Welcome to the 21st edition of The Chatter — a weekly newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.
We're always eager to improve—please share your ideas on how else we can innovate "The Chatter" format to better serve your needs.
In this edition, we have covered the 20 commentaries across 10 industries, and also from international companies.
Engineering & Capital Goods
Kaynes Technologies
Centum Electronics
PG Electroplast
Auto Ancillary
UNO Minda
Eicher Motors
Maruti Suzuki
TVS Motor Company
Diversified
Grasim Industries
Software Services
InfoEdge (Naukri)
Healthcare
OneSource Specialty Pharmaceuticals
Financial Services
Manapurram Finance
Retail
V2 Retail
Alcohol & Beverages
Radio Khaitan
Tourism & Hospitality
Chalet Hotels
Lemon Tree
Building Materials
Ambuja Cement
International
JP Morgan
Uber Technologies
Cisco
Mariott International
Engineering & Capital Goods
Kaynes Technologies | Mid Cap | Engineering & Capital Goods
Kaynes Technology India Limited is a leading end-to-end electronics manufacturing company specializing in IoT solutions.
Kaynes is transforming from a pure EMS provider to an integrated ESDM player, focusing on deeper product lifecycle ownership and strategic client relationships, with international expansion via US/Canada acquisition strengthening its global positioning versus China sourcing.
"Our growth momentum spans across all business verticals with particularly strong traction from new clients in the electric vehicle industries and aerospace sector, industrial sector and rail sector. This underscores our vision to build a future-ready, robust and profitable business portfolio. We are also witnessing a strategic shift from being a pure EMS (Electronics Manufacturing Services) company to becoming an integrated ESDM (Electronic System Design and Manufacturing).
“With the acquisition of August Electronics in Canada, we have scaled our EMS capabilities in North America, gaining a manufacturing footprint and access to large high-margin customers. This strengthens the Canada India value proposition, as a reliable and strategic alternative to China-based sourcing, offering global clients both proximity and flexibility."
— Ramesh Kannan, Managing Director
Temporary working capital pressure from acquisition receivables and quarter seasonality is acknowledged, with clear plans to resolve these by mid-year, targeting normalized net working capital around 70 days.
"A spike in working capital days to about 132 was driven by acquisition-related receivables of about INR350 crores and the seasonality of billing in Q1. Once financing solutions for these receivables are implemented, net working capital days are expected to come down to approximately 70 days, helping to improve asset utilization and reduce funding needs. There are ongoing operational initiatives such as supplier managed inventory, collaborative forecasting, demand planning, and improved production scheduling to enhance capital efficiency."
— Jairam Sampath, CFO
This highlights resilience against volatility in the automotive industry, important for revenue stability, and indicates the company is successfully penetrating higher-margin sectors to boost profitability.
"Automotive segment growth was softer in Q1 (~24-25%) due to possible destocking, but the company's diversified portfolio cushions impact, and traction is improving. Margin expansion has been broad-based across sectors with gross margin improvements of 50-200 basis points in all six verticals. Aerospace and railways are expected to contribute more significantly by Q2-Q4, bolstering profitability."
— Jairam Sampath, CFO
OSAT (Outsourced Semiconductor Assembly and Test) is a critical new growth engine, with strong client validation, global technology partnerships, and a strategic role in import substitution, aiming to integrate semiconductor supply within India’s industrial ecosystem.
"OSAT facility in Sanand is on track for commercial production by December 2025, with three major global clients (American, Indian, German) already lined up and MOUs with four others. Half of the INR3,400 crore capex is expected to be spent by FY '27, targeting excellent capacity utilization. The technology transfer nature of the business is emphasized, along with high expected yields from collaboration with top clients. OSAT output is expected to serve primarily import substitution for India, feeding into domestic manufacturing with some exports, and semiconductor tariffs are minimal due to the global, interdependent nature of the semiconductor supply chain involving 72 countries."
Centum Electronics | Small Cap | Engineering & Capital Goods
Centum Electronics Limited is a prominent company specializing in Electronics System Design & Manufacturing. They offer vital services to customers in Defense, Aerospace, Space, Medical, Transportation, and Industrial sectors requiring highly reliable solutions.
Canadian Subsidiary Decision Expected This Quarter. A resolution would remove a major drag (currently 50% of subsidiary losses) on consolidated profitability and management bandwidth
“This, of course, is a key priority, as we've been mentioning. We've made some good progress on that. We believe we should have a decision for this in the coming months, and we hope to, yeah, to basically have a decision for that by the end of the current quarter. And then, you know, there will be some time associated with, you know, a short period following that to close and and and, you know, basically complete the transaction that we intend to do. So, yeah, that's so we are we are still working towards that that timeline..”
