Motilal Oswal Financial Services

2QFY26 | India Inc on Call

Voices | 2QFY26

Voices

BSE Sensex: 85,633

Tailwinds ahead: 2H commentaries turn optimistic

In this report, we present the detailed takeaways from our 2QFY26 conference calls with

various company managements as we refine the essence of India Inc.’s ‘VOICES’.



S&P CNX: 26,192



Corporate earnings

–

Global cyclicals outperform:

Corporate earnings for 2QFY26

concluded on a healthy note, with overall earnings growth driven by OMCs,

Telecom, Metals, Technology, NBFC - Lending, Cement, and Capital Goods.

Conversely, Oil & Gas (ex-OMCs), Automobiles (led by Tata Motors), and Banks

(Private and PSU) dragged overall profitability. The aggregate earnings of the

MOFSL Universe companies grew 12% YoY (vs. our est. of 9% YoY) in 2QFY26.

Excluding financials, earnings grew 18% YoY (vs. our est. of 16% YoY). Meanwhile,

excluding global commodities (i.e., Metals and O&G), the MOFSL Universe grew

6% YoY, in line with our estimate.

Most

banks

become optimistic about 2HFY26, supported by improving growth

trends, easing credit costs, and anticipated NIM expansion. Several banks

highlighted that growth in the unsecured portfolio should revive as stress levels

moderate. Collection efficiency is expected to improve, leading to better credit-

cost outcomes. Overall, the sector's outlook suggests improving momentum into

2HFY26, with banks anticipating a more stable and constructive operating

environment.

Within

NBFCs and HFCs,

management teams highlighted that lenders expressed

greater confidence in scaling their unsecured portfolios, supported by improving

borrower profiles and a more risk-calibrated approach. Asset quality trends

were mixed, with certain segments

–

such as CV, unsecured MSME, and micro-

LAP

–

continuing to exhibit stress, while others, including NBFC-MFIs and

personal loans, depicted relatively stable trends.

For

IT services,

management indicated that spending remains steady, with no

major changes likely through FY26. Clients continue to keep discretionary

budgets tight and are prioritizing vendor consolidation. Among Tier-1 firms,

HCLTech highlighted strong deal wins and subsequently raised its services

revenue guidance, positioning itself as the fastest-growing company among the

top four.

For the

Automobiles

sector, management indicated broad-based optimism across

automotive segments for 2HFY26, supported by GST rate cuts, improving

consumption trends, and strengthening festive demand. CV demand has picked

up meaningfully, with LCVs leading the recovery and MHCVs expected to improve

in the coming quarters as freight activity increases.

For the

Capital Goods

sector, management maintained a broadly positive

outlook, highlighting an anticipated revival in the domestic capex cycle, fueled

by demand for power generation, a steady industrial recovery, and healthy

momentum across railways, marine, and infrastructure.

For

Metals

in the ferrous segment, management expects net sales realization

(NSR) to remain steady or improve slightly, with coking coal costs likely rising by

USD 3–6/t in 3QFY26. Higher volumes from new capacities and an increasing

share of captive raw material are expected to support margins. In the non-ferrous

segment, the cost of production (CoP) is guided to remain stable, while favorable

pricing should lift margins in the coming quarters.

November 2025

Voices | 2QFY26



In the consumer staples sector, with trade stabilizing following the GST

reduction, companies anticipate a gradual pickup, supported by a steady rural

recovery and improving urban sentiment. A favorable winter is expected to

further boost demand for health supplements, winter personal care products,

beverages, and packaged foods.

For the

Healthcare

sector, management teams of pharma companies indicated

that the GST transition had a noticeable impact on domestic formulation sales

during the quarter. Distributors and retailers experienced inventory disruptions,

which weighed on their near-term revenue. Management expects a recovery

from October onwards, once channel stock levels normalize and regular trade

flows resume.

Autos



Management indicated broad-based optimism across automotive segments for

2HFY26, supported by GST rate cuts, improving consumption trends, and

strengthening festive demand. CV demand has picked up meaningfully, with LCVs

leading the recovery and MHCVs expected to improve in the coming quarters as

freight activity rises. Two-wheeler OEMs expect 6-8% growth in motorcycle

demand, while PV manufacturers foresee mid-single-digit industry growth in FY26.

Export performance remains mixed across OEMs. EV adoption continues to

accelerate across segments, especially in urban markets. Commodity costs are

expected to remain stable, resulting in generally stable margin expectations for

the near term.

Capital Goods



Management maintained a broadly positive outlook, highlighting an expected

revival in the domestic capex cycle, led by power generation demand, steady

industrial recovery, and healthy momentum across railways, marine, and

infrastructure. The inquiry and tender pipelines remain strong across T&D,

hydrocarbons, metals, utilities, sugar, defense, petrochemicals, oil & gas, and

green energy, supported by rising data-center cooling needs and expanding

clean-energy capacity. Export sentiment is mixed, with traction seen across

MENA and select global regionals, though for some companies, overall export

order build-up has been sluggish for few due to geopolitical uncertainty, with

some revival expected as tariff-delayed finalizations resume. Powergen market

demand has surprised, and going ahead, companies have indicated that growth

will be volume-driven as prices have more or less stabilized. For the Defense

sector, a few large-sized orders were booked during the quarter, and more are

expected to be finalized by the end of FY26. Companies have planned

meaningful capex over the near-to-medium term to expand capacity, backward

integrate, and upgrade manufacturing, while order inflows are expected to

strengthen in 2H as pending awards materialize. Overall, management sees

supportive domestic demand, private and government capex revival (though

both remain selective), and improved traction in export markets as key

tailwinds.

Cement



Many cement companies are experiencing a steady momentum, with demand

expected to grow 7–8% in FY26, supported by strong infrastructure activity,

favorable monsoons, and a healthy real estate cycle. However, margins may

remain under pressure in the near term

as Oct’25 brought softer demand and

weaker non-trade pricing. At the same time, full GST pass-through and capacity

November 2025

Voices | 2QFY26

expansion plans by leading players are keeping pricing disciplined, resulting in a

stable but competitive operating environment.

Chemicals



The sector outlook remains cautiously optimistic, with near-term growth

expected to be supported by resilient domestic demand, moderating input

costs, and upcoming capacity additions, while challenges such as Chinese

dumping, global oversupply, and geopolitical uncertainties may persist;

however, improving utilization levels and a healthy capex pipeline position the

industry for a gradual and sustained profitability recovery.

Consumer



In staples, with trade stabilizing after the GST reduction, companies are

expecting to see a gradual pickup, supported by a steady rural recovery and

improving urban sentiment. A favorable winter should further drive demand in

health supplements, winter personal care, beverages, and packaged foods.

Government measures to boost rural incomes are likely to strengthen

consumption from 3QFY26. Paints are also witnessing better traction, driven by

festive demand and stronger construction activity. In liquor, premiumization

continues to support healthy double-digit growth in spirits. The innerwear

segment is seeing a slow but steady recovery as channel inventory normalizes,

with the winter season expected to boost thermal and winterwear demand.

Consumer Durables



The C&W industry is witnessing a clear turnaround, with demand recovering

sharply in 2HFY26 after a weak first half marked by weather-related softness,

early monsoons, currency volatility, US tariffs, and a temporary pause following

the GST rate cut. As the new GST structure stabilized, sales rebounded quickly—

supported by festive and wedding-season demand—and companies are now

fully aligned with the upcoming Jan’26 energy-labeling

norms. Overall, the

industry is benefiting from strong infrastructure spending, rising formalization in

the electrical ecosystem, and a growing consumer shift toward branded, energy-

efficient products.

EMS



Most management teams have reaffirmed their revenue growth outlook, while

Avalon has further upgraded its guidance, underpinned by sustained demand

strength, timely project ramp-ups, scaling efficiencies from newly commissioned

capacities, and robust order book visibility into 2HFY26. The momentum is

expected to be reinforced by strategic global alliances, selective acquisitions,

and continued diversification across end markets. Concurrent investments in

capex, R&D, and backward integration are poised to drive structural margin

expansion and strengthen the companies’ competitive positioning over the long

term.

Financials

Banks



Management teams across most banks have turned optimistic about 2HFY26,

supported by improving growth trends, easing credit costs, and expected NIM

expansion. Many banks highlighted that unsecured portfolio growth should revive

November 2025

Voices | 2QFY26

as stress moderates. Collection efficiency is expected to improve, driving better

credit-cost outcomes.

Following a dip in 1Q, NIMs witnessed marginal improvement, aided by lower cost

of funds and stronger loan growth. Most banks expect further NIM expansion,

driven by continued CoF reduction and the benefit of CRR cuts.

Banks broadly indicated that asset-quality concerns are largely behind them, with

the outlook on unsecured portfolios improving and growth gradually returning.

PSBs reported stable asset-quality trends with no notable near-term stress. Select

banks such as Kotak remain cautious on retail CV exposures, where stress persists.

Overall, the sector's tone suggests improving momentum into 2HFY26, with banks

expecting a more stable and constructive operating environment.



NBFC



Within NBFC/HFC, various management teams highlighted the following:

Lenders expressed greater confidence in scaling their unsecured portfolios,

supported by improving borrower profiles and a more risk-calibrated approach.

Asset quality trends were mixed, with certain segments such as CV, unsecured

MSME, and micro-LAP continuing to exhibit stress, while others, including NBFC-

MFIs and personal loans, showed relatively stable trends. However, most

lenders expect a stronger recovery in asset quality in 2HFY26, driven by stronger

rural cash flows post monsoon, improving macros, and better collection

efficiency. With MFIs now exhibiting early recovery, we also expect micro-LAP

lenders to recover within the next six months. Any interest rate cut in

Dec’24/Mar’25

MPC meeting will be positive for fixed-lenders and only

marginally negative for large HFCs.

Capital Markets



Management witnessed a clear rebound in F&O participation, even as cash

market activity remained soft amid ongoing volatility. Exchanges and brokerages

are gradually normalizing after the regulatory-driven dip, and the broader

market structure is stabilizing well. On the asset-management front, mutual

fund flows should remain strong, supported by better performance, rising retail

engagement, and the continued resilience of SIPs. Within wealth management,

the structural momentum remains intact. Inflows are healthy, client

engagement is deepening, and the shift toward advisory-led, recurring revenue

streams is becoming more pronounced. This transition is steadily improving

visibility, stability, and the overall quality of earnings across the industry.

Insurance



Life Insurance APE growth softened after mid-teen

growth in Jul’25, as buyers

delayed purchases following the GST exemption announcement, resulting in

~9% YoY growth in 2QFY26. Higher non-par mix, increased sum assured, and

rising rider attachments supported broad-based VNB margin expansion.

Management teams expect further margin gains, driven by product mix shift,

GST-led higher sum assured, stronger rider penetration, and better persistency.

The GST-related loss of input tax credit led to <1% EV impact for all players, with

mitigation underway via commission renegotiation and efficiencies. The general

insurance industry growth in 2QFY26 remained soft, weighed down by the 1/n

regulation in health and some postponement of purchases post the GST-

exemption announcement, partly offset by a recovery in motor.

November 2025

Voices | 2QFY26

Healthcare



During the quarter, management teams of pharma companies indicated that the

GST transition had a noticeable impact on domestic formulations sales as

distributors and retailers experienced inventory disruptions, which weighed on

near-term revenues. Management expects a recovery from October onwards,

once channel stock levels normalize and normal trade flows resume.



Within the CDMO segment, management highlighted that while customer

interest and pipeline enquiries continue to rise, the conversion into meaningful

revenue is expected to be gradual. The company is steadily expanding its

technical capabilities, particularly in complex areas such as injectables and

peptides. Management also indicated plans to scale capacity across India and

select international locations to strengthen the long-term growth opportunity.



The ANDA approval momentum remained healthy in this quarter, with several

products continuing to progress through the pipeline. Management indicated

that price erosion had a minimal impact during the period, and the strategic

focus remains on complex therapies and specialty pharma to mitigate future

erosion and support gradual price improvement. Companies are leveraging a

mix of partnerships and targeted acquisitions to strengthen their portfolios and

sustain growth across Europe and other emerging markets.



Growth for hospitals was lower YoY, largely due to a higher base in prior

periods. Management remains constructive on long-term prospects and will

continue to expand capacity through a mix of greenfield and brownfield

projects, complemented by selective inorganic opportunities. Priority initiatives

include deeper penetration into Tier-2 and Tier-3 markets. Hospitals having

exposure in metro cities highlighted that they are diversifying revenue by going

international with medical-tourism inflows from multiple countries to mitigate

geopolitical concentration risk, and strengthening revenue streams through a

focus on high-end treatments.

Logistics



The logistics industry is navigating a mixed environment, with segment-wise

performance diverging through 2QFY26. Port volumes remained subdued with

stable margins, while rail logistics continued to deliver steady growth despite

realization pressures. Management

teams indicated that ‘Express’ and ‘PTL’

businesses experienced strong YoY volume expansion, driven by festive demand

and ongoing network integration, though margins reflected the impact of

integration and select contract dynamics. Supply chain services continued to

outperform with healthy double-digit growth, even as freight-led operations

faced some softness due to GST-related demand deferment and a few strategic

contract exits. However, we remain optimistic about a stronger 2HFY26 as

seasonal demand picks up and business traction continues to improve.

Metals



In the ferrous segment, management expects NSR to remain steady to slightly

better, with coking coal costs likely rising by USD 3–6/t in 3Q. Higher volumes

from new capacities and an increasing share of captive raw material are expected

to support margins. In the non-ferrous segment, CoP is guided to remain stable,

while favorable pricing should lift margins in the coming quarters. Overall,

companies delivered a healthy 2Q performance, with further improvement

anticipated in 2H, driven by stronger volumes, supportive prices, and stable costs.

November 2025

Voices | 2QFY26

While global uncertainties may pressure global metal and raw material prices,

management believes safeguard duties (ferrous) will protect domestic operations

from significant downside risks.

Oil & Gas



OMCs:

Management commentary indicates that the marketing segment should

remain resilient, with lower MS/HSD margins likely to be offset by reduced LPG

under-recoveries. CGDs: Companies remain optimistic about sustained growth

in CNG and D-PNG volumes, coupled with improvement in EBITDA/scm margins,

driven by tax and tariff reforms and lower input costs. However, GUJGA expects

Morbi volumes to remain weak in 3Q. GAIL: The company has lowered its

transmission volume guidance. ONGC & OINL: Both companies continue to

foresee strong production growth from KG-98 and NRL, albeit at levels below

their earlier estimates.

Real Estate



Developers remain optimistic about sustained demand in the coming years.

Average price realizations grew 10% in 2QFY26, with a similar trajectory

expected ahead. With approval processes gradually improving, the launch

pipeline for 2HFY26 looks stronger, while companies are also actively pursuing

land acquisitions to bolster their future development portfolio. Real estate

companies reported a 42% YoY surge in bookings during 2QFY26, driven largely

by major launches from Indirapuram, Westpark, and Dahlias by PEPL and DLF.

Retail



Retail:

Most retailers cited improvement in the demand environment, driven by

the early festive season. However, the improvement was partially offset by

prolonged monsoons, transitory impact from the GST implementation, and the

deferral of customers’ purchases in anticipation of GST rate cuts. Value fashion

retailers are focusing on aggressive store expansions to cater to improved

consumer sentiment in tier 2 and beyond towns, amid a shift from unorganized to

organized retail. Overall, management teams across our retail coverage remain

cautiously optimistic, with expectations of a demand recovery continuing through

the wedding season and the second half, driven by recent policy measures such as

GST rationalization, income tax cut, and lower interest rates.



Jewelry:

The jewelry companies witnessed healthy festive demand during Diwali

despite elevated gold prices, supported by an uptick in old gold exchange and

resilient consumer sentiment. Management commentary across players

indicates that the strong momentum is likely to sustain through the upcoming

wedding season, aided by steady footfalls and continued preference for

wedding-led purchases.



QSR:

Demand for out-of-home consumption remained soft in 2QFY26, reflecting

weak discretionary spending through the quarter. However, management

highlights visible green shoots emerging from October, with early signs of

recovery expected to sustain as consumer discretionary spending improves.

Margin recovery is likely to follow with a lag, driven by operating leverage as

demand strengthens through 2HFY26.

Technology



Management indicated that IT services spending remains steady, with no major

changes expected through FY26. Clients continue to keep discretionary budgets

tight and are prioritizing vendor consolidation. Among Tier-1 firms, HCLTech

highlighted strong deal wins and subsequently raised its services revenue

November 2025

Voices | 2QFY26

guidance, positioning itself as the fastest-growing among the top four. Infosys

reiterated the top end of its full-year guidance, signaling a gradual pace of

recovery, while TCS commentary pointed to a measured demand environment

through 2H.

Management commentary in BFSI remained relatively steady. However,

management highlighted pressures in manufacturing, retail, and healthcare due

to macro and trade headwinds. Several companies also indicated potential

pressure in 2HFY26 as wage hikes, furloughs, and large-deal ramp-ups take

effect.



Telecom



Overall, the quarter reflected steady operational momentum across the sector,

with 5G adoption accelerating, home broadband seeing strong traction, and

enterprise order books holding firm. Policy developments—particularly the AGR

reassessment ruling—have improved sentiment, even as telcos continue

engaging with the government for broader sectoral relief. Capex intensity

remains elevated in parts of the ecosystem due to network expansion, energy

efficiency initiatives, and data-center investments, though most players expect a

directional moderation through FY26.

Utilities



Management noted that India’s power sector has surpassed 500GW of installed

capacity, with non-fossil sources now making up half the mix. Renewable

additions remained strong in 1HFY26, while power demand grew modestly due

to weather effects, but still reflects healthy economic momentum. Progress is

being made on parallel distribution licenses, which may be taken up in the

upcoming Budget session. Wind energy companies expect installations to reach

~6GW by FY26 and 8GW by FY27. Supportive policy steps—including

MNRE’s

new SOP for ALMM inclusion and a GST cut on solar and wind equipment from

12% to 5%—are improving project viability and boosting renewable energy

competitiveness.

November 2025

AUTOMOBILE | Voices

Key takeaways from management commentary

AUTOMOBILES



Management indicated broad-based optimism across automotive segments for 2HFY26, supported by GST

rate cuts, improving consumption trends, and strengthening festive demand. CV demand has picked up

meaningfully, with LCVs leading the recovery and MHCVs expected to improve in the coming quarters as

freight activity rises. Two-wheeler OEMs expect 6-8% growth in motorcycle demand, while PV manufacturers

foresee mid-single-digit industry growth in FY26. Export performance remains mixed across OEMs. EV

adoption continues to accelerate across segments, especially in urban markets. Commodity costs are expected

to remain stable, resulting in generally stable margin expectations for the near term.

KEY HIGHLIGHTS FROM CONFERENCE CALL

Demand outlook

Other key takeaways from the call



Outlook:

Management highlighted a visible



The Saathi (LCV) model has been well accepted and

improvement in CV demand after the GST rate

now accounts for 22-25% of total LCV volumes.

cuts, with the domestic MHCV segment growing



Exports grew 45% in 2Q and 35% in 1H. AL aims to

5% in 2Q and LCVs expanding strongly by 13%. The

export 18k units in FY26E (15k in FY25) and sustain

momentum remained healthy in Oct as well, with

20% volume CAGR in the next 2-3 years in exports.

Ashok

MHCV sales up 7% YoY and LCVs up 15% YoY.



Switch India has now achieved EBITDA and PAT

Leyland



While LCV demand has already strengthened,

breakeven in 1HFY26, and AL has kept a target for

management expects MHCV demand to gradually

this business to be FCF positive by FY27. Switch

improve in the coming quarters, aided by a steady

India will look to participate in the upcoming 10k+

pickup in consumption and the resulting uptick in

bus order under the PM-e drive scheme, which will

freight movement.

open up soon.



Outlook:

After GST rate cuts, management



BJAUT’s focus areas include: 1) competitive growth

expects the motorcycle industry to post 6-8%

in the 125 cc plus segment; 2) targeting to sustain

growth in 2HFY26.

export growth at 15-20%; 3) regaining momentum



The company expects further commodity inflation

in the EV segment by unlocking supply chain

Bajaj Auto

in the coming quarters, though currency tailwinds

constraints; 4) focusing on reviving KTM.

should help offset the impact of the same. BJAUT



The export momentum is likely to continue in the

is currently producing at peak capacity in 3Ws,

coming quarters, backed by strong demand from

with further capacity being added to meet export

Latin American and Asian markets and stabilization

demand.

in regions like Africa.



After the GST rate hike in the >350cc segment, its

450cc is seeing much slower demand, while its



The company maintains its leadership in SAARC

650cc is showing initial signs of a pickup. Apart

markets, ranking No. 2 in key regions such as the

from the price hikes, the slowdown in these

UK, Argentina, Thailand, and Korea, and No. 3 in

models is also a function of the strong pre-buying

Brazil and Australia, and No. 4 in the EU.

that these models saw before the GST rate hike.



Other expenses were higher during 2Q due to

Eicher



The GST rate cut is expected to support demand

higher marketing spending for brand building,

Motors

by increasing consumption and facilitating the

community engagement, and market activations,

movement of goods across regions. The company

which are expected to continue going forward.

expects HCV demand to pick up in 2HFY26.



Outlook:

Management expects the industry to



HMCL achieved nearly 1m retail sales on Vahan in

post 8-10% growth in 2H. It expects pickup in

Oct’25, expanding its market share to 31.6% (+3.7%

demand to last for 2-3 years, as seen during

YoY). Management highlighted that demand has

similar excise rate cuts in the past.

remained buoyant even after the festive season.

Hero



Global business showcased one of its strongest



Market share gains in EVs were particularly strong

MotoCorp

performances in recent years, with dispatches

in urban and metro markets, with VIDA achieving a

growing 77% YoY, almost 3x the industry growth

20%+ market share in 49 towns, including in metros

rate. This momentum is expected to continue in

like Delhi and Mumbai. Further, HMCL is among the

the coming quarters as per management.

top 2 EV players in about 56 towns.



Domestic PV demand remains challenging but



From Navratri to Diwali, retail sales grew 23% for

HMIL expects to grow in line with the industry in

HMIL. Hatchback sales rose 16%, sedans grew 47%

Hyundai

the domestic market in 2H, aided by the launch of

and SUVs grew 21%. Within SUVs, Venue and Exter

new Venue and future product interventions.

outperformed with 28% growth. However, Venue

November 2025

AUTOMOBILE | Voices



Exports are likely to exceed its initial growth

guidance of 7-8% in FY26.



M&M



Auto: Management has maintained its mid- to

high-teen volume growth guidance for SUVs for

FY26.

Tractors: Management has increased its FY26

tractor growth guidance for the industry to 10-

12% from 6-7% earlier.

Demand outlook:

In 2HFY26 and beyond,

management expects the PV industry to grow by

6% YoY, while the small car segment is projected

to grow by 10% YoY (on a low base).

Exports:

MSIL expects to exceed its FY26 export

guidance of 400k units, having already exported

over 200k units in 1HFY26.

India CV: After GST reforms, demand has picked

up in LCVs. Given the uptick in consumption

trends, management expects demand to pick up

in MHCVs as well in the coming quarters. With

increased consumption, fleet utilization has

improved and freight rates have inched up,

thereby creating an overall positive sentiment.

Indian PV business has seen a marked revival in

demand after GST cuts, with wholesales up 10%

YoY. With positive sentiment in the market, TTMT

expects the PV industry to post double-digit

growth in 2H and mid-single digit growth in FY26.

Domestic: In the festive season, TVS posted 32%

YoY growth in retail volumes on a like-for-like

basis, outperforming the industry’s 24% growth.

TVSL is confident of sustaining its outperformance

going forward.

International: TVSL has successfully expanded its

footprint in Africa and LATAM. While its LATAM

presence is relatively smaller, it is outperforming

the industry. Moreover, TVSL remains confident of

sustaining its outperformance in the region in the

coming quarters. It also continues to witness

strong traction in its key Asian markets.

European demand remains weak but is showing

early signs of stabilization. Management expects a

gradual recovery in 2H.

Currently, no global exporters are exporting to the

US due to the sharp rise in tariffs. Most

distributors are consuming existing stock and are

adopting a wait-and-watch approach regarding

the tariff situation. Thus, a favorable outcome on

tariffs could prompt inventory restocking in the

US.

Management stated that 3Q performance is

expected to be similar to 2Q, with an uptick

expected in 4Q. The domestic CV business is likely



Maruti



growth was limited due to its upcoming new variant

launch scheduled for 4th Nov.

Pune plant commenced operations in Oct. Costs

may rise by ~20% in the near term until the plant

ramps up and operating leverage benefits kick-in.

MM’s

retail volume growth was in the mid-to high-

teens in the festive season, while booking growth

was even stronger.

Further, LCV demand seems to have revived after

the GST rate cuts. Management expects demand to

be sustained in 2HFY26, and hence, it expects the

industry to grow in the low double digits in FY26.

MSIL has seen strong bookings in the festive period.

Total bookings reached 500k units vs. 350k units

YoY. Outstanding bookings currently stand at ~200k

units.

Management reiterates its long-term objective of

achieving 50% market share in PVs. MSIL

earmarked eight new SUV launches by 2031 (exc.

Victoris), which will help MSIL move toward this

target.



Tata Motors



JLR: Management indicated that Q3 will also see

some impact of the cyber incident although

production has now normalized in November

(October production was just at 17k units). While

about 20k of lost production was in 2Q, the balance

is expected to be accounted in 3Q.



TVS Motor



TVSL is gaining strong traction in the 3W EV

segment, having already doubled its market share

to 11%.

Norton will unveil its first bike at the EICMA in

Milan, Italy, next week, with the India launch

scheduled for Apr’26.

The brand’s entry strategy for

India will be distinct from that of TVSL, reflecting a

more targeted approach for this premium brand. In

the European Union, Norton has already begun

laying the groundwork for its distribution plans.

The impact of the EUDR regulation has started

reflecting in 2Q and will be fully realized in 3Q.

However, management expects this to be offset by

the softening of commodity prices.

Capex for 1HFY26 stood at INR16.7b, mainly for the

new TBR/PCR tire project and carbon black capacity

expansion. FY26 capex is expected to be INR20-22b,

with the remaining ~INR35b three-year plan to be

incurred in subsequent years. Net debt currently

stands at INR4.5b.

The defense order book stands at INR94.7b. Apart

from this, BHFC has recently won an order to supply

carbines worth INR14b and another order from the



BIL



November 2025

AUTOMOBILE | Voices

to remain flat YoY in 2H. GST rate cuts augur well

for the domestic PV segment, which should see a

continued pickup in demand in 2H.

EU exports are weak currently, primarily due to

destocking. However, a recovery is expected in

the coming quarters. Management expects

exports to the US to decline in 2H. However, this

may be offset by a pickup in demand in segments

like domestic non-auto, exports to non-US regions

and ramp-up in defense and aerospace segments.

Navy worth INR2.5b+ for the supply of Unmanned

Marine Systems.

Management expects aerospace revenue to cross

INR3.5b in FY26, and BHFC expects this run rate to

continue for the next 3-4 years.



BHFC

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Standalone update



Demand outlook:

The company witnessed a 4% overall volume growth in 2Q.

Growth in truck and passenger car tyres remained in the low single digits,

whereas farm and two-wheeler segments saw stronger traction. Exports

delivered double-digit growth in 2Q, and the company expects exports to

continue this growth momentum in 2H as well.



October also witnessed strong momentum, and the company expects 3Q

revenue growth to be similar or better than 2Q. Overall, the company

anticipates volume growth to continue, supported by a strong export recovery

and balanced growth in both replacement and OEM channels, wherein

replacement is expected to record a mid-to-high single digit volume growth in

2H. Volumes would be supported by higher demand post GST rate cuts. On the

OEM side, management is seeing a pickup in demand from CV OEMs compared

to PV OEMs post the festive season.



2QFY26 marked the highest-ever Vredestein volumes, at 10,000 tyres per

month, within the company’s overall monthly production of 450,000–500,000

tyres. Vredestein will remain positioned as the super-premium brand, and the

company plans to secure more high-end fitments.



Revenue Mix:

Standalone revenue mix by product

–

TBR at 54%, PCR at 21%,

farm specialty tyres at 7%, LCV at 8%, and other specialty products at 9%. The

replacement segment is still a major contributor, making up ~65% of revenue,

followed by OEMs at 24% and export at 11%. India remains the primary focus,

contributing 66% of consolidated revenue, Europe follows at 27%, and other

geographies make up 7%.



Segmental trends and market share: According to APTY’s internal estimates, the

company holds a ~29% market share in TBR replacement and ~20% in PCR

replacement. Management has indicated that it has been able to arrest the

decline in the TBR market share that it experienced in 1Q.



OEM market share has been maintained. The company had earlier lost some

PCR OEM share due to consciously avoiding low-profitability programs but

remains firm that it will not resort to discounting to gain volumes going forward.



Competitive intensity in the industry remains similar, with the same few players

continuing to fight for market share.

Raw material update and margin outlook:



Raw materials were down 3% QoQ in 2Q.



2Q RM costs were as follows: Natural rubber

–

INR210/kg, synthetic rubber

–

INR175/kg, Carbon black

–

INR115/kg, Steel cord

–

INR155/kg.

November 2025

AUTOMOBILE | Voices

The company expects RM costs to remain slightly lower in 3Q as well, thus

supporting profitability.



Given the benign RM environment and improving mix towards replacement and

exports, the company expects profitability to improve in 3Q.

Europe business update



Demand:

The company continued to face demand-related challenges in the EU,

though conditions have improved compared with two quarters ago. Despite the



weak environment, management expects low single-digit growth to return as

markets gradually stabilize.



Europe revenue stood at EUR177m, with an EBITDA of EUR22m, translating into

a margin of 12.7%. While

margins remain below the company’s long-term

aspirations for the region, management believes that FY26 is a transition year,

positioning the EU business well for future performance.



Top-line growth in the EU was 4% (in EUR terms), driven entirely by volume

growth, as no price increases were taken in 2Q.



The UHP tyre mix improved to 49%, up from 46% YoY, reflecting a richer product

mix.



Enschede plant shutdown is scheduled to take place in FY27. This has led to an

exceptional restructuring charge of EUR17m in 2Q, primarily related to

employee settlements. The cash outflow associated with this payout will occur

in FY27. The total shutdown cost is EUR55m, with an expected payback period

of two years.

Other highlights



APTY is expanding its capacity for PCR Tyres in Hungary and Andhra Pradesh.

While the Hungary plant is expected to commence production by the start of

FY27, the Andhra plant will commence production only by the end of FY27.



Consol. net debt stood at INR26b, flat vs FY25, while net debt to equity stood at

0.8x.



India’s net debt stood at INR27b, flat vs Mar’25, while net debt/EBITDA stood at

1.1x.



There is no change from the previous capex guidance of INR15b, which includes

INR7b for maintenance and INR8b for expansion.



RoCE target remains at 15%.



Amara Raja Energy

Current Price INR 956

Click below for

Detailed Concall Transcript &

Results Update

Buy

Result highlights



ARENM’s revenue rose 8% YoY to INR33.9b, driven by robust OEM demand in

both 4W and 2W segments, healthy traction in industrial and lubes, and a strong

growth in the new energy business.



Revenue from the core lead-acid segment stood at INR32.97b, up 4.7% YoY,

supported by strong OEM demand across 4W and 2W segments (+30% YoY).

Aftermarket volumes remained stable (while 4W was flat, 2W grew 1-2% YoY)

due to temporary GST-related channel destocking, while industrial demand was

mixed with telecom volumes declining 35% YoY but UPS volumes growing

modestly at 5%.



The lubricants business crossed INR500m in quarterly revenue, showcasing

continued momentum.

November 2025

AUTOMOBILE | Voices

The new energy division reported a sharp rise in revenue to INR1.7b, driven by

strong traction in telecom lithium packs (150 MWh supplied) and continued

momentum in EV chargers, where the order book crossed 5,000 units. The

company has also begun commercial supplies of LFP-based 3W battery packs.



Export revenue remained muted due to tariff uncertainties and logistical

disruptions. The company expects a gradual recovery as global trade conditions

stabilize in 2HFY26.



Gross margins expanded sequentially in 2QFY26, aided by a favorable product

mix, lower antimony prices (down ~10%), and reduced trading of tubular

batteries as in-house production ramped up. However, elevated warranty and

EPR provisions partly offset these gains.



However, reported PAT grew 25.4% YoY on account of an exceptional gain of

INR1.2b as reimbursement for an insurance claim. Adjusted for one-offs, PAT

declined 12.1% YoY to INR2.1b

Auto demand outlook



Demand outlook: OEM volumes across both 4W and 2W grew ~30% YoY,

supported by strong festive season demand and pre-buying following GST

revisions. Management expects growth to normalize to industry levels in

subsequent quarters.



Replacement demand remained stable, impacted temporarily by channel

inventory corrections post-GST rate changes. Retailers are expected to resume

normal stocking in the coming quarters.



UPS volumes grew 5% YoY, while telecom lead-acid demand declined ~35%,

offset by higher lithium telecom pack sales. Combined, telecom and UPS make

up ~20% of the company’s total revenue base.



Export remained muted due to tariff challenges and weaker demands in some of

the markets. ARENM continues expanding its international footprint, with new

offices in Dubai, and the first Amaron pit stops launched in Qatar and Morocco.



Management reiterated confidence in sustaining high single-digit growth in the

lead-acid business and new energy business to contribute 7–8% of total revenue

by FY27.

Margin outlook



Management has indicated that rising lead price remains a concern in the near

term.



However, over the medium term, management guided for further margin

improvement as the tubular battery plant ramps up to full capacity in 3Q and

the battery recycling facility commences operations in 4QFY26.



The company aims to restore consolidated EBITDA margins at 13–14% over

time, driven by operational efficiencies, backward integration through recycling,

and cost normalization.



Warranty and EPR related costs are unlikely to be recurring expenses.

Capex guidance



FY26 outlay of INR13b is planned. Of this, about INR 6b is likely to be invested in

the lead acid battery business (including tubular plant and battery breaking

operations) and another INR 7b is likely to be invested in the cell manufacturing

facility. Of this, they have invested INR 4b in H1.



About INR 12b is invested in the new energy business so far.



The company is likely to incur capex of INR3.5-4b in the lead acid business in

FY27E, and INR10b in its cell manufacturing facility.



November 2025

AUTOMOBILE | Voices



The advanced lead recycling plant (1.5 lakh MTPA) has commenced refinery

operations. The battery-breaking operations are scheduled to begin in 4QFY26,

enhancing lead recovery.

Ashok Leyland

Current Price INR 147

Buy

Click below for

Detailed Concall Transcript &

Results Update

Industry/Business outlook



The Domestic MHCV segment grew by 5% in Q2, while the LCV segment saw a

13% growth in Q2. After the GST rate cuts, CV demand has seen a pick-up,

especially in LCVs. In October, while MHCV sales were up 7% YoY, LCV grew 15%

YoY.



While LCV demand is already seeing signs of a pick-up for last-mile distribution,

management expects the MHCV demand also to pick up in the coming quarters

on the back of a pick-up and expectation of continued pick-up in consumption

across the country, which is likely to, in turn, drive higher freight demand.



The Saathi (LCV) model has been very well accepted and now accounts for 22–

25% of total LCV volumes. Contrary to expectations, Saathi has had low single-

digit cannibalization with the Dost.



Ashok Leyland’s LCV capacity currently

stands at 80,000 units. The company

plans to expand this to 110,000–120,000 units within 6–9 months through

debottlenecking. Management does not expect a significant capex requirement

for the same.



Ashok Leyland will inaugurate its bus body building plant at Lucknow soon,

which will take the total bus body building capacity to 20K units per annum from

the current capacity of 12K units.

Product launches



New tipper models in the MHCV segment, with 320 and 360 HP and higher peak

torque, will be launched in Q3/Q4. These products will offer 20-30% better peak

torque compared to the best in the market and will command a premium price,

supporting margin expansion via premium mix. This would also help AL recover

its lost share in the segment.



In the bus segment, a new 13.5-meter ICE bus is expected to be launched, along

with a 15-meter bus, which has the maximum sleeper capacity, both in H2.



In the 2-4T segment, AL does not have a bi-fuel product (CNG + petrol), which is

now being increasingly sold in regions like NCR. Mumbai etc. AL plans to launch

a bi-fuel product in this segment in 2–3 quarters.

Exports



Exports have shown significant growth, with a 35% increase in H1 (+45% in Q2)

across markets in SAARC, Africa, GCC, and ASEAN.



Exports have grown from 1,000 units in FY22 to 15,000 units in FY25, with a

target of 18,000 units in FY26 and 25,000 units in the next three years. AL

maintains its target to achieve a 20% CAGR in exports over the next few years.



Ashok Leyland’s long-standing

presence in GCC and SAARC countries has

allowed it to invest in local production, supply chains, and dealerships, which

have helped drive growth.

Margin guidance



Ashok Leyland is focused on cost-cutting initiatives to drive margin expansion.

November 2025

AUTOMOBILE | Voices

Further, higher growth in non-truck segments, such as buses, LCVs, spares, and

exports, is supported by margin improvement over the last few years. Its non-

truck mix has improved to 49% of total revenues in 1Q from 40% in FY22.

Revenue contribution from non-truck business in 1Q was: Buses

–

13%, LCV

–

12%, Spares

–

10%, Exports

–

7-8%. Even in H1, the non-truck business has seen

strong growth: aftermarket up 11% YoY, power solutions up 14% YoY, and

defense-related business up 25% YoY.



These non-truck businesses have higher margins than the domestic truck

business and have helped reduce its break-even levels significantly from 6-7k

units per month to just 1200 units per month.



Management expects discounting trends to gradually ease post GST rate cuts,

with demand picking up.



Raw material costs are expected to decline a bit QoQ in Q3, which should

support margin improvement.



While there was no price increase in Q2, the company has seen better average

selling prices (ASP) due to a more favorable product mix.



Aided by new product launches and an improving mix towards non-truck sales,

management has retained its medium-term guidance of achieving mid-teen

margins.

Update on capex and investments



AL reported a capital expenditure of INR4.2b for Q2, with a total of INR6.6b for

1H. For FY26, capex guidance stands at ~INR10b. H1 capex spend was utilized

for the Center of Excellence, new product development, and the purchase of

land adjacent to the corporate office for expansion purposes.



Investments in H1 were nil, but they may need to infuse some money into

Associates like Ohm Mobility and the Finance arm. However, the total infusion

into these is unlikely to exceed INR5b.



The net cash position as of September 2025 stood at INR10b vs net debt of

INR5b as of September 2024, as a result of strong operating performance and a

sharp reduction in working capital (down 50% YoY in H1).

Subsidiaries



Switch:

In 1H, Switch India (the electric vehicle subsidiary) sold 600 electric

buses and 600 electric LCVs. The order book currently stands at 1,650 units.

More importantly, Switch India has now achieved EBITDA and PAT break-even in

H1, and AL has kept a target for this business to be FCF positive by FY27. Due to

the high cost of operations, AL is now shifting the production of EV buses in

Switch UK to RAK (Ras Al Khaimah) in the UAE. Switch India will look to

participate in the upcoming 10k+ bus order under the PM-e drive scheme, which

will open up soon.



Ohm:

Ohm is currently operating over 1,100 buses at 98% utilization levels,

having added 250 buses in 2Q. They are on track to reach 2,500+ units under

operations within the next 12 months. Also, all the GCC contracts are now

operating at a healthy double-digit IRR for Ohm.



HLF:

The assets under management (AUM) of HFL reached INR526b, a growth of

26% YoY. The company’s housing finance subsidiary’s (HHF) AUM grew 20% to

INR149b. HLF recorded a PAT of INR1.9b in 2Q with NNPA of 1.59% and had a



November 2025

AUTOMOBILE | Voices

book value of INR74b. They have received RBI’s approval to merge HLF with

NxtDigital, and its listing is expected to happen post Q1FY27.

Other highlights



AL has expanded its network by adding 27 new MHCV touchpoints and 26 new

LCV touchpoints in Q2FY26, the bulk of them in North, East, and Central regions.

AL now has total touchpoints of ~2,000 (1,100 for MHCV and 876 in LCV)



AL has declared an interim dividend of INR1 per share.



Other income in the quarter was higher due to fair valuation gain in Switch

India, amounting to INR500m.

Bajaj Auto

Current Price INR 8,915

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Growth/Focus Areas



Competitive growth in the 125 cc plus segment.



Goal to sustain export growth at 15-20%.



Regain momentum in the EV segment by unlocking supply chain constraints.



Focus on reviving back KTM.

Domestic motorcycles update



The GST rate cut supported the industry, and all of BJAUT’s business units

benefited during the festive season. Although August saw sluggish demand,

festive demand rebounded strongly from Sep onwards, leading to historic

festive growth.



The impact of GST was visible in consumer behavior, with a sharp preference for

up-trading—higher-end models outperformed base variants. The top-end Pulsar

models, particularly the N and NS series, saw strong demand.



