we will have to adjust a little bit, and the growth rates can be restored.”
— Abhijit Roy, Managing Director and CEO
A recovery is expected in the industrial paint segment, supported by new production capacity. Diversified revenue streams from the industrial sector provide a hedge against decorative paint volatility.
“Automotive will start picking up, and at the same time, we expect protective and general industries also to pick up soon.”
— Abhijit Roy, Managing Director and CEO
Software Services
Fractal Analytics | Small Cap | Software Services
Fractal Analytics is the leading provider of advanced analytics that helps companies leverage data-driven insights for informed decisions. Its analytics solutions enhance profitability by powering customer management with scientific decision-making. Founded in 2000, the company serves Fortune 500 clients globally in industries like CPG, healthcare, finance, retail, and insurance, using AI, machine learning, and domain expertise to optimize operations, predict behaviors, and drive growth.
[Concall]
Fractal Analytics emphasizes its long-term commitment to AI, public shareholders, and building an enduring institution after 26 years and a recent IPO.
“It has taken us 26 years of powering decisions with AI in enterprises to reach this milestone. And yet, it marks a deeper commitment to earning the trust of public shareholders, serving our clients with even greater impact, shaping the future of intelligence, and building an institution that will endure for the next 100 years.”
— Srikanth Velamakanni, Co-Founder and Group CEO
The company’s consistent investment of 6-8% of revenue in R&D is crucial for its ability to deliver impactful AI solutions to clients.
“Our ability to solve our clients’ most important problems originates from our consistent investment of 6-8% of revenue in R&D.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Fractal Analytics focuses on a select group of 127 “must-win” clients, aiming to deliver over $1 billion in impact to each, highlighting a high-value client strategy.
“As of December 31, 2025, we serve 127 must-win clients. Our strategic intent is to generate at least $1 billion of impact for each of our clients.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Fractal Analytics expects to maintain its historical 30% annual revenue growth rate, signaling confidence in future AI market expansion.
“Historically, we have grown at 30% year-over-year for the last 10 years, and even over the last 5 years, our CAGR has been 29%. We see an amazing opportunity to continue that historical growth rate.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Fractal Analytics achieved strong Q3 FY26 revenue growth of 21% year-over-year (14% constant currency) and 5% quarter-over-quarter.
“Our current quarter revenue grew by 21% year-over-year and 5% quarter-over-quarter to 8,544 crores. On a constant currency basis, growth was 14% year-over-year and 5% quarter-over-quarter.”
— Ashwath Bhat, Chief Financial Officer
As a pure-play AI vendor, Fractal’s perception and demand are increasing due to its best-in-class research and AI products, which are crucial for reimagining enterprise workflows.
“Fractal’s perception has actually accelerated because clients see our research outputs and AI products as best-in-class. Every business workflow can be reimagined with AI, which requires deep expertise and an understanding of enterprise landscapes. We hold a special place as a pure-play AI vendor.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Fractal Analytics plans to maintain and potentially increase R&D investments, viewing it as a continuous cycle where expanding margins are reinvested to strengthen future AI capabilities and market position.
“On R&D, we expect to continue and potentially expand these investments. In a field that changes weekly, R&D signals our capability to clients. We view this as a cycle: as we expand revenue and gross margins, we plow some of that margin back into AI R&D to build the company for the future.”
— Srikanth Velamakanni, Co-Founder and Group CEO
To address enterprise AI’s need for high accuracy beyond consumer-level tolerance for errors, Fractal implements “human-in-the-loop” systems to manage agent drift and ensure reliable performance.
“Regarding errors and drift, this is exactly why enterprise AI adoption is still early. While 40% hallucination might be okay for consumers, enterprises require accuracy that exceeds human performance. We build “human-in-the-loop” systems rather than 100% autonomous ones to handle drift.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Fractal Analytics maintains approximately two-thirds revenue visibility at the start of the year through its order book, renewals, and pipeline, relying on Net Revenue Retention (NRR) and new client growth as key indicators.
“We generally enter the year with about two-thirds visibility from our order book, renewals, and weighted pipeline. We don’t report TCV or order book specifically, but focusing on NRR and new client growth gives us high visibility.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Fractal Analytics mitigates competition from frontier models by partnering with them and building specialized ontological layers that redefine workflows, a task generic models struggle with independently.
“Regarding competition from frontier models, while they are ambitious, they realize they need partners to build on their generic capabilities. We build the ontological layers that reimagine workflows, which is challenging for generic models to do directly.”