— Nikhil, Joint Managing Director
Provides a clear, quantifiable medium-term margin target and highlights that the entire upside must come from the international subsidiary turnaround.
“The target that we've set for ourselves, and I think we mentioned this in the last earnings call and even in the AGM yesterday, is for a three-year time period for us to be able to reach a 13% to 15% kind of EBITDA margin level. So, the roadmap that we see there, first of all, as you see, the standalone part of the business is already at a roughly 14% level. So we expect and are working to maintain and maybe slightly, slightly improve that, but given the growth rate that we will experience in both the EMS and the Build-to-Spec business, the standalone EBITDA levels will be more or less in a similar sort of range.] The opportunity for improvement will come largely from the subsidiary, which today is at almost, if you look at the last year, is at roughly a 1.5% kind of EBITDA level.”
— Nikhil, Joint Managing Director
Highlights a new, long-duration defence program win that provides significant future revenue visibility in the high-margin Build-to-Specification (BTS) segment.
"The size of the development order itself is relatively small. I mean this is in the range of maybe around Rs.10 crores or so. But these are major platforms that will come subsequently. Obviously, as I mentioned, just the time to design and qualify this at the platform level...This is one, this is for a major platform which is the Sukhoi-30, and the size of opportunity there can be to the tune of maybe Rs.1,000 crores or so.] And the other important thing is also while we are developing this for this specific program, the technology are sort of like building blocks. So you can use these technologies to also try to open up and create opportunities in other programs.”
— Nikhil, Joint Managing Director
Clarifies capital allocation priorities are firmly directed towards the high-growth, high-margin domestic business, not the struggling international operations.
“The Rs.40 crores capex that you had announced in the last call, will be done purely for the Indian business? Yes. Okay, and we are not pumping in any money for our subsidiaries, right? No.] Okay. And sir, in this gross block of around Rs.380-390 crores, which will happen by the end of year, how much would be from the Indian business and how much would be from overseas subsidiaries? Gross block is mostly Indian only because there's no fixed assets there in the subsidiary, it's all people... It's the people's business.”
— Nikhil, Joint Managing Director
Outlines a multi-pronged, risk-managed strategy for capitalizing on the burgeoning private space-tech ecosystem without taking on excessive balance sheet risk.
“So, in a nutshell, we're doing all three. So, we're already working on partnering and working with some of these startups in different ways—either by doing some of the core parts of their satellites or or or in certain cases, we are also with the end users, working on some sort of a partnership type of agreement where we will be the prime contractor. And there will be certain work share that is divided between what we do and and the core IP or technology that the startup brings.] The challenges, you know, for every 10 startups maybe two startups are succeeding exceedingly well. So, what we ensure is when we work with startups, we ensure that we don't lose money with them.”
— Nikhil, Joint Managing Director
PG Electroplast | Small Cap | Consumer Durables
PGEL is a diversified Electronic Manufacturing Services and Plastic Injection Molding company catering to leading OEMs in the Consumer Electronics and Automotive Industry.
Margin pressure is partially attributed to inventory and working capital strain from abrupt demand changes, highlighting a material risk to near-term profitability. The company’s cash flow management and overhead optimization efforts will be critical for navigating this environment.
“Consolidated revenue rose 14% to INR 1540 crore, with product business contributing 77%. The Room AC business grew 15%, washing machines 36%, while cooler sales were down due to the shortened season. EBITDA rose slightly but net profit declined 21% year-on-year due to negative operating leverage from subdued volumes and rising input costs. A sharp rise in inventory—close to INR 1200 crore in the AC business—resulted in increased financing costs (nearly INR 20 crore) as the company discounted receivables to manage cash flow. Overhead expenses remained elevated. Capital expenditure guidance was cut from INR 800–900 crore to 700–750 crore with a focus on essential growth areas like AC, washing machines, and coolers.”
— Vishal Gupta, Managing Director
The management reveals a pronounced demand shock and channel stuffing issue across the industry, which will temper production and sales for the coming months.
"There has been a lot of cancellations... 50 to 70% across most clients... Inventory with the brands is about 2 million units, similar to the channel... Contract manufacturers slowing down production to get rid of inventory."
— Vishal Gupta, Managing Director
Despite short-term softness, PG Electroplast remains committed to strategic capacity buildouts especially in growth segments like washing machines and refrigerators. The delay in the compressor project is a contingent risk but currently manageable.