BJAUT maintained pricing in its 350cc+ segment despite increase due to GST

rate hikes (from 31% to 40% GST for this category), absorbing the impact

internally, while benefits were passed on to customers in the sub-350cc range.



The company achieved all-time-high retail volumes, both in unit and revenue

terms, with the Pulsar portfolio delivering peak performance.



Market share increased in the 125cc+ segment, driven by the 150cc+ sports

category.



Management expects the motorcycle industry to post 6-8% growth in 2H.



New Pulsar variants are planned for launch in December, March, and May, with

the aim of outpacing the industry and gaining further share in the 125cc+

segment.



A new non-Pulsar product is also scheduled for launch in FY27 (likely to be in the

125cc segment).



Triumph and KTM portfolios are being recalibrated for the under-350cc segment

to reap the benefits of lower GST and remain competitive to the market leader.

2W exports



Export volumes grew 24% YoY in 2Q, with broad-based growth across multiple

markets.



BJAUT has clocked 200k units in monthly volumes in exports after almost 40

months. However, previously, 200,000 monthly exports included 50,000–60,000

units from Nigeria; which has now reduced to 25,000 units, highlighting their

reduced dependence in the region.



Export revenues stood at around USD 600 million in Q2FY26.

November 2025

AUTOMOBILE | Voices

The top 30 export markets account for 70% of the total emerging market. While

this industry grew 14% in 2Q in these markets, BJAUT grew at twice that rate

and, hence, gained a share in the key markets.



Asia and Africa delivered double-digit growth, driven by Sri Lanka, the

Philippines, and East Africa, while Nigeria remained steady.



KTM exported 20,000 units to KTM Austria in 2QFY26, +20% QoQ, signalling a

gradual recovery in volumes.

2W EVs



Supply chain issues led to a 50% shortfall versus plan. The company has now

transitioned fully to LRE-based motors to overcome this issue. BJAUT became

the first OEM to complete full re-homologation of its entire EV range using

alternate LRE-based magnets, ensuring performance parity while diversifying

sourcing across geographies.



A new Chetak model will be launched early next year.



The 2W EV network includes 390 exclusive Chetak stores and 4,000 touchpoints

across 800 cities.



EVs (2W + 3W) contributed 18% of domestic revenues, generating INR17b with

double-digit EBITDA margins, for the first time ever. Profitability was supported

by improved economics in 2W EVs and higher volumes in 3W EVs. While the PLI

supports the overall profitability in the EV segment, the 2W EV business has

become EBITDA neutral. PLI benefits are available till March 2028.



The GST cut on ICE vehicles is not expected to materially affect 2W EV demand,

given the continued TCO benefits.

Update on domestic 3Ws



The ICE three-wheeler segment moved from a YTD (Aug) decline to growth in

October. The current decline in demand could turn to flat growth for FY26E,

post the GST rate cuts, as per management. BJAUT continues to enjoy almost

80% market share in this segment.



The e-auto segment was growing at robust 75% pre GST. However, post the GST

rate cut, growth has come down to 50% as: 1) payback for CNG 3Ws has now

reduced to 13 months vs 19 months for e-autos and, hence, customers now

prefer CNG 3Ws; 2) supply constraints due to chip shortage. While BJAUT was a

market leader in this segment earlier, it has lost its leadership position due to

the supply constraints it faced in 2Q. It expects to regain its leading position in

the coming quarters. In this segment, while competitors offer just one model,

BJAUT has two successful models and plans to launch two more in the coming

quarters.



E-rickshaw demand declined as customers traded up to e-autos. Additionally,

movement restrictions in certain States like UP have also constrained e-rick

growth.

Outlook on input costs and currency trends



Dollar realization improved to INR87.1 vs. INR85.6 in 1QFY26 and INR83.8 in

2QFY25.



Raw material cost inflation (net of a small price hike taken) surged by 40bp for

2QFY26 due to higher steel, copper, rubber, platinum, and rhodium prices.

Operating leverage, favorable currency, and product mix offset the impact of

commodity cost inflation.



November 2025

AUTOMOBILE | Voices

The company expects some commodity inflation in Q3, but currency tailwinds

should help offset the impact of the same.



No major price increases were taken during the quarter.

Update on KTM



KTM will remain classified as an associate company until regulatory approvals

for its complete acquisition are in. The upcoming quarter will be the last before

full consolidation is achieved.



The restructuring was completed in June, and KTM production resumed in July.



Approvals have been received from the Foreign Investment Control Authority in

Austria and the Austrian Takeover Commission, with only the European

Commission approval pending. The change of control to BJAUT management is

expected within the next few weeks.

Other highlights



FCF of INR45b was generated in H1, with cash conversion at ~100% of PAT.



Cash liquidity stood at INR142 billion after distributing ~INR60b in dividends and

investing over INR20b in subsidiaries (INR15b for the KTM Austria transaction

and INR5b for Bajaj Auto Credit).



Spares revenues in 2Q stood at INR18b (+21% YoY).



Bajaj Auto Credit (BACL):

Added 200,000 new customers in 2Q; AUM crossed

INR140bn. PAT for 2Q stood at INR1.32b with H1 ROE of 17.4%. Capital

Adequacy ratio stood at 19.8%. Debt-to-equity ratio at 4–4.5x, expected to be

serviced through profits. Financing penetration: 70% for motorcycles, 90% for

3Ws; BACL penetration at 40% for 2Ws and 50% for 3Ws. BJAUT has so far

invested a total of INR29b in BACL, with further potential requirement of INR2-

3b, post which it will be in a position to fund its own operations from internal

accruals.



Balkrishna Inds

Current Price INR 2,308



Neutral

Click below for

Detailed Concall Transcript &

Results Update



2QFY26 was impacted by tariff headwinds in the US, with import duties raised to

50% from 25%, sharply affecting US sales. BIL’s US sales accounted for ~10% of

FY25 sales volumes. Given that the US is a net importer of OHT tires, some relief

is expected in tariff measures from the US in the coming months.

As a consequence, export volumes to the US have been halted due to unviable

economics under current tariff levels.

Currently, none of the global exporters are exporting to the US, given the sharp

rise in tariffs. Most distributors are currently consuming existing stock and are in

a wait-and-watch mode over the tariff situation. Thus, a favorable outcome on

tariffs may prompt inventory restocking in the US.

European demand remains weak but is showing early signs of stabilization.

Management expects a gradual recovery in 2H. Market share in Europe is likely

to have remained largely stable for BKT. The Indian market now contributes

~35% of revenue.

Margins were primarily impacted this quarter due to an unfavorable

geographical and product mix. Impact related to the EUDR regulation has

started reflecting in 2Q and will be fully realized in 3Q. However, management

expects this impact to be offset by the softening of commodity prices.

November 2025

AUTOMOBILE | Voices



Freight cost this quarter stood at around ~6-7% of sales and is expected to

remain stable going ahead.

Carbon black sales (to third party) accounted for ~10% of total revenue, with

55% of total carbon black production being consumed internally. Specialty grade

carbon black ramp-up is expected in FY27.

Capex for 1HFY26 was INR16.7b, which was mainly directed towards the new

TBR/PCR tire project and carbon black capacity expansion. FY26 capex is

expected to be at INR20-22b, with the balance of the ~INR35b three-year plan

to be spent in subsequent years. Net debt currently stands at INR4.5b.

Pilot production for TBR tires is expected to begin in 4QFY26, followed by PCR in

3QFY27. The company expects to ramp up this business gradually over FY27-

FY28.

Management has reaffirmed its long-term revenue target of INR230b by FY30,

supported by its OHT, carbon black, and new tire categories in India.

BIL is investing in brand-building activities aimed at strengthening its presence in

the mining and OHT segments, which will eventually support its upcoming

strategic initiatives.

BIL does not plan to set up a local manufacturing plant in the US due to

unfavorable economics. The company focuses on India as a global production

hub.

Bharat Forge

Current Price INR 1,397

Neutral

Click below for

Results Update

2Q highlights



On account of the tariff-led uncertainty and destocking, CV exports to the US

declined 48% QoQ and 67% YoY.



However, PV and industrial exports remained resilient. Non-auto export growth

was led by good demand in power generation equipment, construction and

mining segments, and aerospace.



BHFC’s 2Q financials included the INR240m impact of US tariffs that the

company absorbed in the quarter.



KSSL margin improvement in 2Q was aided by an improved product mix.



Total order wins for 1H stood at INR15.8b

—

forgings and industrials at INR8.2b,

defense at INR5.5b, and castings at INR2b.



Cash balance at the end of 1H stood at INR23b.

Update on defense and aerospace



The defense order book stands at INR94.7b. Moreover, BHFC has recently won

an order to supply carbines worth INR14b

–

SOP is expected in 9-12 months

once this order is signed. The company recently won an order from the Navy

worth INR2.5b+ for the supply of Unmanned Marine Systems. This is the second

order from the Navy, with delivery expected from its Pune facility within a year.



New wins and additions are expected, with execution for ATAGS set to begin in

6-9 months. It will take over three years to execute the entire order of 187 guns.



Aerospace contributes to 13% of industrial exports and revenue for FY25 stood

at INR2.5b.



Management expects aerospace revenue to cross INR3.5b in FY26, and BHFC

expects this run rate to continue for the next 3-4 years.

November 2025

AUTOMOBILE | Voices

Update on JSA



In 2Q, JSA saw 26% YoY revenue growth and 44% EBITDA growth.



JSA is seeing margin improvement, led by revenue growth and an improved mix.



The business continues to see strong traction from its customers and

management expects to see better growth in revenue and EBITDA in H2

Update on overseas subsidiaries



Demand in EU remained weak in a seasonally weak quarter. EU aluminum

utilization stood at 60-65%.



The restructuring plans for EU steel forging units is under consideration.



US aluminum utilization also stood at 65%.

Outlook



3Q performance is expected to be similar to 2Q, with an uptick expected in 4Q.



The domestic CV business is likely to remain flat YoY in 2H.



GST rate cuts augur well for the domestic PV segment, which is expected to see

a continued pickup in demand in 2H.



EU exports are weak currently, primarily due to destocking. However, a recovery

is expected in the coming quarters.



Management expects exports to the US to decline further in 2H. However, this is

likely to be more than offset by a pickup in demand in segments like domestic

non-auto, exports to non-US regions and ramp-up in defense and aerospace

segments.

Other highlights



2Q was the first quarter of consolidation for American Axles CV business in India

(now renamed as K-Drive Mobility). This entity reported revenue of INR2.96m

and EBITDA of INR92m. Management expects this business to benefit from good

opportunities in the HPV, IPV, and SUV segments in India. There is a non-

compete clause for exports to North America for the next five years.



BHFC is still evaluating the value chain of server manufacturing business in India,

which is a huge growth opportunity for the future.



The company has taken an enabling resolution to raise up to INR20b through

debt and non-convertible debentures for both organic and inorganic growth

opportunities.

BOSCH

Current Price INR 37,032

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Detailed Concall Transcript &

Results Update

Neutral

Segmental Updates:



The mobility solutions segment’s revenue grew ~12% YoY, led by a 9.5% growth

in the power solutions segment and 81.8% growth in the 2W segment. Growth

in power solutions was driven by demand for diesel components for PVs and off-

highway

vehicles. The 2W segment’s growth was driven by its new order wins

for OBDII norms.



Mobility aftermarket grew 3.7% YoY despite being temporarily impacted by GST

2.0 related destocking. Management expects sales momentum to normalize

starting 3Q once dealers begin restocking post GST cuts.



BOS plans to expand its aftermarket product offerings in filters, diagnostics, and

diesel systems in the coming quarters.



Consumer goods revenue rose by a marginal 1.8% YoY. Healthy demand from

new launches in the entry and mid-price hand tools categories and outdoor

November 2025

AUTOMOBILE | Voices

garden segments was offset by exchange rate headwinds and GST-related

adjustments. Management expects margins to recover with festive demand

normalization.



The power tools segment saw encouraging traction from e-commerce, with high

double-digit growth in online sales, aided by successful festive campaigns and

growing adoption of Cordless 2.0 technology (battery driven tools).

Operational and Strategic Updates:



Localization efforts are yielding tangible benefits in the form of lower material

costs and subsequently improved gross margins. By reducing import

dependence, BOS was able to cut on forex volatility and raw material inflation.



The company launched its sensor less quick-shift technology in India and

deployed its Lambda Sensor in TVS Ntorq 150 and Bajaj Pulsar NS400.



The EV segment observed steady progress, with key customers being 2W

scooter OEMs. Margins remain under pressure due to early-stage market

economics. BOS is continuing to develop non-ferrite based motor technology.

Guidance and Outlook:



Management expects demand to pick up across key auto segments (2Ws, PVs,

CVs and tractors), supported by GST 2.0 reforms, improving rural sentiment, and

a reduction in interest rates.



The automotive segment is transitioning from legislation-led to feature-led

demand, which is expected to drive higher content per vehicle. Clean energy

technologies, hybrid systems, flex fuel systems, and electrification are expected

to drive growth in the future.



The company is actively engaging with Indian OEMs to develop hybrid

powertrains.

Hydrogen ICE systems in MHCVs are currently in the pilot stage, and various

OEMs are test-marketing the same. Management expects hydrogen-powered

HCV engines to reach 8-15% market penetration by 2030.

Geopolitical instability resulted in muted short-term export growth. However

once macro conditions stabilize, management plans to expand on export

competitiveness, supported by ongoing localization strategies.

CEAT

Current Price INR 3,884

Buy

Click below for

Detailed Concall Transcript &

Results Update

Result highlights



Replacement segment:

In Sep’25, replacement demand decreased slightly as

dealers did not want to stock-up ahead of the GST reduction. However, overall

2Q saw mid-single-digit growth. The 2W segment showed strong growth,

particularly in rural areas, while PV saw mid-single-digit growth. Market share

grew in both PV and 2W, while the TBR segment remained stable.



OEM segment:

The OEM segment saw YoY growth in mid-20s, with a major

contribution from the PV sector, which benefited from strong sales of new car

models. The Motorcycle segment also showed strong growth, while the Farm

segment grew in the mid-teens. TBR volumes grew in high-teens over a low

base. The market share for EVs stands at 30% in the PV segment and 20% in the

2W segment.



International markets:

The company saw high-teen growth in its international

business, particularly driven by strong demand for 2W and 3W tyres in Africa

November 2025

AUTOMOBILE | Voices

and LATAM. PV growth was led by strong performance in the EU market. The

Farm segment also showed robust growth, driven by demand from the EU,

LATAM, and other regions. The US market was affected by tariffs, but the impact

on CEAT was limited due to its low exposure.



Realization grew by 1% QoQ, driven by improvements in pricing, and product

mix. Overall, the company achieved an impressive 11%+ YoY volume growth.



Capacity utilization stood at 80-85%.



EBITDA margin improved 400bp QoQ primarily due to reduction in input costs

by 5% QoQ, better than earlier expected.

Demand outlook

–

domestic



GST rate reduction is expected to have a positive impact, especially in semi-

urban and rural markets, where demand for low-ticket items is anticipated to

perform well. Factors such as GST cuts, premiumization, and the growing

adoption of EVs are expected to result in single-digit growth for the industry in

the near term. Additionally, a normal monsoon, interest rate cuts, and the

Kharif season are expected to further support growth in the near term.



The GST on auto tyres has been reduced from 28% to 18%, while farm tyre GST

has been reduced from 18% to 5%. The company has passed on the entire

benefit of the GST reduction to its channel partners, who, in turn, have passed it

on to the customers. This has resulted in a net benefit of 7-8% on the selling

price. For a segment like trucks, this translates to reduction of ~ INR1,500 per

tyre, which is sizeable for the segment.



Restocking is expected in 3Q in replacement segment as dealers would look to

normalize stock levels post GST rate cuts. However, 3Q is seasonally a weak

quarter even on a QoQ basis. Demand is particularly lower in parts of the North

and East regions of India due to winter.



The replacement segment is expected to experience high single-digit growth,

with TBR anticipated to be in line with the overall GDP growth. The 2W segment

is expected to grow by 7-8%, and the PV segment is projected to grow modestly,

ranging from 0% to low single digits.

Demand outlook - exports



The tariff on PCR tyres to the US stood at 25%, while the same for OHT has

increased to 50%.



In the export markets, demand for Agri Radial and Off-Highway tyres is expected

to remain strong across key markets in the EU, Africa, and LATAM.



Exports of OHT to the US dropped to nil by the end of the quarter due to the

sharp tariff hike, while exports of PV and TBR continued to perform well.



In the non-specialty business, there was mid-teen volume growth, with strong

demand from EU, Africa, and the MEA region.



EU market remains the most profitable and is showing the highest growth, with

strong traction in the PV segment.



PV and TBR tyres together contribute to 65% of the company’s total exports,

and CEAT is the leading exporter of PV tyres from India.



The company expects some resolution on the high tariffs especially in OHT,

soon. The company has passed on tariffs partially to OEMs and it is absorbing

the balance. However, the impact on CEAT is not material given its limited

exposure to US currently.

November 2025

AUTOMOBILE | Voices

Update on operational performance



Gross margin was supported by better realization in the replacement and

international markets, along with lower RM costs.



Overall RM prices were 5% lower QoQ.



Crude oil prices remained stable at around USD65 (± USD2) in 2Q.



International rubber prices remained stable at USD1,700–1,750 per ton.



Domestic rubber price was higher than the import parity level for Jul-Aug, but by

Sep, it returned to parity with imports.



Carbon black prices remained flat QoQ.



Synthetic rubber prices were 3-3.5% lower, and nylon fabric prices were 2-2.5%

lower, both of which were beneficial to margins.



Steel prices were 4-5% lower.



Employee costs increased due to the annual increment.



Other expenses were higher due to increased outsourcing, distribution,

marketing, and higher manufacturing activities.



3Q RM is expected to remain flat QoQ, including the impact of INR depreciation.



As a result, margin is likely to remain stable QoQ in 3Q.

Update on Camso



The Camso acquisition was completed on 1st Sep.



For the next 5-6 quarters, the company will source semi-furnished raw materials

from Michelin until it fully establishes its value chain.



Camso sales would also be done through Michelin’s network till CEAT develops

is own distribution network. Direct customer relationships are expected to be

developed in 3-4 quarters.



Sales realization and the cost structure for the acquisition were in line with

management expectations.



Capacity utilization currently stands at 50%, with a gradual ramp-up expected.

Once the direct relationship with customers is established, the business is

expected to perform well.



Camso products face a 20% duty on exports from Sri Lanka to the US.



The Michelin sales team has already passed on part of the tariff impact to

customers. The full impact is expected to be passed on over the next 2-3

quarters, with around 50% of the tariff absorbed so far.



Over the medium term, the business is expected to be margin-accretive.

Update on capex and debt



2Q capex stood at INR1.85b, with 1H capex amounting to INR4.2b. Additionally,

the company spent INR2.4b on Camso to acquire trademarks and patents.



Capex breakdown for 1H: INR1b for R&D, INR0.5b for TBR expansion, INR0.7b

for the Amerbath expansion, INR1.6b for Chennai PCR downstream expansion,

and INR0.4b for de-bottlenecking processes.



The capex target for FY26 is maintained at INR10b.



The company’s total debt stands at INR29.4b, up INR10.3b QoQ due to the

Camso acquisition. The company has increased its RM inventory in anticipation

of 3Q requirements.



The Debt/EBITDA ratio stands at 1.8x, while the Debt/Equity ratio is at 0.64x.

The company will maintain its internal targets of leverage and will not exceed 3x

on Debt/EBITDA and 1x on Debt/Equity.

November 2025

AUTOMOBILE | Voices

CIE Automation

Current Price INR 425

Buy

Click below for

Detailed Concall Transcript &

Results Update

India performance update



The India business delivered its highest-ever quarterly sales, with growth

outperforming the weighted average of key end markets. Revenues increased

by 6% YoY in Q3 CY2025, supported by broad-based improvement across

segments—particularly tractors and two-wheelers.



New order inflows that were earlier delayed have now resumed, signaling

normalization in customer demand.



Market conditions have been favorable across LCVs and farm equipment for Q3,

while passenger vehicle growth remains modest. Light vehicle demand

continues to be muted, with tractor sales emerging as the key revenue driver.



An increase in energy tariffs in Maharashtra, where several plants are located,

had a marginal ~0.5% impact on operating margins. However, ongoing efficiency

measures are expected to offset the cost pressures, ensuring steady EBITDA

performance.



Management expects market sentiment to improve in H2 FY2025, supported by

GST reductions driving vehicle affordability. Average long-term growth forecast

over three years across segments has now increased by 200-300bp relative to

earlier expectations, post GST rate cuts. For instance, the PV segment is now

expected to post a 5-6% CAGR over three years.



Recent U.S. import tariffs—25% on light vehicles and up to 50% on trucks,

tractors, and off-highway components—pose a limited challenge, with only ~1%

of Indian revenues

at high risk. Indian players’ competitiveness in other lower-

cost markets, such as Vietnam and other Asian countries, remains intact after

the tariff surge in PVs.



M&M continues to contribute roughly one-third of Indian revenues. Of this,

while 2/3rd is contributed by PV (including LCVs), the balance is contributed by

tractors.

Europe performance update



The European business continues to face weak market sentiment (0.3% growth

in 3Q but -2.6% for 9M). However, the YoY growth seen in Q3 is largely a

function of the low base of last year. However, the European market demand

continues to be stagnant.



For 3QCY25, European revenue grew 18% YoY in INR terms. However, while

revenue in Euro terms was 7%, a favorable exchange rate led to a balance +11%

growth. EBITDA margin stood at 13.2%, stable QoQ, ex of one-time restructuring

costs at Metalcastello.



Light vehicle production in Europe is expected to remain flattish at ~16 million

units annually over CY2025–27. The MHCV segment also remains subdued, with

only mild recovery anticipated from CY2026 onwards



Mexico subsidiary revenue is at a run-rate of EUR45m pa.



The Metalcastello restructuring process has been completed, and margins have

returned to normalized levels. The business maintains a strong relationship with

Caterpillar, with potential upside as the off-highway segment recovers.

November 2025

AUTOMOBILE | Voices



The European forging industry is witnessing financial stress and insolvencies

among peers, presenting potential consolidation opportunities for CIE

Automotive.

Craftsman Automation

Current Price INR 6,715

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Overall guidance



Management expects consolidated revenue to continue to grow in double digits

over the next several years. 2HFY26 performance is likely to exceed 1H

performance as the new aluminum and alloy-wheel facilities ramp up and

Sunbeam’s operations stabilize.



FY26 capex is guided at INR10b for standalone business and INR2.8b for DR

Axion. Capex for Sunbeam is expected to be negligible.



Management expects India to become a central manufacturing hub for CV

powertrains and stationary engines in the coming years.



Generators manufactured for data centers are highly tech intensive as they may

shut down even with small fluctuation in power. Globally, only 8-9 companies

are present in this segment, of which the top four command almost 70-80%

market share. Craftsman is currently working with three of these top four global

companies.

Update on powertrain business



Margins declined 60bp QoQ to 14.6%, due to higher input and machining costs

and softening in demand for higher-margin CV components. Craftsman

continues to strengthen its position in import substitution for critical parts such

as cylinder heads, blocks, camshafts, bearing caps and turbochargers.



Segment mix is diversified across CVs (46%), tractors (19%), off-highway (21%)

and PVs (14%). Currently, tractor volumes are providing incremental growth,

offsetting softness in CVs. However, management remains optimistic that CV

industry will see improvement in the long term.



The Kothavadi plant is currently in phase 1 and is operational for engineering

components. Management has reiterated a long-term revenue guidance of

USD100m from the stationary engines business by FY30. Half of the order book

(USD50m) has already been secured, and the remaining is under advanced

stages of negotiations. Commercial revenue is expected to flow in from FY29 as

these are long-gestation projects.



The Fronberg subsidiary caters to large engine castings for data center power

generation. For 1HFY26, revenue came in at INR1.6b with EBITDA of INR149m

and PAT of INR80m. The subsidiary operates at full capacity currently and has

maintained a full order book for the next few years. They are currently doing all

the development work in Germany, which is giving a lot of confidence to global

customers to place future orders.

Update on aluminum business



Craftsman is now getting cylinder block business in the aluminum segment.



Management has indicated that margins for the aluminum business are

sustainable for the foreseeable future as the setup costs for the Bhiwadi plant

have normalized, and the Hosur facility is currently in the ramp-up phase.

November 2025

AUTOMOBILE | Voices

Further, sharing of infrastructure for Bhiwadi plant with Sunbeam is also helping

drive better margins.



Aluminum utilization is improving sequentially, aided by higher export

contribution and increased share from EV and structural parts. DR Axion is

currently running near full utilization. DR Axion has initiated INR2.8b capacity

expansion for a new cylinder-block program based on existing customer

requirements.

Update on Sunbeam



Sunbeam reported revenue of INR3.3b in 2QFY26. EBITDA margins currently

stand at 6%. While revenue is likely to remain stable in FY27, management will

now focus on improving efficiencies in this business and hence expects EBITDA

margin to improve to double digits by FY27.



Integration with Craftsman and DR Axion is driving customer synergies and

shared cost efficiencies. The Gurgaon facility will be completely vacated by end

of 2025, with the land being ready for sale from start of 2026. The proceeds

from land sale will be used to pay off accumulated debt (net D/EBITDA likely to

reduce to 2x in FY27E from 2.5x currently).

Updates on alloy wheel business



Combined installed capacity in Bhiwadi and Hosur stands at 5.8 million wheels,

with an additional 2 million wheels being installed under Phase 2 expansion at

Hosur. Total planned capacity is 7 million wheels, while orders in hand already

exceed 6 million units annually.



Commercial sales have begun from Hosur (first shipment started in 2Q), while

Bhiwadi continues to ramp up to full capacity. Full-scale operations are expected

by 2Q.

Update on storage business



Industrial & Engineering segment reported 1H revenue of INR4.8b (+17% YoY)

and EBIT of INR80b (+70% YoY). Storage contributes ~63% of the segment, with

the rest from contract manufacturing and assembly solutions.



The segment is viewed as a stable cash-generating business, and margin

improvement is expected to continue as utilization from the Pune and

Coimbatore facilities increases. Management plans to maintain steady margins

rather than chasing aggressive expansion.

Other highlights



Net debt currently stands at INR28b, with net debt-to-equity ratio at 0.94x and

net debt-to-EBITDA ratio at 2.46x. RoCE (annualized) stood at 15%.



The company will not consider any large inorganic growth opportunities at least

for the next 18 months.

Eicher Motors

Current Price INR 6,812

Sell

Click below for

Detailed Concall Transcript &

Results Update

Royal Enfield update

Product Launches



Royal Enfield launched three product refreshes in 2Q, including a refreshed

Meteor 350, which is now available in four variants and seven new colors. A new

Graphite Grey Hunter 350 and Shadow Ash Guerrilla 450 were also introduced.



The Meteor 350 saw strong demand following the introduction of new colors in

September, contributing to a 30% YoY growth.

November 2025

AUTOMOBILE | Voices

The Hunter 350 saw a healthy 41% YoY growth, while the Classic 350 grew

24.5% YoY in 2Q, supported by a targeted campaign.



The Bullet 350 (Battalion Black) continued to see strong demand and saw a 70%

YoY growth in 2Q.

Domestic Demand



Royal Enfield holds a dominant 84% market share in the mid-size motorcycle

segment.



Retail sales grew strongly during the festive season, with a total of over 249k

units sold. The South and East regions have performed particularly well in 2Q.



Post-GST, demand has remained strong, particularly in the 350cc+ segment,

with 350cc models.



The GST reform has also made the 350cc motorcycles more accessible and

increased inquiries and bookings, resulting in improved conversion rates, which

have increased from 20% to 30%.



The retail demand was strong in Oct’25 due to the festive season, and has held

up in Nov as well. This has led to a decline in inventory, which would need

replenishment, further aiding wholesale volumes in the coming months.



After the GST rate hike in the >350cc segment, its 450cc is seeing much slower

demand, while its 650cc is showing initial signs of picking up. Apart from the

price hikes, the slowdown in these models is also a function of the strong pre-

buy that these models saw before the GST rate hike.

Exports



Exports saw significant growth in 2Q, with a 49% YoY increase. Retail sales were

higher than wholesale volumes, indicating strong demand in key export

markets.



The company maintains its leadership in SAARC markets, ranked No. 2 in key

regions such as the UK, Argentina, Thailand, and Korea, and is ranked No. 3 in

Brazil and Australia, and No. 4 in the EU.



Brazil continues to perform well, and Royal Enfield is looking to invest in a new

facility to further strengthen its presence in the region.



The company is also planning to set up a subsidiary in Germany to cater to the

EU demand.

Margins



Input cost inflation for 2Q stood at 40bp, which was offset by the price hike they

took



Other expenses were higher during 2Q due to higher marketing spend for brand

building, community engagement, and market activations, which are expected

to continue going forward.

Capacity expansion



Royal Enfield has increased its production capacity to 1.3-1.35m units per

annum from earlier 1.2m by debottlenecking its facilities. Further, an additional

module capacity is expected to come online by 1QFY27, increasing the installed

capacity without the need for major capex, as they have additional space in the

existing Cheyyar plant.

VECV update

2Q results



VECV EBITDA margin improved 70bp YoY to 8% for 2Q



VECV is now the market leader in LMD trucks with 34.8% market share



November 2025

AUTOMOBILE | Voices

Parts business posted 12% YoY growth in 2Q



Eicher signed a Memorandum of Understanding (MOU) with Tata Power and Jio-

BP Pulse to provide access to 6,000+ public chargers for its Eicher EV trucks,

further enhancing the support for the EV infrastructure.

Product portfolio



Eicher launched the Eicher Pro+, which includes an AC cabin and an upgrade to

the load-carrying capacity in the light and medium-duty truck segment.



VECV is one of the market leaders in the CNG segment, with presence in both

the cargo and passenger segments within the light and medium duty range.



In the EV space, VECV has launched the Pro X range to cater to the 2-3.5T cargo

segment. In the EV bus space, VECV has a 9-meter bus and a 12-meter bus,

where it plans to participate in the new PM e-drive tender expected to open

soon.



The company is also working on electric models for the tippers and for the

tractor-trailers.

Domestic demand



All segments, except for MHCV cargo, are experiencing growth.



The GST rate cut is expected to support demand by increasing consumption and

facilitating the movement of goods across regions. The company expects HCV

demand to pick up in H2.



Lower interest rates and inflation are also expected to support growth in the

domestic CV market.

Capex



VECV announced an INR5.4b investment for the assembly and production of

Volvo Group’s state-of-the-art

12-speed automated manual transmission. This is

the 2nd such project of the Volvo group in India, post the engine sourcing. The

locally produced transmissions will be exported to Asia and Oceania.



Endurance Technologies

Current Price INR 2,617

Buy

Click below for

Detailed Concall Transcript &

Results Update

Update on ABS and braking systems opportunity



The current ABS capacity for ENDU will be ramped up to 640k units pa by

4QFY6. The company has now ordered another 1.2m units line, which can

potentially be operational by 1QFY27. The balance 1.2m units line will be set up

based on the timeline of the mandatory ABS regulation to be notified by the

authorities.



A new integrated disc-brake plant is under setup with SOP targeted in 2QFY27,

planned annual output of ~3m disc-brake assemblies and 4m brake discs, and an

expanded brakes R&D facility (double the existing size) due by 4QFY26.

Snapshot of order wins



1H order wins for ENDU stood at INR9.1b, which includes INR3b for the

Talegaon battery-pack program and INR210m of BMS orders at Maxwell. It has

close to INR42.1b worth of RFQs in discussion and expects another INR15b

worth of new order wins in the coming 1-1.5 years.



Cumulative EV orders so far (excluding battery packs) stand at INR10.1b;

including BAL, they stand at ~INR12b. 1HFY26 EV orders formed ~30% of total

wins, vs 49% in FY25 and 5% in FY24.

November 2025

AUTOMOBILE | Voices

1HFY26 Europe order wins stood at EUR12.7m, taking the cumulative five-year

order book to EUR242m. Of these, EUR94m (41%) is for EV and EUR109m (45%)

for hybrid applications. ICE’s contribution to revenue (~40% in FY25) is expected

to reduce to 25% by FY28.

Update on suspensions



ENDU remains a market leader in 2W suspensions, having ~43% market share in

front forks and 37% share in shock absorbers. Its market share in inverted front

forks is likely to be higher. New SOPs with TVSL and HMCL, along with potential

opportunities with a Chinese OEM, will further help scale up volumes.



With support from a Korean technology partner for 4W suspensions, ENDU is

close to securing an OEM entry.

Update on the Transmissions business



The company has started on-vehicle testing for its 4W driveshaft order with SOP

expected in 4QFY26, and is establishing a dedicated assembly line to address

increasing 3W and 4W demand. Management expects a steady volume ramp-up

by FY27 once SOP is achieved. This business is expected to generate INR5b

worth of business by FY28.



The company is actively engaging with two domestic OEMs for future driveshaft

and clutch-system supply, one in the light commercial 4W segment and another

in electric 3W applications.



ENDU has commenced commercial production of the APTC clutch for premium

and high-performance 2Ws in 2QFY26. Management has indicated that this

clutch is a high-margin, proprietary product. Further, the company is now

developing hybrid and EV-compatible clutch systems.



Management emphasized that the transmission business is still at an early stage

but highly strategic, as it completes ENDU’s positioning as a ‘full-system

supplier’ for 2W and 3W drivetrains.

Update on Maxwell



In 1QFY26, ENDU purchased the remaining 38.5% stake in Maxwell and now

owns 100% of the company.



Maxwell was able to narrow PAT losses this quarter due to improvements in

operating leverage from higher volumes, internal efficiencies, and a better mix

of higher-value BMS variants.



Maxwell continues to supply large volumes of its AVA BMS platform to 2W

OEMs and has launched newer HP-Safe, CT-Lite, and LT+PRI BMS variants,

winning INR210m worth of orders in FY26 YTD.



The company is also expanding the SMT (Surface Mount Technology) capacity

—

the first SMT line at Chakan currently supports 44,000 BMS units per month, and

a second SMT line is being installed by March 2026, doubling the total BMS

capacity to ~88,000 units per month. This expansion is being funded internally

and will help support both EV and non-automotive energy applications.



Maxwell is spearheading ENDU’s move into

battery-pack assembly, with a

dedicated lithium-ion battery-pack facility coming up in Talegaon, Pune. The

plant is scheduled to begin SOP in 4QFY26. The first confirmed battery-pack

order is from a leading Indian 2W OEM, carrying a peak annual potential of

INR30b.



November 2025

AUTOMOBILE | Voices

Maxwell has received an LoI for supplying battery packs from a large 2W OEM

and is in advanced discussions with three other OEMs across the 2W, 3W, and

tractor segments. The company is also pursuing INR1.4b worth of live RFQs,

including opportunities in stationary energy storage and non-automotive

applications such as telecom and renewable energy systems.

Update on Europe



ENDU has completed the acquisition of a 60% stake in Stoferle and plans to

acquire the remaining 40% over the next five years.



Most major OEM customers in Europe, including Stellantis, Daimler, Volkswagen

Group (including Porsche and Audi), and Renault, maintained steady volumes

through the quarter.



Management expects new hybrid and EV programs to reach peak invoicing of

EUR150m between FY27 and FY29.



ENDU is localizing sub-components within EU operations. It has reported a new

supply award from a premium European OEM for lightweight aluminum gearbox

housing.



New RFQs from European OEMs are increasingly focused on high-complexity

castings and hybrid housings, where ENDU has a competitive edge due to its

process capability and cost efficiency in die-casting and machining.

Update on new capacity addition and capex guidance



It has so far invested INR4.6b in capex in 1H, and FY26 guidance stands at INR8b

for its new projects.



In response to draft regulations, ENDU is setting up dual-channel ABS lines and

additional disc-brake capacities at Waluj and Chennai.



ENDU is setting up the AURIC Shendra machined-casting facility (4W & non-auto

focus) with SOP expected by 4QFY26, and an additional machining/casting

capacity is being added to meet specific export and premium OEM programs.



Europe capex for FY26 is being targeted at EUR30-32m (having invested

Euro20m in H1), focused on capacity additions coupled with tooling and

automation across Italy and Germany.



Escorts Kubota

Current Price INR 3,609



Neutral

Click below for

Detailed Concall Transcript &

Results Update



Domestic Tractor:

Domestic tractor industry volumes for Q2 grew ~31% YoY at

275k. Substantial growth was observed in the southern and western regions,

aided by healthy rainfall and improved sentiment. The northern markets were

stagnant over the past few months; however, this region is now seeing positive

movement, as per management.

EKL’s domestic volumes stood at 32,329 units (+31% YoY) with a market share of

11.8% in 2Q compared with 10.1% in 1QFY26 and 11.8% in 2QFY25.

Dealer inventory is currently less than four weeks.

Management expects the tractor industry to deliver low double-digit growth in

FY26, supported by healthy reservoir levels, increased minimum support prices,

and favorable terms of trade.

Industry tractor exports remained flattish, growing by 4.4% YoY to 25.6k units as

of Q2FY26. For EKL, exports remain a key strategic growth lever. EKL’s export

numbers grew 26.2% YoY to 1.5k units. The growth was primarily supported by

stronger shipments to Europe and an initial ramp-up of supplies to Mexico

November 2025

AUTOMOBILE | Voices

through the Kubota Global Network, which now accounts for 50% of export

volumes. Export market share was 6.0% in 2QFY26, slightly lower than 6.8% in

1QFY26, but above 5.0% in 2QFY25.

The company expects to significantly expand its export footprint once the

upcoming greenfield facility becomes operational (likely by FY28). After this, it

expects to commence exports to the US. Escorts would also look at making India

a global hub for certain Kubota models.

EKL launched the PROMAXX series under the Farmtrac brand (30-50 HP) in

January to strengthen its presence in Gujarat, Maharashtra, Chhattisgarh,

Odisha, and MP, and has successfully captured 70% of the segment. They have

recently launched the Kubota MU series in the 41-50HP category, which has

received a favorable initial response. The set of launches for the Powertrac

series originally planned for 2Q has been deferred to 4Q. Once these are

launched, management expects market share improvement across regions for

the Powertrac series as well.

Non-tractor revenue & machinery:

Non-tractor revenue (spares, engines,

implements) contributed ~17% to agri machinery revenue. The segment grew

~29% YoY, outpacing the core tractor business, with EBIT margins expanding

370bps to 12.8% YoY. EKL expects contribution from non-tractor business to

increase gradually over the next few quarters, particularly as the pace of tractor

growth normalizes. Management highlighted that robust demand for harvesters

and mechanized implements will be sustained over the coming quarters. In

harvesters, Escorts Kubota currently enjoys a ~30% market share and plans to

expand into the larger wheel-type segment, which dominates the domestic

market.

Construction equipment (CE):

The construction equipment business faced a

subdued quarter, impacted by weak industry volumes due to the extended

monsoon, lower-than-expected mobilization of infrastructure projects on the

ground, and additional costs arising from the transition to BS-VI emission norms.

Industry volumes declined 4% YoY, led primarily by a 13% contraction in cranes.

For EKL, mini-excavators continued to gain traction with market share increasing

by 150bps to 18.5%. Total volumes for EKL in this segment fell ~18% YoY to

1,146 units. Segment EBIT contracted largely due to lower production volumes

and unfavorable operating leverage. Management expects a gradual recovery

from mid-3QFY26, aided by the government's infrastructure push and improved

project mobilizations after the extended monsoon. It is optimistic that margins

will recover to high single digits in the second half, aided by normalization of

volumes and easing input costs.

The company’s captive finance subsidiary,

launched in late FY25, is currently operational in four to five states and remains

in its stabilization phase. EKL is planning a nationwide rollout in FY27, targeting a

25–35% penetration level over the next three to four years, consistent with

industry benchmarks. The financing arm is likely to break-even in FY27 and turn

profitable in FY28.

Localization effort:

The company has commenced local production of

transplanters, with manufacturing expected to start next year. Localization of

key harvester components is being pursued through contract manufacturing

partnerships in India with Vietnam, and Japan, to optimize costs and reduce

reliance on imports. For Kubota-branded tractors, the company continues to



November 2025

AUTOMOBILE | Voices

explore localized engine development, though management highlighted that

current volumes do not justify the investment. However, within two years, a

new co-branded range with locally produced engines is expected to be

launched, which should improve profitability for the Kubota brand.

Management clarified that the commercial domestic launch of electric tractors

remains unviable due to high battery costs and limited charging infrastructure.

Electric tractors are currently exported to developed markets, although demand

has softened following subsidy withdrawals in the US.

Greenfield Plant:

Land acquisition for the upcoming greenfield project is nearing

completion by the Government, with only minor parcels pending transfer. The

first phase of the project will add 100,000 units of annual capacity (tractors and

CE combined) and would add another 1k units in phase 2. The company’s

current installed capacity is ~170,000 units, expandable to 200,000 units with

minor balancing investments.

Capex

for FY26 is expected to be INR3.5-4.0b, and is likely to be similar for

FY27E. The greenfield expansion will be over and above this base level, with the

initial focus on capacity creation for export models and construction equipment.