— Srikanth Velamakanni, Co-Founder and Group CEO
Telecom
Bharti Airtel Limited | Large Cap | Telecom
Bharti Airtel is a leading global telecommunications provider with a massive footprint across Asia and Africa. The company offers a diverse range of services including mobile communications, high-speed broadband, enterprise solutions, and digital television.
[Concall]
Airtel is using its proven technology from India to improve its business operations in Africa. Sharing these resources allows the company to grow faster in the African continent without reinventing its systems.
“Our entire tech stack, has now been deployed into Africa. This is helping sharpen our go-to-market capability, the secret sauce of Airtel and leading to stepped up revenue growth in Africa.”
— Soumen Ray, Group Chief Financial Officer
Management plans to grow revenue per user by encouraging customers to upgrade their devices and plans since they aren’t raising general prices yet. This strategy allows for organic revenue growth without needing immediate regulatory or industry-wide price hikes.
“In the absence of tariff repair, we will continue to sweat ARPU growth leveraging feature phone to smartphone upgrades, prepaid to postpaid upgrades, data monetization, and our international roaming services.”
— Shashwat Sharma, Managing Director & CEO (Airtel India)
The company’s non-mobile digital services are growing very quickly and becoming a larger part of the business. Investors should watch these areas as they offer higher growth potential than traditional phone services.
“Our digital portfolio delivered robust revenue growth and grew 39% over last year. We continue to make strategic investments in our digital portfolio spanning across Cloud, Cyber Security, Financial Services, IoT and CPaaS.”
— Shashwat Sharma, Managing Director & CEO (Airtel India)
Airtel is moving beyond just testing artificial intelligence and is now using it across the entire business. This shift aims to improve how the company finds customers and runs its network more efficiently.
“We are now embedding AI at the center of everything we do, marking a clear shift from experimentation to scaled up and business wise deployment.”
— Shashwat Sharma, Managing Director & CEO (Airtel India)
Airtel plans to become a major player in the data center market by significantly increasing its power capacity. This is a strategic move to capture a quarter of the rapidly growing market for data storage and processing.
“Our sense is that, in the next three to four years, we will have about a gigawatt capacity, which will give us about 25% share, so we are committed to stepping up investments in Data Centers.”
— Gopal Vittal, Executive Vice Chairman
Management expects new laws will require data about Indian citizens to be stored locally within the country. This creates a new business opportunity for Airtel to provide ‘sovereign’ cloud services to government and local firms.
“We think the geopolitical implications that are playing out across the world will lead to more and more need for data to be hosted in India with the right jurisdiction. There is an opportunity for strong sovereign play here.”
— Gopal Vittal, Executive Vice Chairman
Airtel’s decision to buy more of its African subsidiary has paid off as the value of those operations has increased. The African market continues to offer high growth because of its young population and low internet penetration.
“Africa has been a phenomenal investment for us. I think the reason that we stepped up our investment in Airtel Africa is simply because we thought it was an undervalued asset.”
— Gopal Vittal, Executive Vice Chairman
Airtel prefers using physical fiber cables for home internet but will use wireless technologies where cables can’t go. Understanding this hierarchy helps investors see how the company prioritizes customer experience over cheaper rollout options.
“According to us, the gold standard is if you give fiber, because that gives you the most consistent delivery and lowest latency. There are two others. The next best is FWA, and the least best is UBR.”
— Soumen Ray, Group Chief Financial Officer
FMCG
Avanti Feeds Limited | Small Cap | FMCG
Avanti Feeds is a leading Indian aquaculture company specializing in the production of high-quality shrimp feed and the export of processed shrimp. The company maintains integrated operations including feed manufacturing plants and state-of-the-art shrimp processing facilities serving global markets.
[Concall]
A sharp rise in the cost of fishmeal, a key ingredient for shrimp feed, is significantly increasing production expenses. This indicates potential pressure on the feed division’s profitability if these costs cannot be passed on to farmers.
“Fishmeal prices increased to 117 per kg in Q3 FY26 from 98 per kg in Q2 FY26... Currently, spot prices are 145 per kg for fishmeal.”
— B Santhilatha, GM Finance and Accounts
The significant reduction in US import duties for Indian shrimp is a major regulatory tailwind for the processing business. Lower tariffs make Indian products more competitive and could lead to higher export volumes and better margins.
“the duty reversal of 25% has been removed, and the US has chosen to levy a 5% rate for certain products.”