"Some plant and machinery orders have been held back... Land and buildings are not being held back... Washing machine capacity will be expanded to over 2 million units... Compressor plant delayed awaiting government clearance, no change in economics."
— Vishal Gupta, Managing Director
The management presents a cautiously optimistic tone, acknowledging market volatility and financial pressures while signaling readiness to capitalize on recovery once inventory clears.
"We are very confident about the long-term potential... Next 2-3 quarters will be a little soft but very strong pickup afterwards... Pricing is likely to be under pressure, but we don't know how exactly it will pan out."
— Vishal Gupta, Managing Director
The management discussion reveals significant working capital stresses and margin headwinds stemming from supply chain and demand disruptions, a subtle but critical financial risk.
"We are carrying close to 1,000 crore of additional inventory... cost of carrying that inventory is substantial... Extended loss months due to seasonal softness... Revising profit guidance accordingly."
— Vishal Gupta, Managing Director
Auto Ancillary
UNO Minda | Mid Cap | Auto Ancillary
Uno Minda Limited (formerly Minda Industries Limited) is a leading global manufacturer of proprietary automotive solutions and systems supplying to OEMs as Tier-1. The company has made important contribution to the automotive industry supply chain for more than six decades with its innovative products.
The sustained high level of growth capex signals management's confidence in securing new business and capitalizing on electrification and premiumization trends.
“..our capex guidance, as we said in the last call, is roughly around Rs.350 crores to Rs.400 crores of sustaining capex and around Rs.1,300 crore of growth capex.”
— Sunil Bohra, Group Chief Financial Officer
Reveals the strategic rationale for acquiring JV stakes: partners' capital constraints. This shift to full ownership (while retaining a tech license) gives UNO Minda greater control over critical EV components.
“[In response to a question about acquiring the stake in the Buehler motor JV] Our JV partner here was obviously… this business was not something which was taking some capital, and the JV partner was having a cash crunch even in Germany. They were very keen to run the partnership, but because of a lack of capital, it was felt by the board, why not we sort of take over the company and then convert the JV into a TLA [Technology License Agreement]. So unlike Frevo where there is no TLA and the technology will be fully ours, here we will continue to have a TLA with Buehler. So otherwise, there is no change in approach.”
— Sunil Bohra, Group Chief Financial Officer
Details a Rs 210 crore capex into a specialized, low-asset-turn (<1x) business for complex EV castings, signaling a strategic move up the value chain with different capital intensity.
“ [In response to a question about the new EV casting plant] This plant is primarily a backward integration for our upcoming EV plants in Sambhajinagar, as I said, for EV four-wheelers. And these castings, as you would have seen, they are very different castings than the normal castings which we do for, like, engine cover or a crankcase... These are very complex, 2,500-ton castings... Since it's a high capex business, the asset turn definitely is going to be lower. It's actually less than one in terms of the expected asset turns.”
— Sunil Bohra, Group Chief Financial Officer
Marks a significant technology and manufacturing milestone. Localizing high-tech ADAS (Advanced Driver Assistance Systems) components enhances margins, reduces supply risk, and builds a competitive moat in a high-growth area.
“A key highlight during this quarter was the commissioning of our new camera module production line. We are proud to share that UNO Minda has become the first company in India to localize camera module production for our ADAS systems—components that were previously fully imported. Commercial supplies have begun, and we anticipate a ramp-up in volumes in the coming quarters”
— Sunil Bohra, Group Chief Financial Officer
Acknowledges indirect vulnerability to the rare-earth supply chain (dominated by China), particularly in the EV two-wheeler segment, highlighting a specific and topical geopolitical risk for investors.
“While our direct dependence on rare-earth magnets is limited, we have witnessed some indirect impact due to reduced volumes from OEMs, specifically in the EV two-wheeler segment. Nevertheless, we are mitigating this through alternate sourcing and close collaboration with our OEM partners.”
— Sunil Bohra, Group Chief Financial Officer
Directly addresses and quantifies a major geopolitical concern for investors, effectively de-risking the company from the US-China trade war narrative and even suggesting a potential upside.
“I would like to clarify that the ongoing US tariff situation has no material impact on our operations, as exports to the US constitute less than 2% of our total revenues. In fact, we have witnessed growing demand from the US for our two-wheeler products, reinforcing our competitiveness and growth in the global market.”
— Sunil Bohra, Group Chief Financial Officer
An update on a key EV joint venture, confirming that regulatory approvals are still a gating factor for the project, which is a potential risk to the timeline.