Happy Forgings

Current Price INR 1,022

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Results Update

Outlook



The 14,000-ton press line utilization stood at ~55–60%, with headroom to go up

to ~75%.



With its focus on diversification, they expect the mix for CV + farm to come

down to about 50% over the next few years, and the balance to be contributed

by Industrial + Off-highway + PV + Others.



New order wins for 1H stood at INR800m with better realization. However, 1H

growth remained muted due to a decline in the existing business along with a

challenging global business environment. 3Q is expected to see the

commencement of some of the new orders, which would see a ramp-up in 4Q

and beyond, according to the management.



Revenue growth is expected to come from execution of new orders in PV, off-

highway (large axle for German OEMs), new lines for wind and heavy tractor,

and the industrial business over the medium term. GST rate cuts are expected to

further support growth in the domestic markets. Thus, FY27 revenue growth is

likely to be much better than the current fiscal.



Management is evaluating a few probable inorganic opportunities. These would

be largely in forgings space, in areas where HFL would not have a presence, and

where they could be able to add some new technology as well as new

customers/components.

CV update



Domestic MHCV saw marginal growth, supported by infrastructure activity,

higher freight, and demand from steel/cement/construction.



However, CV revenues remained muted due to weak export demand. Volumes

for one of its key CV export OE fell to 24K run-rate from 40k units YoY in 2Q.

However, as per this OEM, its volumes are expected to pick up to 36k run-rate in

FY27E, and hence management is hopeful of CV exports recovery in FY27.



They are working on a few CV orders, which are yet to materialize

November 2025

AUTOMOBILE | Voices

The domestic CV business is expected to improve in the coming quarters on the

back of the execution of new orders from a leading CV OEM.

PV update



Mid-double-digit growth driven by ramp-up of a key SUV program.



One of the PV export orders to the US is expected to gradually ramp up from

4Q, given the 25% tariff on PV component exports from India.



HFL would be investing INR800m capex in FY26E for the PV business itself. On

the back of the new order wins, it targets to increase the PV contribution to its

revenues to 8-10% over the next two years.

Farm/Off-Highway update



On the back of pick-up in tractor demand in the domestic market, overall tractor

mix improved to 34% from 33% YoY.



While direct exports of tractors are just about 1%, they have deemed exports

which eventually go into European / US OEMs. A sharp slowdown (~45%

decline) European tractor industry offset the strong growth seen in the domestic

market. The outlook for the US / European tractor industry for H2 remains

subdued, with uncertainty over the outlook for FY27.



Management expects Off-highway momentum to improve in FY27 with new

programs ramping up.

Industrials update



Capex of INR6.5b is on schedule. Phase 1 capex would be INR5.5b



Out of the INR5.5b, INR1.5b would be for the wind and farm segment, while the

remaining INR4b would be for the large hammer. Of the INR6.5b, INR2b would

be spent on machining lines in two phases.



For this new capex, they have already garnered orders worth INR3.5b, of which

INR2.5b are for fully machined components and INR1b semi-machined.



Some of the order wins include: 1) INR3b lifetime order (INR600-700m pa) won

for wind shafts, which is likely to commence from Jan’26, 2) fully machined

order worth INR1.8b pa for data center application, 3) INR500m order for 500HP

tractor to be supplied to Europe / North American markets. Only about 15-20%

of the above orders are for the domestic market.



Once the first phase is operational, management is confident of garnering

higher orders as clients are waiting to see their plant before awarding further

orders.

Exports update



50% of direct exports come from industrials, while the rest come from the CV

segment.



Overall exposure to overseas customers stands at ~40% of revenues: direct

exports 18-20%, deemed exports 10-12% and the balance is component

assemblies that eventually go to overseas locations.



US exposure for HFL is about 10% of the mix (direct + deemed). This total US

revenue for HFL has fallen by 35-40% which has led to muted exports. While US

tariffs on PV component exports from India are 25%, the same for CV

components and non-auto, including agri, are 50%. For the 50% tariff category,

customers are largely in a wait-and-watch mode and are buying only in cases

where inventory has been exhausted. Management is hopeful that the US

tariffs, especially for the 50% bracket, will reduce going forward.



One of the genset orders for the US is currently under testing and is likely to be

delayed, given the 50% tariff on the components.



November 2025

AUTOMOBILE | Voices

Hero MotoCorp

Current Price INR 5,799

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Detailed Concall Transcript &

Results Update

Domestic 2Ws

–

industry update



HMCL reported a strong performance in the domestic 2W market, supported by

improving customer sentiment after GST rate cuts ahead of the festive season. It

achieved nearly 1 million retail sales on Vahan in Oct’25, expanding its market

share to 31.6% (+3.7% YoY). Management highlighted that demand has

remained buoyant even after the festive season.



HMCL was able to expand its market share meaningfully across all major

categories. In the entry segment, the company expanded its share for the

second consecutive quarter, driven by the successful launch of the HF Deluxe

pro and steady performance of Splendor. Given the pickup in demand, the

contribution of entry segment at an industry level has recovered to 9.2% in 2Q

from a low of 7.9% seen in 4QFY25.



Hero’s newly launched Glamour X in the 125cc segment has received a strong

response from customers. The Xtreme 125R was upgraded and launched with a

dual channel ABS variant to further improve its offerings in this segment.



The scooter portfolio also delivered a notable performance, growing 39% in 2Q.

The recent launches of Destiny 125 and Xoom 125 have helped to improve

HMCL’s market share in the 125cc segment to nearly 10% market. Hero plans to

further expand its scooter portfolio with the ramp-up of the Destini 110 metal-

body scooter and the premium Xoom 160.



HMCL’s premium network has now expanded to 100

exclusive stores. Premium

models recorded strong double-digit retail growth, with XPulse growing 31%

YoY.



Contribution of first-time buyers has increased to 80-85% from ~70% in the

festive season.



Management expects the industry to post 8-10% growth in 2H. Further, it

expects the pickup in demand to last for 2-3 years, as seen during excise rate

cuts in the past.

Update on EVs



VIDA brand continued its strong growth trajectory and registered its highest-

ever quarterly EV market share of 11.7% (+6.8% YoY), led by the success of the

VIDA Vooter VX2. VIDA VX2 is equipped with a removable battery.



HMCL has also introduced BaaS offering to customers who want to ‘pay as per

their ride’.



Market share gains for EVs were particularly strong in urban and metro markets,

with VIDA achieving a 20%+ market share in 49 towns, including in metros like

Delhi and Mumbai. Further, it is among the top 2 EV players in about 56 towns.

Update on exports



Global business showcased one of its strongest performances in recent years,

with dispatches growing 77% YoY, almost 3x the industry growth rate.



Growth was broad-based and driven primarily by key markets like Bangladesh,

Nepal, Sri Lanka and Columbia.



HMCL introduced its Euro5+ complaint vehicle portfolio, which helped the

company launch its vehicles in European and UK markets.

November 2025

AUTOMOBILE | Voices

Other Highlights



This festive period showed the highest-ever collections, bringing the receivables

for HMCL down to ~12 days from 30.



Management maintained its EBITDA margin guidance of 14-16% for the coming

quarters. Marketing spend was up +10% YoY in 1H as HMCL focused on brand-

building activities.



HMCL announced the appointment of Mr. Harshavardhan Chitale as the new

CEO,

effective Jan’26.



Hero continued to invest in long-term capability building, approving INR1.7b in

additional capex for Global Part Center (GPC) 2.0 in Tirupati, which is expected

to commence operations in FY28.

Hyundai Motor

Current Price INR 2,391

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Results Update

Update on Domestic business



SUVs accounted for 71% of total volumes in 2Q, the highest ever since

inception.



Both urban and rural markets have seen strong growth in the SUV segment,

with rural contribution rising to its highest level of 23.6% of domestic volumes in

2Q.



From Navratri to Diwali, retail sales grew 23% for HMIL. Hatchback sales grew

16%, sedans grew 47% and SUVs grew 21%. Within SUVs, Venue and Exter

outperformed with 28% growth. However, Venue growth was limited due to its

upcoming new variant launch scheduled for 4th Nov.



According to a PTI report, 80% of car buyers surveyed after the GST reforms

indicated that they used the tax relief to upgrade to a better model/brand/

premium add-ons during the festive season. 60% of buyers plan to upgrade to

higher variants within the same brand, while 46% have already shifted from

hatchbacks to SUVs.



Hybrid

penetration in the industry remained stagnant at 2.5% in Aug’25 vs.

FY25. In contrast, EV penetration has increased significantly, from 2.5% in FY25

to 6% in Au’25.



Current inventory stands at 3-3.5 weeks, down from 5 weeks earlier, and is at

normal levels after the festive season.



HMIL expects to grow in line with the industry in the domestic market in 2H,

supported by the launch of new Venue and future product interventions.

Update on exports



HMIL exports grew ~22% in 2Q, led by strong demand from key markets,

particularly in the Middle East and Africa (up 35%), while Mexico grew 11%.



This growth is expected to continue going forward, supported by the new

Talegaon plant and new launches.



HMIL expects its exports to exceed

its initial growth guidance of 7-8% for FY26.

Other highlights



The Pune plant commenced operations in Oct. Costs (employee expense,

overheads and depreciation) are likely to rise by ~20% in the near term, until the

plant ramps up and operating leverage benefits kick-in. This could impact

profitability in the near term, though operating efficiency and cost control

measures are expected to offset this impact partially.

November 2025

AUTOMOBILE | Voices



Other operating income was higher QoQ due to export duty incentives and

Tamil Nadu incentives, which are accrued annually from mid-Aug. HMIL will start

accruing Maharashtra incentives after the Pune plant is commercialized.

Discounts stood at 3.2% in 2Q, down from 3.4% QoQ. Management indicated

that HMIL would continue to focus on quality of sales and maintain a balance

between volumes and discounts. It believes discounts are likely to have peaked

and would come down in the coming quarters.

There was commodity cost pressure in 2Q, but localization and value

engineering helped to keep material costs in check. Current localization level has

improved to 82% from 78% in FY25. The goal is to reach 90% by FY30.

Royalty in 2Q stood at 2.8% of revenue.

The Nexperia chip shortage has so far not impacted HMIL’s production. It is

monitoring the stock levels with its supply chain and actively evaluating

alternate sourcing options.

Of the total capex of INR450b to be invested by FY30, 60% is allocated to

product-related expenses and 40% to capacity expansion, localization, etc.

Mahindra & Mahindra

Current Price INR 3,696

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Results Update

Auto update



MM’s 2Q volumes were partially hit by the GST transition and complex logistics

issues, but it managed to make up for the losses in Aug and Sep’25 in October.



While retail volume growth for MM was mid-to-high teens for this festive

season, growth in bookings was even stronger.



Management has maintained its mid-to-high teens volume growth guidance for

SUVs for FY26.



Further, LCV demand seems to have revived post the GST rate cuts.

Management expects the momentum to sustain in H2 and hence expects the

industry to grow in low double digits for FY26.



Exports have been strong, and the company expects the momentum to sustain

for H2. XUV 3XO and XUV7OO have witnessed strong demand in South African

and Australian markets, which have been key growth drivers for exports



The 3XO model is primarily a petrol offering, with no significant shift seen

towards the diesel variant post the GST cut. The rest of the M&M vehicle

portfolio is still predominantly (70-75%) diesel-powered.



MM has so far sold 30k EVs between 25th Mar and 31st Oct. The penetration of

e-SUVs for M&M has increased to 8.7% in 2Q vs. 7.4% for the industry.



For EVs, Pack 1 currently accounts for less than 10% of the mix, Pack 2 makes up

35-40%, and Pack 3 accounts for 50-60%.



The company has launched new versions of the Bolero and Bolero Neo, all

priced below INR1m, after the GST rate cuts.



Core automotive margins stand at 10.3%, while contract manufacturing margins

were at 0.3%. This led to the standalone auto segment margins at 9.2% for Q2.

EBITDA margin for the EV subsidiary (MEAL) stood at 5.3% post PLI incentives



Currently, only the XEV 9e is compliant with PLI, while the BE 6E is likely to be

PLI compliant by 1QFY27.

November 2025

AUTOMOBILE | Voices

Total PLI accrued in Q2 stood at INR46b, of which INR1.5b pertained to 2Q,

while the balance was for prior quarters. PLI is reported in MEAL and not in the

standalone entity.



MM does not see any impact on production due to the Nexperia issue in the

coming quarters.

FES segment update



M&M achieved 44% market share in the domestic tractor business in H1FY26

(+80bp over FY25).



In Q2, strong double-digit growth in demand was visible in states such as

Maharashtra and Karnataka, while Uttar Pradesh and Rajasthan have shown

high single-digit growth (8-9%). These states are expected to outperform, with

the geographical mix not expected to change significantly. The regional mix

continues to be favorable for MM as these are its strong markets.



The strong demand in the festive season for tractors was supported by

favorable rainfall, healthy reservoir levels, favorable terms of trade, and GST

cuts.



Management has increased its FY26 tractor growth guidance for the industry to

10-12% from 6-7%.



TMA has proposed moving TREM V norms for 25-50 HP tractors from 2026 to

2028.



Exports growth for MM in tractors has been strong, driven by a pick-up in

demand in neighboring countries (Sri Lanka, Nepal, and Bangladesh), as well as

its entry into Algeria.



Farm machinery revenue for Q2 was INR3.3b

–

a healthy 30% YoY growth.



Core tractor PBIT margin for Q2 stood at 20.6%.



Maruti Suzuki

Current Price INR 15,929

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Results Update

Update on the Domestic Market



For 2QFY26, MSIL achieved 394k retail sales Vs wholesales of 440k units.



Buoyed by GST rate cuts, retail sales during the festive period (22nd Sep to 31st

Oct’25) have been very strong, with MSIL recording 400k units sales in this

period, up sharply from 211k units YoY. Within this, small cars contributed about

250k units, reflecting 100% YoY growth.



In terms of customer profile, MSIL saw a rise in 2W customers looking to

upgrade to cars. Also, the share of cars in their overall mix has seen an increase

to 20.5% of sales from 16.5% pre-GST cut.



MSIL has also seen strong bookings in the festive period. Total bookings reached

500k units vs. 350k units YoY. Outstanding bookings currently stand at ~200k

units. Notably, bookings from the top 100 cities increased by 50%, while cities

beyond the top 100 grew by 65%.



In October, MSIL’s

retail sales grew 20% YoY. Within this, the small-car

segment

(in the 18% tax bracket) grew by 30% YoY.



Inventory stood at around 38 days at the end of Sep’25, and is expected to have

further reduced in Oct’25, given the demand surge in festive season,

with a few

models going on some waiting period.



For 2HFY26 and beyond, MSIL expects the overall PV industry to grow about 6%

YoY, while the small-car segment is projected to grow by around 10% YoY (on a

November 2025

AUTOMOBILE | Voices

small base). Sedan growth is currently outpacing SUV growth for the industry,

largely driven by the strong performance of the Dzire.



Management reiterated that reaching a 50% market share in PVs remains its

long-term objective. MSIL earmarked eight new SUV launches until 2031

(excluding Victoris), which will help the company move towards this target.

Further, it would also be working to achieve a 10% EBIT margin in the long run,

which is Suzuki Motor Corporation’s guidance for the whole group as well.



MSIL’s

dealer & service network stood at 5,640 touchpoints across 2,818 cities.

Update on Victoris



The recently introduced Victoris is expected to play a significant role in

strengthening MSIL’s position in the SUV category. The model comes equipped

with a comprehensive suite of new-age

features, including “Theatre on Wheels”

sound and lighting experience, a Smart Play Pro X touchscreen infotainment

system with over-the-air (OTA) updates, and a smart power tailgate with

gesture control. In terms of safety and technology, Victoris offers Level 2 ADAS,

six airbags, an HD 360-degree camera, and a five-star Bharat NCAP safety rating

for both adult and child occupant protection. The vehicle also features the next-

generation Suzuki Connect telematics system, incorporating e-Call functionality

and over 60 connected features.



As of end-October, the Victoris had received around 30,000 bookings, reflecting

strong initial demand.

Update on Exports



Exports volumes grew 42.2% YoY to 110,487 units in Q2. Exports revenues for

2Q exceeded INR83b.



MSIL’s PV exports share stood at 45.4% for Q2



Fronx has been India’s first model to complete 100k units of exports in a short

time.



E Vitara exports has ramped upto over 7k units so far.



MSIL expects to exceed its FY26 export guidance of 400k units for FY26E, having

already exported over 200k units in 1HFY26.

Update on operating performance



Margin tailwinds on a sequential basis included 50bp from lower operating

expenses and around 110bp from operating leverage, which was partly offset by

higher discounts (75bp), price correction measures on select models (20bp),

increased ad spend (15bp), and commodity and forex movement (30bp).



Depreciation expenses increased during the quarter, due to the ramp-up of the

Kharkhoda plant, as well as the new Victoris launch.

Samvardhana Motherson

Current Price INR 109



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Results Update

Operation updates:

SAMIL currently has 10 greenfield projects at various stages

of completion spread across India, Poland, the UAE, and Morocco. During the

current quarter, two of these were operationalized

–

one for the wiring harness

division and another for consumer electronics. The remaining are expected to

start operations over FY26-FY28: Technology and Industrial Solutions greenfield

project SOP planned by 4QFY26, Lighting and Electronics by 2QFY27, Modules

and Polymers and Elastomers by 1QFY27, and Vision Systems by 1QFY28.

November 2025

AUTOMOBILE | Voices

SAMIL

additionally announced three strategic acquisitions during the quarter.

The acquisition of Yutaka Giken deepens their partnership with Honda Motors

while simultaneously adding advanced capabilities in motor rotors, stator

assemblies, drive and brake systems, and thermal management solutions. The

purchase of Rubbertec in Australia enhances its elastomer product portfolio and

strengthens vertical integration within the polymer business. The acquisition of

Rider Dome in Singapore marks SAMIL’s entry into Advanced Rider Assistance

Systems (ARAS) for the two-wheeler segment, positioning it for growth in

intelligent safety systems.



SAMIL outperforms industry:

While SAMIL revenue grew 8.5% YoY in 2Q, the

global LV market growth stood at ~3%. Revenue growth included the benefit

from currency translation (Euro-INR) of about 3% and the Atsumitec acquisition

(~3%). However, when one compares the sharp decline seen in the US Class 8

market (which was down 25% YoY) where SAMIL has an exposure, it is clear that

SAMIL has outperformed the industry even on a like-for-like basis.



Financial performance and capital allocation:

Effective net debt rose to

INR116b (vs. INR113b QoQ) due to expanded working capital and sharp forex

volatility; leverage ratio stood at 1.1x (flat QoQ). Management expects the same

to reduce further to 0.9x by FY26-end.



Capex guidance is maintained at INR60b for FY26, with current quarter capex

standing at INR14.5b (INR26.5b for 1HFY26).

Segmental updates



Wiring Harness:

Revenue grew 4.7% YoY to INR85.5b, with margins slightly

lower at 10.5% (vs. 11.2% YoY) due to weak demand in the US Class 8 market,

and early-stage greenfield integration cost. Revenue growth was supported by

content increase and the ramp-up of new programs. One new greenfield facility

is expected to start SOP in Q1FY27.



Vision Systems:

Both revenue and margins were flat YoY at INR50.8b and 9.2%

respectively. New model launches and OEM programs in Europe and Asia helped

maintain the revenue trajectory. A new greenfield plant is planned in the UAE

for 1QFY28.



Integrated Assemblies:

Revenue was up 8.2% YoY at INR25.8b; margins

expanded 30bps YoY to 11.8% on operating efficiencies and new order wins.

Three greenfield sites in China and Mexico are coming up to support

new/existing customers.



Emerging business margins declined 380b YoY to 9.5% due to:

1) start-up costs

of greenfields at the Consumer Electronics division; 2) weak business mix.



Modules and Polymers business grew 12.3% YoY to INR153.7b. Strategic

acquisitions in Europe, internal restructuring, and completion of transitory work,

coupled with the use of automation and AI for efficiency gains, have led to this

robust growth. Margins remained flat YoY at 7.4%.



Consumer Electronics:

The Consumer Electronics vertical achieved a 36%

sequential revenue increase (September run rate) and continues to ramp up

production. Two plants are operational, and Motherson’s largest-ever

facility is

scheduled for SOP by 3QFY27.



Aerospace:

The Aerospace business achieved 37% YoY revenue growth in H1

FY26. SAMIL has been empaneled as a Tier-1 supplier with Airbus, opening high-



November 2025

AUTOMOBILE | Voices

value complex RFQ opportunities. With 17 facilities across four countries, the

division offers near-shore and cost-efficient manufacturing options to OEMs.



Aerospace and consumer electronics combined booked business reached

USD3b, up from USD2.7b in Mar’25.

Other key takeaways



Order book worth USD87.2b has been generated with USD3b in non-auto

related orders. EV share in automotive booked business has dipped from 24% at

the end of FY25 to 22% in this quarter. The primary reason for this dip was a

slowdown in EV adoption.



SAMIL has incurred ~USD10m in tariff-related costs. Given that most of their

facilities are close to customers, their impact has been minimal, considering the

global scale of their business.



SAMIL is currently supplying to 7 out of the top 10 new energy vehicle Chinese

players and is actively supporting them in their production outside China.



Management noted that the Nexperia chip crisis will have minimal impact on

their business as customers are actively working around it, and they remain

optimistic about its resolution soon.



The company has increased its exposure to Gen-AI by setting up a global

capability center that is expected to open by Q4FY26. They plan to add ~5000

engineers over the course of the next 5 years.

SONA BLW Precision

Current Price INR 489

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Business update



Growth in 2Q primarily came from the integration of the tractor division and

healthy demand in traction motors, while other segments saw flat to moderate

growth.



BEV revenue fell 17%, with BEV contribution falling to 30% in 1H from 36% YoY.

The decline was primarily due to issues faced by a major customer in a specific

EV model that saw a fall in production volumes.



Hybrid revenue share stood at 24% of the automotive revenue.



Margins were lower YoY due to an adverse product mix, lower operating

leverage and the integration of the railway business.



RoCE and RoE dipped temporarily due to the recent capital raise, but

management expects them to improve going forward.



Three direct driveline competitors in the EU have filed for insolvency in the past

six months. Sona BLW is emerging as a key beneficiary of the same, as it is

seeing a meaningful rise in customer RFQs for new business.



Sona Comstar and JNT have mutually agreed to put their proposed joint venture

in China in abeyance due to geopolitical challenges.



Demand uncertainty persists given the evolving tariff situation in the US.

However, the US govt’s decision to relax tariffs for OEMs that have assembly

plants in the US comes as a relief to many of Sona's key OEMs in the US.



Margin guidance (with Railway division merger) stands at 24-26% range.

November 2025

AUTOMOBILE | Voices

Order book update



The total net order book stood at INR236b as of 2Q end, with EVs forming 70%

of the order book. As a prudent measure, management has adjusted its order

book for orders that seem difficult to fructify due to global headwinds.



Sona Comstar now has 62 active programs across 32 customers, with 29

programs yet to commence production. The company added two new EV

programs in 2Q.



It received its first order for the driveline plant in Mexico to supply differential

assemblies to an existing North American OEM of recreational off-highway

vehicles. This program added INR2.6b to the order book and is expected to start

production in 2QFY28. This is the second order from the same customer,

validating its decision to set up the Mexico plant.



Sona has been nominated for two programs to supply integrated motor

controller modules for active suspension systems: 1) One from an existing Asian

EV OEM (INR6.4b order), 2) the other from a European luxury performance car

OEM (INR1.8b order).



These two programs are expected to start production in 2QFY27. The orders will

be supplied from Sona to ClearMotion and then to the end customers,

showcasing the increasing adoption of its suspension motor systems.



The railway order book stood at INR13b and these orders are likely to be

executed within the next 12 months.

Customer diversification



Top 5 customers contributed 51% of 2Q revenue, down from 62% in FY22. Top

10 customers contributed to 72% of revenue, down from 80% in FY22.



The largest customer’s share in FY25 has come down from 23% to 6% in 2QFY26,

indicating a strong ramp-up in other customers. Similarly, the current largest

customer, two out of the top 5, and three out of the top 10 customers were not

present in the customer base in FY22.

External headwinds



Impact on Sona due to the ongoing Nexperia chip shortage is limited as this has

more impact on European OEMs.



The Novelis aluminum plant fire in the US has affected Ford’s production,

including F-Series, for which Sona is a supplier. This is expected to have some

impact on supplies to this OEM in the near term.

Technological developments and innovations



Sona Comstar has signed an MoU with Neura Robotics (Germany) to jointly

develop advanced technologies, components, and subassemblies for robots and

humanoids targeted at India and other agreed markets. Management expects a

meaningful ramp-up in this segment after five years. However, the addressable

market for these products could be bigger than the automotive industry size in

the next 15 years.



The company successfully developed, tested, and validated a rare-earth-free,

ferrite-assisted synchronous reluctance motor for electric three-wheelers and

light commercial vehicles. This includes both mid-drive and hub motor

configurations. The new motor is not dependent on China for raw materials and

offers performance comparable to ferrite motors. The ferrite free motor has

lower temperature-related degradation, making it a viable and cost-effective

alternative.

November 2025

AUTOMOBILE | Voices

Update on railway business



The company remains optimistic about medium-term potential in the railway

segment.



New products are in testing or development phases, and strong growth is

expected over the next five years.



The company sees a large opportunity to improve the cash conversion cycle in

this vertical.

Tube Investments

Current Price INR 3,030



Buy

Click below for

Detailed Concall Transcript &

Results Update



Engineering:

The engineering segment witnessed a 10% YoY growth in volumes,

driven by sustained demand from both automotive and non-automotive

customers. Revenues grew 4.4% YoY to 13.8b. Capacity utilization remains

within the 80-85% range for existing plants, with sufficient headroom from

recently commissioned facilities at Nashik (for cold rolled strips) and Phaltan,

ensuring adequate capacity for the coming 1-2 years.

Metal Formed:

Revenues for this quarter in the metal formed segment grew

marginally to INR4.1b. Market share in auto chains and industrial chains remains

strong, with a marginal improvement YoY. TIINDIA currently commands nearly

50% market share in the INR9b industrial chains segment.

Railway orders:

The railway order at the Metal Formed division, which was

expected to be commissioned by 4QFY26, is likely to see a delay of one quarter

due to a lack of readiness among other suppliers.

Mobility:

The mobility business’ revenue grew by a healthy ~16% YoY

to INR1.9b

in Q1. Growth was primarily led by focus on premium and specialized bikes, the

launch of e-bikes, and increased traction in the fitness and leisure segment.

Management expects the growth momentum to sustain, which is likely to help

sustain margins as well.

EV segment:

TI Clean Mobility (TICM) reported its best-ever quarter in Q2 FY26,

with revenue rising 21% YoY and 31% sequentially.

Update on e-3Ws:

E-3W volumes stood at 2,082 units in 2Q, modest growth of

2% YoY. This was partly led by some demand moderation in the 3W EV segment

post GST rate cuts, as demand was seen shifting a bit to the 3W diesel segment.

Apart from this, some product-related issues at the TI end also impacted their

sales, which have now been addressed. On the back of this and the expected

launch of a model in the cargo EV segment, management expects the 3W EV

segment to see a ramp-up from 4Q onwards.

Update on the e-truck segment.

The electric heavy truck segment maintained

solid momentum, with 2Q volumes of 44 units and continued market leadership

with over 50% share despite intensifying competition from 7–8 other players.

TICM expanded its product range with the launch of a 4x2 variant and battery-

swapping technology for both 4x2 and 6x4 models, and plans to introduce an

electric tipper in 4QFY26. Customer feedback and repeat orders remain strong.

Update on e-SCVs:

The electric small commercial vehicle (SCV) business

recorded volumes of 167 units in 2Q, showing healthy sequential growth and

positive customer reception. The segment has been relatively insulated from the

impact of GST cuts on ICE vehicles, with TCO parity achievable within two to

November 2025

AUTOMOBILE | Voices

three months. TICM continues to focus on expanding applications and improving

operational efficiency, viewing SCVs as a key medium-term growth driver within

its clean mobility portfolio.

Exports:

Export contribution currently stands at 15% of standalone revenues. Q2

exports were slower, particularly in the US, which saw a 10% dip and

contributed to ~4-5%

of TII’s overall revenue. Volumes

were hit by higher import

tariffs.

TI Medical:

Performance was flattish YoY, primarily due to a temporary

slowdown in September from GST-related dealer destocking and weaker

hospital demand. Management expects recovery from November–December

2025, aided by new product introductions. Growth target of 15% for the near

term was maintained, with 25% CAGR over the long term as new verticals are

launched beyond sutures.

CDMO business:

Of the INR3b investment planned, INR2.5b has been deployed

already, while the remaining will be invested over the remainder of this fiscal

year, provided certain milestones are achieved.

Future capital allocation:

For FY26, capex for the base business is expected to

be at INR3-4b. They would look to invest about INR4b between their CDMO

business and TI Medical, and INR2-3b will be earmarked for potential M&A

opportunities in adjacent sectors.



TVS Motors

Current Price INR 3,479

Click below for

Detailed Concall Transcript &

Results Update

Buy

Update on domestic market



TVS ICE volumes grew 23% in Q2FY26, outperforming the industry’s overall

growth rate of 11%.



During the festive season, on a like to like basis, TVS posted a 32% YoY growth in

retail volumes, outperforming the industry’s 24% growth.

Industry growth was

supported by strong demand in both rural (+24%) and urban markets (+26%).



On the back of benefits from GST cuts, management expects the industry

demand momentum to sustain, and projects the industry to post 8% growth in

H2. Management remains confident of outperforming the 2W industry going

forward.



Jupiter 125 now contributes to 35-36%

of the brand’s overall volumes.



TVS added 100 touchpoints in the domestic 3W network in CY25.



In terms of dealer stock, only EV variants are facing a stock crunch with dealers,

given the ongoing shortage of rare earth magnets.

Update on EVs



The EV industry in India grew by 8% in Q2FY26, despite facing constraints due to

the magnet shortage, which affected production and supply.



EV revenue for TVS stood at INR12.7b for Q2FY26, majority of which is eligible

for PLI. While it is delivering positive contribution margins, it remains negative

at the EBIDTA level.



TVS is gaining strong traction in the 3W EV segment, having already doubled its

market share to 11%.

November 2025

AUTOMOBILE | Voices

Update on new product launches



Ntorq 150 has been launched as the most powerful scooter in its category,

positioning itself as the first hypersport scooter. With a top speed of 104 km/h,

it is the quickest in its class, receiving excellent feedback from riders.



In October, TVS has launched

a new Raider, featuring ‘boost mode’ with iGo

Assist, dual front and rear disc brakes, and single channel ABS.



To celebrate 20 years of the Apache series, TVS introduced an exclusive series in

the RTR 150, 180, 200, 310, as well as RR-310.



TVS launched Orbitor, a new electric vehicle (EV) aimed at attracting young,

urban customers. Orbitor features an impressive 158 km range, hill hold assist,

34L boot space, and a 14-inch front wheel. Priced at INR99,900, it has initially

been launched in Maharashtra and Karnataka, with plans for pan-India

availability by Q4FY26.



TVS also unveiled King Cargo HD EV, an electric vehicle designed for urban

logistics and cargo mobility. It features a high load capacity, a 6.6ft load deck, a

spacious cabin with improved ventilation, and a power gear mode to optimize

performance. With a top speed of 60 km/h and a range of 156 km, King Cargo

HD EV is designed to cater to the growing demand for efficient urban cargo

solutions. Additionally, TVS Connect is included to enhance operational

optimization and fleet management, aligning with the company’s focus

on smart

mobility solutions.

Update on Exports



Exports revenue stood at INR28.8b in Q2. Its USD-INR realization was flat QoQ at

INR86.4.



TVS exports grew 31% YoY in Q2FY26 vs industry growth of 26%. TVS has

successfully expanded its footprint in both Africa and LATAM. While the

company’s presence in LATAM remains relatively small, it is outperforming the

industry and remains confident of sustaining its outperformance in the region

over coming quarters.



TVS has established a solid presence in several key Asian markets, particularly in

Sri Lanka and Nepal, both of which have shown strong performance.

Additionally, the company is expanding its footprint in Bangladesh, further

solidifying its position in Asia.

Update on subsidiaries and investments



TVS Credit’s total book stood at INR278.1b, with a customer base of 21.3m. PBT

for Q2 stood at INR2.8b, up 28% YoY.



In Q2FY26, TVS invested INR5.5b towards Norton, e-bikes, and for setting up an

office in Dubai.



Norton will unveil its first bike at the EICMA in Milan, Italy, next week, scheduled

for launch in India in April 2026. The strategy for Norton’s entry into the Indian

market will be differentiated from that of TVS, reflecting a more targeted

approach for this premium brand. In the European Union, Norton has already

begun laying the groundwork for its distribution plans.

Other highlights



Spares revenue in Q2FY26 stood at INR10.73b.



There was a 0.5-0.6% increase in input costs in Q2. TVS has implemented price

hikes to offset the same. The company expects a slight rise in commodity costs

in Q3.

November 2025

CAPITAL GOODS | Voices

CAPITAL GOODS



| Voices

Management maintained a broadly positive outlook, highlighting an expected revival in the domestic capex

cycle, led by power generation demand, steady industrial recovery, and healthy momentum across railways,

marine, and infrastructure. The inquiry and tender pipelines remain strong across T&D, hydrocarbons, metals,

utilities, sugar, defense, petrochemicals, oil & gas, and green energy, supported by rising data-center cooling

needs and expanding clean-energy capacity. Export sentiment is mixed, with traction seen across MENA and

select global regionals, though for some companies, overall export order build-up has been sluggish for few

due to geopolitical uncertainty, with some revival expected as tariff-delayed finalizations resume. Powergen

market demand has surprised, and going ahead, companies have indicated that growth will be volume-driven

as prices have more or less stabilized. For the Defense sector, a few large-sized orders were booked during the

quarter, and more are expected to be finalized by the end of FY26. Companies have planned meaningful capex

over the near-to-medium term to expand capacity, backward integrate, and upgrade manufacturing, while

order inflows are expected to strengthen in 2H as pending awards materialize. Overall, management sees

supportive domestic demand, private and government capex revival (though both remain selective), and

improved traction in export markets as key tailwinds.

Outlook



KEY HIGHLIGHTS FROM CONFERENCE CALL

Order inflow growth is expected to exceed the

previous guidance of 10% YoY in FY26.

Revenue growth guidance stands at 15% YoY.

Core E&C margin is targeted to be at 8.5%.

NWC-to-revenue ratio guidance stands at 12%

QCO-related challenges continue to persist.

CY25 PAT margin guidance is expected to remain

within the 12-15% operating band.

The easing of income tax rates and GST reforms

is expected to increase consumption in the

coming quarters, leading to a pickup in private

sector capex.

FY26 revenue guidance is >25% for FY26.

PBT margin is expected to improve at least 50bp

YoY in FY26.

EBITDA margin is likely to trend towards 9% in FY27.

The order inflow guidance is >INR250b in FY26.

Consolidate/standalone NWC is expected to remain

below 100/90 days.

FY26 revenue growth guidance is ~15% YoY, with an

EBITDA margin of 8%,

implying >8.5% margin in

2H.

Net debt is projected to reduce to INR50b, and

interest cost will remain at ~2.5% of sales.



Larsen and

Toubro



ABB India



Domestic Capex Cycle

The prospect pipeline for 2HFY26 stands at

INR10.4t (+29% YoY).

Of this: Infra is INR6.5t (+20% YoY), hydrocarbon

INR2.9t (+30% YoY), carbon-lite solutions INR0.5t

(+92% YoY), green and clean energy INR0.2t, and

heavy engineering INR0.3t.

Tailwinds include private consumption, government

capex, and moderating inflation, while headwinds

include trade uncertainty, prolonged geopolitical

tensions, and foreign exchange volatility.

Government-led capex in infra is expected to

continue.



Siemens Ltd



Kalpataru

Projects



The T&D tender pipeline for the next 12-18 months is

INR1.5t, which includes INR500b from domestic HVDC.

The LMG subsidiary’s order backlog is expected to

expand at a 20-25% CAGR over the next 2-3 years.



KEC

International



The tendering pipeline stood at INR1.8t, led by T&D

and civil segments,

with T&D’s share at ~INR600b-

650b.



FY26 capex is estimated at INR4b.

Both Powergen demand and overall data center

demand are expected to remain strong.

In Industrials, demand from construction is

expected to revive, while marine and railways are

expected to remain strong.

The company remains cautious on exports, given the

ongoing geopolitical uncertainties.

Powergen demand in the domestic market is likely to

be driven by volumes and an increased share in HHP.

Demand in the industrial business is expected to

remain broad-based going forward.



Cummins



The company has expressed double-digit revenue

growth guidance for FY26.



Margins are expected to hold steady.



KOEL



The company is targeting

USD2b by FY30 (‘2B2B’

strategy).

It remained focused on the planned rollout of

products in 3QFY26.



November 2025

CAPITAL GOODS | Voices



Export demand remains strong in the MENA region.

Hitachi Energy



Margins are expected to be in double digits.

The company aims to utilize QIP funds toward

capacity enhancement, factory expansion, purchase

of machinery, safety improvements, and

infrastructure upgrades of its Business Units. FY26:

INR7.6b, FY27: INR7.2b, FY28: INR2.7b, and FY29:

INR2.6b.

Capex guidance stands at INR10b for FY26, and

another

INR14b is expected to be invested over the



Bharat

Electronics



Bharat

Dynamics



Zen

Technologies



FY26 order inflow guidance is expected at

INR270b (excluding QRSAM).

FY26 revenue growth guidance is 15%, with

EBITDA margin of >27%.

Export revenue is expected to reach 5% of total

revenue in the next 2-3 years and 10% over the

long term.

R&D investment stands at >INR16b.

The company expects order inflows worth

INR200b over the next 2-3 years.

Annual revenue is expected to reach INR100b by

FY30-31.

Margins are expected to expand.

The company aims for 50% revenue CAGR,

achieving cumulative revenue of INR60b by FY28.

It does not anticipate any threat of margin being

compromised.

The company expects revenue and PAT to grow

YoY despite one-off impact in 2Q, with a stable

margin profile.

Order inflow growth guidance stands at 20% YoY for

FY26.

Industrial infra

margin profile for new projects is

5-8% for domestic, 10%+ for international.

The company has planned an investment of INR7.5b

in the green solutions business over the years.



next three to four years for a new Defence System

Integration Complex (DSIC) in Andhra Pradesh,

covering 920 acres.



FY26 capex guidance stands at INR2b.



Inflows are likely to pick up in 2H as pending

INR6.5b simulator orders and anti-drone orders

move forward.

The company has a reasonable pipeline across the

power, metals, refining, petrochemical, and

fertilizer sectors. It experiences steady traction

internationally in HRSGs, oil and gas boilers, and

data center power projects.

Industrial Products:

Data center cooling demand is

rising, and the services share is targeted to reach

mid-teens (from low-doubles).

Green solutions are expected to exceed 300 MW

capacity by FY26, with an additional 200-350 MW by

FY27. Investment in this segment stands at ~INR7.5b.

The domestic inquiry pipeline increased ~86% YoY,

driven by strong traction across key sectors,

including steel, cement, sugar, and drive turbines

for the utility power segment.

The finalization of export orders, which was

delayed due to tariffs, is expected to resume soon.



Thermax



Triveni Turbine

Revenue growth is expected to be back-ended, with

strong growth anticipated in 2H, leading to overall

YoY growth in FY26.



ABB India

Current Price INR 5,080



Buy

Click below for

Detailed Concall Transcript &

Results Update



Order Inflows and Order Book:

Base orders grew 13% YoY, reflecting healthy

growth across all business divisions, while total orders declined 3% YoY due to

the absence of large orders in the current quarter. The order backlog stood at

INR99b, providing good visibility for the coming quarters. The backlog comprises

about 30% large orders and 70% smaller orders that are executed on a month-

to-month basis. ABB stated that there are no slow-moving or non-moving orders

and that all backlogs are lined up for execution over the next few quarters.

Material Costs:

The costs increased due to changes in product mix, competition

intensity, and the introduction of QCO certification requirements. The company

noted that the post-Covid pricing premium that existed in prior quarters has

November 2025

CAPITAL GOODS | Voices

now dried up, contributing to a higher material cost ratio. The increase also

reflects portfolio shifts and a slowdown in certain customer decisions affecting

mix and pricing.

Margins:

Profit before tax margin stood at 16.4%, compared with 20.5% in

3QCY24 and 14.9% in 2QCY25. The company attributed the decline to the mix of

revenues, competitive pricing, forex impact, and QCO-related costs. The impact

on margins was quantified as approximately 1% from mix, 1–1.5% from pricing,

0.75–0.8% from QCO, and 0.6% from forex, resulting in a gap of about 3% versus

earlier quarters.