— C Ramachandra Rao, Joint Managing Director
Upcoming trade agreements with the UK and EU are expected to lower trade barriers for Indian seafood exporters. These deals offer the company an opportunity to diversify its geographic revenue mix away from the US market.
“The UK deal is expected to be implemented in April, and the EU deal is expected either by the end of this fiscal year or the beginning of next year.”
— C Ramachandra Rao, Strategy
Patanjali Foods Limited | Mid Cap | FMCG
Patanjali Foods Limited is a leading Indian FMCG company specializing in edible oil processing and food product manufacturing. The company operates a diverse portfolio including branded oils, biscuits, staples, and nutraceuticals, alongside managing significant oil palm plantations.
[Concall]
Management is witnessing a widespread recovery in consumption across both rural and urban markets. This dual-market growth suggests a positive outlook for broad-based volume recovery in future quarters.
“The rural consumption continues to outperform urban demand for the seventh straight quarter. However, we are now seeing a robust rebound in the urban consumption as well.”
— Sanjeev Asthana, Chief Executive Officer
The edible oil segment is successfully transitioning from unbranded commodities to higher-margin branded products. Investors should value this shift as it typically leads to better brand loyalty and pricing power.
“Nearly 85% of total edible oil sales now come from branded edible oils, driven by strong marketing initiatives and impactful brand endorsements.”
— Sanjeev Asthana, Chief Executive Officer
A significant portion of the company’s oil palm plantation is entering its most productive lifecycle phase. This maturity profile suggests upcoming improvements in domestic sourcing costs and supply security.
“At the end of the calendar year, the area under cultivation stood at 1,08,000 hectares, with nearly 39% of plantation in prime yield years of 7 to 25 years.”
— Sanjeev Asthana, Chief Executive Officer
Southern and Northern India remain the company’s strongest geographic pillars, accounting for over 60% of total revenue. Investors should track growth in the East and West as key indicators of market penetration success.
“Zone-wise, mix 33% is contributed by South, the largest. If I were to look at the overall, North is 31%, East is 18%, Central is 9% and West is 9%.”
— Sanjeev Asthana, Chief Executive Officer
Patanjali is aggressively expanding its oil palm plantation footprint to reduce dependence on imported raw materials. This expansion is a key pillar of their long-term backward integration strategy.
“This year, our target is that we should do close to 40,000 additional hectares, which is a mix of 20,000 in the northeastern part of the country and 20,000 in the South India.”
— Sanjeev Asthana, Chief Executive Officer
Retail
Lenskart Solutions Limited | Mid Cap | Retail
Lenskart Solutions Limited is a leading omnichannel eyewear retailer that designs, manufactures, and distributes prescription glasses, sunglasses, and contact lenses. The company utilizes advanced AI and proprietary technology to provide eye testing services and personalized product recommendations across its vast global store network.
[Concall]
The company is aggressively expanding the eyewear market by conducting millions of eye tests, half of which are for new users. This massive influx of first-time testers acts as a primary funnel for future customer acquisition and revenue growth.
“This quarter, we conducted 6.3 million eye tests globally. A 11% increase quarter-on-quarter and a 54% increase year-on-year. In India alone, 5.5 million eye tests, up 60% year-on-year. And the number that matters the most, 49% of these were first-time eye exams.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
The company is using remote technology to provide eye exams in locations where physical optometrists are scarce. This tech-driven approach allows for rapid store scaling in tier-2 and tier-3 cities without human resource bottlenecks.
“Through our remote optometry platform, we have scaled from 168 stores in March to 369 stores today in India. And almost every new store we open, now opens with a remote optom attached to it. Our remote optometry tests have grown by 330% now (year-on-year).”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Management uses deep data science and satellite imagery to predict the success of a store before signing a lease. This precise location intelligence reduces the risk of failed store launches and optimizes capital allocation for retail expansion.
“We today are tracking mobility patterns, satellite imagery, every retail cluster, every delivery rider, every rent agreement and thousands of more data points... Allowing us to predict revenue of every latitude-longitude before we choose a new store location.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Lenskart’s international operations are more profitable than the India business was at a similar size due to higher product margins. These superior unit economics suggest that international markets could eventually become the company’s primary profit driver.
“International is tracking way ahead of where India was at the same stage. The margin acceleration comes from structurally higher product margins of 75.7% internationally versus 63.5% in India.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Lenskart is entering the wearable technology space with its own brand of smart glasses later this year. This move signals a transition from being a simple retailer to a technology company focused on AI-enabled hardware.