“As previously communicated, the JV with Innoviz requires regulatory clearances. We have now formally applied for various approvals and are actively engaging with the regulatory authorities to address any queries and expedite the approval process... The construction work has commenced at our new greenfield facility for high-voltage EV powertrain components under our JV with Innoviz Automotive. Phase one is expected to be commissioned by Q2 FY27.”
— Sunil Bohra, Group Chief Financial Officer
Eicher Motors | Large Cap | Auto Ancillary
Eicher Motors Limited (EML) is a leading player in the Indian automobile industry, known for revolutionizing the mid-size motorcycle segment and commercial vehicles with world-class engineering and innovation. As the parent company of Royal Enfield, EML has established a unique brand proposition and global presence.
The shift to a modular capex approach suggests a more flexible and less capital-intensive path to growth, avoiding large, lumpy investments and better matching supply with demand.
“Our capacity stated is with both the plants, which is Oragadam and Vallam, where we are manufacturing all our motorcycles for across the globe. We have stated a capacity of almost about 1.2 million. Currently, you are right, we are operating at almost about 90% of that. [We also mentioned during the last quarter call about our capex, which is actually going in terms of fulfilling some of the gap in taking the capacity further up which is required. As we mentioned, our capacity buildup will take place in modules. We don't need to actually go in for a heavy capacity enhancement.] Focus and the capex is more on the new products. We have cracked the code of the modular capacity enhancements and we will go in that way for any capacity enhancement in future.”
— B Govindarajan, CEO
Management expresses strong optimism for the key festive season, and importantly, signals a potential new launch or significant refresh for the Meteor platform, a key volume driver.
“Festive, all of us are very bullish about festive. We are also building and preparing ourselves for the festive period. And honestly, a few things are going to work in favour, I'm expecting and I'm very positive about it. [Hunter is new, it has just come in. We are also going to have something around the Meteor, so that is coming in. And we have some colours which are also going to come in around that time. So, some of the launches, some of the CTGs, we are trying to actually align it to the auspicious times and the festivities which really helps to bring a momentum into this.] That is also being planned, Gunjan, in this. That's why I'm saying I'm positive about the festival outlook.”
— B Govindarajan, CEO
This is a firm and direct clarification that puts to rest market speculation about Eicher moving down into the highly competitive sub-250cc commuter segment, reaffirming its premium, middleweight strategy.
“[In response to a question about a potential foray into the 250cc segment] We have been maintaining the middleweight is 250cc to 750cc. That's where our focus is going to be there, Pramod.”
— B Govindarajan, CEO
Provides precise, quantifiable data on margin pressures. A 50 bps gross hit from commodities, partially offset by a 20 bps gain from value engineering, gives analysts a clear baseline for modeling.
“I think for us, I think steel has kind of hit us a little earlier, you know, and therefore we've started getting impacted by steel as well as aluminum. I think the way I'd like to say is that this quarter we've had an impact of about 50 bps. [Out of that, we've got an offset because of VAVE which was mentioned earlier of about 20 bps, so the net impact is about 30 bps. And to some extent, the price increase obviously, you know, helped offset that impact overall.”
— B Govindarajan, CEO
Signals a potential recovery in urban demand, a segment that has been weak for the two-wheeler industry. If this trend sustains, it could provide an additional growth lever beyond the rural story.
“[In response to a question about the change in rural salience] The rural market in India has been growing and urban has been slightly tepid. In the first quarter at least, I am seeing, for us, and I have to put that with a rider, [for us the urban markets are also growing. There is a green shoot. First time, I'm seeing after a long time that the urban markets are also growing for us.]
— B Govindarajan, CEO
Provides a detailed, region-specific overview of the international strategy, highlighting tailored approaches for Brazil (financing, CKD), Europe (distribution takeover), and SAARC (local production)
“In the Brazil market, we wanted to have a product which is at a very accessible price point. The team are actually working on the finance scheme in those markets, what do we have to do tying up with the bank so that the customer experience is seamlessly given to them to acquire Royal Enfield motorcycles. That's in Brazil. As far as the UK is concerned, there will be pre-registered motorcycles. It is still there. So there the growth is slightly muted. Europe is doing well. We have taken our distribution of our own. In SAARC, both in Bangladesh and in Nepal, we have been doing very well.”
— B Govindarajan, CEO
The commercial vehicle joint venture posted record sales, indicating strong underlying demand in the CV cycle and providing a significant boost to Eicher's consolidated performance.