Prospect Pipeline:

The company reported high engagement in data centers,

electronics, and renewables, which continue to provide long-term growth

opportunities. It observed moderate growth in mid-tier sectors and low growth

in others that tend to rotate over time. Within renewables, the company

highlighted opportunities in battery energy storage systems (BESS) and green

hydrogen, while rail and metro projects continue to receive strong investment

support. Co-location data centers were reported as growing strongly, while

hyperscale data centers saw sluggish demand in the quarter.

Competition from Chinese Players:

The company mentioned that with the

recent improvement in India–China trade relations, more business exchanges

are taking place between the two countries. It stated that the impact of Chinese

imports into India remains unclear and that customers in process industries are

evaluating how this may affect pricing and demand conditions. The company

added that the extent to which Chinese imports may enter the market could

influence the future demand curve of domestic industries.

NVIDIA Opportunity:

The company confirmed its global engagement with

NVIDIA to develop solid-state drives and power solutions for AI data centers. It

stated that all technologies developed by ABB globally are available to

customers in India, provided there are no geographic restrictions on their

application.

Pricing Impact:

The company stated that competition has intensified across

multiple segments, and the price premium of 1–1.5% enjoyed earlier is no

longer available. It also noted that market dynamics have slowed decision-

making in certain orders, which has limited pricing flexibility in the near term.

Forex Losses:

The company reported a foreign exchange impact of about 0.6%

on profitability. It stated that, unlike the previous quarter, there were no

significant forex one-offs during 3QCY25. The forex exposure primarily affected

divisions with high import content, such as Motion and Electrification.

QCO Impact:

The QCO introduced by the Indian government requires BIS

certification for locally manufactured components. Due to limited testing

capacity and long certification timelines, the company has been using imported

components that are already certified globally. This has led to higher material

costs and forex exposure. The company estimated the margin impact at 0.75–

0.8% and expects the issue to continue for the next three to four quarters. It

added that the deadlines for implementation are subject to government

extensions due to industry-wide certification bottlenecks.

US Tariff Impact:

The company indicated that the US tariff measures have

created challenges for India’s textile sector, but India is diversifying its export



November 2025

CAPITAL GOODS | Voices

markets and the government is supporting the sector through initiatives such as

the PLI scheme and GST rationalization.

Guidance:

For the near term, the company stated that tailwinds include private

consumption, government capital expenditure, and moderating inflation, while

headwinds include trade uncertainty, prolonged geopolitical tensions, and

foreign exchange volatility. It noted that QCO-related challenges are expected to

take three to four quarters to resolve. The company reiterated that PAT margins

remain within the 12–15% operating band.



Bharat Electronics

Current Price INR 421



Buy

Click below for

Results Update



Key order inflows announced so far:

Key orders worth ~INR72b since the start

of 2QFY26 include: 1) navigation systems, jammers, seekers, and antenna units

worth INR5.6b; 2) Atulya air defense radar worth INR16.4b; 3) optronic systems,

IFMIS software, and communication equipment worth INR5.5b; 4) data center

and electronic systems worth INR6.4b; 5) IT infra, cyber security, and ESM

systems worth INR7.1b; 6) EW and defense network upgrades, tank subsystems,

and TR modules worth INR10.9b; 7) tank and communication systems, ship

networks, train collision avoidance system for Kavach, and jammers worth

INR5.9b; 8) sensor and fire control equipment for Cochin Shipyard worth

INR6.3b; and 9) SDRs, tank subsystems, and missile components worth INR7.3b.

We bake in order inflows of INR270b/INR584b/INR338b for FY26/27/28E.

Order book mix:

BHE’s total order book stands at about INR756b, distributed

almost equally across the Army, Navy, and Air Force. The top seven projects

including LRSAM, electronic fuzes, BMP-2 upgrade, and Akash Army systems,

account for ~INR250b.

2HFY26 pipeline:

Order prospects for 2HFY26 are encouraging, with several

contracts in advanced stages of finalization. These contracts include emergency

procurement worth INR20b, a QRSAM order, next-generation Corvette

subsystems, Shatrughat, Samaghat, mountain radar, jammers, and LCA avionics

packages. Together, these projects are expected to drive the targeted inflow for

the year.

Key projects executed in 1HFY26:

During 1HFY26, BHE executed several large

programs including LRSAM, Him Shakti, Battle Surveillance System, Akash Army,

LCA Mk1A avionics, Lynx U2 Fire Control System, and Shakti EW systems. These

seven programs together contributed roughly INR40b in revenue.

Execution visibility:

Execution momentum is expected to remain strong in the

second half as major programs continue at full pace. The company is focused on

timely deliveries and expects to achieve 90-100% of planned commitments for

FY26.

Project Kusha progress:

BHE continues to work closely with DRDO on Project

Kusha, where it is developing radar and control subsystems. Prototype

development is expected to take another year, followed by system integration

and trials. The first production order is anticipated by Dec’29 and is expected to

be larger in value than the QRSAM contract.

QRSAM timeline:

The QRSAM order is likely to be finalized by Mar’26, with an

execution timeline of about five to six years. The program will involve parallel

November 2025

CAPITAL GOODS | Voices

production for the Army and Air Force. The company has already aligned its

stakeholders, including BDL and other subsystem partners, to ensure timely

readiness for production once the contract is awarded.

LCA opportunities:

Management expects to receive orders worth about INR25b

from HAL for avionics packages related to the additional 97 LCA Mk1A order.

The company is well-positioned in this program as a key supplier of indigenous

avionics and radar modules.

UAV development:

BHE is advancing the Archer UAV program with DRDO’s ADE

and has completed successful prototype trials. Archer is a smaller UAV, distinct

from the MALE UAV program being developed by L&T and General Atomics. BHE

also plans to participate in the upcoming Archer NG program, expanding its

presence in the fast-evolving unmanned systems domain.

Capex expansion:

BHE plans to invest around INR14b over the next three to four

years to establish a DSIC in Andhra Pradesh. The facility will handle system

integration, testing, and validation for QRSAM, as well as other unmanned,

radar, and missile programs.

Guidance:

Management has maintained its guidance of revenue growth of over

15%, an EBITDA margin above 27%, order inflows exceeding INR270b excluding

QRSAM, capex of INR14b, and R&D investment above INR16b, with the defense-

to-non-defense business ratio expected to remain around 90:10. Export revenue

is targeted to reach 5% of total turnover within the next two to three years with

long-term target set at 10%.



Cummins India

Current Price INR 4,250



Buy

Click below for

Detailed Concall Transcript &

Results Update



Domestic Powergen:

Sales rose 49% YoY to INR1.3b and 27% QoQ, led by strong

execution in multiple project segments. Excluding data centers, core Powergen

grew about 20% YoY, supported by broad-based demand across low, medium,

and high horsepower gensets used in hospitals, real estate, and commercial

buildings. Pricing has stabilized post-CPCB IV+ transition, though competitive

intensity remains elevated across all horsepower segments.

Data centers:

The company stated that around 40% of Powergen sales in

2QFY26 came from data centers, mainly due to lumpy project execution and site

clearances completed during the quarter, rather than sustained demand. The

spike was driven by strong execution of large hyper-scaler projects, while

demand from co-location players remained steady. The company noted that

such large projects are not evenly spread across quarters and depend on

execution schedules and clearances. While several data center announcements

indicate long-term

potential, the company believes India’s data

center growth is

still at an early stage compared to the US, Europe, and China.

CPCB IV+ Products:

Volumes in low and medium-horsepower gensets have

returned to pre-CPCB IV+ levels. Pricing has normalized following the transition,

but remains under pressure

amid increasing competition. The company’s service

network was upgraded ahead of the Jul’23 CPCB IV+ rollout to handle

technologically complex products. It highlighted that aftermarket revenue gains

are derived from a wide range of engines (CPCB II and IV+, as well as rail,

November 2025

CAPITAL GOODS | Voices

marine, and mining), so there is no distinct margin uplift solely from CPCB IV+

products.

Industrial Segment:

Industrial segment sales fell 5% YoY to INR3.9b, hit by

extended monsoons delaying construction activity and slower coal mining

tenders. Rail performed well with smooth execution, while mining remained

weak due to limited tender openings. Within the industrial portfolio, marine

activity has picked up, supported by increased government procurement

interest, though it still forms a small portion of overall industrial revenue.

Demand recovery in the segment will depend on a pickup in construction

activity and tender flow in mining.

Distribution Segment:

Distribution revenue increased 21% YoY to INR8b and 2%

QoQ, supported by a larger installed asset base and strong maintenance

demand from industrial and powergen clients. Growth sustainability depends on

continued economic activity and asset utilization. The company sees no major

increase in competition from third-party service providers, which remain stable.

The business remains largely domestic and localized, with limited export scope.

Exports:

Exports increased 24% YoY to INR5.5b, driven by strong demand from

Europe and the Middle East across both high and low horsepower segments.

High horsepower exports were INR2.8b (+40% YoY) and low horsepower

INR2.2b (+11% YoY). The company highlighted softening order intake due to

inventory correction at channel partners, particularly in the current quarter.

Export growth prospects remain cautious given regional headwinds—credit

availability in Latin America, competitive pressures from Chinese players in

Africa, and slower economic growth in Europe. The company reiterated that

data center exports are limited, as production for such projects typically occurs

close to the end markets (US, Europe).

Guidance:

Management maintained its double-digit revenue growth outlook for

FY26, driven by strong domestic demand in Powergen, industrial, and

distribution segments. Exports will be pursued cautiously amid geopolitical and

trade uncertainties, while margins are expected to hold steady on sustained

volumes, a favorable mix, and cost efficiencies.



KEC International

Current Price INR 781



Buy

Click below for

Detailed Concall Transcript &

Results Update



TAM:

KEC delivered a strong performance in 2QFY26, with revenue of INR60.9b,

up 19% YoY, driven by robust execution in the T&D and cable businesses. YTD

order inflows rose 20% YoY to INR160b, with 74% contributed by the T&D

segment across domestic and international markets. The company also holds L1

positions worth INR50b, taking the total order book plus L1 to INR440b. The

overall tender pipeline of INR1.8t, led by T&D and civil, provides strong growth

visibility and long-term expansion opportunities.

T&D:

The business remained the company’s primary growth driver, delivering

revenues of INR40.8b, up 44% YoY, while maintaining double-digit EBITDA

margins. The segment secured orders worth INR120b in 1HFY26, including its

largest-ever EPC order of INR31b in the UAE and an INR10b substation order in

Saudi Arabia. SAE Towers reported INR4.3b in revenue, up 35% YoY, reflecting

strong traction in international markets. Capacity expansions at Dubai, Jaipur,

November 2025

CAPITAL GOODS | Voices

Jabalpur, and Butibori (Nagpur) are scheduled to conclude by FY26-end,

enhancing both domestic and global manufacturing capacity. The T&D order

book plus L1 position stood at INR290b, and the company reaffirmed its outlook

of sustaining double-digit margins in this segment.

Cables:

The division recorded INR5.2b in revenue, up 19% YoY, supported by an

improved product mix and cost optimization. Profitability continued to improve.

The company’s capital investment for e-beam

and elastomeric cables is

progressing as planned, with commercial production expected to commence by

the end of FY26. The e-beam plant, which requires additional regulatory

approvals, will be commissioned in 1QFY27, while the elastomeric cable line will

start in 4QFY26. Management stated that these new products would cater to

defense, automotive, and railway applications, and will enhance margins once

operational. The EHV line is already fully booked and operational.

Civil business:

The segment reported INR9.7b in revenue in 2Q, impacted by

monsoon delays, labor shortages, and slower payments in water projects. The

order book plus L1 exceeds INR100b, with FY26 revenue expected at ~INR50b

(~15% YoY growth). Margins remain in low-single digits but are guided to

improve to high-single digits by FY27 as execution scales up in higher-margin

building, factory, and data center projects. The company has exited low-margin

metro and infra projects, focusing instead on larger residential, industrial, and

selective water contracts to enhance operating leverage.

Railways:

The business has an order book and L1 of INR30b and is expected to

achieve INR20b in revenue in FY26. The segment is under consolidation, with a

strategic shift toward technology-driven sub-segments like signaling, TCAS/

Kavach, and BLT systems, both in India and overseas (Bangladesh, Middle East).

Water:

Receivables in the water business stood at INR8.8b as of Sep’25, slightly

higher than INR8.5b in Mar’25. Payments from Madhya Pradesh remain steady,

while Odisha has been slower though improving. Execution continues on a cash-

and-carry basis, limiting further exposure. The Jal Jeevan Mission order backlog

stands at INR16b (INR10b from Odisha and INR6b from MP). The slow payment

pace has impacted civil revenue, though recent discussions with authorities

have turned more favorable.

O&G:

The oil and gas pipeline business focused on global expansion, securing

pre-qualification from a leading Middle East utility and positioning for a third

international order. With weak domestic tendering and high competition, focus

has shifted to overseas markets. KEC Spur underperformed due to limited

execution but retains key international project qualifications for future

opportunities.

Capacity expansion:

Ongoing expansions at tower manufacturing and cable

facilities - particularly the Butibori (Nagpur) plant, are expected to be completed

by FY26-end. The company has installed robotic equipment in Brazil to enhance

productivity. The elastomeric and e-beam cable plants are progressing, with

commissioning scheduled for 4QFY26 and 1QFY27, respectively. FY26 capex is

estimated at INR4.0b, higher than the typical INR2.5-3.0b, due to these ongoing

expansions.

Debt and working capital:

Net debt, including acceptances, stood at INR64.8b

as of Sep’25, up from INR52.7b as of Sep’24 due to higher revenue, strategic



November 2025

CAPITAL GOODS | Voices

inventory buildup amid lower steel prices, and delayed payments in water

projects. This represents peak debt, which is expected to reduce to INR50b by

FY26-end with inflows from Afghanistan, Saudi retentions, and metro

clearances. Working capital days remain high at ~138 but should ease as

collections materialize. Despite higher debt, interest cost declined to 2.8% of

revenue, with a further drop to ~2.5% expected in 2HFY26.

Guidance:

Management has reiterated its FY26 guidance of ~15% revenue

growth and 8% EBITDA margin, implying >8.5% margin in 2H. Net debt is

projected to reduce to INR50b, and interest cost to stay at ~2.5% of sales. Civil

and cable margins are set to improve, while T&D will sustain double-digit

profitability.



Larsen & Toubro

Current Price INR 3,999



Buy

Click below for

Detailed Concall Transcript &

Results Update



Execution:

The company reported consolidated revenue of INR680b in 2QFY26,

+10% YoY, driven by strong execution in the energy and Hi-Tech manufacturing

segments. International revenues constituted 56% of the total during the

quarter. Execution in the infrastructure projects segment was relatively subdued

due to extended monsoons and slower progress in rural water supply projects

but the same is expected to pick up in 2H.

Order book up 31% YoY:

The order book at the end of 2QFY26 stood at INR6.7t.

Order inflows during the quarter reached INR1.2t, up 45% YoY. The order book

is evenly split between domestic (51%) and international (49%) operations. The

domestic order book consists of orders from PSUs (32%), state governments

(24%), the central government (14%), and the private sector (30%). The share of

the private sector in the total order book has been on a rise for the past 4-5

quarters owing to increased real estate developments in commercial,

residential, and data centers.

Strong ordering prospects for 2HFY26:

The company has a robust order

prospect pipeline of INR10.4t for 2HFY26, +29% YoY. Infrastructure contributes

INR6.5t (vs. INR5.4t last year, +20% YoY) to the pipeline, with segments such as

heavy civil infra (16%), transportation (21%), renewables (11%), power T&D

(14%), buildings and factories (13%), water (15%), and minerals and metals

(10%). The total prospect pipeline for energy segment stands at INR3.6t, with

INR2.9t (vs INR2.3t last year, +30%) from hydrocarbon, INR0.46t (vs INR0.24t

last year) from carbon-lite, and INR0.18t (vs INR0.01t last year) from green

energy - majority from international markets. Heavy engineering and precision

prospects stood at INR0.3t vs. INR0.16t last year.

Working capital remains comfortable:

LT demonstrated strong discipline in

working capital management, with net working capital improving to 10.2% of

sales as of Sep’25 vs. 12.2% a year ago. This improvement was aided by better

collections, tighter control over receivables, and restrained execution on

projects facing delayed payments. Improved capital efficiency also supported a

healthy ROE of 17.2%, up 110bp YoY, reflecting stronger profitability and

balance sheet management.

GCC ordering:

LT continues to see strong order traction from the GCC, which

accounts for about 84% of its international order book. In 2Q, LT secured

November 2025

CAPITAL GOODS | Voices

multiple large EPC orders in Saudi Arabia and the UAE across onshore gas,

offshore structures, and energy infrastructure. The regional pipeline remains

robust with multi-billion dollar opportunities in Saudi Arabia, Qatar, Kuwait, and

the UAE, driven by diversification into renewables and gas-to-power projects.

Management remains confident of sustaining healthy GCC inflows over the next

few years, supported by disciplined bidding and deep local partnerships.

Hyderabad Metro performance:

Management said that average daily ridership

decreased to 439,000 pax/day in 2QFY26 from 468,000 in 1QFY25. However,

average fare revisions from INR38 per passenger to INR46 per passenger helped

to boost revenue. The company has reached an in-principle understanding

where the Government of Telangana will take over the debt and equity of LT.

Strategic partnerships:

During the quarter, LT entered into partnerships in

renewables, green ammonia, defense, and semiconductors. Key initiatives

include a green ammonia JV with Itochu Corporation, a defense collaboration

with BEL for the AMCA program, and the acquisition of power module design

assets from Fujitsu to bolster semiconductor capabilities.

FY26 guidance:

For FY26, management has mentioned that it will exceed its

previous order inflow guidance of 10% with scope of more ultra-mega orders.

Revenue growth guidance of 15% YoY is maintained, aided by execution ramp-

up in 2HFY26, while the core E&C margin is targeted to be at 8.5% on better

operating leverage and efficiency gains in the second half. The company expects

to maintain net working capital-to-revenue ratio of 12%.



Thermax

Current Price INR 2,944



Sell

Click below for

Detailed Concall Transcript &

Results Update



Order Pipeline

–

The company reported a healthy domestic order book in

1HFY26, and expects more than 20% growth for FY26, excluding TOESL

reclassification. Management highlighted a strong pipeline across power,

metals, refining, petrochemical, and fertilizer sectors, with steady traction

internationally in HRSGs, oil and gas boilers, and data-center power projects.

Conversion of pending large inquiries is expected in 2HFY26, with 3Q and 4Q

described as strong quarters ahead.

Industrial Products

–

The industrial products portfolio, which includes heating,

water, environment, and cooling systems, continued to see broad-based

growth. Water and Enviro businesses now operate at low double-digit margins

and are expanding internationally, while heating and cooling maintain mid-to-

high-teens profitability. Water desalination, zero-liquid discharge, and clean-air

solutions contributed to growth, and heating recorded its highest-ever monthly

order intake in Sep’25. Cooling demand from data centers

strengthened, and

management plans to increase the share of services from low double digits to

the teens over time.

Industrial Infra

–

2QFY26 was termed the “kitchen-sink quarter,” as TMX

absorbed most of the remaining hits on legacy projects. Of the total backlog of

about INR5.7b, largely comprising PSU and Bio-CNG jobs, around 62% is planned

for execution in 2HFY26, while the balance 38% will spill over into FY27. Low-

margin FGD and refinery projects, including the NRL project (INR1.8b backlog),

are being completed, and the company has now turned selective on new

November 2025

CAPITAL GOODS | Voices

tenders. A key highlight was an international boiler order from a Middle Eastern

oil & gas customer, where TMX is the only qualified Indian vendor. Future

projects are expected to carry 5–8% domestic and 10%+ international margins,

as the company rebuilds its order book around higher-quality, profitable work.

Bio-CNG Projects

–

The company has not taken any new Bio-CNG orders for two

years, except one earlier commitment. Ongoing projects are expected to be

handed over by 4QFY26, with Thermax currently producing the highest CBG

volumes among operational Indian plants. Technology performance has

stabilized at lower-than-expected yields, resulting in single-digit profitability.

Management cited policy gap - digestate utilization, green-credit framework,

electricity tariffs, and rice-straw pricing—as key hurdles to commercial viability.

Green Solutions

–

The company revised TOESL’s accounting to include long-

term contract value in the order book, aligning orders with revenue recognition.

The company plans to invest around INR7.5b in this segment and expand its

green-energy portfolio to about a gigawatt before bringing in an external

partner. FEPL renewable capacity stands near 300 MW and is targeted to reach

500–650 MW by FY27. FEPL is executing two solar projects

–

one in ISDs and one

in Gujarat, and expects to achieve breakeven next year. The focus remains on

disciplined execution and selective expansion in renewables.

Chemicals

–

The chemicals division faced weak international demand and

pricing pressure from Chinese competition in 1HFY26. The company is carrying

about INR150m in growth-related costs, including INR45m of incremental

depreciation. Utilization dropped to 40% but began

recovering in Sep’25,

supported by improving volumes in construction chemicals. The quarterly order

book stands at about INR2b and is expected to rise to INR2.3-2.5b in 3Q, with

profitability expected to return to the teens.

Subsidiaries

–

TBWES is seeing strong momentum and is expected to report

significant growth in 2HFY26, driven by domestic and international boiler orders.

The company remains constructive on coal-based and HRSG opportunities but is

not participating in BTG contracts. FEPL’s solar operations

are being scaled

cautiously, with a focus on project quality amid supply-side

constraints. ECPL’s

renewable projects are progressing toward planned capacity, while TOESL’s

reclassification aligns order intake with revenue, without impacting earnings.

Guidance

–

The company guided for a strong recovery in 2HFY26, led by

improved execution and higher order conversion across core businesses.

Management expects revenue and profit growth in FY26 despite the one-off

impact taken in 2Q on legacy projects. Order inflows are projected to grow by

over 20% YoY, supported by a healthier mix of industrial and international

projects with better profitability. The company anticipates a significant pickup in

revenues in 3Q and 4Q, similar to the robust performance seen in 4QFY25, and

expects to enter FY27 with a stronger and higher-quality backlog, driven by

larger contributions from industrial products, TBWES, chemicals, and energy

solutions.



November 2025

CAPITAL GOODS | Voices

Triveni Turbine

Current Price INR 540



Neutral

Click below for

Detailed Concall Transcript &

Results Update



Order inflow momentum:

The company reported a strong order inflow during

the quarter. The performance was driven primarily by strong demand in the

domestic market, which grew significantly on the back of fresh orders from

steel, cement and sugar sectors as well as the drive turbine segment.

Management highlighted that the company’s order pipeline remains broad-

based across industries and geographies.

Domestic market demand:

The domestic market has witnessed a notable

recovery after a subdued FY25, supported by broad-based industrial activity.

Management indicated that key sectors such as steel, cement and process co-

generation have contributed meaningfully to order inflows. Demand from the

utility turbine segment is also rising as new power and industrial projects are

being finalized. The company has secured approvals from major customers,

including NTPC, which provides long-term visibility in this segment.

Export market:

Export performance was mixed in 2Q. While customer inquiries

remain good, some order finalizations were delayed due to global trade issues.

The US market faced delays because of tariff-related uncertainty, though TRIV

expects this to improve once the situation becomes clearer. Europe and the

Middle East continued to perform well, while Southeast Asia was slower.

Aftermarket expansion:

The aftermarket business continued to perform well

and remains a steady growth driver for the company. Higher refurbishment and

service activity supported another strong quarter. With a large installed base in

India and abroad, the company continues to see good demand for spares and

maintenance work. The company has also expanded its service offerings to

cover other rotating machinery, which increases its overall market reach.

Management plans to keep growing this segment as it provides regular and

higher-margin revenue.

Product and technology development:

The company continues to invest in

developing advanced technologies to strengthen its engineering leadership. It

has made significant progress on its carbon dioxide-based heat pump, which has

received positive feedback from potential customers for its ability to deliver

high-temperature output with superior energy efficiency. The newly developed

mechanical vapor recompression compressor has also gained commercial

traction with the first multi-unit order already secured. Both products align with

global sustainability trends and expand the company's reach into process and

energy efficiency markets.

Subsidiary integration:

During the quarter, the company completed the

acquisition of the remaining minority stake in its South African subsidiary, TSE

Engineering. This move brings the entity under TRIV’s full ownership, simplifying

the group structure and improving control over international operations.

Management stated that the integration would help unlock operational

synergies and streamline decision-making across subsidiaries.

Capacity and supply chain:

TRIV reiterated that it faces no production capacity

constraints and remains well-positioned to meet rising demand. Continuous

expansion of vendor and subcontractor networks has improved flexibility and

lead-time management. The company is also investing in its Sompura facility,

November 2025

CAPITAL GOODS | Voices

which will be operational by mid next year and will further enhance testing and

assembly capabilities. A new turbine test bed has been commissioned to

simulate real operating conditions and ensure higher product reliability.

Market opportunities:

The company sees new opportunities emerging in the

utility drive turbine segment which caters to auxiliary power requirements in

large power projects. The addressable market for this category is expected to

grow meaningfully over the next few years as new generation capacity comes

online. TRIV also continues to strengthen its position in API turbine applications

catering to oil and gas refineries where repeat orders from reputed customers

are enhancing its reference base. Refurbishment and modernization demand is

increasing globally as industrial operators seek energy-efficient upgrades. These

trends provide a robust medium-term growth runway for the company.

Guidance:

Management maintained a confident outlook for 2HFY26 as

execution and ordering momentum are expected to accelerate. The company

anticipates higher activity in both domestic and export markets, supported by a

healthy inquiry pipeline and a record order backlog. Continued traction in

aftermarket and new products is expected to complement growth in core

turbine sales.



Zen Technologies

Current Price INR 1,399



Neutral

Click below for

Detailed Concall Transcript &

Results Update



Weak performance:

The quarter remained weak for Zen Technologies, as

revenues decreased, largely due to delayed government orders following the

focus on emergency procurements post-Operation Sindoor. Despite lower

topline, EBITDA margins stayed healthy at 34%, supported by cost efficiency and

an asset-light model.

Strong financial resilience:

Zen maintained a strong balance sheet with INR11b

in net cash and zero debt. Management reiterated that the company continues

to operate efficiently with stable margins and strong liquidity, ensuring it

remains well-positioned to scale up when order inflows improve.

Anti-drone edge:

Management reiterated that Zen’s anti-drone

systems are

fully indigenous, cost-competitive, and technically superior. They emphasized

ownership of complete IP and wideband jamming capability, which allows

detection and neutralization across frequencies where global competitors often

fall short.

Simulator demand revival:

Management highlighted strong medium-term

growth in the simulator segment, driven by global rearmament and training

needs amid heightened geopolitical tensions. The company sees sustained

demand over the next 4-5 years, with regular replacement cycles keeping the

opportunity recurring.

Potential export opportunities:

Exports are emerging as a strong growth lever,

with traction building across Africa, the Middle East, CIS, and Southeast Asia.

Leveraging ARI’s presence in Singapore, Zen expects meaningful export orders in

both simulation and anti-drone systems over the next few quarters.

AI-Driven innovation:

Management spoke about embedding AI into both

internal processes and core products. In simulators, AI is being used to create

November 2025

CAPITAL GOODS | Voices

adaptive one-on-one training experiences, while in anti-drone systems, it

enhances threat classification and autonomous response capabilities.

Order book visibility:

While 1HFY26 was muted, the company expects strong

traction in 2HFY26 and 1HFY27, driven by simulator and anti-drone orders under

emergency procurement. Management guided that each order under this

scheme typically remains under INR3b, with most finalizations expected before

Mar’26.

Long-term guidance reiterated:

Management reaffirmed its cumulative revenue

guidance of INR60b over FY26-FY28, stating that most of the execution will

occur in FY27 and FY28. The company ruled out any spill-over to FY29 and

remains confident that the pipeline will support this scale-up.



November 2025

CEMENT | Voices

CEMENT



Many cement companies are experiencing a steady momentum, with demand expected to grow 7–8% in FY26,

supported by strong infrastructure activity, favorable monsoons, and a healthy real estate cycle. However,

margins may remain under pressure in the near term as Oct’25 brought softer demand and weaker non-trade

pricing. At the same time, full GST pass-through and capacity expansion plans by leading players are keeping

pricing disciplined, resulting in a stable but competitive operating environment.

Capex plans

KEY HIGHLIGHTS FROM CONFERENCE CALL

Insights and future outlook



UltraTech

Cement



Demand remained steady across rural, housing and

infrastructure segments, aided by a good monsoon,

higher MSPs, stable financing, and continued govt.

capex, with projects like Vadhavan Port and Google’s

AI hub expected to drive multi-year growth.

Pricing was largely stable, with sharper corrections in

the central region. Management reiterated that

pricing is demand-led and expects stability to continue

as activity normalizes, with FY26 demand growth

estimated at 6-7% YoY.



Total capex guidance for ongoing projects is expected to

be around INR100b per year for the next two years

(FY26-FY27).



Ambuja

Cements

Cement demand grew ~4% YoY in 2Q, dampened by

an early monsoon, but management remains

optimistic about a recovery and expects industry

growth of ~7-8% in FY26, driven by GST cuts and

sustained public and private investment.



ACEM has raised its FY28 capacity target to 155mt

cement and 96mt clinker (from 140mt/84mt), driven by

brownfield/greenfield additions and large-scale

debottlenecking. Debottlenecking will add 15mt at low

USD48/ton capex, with another 3mt from logistics

optimization and small upgrades at plants like Sanghi.

Key projects include Salai Banwa, Marwa, Mundwa,

Penna Marwar, Dahej, Kalamboli, Bathinda, Jodhpur, and

Warisaliganj, with Bhattapara clinker trials underway and

Krishnapatnam GU at 4mt. ACEM plans to add ~11.2mt in

FY26, taking capacity to 118mt by Mar’26 and ramping to

155mt by FY28. Capex remains steady at ~INR80b

annually, and the combined expansion strategy is

expected to support its INR1,500/ton EBITDA target by

FY28.

Capex is planned at ~INR30b annually over FY26-27,

taking cement capacity to 72-75mt by FY27. The earlier

80mt target, once planned for FY28, is now likely to be

achieved by FY29, depending on demand recovery and

utilization levels.

The company has also approved a 3.0mtpa grinding mill

expansion and 0.5mt clinker debottlenecking in the UAE,

with a capex of AED110m funded entirely through local

cash reserves, underscoring strong profitability in that

market.

FY26 capex is expected to be lower than what was earlier

announced (now INR30.0b vs. INR40.0b earlier), driven

by favorable credit terms negotiated with equipment

suppliers and the deferral of certain non-essential capex

projects to the next fiscal year. Capex in FY27 is pegged

at INR40.0b.

In 1HFY26, capex stood at INR11.9b vs. INR13.9b in

1HFY25.

JKCE initiated work on a 0.6mtpa putty plant (greenfield

expansion) at Nathdwara Rajasthan in Sep’25. Orders

for

the main plant and equipment have already been placed,

and construction activities are underway at the site. The

project is expected to be commissioned by 2QFY27.

Management guided for a capex of INR28-30b in FY26,

higher than earlier estimates, supported by the



Shree Cement



Cement demand in 2QFY26 was affected by heavy

monsoons, and current demand remains soft due to

the festive season and labor shortages. However, GST

cuts, strong infrastructure activity, a healthy housing

cycle, and a good monsoon support a positive

medium- to long-term demand outlook.

Realizations were broadly stable in 2QFY26 despite

seasonal weakness, though Oct’25 saw slight pan-India

price declines due to muted demand. The GST cut

should structurally boost long-term demand,

especially in low- and mid-income housing and Tier-

1/2 markets, by improving overall affordability.

GST cut is fully passed on; expected to boost medium-

to long-term demand and ease channel liquidity.

1HFY26 demand was soft due to heavy rains and GST-

transition delays, but a recovery is expected in 2H,

with long-term growth estimated at 7-8%.

Prices were largely stable in 2Q, and management

remains optimistic about pricing stability ahead.

JKCE saw steady demand in the quarter, but prices

softened temporarily after the GST rate cut, as the

company fully passed on the benefit. Oct realizations

were slightly weaker than 2Q realizations, though

management expects demand to remain healthy and

pricing to stabilize, with any recovery depending on

costs and regional dynamics.



Dalmia Bharat



J K Cement



November 2025

CEMENT | Voices



Birla Corp



JK Lakshmi

Cement



JSW Cement



It reiterated industry growth of ~7-8% for FY26 and

maintained its grey cement volume guidance of 20mt

(~10% YoY), with 1H growth aided by a low base.

Demand was hit by prolonged monsoons, especially in

the central region, the company’s largest and weakest

pricing market. The GST cut disrupted the non-trade

segment, as larger players accelerated pre-change

dispatches, causing stock build-up and sharp post-

transition price corrections.

Management expects demand to recover in 2H, aided

by improved northern markets and steady govt

infrastructure spending, with 3Q volume growth

estimated at ~4-5% YoY as seasonal pressures ease.

Demand in 2Q was better than in 1Q but impacted by

intermittent and prolonged monsoons, especially in

the North and East. Oct was weak due to unseasonal

rains and the Diwali timing, but demand is expected to

pick up from Nov. JKLC outperformed industry volume

growth in 1H and expects to maintain above-industry

growth in 2H.

Trade prices stayed stable across regions, while non-

trade prices softened in Sep-Oct due to weaker

demand and temporary price pass-through.

Demand in 1H was impacted by extended monsoons

and GST-related transition effects, but JSWC remains

confident of delivering mid-teen volume growth in

FY26. Region-wise, the South grew 20%, while the East

declined ~3% and the West saw modest ~1% growth.

Management expects a strong demand rebound

ahead, supported by higher government spending,

favorable monsoons, and improving rural demand.

simultaneous execution of multiple projects. For FY27,

the company expects capex to be INR35b.



The Kundanganj grinding unit is scheduled to start by

end-3QFY26 or early 4QFY26, and overall expansion

plans remain on track.

FY26 capex guidance is revised to INR8b, lower than the

earlier INR9-10b.

The company is pursuing selective RMC growth under

the Perfect Plus brand, focusing on key synergy markets

like Lucknow and Ayodhya while avoiding low-margin

vanilla RMC expansion.

For FY26, it plans capex of INR10-12b, mainly for the

Durg project, land, and maintenance, with INR13-15b

annually for FY27-28. Greenfield plants at Nagaur, Kutch,

and Assam (~3mt each; Nagaur/Kutch with ~2mt clinker)

are targeted for FY29-30 at an estimated cost of

USD100/ton.

The company reiterated its goal of reaching 30mt

capacity by FY30 while keeping net debt/EBITDA below

3-3.5x through the expansion cycle.

The company is making steady progress in its approved

expansion program aimed at establishing a pan-India

presence and scaling up its grinding capacity to 41.9mtpa

and clinker capacity to 13.0mtpa.

The company has guided for a total capex of INR23b for

FY26, of which INR5.1b, including maintenance capex,

was incurred in 2Q, taking the cumulative spending to

INR9.6b in 1H.



ACC

Current Price INR 1,839



Neutral

Click below for

Detailed Concall Transcript &

Results Update



The company’s current capacity stood at 40.4mtpa, which will rise to 43.7mtpa

post commissioning of the Salai Banwa (2.4mtpa) and Kalamboli (1.0mtpa

blending unit) in Q3FY26. Further, debottlenecking initiatives are expected to

unlock an additional 5.6mtpa over the next 24 months. Moreover, ~30mtpa

clinker-backed capacities coming up at the group level will be accessible to ACC

under the MSA, supporting sustained double-digit volume growth.

Fuel consumption cost was INR1.57/Kcal (flat YoY). Power cost stood at

INR5.95/kwh vs. INR6.54/kwh in 2QFY25. The WHRS share was up 7pp YoY to

17%. Its overall green power share surged to 30.3% vs. 14.1% in 2QFY25. The

target is to increase the green power share to ~60% by FY28.

Primary lead distance reduced by 5km YoY to 269km. Direct dispatch increased by

6pp YoY to 52%. Logistics cost declined 4% YoY to 1,041/t.

The company is also investing in older plants like Lakheri, Jamul, Wadi, and

Kymore to enhance operational efficiency, while higher clinker supplies from the

parent under the MSA have supported profitability improvement and return on

equity.

The company’s trade receivables increased by INR25.2b due to bills raised for

cement supplies to the parent company under the MSA framework, fully

compliant with related-party norms and regular business practices. While this

arose due to seasonal factors, it has benefited in terms of robust volume growth.

This is expected to be cleared in 3QFY26.

November 2025

CEMENT | Voices



Other financial assets increased by INR2.4b, primarily due to interest accrued on

an income tax refund outstanding as of Sep’25, which was subsequently received

and settled in Oct’25.

Other current assets rose by INR7.0b, mainly due to short-term trade advances

under the MSA to ACEM and other associates such as Sanghi and Penna to secure

clinker and cement supplies. These advances are expected to be settled in

Q3FY25.

The company currently operates 116 RMC plants across 45 cities and plans to

expand to 365 plants by 2030, targeting a capacity of 35M m³. The investment will

be funded through existing treasury and internal accruals. Rebranding RMC under

Adani Concrete has driven strong growth in both volumes and margins, with

EBITDA margins improving to 8.5% as of Sep’25, up from the historical average of

~5%.

Ambuja Cements

Current Price INR 558

Buy

Click below for

Detailed Concall Transcript &

Results Update

Demand and pricing



Cement demand across the industry grew ~4% YoY in 2Q due to an early

monsoon, though management remains bullish about demand recovery and

expects ~7-8% industry growth in FY26, supported by GST cuts and higher

public/private investment.



ACEM reported robust volume growth, led by strong traction in both retail and

institutional segments, the integration of acquired assets, and better market

penetration. The company’s market share rose 1pp to ~17%, reflecting consistent

outperformance vs. peers.



Excluding

recently acquired entities (Penna, Sanghi, and Orient Cement), ACEM’s

organic volume growth stood at ~11% YoY, outperforming the industry’s growth

rate. Management attributed this outperformance to the company’s

strengthened distribution network and deepening retail presence in western and

southern markets, particularly Maharashtra, Gujarat, Telangana, and Andhra

Pradesh, which saw strong housing and infrastructure-led demand.



Looking ahead, management reiterated its confidence in sustaining double-digit

growth for several quarters, driven by new capacity additions that will expand the

company’s cement capacity from 107mt currently to 118mt by FY26-end,

130-

135mt by FY27, and further to 155mt by FY28.

Operational highlights



Share of premium products increased to ~35% vs. ~33% of total trade volumes in

1QFY26, driven by strong consumer acceptance of Adani Cement branding and

the introduction of value-added variants across key markets.



Green power contributed to ~32.9% of total power requirement vs. 15.6%/28.1%

in 2QFY25/1QFY26, and ACEM is targeting to increase this to ~60% by FY28. Total

renewable capacity reached 673MW. This is expected to scale up to 900MW by

FY26-end and 1,122MW by FY27. As a result, ACEM expects its average power

cost to decline from INR6/unit to INR4.5/unit.



Kiln fuel cost was at INR1.63/Kcal vs. INR1.60/INR1.59 in 2QFY25/1QFY26. This is

among the lowest in the domestic cement industry. Management attributed this

reduction to a favourable fuel mix, higher use of waste heat recovery and

November 2025

CEMENT | Voices

renewable power, and process optimization initiatives under the Adani Group’s

centralized operations model.



On the logistics front, the company further reduced its primary lead distance by

2km to 265km and brought down freight costs/ton through improved dispatch

optimization and supply chain visibility enabled by its AI-driven CiNOC (Cement

Intelligence Network Operations Center). This platform provides real-time data

visibility and process automation, enhancing operational efficiency across the

network.



The company reduced its total cost/t by 5% YoY to INR4,200, aided by lower kiln

fuel costs. ACEM expects to further reduce cost/ton to INR4,000 by FY26,

INR3,800 by FY27, and INR3,650 by FY28, supported by better fuel mix, higher

efficiency, and optimized logistics.



Integration of Penna and Orient Cement progressed rapidly during the quarter,

with all sales now routed under the ACEM or ACC brands, resulting in improved

profitability at both subsidiaries. The company also highlighted its ongoing

modernization and efficiency programs, including the installation of new blenders

and low-heat clinker lines that will reduce heat consumption to around 680

kcal/kg (from 730-740 currently) and power usage to below 50 units/ton (from 60

units).

Capacity expansion and capex plan



ACEM’s current cement capacity stands at 107mt with 65mt of clinker. The

company has raised its medium-term capacity target to 155mt cement capacity

and 96mt clinker capacity by FY28, from the earlier target of 140mt and 84mt,

respectively. This will be achieved through a mix of new brownfield and greenfield

expansions along with large-scale debottlenecking at existing units.



Management highlighted that debottlenecking remains in focus, enabling ~15mt

of incremental capacity addition at a competitive USD48/ton capex, among the

lowest globally. In addition, logistics and dispatch optimization will unlock another

3mt of effective capacity, while certain plants like Sanghi have inherent flexibility

to expand from 6.5mt to 7.5mt with minimal investments.