“B by Lenskart, our smart glasses, will have its soft launch in Q4 this year. We believe the future of consumer technology is in wearable intelligence. This shift from looking down at a screen to looking up into the world is bound to happen.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Growth in average selling price is being driven by higher sales of premium progressive lenses rather than simple price hikes. This shift toward high-value products improves overall margins and demonstrates successful customer premiumization.
“The ASP growth largely came at the back of more Progressive. We invested a lot in digitizing our Progressive eye testing because this was an area we were still working on. And so, we worked on that and that allowed more people to buy Progressive from us.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Management believes their massive physical retail network is a critical moat that tech giants like Meta cannot easily replicate for smart glasses. The need for physical fitting and prescription services makes Lenskart a gatekeeper for the smart eyewear category.
“We are uniquely positioned to distribute smart eyewear at scale, whether it is our own or someone else... Meta doesn’t have 3,000 stores where you can try, fit, get surveys, get a prescription.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
The company is using AI for high-level executive hiring to ensure talent quality while controlling employee costs. Scaling corporate functions through technology allows the company to maintain productivity as it expands globally.
“Every person we are hiring in the corporate today, the interviews are taken by AI, even at a CXO level. That has really improved the quality of hire. That’s your only large talent is going to be your biggest, largest expense.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Customers are buying eyewear more frequently, treating it as a fashion accessory rather than a utility. Increasing purchase frequency leads to higher lifetime value per customer and more predictable recurring revenue.
“Our own frequency has been growing year-on-year. We disclosed in DRHP our frequency over 2 years is 3.6 units of eyewear. And we only see this growing quarter-on-quarter.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
The company is expanding manufacturing into Thailand to reduce dependence on Chinese imports and take advantage of existing local ecosystems. Diversifying the supply chain protects the company from geopolitical risks and potential trade duties.
“Thailand just adds to it because it actually derisks our supply chain from China as we are building in India. Thailand has an existing ecosystem today of raw material suppliers or component suppliers.”
— Peyush Bansal, Co-Founder and Chief Executive Officer
Consumer Durables
LG Electronics India Limited | Large Cap | Consumer Durables
LG Electronics India is a leading manufacturer of home appliances and consumer electronics, maintaining dominant market shares in refrigerators, washing machines, and televisions. The company is strategically expanding its manufacturing footprint in India to serve both domestic demand and emerging export opportunities in the US and Europe.
[Concall]
The company plans to significantly increase its export revenue by targeting high-value markets in the West. This strategy leverages favorable trade agreements to improve overall profit margins and scale production.
“Finally, subject to external factors including market situation, we aim to double our export value by exporting premium products manufactured in India to the US and Europe, supported by the India-US tariff negotiations and the India-EU FTA negotiations.”
— Dongmyung Seo, Whole-Time Director & CFO
The new Sri City plant is on track to start producing specialized air conditioning units by the end of the fiscal year. Increasing local production of critical components like compressors will help reduce costs and improve supply chain control.
“Construction is progressing smoothly and we plan to begin production of combined heating and cooling air conditioners in the fourth quarter of this year, followed by compressor production in the next phase.”
— Soonjoo Seo, Investor Relations Officer
The company is diversifying its revenue streams by expanding into services and corporate sales. These high-margin business segments provide more stable recurring income compared to one-time hardware sales.
“Beyond our core B2C products, we are actively exploring new growth opportunities, including non-hardware regular maintenance services like the AMC business, as well as B2B opportunities in information displays and commercial air conditioners.”
— Soonjoo Seo, Investor Relations Officer
Lower government tax rates have made televisions more affordable for consumers, driving higher sales volumes. This regulatory change acts as a significant growth driver for the Home Entertainment segment.
“The GST rate rationalization announced earlier in September continued to provide a strong tailwind, particularly in the Television category.”
— Atul Khanna, Chief Accounting Officer
The company will use its own cash profits to pay for its massive 5,000 crore INR expansion project. This self-funding model avoids the need for expensive debt and demonstrates strong financial health.
“Importantly, the capex will be funded entirely through internal accruals, deployed in a phased manner over the next 4 to 5 years.”
— Atul Khanna, Chief Accounting Officer
Management is raising prices on air conditioners to reflect the higher costs of meeting new energy efficiency requirements. These price hikes are necessary to protect the company’s profit margins against rising manufacturing costs.