“I am happy to share that the VECV, we recorded our quarter sales of 21,610 units, exceeding our previous record of 19,702 units in Q1 of FY25. [VECV continues to maintain its growth momentum in the CV industry, with its first-quarter milestone across all segments.] I share HD trucks, the first-quarter sales of 4,580 units. LMD trucks, first-quarter sale of 8,610 units against 7,842 units of Q1, with a leading market share of about 34.5%.”
— B Govindarajan, CEO
Maruti Suzuki | Large Cap | Auto Ancillary
Maruti Suzuki India Limited is the largest passenger vehicle manufacturer in India, a subsidiary of Suzuki Motor Corporation. Market leader in passenger vehicles and the largest exporter of such vehicles in India. Engaged in manufacturing and selling passenger and commercial vehicles through various channels.
Quantifies the dramatic and structural collapse of the hatchback segment, historically Maruti's stronghold, and the corresponding rise of SUVs, which now constitute over half the market.
“In quarter one of this financial year, the domestic passenger vehicle industry continued to witness a sluggish demand environment. The wholesales in the passenger vehicle industry declined by about 1.4% in the quarter one, compared to the same period previous year. The affordability issues in the entry segment cars continue to affect the growth of the industry. In terms of form factor, the industry saw an increase in consumer preference to SUVs and MPVs. In quarter one, the SUV share increased to over 55% of total sales, while MPVs contribution increased to about 11%.However, the share of the hatchback segment continued to shrink. In quarter one of this financial year, the share has reduced to 21% from a high of 46% in the financial year 2019. In terms of powertrain mix, the share of CNG and diesel powertrains was about at 19% each. The share of hybrid vehicles and EVs were about at 3% and 4% respectively.”
— Rahul Bharti, Chief Investor Relations Officer
Clarifies that the rare earth magnet supply chain issue, often seen as an EV-specific problem, also impacts internal combustion engine (ICE) vehicles, broadening the potential risk profile.
“So it is a challenge, and of course, our people, our engineers are working to mitigate it and ensure that we do not have an impact of this. So it's work in progress, but as of now, we are managing the situation. If and when there is an impact, we'll come back to you. To answer your question, rare earth magnets are used across. The usage changes. The consumption in EVs is much higher, in ICE engines it is much lower, but it does exist. Mostly it is in the motor or in sensors or in some electrical part.”
— Rahul Bharti, Chief Investor Relations Officer
Provides a clear, quantified bridge for the sequential margin contraction, attributing it to operating leverage, steel costs, and FX, which helps refine forward margin models.
“On a sequential basis, while the overall sales volume declined by 12.7%, the net sales declined at a slower pace by 5.7% owing to a favorable mix. Sequentially, the operating profit margin, EBIT, has come down to 8.3% of net sales compared to 8.7% in Q4 of financial year '25. And it's a result of some adverse factors, some positive factors. I'll list them both. The adverse factors were: the operating leverage was unfavorable by about 60 basis points. Commodities, largely on account of steel, was adverse by 40 basis points. Forex, adverse by 40 basis points. Employee cost, higher by 50 basis points, largely on account of seasonality.”
— Rahul Bharti, Chief Investor Relations Officer
Confirms the ambitious global scale of their upcoming EV launch, targeting 100 countries, including the highly competitive European and Japanese market,s within the current fiscal year.
“A lot of efforts have gone in the full past decade at a very deep structural level for building exports. The biggest thing is the network. So we have improvised the network both in quantity and in quality, in depth of penetration across markets. We've launched more products in more markets. A big increase will be when we'll launch our EV in about 100 countries of the world, including Europe and Japan. One big factor has been Japan. You may be interested to know that Japan is now, in Q1, the second largest export destination in all our portfolio.”
— Rahul Bharti, Chief Investor Relations Officer
Provides a clear, positive signal on the health of the rural economy, a key demand driver for Maruti, contrasting with the overall sluggishness in the urban market.
“Analyst: Is there any, you know, any difference that you're seeing between rural and urban, that, you know, rural is doing well or is positive? “
“Speaker: Yeah, so rural is doing better than urban. “
Analyst: Would rural areas be positive?
“Speaker: Yes, rural is positive.”
— Rahul Bharti, Chief Investor Relations Officer
Highlights the continued pressure on a key customer segment and provides a crucial clarification that "first-time buyer" means first car in the *family*, a stricter and more meaningful metric than an individual's first purchase.