Major ongoing projects include Salai Banwa, Marwa, Mundwa, Penna Marwar,

Dahej, Kalamboli, Bathinda, Jodhpur, and Warisaliganj. Trial runs have begun at

Bhattapara (4mt clinker), while the Krishnapatnam GU (2mt) is operational, taking

total there to 4mt. ACEM expects to add ~11.2mt in FY26, reaching 118mt cement

capacity by Mar’26, and gradually scaling

to 155mt by FY28.



To support premium product growth, 13 blenders are being installed across sites

over the next year, enhancing blending flexibility and material efficiency. ACEM

has maintained a disciplined annual capex run-rate of ~INR80b, with INR14b

incurred in 2QFY26 and INR28b in 1HFY26. Management has reaffirmed that all

projects are progressing on schedule, with only minor quarter-level timing shifts.

By FY28, a combination of new capacity, debottlenecking, and modernization is

expected to lift operating

leverage and help achieve the company’s target

EBITDA/ton of INR1,500.



The company’s net cash balance stood at INR18.1b vs. INR29.7b as of Jun’25.

November 2025

CEMENT | Voices

Birla Corp

Current Price INR 1,180

Buy

Click below for

Detailed Concall Transcript &

Results Update

Demand and pricing



Demand during the quarter was impacted by extended and heavy monsoons

across key markets, particularly in the central region, which remains the

company’s largest market and where pricing stayed the weakest relative to other

regions. The GST rate change in Sep’25 led to a temporary disruption in the non-

trade segment, where large players with new capacities and incentive benefits

pushed higher pre-change dispatches, resulting in stock build-up and sharp post-

transition price corrections.



The company’s exposure to the non-trade

segment is limited to ~15% of total

sales, insulating it from the worst of the pricing volatility. The trade segment and

premium product mix continued to support realizations and profitability despite

regional headwinds.



Management expects demand to revive in 2HFY26, aided by improved northern

demand and continued government infrastructure spending. It anticipates ~4%–

5% YoY volume growth in 3Q, led by better offtake as seasonal effects subside.

Operational performance



Operations in 2QFY26 were temporarily affected by the need to purchase clinker,

following a breakdown at one of the company’s largest units toward the end of

1QFY26. Purchased clinker accounted for ~20-25% of total clinker requirements,

slightly denting profitability during the quarter. The issue has since been resolved,

and all plants are now operating at full capacity with adequate clinker availability.



At Mukutban, heavy rains disrupted dispatches, but the company expects

volumes to normalize in H2FY26. Overall, capacity utilization across older plants

remained above ~90%, with efficiency benchmarks met for thermal and electrical

performance. The company’s capacity utilization stood at ~85% in 2QFY26 vs.

~78%/96% in 2QFY25/1QFY26.



Blended cement sales stood at ~89% vs. ~83%/89% of total volumes in

2QFY25/1QFY26. Trade share stood at ~79% of total volumes in vs. ~71%/~78% in

2QFY25/1QFY26. Premium products contributed ~60% of trade volumes vs.

~62%/58% in 2QFY25/1QFY26.



The flagship Perfect Plus brand is performing strongly in the A-category premium

segment, while Samrat Advance continues to consolidate its position in the upper

value segment. Management highlighted that its dual presence across both

premium and value categories remains a strategic advantage, allowing flexibility

across markets.



The share of renewable power stood at ~30% vs. ~25%/27% in 2QFY25/1QFY26.

The company has begun sourcing 6MW of wind-solar hybrid power at its

Chanderia plant from Oct’25 and 6.98MW of renewable

power at its Durgapur

unit from early Nov’25. With these additions, the share of renewable energy in

total power consumption is expected to rise to ~32% in the second half of the

year. The Board has also approved an additional 9MW of Solar BESS (Battery

Energy Storage System) power at Chanderia, while investments are underway to

commission 5MW of solar generation capacity at Mukutban. Fuel consumption

costs stood at INR1.48/Kcal vs. INR1.46/Kcal in 1QFY26. Lead distance stood at

November 2025

CEMENT | Voices

Accrued incentives stood at INR180m for 2QFY26 vs. INR230m in 1QFY26. 340km

during Q2FY26.

Capacity expansion and net debt



The Kundanganj grinding unit is expected to commence operations by the end of

3QFY26 or the beginning of 4QFY26. The company reiterated that its overall

capacity expansion plans remain on schedule in line with earlier guidance.



The capex outlay for FY26 has been revised to INR8b (earlier guidance of INR9.0-

10.0b).



The company continues to pursue selective growth in the RMC business under the

Perfect Plus umbrella, focusing on brand synergy markets such as Lucknow and

Ayodhya, and avoiding overexpansion in low-margin vanilla RMC.



Net debt stood at INR24.5b as of Sep’25 vs. INR23.0b as of Jun’25.



Dalmia Bharat

Current Price INR 1,991

Buy

Click below for

Detailed Concall Transcript &

Results Update

Demand and pricing



The reduction in GST on cement from 28% to 18% is a long-awaited fiscal relief.

The company is fully passing on this benefit to consumer. This reform is likely to

boost consumption and support housing demand over the medium to long term.

Moreover, the 10% tax reduction on cement will ease working capital pressures

for channel partners, improving liquidity across the supply chain.



Cement demand in 1HFY26 has been softer than expected, with a low single-digit

growth due to erratic and heavy rains. Demand in Sep’25 was also slightly muted

as the transition to the new GST regime led to slower inventory offtake and

deferment of non-essential purchases. It expects demand to pick up in 2H, led by

IHB, pent-up demand, consecutive good monsoon, and improving sentiments. It

believes the long-term demand outlook is also positive, with an expected CAGR of

7-8%.



On cement pricing its focus currently is to comply with the law that whatever gain

has come from GST rate reduction is passed on to consumers. Further, it indicated

that despite heavy monsoons, cement prices largely held firm in 2QFY26, and the

company remains optimistic about pricing stability going forward.



The company’s strategy remains tailored to each micro market, depending on

demand-supply conditions, its capacity utilization, and the strategic importance of

that market. In some regions, its focus will be on market share gains, while in

others, it will be on margin expansion.

Operational highlights and cost insights



Trade sales accounted for 62% vs. 63%/68% in YoY/QoQ. Premium products

contributed 22%, remaining flat YoY and QoQ. Raw material cost/t rose marginally

by ~1% YoY, despite the additional impact of the mineral tax imposed by the

Government of Tamil Nadu.



Renewable energy share on a consumption basis stood at ~48% vs. 39%/41%

YoY/QoQ. Power cost efficiencies are expected to further improve as the share of

renewables in energy mix continues to rise. The company has commissioned

93MW of RE capacity during the quarter, primarily through the group captive

route, and is on track to scale operational renewable capacity to 576MW by end-

FY26.

November 2025

CEMENT | Voices

Power and fuel costs declined, driven by a decline in international fuel prices to

USD100 from USD106 in 1QFY25 and an increase in the share of renewable

energy (RE) to 41% from 35% in 1QFY25.



The blended fuel consumption cost stood at INR1.38/kcal vs. INR1.33/kcal in

1QFY26. Lead distance was 287km vs. 280km in 1QFY26, and direct dispatches

stood at 60% vs. 62% in 1QFY26. The C:C ratio at 1.62x vs. 1.71x in 1QFY26. The

higher reduction in fright costs was also led by initiatives in logistics optimization

and a two-months busy season surcharge relief from the railways.



Incentives accrued during 2QFY26 stood at INR640m, while collections totaled

INR500m. Incentives receivable stood at INR8.0b as of Sep’25. The company

expects a pickup in incentives collection in 3QFY26.

Expansion plans and capex



On capacity expansion, the Belgaum and Kadapa projects are progressing as

planned and will together add 12MTPA of cement capacity, strengthening its

presence in the West and South markets over the next couple of years.



Additionally, it commenced trial production at the new 3.6 MTPA clinker line in

Umrangso, Assam, in Sep’25, with commercial production expected to begin in

3QFY26. This clinker capacity will enable it to add another 2-2.5 MTPA of split

grinding capacity in the future, catering to the fast-growing markets of the

Northeast and potentially East India.



Regarding Jaisalmer, activities related to land acquisition, approvals, and

environmental clearances are progressing as planned. It has time until Mar’26

begin construction, and by then, it also expects clarity on the outcome of the JP

IBC proceedings. It will provide an update on both the Northeast and Jaisalmer

expansions in the coming quarters.



FY26 capex is expected to be lower than what was earlier announced (now at

INR30.0b vs. earlier announced INR40.0b), driven by favorable credit terms

negotiated with equipment suppliers and the deferral of certain non-essential

capex projects to the next fiscal year. Capex in FY27 is pegged at INR40.0b.



In 1HFY26, capex stood at INR11.9b vs. INR13.9b in 1HFY25.

Debt position and other key highlights



The company’s net debt (including investment in IEX of INR13.4b vs. INR18.6b as

of Jun’25) increased to INR16.0b from INR873m as of Jun’25.



The net debt-to-EBITDA

ratio stood at 0.56x vs. 0.33x as of Jun’25. It indicated

that, considering the announced capacity expansion plan, the net debt-to-EBITDA

ratio will remain in its targeted range of below 2.0x.



Grasim Industries

Current Price INR 2,762

Buy

Click below for

Detailed Concall Transcript &

Results Update

Paints Segment



Despite a weak industry backdrop, Birla Opus outperformed peers and grew

significantly YoY, even as the organized decorative paints industry grew in low

single digits. Excluding Birla Opus, the industry was marginally negative YoY. On a

sequential basis, while peers saw a double-digit decline due to prolonged

monsoons, Birla Opus reported only a low single-digit dip, followed by a sharp

rebound in Sept-Oct.

November 2025

CEMENT | Voices

Birla Opus continues to gain market share in the Indian decorative paints segment

despite an overall industry slowdown, driven by rapid expansion of its distribution

network, stronger secondary sales, enhanced brand visibility, and sustained

product quality differentiation. Premium and luxury paints contributed ~65% of

revenues, covering emulsions, enamels, wood finishes, and waterproofing.



With the commissioning of the Kharagpur plant in Oct’25, total installed capacity

has reached 1,332MLPA, translating to an estimated ~24% industry capacity

share, which is the second largest in India’s decorative paints market.



Demonstrating confidence in its product quality, the company launched ‘Opus

Assurance’, an industry-first

offer of free repainting (including labor), and rolled

out PaintCraft, its premium service through dealers and franchisees, featuring EMI

options and GST-compliant invoices. These initiatives, along with the successful

‘Opus Boy’ campaign, have received strong customer response, helping Birla Opus

emerge

as India’s No. 2 decorative paints brand in top-of-mind

recall.



The distribution network has expanded to over 10,000 towns (vs. earlier guidance

of 8,500) and 50,000 dealers, with growing depth in Tier-2/3 towns. The product

portfolio has grown to 191 products with over 1,750 SKUs across six decorative

paint categories, including 13 new product launches. About ~30% of dealers

now handle 40–80 SKUs, indicating improved engagement and throughput.



The total capex of the paints

business stood at INR97.3b as of Sept’25.

B2B E-commerce



Birla Pivot sustained its growth momentum, posting double-digit sequential

revenue growth driven by new customer additions, strong repeat orders, and

higher contribution from categories such as Non-ferrous, Bitumen, Chemicals, and

Tiles & Ply.



The business remains on track to achieve its revenue target of INR85b (USD 1

billion) by FY27, while continuously strengthening its value proposition across the

three e-commerce pillars being Price, Assortment, and Experience.



It is expanding its digital ecosystem with solutions that enhance convenience and

user experience, supported by a wide portfolio across 35+ categories and 40,000+

SKUs sourced from over 300+ global and domestic brands, offering unmatched

choice and driving customer engagement and loyalty.

VSF Segment



The Cellulosic fiber business saw a decline of ~5% YoY due to logistics disruptions

at the Vilayat plant, which have since been resolved. Specialty fiber volumes,

however, grew ~53% YoY, driven by higher exports, with their share rising to ~24%

in Q2FY26 from ~21% in Q2FY25.



The Cellulosic Fashion Yarn segment grew ~3% YoY, supported by festive demand;

however, realizations remained under pressure due to aggressive pricing by

Chinese producers in the Indian market.



Phase 1 of the 55K TPA Lyocell project at Harihar, Karnataka, is progressing well

and is targeted for commissioning by mid-2027. Long-lead items have been

ordered, basic engineering has been completed, and other orders and contracts

are currently in process.



China’s operating rates stood at 89% in Q2FY26 vs. ~86%/82% in Q2FY25/Q1FY26.

However, the average inventory holding increased to 15 days in Q1FY26

compared to an average of 8/20 days for Q2FY25/Q1FY26. CSF prices declined to



November 2025

CEMENT | Voices

USD 1.51/kg in Q2FY26 from USD 1.52/kg in Q1FY26, as prices remained stable

due to INR depreciation.

Chemical Business



Caustic soda’s international average spot prices (CFR-SEA)

for 2QFY26 were down

5% YoY at USD449/ton. Domestic caustic sales volume was flat YoY, as production

was impacted by constrained power availability. Specialty Chemicals volumes rose

~34% YoY, driven by improving utilization at the recently commissioned plant.

However, elevated input costs continued to weigh on segment profitability.



The segment added 11TPA of aluminum chloride capacity, increasing total

chlorine integration to ~64%, which is expected to reach ~70% upon completion

of ongoing projects. Key upcoming projects, including ECH and CPVC (in

partnership with Lubrizol), remain on schedule with completion targeted by

Q3FY26 and contribution expected from Q1FY27. It is advancing its sustainability

agenda, with ~25% of its power sourced from renewables, aiming to increase this

share to ~40% over the next 3 years, subject to state regulatory approvals.

JK Cement

Current Price INR 5,489

Buy

Click below for

Results Update

Demand, pricing, and operational highlights



JKCE witnessed steady demand during the quarter, though cement prices came

under temporary pressure after the GST rate reduction. Management indicated

that the company has passed on the GST benefit to the market, which has put

some near-term pressure on realizations (October showed a mild weakening vs

2Q). However, it expects the industry demand cycle to remain healthy and pricing

to stabilize. Any potential recovery in prices will depend on cost trends and

regional market conditions.



Management has reiterated its industry growth guidance of ~7-8% for the year

and maintained its volume guidance (grey cement) of 20mt for FY26 (~10%

growth for the year). Volume growth in 1H was stronger, partly due to a low base.



The central and south markets were the main growth engines in 2Q, while the

North market remained flattish. Management noted that premiumization is

progressing gradually, with the share of premium products rising slightly in 2Q.

The company is actively promoting these products as part of its go-to market

strategy.



Trade constituted roughly ~70% of volumes historically, and the company aims to

maintain a 70:30 of the trade-non-trade mix, although regional project wins can

alter this marginally. Non-trade remains strategically important, and management

is actively pursuing approvals to serve as a supplier on large projects.



The lead distance was 431km vs. 436km/419km in 2QFY25/1QFY26. Fuel

consumption cost/kcal was INR1.56 vs. INR1.53/INR1.65 in 2QFY25/ 1QFY26.



Green energy contributed ~53% of energy requirements in 1QFY26 vs. 49% in

2QFY25. The company aims to raise the green power share to ~75% by FY30. The

thermal substitution rate was 12.3% in 2QFY26 vs. 13% in 2QFY25, and the

company aims to increase this to ~35% by FY30. Its green power capacity stood at

237.14MW, comprising 82.3MW of WHRS and 154.84MW of other RE (solar and

wind).

November 2025

CEMENT | Voices

Clinker/cement capacity utilization was at 90%/69% in 2QFY26. The company

expects only temporary utilization dips, maintaining confidence in its long-term

capacity expansion roadmap.



Blended cement sales were 67% vs. 68% in 1QFY26. Trade sales were 67% vs.

65%/68% in 2QFY25/1QFY26. Premium product sales were at 15% of trade

volume vs. 14% (each) in 2QFY25/1QFY26.



Incentive income will be marginally lower in FY26 (by ~INR500m). From FY27E

onwards, incentives from the Bihar project are expected to commence, leading to

an overall incentive run-rate of INR3b. In FY28, additional incentives will partially

start flowing through with the commissioning of the Jaisalmer project, while some

existing subsidies at Nimbahera are expected to conclude.



Management reaffirmed its cost-saving target of INR150-200/t, with INR75-90/t

expected to materialize in FY26 and the remaining INR75-80/t in FY27. These

savings will come from operational efficiencies and scale benefits from upcoming

capacities.

Capacity expansion and capex update



The company has commissioned its 1mtpa Prayagraj grinding unit in Oct’25. The

Hamirpur grinding unit is at an advanced stage of completion and is expected to

be commissioned by 3QFY26. The new integrated plant at Panna is scheduled for

completion by Dec’25.



The 3mtpa greenfield grinding unit at Buxar (Bihar) is progressing well and is

expected to be commissioned by 4QFY26. Management highlighted that once

operational, the Buxar unit will significantly enhance logistics efficiency and

strengthen market servicing in Bihar.



The Jaisalmer integrated project (comprising 4mt clinker and 3mt grinding

capacity) marked its foundation ceremony in Sept’25. Major civil

and mechanical

contractors have been finalized, equipment orders have been placed, and site

work has commenced. The company is targeting commissioning by 1HFY28.



The total capex for the Jaisalmer integrated project (including two split location

GUs in Rajasthan and Punjab for which land acquisition is under progress and

likely to be completed by end-FY26) is estimated at INR48b. Management also

clarified that environmental clearances are closely linked to the completion of

land acquisition, which is already in advanced stages for both locations.

Incremental borrowing for Jaisalmer is projected at INR30b, leading to a net debt

rise of INR20b, after accounting for scheduled repayments.



JKCE initiated work on a 0.6mtpa putty plant (greenfield expansion) at Nathdwara

Rajasthan in Sep’25. Orders for the main plant and equipment have already been

placed, and construction activities are underway at the site. The project is

expected to be commissioned by 2QFY27.



Management guided for a capex guidance of INR28-30b in FY26, higher than

earlier estimates, supported by the simultaneous execution of multiple projects.

For FY27, the company expects capex to be INR35b.

Other highlights



The paints segment delivered revenue of INR950b in 2QFY26, taking the 1HFY26

total to INR1.82b. Management reiterated confidence in achieving its full-year

revenue target of around INR4b. The segment reported an EBITDA loss of



November 2025

CEMENT | Voices

approximately INR140m for the quarter, reflecting continued investments in

brand development, distribution expansion, and advertising.

Standalone gross debt stood at INR52.9b vs. 51.0b as of Mar’25, and net debt

stood at INR31.4b vs. INR25.6b as of Mar’25. Net debt/EBITDA at 1.3x (similar to

FY25).



JK Lakshmi Cement

Current Price INR 822

Click below for

Detailed Concall Transcript &

Results Update

Buy

Demand and pricing



Management indicated that demand trends in 2Q were better than 1Q, though

still affected by intermittent rains and a prolonged monsoon, particularly in North

and East India. October, however, remained subdued due to unseasonal rainfall

and the timing of Diwali, but the company expects demand to improve from

November onwards. The company outperformed the industry in volume growth

in 1HFY26 and expects to maintain above industry growth through 2H.



On pricing, trade segment prices have remained stable across regions, while non-

trade prices saw a decline in Sept–Oct due to softer demand and temporary price

pass-throughs to customers. Management expects non-trade prices to recover as

demand normalizes. The company’s blended realizations improved sequentially in

2Q, supported by a higher contribution from Northern markets (including

Gujarat), better sales mix from premium products, and volume ramp-up from the

newly commissioned Surat grinding unit.



The company also undertook efforts to streamline its channel structure, reducing

conflicts among dealers and distributors, which helped sustain better price

discipline at the ground level.

Operational efficiency



The company’s sales mix shifted toward North and West markets, which carry

stronger realizations. Lead distance reduced to 395m from 399km in 1QFY26.

Blended cement share was ~62% v/s ~66%/63% in 2QFY25/1QFY26.



The power and fuel costs rose sequentially, primarily due to lower WHRS output

(shutdowns during 2Q), reduced solar generation from unfavorable weather, and

higher petcoke prices. Management expects these costs to normalize in 2H with

improved WHRS and solar generation. Freight costs rose due to dispatches into

non-core and newer markets, as JKLC seeded volumes in geographies such as

Bihar and Jharkhand ahead of future grinding capacity additions.



Premium product share was at ~26% of trade volume vs. 23% in 1QFY26. Trade

sales stood at ~53% v/s ~53%/56% in 2QFY25/1QFY26.



Non-cement revenue stood at INR1.53b, including RMC revenue of INR720m.



Average fuel cost stood at INR1.54/kcal vs. INR1.60/INR1.50 Kcal in

2QFY25/1QFY26



Management reaffirmed its ongoing cost optimization program targeting savings

of INR120/ton over 18–24 months. These savings will stem from a higher share of

premium products, lower distribution costs, process efficiencies, renewable

energy adoption, and digital AI-driven optimization at plant and grinding stations.



Green power contribution currently stands at ~46% of the total power mix v/s

~47%/49% in 2QFY25/1QFY26 .

November 2025

CEMENT | Voices

Capacity expansion and capex



The company has achieved a total cement capacity of 18mtpa with the

commissioning of the Surat grinding unit during Sep’25. The company’s next leg of

expansion includes the Durg brownfield project, which will raise total capacity to

22.6mtpa by FY28. Orders for major long-lead equipment for the Durg project

have been placed, and commissioning is targeted by Mar’27 for 2.2mt capacity,

with the balance by Mar’28. The Durg expansion entails an outlay of INR30b, of

which only INR500m has been

spent till Sept’25.



For FY26, JKLC expects total capex of INR10b–12b, primarily toward the Durg

project, land acquisition, and maintenance. Capex pegged at INR13–15b p.a. for

FY27/FY28. The greenfield projects at Nagaur (Rajasthan), Kutch (Gujarat), and

Assam are planned in FY29–30, each with ~3mt cement capacity (Nagaur and

Kutch with ~2mt clinker each). Estimated project costs for greenfields are

expected to be ~USD100/ton.



The company reiterated its long-term roadmap to reach 30mt capacity by FY30,

with leverage maintained below 3–3.5x net debt/EBITDA even after expansions.



The company is awaiting the Ministry of Steel approval for leasing land and right

of way for its long-pending overhead conveyor belt project at Durg. It remains

under active follow-up, with alternative options being evaluated in parallel.



It is also eligible for capital incentives at UCWL, which have been applied for but

not yet recognized in books.

JSW Cement

Current Price INR 126

Neutral

Click below for

Results Update

Demand and pricing



During 1HFY26, demand was partly affected by extended monsoons and the

transition linked to GST changes. Nevertheless, the company remains confident

of achieving mid-teen volume growth for the full year. Regionally, southern

markets registered robust ~20% growth, whereas the east declined ~3% and the

west saw marginal ~1% growth in 1HFY26.



Management expects a strong demand recovery in the coming quarters, aided by

increased government spending, good monsoon and pick-up in rural demand.

Operational efficiency



Clinker utilization in 2Q stood at ~86% vs. ~87%/76% in 1QFY26/FY25. Cement

trade mix stood at ~52% vs. ~52% in 1QFY26. Clinker factor was 50% vs. ~51% in

1Q, the lowest in the industry. Blended cement mix was 67% vs. 67% in 1Q.



Variable costs declined YoY, aided by a favorable change in product mix, lower

slag prices, and higher production levels that enhanced operational efficiency.

Lead distance stood at 283km vs. 288km/283km in 2QFY25/1QFY26.



Premium product sales were ~58% of the trade mix in 2QFY26 vs. ~57% in

1QFY26, reflecting the company’s continued thrust on premiumization.



Green power share was ~21.4% vs. ~21.6% in 1Q (vs. 21.5% in FY25). JSWC aims to

scale this up significantly to ~63% by FY27. Average fuel cost was INR1.50/kcal vs.

INR1.52/1.55 kcal in 2QFY25/1QFY26.



JSWC has reiterated its cost reduction target as it has already realized savings of

INR200/t in 1H, with an additional INR200/t expected in the coming quarters.

Initiatives in renewable energy and logistics optimization are expected to deliver

November 2025

CEMENT | Voices

further cost savings and margin expansion. The company remains focused on

protecting profitability and driving operational efficiency through high adoption of

alternative fuels, greater supply chain integration, and a disciplined pricing

approach. Management remains confident of sustaining mid-teen volume growth

in FY26, supported by ongoing cost optimization efforts. This will further

strengthen its profitability and operational performance in the coming quarters.

Capacity expansion and capex



The 1.0mtpa grinding unit in Odisha was commissioned in Sep’25, taking the total

grinding capacity to 21.6mtpa. The Nagaur integrated unit in Rajasthan (Phase I),

with a clinker capacity of 3.3mtpa and a grinding capacity of 2.5mtpa, is expected

to be commissioned by 4QFY26. Meanwhile, regulatory approvals for the

proposed 2.8mtpa split grinding unit at Talwandi Sabo, Punjab, are underway, and

the project is progressing as planned.



The company is making steady progress in its approved expansion program aimed

at establishing a pan-India presence and scaling up its grinding capacity to

41.9mtpa and clinker capacity to 13.0mtpa.



The company has guided for a total capex of INR23b for FY26, of which INR5.1b,

including maintenance capex, was incurred in 2Q, taking the cumulative spending

to INR9.6b in 1H.

The Ramco Cement

Current Price INR 984

Neutral

Click below for

Results Update

Capex and project update



The company aims to reach a cement capacity of 30mtpa by Mar’26 through the

commissioning of line II at Kolimigundla and undertaking debottlenecking and

grinding capacity expansions at existing sites with minimal capex.



TRCL has monetized INR5.0b out of its targeted INR10b from non-core assets. The

balance is expected to be monetized soon, following necessary approvals.



A WHRS plant of 10MW capacity at R R Nagar was commissioned during Sep’25.

An additional 15 MW of WHRS at Kolimigundla, AP, is expected to be

commissioned in tandem with Kiln line II in FY27.



At Kolimigundla, AP, a railway siding has been commissioned in

Jul’25. The

construction chemicals capacity in Odisha was commissioned in Jul’25.



The company has acquired ~57% of the mining land and ~13% of factory land for

the proposed greenfield project in Karnataka.



The total capex was INR2.8b in 2QFY26, and it is pegged at INR12.0b for FY26.

Capacity utilization and volume



Cement capacity utilization stood at ~71% vs. ~75%/~68% in 2QFY25/1QFY26.

Cement volume was flat YoY at 4.4mt in 2QFY26. The decline in cement capacity

utilization in 2Q was due to the addition of 1.3mtpa capacity through

debottlenecking undertaken in 2HFY25.



Volume share from South/East was ~83%/~17% in 2QFY26 vs. ~82%/~18% in

2QFY25.

Operational highlights



The share of premium products was ~30% in 2QFY26 vs. ~27%/29% in

2QFY25/1QFY26 in the South region. In the East region, the share of premium

products was ~24% in 2QFY26 vs. ~23%/22% in 2QFY25/1QFY26. The OPC share

was ~35% of total volumes in 2QFY26 vs. 30%/31% in 2QFY25/1QFY26.

November 2025

CEMENT | Voices

Blended coal consumption cost was USD122/t (INR1.49/kcal) vs. USD130/ USD126

(INR1.60/INR1.55 per kcal) in 2QFY25/1QFY26.



TRCL used 50% petcoke vs. 58%/54% in 2QFY25/1QFY26. Alternative fuel share

remains low at 1-2%. Green energy contributed 48% of power requirements vs.

~39%/31% in 2QFY25/1QFY26. Avg. lead distance was 253kms in 2QFY26 vs.

244kms in 2QFY25 and 244kms in 1QFY26.



RM cost/t rose ~10% YoY to INR995/t due to the new mineral bearing land tax

(MBT) of INR160/t on limestone in Tamil Nadu, impacting variable cost by

INR400m in 2Q. Tamil Nadu remains the only state with such a levy, and industry

representations for its reduction are pending with the state government.



Revenue from the Construction Chemicals business stood at INR2.1b in FY25, with

plans to scale it up to INR20b over the next 4-5 years using existing production

facilities.

Debt and other highlights



Gross debt stood at INR46.8b vs. INR46.5b as of Mar’25. The cost of debt for

2QFY26 was at 7.18% as against 7.96% in 2QFY25.



Ultratech Cement

Current Price INR 11,706

Buy

Click below for

Detailed Concall Transcript &

Results Update

Demand and pricing



UTCEM reported strong performance despite an extended monsoon that

impacted construction activity. Demand remained firm, led by steady growth in

housing and rural segments, supported by favorable monsoon conditions, higher

MSPs, and healthy rural incomes. The individual home builder and urban housing

segments continued to witness traction, aided by improved affordability and

stable financing conditions.



Infrastructure demand remained strong, with government capex across roads,

railways, and ports providing a steady momentum. Management also expects

large-scale

projects such as Vadhavan Port and Google’s AI hub in Andhra Pradesh

to act as multi-year demand enablers.



Pricing largely held stable during the quarter, with the Central region witnessing a

higher decline than other regions. Management indicated that pricing is

fundamentally demand-led, not cost-driven, and expects stability to continue as

construction activity normalizes in 2HFY26. The recent GST reduction is likely to

support premiumization by making

UTCEM’s higher-end

brands easily accessible

to consumers, enabling an improvement in the brand mix.



Demand growth in FY26 is estimated to be 6-7% YoY. In 1QFY26, industry growth

is estimated to be at 4.5-5% YoY.

Guidance on the operations of Kesoram and ICEM



Kesoram’s operations:

Kesoram assets are ramping up well, though the quarter’s

performance was impacted by maintenance shutdowns, leading to a temporary

dip in EBITDA/t compared to the previous quarter. Around

half of Kesoram’s

output has already been transitioned to the UTCEM brand, and this rebranding

effort is yielding tangible benefits. The company noted a meaningful pricing

premium for UTCEM-labeled products vs legacy Kesoram brands. The full brand

conversion

is expected to be completed by Jun’26, after which the Kesoram

operations are projected to achieve EBITDA per ton levels in line with UTCEM’s

November 2025

CEMENT | Voices

core assets. Management also highlighted that the Sedam plant, Kesoram’s key

facility, serves the high-profitability western markets, which should further

enhance its margin profile. Additionally, a capex program of around INR5b is

underway at Kesoram for setting up WHRS and undertaking other efficiency

improvements, which are expected to support long-term margin expansion.



India Cements’ operations :

Brand transition for ICEM is progressing well with

~31% of volumes under the UTCEM brand, which will further increase to ~40% by

3Q-end.

The complete brand transition is anticipated by Jun ‘26. Post-acquisition,

ICEM has undertaken a large debottlenecking and efficiency improvement capex

program of about INR15.9b, covering 21MW of WHRS, 192MW of renewable

energy capacity, and other productivity initiatives. In addition, brownfield

expansions are planned at the Chennai and Rajasthan plants, adding 2.4mt of

capacity at a cost of INR4.2b, targeting returns of over ~20%. ICEM’s operations

should be able to generate EBITDA/t of INR1,000 and maintain a lean balance

sheet with a net debt-to-EBITDA ratio of around 0.5x post the completion of

expansion and efficiency improvement measures. India Cements has exited its

Indonesian coal assets, and the cash proceeds from this sale will be utilized for

debt reduction.

Operational and other highlights



Lead distance reduced from 370km to 366km QoQ. The C:C ratio improved from

1.45x to 1.48x. The Green Power mix stood at ~41.6% in 2QFY26 vs 38%/39.5% in

2QFY25/1QFY26.



Margins were affected due to: 1) maintenance of kilns, which resulted in 617 kiln

shutdown days vs. 207 last quarter and had an impact of INR100/t; 2) increased

advertising spend of INR500m, which had an impact of INR15/t; 3) annual

employee bonuses and increments, which led to a higher expense of INR940m

and had an impact of INR25/t, and 4) operating deleverage due to lower volumes,

which had an impact of ~INR70/t. There will be a reversal of INR100/t of higher

cost in 3QFY26 as operations normalize.



Fuel costs remained largely stable sequentially due to a balanced mix of coal and

petcoke. The company expects fuel inflation to stay contained following the

reduction in clean energy cess on coal, benefiting UTCEM due to its higher coal

usage. Blended imported fuel consumption (CV: 7500) stood at USD125/t; -5%

YoY. Fuel consumption cost was at INR1.80/Kcal v/s INR1.85/1.78 per kcal in

2QFY25/1QFY26. Petcoke consumption was at 44% vs. 54%/52% in

2QFY25/1QFY26.



The C&W business is on track to commence production by Q3FY26, with the plant

commissioning in Jan’26 and key managerial hires underway.



UTCEM remains on track to achieve 200mt capacity by FY26, including its recently

acquired assets (ICEM and Kesoram). The company has announced a 22.8mt

expansion (18mt in the North and 4.8mt in the West), bringing the total capacity

to ~240-245mt by FY29. Of this, 15.7mt will be clinker capacity, ensuring a clinker

ratio of 1.6x and green power adoption (target of 65%, which currently stands at

~42%).



Total capex guidance for ongoing projects is expected to be around INR100b per

year for the next two years (FY26-FY27). Consolidated net debt stands at

INR197.1b vs. INR176.7b in Mar’25, while standalone net debt is at INR171.3b vs.

INR150.1b in Mar’25.

November 2025

CEMENT | Voices

Shree Cement

Current Price INR 26,432

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Cement demand and pricing



Cement demand during 2QFY26 was impacted by heavy monsoon across its key

markets. Currently, demand momentum is subdued due to festive season and

labour shortage across construction site. However, GST rate cut, accelerated

infrastructure development, growth of housing sector, and good monsoon bode

well for medium- to long-term cement demand growth.



Realizations during 2QFY26 broadly remained stable, showing price resilience

despite seasonal weakness. In Oct’25, cement prices were slightly lower pan-India

due to lower demand amid the festive season.



Following the government’s reduction in GST on cement, SRCM passed on the

entire benefit to consumers. This move is expected to have a structurally positive

impact on long-term cement demand, particularly in the low- and mid-income

housing segment and Tier-1 and Tier-2 cities, as affordability improves.

Operational highlights



The share of premium products continued to rise sharply, reaching ~21% vs ~15%

in Q2FY25. It aims to maintain this level in the coming quarters. While any further

improvement would be welcome, its milestone was to achieve ~18%, and it has

already surpassed that, reaching ~20-21% (up from 15%). The focus now is on

sustaining this higher share of premium products within its trade volumes going

forward.



Avg. fuel cost increased to INR1.66/Kcal vs. INR1.59 in 1QFY26. Given the

inventory levels, it expects fuel cost at similar levels or slightly lower than this. In

2QFY26, petcoke consumption stood at ~66%, with coal and AFR accounting for

the remaining. The company’s green power capacity stood at 612MW, and its

green power share stood at ~63%, which remains one of the largest in the

industry.



There was a one-off impact of INR30/t related to the transfer of a power

substation at the Guntur unit to the state transmission company.



SRCM’s UAE operations recorded their best-ever

quarterly performance, with

volumes up ~34% YoY to 1.31mt, revenues up ~50% YoY, and EBITDA rising

sharply by 158% YoY to AED52.5m. The improvement was driven by robust local

demand, higher realizations, and better operational efficiency.



Lead distance was at 441 Km vs. 451 Km in 1QFY26. The trade sales mix remained

healthy at 70% vs. 71% in 1QFY26, while blended cement contributed 68% of total

sales vs. ~70% in 1QFY26.



Logistics optimization remained a key focus area, with the share of rail dispatches

at ~11%, targeted to increase to ~20% in the coming quarters. Management

expects this shift to lead to cost savings of ~INR 100/t, supported by new rail

sidings at Purulia (commissioned) and Kodla (for which the project work is

ongoing, land acquisition has been done, and now the construction process has

started).



AFR usage improved to 2.3% vs from 1.5% in 2QFY25, and multiple projects are

underway to enhance alternative fuel usage further in the coming years.



SRCM continued to expand its RMC business, now operating 24 plants, including

the country’s first solar-powered

RMC plant in Jaipur. The company also entered

the East India market through its Raipur RMC facility and aims to scale up to 40

RMC plants by FY28.

November 2025

CEMENT | Voices

Capacity expansion and capex plans



It commissioned a 3.65mt clinker unit at Jaitaran, Rajasthan, in 2QFY26, with a

3.0mtpa cement mill at the same site expected to be commissioned shortly.



The 3.0mtpa integrated plant at Kodla, Karnataka, is in the final stages of

completion and is likely to be commissioned in Q3FY26. With these additions,

total capacity is set to increase to 67mt by FY26 end.



Capex pegged at INR30b annually over FY26–27, which will bring the total cement

capacity to 72–75mt by FY27. The earlier 80mt target, initially planned for FY28,

may now be achieved by FY29, depending on the pace of demand recovery and

capacity utilization levels.



The company emphasized that it possesses ample physical and financial resources

to support its expansion plans and will continue to grow in line or slightly ahead of

industry growth, while maintaining its strategic focus on profitability and brand

strength.



The company announced a 3.0mtpa grinding mill expansion and 0.5mt clinker

debottlenecking in the UAE. This expansion involves a capex of AED110m, fully

funded through local cash reserves, reflecting the strong cash generation in that

market.

November 2025

CHEMICALS | Voices

CHEMICALS



The sector outlook remains cautiously optimistic, with near-term growth expected to be supported by

resilient domestic demand, moderating input costs, and upcoming capacity additions, while challenges such

as Chinese dumping, global oversupply, and geopolitical uncertainties may persist; however, improving

utilization levels and a healthy capex pipeline position the industry for a gradual and sustained profitability

recovery.

Outlook for FY26

Quarterly snapshot

The broader operating backdrop remains challenging,

shaped by uncertain demand in end-markets, aggressive

pricing behavior from Chinese suppliers, evolving tariff

structures, and global supply chain adjustments.

The Chinese market, contributing 25-30% of revenue,



Clean Science (CLEAN) reported EBITDA of INR871m, down

remains challenging and unpredictable. Intense local

3% YoY. Performance Chemicals revenue grew ~3% YoY to

competition led to deferred customer procurement. One of

INR2.4b, while revenue from Pharma & Agro

the company’s FMCG products in China was impacted as a

Intermediates/FMCG Chemicals declined ~9%/~45% YoY.

key customer may have undertaken backward integration,



EBITDA declined 3% YoY to INR871m, below our estimate

potentially leading to a permanent volume loss

of INR977m as gross margin contracted to 60.7% and

The company’s Project 1 (Performance Chemical) is

EBITDAM contracted to 35.6%.

currently undergoing chemical trials with satisfactory

results, and commercialization is expected to be announced

shortly. The product offers strong synergies with existing

offerings through cross-selling opportunities and backward

integration.

The global environment remains difficult due to rising

geopolitical tensions and trade barriers. While near-term



Deepak Nitrite (DN) reported a weak operating

conditions are challenging, the company expects 2H

performance, with EBITDA declining 31% YoY to INR2b in

performance to be better, led by the ramp-up of new

2QFY26.

capacities and the launch of new products. Key projects are



Gross margin contracted 440bp YoY to 27.6% and EBITDA

progressing well, with the Nitric Acid unit and Methyl

margin contracted 390bp, driven by macro headwinds,

isobutyl ketone (MIBK) and Methyl Isobutyl Carbino (MIBC)

pricing trends, and tariff developments.

unit expected to be operational by 4QFY26.



2Q revenue declined 6% YoY to INR19b (est. INR19.3b),

The company’s fully integrated Polycarbonate complex

primarily due to a 3% and 8% decline in the Advanced

(India’s first) is progressing

as planned and is targeted for

Intermediates and Phenolic segments to

commissioning in Jan-Mar’28,

supported by Petronet LNG

INR5.9b/INR13.3b. EBITDAM stood at 10.7%.

tie-ups and strong regulatory tailwinds.



EBITDA declined 31% YoY to INR2b, while EBIT for the

While upstream capacity is being built, the company is

Advanced Intermediates/Phenolic segments declined

already supplying polycarbonate-based compounds to

47%/52% YoY to INR1.1b/INR230m.

electronics and auto customers to secure early validation.

The company expects 3Q performance to remain similar to



Galaxy Surfactants (GALSURF) delivered a weak quarter,

2Q and maintains its confidence in medium-term

with EBITDA declining 13% YoY.

consumption growth, driven by GST reforms despite



EBITDA/kg stood at ~INR17, down 11% YoY in 2QFY26,

temporary softness from inventory adjustments and

primarily due to global tariff headwinds, reformulation

reformulations.

within the performance segment, and lower domestic

The domestic performance witnessed short-term

volumes following GST-driven inventory adjustments.

challenges, with flat volumes both YoY and QoQ. The GST



The overall volumes remained flat YoY and QoQ, impacted

rate cut on FMCG products led major players to recalibrate

by short-term disruptions in both the domestic and North

inventories, while elevated feedstock costs prompted some

American markets. This softness was partly offset by

customers to reformulate products, affecting the

strong double-digit growth in Latin America and Asia

performance segment volumes. Strong traction from Tier 2

Pacific.

customers helped offset weakness among Tier 1 accounts.



Consolidated revenue grew 25% YoY to INR13.3b (est.