“So there would be almost 7 to 8% price increase on three-star Acs and we are increasing prices by 9 to 10% on five-star ACs we are increasing for the new BEE star-rated products.”
— Sanjay Chitkara, Co-Chief Sales & Marketing Officer
The company is increasingly buying parts within India rather than importing them from abroad. Higher localization reduces the risk of currency fluctuations and lowers overall production costs.
“Currently, the local panel sourcing contributes roughly 29% for us, while overall local TV module procurement has already exceeded 55%.”
— Sanjay Chitkara, Co-Chief Sales & Marketing Officer
Chemicals
Rain Industries Limited | Small Cap | Chemicals
Rain Industries is a leading global producer of carbon-based products, advanced materials, and cement. The company operates a vertically integrated business model across North America, Europe, and India, serving the aluminum, steel, and construction industries.
[Concall]
The battery industry is buying up raw materials without worrying about price, which is making it harder for traditional carbon companies to source cheap ingredients. Investors should watch this trend as it could permanently increase the company’s manufacturing costs.
“The rise of BAM as a consistent and price-insensitive buyer of low-to-medium sulphur, low-metals GPC grades has fundamentally shifted demand dynamics.”
— Jagan Reddy Nellore, Managing Director
Management is pausing a major factory expansion in India to save money while demand is currently weak. This cautious approach to spending helps preserve cash and avoids building capacity that the market isn’t ready for.
“Regarding our brownfield expansion in Telangana, we have chosen to slow the pace of development given prevailing subdued market conditions. No expenditure has been incurred until date and construction has not yet begun.”
— Jagan Reddy Nellore, Managing Director
A massive government construction project is expected to boost cement sales in South India starting next year. This provides a clear growth catalyst for the company’s cement division which has been struggling with slow demand.
“Importantly, the planned development of the Amaravati capital city project in Andhra Pradesh is expected to provide meaningful support to regional cement demand beginning in 2026.”
— Jagan Reddy Nellore, Managing Director
The company is moving beyond its traditional business to develop specialized materials for next-generation batteries. Success here could open up a high-growth revenue stream in the electric vehicle and energy storage markets.
“This project is aimed at integrating RAIN’s advanced materials and technologies into the development of sodium-ion battery materials with enhanced long-term stability and higher energy density.”
— Jagan Reddy Nellore, Managing Director
Rain is investing in technology to recycle graphite from old batteries, positioning itself in the green energy supply chain. This initiative addresses sustainability requirements and could reduce reliance on expensive new raw materials.
“Notably, USE-G will focus not only on fresh graphite but also on graphite recovered from spent lithium-ion batteries, supporting the shift towards a circular and more sustainable battery materials ecosystem.”
— Jagan Reddy Nellore, Managing Director
Recent changes in US trade policy and tariffs are expected to have a negligible impact on the company’s operations. This provides investors with some clarity and reduces fears regarding trade-war related disruptions.
“Most recently, the U.S. Supreme Court struck down all of the reciprocal tariffs announced last year, although the U.S. Administration has subsequently instated a minimum 10 percent tariff on materials coming in from all countries. We do not anticipate that these tariffs will materially affect our raw materials or finished goods.”
— Gerard Sweeney, President of RAIN Carbon Inc
High energy costs in Europe are making it difficult for the company’s local factories to compete with cheaper Asian imports. This remains a persistent risk to profitability for the Advanced Materials segment based in Europe.
“For our industry specifically, higher European gas prices continue to pressure operating margins for products manufactured within the region, especially when compared to imports from Asia.”
— Gerard Sweeney, President of RAIN Carbon Inc
That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!
Quotes in this newsletter were curated by Meher, Vignesh & 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.
We’re now on Reddit!
We love engaging with the perspectives of readers like you. So we asked ourselves - why not make a proper free-for-all forum where people can engage with us and each other? And what’s a better, nerdier place to do that than Reddit?
So, do join us on the subreddit, chat all things markets and finance, tell us what you like about our content and where we can improve! Here’s the link — alternatively, you can search r/marketsbyzerodha on Reddit.
See you there!
Have you checked out Points and Figures?
Points and Figures is our new way of cutting through the noise of corporate slideshows. Instead of drowning in 50-page investor decks, we pull out the charts and data points that actually matter—and explain what they really signal about a company’s growth, margins, risks, or future bets.
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.
We go through every major investor presentation so you don’t have to, surfacing the sharpest takeaways that reveal not just the story a company wants to tell, but the reality behind it.
You can check it out here.