“In the domestic market, the participation of first-time buyers in car buying continued to remain subdued, largely due to affordability issues. For the sake of clarity, since this definition has come up, first-time buyers refers to the first-ever car purchase in the family, not the first-ever purchase by an individual. Given the demand situation, the company calibrated its wholesales while maximizing retail sales. In the quarter, the demand environment in the rural market was quite better as compared to urban markets. And the early onset of monsoon has helped improve consumer sentiment in rural markets.”
— Rahul Bharti, Chief Investor Relations Officer
Japan is Now Maruti's Second-Largest Export Market
“One big factor has been Japan. You may be interested to know that Japan is now in Q1 the second largest export destination in all our portfolio. In all our global markets. And Jimny and Fronx are doing exceedingly well there.”
— Rahul Bharti, Chief Investor Relations Officer
Shows prudent inventory management amid soft demand, reducing the risk of future fire sales or production cuts and indicating a healthy channel.
“The retail was about 380,000 units. And the D-growth was lesser in retail than in wholesale. At the retail level, our D-growth was about 3.7% year-on-year, while industry D-growth was about 1.5% year-on-year. The dealer inventory is fairly in control. In fact, we have been the most conservative probably in the industry to manage it well, and we've been calibrating our wholesales to bring it into account. So, it's just about 33 days.”
— Rahul Bharti, Chief Investor Relations Officer
Clarifies that the guided capex figure is for the standalone Maruti Suzuki entity only, meaning the consolidated group capex is higher. This is a common point of confusion for investors.
“Analyst: The capex of 10,000 crores, does it include SMG? If not, what is SMG capex?
Speaker: Okay, first on the last one. I think the capex is MSIL. SMG is over and above it. So, that's the first part. MTM, there is about, as I said, that the index yield has gone by about 35 bps, so there is a corresponding gain for that.”
— Arnab Roy, CFO
TVS Motor Company | Large Cap | Auto Ancillary
TVS Motor Company Limited is the leading 2-wheeler company in India, renowned for its innovation and extensive R&D. With a strong focus on customer service, it is also the largest exporter in India, with a global presence across different continents.
Flags a new and specific supply-chain constraint (magnets) that could cap near-term EV sales growth despite strong underlying demand.
“All of us know that there are certain challenges in the availability of magnets. We are trying to mitigate it. [There are challenges in the short term, but we are also working along with certain long-term actions. We are also coming up, building our retail strategy. We are also planning to launch these products in India.] So more details we will present closer to the launch time. Coming to the domestic ICE business outlook, first quarter we saw a moderate growth of 4% over the first quarter of last year. Rural growth was slightly lower than the urban growth this quarter. We feel that this year, the positive thing is the monsoon arrival was a little early and the sowing has started. We are confident that Q2 you will see, while there are some challenges in the month of July, we should all remember that this year's season is going to be middle of September and all of October.”
— K.N. Radhakrishnan, Director & CEO
Establishes a new record for quarterly performance, indicating strong operational leverage and demand momentum across the business.
“TVS Motor Company posted its highest-ever revenue, surpassing the new milestone of Rs 10,000 crores in a quarter. It sustained growth above the industry. During the quarter, company sales volume grew by 17%, revenue grew by 20%, operating EBITDA grew by 32%, and profit grew by 35%. [This was possible through our consistent customer centricity approach, very strong brands across all segments, and sustained cost reduction initiatives taken at the company.] We sincerely thank our customers for this significant milestone. Let me now get into more details about the first quarter of this financial year. On the sales side, during this quarter, the company's operating revenue grew by 20%. It is at Rs 10,081 crores as against last year's Rs 8,376 crores in the first quarter of last year.”
— K.N. Radhakrishnan, Director & CEO
Sets clear expectations for significant capital outlay, driven by new product development (including Norton), EV expansion, and market entry activities.
“Capex will be about Rs 1,600 to Rs 1,700 crores. In that range, Rs 1,600 to Rs 1,700 crores. Because there are many investments behind new products. Analyst: And sir, investment for FY26 will again be in the range of Rs 2,000 crore? Speaker: Similar, almost similar. [Like I explained, you know, Norton, the products are coming now. The investments behind some more products will be there, plus marketing, brand building activities, we are getting into many countries now. All that will continue.”
— K.N. Radhakrishnan, Director & CEO
Pushes back on market speculation about an imminent IPO for the high-growth NBFC arm, delaying a potential value-unlocking event for shareholders.