North America faced margin pressure as tariffs affected the

INR12.5), primarily led by higher realizations, while overall

Specialty Care segment, causing delays in US projects and

volumes remained flat YoY.

launches. Customers, too, are dissatisfied with the recent



GALSURF’s EBITDA margin contracted 370bp YoY to 8.3%,

tariffs being imposed, as they want to diversify their vendor

hurt by gross margin contraction of 850bp YoY to 24.5%.

base and are looking forward to resuming business with the



The company’s EBITDA declined 13% YoY and adj. PAT

company.

dipped 22% YoY.

KEY HIGHLIGHTS FROM CONFERENCE CALL



Clean

Science



Deepak

Nitrite



Galaxy

Surfactants



November 2025

CHEMICALS | Voices



Navin

Fluorine



Following the successful delivery of late-stage pipeline

molecules, management highlighted that the plant was

audited by three leading global innovators. Further, the

order book pipeline till FY27 remains strong, backed by

robust purchase orders.

The Board has approved capital expenditure of INR2.4b,

adding 15,000 MTPA of R32 HFC capacity. This expansion is

driven by strong global demand stemming from the

transition to low-GWP gases and rising RAC and blend

demand in both domestic and export markets. The project

is expected to be completed by 3QFY27, with a peak

revenue potential of INR6-8.25b.

Management remains optimistic about 2HFY26 and beyond,

supported by a strong order book, deep customer

relationships, and continued focus on R&D.



2QFY26 was a strong quarter for Navin Fluorine

International (NFIL), with revenue rising 46% YoY,

supported by strong performance across all three business

segments.

NFIL reported revenue of INR7.6b (est. in line), up 46%

YoY, driven by growth across all three segments.

Gross margin stood at 58.7%, while EBITDA margin stood

at 32.5%, driven by operational efficiencies, a stable

pricing environment, and a favorable product mix.

EBITDA stood at INR2.5b (est. INR1.7b), up 2.3x YoY, and

PAT grew 2.5x YoY to INR1.5b in 1QFY26 (est INR892m).

Revenue in the HPP segment grew 38% to INR4b, driven

by higher volumes and improved realizations in both

domestic and international markets.

NOCIL’s 2QFY26 was weak, with revenue declining 12%

YoY to INR3.2b. EBITDA also declined 44% due to

continued pricing pressure in the domestic market.

Domestic volumes witnessed a positive traction in the

quarter; however, volumes in international markets were

subdued due to global uncertainties and US tariff issues.

NOCIL posted revenue of INR3.2b (est. of INR3.4b; down

12% YoY), due to a 3% YoY dip in sales volume to 13.8tmt.

This was because volumes in international markets were

dampened due to global uncertainties and the US tariff

issues.

Gross margin at 41.3% contracted 190bp YoY, while

EBITDA margin contracted 370bp YoY to 6.5%. This was

due to a 9% YoY dip in realization to INR232.3/kg, led by

dumping pressure in the domestic market. EBITDA/kg also

declined 42% YoY to INR15.2.



NOCIL



In order to mitigate the impact of dumping in the domestic

market, the company has filed anti-dumping petitions with

the Indian government. These petitions are currently under

investigation, with outcomes anticipated over the coming

months.

The Brownfield expansion in Dahej is poised to commence

from 1HCY26 onwards. This involves capex of INR2.5b, with

75-80% of the work already completed.

The company is introducing various cost savings and

efficiency improvement initiatives to reduce conversion

costs from 4QFY26 onwards and is focusing on geographies

other than the US.



Alkyl

Amines



Ellenbarrie



Volume growth in the first half was slightly higher

compared to last year. Management does not expect to

meet its volume growth target of 7-10% for FY26. However,

anti-dumping duties on acetonitrile are expected to benefit

the company from 4Q onward.

The industry faced multiple challenges, including demand

pressures, geopolitical disruptions, and intensified

competition from Chinese suppliers, which are dumping

products across Asia and other regions, leading to

heightened pricing pressure.

The company is developing an import-substitute product at

its Kurkumbh facility for the dyes, pigments, and electronics

markets, with an expected launch in 1QFY27 and an asset

turnover of 1.5x. It also has additional products in the R&D

pipeline to further drive growth momentum.

ELLEN is on track for its pan-India expansion, with the

Uluberia-2 bulk plant scheduled to open by 3QFY26 and the

East India on-site plant by 4QFY26. The North India project

has faced a slight commissioning delay due to execution-

related issues. Although this may cause a modest short-

term impact, it does not alter the company’s strong long-

term growth outlook or its commitment to expanding

national coverage.

Argon gas prices remained stable QoQ in 2Q, while the YoY

decline was primarily due to an abnormal spike in the prior

year. The company maintains a positive long-term outlook,

supported by structural demand tailwinds that are

expected to outpace supply.

The solar cell segment is witnessing strong traction with

significantly higher margins, supported by

the company’s

enhanced capability in ultra-high-purity

gases. With India’s

value chain expanding rapidly, the company has already

secured three solar cell contracts in the last quarter and

continues to see robust inquiry momentum.



Alkyl Amines Chemicals (AACL) reported a muted

operating performance in 2QFY26 as EBITDA declined 5%

YoY. Despite some raw material cost pressure, EBITDA

margins expanded marginally by 30bp YoY to 18%.

Revenue declined 6% YoY/4% QoQ to INR3.9b (est.

INR4.2b), while gross margin expanded by 190bp YoY and

150bp QoQ to 47.3%

EBITDA margins expanded 30bp YoY but contracted 80bp

QoQ to 18% (est. 18.3%). Employee costs as a percentage

of sales stood at 7% (vs. 6% in 2QFY25), while other

expenses stood at 22% vs. 21% in 2QFY25.



ELLEN delivered a muted performance in 2QFY26 as

EBITDA declined 8% YoY to INR335m. YoY growth was

impacted by a one-time revenue of INR150m from Project

Engineering in 2QFY25.

ELLEN reported total revenue of INR892m (est. in line) in

2QFY26, down ~6% YoY, impacted by one-time revenue of

INR150m from Project Engineering in 2QFY25.

EBITDA margin contracted 70bp YoY to 37.5%; EBITDA

stood at INR335m (est. in line), down 8% YoY.

Adj. PAT grew 24% YoY to INR367m (est. INR254m), led by

higher other income (up 74% YoY).

Gases, related products & services revenue grew 10% YoY

to INR879m, EBIT declined 8% YoY to INR362m, and EBIT

margin was 41%.

Project engineering revenue stood at INR 12M, EBIT stood

at INR3m, and EBIT margin was 28%.

For 1HFY26, revenue/EBITDA/adj. PAT grew 7%/10%/21%

to INR1.7b/ INR642m/INR554m.

November 2025

CHEMICALS | Voices

Alkyl Amines

Current Price INR 1,766

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Outlook



Volume growth in the first half was only slightly higher compared to last year.

Looking ahead, management does not expect to meet its earlier expectations of

7-10% volume growth.



Management remains optimistic about a slow and steady upward trend in

performance, expecting gradual improvements over time and aiming for

consistent and sustainable growth.



The DEK molecule faced pressure earlier but has now stabilized. Production is

running reasonably well at good capacity. Although margins are currently low,

volumes are improving, and mana gement expects a better performance in the

second half.



Demand for Ethylamines remains relatively stable because the focus is on the

domestic market, shielding AACL from external demand fluctuations.



For Ethylamines, the market size is expected to be around 30,000-35,000 tons,

suggesting a stable and moderately sized demand outlook.

Macro environment



The industry faced multiple challenges, including demand pressures, geopolitical

issues, and impacts on customers from direct US exports. Despite flat revenue, it

successfully managed margins to maintain profitability.



Chinese suppliers have become more aggressive, diverting their products to

other markets. They are dumping materials across Asia and other regions,

creating pricing pressure and increasing competition.



Raw material prices have been impacted by sanctions imposed by the US,

particularly affecting suppliers who source materials from Iran. This has created

cost pressure for the company’s chemical

production.



Management expects the pricing environment to eventually stabilize and return

to normal levels, easing cost pressures over time.

Product development



Regarding its new product, mechanical completion of the project is expected by

Feb-Mar’26. So far, INR1.2b has been invested, and the market currently

appears promising, with hopes of achieving good profitability.



The new product will primarily be used in the dyes and pigments industry.

Currently, no other company in India is producing this chemical, giving the

company a unique position in the market.



The company plans to launch new products in the coming years, focusing on its

R&D pipeline. In the next three to four months, management will conduct a

detailed review to assess potential opportunities.



Acetonitrile is now being exported globally, indicating the company’s growing

international presence. This expansion allows AACL to reach multiple markets

and diversify its sales beyond the domestic sector.



According to customer inquiries, the use of Acetonitrile is increasing, primarily

because it is a key ingredient in the production of APIs (Active Pharmaceutical

Ingredients), indicating rising demand from the pharmaceutical sector.



Management has obtained approvals for Acetonitrile use in peptide-based

diabetic weight loss drugs, but commercial production and market impact will

take some time.

November 2025

CHEMICALS | Voices

Other



The company possesses the technology to produce DMF (Dimethylformamide),

but it is currently not manufacturing it. This indicates potential for future

expansion if management decides to enter this segment.



There is potential demand for peptide-based diabetic weight loss drugs, which

have just been launched. Management has obtained approvals for Acetonitrile

use in these drugs, but commercial production and market impact will take

some time.



Last year, the company achieved a significant milestone by crossing one lakh

tons in total production volume, reflecting strong operational performance and

capacity utilization across its chemical product segments.

Clean Science & Technology

Current Price INR 932

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Operational highlights



HALS (Hindered Amine Light Stabilizers) volumes grew 25% QoQ, supported by

an improved product mix and commercialization of higher grades such as HALS

2020. Material margins expanded to 35% (from 31%), with capacity utilization at

25% and sequential growth expected to continue.



Established Products reported a 6.5% YoY decline in volumes, impacted by weak

demand and continued pricing pressure across key categories.



The commercialization of barbituric acid and Performance Chemical 1 (PC1) is

underway, with trial results satisfactory and full-scale commercialization

expected in 4QFY26.

Macro-economic outlook



Sales during the quarter were impacted by a combination of global demand

softness, pricing pressure, and intensifying competition from Chinese suppliers

across key end-markets. The overall demand environment remained

challenging, with customers adopting a cautious procurement stance amid

heightened price volatility and uncertainty in their respective downstream

industries.



In China, the market environment continued to be particularly difficult,

characterized by sustained price undercutting and excess supply. Customer

destocking trends, coupled with potential backward integration by a key FMCG

customer, further weighed on volumes. The company’s exposure

to China

remains significant, accounting for approximately 25-30% of total revenue,

making it susceptible to fluctuations in this market.



Additionally, the evolving tariff landscape and trade-related uncertainties led to

a cascading effect on global supply chains, prompting several customers to defer

or moderate their procurement plans. These factors collectively contributed to

lower order volumes and a softer sales trajectory during the quarter.

Capex and new projects



The company invested INR1.5b in its subsidiary, CSTL, during the first half of the

year.



The company’s Performance Chemical 1 is currently undergoing chemical trials

with satisfactory results, and commercialization is expected to be announced

shortly. The product offers strong synergies with existing offerings through

November 2025

CHEMICALS | Voices

cross-selling opportunities and backward integration. The installed capacity

stands at 10,000 tons, with full-scale revenue potential of around INR3b in FY28.

Geography and product dynamics



In Americas, volumes were impacted by tariff-related uncertainties and

temporary customer-specific slowdowns.



The European market experienced minor realignment in demand patterns, while

the domestic market remained broadly stable.



The company continues to face limited competition from domestic players, with

pricing and volume pressures primarily emanating from Chinese suppliers.

Deepak Nitrite

Current Price INR 1,704

Sell

Click below for

Results Update

Operational highlights:



The marginal sequential revenue increase was driven by improved performance

in the Phenolics segment, supported by lower feedstock prices, higher volumes,

and a better product mix.



However, YoY performance weakened due to global tariff actions in the US,

underpriced Chinese imports, and softer realizations in several Advanced

Intermediates products.



EBITDA improvement on a sequential basis was driven by cost optimization

measures, including lower energy costs, overhead rationalization, and improved

production throughput.



Profitability remained under pressure, largely due to weaker pricing in the

Advanced Intermediates business.



Aggressive cost optimization measures across power and fuel expenses, along

with the rationalization of overheads, helped improve EBITDA on a QoQ basis.



The company maintained stable volumes in Advanced Intermediates despite

pricing challenges, supported by interventions such as focusing on market share

protection, entering non-traditional geographies, and securing upstream

feedstock availability.

Advanced Intermediates



The segment reported revenue of INR5.88b, compared to INR6.05b in 1QFY26

and INR6.06b in 2QFY25.



EBIT weakness was driven by US tariff actions and sustained inflow of Chinese

products at lower prices.



Despite this, the company maintained its volumes and wallet share. Input

security is expected to improve once the Nitric Acid plant becomes fully

operational in 4QFY26.



Business was impacted by the direct and indirect impact of US tariff actions,

along with the continued influx of underpriced Chinese products, which remains

a major constraint on a broader sectoral rebound.



The company drove interventions to increase volumes and maintain market

share, thereby delivering largely stable revenue.



While sustained pressure on realizations impacted profitability in the AI

segment, multiple remedial measures and cost optimization actions were

undertaken to partly mitigate the impact.

November 2025

CHEMICALS | Voices

Phenolic



The Phenolic segment recorded revenue of INR13.33b vs INR13.04b in 1QFY26,

showing sequential growth driven by higher throughput and a favorable product

mix.



The segment also benefited from continuous variable cost optimization and

deeper integration across the value chain.



Stable domestic demand enabled the company to maximize the benefits of its

deeply integrated manufacturing, resulting in continuous variable cost

optimization.



The company expanded its market share in the Phenolics segment.



Additionally, the Phenolics business registered the highest quarterly production

and sales of IPA in 2Q.

Polycarbonate:



The company has planned investments in a large-scale complex that will house

India’s first integrated Polycarbonate project, marking a significant

step toward

achieving self-reliance and increasing value addition within the country.



This project is supported by long-term feedstock supply arrangements with

Petronet LNG and benefits from strong policy support under the Atmanirbhar

Bharat initiative.



Discussions are currently at an advanced stage regarding the supply of certain

utilities as part of the integrated facility.



The company’s first priority is to ensure that polycarbonate can be produced in

the most cost-efficient manner. However, since this is a large-scale project and

will take a few years to complete, the company has simultaneously taken steps

to move downstream.



In the interim, the company has begun establishing its presence in the

customers’ ecosystem by offering compounded products

that use polycarbonate

as the base material.

Macro environment:



The operating environment remains complex and challenging as the company

enters FY26.



Compared to the previous year, conditions have deteriorated meaningfully, with

US tariffs, dumping intensity, and underpricing now far more severe.



The company has countered these pressures by expanding into non-traditional

geographies and proactively engaging with customers to protect market share

and maintain volumes.



The global operating environment remains strained due to rising geopolitical

tensions and increasing trade barriers



While near-term conditions are challenging, the company expects performance

to improve in H2 with the ramp-up of new capacities and initial volumes from

new products and SKUs, with additional upside if US tariffs ease.

Outlook



A strong pipeline of upstream products, including Nitric Acid, and downstream

products, such as MIBK and MIBC, is set to become operational over the next

few quarters.



The company is making rapid progress on its large CAPEX program, with new

Phenol, Acetone, and IPA capacities supporting full integration toward PC resin

production.

November 2025

CHEMICALS | Voices

Management expects a better trajectory for select agchem intermediates in 2H,

with further upside possible if US tariffs ease.



The Nitric Acid plant, expected to be fully operational by 4Q, will ensure reliable

input supply and support margin improvement.



A new world-class R&D center will drive innovation and product development.



Backward integration for nitration products and the expansion of existing

product lines remain key growth drivers.



Performance is expected to improve on the back of higher agrochemical

intermediate volumes from Europe and other regions.

Product development



The company launched seven new products in 2Q, all developed in-house

without external technology licenses. These include life-science products and

effect chemicals used in polymers, flame retardants, and mining applications.



These products are currently in customer validation cycles of 3–5 months, with

full commercial ramp-up expected by end-4Q or mid-1Q. Early feedback

indicates that product specifications exceed market standards.



In the polymer compounding business, validation cycles can extend up to 18

months. The company has commissioned a pilot facility at Savli and is in

discussions with potential strategic partners.

Others



The company has secured supply arrangements similar to those for other key

raw materials, enabling it to source ammonia both domestically and through

imports.



It plans to significantly increase internal consumption of nitric acid, with the new

plant expected to operate at full capacity.



The Oman facility is expected to take around 24 months from 2QFY26 to reach

commercialization.



Chinese dumping remains a major challenge, particularly in products like sodium

nitrite and certain nitro aromatics, where pricing pressure is substantial.



The company has planned a capex outlay of INR15b for FY26.



Ellenbarrie Industrial

Current Price INR 422

Buy

Click below for

Detailed Concall Transcript &

Results Update

Financial performance



2Q revenue was INR892m, up 7% QoQ but down 6% YoY, impacted by one-off

revenue of INR150m from the Project Engineering segment recorded in 2QFY25.



Revenue from gas sales stood at INR879m, up 10% YoY and 9% QoQ.



In 1HFY26, ELLEN reported RoCE/RoE stood at 26%/12%, maintaining its focus

on delivering healthy return ratios over the medium term.

Operational highlights



The company achieved a successful ramp-up of its Kurnool and Tata Steel

Metaliks divisions. In addition, the merchant plant in East India is expected to

become operational by the end of Nov’25.



A new on-site plant in East India is scheduled to commence operations by

4QFY26, while another merchant plant in North India is expected to begin by

2HFY27.



ELLEN’s total owned and operated capacity is expected to increase from 1,370

TPD as of FY25 end to 1,910 TPD by FY26 end and to 2,130 TPD by FY27 end.

November 2025

CHEMICALS | Voices

The company continues to focus on product mix optimization, emphasizing

higher-value gases such as argon, which contributed 13% of total revenue in 2Q.

Expansion projects



Geographical expansion remains in focus as the company aims to become a pan-

India player. ELLEN has already begun moving beyond its traditional core

regions, with substantial growth now emerging from Western, Central, and

Northern India.



The Uluberia-2 bulk plant in West Bengal with a capacity of 220 TPD is expected

to be commissioned by 3QFY26, which will strengthen ELLEN’s market

presence

in East India.



The on-site plant in East India with a capacity of 320 TPD is also on track to be

commissioned in 4QFY26 under a long-term contract with a steel producer.



The North India project has faced a minor commissioning delay, which may have

a modest short-term impact. However, the long-term outlook for the business

remains strong and unchanged.

New-age industries



The solar cell segment is already witnessing strong traction, while the

semiconductor industry is expected to take some more time before generating

significant demand for industrial gases.



Margins in this solar cell segment are expected to be significantly higher

compared to other manufactured products, while margins on traded products

are around 15%.



The solar cell and semiconductor value chain in India is expanding rapidly. These

industries require two major categories of gases: 1) ultra-high purity gases,

which the company is already manufacturing but now producing at enhanced

purity levels, 2) other gases that the company imports.

Future Outlook



Management anticipates that 2HFY26 will be significantly stronger, driven by

the commissioning of new capacities and increased contribution from recently

ramped-up plants.



Revenue growth is expected to remain in the range of 20-22% CAGR.



Over the next four years, ELLEN also aims to maintain EBITDA margins at ~40%.



The company has firm plans to enter the Western India market as part of its

broader capacity expansion strategy.



Argon prices were stable QoQ in 2Q. The YoY decline reflects an abnormal price

spike last year. In the long term, the company remains optimistic, as structural

demand tailwinds are expected to help grow demand faster than supply.

Other



Hydrogen will be positioned as just another gas within its product portfolio,

unlike larger industry peers. The core growth driver will continue to be ASU

gases, with hydrogen expected to remain a limited contributor to total revenue.



Demand for industrial gases remains strong, and power prices have corrected to

multi-year lows. Even if gas prices soften, margins are expected to remain

protected, given the direct linkage between power costs and the pricing of end-

product gases.



Geographic expansion remains a key priority as the company aims to establish a

pan-India presence and move beyond its traditional strongholds. Significant



November 2025

CHEMICALS | Voices

growth is already coming from Western, Central, and Northern regions, with

clear plans underway to scale up nationwide.

In the West, the company is pursuing a merchant-model strategy, supported by

strong demand from multiple industries. The site for the new plant has been

largely finalized.



Galaxy Surfactants

Current Price INR 2,146

Buy

Click below for

Detailed Concall Transcript &

Results Update

Financial Performance



During 2QFY26, Galaxy Surfactants Limited reported net revenue from

operations of INR 13.26b, compared to INR 10.63b in Q2 FY25, registering a

growth of 25% YoY.



For 1HFY26, total revenue stood at INR 26.21b, up 27.8% from INR 20.37b in H1

FY25.



However, EBITDA for the quarter declined by 14.7% YoY to INR 1.16b, primarily

due to global tariff headwinds, tactical reformulations in the Performance

Surfactant segment, and lower domestic volumes following GST-driven

inventory adjustments.



EBITDA margins stood at 8.3%, down from 12.0% in the previous year.



EBITDA per metric tonne for the quarter stood at ~INR17,300.

Operational Highlights



Volumes during the quarter remained broadly flat both on a YoY and QoQ basis.



Specialty Care Products delivered strong double-digit growth, which helped

offset a high single-digit decline in the Performance Surfactant segment.



India's domestic performance faced temporary headwinds, with volumes being

flat YoY and QoQ, though temporary headwinds emerged following the GST rate

reduction on FMCG products, which triggered inventory recalibration by large

players.



In the AMET region, volumes declined in the high single digits YoY and low single

digits QoQ, mainly due to share loss among Tier-1 customers in Egypt amid

rising local competition.



The Rest-of-World (ROW) region maintained a high single-digit YoY growth,

driven by strong performance in LATAM and APAC, where both Performance

and Specialty segments saw double-digit growth.



North America experienced margin pressure due to reciprocal tariffs impacting

Specialty Care, particularly in the masstige product category, although prestige

product lines under Tri-K continued to perform well.



Raw material availability improved slightly; however, feedstock prices stayed

elevated due to lower-than-expected output of Palm Kernel Oil.



Tariffs have led to delays in both projects and product launches in the US.



Egypt as an entity is performing well in terms of its project portfolio, and

GALSURF is focused on enhancing operations and expanding its presence in the

region.

Business Segments



In 1HFY26, Performance Surfactants’ revenue was INR 16.81b, while Specialty

Care Products contributed INR 9.40b, taking the total revenue to INR 26.21b.

November 2025

CHEMICALS | Voices

Regionally, India saw low single-digit volume growth, the AMET region recorded

a mid-single-digit decline, and the ROW segment achieved high single-digit

volume growth.



Overall, volume growth for 1HFY26 remained in the low single-digit range

compared to the previous year. The company's product portfolio now includes

215+ grades, with 47+ under Performance Surfactants and 168+ under Specialty

Care Products, serving over 1,500 clients across 80+ countries.

Raw Material and Supply Chain Trends



Average fatty alcohol prices rose to USD 2,800 per MT in 2QFY26, compared to

USD 2,723 in 1QFY26 and USD 1,926 in 2QFY25.



Although freight costs have eased, shipment delays and port congestion

continue to impact supply timelines.



Raw material prices are increasing due to lower yields in Malaysia and

Indonesia, where demand is outpacing supply.



The supply situation has not been very supportive, and with the current

headwinds in demand, a price correction is expected going forward.

Guidance



The company remains confident that GST reforms will drive medium-term

consumption growth in India, even though the Performance Surfactant segment

experienced temporary softness due to inventory adjustments and

reformulations.



In the AMET region, Tier-1 customer share erosion impacted overall

performance, but non-Tier-1 customers delivered robust growth YoY and QoQ,

helping offset some of the decline.



The ROW markets, led by LATAM and APAC, continue to show healthy traction

in both product categories.



Management reiterated its focus on sharpening strategic priorities, improving

operational agility, and strengthening portfolio resilience to sustain

performance amid global challenges.



For the full year, some projects in the pipeline have been delayed; however, the

company remains in constant communication with its customers regarding the

impact.



Customers are dissatisfied with the recent tariffs being imposed, and as they

work to diversify their vendor base, they are also looking forward to resuming

business with the company.



Long-term growth is expected to be around 6–8%.



For 3Q, the company aims to end in line with 2Q performance



While 4Q is expected to show some positive developments, it is too early to

provide a clear outlook.



Navin Fluorine Intl

Current Price INR 6,030

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Specialty Chemicals



The management remains confident about the outlook for the specialty

chemical segment, backed by robust purchase orders.



The Fluro specialty plant has started contributing meaningfully from this

quarter.



The Chemours project remains on track for completion in 1QFY27.

November 2025

CHEMICALS | Voices

Debottlenecking the MPP capacity at Dahej is further expected to support the

launch of a new molecule for a global innovator.

CDMO



The order book pipeline for the CDMO business remains strong, backed by

purchase orders till FY27.



Supplies have concluded in 2QFY26 for the material order for an EU major, and

the company is in discussion for future supplies.



The company has also received a scale-up order for supplies in 3Q and 4QFY26

from another EU major.



Based on the successful deliveries of late-stage pipeline molecules, the

company’s plant was audited by three major global innovators.

HPP



Revenue in the HPP segment was led by higher realizations and volumes in both

domestic and international markets.



Both the plants for R32 are running at optimal capacity.



The mechanical trials for AHF are underway, with commissioning expected by

3QFY26.



The global R32 demand-supply situation remains tightly balanced and is likely to

remain so for the foreseeable future



The HFC capacity addition directly addresses the global need for transitioning

into low GWP commitments.



The company remains highly constructive on the R32 gas demand, supported by

increasing consumption from blends and export markets, with prices expected

to stay firm going forward.



R32 has been in a tight situation, given the current scenario. With China

recording a 5% CAGR, there are clear signs that supply constraints will intensify

going forward.



Chinese capacity of R32 is largely expected to be consumed within China.

Capex



The Board has approved a capital expenditure of INR2.36b to add HFC capacity

equivalent to up to 15,000 MTPA of R32. This expansion is driven by a favorable

global demand-supply environment, supported by the transition to low-GWP

gases and rising RAC and blend demand in both domestic and export markets.



The addition of the HFC capacity is expected to be completed by 3QFY27, with a

peak revenue potential of INR6b-INR8.25b.



Along with the capacity expansion of HFC, the company has also announced the

debottlenecking of MPP capacity at Dahej to support the launch of a new

molecule for a global innovator.



The company plans to incur a capex of INR750m and targets to commission this

by 3QFY27, with peak revenue potential of ~INR1.4b-INR1.6b.



Both the capex plans are strategic in nature. One consolidating the company’s

position in rest gases and the other demonstrating the ability to deepen

partnerships with global innovators. Contribution to growth from these capex

plans will further help the company secure growth in FY27 and beyond.



The capex will spill over into next year, with the overall investment framework

for the next couple of years expected to be around INR10b.



November 2025

CHEMICALS | Voices

Margin and guidance



Management remains optimistic about 2HFY26 and beyond, supported by a

strong order book, deep customer relationships, and continued focus on R&D.

Reflecting this confidence, the company has raised its EBITDA margin guidance

to 28-30% (from 25% earlier).



It is targeting 28-30% EBITDA margins for the full year.

Others



Building closer relationships with global innovators and securing a share of their

future R&D pipeline is a strategic move in the right direction, from which the

company is already beginning to benefit.



The idea of the debottlenecking is to sweat the asset, drive further realization,

and seek greater value.



The business has benefited from significant volume growth (3/4th of the EBITDA

growth is due to the volume growth) with some forex tailwind as well, leading to

margin expansion along with operating leverage.

NOCIL

Current Price INR 172

Neutral

Click below for

Results Update

Industry and market overview



The Rubber Chemicals industry is facing multiple external shifts.



The EU holds a dominant position in demand generation, while the US generates

~9% of the global demand for Rubber chemicals.



Robust demand in the domestic market is expected due to GST 2.0 and Income

tax rates, driving demand for automobiles and tyres.



The domestic market for Rubber chemicals is estimated at 80-85KTpa, with

NOCIL targeting ~40%



NOCIL continues to maintain ~38-40% of the Domestic Market share

Operational performance



NOCIL reported 4% QoQ volume growth despite tariff uncertainty and pricing

pressures



NOCIL is facing pricing pressure in the Domestic market, mainly due to foreign

dumping



NOCIL’s export volume declined primarily due to tariffs, and sluggish growth is

expected in the near months



The company currently has 65% of the total capacity operational



NOCIL’s operating cash flows improved due to WC efficiency. Its receivables

improved 20% due to inventory management, and lower prices and costs YoY

aided in WC efficiency

Anti-Dumping Duty



NOCIL has filed an ADD application for four products



Detailed investigation is initiated in this matter, and NOCIL expects favorable

results in 2-3 months

Capex update



The capex program of INR2.5b for production capability enhancement for the

TDQ antioxidant product in Dahej is expected to be commissioned from 1HCY26



It is a brownfield expansion whose 75-80% of work is completed, and NOCIL has

received a few orders for the same.

November 2025

CHEMICALS | Voices

Outlook



NOCIL to continue its focus on increasing Supplier reliability through long-term

engagement with customers



NOCIL is targeting to increase volumes in geographies other than the US



NOCIL expects Conversion costs to reduce from 4QFY26 onwards, driven by cost

savings initiatives and efficiency improvements



The company expects healthy volume growth in FY27.

P I Industries

Current Price INR 3,458

Buy

Click below for

Detailed Concall Transcript &

Results Update

Operating performance



In 2Q, PI reported ~18% decline in agchem exports as volume declined ~17%,

due to sluggish demand and customer-led shipment deferments.



The new products launched over the past three years reported 27% YoY growth.



PI commercialized five new molecules in agchem exports and three products in

the domestic agri brand in 1HFY26.



Domestic revenue declined ~13% YoY, led by volume decline of ~9% due to

erratic rainfall disrupting the demand.



Favorable product mix and operational efficiencies led to gross margin

expansion.



Overheads increased, comprising strategic development of new businesses and

promotion of new products, offset by effective cost control in existing

businesses.



PI reported surplus cash net of debt at INR38.6b.



Total capex for 1HFY26 stood at INR4.4b, reflecting continued investments in

manufacturing capabilities and R&D infrastructure.



Trade working capital in terms of days

of sales stood at 115 vs. 73 in Mar’25 due

to inventory build-up for 2H and calibrated credit extension in line with

prevailing liquidity constraints.

Outlook and guidance



Inventory levels likely to ease going ahead.



Strong demand momentum expected for new products.



Favorable reservoir levels for India and positive sowing trends in major crops

signal a promising outlook for the Rabi season.



4Q should see early signs of improvement, but a full-scale recovery is not

expected till FY27



The company remains on track to commercialize 8 to 10 new molecules in the

coming fiscal in agchem and 3-4 in domestic.



Ongoing investments across growth sectors are laying a strong foundation for

the next phase of expansion and long-term sustainable growth.



While the long-term outlook remains intact, near-term conditions continue to

be affected by macro headwinds, climate risks, and geopolitical uncertainties.



ETR guidance remains steady at 20-23% over the next 2-3 years.



Management remains positive on the company’s long-term

growth outlook and

expects growth momentum to be restored over the coming years. A recovery in

both domestic and export markets, particularly from 4QFY26, is anticipated to

offset revenue and profitability pressure seen in 1H.



Management reiterates its EBITDA margin guidance of 25-27%.

November 2025

CHEMICALS | Voices

Industry Environment



The global crop protection industry remains in a prolonged downtrend, weighed

down by distributor and farmer destocking, sharp price deflation, and persistent

Chinese overcapacity. The situation is further exacerbated by low commodity

prices, elevated interest rates, and weather-related disruptions that curtailed

spring applications across several regions.

Pharma business



The pharma segment witnessed a strong 1H, with the company onboarding new

customers.



The decline in profitability was due to one-off processing related cost and

product mix and higher overheads due to investments in capability building,

people and processes.



The company incurred a capex of INR167m in 2QFY26.



Pharma platform doubled its revenue vs. 1HFY25, driven by deepening

relationships with biotech and big pharma innovators. Pharma outlook is

positive for the long term.



Healthcare annual revenue is in the range of USD10m to USD12m.



Pharma business is currently in an investment phase, which is expected to

continue for another year; thereafter, it aims to sustain a positive EBITDA.



In the Pharma CDMO business, PI onboarded seven new clients in 1H and

continues to prioritize investments in this segment. The focus is on scaling up

late-stage programs, which are expected to start contributing sustainable

revenue over the next 2-4 years. The company remains on track to add two

additional clients in 2H.



Gross margins remained broadly in line with historical levels, with a slight dip in

profitability owing to one-off processing-related costs and an unfavorable

product mix.

Biological business



Good traction witnessed in biologicals technology platform products in 1HFY26.



PI has made significant investments in product development in the US, Brazil

and Mexico.



Unique biological solution for nematodes launched in Mexico.



New registration filed for Bio-nematicide in the US.



Regulatory changes in India for biological products have disrupted the market,

but the company expects these issues to stabilize over the coming one to two

quarters.



In India the company is well on its way to becoming the biggest biological player

in terms of product portfolio and revenue.



In 2Q, PI commissioned a new biological research center in Hyderabad with a lab

to study plant systems and support growth.

Others



The increase in contract assets aligns with customer delivery schedules planned

for 2H and is fully compliant with applicable accounting standards.



The newly imposed US tariffs have created uncertainty around order

placements and customer decision-making across both the agri and pharma

sectors.



Inorganic growth opportunities are being evaluated to strengthen the

company’s long-term

growth trajectory.

November 2025

CHEMICALS | Voices



The overall order book remains healthy at ~USD1.25b.

Gross margins in the 50-52% range are considered sustainable.

SRF

Current Price INR 2,816

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Click below for

Detailed Concall Transcript &

Results Update

Chemicals business: Specialty chemicals



Specialty Chemicals Business performance improved compared to last year,

driven by higher volumes and operational efficiencies through cost, process

optimization, and favorable product mix.



Recently launched products continued to show positive traction



The management anticipates the robust product pipeline to accelerate future

growth momentum.



SRF launched one new Active Ingredient (AI) along with three new Agro and one

new Pharma product during 1HFY26.



Product funnel remains strong, with several new Pharma intermediates and

Agro AI opportunities under development.



The new Odisha site is set to house future Chemical facilities, strengthening

SRF’s manufacturing footprint and supporting long-term

capacity expansion.



Agro majors have deferred procurement to the late 2HFY26 amid delayed

demand from customers.



Market dynamics are currently being shaped by sustained Chinese competition

and uncertainty surrounding US tariffs.



Raw material prices appear to have bottomed out



The agrochemicals segment is expected to pick up gradually



SRF continues to collaborate with global innovators on complex molecules,

reaffirming SRF R&D leadership in delivering sophisticated solutions.



Historically, 2H has always been stronger than 1H.



Export stood at 65-66% of the revenue in 2QFY26



Full-year growth guidance of specialty chemicals remains on track to surpass the

20% growth as previously guided, despite some deferment of demand seen in

this space.

Chemical: Fluorochemicals



The fluorochemicals business delivered a strong YoY performance driven by

higher volumes and realizations of HFCs across key products.



While some sequential softness in volumes was observed in the domestic

market due to seasonality and an overall lower rack market, the business

continued to demonstrate resilience by enhancing its export sales amid an

uncertain global environment.



SRF maintained its leadership in domestic RAC and MAC markets



Thailand and the Middle East markets continued to perform well



SRF entered into strategic agreements with The Chemours Company for

manufacturing, supply, and distribution of certain fluoropolymers and

fluoroelastomers, with the capex cost now enhanced to INR7.45b from

INR5.95b. The project will be executed in phases and is expected to be

completed by December 2026.



The company is getting into newer products, which were not planned earlier. Of

this INR4.50b is one of the products, which is a non-Chemours product, and the

balance capex is for two products that are of Chemours.

November 2025

CHEMICALS | Voices

The rationale behind the Chemours deal lies in partnering with a global player to

expand the company’s fluoropolymer business and

strengthen its presence in

products that have a global market reach rather than being limited to localized

segments.



A large part of the production will be sold to Chemours for their requirement,

while the Revenue from this agreement is expected to be fairly large



Global HFC prices continue to remain firm, driven by China’s quota-led

supply

restrictions and steady international demand.



Management anticipates the domestic ref gas demand to recover in 2HFY26

after a weak 1H due to prolonged monsoons.



The HFO project is expected to be commissioned in FY27, and revenue will start

from FY28.



The company wants to operate the plant at maximum capacity possible to avail

a higher quota. SRF will end FY26 at maximum capacity.



Export in 2QFY26 stood at 60%.



Prices of R22 have been range-bound. Over the last 2-3 quarters, the price

momentum has been positive.

PFF business



The packaging film business achieved stable revenue in 2QFY26 with a higher

margin compared to 2QFY25, led by higher volumes and realization for BOP and

the ramp-up of production and sales of Aluminum foil; supported by higher

realization in both the domestic and export markets.



Improved performance in Thailand and Hungary, though competition from

cheaper imports supported the growth of the segment



Sequential softness reflected in weak demand and prices for BOPE



SRF maintained its position as India’s largest

BOPET exporter



The global supply for BOPET continues to exceed



The Anti-dumping duty on Chinese aluminum foil imports in India supported

better realizations and improved pricing stability demand.



Chinese suppliers continue aggressive pricing in Southeast Asian markets



GST 2.0 reforms implemented during the quarter seemed to have a short-term

impact. Due to reprinting, repackaging, and resizing, the business remains

focused on scaling, value-added products and sustainable structures



There was some impact of the US tariff on the PFF segment, and SRF has taken

countermeasures such as shifting some US demand to the Thailand unit.

Technical textiles business:



The performance was adversely impacted by a weak market, with the Nylon

Tyre Cord Fabric (NTCF) and Belting Fabric (BF) margin under pressure due to

Chinese imports



Demand for Polyester Industrial Yarn (PIY) remained soft due to the prolonged

monsoons.



The new Belting fabric capacity ramping up is expected to contribute to higher

volumes in 2HFY26.



SRF maintained its market share in NTCF as well as BF.

Other



SRF continued to maintain a leadership position in the domestic market, both in

volume and price, in the coated fabrics segment.



November 2025

CHEMICALS | Voices



SRF retained price leadership in the laminated fabrics market, backed by

consistently strong on-time customer deliveries.

R&D team, comprising of over 450 professionals, is focused on developing

complex chemistries and advanced applications.

SRF now holds 153 patents and has filed 501 process patents. R&D remains at

the core of the strategy, enabling process development, scale-up up and

commercialization across agrochemicals, pharmaceuticals.

However, weakening of INR against USD and Euro has hit the overall 2Q results,

with global interest rate cycles trending downwards, management anticipates

further reduction in the borrowing costs in the near future.

CFO will step down to pursue other opportunities. The company is in the

process of identifying my successor and will ensure a smooth transition to

maintain continuity and uphold its commitment to financial discipline and long-

term value creation.

The company plans to incur a capex of around INR22b-INR23b (including the

Odisha land parcel ~INR2.82b) in FY26.

Tata Chemicals

Current Price INR 827

Click below for

Detailed Concall Transcript &

Results Update

Neutral

Demand-supply scenario



Soda ash remains very well supplied across the world, with inventories high in

certain regions.



Soda ash prices remain weak and, in certain instances nearing record low levels.

Global demand is estimated to be flat in the near term.



Medium to long-term trend is positive, driven by sustainability applications

(Solar PV + EV growth), even with short-term margin challenges.



Lower revenue in the current quarter as compared to the previous year, driven

by lower realization due to pricing pressure in all regions.



Competition is particularly intense in Southeast Asian markets, where Chinese

material is flowing heavily.

India



This run rate of revenue is expected to continue going forward. 1H sales of salt

are expected to continue in 2HFY26



There is an ADD recommendation by DGFT, subject to MoF approval. If ADD is

executed, the upper band results in a difference in price of USD70 -USD100 per

ton. The lower end of the band is around USD30.



Margins on a unit basis are down due to pricing being continuously under

pressure.



Sales of sodium bicarbonate in this business can be the growth driver going

forward.



Pricing in soda ash is expected to be range-bound.



Average import prices to India are in the range of USD232-236 per ton. The

minimum import prices (MIP) are extended until CY25.

North America



Exports to Asia continued to be under price pressure.



There has been a reduction in EBITDA due to two major reasons. One of the

reasons is a one-time reduction in WIP, leading to under-absorption of fixed

cost. The impact of the same was around INR400m.

November 2025

CHEMICALS | Voices

Further, more emphasis was put on exports this quarter. Generally, the ratio of

exports is 50:50. However, exports were higher by 20k tons this quarter due to

spillover.

Europe



Margin improvement was led by the product mix.



There was a one-off cost of INR650m because all the contractual obligations

were reviewed this quarter.



Revenue declined due to the cessation of Lostock. All the historical issues

related to Lostock have been fully resolved, and savings in the power and fuel

costs have been achieved due to the Lostock business.



The company expects the business to turn positive by Q3FY26. Numbers are

only expected to get better going forward.