“Yeah, TVS Credit Services, I think the book size is around Rs 27,000 crores now, 26,898 to be very precise. [And as far as the question is all about IPO, not yet even discussed at the board level. As and when we decide and definitely we will let you know please.] But this is the... an investment which is doing extremely well and it is also well run. So the RoTA is steadily growing. So we are pretty confident about TVS CS shaping up.”
— K.N. Radhakrishnan, Director & CEO
Confirms a key secular trend of scooter adoption in rural India, driven by infrastructure improvement, supporting volume growth and a richer product mix
“Scooterization is progressing pretty well even in the rural areas. The proportion of scooters is also becoming better. See, what is most important is the infrastructure development, the roads, even in the rural areas are becoming better and better. [That is definitely supporting the proportion of scooters increase proportionally in the rural as well.”
— K.N. Radhakrishnan, Director & CEO
Tempers expectations for the European e-bike business, acknowledging that macro headwinds are currently constraining growth in that market.
“See, overall, the e-bike is a bit slow, primarily because of the economy in Europe. And you know, we have very, very clearly looked at the positives of this product. The products are extremely good, but when the economy is going through and the industry is going through some tough times, sometimes you have to be a little bit patient.] That is exactly what we are now doing. But on a medium-term basis, we are very confident that it will start breakeven and start making profit.”
— K.N. Radhakrishnan, Director & CEO
Details the company's long-term strategy to mitigate geopolitical and supply-chain risk in rare-earth magnets, a critical EV component.
“On a medium and a long-term basis, we are working on HRE-free, ferrite-based magnets, magnet-free, and we are also looking at alternate countries and definitely we will, we are also working partnering with some of them in India. [So this is going to be a... you know, we have to, we have to build forward a more resilient, uh, company and a country on magnets.”
— K.N. Radhakrishnan, Director & CEO
Diversified
Grasim Industries | Large Cap | Diversified
Grasim Industries Limited is a prominent company of Aditya Birla Group in India. It started as a textiles manufacturer and has grown into a diversified player excelling in Viscose, Chemicals, Cement, Financial Services, and more. Its subsidiaries include UltraTech Cement and Aditya Birla Capital.
The management reveals a clear strategic growth inflection in Grasim’s paint business, showcasing successful market penetration, capacity ramp-up, and consumer engagement innovations, distinguishing it from competitors
"Birla Opus on its own is India’s #3 decorative brands... combining Birla Opus and Birla White putty businesses, the Aditya Birla Group’s share has crossed 10% market share... The brand has expanded pan-India reach to over 8,000 towns in less than 12 months… the PaintCraft services offer consistent quality and affordable painting services digitally integrated across stakeholders."
— Himanshu Kapania, Managing Director
Management demonstrates disciplined capital allocation and execution capability in two key new growth engines, highlighting the strategic priority and long-term potential of these businesses.
"Total CapEx for Paints business stood at INR 9,555 crore... execution without cost overrun... demonstrates financial discipline and supply chain capabilities... Birla Pivot's CapEx largely invested in the technology platform, with confidence to break even at $1 billion revenue scale by FY27, and remain well within planned budgets."
— Himanshu Kapania, Managing Director
The management reveals margin pressures and competitive intensity risks in key chemical product lines, though partially offset by volume growth and improved realizations in core segments.
"Epoxy industry is in margin compression between rising raw material prices, antidumping duties on one side and duty-free imports on the other. Our approach is a balance between market share and margin preservation... Specialty Chemicals profitability impacted by low-priced imports and input costs... Chemical business EBITDA up 36% YoY driven by volume growth and improved caustic soda realizations."
— Himanshu Kapania, Managing Director
Software Services
InfoEdge (Naukri) | Mid Cap | Software Services
Info Edge (India) Limited is a prominent player in India's consumer internet domain. It started with naukri.com and has diversified into various sectors.
Signals a willingness to maintain higher marketing spend for market share gains rather than prioritize short-term margin optimization. Shows conviction that brand and share-building are essential for longer-term pricing power.
"We've got these four businesses, and the level of spending is different in each. In Naukri (core), some time back we used to spend 3–4% of our revenue on marketing. We've upped it for the last few quarters to maybe 8–10%, but it's not as if we need to spend this money on Naukri—we could even spend 4% and we'd be fine for some time. We're spending a little more on the new businesses like High-Risk, NoGulf, which are doing better, or JobHai, which is a new business we're building. These investments need to be made upfront...they're important for building brands in the long run...In 99acres and Jeevansathi, we expect substantial investment in marketing even for the foreseeable future—markets where we want to gain share, grow faster than the market and competitors."