Africa



Volumes were lower this quarter; however, they are expected to rebound in

2HFY26



Pending litigation with regard to land rates has been ruled in the company’s

favor. The company will wait to check if the local body takes this matter to the

Supreme Court. However, other matters regarding tax have been completely

resolved



Realization is expected to remain low in the current financial year

Situation in China



The policy of the Chinese government is 50% of the capacity to be natural and

50% to be synthetic



This means that another 5m to 6m tons of natural capacity have to come on

stream.



Usually new capacity addition takes 36 months to come on stream



The soda ash market is currently oversupplied with high inventory levels,

particularly in China (1.65m tons), which is putting pressure on spot prices



Intense competition in China due to new capacity coming online in Inner

Mongolia has led to a significant price decline, with Chinese storage prices

falling 56-58% between Q2 FY23 and Q2FY26

Other



General-purpose NCDs are being issued for various plans. The company aims to

debottleneck India and ensure that the Indian capacity goes up in phases.

Company to come back with details by Q3 results



The company has guided for an annual maintenance capex of INR10b for FY26. It

plans to expand its Indian capacity by 50% in two phases (i.e., 15% + 35%).

Further, it plans to add ~42k tons of capacity in Cuddalore and 60k tons of

capacity in Mithapur. The company is planning to raise INR15b through NCDs for

funding these initiatives.



Debt has gone up majorly due to currency exchange rates (INR2.5b). There is no

long-term debt falling due in 2H.



November 2025

CONSUMER | Voices

CONSUMER



In staples, with trade stabilizing after the GST reduction, companies are expecting to see a gradual pickup,

supported by a steady rural recovery and improving urban sentiment. A favorable winter should further drive

demand in health supplements, winter personal care, beverages, and packaged foods. Government measures

to boost rural incomes are likely to strengthen consumption from 3QFY26. Paints are also witnessing better

traction, driven by festive demand and stronger construction activity. In liquor, premiumization continues to

support healthy double-digit growth in spirits. The innerwear segment is seeing a slow but steady recovery as

channel inventory normalizes, with the winter season expected to boost thermal and winterwear demand.

KEY HIGHLIGHTS FROM CONFERENCE CALL

Takeaways from 2QFY26’s performance

Outlook for FY26



The paint industry grew by 3-3.5% in 1H, with

visible recovery in Sep-Oct led by festive demand.



For FY26, the company expects mid-single-digit value



Over the last 6-9 months, APNT strengthened

growth and high-single-digit volume growth, with the

relationships with dealers, focusing on improving

4-5% gap between value and volume likely to persist.

Asian Paints

their RoI and driving higher retail-level business.



In 2HFY26, the company anticipates high-single-digit



New product development contributed over 15% of

value growth supported by festive demand and

total revenue, underscoring the company’s strong

improving macro conditions.

innovation pipeline.



BRIT expects transitionary impact to normalize

progressively in 3QFY26. By Oct end, BRIT revised

~65% of its SKUs and by mid-Nov, all the SKUs will



Going forward, both revenue and volume growth has

have revised grammages and prices.

to be in positive trajectory. The pricing has been



Adj. for GST, BRIT sales could have grown 2-2.5%

slightly impacted by GST 2.0.

Britannia

more in 2Q as Sep sales were impacted by 6-7%.



BRIT is looking to enter RTD protein drinks.



Big three national level players command ~70%



Annual A&P spends as a % of sales for FY26 to be at

market share; ~10-12% share is captured by

historical levels.

significant regional players; rest 15% of the share

held up by value players.



For the last six consecutive quarters, rural markets



Management guided for mid-to-high single-digit

have outperformed urban markets.

revenue growth and mid-single-digit volume growth



Management estimates the one-off GST pipeline

for 2HFY26.

impact at INR1bn (3-4% of sales) in 2QFY26.



Margins to expand sequentially with normalization of

Dabur



Dabur expects the GST rate cuts, especially the

input costs and higher operating leverage.

reduction from 12% to 5% in juices, to aid demand



Dabur expects rural demand to sustain and urban

recovery in 2HFY25.

consumption to recover in 2H as trade stabilizes.



Management expects India standalone to achieve



The GST rate reduction caused short-term trade

high-single-digit underlying volume growth for the

disruption. Management quantified a ~3-4% hit to

year and consolidated high-single-digit revenue

standalone revenue in 2Q from destocking and

growth, with 2HFY26 to be better than 1HFY26.

channel price adjustments.



International margins: In Africa, mid-teen EBITDA

Godrej Cons.



Palm oil has been volatile but range-bound; GCPL

margins are considered a healthy structural target (but

says it is largely priced for current levels and does

with volatility); Indonesia margins are below

not expect material additional margin pressure

normative and under pressure from pricing

from palm at current prices.

competition and distributor changes.



Management expects the combined impact of GST



HUVR remains focused on driving volume-led

cuts, easing inflation, and a more accommodative

competitive growth through four strategic pillars: 1)

monetary policy to drive a gradual recovery in

sharper consumer segmentation, 2) modernizing core

consumption, particularly in rural markets.

and premium brands, 3) strengthening marketing

Hindustan



Volume impact of ~2% in 2Q was attributed to the

capabilities, and 4) reshaping the portfolio around

Unilever

GST transition and trade pipeline adjustments.

high-growth demand spaces.



E-commerce contributes 8% to total sales (12% in



The near-term EBITDA margin guidance remains in the

urban markets), while general trade forms 70% and

22-23% range, with 50-60bp expansion expected

modern trade about 20%, with all channels

following the demerger, as the low-margin Ice Cream

recording growth.

business will be excluded.

November 2025

CONSUMER | Voices



Marico



GST-related disruption hit revenue by 2% in 2Q.

Volume growth should be better than 2Q levels in

the coming quarters, supported by distribution

gains and improved consumer offtake.

Copra prices are expected to meaningfully correct

from March onward and will be range-bound for

the next 2-3 months.

Domestic operating environment should improve,

aided by good monsoon, the indirect cascading

impact of GST 2.0

on PIDI’s demand, and improved

growth in the construction sector driven by benign

interest rates and enhanced liquidity.

For paints, focus remains on ‘Rurban’ markets, with

consistent QoQ growth.

PIDI has not taken any pricing action. With no

significant commodity inflation currently seen, the

company does not plan any major price hikes.

The festive season (Oct-Dec) is expected to sustain

healthy category growth and drive premiumization.

Pocket pack (180ml) format continues to drive

penetration and recruit new consumers.

In Maharashtra, headwinds seen due to a ~35%

price increase post-tax change. Consumer spending

grew ~20-25%, implying ~10-15% volume decline

for the industry.

Luxury segment contributes ~10% of company

sales. Management is confident of achieving INR5b

sales from the luxury portfolio in FY26 (vs 3.4b in

FY25).

The company has launched small SKUs in the P&A

segment, which will lead to more consumer trails

and boost growth.

The industry declined ~25% in Maharashtra and

Radico declined by ~20%.



Revenue growth is expected to remain in double digits

in FY26 in the medium term (unlike other FMCG

peers), driven by pricing, expanded direct reach, and

strong performance in Foods and Premium Personal

Care.

MRCO expects to deliver double-digit EBITDA growth

in 2HFY26 and foresees 200-250 bps margin expansion

in FY27 as RM prices start to ease.

Management expects strong volume growth to

continue in 2HFY26 as well.

Capex to be in the range of 3% to 5% of sales.

PIDI expects gross margins to remain in the 54-55%

range through FY26.

The company maintains its EBITDA margin guidance of

20-24% for FY26.

UNSP expects that 2HFY26 expected to be more

challenging than 1HFY26.

UNSP continues to target double-digit growth, but it

remains cautious given the high base in Andhra

Pradesh and ongoing challenges in Maharashtra.

Marketing reinvestment was 8.4% in 1H, in line with

prior levels. Maintain guidance of 9.5-10% of net sales

for FY26.

FY26 EBITDA margin guidance at mid-to-high teens.

Over next three years, the company expects Magic

Moments to do 10m cases vs 7m in FY25.

For FY26, Radico’s

overall volume growth to be in the

20%+ range with P&A continuing to grow 20%+ in

2HFY26 as well.

The company has maintained its margin expansion

guidance of 125-150bps annual improvement for the

next three years, aiming to reach high-teens margins.

Radico remains on track to be debt free by FY27.



PIDI



UNSP



RDCK



Asian Paints

Current Price INR 2,906

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Detailed Concall Transcript &

Results Update

Neutral

Business and Environment



The decorative business in India reported 11% volume growth, supported by a

favorable base (vs -0.5% in 2QFY25).



Growth was further aided by improved consumer sentiment, supportive

government policies, and an early festive season, despite the impact of an

extended monsoon in September.



Performance remained broad-based across both urban and rural markets, with

all product categories contributing meaningfully, led by an improved offtake in

PreLux and waterproofing products.



Home décor contributed around 4% to decorative revenue, while the Beautiful

Homes Network expanded to 73 stores, enhancing customer engagement and

brand visibility.



The company continued to strengthen its regional customization strategy by

introducing state-specific variants across the full portfolio, ranging from

economy to luxury offerings.

November 2025

CONSUMER | Voices

Demand conditions showed improvement; however, the company remains

cautious about the sustainability of growth, particularly in urban markets.



GST 2.0 reforms and benign inflation are expected to support broader

consumption recovery in the near term.



The overall paint industry grew by about 3–3.5% in 1HFY26, with visible

recovery during September and October, supported by festive demand.



The company expects continued momentum from the festive and marriage

seasons, with a good monsoon likely to further support rural growth in the

coming quarters.



The company highlighted that the practice of offering additional grammage in

paints impacts retailer turnover and creates ambiguity regarding benefit

allocation among painters, retailers, and consumers.



The focus remains on strengthening brand equity through continued

investments in regional and national media to enhance awareness and influence

customer decisions.



Marketing and technology spends are expected to remain elevated as the

company continues to focus on innovation, brand saliency, and premiumization.



Regional and micro-marketing initiatives are helping the company expand its

reach in smaller towns, while innovations in premium and luxury products

continue to drive demand.



For FY26, the company expects mid-single-digit value growth and high-single-

digit volume growth, with the 4–5% gap between value and volume likely to

persist.



In 2HFY26, the company anticipates high-single-digit value growth, supported by

festive demand and improving macro conditions.



The B2B delivered strong growth across all segments, driven by robust demand

from builders, factories, and government projects.



The B2B segment is expected to deliver double-digit growth, with further

support from innovation and expansion into newer categories.

Cost and margins



Gross margins were aided by sourcing and formulation efficiencies as well as

raw material deflation, despite an adverse product mix and higher discounting.



Material cost deflation stood at 1.6% in 2QFY26, providing additional support to

margins.



Raw material prices are expected to remain stable; however, geopolitical

uncertainties and exchange rate volatility could pose upward risks



The company aims to maintain its EBITDA margin guidance at 18–20%,

supported by efficiency measures and product mix improvement, even as

marketing and technology investments remain high amid elevated competitive

intensity.

New launches and Innovation



During the quarter, the company launched SmartCare Damp Secure, an exterior

waterproofing primer that locks in paint and protects against dampness while

enhancing the aesthetic appeal of homes.



It also introduced Sparc Shyne under the Tractor and Ace range, offering a rich

finish at an affordable price point, aimed at balancing aspiration and value.



New product development (NPD) contributed over 15% of total revenue,

underscoring the company’s strong innovation pipeline.



November 2025

CONSUMER | Voices

The company’s painting services network has expanded to over 650 towns

across India, improving accessibility and brand connect with consumers.

Segmental Information



White Teak (decorative and designer lighting) net sales decline 15% YoY,

impacted by BIS-related challenges and subdued retail demand.



Weatherseal (uPVC windows and doors) posted net sales growth of 57% YoY,

driven by an expanded product portfolio, wider reach, and synergies with the

Beautiful Homes Network.



The Kitchen business saw a revenue decline of ~7% in 1Q due to weak demand

conditions.



The Bath business reported a revenue decline of ~5%, also impacted by muted

demand.



PPG Asian Paints (PPGAP) delivered 13% revenue growth, benefiting from strong

performance in the Automotive and General Industrial segments.



Asian Paints PPG (APPPG) posted revenue growth of 10%, driven by the

Protective Coatings segment.

International performance



The international business grew 9.9% in INR terms and 10.6% in constant

currency, led by strong performance in Nepal, Sri Lanka, and the UAE, with

PreLux and waterproofing categories driving growth.



Profitability improved due to lower material costs and the divestment of loss-

making operations in Indonesia.



Britannia Inds

Current Price INR 5,843

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Detailed Concall Transcript

& Results Update

Business environment and performance



BRIT indicated that ~85% of its business underwent changes in GST rates wef

22nd September 2025. Business saw short-term headwinds in September due to

de-stocking by distributors and channel partners, and delayed buying by

consumers.



BRIT has 60%-65% portfolio from LUPs/price packs (INR5/10).



The company expects transitionary impact to normalize progressively in

3QFY26. By October end, BRIT revised ~65% of its SKUs and by mid-November,

all its SKUs will have updated grammages and prices.



The inverted duty structure has been adjusted for price cuts and grammages.



Adjusted for the GST, BRIT sales could have growth 2-2.5% more in 2QFY26 as

September sales were impacted by 6-7%.



Rural market is growth ahead of urban growth. Rains have not impacted much.



Going forward, both revenue and volume growth have to follow a positive

trajectory. Pricing has been slightly impacted by GST 2.0.



BRIT has maintained a healthy gap vs organized national players over the last

three years. However, there has been a marginal share loss for large players to

multiple local and regional competitors.



Management alluded that some national competitors are increasing their focus

on modern trade and discounting to offset regional sales losses. However, BRIT

has not been impacted by this.



The top three national level players command ~70% market share, ~10-12% is

captured by significant regional players, and the remaining 15% is held by value

players.

November 2025

CONSUMER | Voices

In Glucose, BRIT currently holds a single-digit share and aspires to gradually

grow its market share over time.



Dairy is trending below BRIT’s expectations. The cheese market saw high growth

until last year, which has now moderated. The company expects cheese growth

to rebound soon.



BRIT is emphasizing RTD protein drinks over whey protein.



Beverages saw some impact due to extended monsoons.



The Eastern region is seeing normalization post the internal restructuring of the

distribution network.



In the international business, the African business continued growing well, with

JV in Kenya taking healthy shape.



BRIT is in discussion with various state governments that have made

investments in those states to secure fiscal incentives.



The company remains focused on aggressive revenue growth, even at the cost

of slight margin contraction.



The Hindi belt has been performing well albeit on a low base.

Adjacent categories



The Croissant & Rusk segments delivered competitive double-digit growth

during the quarter, driven by the strong momentum in E-commerce Channel.



The wafer segment witnessed the 5th consecutive quarter of healthy double-

digit growth. BRIT augmented additional capacity in North.



Healthy growth for Cheese in E-com and General Trade (India), along with

sequential market share gains.



In Cakes, impulse produ cts such as Brownie continued to gain traction in Urban

markets.

Cost and margins



2QFY26 was a stable commodity quarter; flour costs increased 6%, palm oil

deflated sequentially but rose 29% YoY, cocoa prices rose 9% YoY, and sugar

inflation was 3% YoY, with slight seasonal inflation in milk (happens with the

festival season).



If commodity prices remain stable, margins are expected to improve.



Annual A&P spends as a % of sales for FY26 are expected to be at historical

levels.



Dabur

Current Price INR 520

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Click below for

Detailed Concall Transcript

& Results Update

Demand and Environment



Overall demand environment remained mixed, with a softer start to the quarter

due to heavy rainfall, floods, and GST-related trade disruptions.



Rural markets continued to outperform urban, supported by improved farm

cash flows, normal monsoon in core states, and deeper distribution reach

through Project SETU and last-mile coverage.



Rural growth outpaced urban markets, driven by higher consumption of mass

and mid-tier products and effective localized marketing initiatives.



Urban markets witnessed steady demand in premium and health-oriented

categories but were impacted by short-term disruptions post-GST

announcement.



Management indicated recovery in consumption trends in October with

normalization of trade and gradual channel restocking.

November 2025

CONSUMER | Voices

GST Impact



GST rate reductions across nearly 66% of the Indian portfolio are likely to boost

consumption in the coming quarters by improving affordability and channel



confidence. Currently, 86% of the company’s portfolio comes under the 5% tax

bracket.



The company has passed on benefits of GST cuts to consumers through price

reductions in key categories such as Oral care, Hair care, Juices, Health

Supplements, and Home Care.



Temporary trade disruptions post the GST rate announcement affected

secondary sales and supply chain flow during the quarter.



Management expects GST rate cuts, especially the reduction from 12% to 5% in

juices, to aid demand recovery in 2HFY25.



However, the transition created short-term trade disruptions and inventory re-

pricing effects that temporarily depressed sales in September and carried into

early October.



Management estimates the one-off GST pipeline impact at ~INR1b (around 3-4%

of sales) in 2QFY26.



The company took a grammage increase in 27% of its LUPs portfolio.

Inverted duty structure



Dabur highlighted the issue of an inverted duty structure

—

where weighted

average input tax (~8–8.5%) exceeds output tax (~6.5–7%)

—

creating a

structural cost disadvantage of ~125–150 bps.



The company is implementing seven identified cost and supply chain measures

to partly offset the impact while engaging with authorities for long-term

resolution.



If not addressed systemically, management may consider selective price

adjustments or portfolio rationalization to offset the gap.

Cost and Margin



Dabur delivered stable to improving operating margins during the quarter

despite persistent input cost inflation and temporary trade disruptions.



Gross margin expanded by ~20 bps YoY, supported by a favorable mix shift

towards premium and healthcare portfolios and effective cost optimization

measures.



Key inflation drivers during the quarter included higher costs of packaging

materials (PET, laminates) and certain agri-linked inputs like sugar and honey,

leading to a weighted average inflation of ~8%.



To mitigate these pressures, the company implemented selective price hikes of

3–4% across key categories, including oral care, hair oils, and home care.



Management indicated that premiumization, scale leverage, and operational

efficiencies (in manufacturing and logistics) provided additional cushion to

margins.

International business



International business grew 7.7% in INR terms and 5.5% in constant currency.



Key markets such as the UK, Turkey, Bangladesh, Nigeria, and Dubai witnessed

healthy performance, while Nepal saw a temporary slowdown due to political

disruptions.



Demand in GCC markets remained stable, and Africa continued to post healthy

growth in the health supplements and home care segments.

November 2025

CONSUMER | Voices

Management expects a pickup in international growth in 2HFY25 with increased

brand support and new product introductions.

Winter Portfolio



Winter products contribute significantly to Dabur’s seasonal portfolio,

led by

Chyawanprash, Honitus, and Gulabari.



The company is optimistic about strong winter demand, aided by normalizing

trade post-GST and early festive loading in October.



Management expects a higher offtake in immunity and skincare categories if the

winter season is of normal to higher intensity.

Distribution



Dabur continues to strengthen its rural distribution reach, with rural stockists

and sub-stockist coverage expanding under Project SETU.



The company now reaches over 1.4m retail outlets, with a focus on increasing

direct coverage in semi-urban and rural areas.



Rural secondary sales and off-take trends remain stronger than urban, aided by

localized marketing campaigns and improved supply chain agility.



Urban distribution efforts are focused on modern trade and e-commerce

platforms, where premium SKUs are gaining traction.



Distributor inventory levels normalized to ~22 days, indicating efficient stock

management post-GST transition.

Channels



E-commerce and modern trade channels continued to deliver robust double-

digit growth.



The contribution of digital channels increased, supported by strong sales in

health supplements, personal care, and home care segments.



General trade witnessed a temporary slowdown due to GST transition but is

expected to recover strongly in 2HFY25. GT grew 7% in rural markets and 3% in

urban markets.

New Launches



Several new products were launched across segments:



Oral Care: New SKUs under Dabur Red and Meswak to enhance regional

relevance.



Health Supplements: Honey variants with added health benefits.



Home Care: Odonil Natural and new aerosol formats.



Food & Beverages: Coconut water variants and new Activ Juices.



Continuous focus on expanding the product portfolio and launching premium

extensions to drive value growth.

M&A Plans and Dabur Ventures



Dabur Ventures, a INR5b fund, has been established to invest in digital-first and

high-growth consumer brands in adjacencies like health, wellness, and personal

care.



The Ventures division will pursue strategic minority or majority stakes in

emerging D2C brands with the potential to scale.



Management remains open to bolt-on acquisitions in both domestic and

international markets that complement the core portfolio.

Guidance



Management guided for mid-to-high single-digit revenue growth and mid-single-

digit volume growth for 2HFY25.



November 2025

100

CONSUMER | Voices

Margins are expected to expand sequentially with normalization of input costs

and higher operating leverage.



The company expects rural demand momentum to sustain and urban

consumption to recover in H2 as trade stabilizes.

Segmental performance

HPC



The HPC portfolio performed well with 9% YoY growth.

Oral Care



The toothpaste portfolio recorded robust ~14% year-on-year growth, continuing

to outpace the overall category and gain market share.



Both Dabur Red Toothpaste and Meswak maintained their strong growth

trajectory, supported by effective marketing and increasing consumer

preference for natural ingredient-based products.



Non-herbal portfolio grew 5x of the herbal portfolio.

Skin Care



The ‘Gulabari’ franchise delivered high single-digit

growth, led by healthy

performance of the flagship Gulabari Rose Water and the Face Freshener range.



Fem and Oxy brands also performed well during the quarter, benefiting from

sustained consumer demand and improved visibility across channels.

Home Care



Odonil sustained its double-digit growth trajectory, driven by strong momentum

in gel and aerosol formats, resulting in continued market share gains in the air

freshener category.



Sanifresh exhibited healthy performance with high single-digit growth,

supported by improved penetration and effective brand activations.

Hair Care



The shampoo category registered high single-digit growth along with market

share gains, reflecting recovery in discretionary consumption and successful

brand campaigns.



The hair oils portfolio grew ahead of the overall category and continued to gain

market share, aided by strong traction in value-added and Ayurvedic sub-

segments.

Healthcare



The overall healthcare portfolio grew 1% YoY.

Health Supplements



Dabur Honey delivered strong double-digit growth in the high twenties, driven

by increased consumer focus on health and wellness and enhanced visibility

across modern trade and e-commerce channels.



Dabur Chyawanprash maintained its leadership position in the category, gaining

234 bps market share, supported by focused media initiatives and consistent

brand communication emphasizing immunity benefits.

Digestives



The Hajmola franchise registered double-digit growth and further strengthened

its leadership position, gaining market share in the digestives category on the

back of steady consumption trends and effective promotional activities.



Pudin Hara Fizz continued to receive a positive consumer response, aided by

focused advertising campaigns and expanded distribution reach.



November 2025

101

CONSUMER | Voices

OTC & Ethicals



Honitus recorded strong double-digit growth, driven by seasonal demand and

continued consumer trust

in the brand’s efficacy.



Health Juices sustained their double-digit growth momentum, supported by

rising consumer preference for natural and immunity-boosting beverages.



The overall segment performance was partially impacted by the discontinuation

of Diaper Baby Super Pants and temporary trade disruptions arising from the

GST transition.

Food & beverages



The foods and beverages segment saw 2% YoY growth in 2QFY26.



The foods portfolio delivered double-digit growth during the quarter, led by

strong performance in coconut milk, edible oils, and fats.



The Activ range, which includes juices and coconut water, maintained its robust

double-digit growth momentum, supported by higher penetration and

increasing preference for healthier beverage options.



The Real Juices portfolio, however, was impacted by heavy rainfall, floods, and

landslides in key markets, which disrupted supply chains and affected on-ground

consumption.



The recent GST rate reduction from 12% to 5% on juices is expected to boost

affordability and improve consumption trends in the coming quarters.



Despite temporary headwinds in 2Q, the company outperformed the overall

category, gaining 115 bp market share in the nectars category and a significant

1074 bp in the 100% juices segment, reaffirming its strong brand equity and

market leadership.

Emami

Current Price INR 519

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& Results Update

Performance and outlook



The implementation of GST 2.0 temporarily impacted offtake due to trade

disruptions. Around 88% of the core domestic portfolio benefited, with 93% of it

now falling under the 5% GST slab, following revisions across 293 products and

497 SKUs.



Excluding GST-impacted categories, the non-impacted portfolio delivered a 10%

YoY growth during the quarter.



The summer portfolio witnessed a second consecutive challenging quarter, as

excessive rainfall dampened offtake in the talc and prickly heat categories amid

a high base.



Trade and consumer purchases were deferred in anticipation of lower MRPs,

while distributors prioritized liquidation of higher-cost inventory, leading to

temporary moderation in sales.



The timing of the GST revision coincided with peak winter pipeline build-up,

resulting in a deferment of the company’s winter portfolio loading.



The company saw a recovery in Oct’25 with trade sentiment improving and

deferred winter loading picking up; the first 10 days of November also witnessed

healthy winter portfolio loading.



Winter portfolio loading has been healthy across regions, and the company

remains optimistic about a strong winter season.

November 2025

102

CONSUMER | Voices

The consolidated sales were largely due to deferred winter loading (4.4%),

summer portfolio weakness (4.5%), and GST implementation (4%), partially

offset by 2.5% growth in the non-GST portfolio.

The domestic business volume declined 16% YoY.



Distribution focus remains on modern trade and e-commerce, including Q-

commerce, while maintaining a strong footing in general trade.



Within domestic revenues, modern trade and e-commerce each contribute 11%.

Q-commerce is 40% of e-commerce sales.



Sachets accounted for ~20% of the domestic portfolio and experienced a

grammage increase, while the rest of the portfolio witnessed MRP reductions to

align with the revised GST rates.



The company expects high single-digit growth in 3QFY26, with the potential to

deliver

double-digit

growth if the winter season continues to perform well.

Cost and margins



Gross margins remained stable, with no pressure from raw material costs.



Management expects margin expansion and strong EBITDA growth in 2HFY26.

Segment performance



The Smart & Handsome brand expanded into 12 new male grooming categories,

including sunscreens, shower gels, under-eye creams, deodorants, face serums,

and sheet masks.



Kesh King was relaunc hed as Kesh King Gold, featuring refreshed packaging,

sharper positioning, and an upgraded formulation enriched with Gro Biotin and

Plant Omega 3-6-9

—

proven actives that enhance the efficacy of 21 Ayurvedic

herbs for visible, result-oriented performance.



While Kesh King shampoo sachets continue to face some pressure, renewed

focus on sachet growth

—

particularly in rural areas

—

has started showing

encouraging traction.



The company strengthened its Zanducare portfolio with Good Gut Cleanse &

Detox Shots and Acidity & Bloating Relief Tablets, complementing three digital-

first innovations introduced in 1Q.



The strategic portfolio grew 16% YoY, and management expects double-digit

growth in 2HFY26, outpacing 1HFY26 performance.



International performance



The international business reported modest growth across markets, with

primary sales up 8% YoY.



Several new product developments (NPDs) are being launched across key

international markets.



Nepal delivered over 100% growth despite operational disruptions.



Growth of over 20% was recorded in SAARC and Bangladesh, while performance

in GCC and MENA regions was flattish.



Godrej Consumer

Current Price INR 1,142

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Results Update

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Business operations and environment



In India, underlying demand remains resilient as India (ex-soaps) delivered

double-digit underlying volume growth in the quarter, signaling healthy core

consumption despite GST disruption; overall India volumes were +3% and

revenue +4% for the quarter.

November 2025

103

CONSUMER | Voices

The recent GST rate reduction transition led to short-term trade disruptions as

the channel adjusted to new pricing and cleared old inventory, particularly

impacting Soaps and Hair colour. Despite this, GCPL continues to gain market

share in Soaps and other key categories. Demand is expected to normalize in the

coming months as trade channels return to normal.



The GST rate reduction caused short-term trade disruptions. Management has

quantified a ~3-4% hit to the standalone topline for the quarter from destocking

and channel price adjustments.



Soaps and hair colour were most impacted as the channel cleared old inventory

and adjusted to new MRP bands. Roughly two-thirds of gram-pack SKUs saw

price increases, while one-third saw price cuts.



The company expects most restocking and pipeline normalization to be

completed by the December quarter, with 2H volumes and margins normalizing

sequentially.

Cost and margins



In 2Q, India EBITDA was softer (GST deleverage), but management expects a

sequential recovery and return to the normative standalone margin band (cited

~24-26%), likely toward the lower end in 2H.



Key margin tailwinds include media/marketing efficiencies and cost saving

initiatives.



Commodity (palm): Palm oil has been volatile but range-bound (~4,000–4,500

MYR recently). The company says it is largely priced for current levels and does

not expect any material additional margin pressure from palm oil at current

prices. Adequate domestic refined palm availability and favorable pricing further

support margins.



International margins: Africa: Mid-teen EBITDA margins are considered a

healthy structural target (but with volatility). Indonesia margins are below

normative and under pressure from pricing competition and distributor

changes.



Consolidated EBITDA growth may be slightly lower than the earlier guidance due

to temporary international weakness.

New launches



Home care:

The company has launched a toilet-cleaner SKU (entered ~INR30bn

category) and Goodrich/Spic in selective South markets at aggressive pricing

(INR59/500ml).



Fab and Good-Knight Agarbathi continue to scale. The air Pocket (air freshener)

rollout is getting strong consumer traction internationally.



Household insecticides (HI): New molecule relaunches and INR50 packs

supported affordability and share gains in electric formats. The company

reported market share gains across electric, coils, and incense sticks (incense

sticks reported strong growth).

Home care



Household Insecticide (HI):

Continued share gains across electrics and coils after

new-molecule relaunch; electrics saw a good uptake, though 2Q seasonality

tempered growth. Incense sticks saw a particularly strong growth (management

cites ~100% growth in that sub-category).



Air fresheners: Air fresheners delivered robust performance. The company

launched new Air Pocket internationally, which received strong responses.



November 2025

104

CONSUMER | Voices

Personal care



Soaps:

The company reported volume share gains despite GST shocks; the

decline in soaps during the quarter was attributed to GST-related destocking

and price adjustments, but management expects a strong rebound. Post GST,

two-thirds of the soaps portfolio experienced grammage increases while one-

third saw price cuts.



Deodorants:

Park Avenue was extended into deo-lotions in Tamil Nadu

(antiperspirant play); Park Avenue and other deodorant offerings are being

scaled via both organic and extension moves.



Liquid detergents & bodywash:

Fab and liquid portfolios are performing well.

The company is expanding liquid/pack formats as part of the soaps to liquid

upgradation opportunity.

International business



Indonesia:

The business experiences a low single-digit volume growth (market

slowdown + intense price competition). Its reported revenue was negative (-

7%), including -4% impact due to pricing and distributor reclassification. Margin

pressures are present, and near-term recovery is expected but may take a few

quarters. Management expects industry volume to remain subdued (2-4%) in

the near term.



Africa:

The

business recorded strong performance, with ~25% INR growth (≈15%

constant currency) and ~20% EBITDA growth in 2Q. Management views mid-

teens EBITDA margins as a good structural outcome, though currency and

seasonality can add volatility. Growth may normalize to high-single digits on a

tougher base.



Latin America:

The business faced temporary macro headwinds (and

contributed to the consolidated softness). Management described LATM as

‘volatile’ in the near term and has flagged this as a factor that may cause

consolidated EBITDA growth to fall short of initial targets.

FY26 guidance



Management expects India’s standalone business to achieve high single-digit

underlying volume growth for the year and consolidated high single-digit

revenue growth, with 2HFY26 expected to be better than 1HFY26.



India’s standalone and GAUM businesses are expected to deliver double-digit

EBITDA growth for the full year. The consolidated EBITDA growth may be

marginally lower than the earlier guidance due to softness in Indonesia/LATAM,

but management expects a sequential improvement.

Hindustan Unilever

Current Price INR 2,404

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Results Update

Operational environment



Management stated that the recent GST rate cuts are a positive structural

reform that will help boost consumption, improve disposable income, and

strengthen overall consumer sentiment.



Around 40% of HUL’s portfolio has transitioned to the 5% GST bracket,

and the

company has undertaken pricing and grammage revisions across more than

1,200 SKUs to reflect the changes.



The company extended support to trade partners during the transition period to

ensure price pass-through and smooth implementation across the network.

November 2025

105

CONSUMER | Voices



Temporary disruptions were observed at distributor and retailer levels due to

the GST rate revision, but management expects normal trading conditions to

resume from early November.

Management expects the combined impact of GST cuts, easing inflation, and a

more accommodative monetary policy to drive a gradual recovery in

consumption, particularly in rural markets.

Volume impact of ~2% during the quarter was attributed to the GST transition

and trade pipeline adjustments.

Price elasticity varies by category, with higher elasticity seen in skin cleansing

and tea, while home care continues to remain relatively resilient.

E-commerce now contributes about 8% of overall sales and around 12% of

urban sales, reflecting its growing importance in the channel mix.

The company remains in the investment phase for e-commerce, following a

‘design-for-channel’ strategy to develop packs suited for e-commerce

and quick

commerce platforms while managing channel profitability.

Over 50% of HUL’s marketing investments

are now allocated to digital media,

supported by ROI-focused execution and data-driven insights from its in-house

analytics platform, Sangam.

The company continues to drive premiumization across categories, particularly

in laundry and personal wash, with consumers gradually upgrading from

powders to liquids and from soaps to body washes.

Management noted that body wash penetration remains low at about 2%,

compared to 7-8% for laundry liquids, indicating a significant opportunity for

future growth.

HUL remains focused on driving volume-led competitive growth through four

strategic pillars: 1) sharper consumer segmentation, 2) modernizing core and

premium brands, 3) strengthening marketing capabilities, and 4) reshaping the

portfolio around high-growth demand spaces.

HUL continues to focus on developing underpenetrated categories and shaping

consumer habits to expand its market leadership across 85% of its portfolio.

Management reiterated its medium-term focus on achieving volume-led growth

and building long-term category development rather than short-term margin

maximization.

The company believes FY27 will serve as a more accurate benchmark for

assessing the impact of its ongoing strategic initiatives and structural changes.

The GST rate cuts have benefited about 40% of the portfolio, including Skin

Cleansing, Packaged Foods, and Hair Care, though short-term disruption

impacted these categories.

The trade pipeline spans 4-6 weeks, with normalization occurring faster in

modern trade and e-commerce, while general trade takes longer due to its 9m

outlet reach.

Home Care grew volumes in mid-single digits, demonstrating resilience, while

Tea and Skin Care delivered high single-digit growth, both led by volume.

The Horlicks portfolio showed early signs of recovery, with green shoots visible

in the nutrition category.

The company remains focused on volume-led revenue growth and expects

consumption to improve with higher net disposable income and better

consumer sentiment.

November 2025

106

CONSUMER | Voices

Urban markets account for two-thirds of consumption, while rural represents

two-thirds of livelihoods; demand in both segments remains stable with a

positive outlook.



HUL continues to adapt its pack-price architecture, improving grammage and

introducing revised price points, with most new packs expected to be in trade by

early November.



E-commerce contributes 8% of total sales (12% in urban markets), while general

trade forms 70% and modern trade about 20%, with all channels recording

growth.



Management

highlighted India’s 400m Gen-Z

consumers as a key focus group,

driving initiatives to enhance packaging, product propositions, and bold

marketing for stronger youth engagement.



Costs and margins



Near-term EBITDA margin guidance remains in the 22-23% range, with 50-60bp

improvement expected following the demerger, as the low-margin Ice Cream

business is excluded.



Ice Cream contributes around 3% of overall sales and operates at low single-

digit margins. Post the demerger (expected in 3QFY26), margins will reflect

excluding the Ice Cream business.



Management guided that the GST rate change will have no material impact on

EBITDA margins in the medium term.



The company reiterated that commodities remained divergent

—

palm oil and

SMP were inflationary, while tea and crude oil prices trended lower during the

quarter.



Employee and other expenses together accounted for 18-18.5% of sales,

fluctuating slightly through the quarter.

Segmental highlights

Home Care



Home Care delivered a sustained competitive, volume-led performance on a

strong base.



The segment reported mid-single digit UVG, which was offset by price

reductions taken in previous quarters, resulting in a flat USG.



Fabric Wash recorded mid-single digit volume growth, driven by strong double-

digit growth in liquids, supported by successful innovations and competitive

pricing actions.



Household Care achieved double-digit UVG, led by robust growth in dishwash

liquids.



During the quarter, the company launched Comfort Perfume Deluxe, a premium

fabric conditioner inspired by award-winning fragrances, featuring a perfume-

first formulation that delivers a sophisticated fragrance experience for clothes.

Beauty & Wellbeing



Beauty & Wellbeing delivered robust growth in Skin Care and Health &

Wellbeing, partially offset by GST-led moderation in Hair Care.



The segment reported 9% USG and flat volume growth, driven by strong

performance in Skin Care and Health & Wellbeing.



Hair Care continued to strengthen its market leadership during the quarter;

however, turnover declined YoY due to the transitory impact of GST rate

rationalization.



November 2025

107

CONSUMER | Voices

Channels of the Future maintained its competitive double-digit growth

trajectory.



Health & Wellbeing sustained strong momentum, led by OZiva’s triple-digit

growth.



During the

quarter, the company launched Pond’s Hydra Miracle Ultralight

Biome moisturizer, offering advanced hydration and microbiome benefits;

Vaseline Cloud Soft, specially formulated for Indian facial skin; and OZiva Phyto

Ceramides + Collagen Builder, a science-backed ingestible skincare supplement

that helps restore the skin barrier and boost collagen production.



Minimalist delivered strong double-digit growth in 1HFY26.



Personal care



Personal Care reported flat sale growth, while UVG declined in high single digit

during the quarter, impacted by the GST rate transition.



Skin Cleansing delivered a competitive performance, supported by double-digit

growth in premium soaps.



Bodywash continued to strengthen its competitive position in the category.



Oral Care witnessed a marginal decline, though Closeup recorded low-single

digit growth.



Premiumization remained a key focus area, highlighted by the re-launch of Pears

with refreshed packaging and proposition, and the expansion of the Lux

International soap range.

Food & Refreshment (F&R)



Foods delivered 3% USG with low-single digit UVG during the quarter.



Beverages (Tea and Coffee) grew in double digits, supporting the overall

segment performance.



Tea recorded high-single digit growth, driven by a healthy mix of price and

volume, while Coffee sustained its strong double-digit growth momentum.



Early green shoots were visible in Lifestyle Nutrition, with sustained UVG;

however, turnover declined due to pricing actions taken in previous quarters to

refine the pack-price architecture.



Packaged Foods delivered a subdued performance amid the GST transition.

Market Makers continued its robust growth momentum during the quarter.



Ice Cream turnover declined YoY, impacted by prolonged monsoons in parts of

the country and the GST transition.



The quarter also saw the launch of Horlicks PRO Fitness, a science-backed meal

replacement solution, and BRU Gold Edition, offering a premium coffee

experience for consumers.



Indigo Paints

Current Price INR 1,326

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Performance and outlook



Industry demand has improved after nearly six months of softness, despite

continued weather-related disruptions from the extended monsoon.



The company is witnessing clear signs of demand recovery, supported by robust

secondary sales and strong dealer inflows.



Product mix is expected to improve as exterior paint applications gain

momentum.



Within paints, the premium segment of emulsions and enamels continues to

outperform the economy segment.

108

November 2025

CONSUMER | Voices

Emulsions reported 4% volume growth and 7% value growth in 2QFY26.



Enamels and wood coatings grew by 3% in volume and 6% in value.



Putty and cement paints declined 7% in volume and 2% in value.



Jul saw healthy offtake, Aug was weak, and Sep showed a recovery trend.



This year, one month prior to Diwali, dealers typically stock up inventory;

historically, this leads to an acceleration in post-Diwali sales.



The company expects double-digit growth in 3QFY26 and high double-digit

growth in 4QFY26.



The company highlighted that larger competitors have not significantly

impacted its performance over the last two years. Despite unprecedented trade

discounts offered by peers, the company largely refrained from matching them,

thereby preserving margins.



In Bihar, only two phases of elections were conducted this time compared to

five to six previously, resulting in fewer disruptions to transportation and

logistics. The company does not anticipate any material positive or negative

impact from the Bihar el ections on demand.



Management said that Bihar continues to be among the strongest performing

states for INDIGOPN, delivering double-digit growth for the past 7-8 months

despite broader industry weakness.



The company holds the No. 2 position in Chhattisgarh, No. 3 in Kerala and No. 4

in most other states, indicating substantial headroom for market share gains.



Management highlights that it normally takes 5-6 years to establish a strong

foothold in any new state, as the process involves gradual distribution network

expansion and brand penetration.

Guidance



Gross margin expansion was supported by a gradual decline in raw material

prices, without any corresponding price cuts, and a continued focus on premium

product mix improvement.



EBITDA margins for FY26 are expected to improve on the back of improvement

in demand, lower raw material prices and an improved product mix.



Ad spends declined to 5% of sales in 2QFY26, as highlighted earlier. A&P spends

as a percentage of revenue may decline slightly in FY26, despite increased

investments in digital marketing.

Distribution network



It added 355 tinting machines in 2QFY26, bringing the total count to 11,656.



As of Sep’25, the number of active

dealers stood at 18,914, up by 358 QoQ.

Apple Chemie



Apple Chemie has become the first construction chemical manufacturer to

receive NABL accreditation.



The company reported strong all-round growth, supported by a significant

improvement in gross margins, driven by a better product mix.



Maharashtra remains the key revenue contributor, while sales traction is

strengthening in the Eastern and Southern regions.



With refreshed branding, the company plans to launch new products and

accelerate its growth momentum.



It expects that Apple Chemie’s sales contribution

will increase to double digits

next year from the current high-single-digit contribution.



November 2025

109

CONSUMER | Voices

Others



The Jodhpur water-based plant (90,000 KLPA capacity) is in the final stages of

construction and is expected to be commissioned in 4QFY26.



Equipment commissioning is underway at the solvent-based plant (12,000 KLPA

capacity), with commercial production expected to commence in Dec’25.



Trial production has begun at the brownfield putty plant, with commercial

operations scheduled for mid-Nov’25.



Apart from these projects, the company does not anticipate any major capex

over the next 3-4 years.

LT Foods

Current Price INR 408

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Industry and Domestic Scenario



The Basmati and specialty rice market in India/NA/Europe+ UK/ME is estimated

at ~INR500b/INR250b/INR75b/INR400b with expected Industry CAGR of ~7-

9%/10-12%/4-6%/9-10%.



LT Foods contributes 7-8% of the total basmati rice production in India, with

production at par with the previous year.



India constitutes 30% of revenue, with LT Foods having a 26% market share.



The company is investing heavily to create a brand image in the Indian market.

Guidance



LT Foods is expecting to achieve a 14% EBITDA margin in the next four years.



The US tariff impact is expected to be clear in two months.

International business



Golden Star continues to remain the number one Jasmine rice brand



NA accounts for 46% of revenue for LT Foods and continues to be a key growth

driver, with a 47% YoY revenue growth (16% normalized)



Europe and the UK constituted 15% of overall revenue, driven by rising demand

and expanding market reach



The EMEA constituted 9% of the revenue (-18% YoY)

Acquisition in Hungary



LT Foods entered into the EUR15b European processed canned food market via

the acquisition of Global Green. The Acquisition was at an EV of ~EUR25m,

financed largely by debt on an all-cash basis.



Intangible value is ~EUR6-7m with the business having overall lower operational

costs. This acquisition adds an est. EUR40m revenue.



LT Foods has signed the SHA and is awaiting approval from the Hungarian

government.



This acquisition strengthens the Company’s footprint across Central & Southern

Europe.

Organic business



The organic business is continuing its momentum, with a 21% growth in 2QFY26,

driven by increasing consumer preference for healthier and sustainable food

choices.



Nature Bio Foods Limited has entered the B2C segment in Europe with the

inauguration of a new facility in Rotterdam. With an initial investment of

INR200m, further INR150m is planned to be deployed over the next three years.

LT Foods is expecting incremental revenue of INR4000m by the next five years,

with expected revenue acceleration from FY26-27.

November 2025

110

CONSUMER | Voices

In 1HFY26, LT Foods outsourced operations to a third party as the company is

building its private label business, which impacted the margins. The Company is

expecting margin recovery from 4QFY26.

RTH and RTC



LT Foods expanded its folio with the launch of Dawat Thai Green Curry Rice Kit,

and the introduction of the Thai Green Curry kit was followed by a strong

performance of Dawat Biryani Kit, which has crossed 1 million units of annual

consumption since its inception.



Heavy promotions and brand investments resulted in Margins decline for this

segment.



LT Foods faced a capacity constraint due to the production delay of the second

unit of the RTC capacity setup in the US. Capacity improvements expected from

4QFY26.

Other



The Company achieved the highest Revenue in the 2QFY26/1HFY26, led by

strategic investments, improved distribution channels, and increasing consumer

demand.



CVD’s public hearing

was conducted for Ecopure Specialties Ltd; final

determination postponed by 1 month; expected by 17th Nov 25.



Trade payable days increased by 15 days YoY on account of better negotiation

with suppliers.



The US tariffs are being passed down to customers (initial 10% passed; for 20-

50% duty, negotiations ongoing)



LT Foods India's business is cash-surplus; the international business is financed

by short-term borrowings.



Marico

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Business environment and outlook



The company witnessed steady demand trends across India during the quarter,

except for a temporary disruption in the trade channel ahead of the

implementation of new GST rates in September.



The India revenue grew 35% YoY, supported by timely price hikes in core

portfolios to counter sharp inflation in key raw materials.



Offtake remained strong, with over 95% of the business gaining or sustaining

market share and more than 75% gaining or sustaining penetration on a MAT

basis, reflecting healthy consumer traction.



Around 30% of the India business benefited from the recent GST rate

rationalization, and the company has passed on these benefits to consumers to

enhance affordability and support category growth.



The operating environment continues to favor organized players, with improved

rural sentiment, gradual urban recovery, and government-driven consumption

stimulus aiding demand.



The business witnessed some impact in the first half of October due to the GST

transition, but demand has now fully normalized across channels.



The GST-related disruption caused nearly a 2% revenue impact in 2Q.



Management highlighted that volume growth should be better than 2Q levels in

the coming quarters, supported by distribution gains and improved consumer

offtake.

111

November 2025

CONSUMER | Voices

Historically, whenever the industry enters a deflationary cycle after a prolonged

inflationary period, the company sees 200–250 bps margin expansion, and it

expects a similar improvement in FY27.



The company expects to deliver double-digit EBITDA growth in 2HFY26,

supported by improved operating leverage and normalization of input costs.



The VAHO portfolio operates at margins higher than the company average,

driven by strong pricing, premiumization, and an improved product mix.



Copra prices are expected to meaningfully correct from March onwards and will

be rangebound for the next 2-3 months.

Material costs, margin, and guidance



Copra prices remained elevated due to hyperinflation, although they corrected

by nearly 15% from the early 2Q peak, providing marginal relief for the

Parachute franchise.



Vegetable oils also stayed at higher-than-normal levels, limiting immediate

margin expansion opportunities within the edible oils and personal care

categories.



Crude oil derivatives remained largely rangebound during the quarter, allowing

some stability in packaging and freight costs.



The company continues to use a mix of calibrated price increases, ml-age

reductions, and cost optimization initiatives to protect profitability.



Profitability in the Foods segment improved meaningfully, with ~1000 bps gross

margin expansion over FY24–25, reflecting scale benefits and portfolio

premiumization.



Management expects gross and operating margins to gradually improve over

the medium term as material cost inflation eases, scale efficiencies build, and

premium personal care contributes a higher share.

Segmental performance

Parachute coconut oil



Parachute posted a 3% volume decline, primarily due to unprecedented

hyperinflation in copra prices, which elevated consumer price points.



After adjusting for the ML-age reductions that were introduced to offset

inflation, the brand’s underlying volume performance was broadly flattish.



The company temporarily rationed supplies to selected institutional customers

to safeguard brand profitability during the period of extreme input cost

pressure.



Despite multiple price interventions, Parachute maintained its market share on

a MAT basis, underscoring its strong brand equity, loyalty, and pricing

inelasticity.



Revenue for the brand grew 59% YoY, led by price increases and mix.

Saffola oil



Saffola Edible Oils reported flattish volumes, given the relatively elevated pricing

environment in the refined edible oils category.

Despite volume softness, the business delivered 19% revenue growth, reflecting

the price-led construct of the category.

The newly launched Saffola Cold Pressed Oils range received encouraging

consumer response, especially through E-commerce and Q-commerce channels.

As part of its category-building initiatives, the brand launched an AI-powered

“Heart to Heart Talk” campaign on World Heart Day to drive deeper awareness

around heart health.

112

November 2025

CONSUMER | Voices

VAHO

The VAHO portfolio grew 16% in value terms, marking the second consecutive

quarter of strong double-digit growth and a sustained recovery trajectory.



The franchise gained an additional 150 bps value market share on a MAT basis,

supported by effective brand investments and distribution expansion.



Growth within the portfolio was driven by stronger momentum in the mid-tier

and premium segments, which continue to outperform the overall category.



The company’s direct distribution expansion through Project SETU, along with

benefits from GST rate reductions, further strengthened the growth outlook.



Management expects the VAHO franchise to maintain healthy growth over the

near and medium term, supported by portfolio renovation and improved

channel reach.

Foods



The Foods portfolio grew 12% YoY, and its annualized revenue run rate crossed

INR11bn, marking a significant milestone for the business.



Saffola Oats continued to gain market share on a MAT basis and maintained its

position as the #1 oats brand in India.



True Elements and the plant-based nutraceuticals portfolio under Plix

maintained strong growth momentum, supported by innovation and digital-led

distribution.



Towards the end of the quarter, True Elements expanded its ready-to-eat range

with new high-protein, high-fiber Protein Bars and Overnight Oats, introduced

across online channels.



Premium Personal Care



Premium Personal Care continued its strong double-digit growth trajectory, led

by the robust performance of Digital-first brands such as Beardo, Just Herbs, and

Plix Personal Care.



The digital-first portfolio crossed INR10bn in ARR, reflecting the success of the

company’s digital acceleration strategy.



The profitability of these brands has improved steadily, with Beardo expected to

surpass a double-digit EBITDA margin this year and Plix delivering single-digit

EBITDA while scaling rapidly.



The company aims to scale the digital-first portfolio to ~2.5x of FY24 ARR by

FY27, supported by TAM expansion, innovation, and deeper brand penetration

across channels.



Premium personal care continues to be a key pillar of diversification,

progressively improving its share in India Net Contribution.

International business



The international business delivered 20% constant currency growth, showcasing

broad-based strength across core markets.

Bangladesh grew 22% in CC terms, supported by a stable core portfolio and the

scaling up of newer categories.

Vietnam reported 6% CCG and displayed early signs of recovery after a period of

macro softness.

MENA delivered a strong 27% CCG, driven by growth across the Gulf region and

Egypt.

South Africa grew 1% CCG, with recovery expected in the second half of the

fiscal year.

November 2025

113

CONSUMER | Voices



The NCD and exports segment posted a robust 53% growth, driven by renewed

demand and improved route-to-market execution.

Premium personal care in international markets has scaled at a 24% CAGR

between FY21 and FY25, increasing its revenue share from ~20% to ~29%.

The company plans to maintain double-digit constant currency growth in the

medium term through portfolio diversification, premiumization, innovation, and

targeted investments across its key geographies.

Page Inds

Current Price INR 39,246

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Performance and outlook



Consumption remained subdued through most of the bygone quarter. However,

with the start of the festive season, we did see a good uptick in primary sales

during latter half of Sep’25.



The GST rate rationalization in Sep’25 also had a positive rub-off

on consumer

sentiment. PAGE has passed on the rate benefit to consumers as applicable.

Almost 90% of PAGE sales are from less than INR1k category.



PAGE has not been benefitted much from cost per se because even earlier, the

costs were booked net off GST.



The festive season has been better than first half of 2QFY26. PAGE expects

2HFY26 to be better than 1HFY26.



Over last year, PAGE reduced inventory at partner level and hence, saw some

volume volatility between quarters. In addition, seasonality impacts quarterly

volumes. That said, the company has stabilized now (in terms of ARS, etc.) and

thus volume volatility is likely to normalize.



Primary sales are in line with secondary sales.



PAGE expects double-digit sales growth in a normalized business environment.



For FY26, PAGE plans two season launches for its JKY Groove - spring summer

season saw healthy offtake. The second season with winter lineup will be

launched in next two weeks. JKY Groove will operate in 150-200 EBOs (vs. 50

EBOs currently) and online channel across 50 cities.



Jockey brand penetration in men’s innerwear is in the range of 17.5-18%.



PAGE launched a new product line with bonded technology in bras and men's

innerwear in Sep’25 and the initial consumer response has been encouraging,

despite higher price points compared to ASP of Jockey. The company will be

expanding its reach gradually.



The premium ranges outperforms the entry-level ranges across categories for

PAGE.



The company is working on various initiatives for tapping into the bottom-of-

pyramid customer cohort.



Women consumers are different from men and thus the women’s innerwear

category has much higher average order value.



Modern retail, including ecommerce, continued to do well.



PAGE’s efforts to enhance operational efficiency

while keeping product prices

stable and focused marketing initiatives have contributed to steady profitability.



Product prices in 2Q have remained unchanged.

November 2025

114

CONSUMER | Voices

In athleisure, the company has revamped its designing and new products reach

all the outlets in three months. Moreover, athleisure inventory levels are largely

normalized.



FY26 capex to be INR1400m and as of 1HFY26 ~INR570m has been used, largely

for the Orissa plant.



Capex-linked incentives of INR500m will be realized in FY27 in P&L as subsidy

received.

Costs and margins



The company is able to reduce its labor costs per minute and sewing

efficiencies, which have been supporting YoY gross margin expansion.



Employee expenses were high due to increments and increase in headcounts,

and high marketing expenses weighed on 2QFY26 EBITDA margins.



Ad spends are expected to be 4-5% for FY26.



Marketing expenses were higher YoY but flat QoQ, leading to a rise in other

expenses in 2QFY26.



FY26 EBITDA margin guidance remains broadly unchanged at 19-21%.

Distribution channels



PAGE has a distribution network comprising 110,636 MBOs, 1,527 EBOs, and

1,327 LFS as of Sep’25.



Speedo brand is available in 841 stores and 34 EBOs across 150+ cities.



Online business, including quick commerce, continues to see robust growth.



Inventory levels across distribution network remained healthy in 2QFY26.



Women’s innerwear segment has gained in terms of sales and distribution reach

over the last 3-4

years and the gap vs. men’s innerwear segment has narrowed

significantly.



PAGE has headroom for increasing penetration in T2 and 3 cities.



Geographically, PAGE categorized the country internally in eight parts and then

targets to grow in selected regions.



The company has not lost any shelf share in the GT market, indicating no major

competitive pressure from industry peers.



Pidilite Industries

Current Price INR 1,491

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Demand environment and outlook



The domestic operating environment is expected to improve, aided by favorable

monsoons, the indirect cascading impact of GST 2.0 on PIDI’s demand, and

accelerated growth in the construction sector driven by benign interest rates

and enhanced liquidity.



However, the company remains vigilant to geopolitical developments, given

their potential to disrupt supply chains and create uncertainty around global

tariffs.



PIDI saw healthy growth from the C&B segment, which grew 10.4% YoY. The

B2B business grew 9.9% YoY, while the domestic B2B business grew in mid-

teens in 2QFY26.



Demand trends remain healthy, with double-digit Underlying Volume Growth

(UVG) seen across segments. Management expects the strong volume growth to

continue in 2HFY26 as well.

November 2025

115

CONSUMER | Voices

The company has not taken any pricing actions. With no significant commodity

inflation currently seen, the company does not plan any major price hikes.



Exports were impacted due to geopolitical uncertainties as well as tariffs in

some markets.



Rural growth continued to outpace urban growth in 2QFY26. That said, urban

has been improving gradually.



PIDI is positioned well to capture both new construction and renovation

demand.



It is building a full-fledged architect interior design program.



The

company’s Haisha Paints business continues to make steady progress. It

started with five southern states and is now present in several Eastern

geographies. The focus remains on ‘Rurban’ (rural and smaller town) markets,

with consistent QoQ growth.



In its core categories, the company aims to grow at 1-2x GDP, while in its

emerging or growth categories, it targets 2-4x GDP. However, given the current

demand environment, growth may remain at the lower end of these ranges.



PIDI remains open for any inorganic growth opportunities.



The company’s core portfolio continues to perform well, and its new, innovative

product offerings are also gaining traction. Newer projects and preimmunized

products have also started delivering strong performance, and these demand

trends are expected to continue going forward.



Capex is expected in the range of 3% to 5% of sales.

Cost and margin



VAM prices in 2QFY26 were USD883 vs USD 980, leading to GM improvement of

~70bps YoY to 55%. The company expects VAM prices to remain benign and

range bound.



Ad spends increased 80% YoY, and as a percentage of sales, they rose ~150bps,

resulting in flattish EBITDA margin YoY.



The company expects gross margins to remain in the 54-55% range through

FY26.



The company maintains its EBITDA margin guidance of 20-24% for FY26.

New launches



Professional Fevikwik Range - To address different professional user

applications.



Nio Pro - Professional Tile Adhesive range with Techno Adapt technology.



Radico Khaitan

Current Price INR 3,290

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Buy

Operating environment



Three years ago, white spirits vodka was less than 2% of IMFL, and now it is ~4%,

backed by increased marketing for the category. Magic Moments has ~85% of

market share.



The overall share of Radico in the Alcobev space has increased by ~200bp,

primarily driven by its premiumization drive and broad-based growth across

geographies.



While the global trade environment presented short-term

challenges, Radico’s

export remained strong, backed by its robust domestic portfolio.

November 2025

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CONSUMER | Voices

In the luxury segment, Rampur Indian Single Malt, Sangam World Malt and

Jaisalmer Indian Craft Gin continue to deliver robust performances.



Regular segment returned to a strong growth path in 3QFY25 and the

momentum has continued in 1HFY26, largely backed by a change in RTM in AP.



The P&A

category is ~44% of Radico’s volume and ~68% of value in the branded

business.



Luxury segment contributes ~10% of company sales. Management is confident

of achieving INR5b sales from the luxury portfolio in FY26 (vs. INR3.4b in FY25).



The company remains confident of delivering strong double-digit growth in the

P&A category.



Over next three years, the company expects Magic Moments to achieve volume

of 10m cases vs. 7m in FY25.



The company has launched small SKUs in the P&A segment, which will lead to

more consumer trails and boost growth.



Radico remains on track to be debt free by FY27.



Sitapur distillery is completely stabilized with capacity utilization at 95%. Being

backward integrated,

the distillery is helping Radico’s branded business grow.

Moreover, Radico is able to save INR6-7 per liter currently.



For FY26, Radico’s overall volume growth will be in the 20%+ range, with P&A

continuing to grow 20%+ in 2HFY26 as well.



Radico will be entering into the tequila segment in a joint venture.



The company now has enough distillation capacity for the next 5-6 years.

State-specific updates



In AP, Radico’s market share improved significantly from 10% in 1HFY25 to 30%

in 2QFY26, the highest in the industry.



Given the policy change in Maharashtra, the spirits industry has been adversely

impacted in the last three-four months as the prices of brands have increased by

INR80-100 per bottle. Management remains watchful of the developments and

expects things to settle down in 2-3 months.



The industry saw a ~25% decline in Maharashtra and Radico declined by ~20%.



A decade ago, Bihar volume was 10-12m cases for IMFL. The opening up of Bihar

market will be a big opportunity for IMFL.

Brand performance



Magic Moments Vodka maintained its strong growth trajectory with nearly 20%

volume growth, achieving sales of around 2m cases during the quarter.



After Dark Whiskey continued to deliver remarkable performance, recording

115% growth YoY in 1HFY26. It posted volume of 1.9m cases in FY25 and over

1.5m cases in 1HFY26 (the market size is 75m cases). The brand has expanded

its footprint to 18 states.



Royal Ranthambore Whisky also delivered an outstanding performance, with

67% growth in 2Q, driven by strong demand across both civil and CSD channels.

The brand achieved a 10% market share in the CSD segment in 2QFY26.



Morpheus Super Premium Whisky is now available in three states, and the initial

response to the brand has been very encouraging. Radico plans to take it to 10

states in FY26.



Spirit of Kashmir, a luxury vodka brand, continues to gain traction.



November 2025

117

CONSUMER | Voices

Cost and margins



Gross margin remained flat YoY, given a benign raw material environment and

cost management initiatives.



EBITDA margin expanded by 130bp, backed by operating leverage.



A&P to remain in the range of 6-8% of sales for FY26.



Net debt reduced by INR1.46b since Mar’25, driven by improved profitability

and tighter working capital management.



Radico has maintained its margin expansion guidance of 125-150bp annually for

the next three years, aiming to reach high-teen margins.

Tata Consumer Products

Current Price INR 1,154

Click below for

Detailed Concall Transcript &

Results Update

Buy

Guidance



Management expects to return to ~15% EBITDA margins by 4Q.



Tea gross margins are expected to operate within the 34-36% range; going

beyond this risks losing market share due to the competitive environment.



The growth portfolio (~30% of the total portfolio) is expanding at a 30% rate,

driven by low penetration, strong category tailwinds, and expanding

distribution. It is expected to maintain the same growth rate in the near

foreseeable future.

India packaged beverages business



India packaged beverages business reported revenue growth of 12% YoY, with

5% volumes growth. This growth was broad-based across brands/segments.



Margins showed a healthy recovery, supported by favorable input costs.



Coffee continued its robust performance; revenue grew 56% in 2QFY26.



Tata Tea Agni launched a category-first Energy Tea (with added caffeine) in

select markets.



Management reiterated its guidance for the tea segment

–

mid-single-digit

volume growth along with a slight improvement in price mix, resulting in overall

mid- to high-single-digit revenue growth.

India foods business



The business posted 19% YoY revenue growth, with volume growth of 11% YoY.



Salt revenue grew 16%, backed by strong 9% volume growth.



In line with the company’s premiumization agenda, value-added

salt products

maintained their strong momentum, up 23% YoY in 2QFY26.



Tata Sampann delivered a notable 40% sales growth in 2QFY26. New launches

and innovations continued to perform well.



During the quarter, the company launched Tata Sampann Gravy Masala Mixes

with four hyper-regional blends for restaurant-style curries at home.



Tata Sampann introduced a range of unpolished millets to champion nutrition

and meet rising consumer demand.



Capital Foods accelerated innovation with multiple new product launches during

the quarter- Chings Chilli Oil, Korean Ramen and Korean Kimchi noodles.

RTD



Revenue rose 25% YoY to INR1.9b, led by strong volume growth of 31% despite

headwinds from unseasonal rains and heightened competitive intensity.



Tata Copper+ maintained its strong performance with 36% growth.

November 2025

118

CONSUMER | Voices

The company has re-entered

the caffeine energy segment with Zip Zap, India’s

first still-based energy drink, backed by a new marketing mix.



Zip Zap, positioned around the value proposition at INR10 price point, is

currently in an advanced pilot phase.



RTD net revenue is expected to pick up in 2HFY26, in line with the anticipated

volume growth.



In RTD beverages, the company faced competition from Campa, which offered

higher retailer margins, forcing them to adjust their own margins.

Capital Foods and Organic India



Capital Foods/Organic India revenue stood at ~INR2.2b/INR1.3b. The two

segments grew 16% on a combined basis (including international operations).



Combined gross margin stood at 48% in 2QFY26 and 49% in 1HFY26.



Capital Foods’ sales, especially in Modern Trade, were adversely impacted in

September following the GST rate change announcement.



Healthy subscriptions on Amazon USA are generating predictable revenue.



Around half of Organic India’s business comes from exports. The supply chain

challenges in the US, which affected the previous quarter, have now been

resolved, leading to a strong rebound in performance.

Tata Starbucks



2Q revenue grew 8% YoY and the division reported same-store sales growth

(SSSG).



The company added seven new stores (net) in 2Q, with footprint growth in

metros and smaller cities, including new store formats, bringing the total store

count to 492 as of Sep’25 in 80

cities.



The company boosted regional relevance with a special Pujo menu, with

targeted marketing across East India, enhancing brand resonance.



The recent innovations and launches continue to support growth.

Non-branded business



Non-branded business revenue in constant currency grew 26% YoY in 2Q.



Soluble business revenue in constant currency rose 34% YoY, while plantations

delivered 17% growth.



Coffee prices began climbing higher during the quarter.



Profitability of the business remained healthy even as margins corrected YoY.

International operations



Revenue from international operations grew 9% (constant currency) in 2QFY26

and 7% (constant currency) in 1HFY26.



US business: The US continued to witness strong growth, up 21%. Eight O-clock

continued to gain market share within bags as well as K-cups with a fourth

consecutive quarter of growth. The market share for coffee bags reached 4.1%.



In the US coffee segment, management implemented a price increase in July,

with another planned for early next year, aligning its pricing strategy with

broader market trends.



UK business: 2Q revenue declined 5% YoY as the business had a high base;

Teapigs penetration expanded 35% YoY, whereas Good Earth sales doubled in

2Q. The company’s value market share in Everyday Black/Fruit

& Herbal is

19.2%/9.9%.



Management aims to maintain its share in the black tea segment in the UK

market while driving growth in the fruit, herbal, and specialty tea categories.



November 2025

119

CONSUMER | Voices

Canada business: It posted revenue growth of 7% YoY in 2Q, primarily driven by

13% YoY growth in specialty tea. Tetley retained its market leadership position.

Meanwhile, ethnic foods portfolio continued to gain momentum.

Other highlights



Momentum on innovation continued across categories, with focus on Heath &

Wellness, Convenience, and Premiumization with 25 new launches in 2Q.



Most of the growth-oriented businesses, including RTD, fall under the 12-18%

GST bracket. While the company saw a temporary disruption toward the end of

2Q, this was largely offset by the RTD segment, which is driven by impulse

consumption, where consumers tend to make immediate purchase decisions for

products such as bottled water or glucose drinks.



While tea prices are expected to normalize, coffee remains the key segment to

watch in the coming quarters.



E-commerce, quick commerce, and modern trade channels together contributed

37% to total sales during the quarter.



Coffee prices had started to ease from around USD4 to nearly USD3 before the

imposition of a 50% tariff in Brazil, which supplies ~30% of the US coffee

demand, causing the prices to spike again. However, the prices have started to

soften.



The company cut prices of its INR10 and INR20 water bottles to INR9 and INR18,

respectively.



International margins faced pressure from coffee prices and tariffs, with

normalization expected to take at least 1-2 quarters.



For the non-branded business, margins normalized compared to last year, when

they had benefited from low-cost inventory and higher price.



The company prioritizes maintaining market share over margins when facing

competitive pressure.



United Breweries

Current Price INR 1,768

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Demand and environment



In 2QFY26, there was an unusually heavy and prolonged monsoon, which

significantly impacted beer consumption across multiple key markets. Despite

the weather-related challenges, United Breweries outperformed the broader

beer industry, showcasing resilience and effective execution of its commercial

strategy.



Overall volumes declined by around 3% YoY, reflecting a mixed performance

across geographies.



Management highlighted that ~1/3rd of the company’s business witnessed

robust growth, another 1/3rd was impacted by severe weather conditions, and

the remaining 1/3rd faced pressures arising from affordability issues and high

excise duties in certain states.



Within the portfolio, the premium segment remained a standout performer,

with volumes rising 17% YoY, led by the strong momentum in Kingfisher Ultra,

Ultra Max, and Heineken Silver. This demonstrates the success of UBL’s

premiumization strategy and a continued shift in consumer preference toward

higher-quality offerings.

November 2025

120

CONSUMER | Voices

The Heineken Silver brand continued to scale rapidly, posting ~34% YoY volume

growth, reinforcing UBBL’s leadership in the premium category.



The company expects category demand to normalize as consumer sentiment

improves post-monsoon. September witnessed a revival in demand with 4–5%

volume growth after the double-digit decline in July and Aug.. Growth has also

been seen in October.



Management remains confident that the Indian beer category can deliver a 5–

6% annual growth rate in a normalized environment.

State-wise performance



Maharashtra: The state recorded 15–16% volume growth during the quarter,

driven by strategic interventions, distributor redesign, improved in-store

execution, and expansion in cooler infrastructure. The company also upgraded

brewing and canning capacity to support higher output. Management expects

the strong growth trajectory to continue, provided there is no adverse change in

taxation.



Karnataka: The beer category in the state declined by double digits due to a

combination of high taxation, price increases on economy brands, and heavy

rainfall. The company noted that Karnataka, once the beer capital of India, has

seen excise hikes erode category growth from +8% CAGR historically to an

estimated

–14

–15%

decline currently. UBBL is actively engaging with the

state government through the Brewers Association of India to advocate for tax

rationalization, highlighting that the state is losing excise revenue as a result of

the steep tax structure.



Odisha: Category performance was weak due to high taxation and adverse

weather. The company launched its London Pilsner (LP) economy brand in the

state toward the end of the quarter, which has received encouraging initial

offtake and distribution traction. The company expects this launch to help revive

affordability and stimulate category growth.



West Bengal: The beer market continued to decline in double digits. To

rejuvenate demand, UBBL reintroduced Kalyani Black Label, a heritage local

brand that was discontinued during the COVID simplification phase. The brand

has received positive consumer response, although structural challenges due to

taxation persist.



Telangana: The state saw a ~20% category decline in July–September,

aggravated by excessive monsoons and disruption from retail license renewals.

Although the company benefited from a long-awaited price hike (first in nearly

five years), consumer affordability remains a concern as the retail price increase

far exceeded the manufacturer’s realized gain. Despite these headwinds, UBBL

continued to gain share in Telangana due to its strong brand equity and

sustained marketing investments.



Meghalaya: Following a reduction in excise duties, the company passed on the

benefit to consumers through lower prices on Kingfisher, which is expected to

drive demand recovery similar to what was seen in Assam.



Uttar Pradesh: Growth was constrained by can supply shortage during the

quarter, impacting

availability. Nevertheless, the company’s premium brands

continued to gain share, and the state remains a key growth driver with a

Greenfield brewery under construction to support future expansion.



November 2025

121

CONSUMER | Voices

Competitive intensity



Management acknowledged heightened competitive activity during the quarter,

with certain players engaging in unsustainable pricing and promotional practices

in response to the category slowdown. UBBL considers these actions

uneconomic and not aligned with long-term profitability.



Despite these market dynamics, the company reported ~100bp YoY market

share gains nationally, driven by strong sell-out performance across regions.

Sequentially, UBBL also gained share even during the seasonally weak monsoon

Commodity prices



Barley/Malt: Prices are expected to increase in high single digits in FY27,

consistent with government notifications. The rise has been anticipated and

factored into margin planning.



Cans: The company is facing supply shortages and aluminum-linked cost

inflation, posing near-term pressure on gross margins.



Glass: Prices remain largely stable compared to the previous year.



Hops: Witnessing mild inflation but within the expected range.

Costs and Margins



To safeguard profitability, UBL has accelerated its productivity and cost

optimization programs, including:



Network optimization, with the closure of the Mangalore brewery to improve

utilization levels.



Enhanced bottle return efficiency, a key margin lever given the growing share of

premium returnable SKUs.



Variable cost restructuring, to improve flexibility during demand volatility.



Gross margins were further impacted by cost inflation in key inputs, including

higher aluminum-linked can prices and an anticipated rise in barley costs.



EBITDA pressure during the quarter was mainly driven by a combination of

temporary and structural factors. The company reported a 3 percent decline in

volumes due to an unusually heavy monsoon, affordability pressures in key

states, and disruptions caused by floods at three breweries, which reduced fixed

cost absorption and led to temporary deleverage. In addition, the adverse state

and product mix, with stronger growth in lower-margin regions and slower

growth in high-margin markets such as Karnataka and Telangana, weighed on

profitability.



The higher marketing and capability spends, coupled with limited ability to take

price hikes in regulated markets, added to the near-term margin pressure.

Network optimization initiatives, including the closure of the Mangalore

brewery and related restructuring expenses, also contributed to the decline.



Management reiterated its goal of returning to double-digit EBITDA margins

through a combination of improved scale, localized premium production, better

returnable bottle mix, and tighter cost control.

Capex



The company plans to step up capital expenditure to high single digits as a

percentage of sales (vs mid-single digits historically). Key areas of investment

include:



Construction of a Greenfield brewery in Uttar Pradesh, expected to strengthen

supply-chain flexibility in North India.

November 2025

122

CONSUMER | Voices

Expansion of commercial infrastructure, notably the deployment of coolers,

which have increased to 37,000 outlets from 15,000 previously.



Upgrade of brewing and canning lines in Maharashtra to enhance output and

support higher demand.

New Launches and Portfolio Initiatives



London Pilsner (LP) was launched in Odisha to strengthen the company’s

presence in the value segment and address affordability challenges.



Kalyani Black Label was reintroduced in West Bengal, tapping into local nostalgia

and consumer loyalty for the heritage brand.



The company continues to expand its economy offerings such as UB Export,

Bullet, and London Pilsner across Karnataka, Maharashtra, and other relevant

states to capture value-conscious consumers.



On the premium side, Heineken Silver and Kingfisher Ultra remain key focus

brands, supported by increased marketing investments and enhanced

availability through localized production. Management reiterated that

innovation and affordability balancing will remain a central part of its strategy to

drive category expansion across price tiers.



United Spirits

Current Price INR 1,432

Neutral

Click below for

Detailed Concall Transcript &

Results Update

Demand environment



The quarter saw a strong revenue and profitability performance, returning to

double-digit growth for the quarter and 1HFY26, despite facing challenges in

Maharashtra and AP.



Management noted green shoots of recovery, with normal monsoons and

improving rural consumption.



Urban consumer sentiment improved due to progressive GST reforms and

higher disposable income, which should aid consumption.



The festive season (Oct-Dec) is expected to sustain healthy category growth and

drive premiumization.



Pocket pack (180ml) format continues to drive penetration and recruit new

consumers.



Distribution expansion is ongoing in emerging geographies like Jharkhand,

Rajasthan, and AP.



Off-trade performing well; management plans to ramp up on-trade visibility and

activations over the next few quarters.



UNSP expects that 2HFY26 is expected to be more challenging than 1HFY26.



The company continues to target double-digit growth; however, it remains

cautious given the high base in AP and ongoing challenges in Maharashtra.

Growth ex-AP



Revenue growth, excluding AP, stood at ~5% YoY for 1HFY26.



The P&A portfolio, excluding AP, grew by ~4.9%, supported by a better mix and

price realization.



Excluding Maharashtra and AP, the company delivered double-digit growth

during 1HFY26, showcasing robust performance across other key markets.

Cost and margins



Gross margin expanded by 190bp YoY to 47.1% in 2QFY26, driven by

productivity gains, benign input inflation, and mix improvement.

November 2025

123

CONSUMER | Voices

Key input costs like glass and packaging remained stable, while ENA and Scotch

remained structurally inflationary.



Marketing reinvestment was 7.6% of sales in 2Q and 8.4% in 1HFY26, in line with

prior levels. Maintain guidance of 9.5-10% of net sales for FY26.



Full-year EBITDA margin guidance remains at mid-to-high teens.

Brand performance



Signature continues to lead growth in the Prestige segment, supported by

purpose-driven storytelling and youth-focused campaigns.



Royal Challenge outperformed category growth; the 180ml pocket pack

continues to drive sampling and share gains.



McDowell’s No.1 reinforced leadership

in the lower prestige segment through

regional campaigns and new ambassador Vijay Deverakonda.



Godawan (Indian single malt) reported strong double-digit growth, repeat

orders, and won 100+ global awards; its collector’s edition “Godawan 173”

launched successfully.

State-wise performance

Maharashtra:



Saw policy-induced headwinds due to a ~35% price increase post-tax change.



Consumer spending grew ~20-25%, implying ~10-15% volume decline for the

industry.



UNSP declined less than the industry, aided by agile restructuring of the value

chain and pricing strategy.



MML launched recently at INR 160 for 180ml; too early to gauge, but

management expects stable outcomes over coming quarters.

Andhra Pradesh:



Completed four-quarter normalization post policy reset.



Strong growth momentum continued, driven by Prestige and Premium

segments.



Management confident of sustaining India-like or better growth in FY26.



Policy reforms in UP, Jharkhand, Karnataka, Rajasthan, and MP driving structural

growth.



Possible opportunity in Bihar if prohibition is lifted

–

management ready to

respond swiftly.

MML



Recently introduced at INR160 (180ml).



Still in early stages; expected to source volumes either from country liquor or

prestige IMFL segment.



MML’s consumer acceptance uncertain; may take a few quarters to assess

impact.



Distribution ramping up quickly, though trade feedback will determine

sustainability.



UNSP to rely on brand strength and quality execution to remain competitive.

New Launches



Godawan 173 limited edition single malt (collector’s edition).



Smirnoff flavored variants

–

Minty Jamun, Mango Mirchi, and Citron.



Don Julio Paloma Time festive on-trade campaign across 170 key accounts.



MML new offering to tap into entry-level consumers.



November 2025

124

CONSUMER | Voices

Varun Beverages

Current Price INR 457

Buy

Click below for

Detailed Concall Transcript &

Results Update

Operating performance



VBL delivered a steady performance during the quarter, with consolidated sales

volumes rising by 2.4%, supported by healthy traction in international markets.



While domestic volumes remained subdued due to prolonged rainfall across

India, international operations grew by 9%.



The ongoing backward integration initiatives across key locations are driving

higher efficiency and operational resilience.



In 9MCY25, the mix of low sugar/no added sugar product was ~56% of the

consolidated sales volume and ~45% in India.



The company remains debt-free on a consolidated basis.



The GST rate cutes benefited 1/4th of the portfolio in India.



The GST rate reduction had a minor impact, as some customers initially

misunderstood the change and reduced their inventory levels; however, the

overall effect on business was limited.

Guidance and outlook



While the extended monsoon season impacted consumption trends in India,

management remains confident in the significant long-term potential of the

domestic beverage industry, with the low per capita consumption and rising

penetration in semi-urban and rural markets the growth opportunities continue

to be immense

India business



India remains a long-term growth driver with low capita consumption and rising

penetration in the semi-urban and rural market.



The Hydration category witnessed significant growth of ~50% in Nimbooz and

strong growth in value-added Dairy (over 100%).



VBL has launched a new energy drink, ‘Adrenaline Rush’, positioned in the mid-

premium segment at INR60, significantly below Red Bull but above Sting. The

product has been introduced across four cities, with plans for gradual

expansion.



All CSD brands, including Sting, had experienced muted performance due to

unfavorable weather conditions; however, they are now showing signs of

recovery.

Strategic developments



In line with the growth strategy, VBL is incorporating a wholly-owned subsidiary

in Kenya under Varun Beverages Limited to carry on the businesses of

manufacturing, distribution, and sale of beverages.



VBL is also diversifying its product offerings with certain African subsidiaries to

test market beer in their territories through an exclusive distribution agreement

with Carlsberg Breweries A/S for its Carlsberg brand. The company is planning to

expand its presence by launching operations in the southern regions of Africa.



In Africa, the company can distribute alcoholic and non-alcoholic beverages

through the same vehicles and channel partners, unlike in India.



At the consumer’s end, a large number of retail outlets are licensed to sell

beers, with many serving as common points of sale for both alcoholic and non-

alcoholic beverages.



In several African regions, the beer market is comparable to or even larger than

the soft drinks market, given the high consumption levels.

November 2025

125

CONSUMER | Voices

VBL plans to begin operations in select regions by importing and distributing the

product initially, with the possibility of setting up local bottling operations at a

later stage based on performance.



VBL has formed a joint venture, White Peak Refrigeration Private Limited, in

partnership with Everest International Holdings Limited, to carry on the business

of manufacturing visi-coolers and other refrigeration equipment in India.



Addition of the alcoholic beverages business to the main objects clause of the

MOA



In response to the growing popularity of RTD and a variety of alcoholic

beverages, VBL sees an opportunity for expansion into the business of RTD and

Alcoholic Beverages of any type or description, including beer, wine, liquor,

brandy, whisky, gin, rum, and vodka, in India and abroad.



The company is strategically positioning its portfolio to be market-ready and

plans to expand it further once the business environment becomes conducive.



The global market for RTD and low-alcohol beverages is expanding rapidly.

PepsiCo, the parent company, is also entering this segment, and VBL is in

discussions with it to explore opportunities for launching select RTD products.

International business



Performance in International territories continued to be healthy, with South

Africa delivering another quarter of strong growth.



VBL continues to see significant potential to further strengthen its market

position in South Africa and continues to put in place the building blocks to

support sustained growth in the region.



The snack facility in Morocco has ramped up to full-scale operations, while the

upcoming Zimbabwe plant is progressing towards commissioning, marking

continued progress in diversifying VBL’s portfolio beyond beverages.



Africa initially faced challenges in growth, particularly in Zimbabwe, due to the

sugar tax; however, conditions are improving, with the region recording

approximately 10% growth in September.



South Africa continues to register strong double-digit growth, with VBL currently

holding an estimated market share of around 17% in the region.



In the DRC, the company is recovering from past operational challenges and

expects significant growth in the coming year, while performance for the

current year is likely to remain subdued.



In Nepal and Sri Lanka, the company is performing well and is expected to

maintain its growth momentum in line with its Indian business.

Others



Competition remains healthy and supportive, driving overall market expansion

for all players. Although it has caused a minor short-term impact, it is expected

to be favorable in the long term, promoting industry growth and allowing the

company to respond with well-calibrated strategic actions.



INR10 price point introduced by competitors represents a highly competitive

and aggressive segment; however, the company is well-positioned to compete

effectively and remains prepared to respond strategically to evolving market

dynamics.



The company plans to continue launching new products in the coming year and

is currently focusing on expanding its hydration portfolio, with plans to

introduce 1-2 new products next year.



Food segment’s revenue will be ~INR3b in CY25, driven

primarily by Morocco,

which began operations four quarters ago, along with Zimbabwe, which has only

recently commenced operations.



November 2025

126