— Hitesh Oberoi, CEO
The explicit uncertainty in attributing the demand slowdown displays management caution, while the mention of customer contract deferrals flags a latent risk to earnings visibility.
"Hard to say whether this was because of AI or because of what happened between Iran and Israel or India and Pakistan, or generally softness from US demand slowing down. Certain sectors impacted more than others: GCCs did well, healthcare, retail, travel did well, but banking/financial services and infrastructure slowed down considerably compared to Q4."
"Whether this is temporary and whether growth will come back—hard for me to say. July started off on a better note...but whether we'll be able to sustain this going forward, hard for me to say."
— Hitesh Oberoi, CEO
The dual narrative—AI as a growth enabler and as a competitive threat—is vital. Internal AI deployment in products, marketing, and efficiency is robust, delivering measurable performance improvement.
“We continue to upgrade our database product in Naukri with AI and machine learning, improvements in recruiter productivity. New AI models for job search and recommendations have driven a 15–20% YoY improvement on the jobseeker side. ... Recent marketing campaigns are generated in-house by AI. Overall, our AI initiatives are driving growth across all verticals.”
— Hitesh Oberoi, CEO
Provides investors a framework for how management will adjust investment if growth remains weak: tactical reduction in branding, persevering on platforms and AI signaled as non-negotiable.
“What we may cut down is branding spend. Maybe we won’t do IPL-type advertising for the next few quarters. We’ll try and remain at the same level as last year for Naukri. Still, we’ll continue to invest in blue-collar platforms, businesses growing fast like IMJobs and High-Risk, and in Gulf. We’ll continue AI investment—both people and servers/GPUs. Important and strategic for the long run.”
— Hitesh Oberoi, CEO
Healthcare
OneSource Specialty Pharma | Small Cap | Healthcare
OneSource Specialty Pharma is India's first specialty pharma pure-play Contract Development and Manufacturing Organization (CDMO) specializing in the development and manufacturing of specialized drug-device combinations.
Concrete timeline acceleration for capex completion, driven by customer demand, reinforces visibility and credibility of future earnings.
“We will be having this capacity now, all capacity up and qualified by the end of calendar 2026."
"At this time we have capacities only for 40 million units. It's safe to assume that a large part of that will be consumed for the early markets that are opening up... early markets that are opening up are only mainly Canada and then Brazil and Saudi Arabia, and of course, a lot of emerging markets. To that extent, we are now very confident that our capacity is very largely sold on the take-or-pay concepts that Neeraj is alluding to."
— Neeraj Sharma, CEO & MD
Material accretive immediately adds scale, global reach, and diversification, de-risking customer concentration.
"OneSource is a culmination of an NCLT process where three parts of the businesses of the group combined and at that time both the Polish facilities and the Baroda joint venture with Brooks was still in the making and was complicating the NCLT process."
“Both these businesses in Poland and in Baroda report very healthy numbers. We currently have approximately $65 million of revenues for this year... fully booked and committed to deliver $100 million of revenues at the bare minimum in the next year... targeted revenue of $400 million... now have an upward trajectory in excess of $500 million and in slightly in excess of $200 million of EBITDA."
— Neeraj Sharma, CEO & MD
Reduces regulatory risk and signals strong operational and governance standards; supports partnership and market access.
"Our compliance track record was once again reaffirmed this quarter as we saw successful back-to-back inspections and approvals by USFDA and ANVISA... 25 inspections... all these have been successful."
— Neeraj Sharma, CEO & MD
Risk reduction lowers the cost of capital and increases optionality for future investments.
"I want to highlight on the back of the previous quarter where we had a credit rating upgrade, this quarter again we had another upgrade. Proud to say that OneSource is now part of the A family. This development is reflective of continued confidence in our financial management and provides better access to capital and on much better terms."
"Over the last few quarters we have prepaid a significant amount of high-cost debt and we are consciously balancing our approach to leverage access to capital and debt along with our internal accruals and customer participation in our capex programs."
— Neeraj Sharma, CEO & MD
Suggests consensus expectations may lag actual demand; reduces elasticity risk.
"All our customers who are going to be launching the product as the markets open up later this fiscal, have actually raised and revised their forecast upwards, in fact, which is very conducive. And the fact that all these contracts are supported by take-or-pay, this really reinforces our confidence in the trajectory ahead and basis that we are actually accelerating our Phase 2 of capacity expansion in drug device combinations."
— Neeraj Sharma, CEO & MD
Financial Services
Equitas Small Finance Bank | Small Cap | Financial Services
Manappuram Finance Limited is a leading Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC) in India. Established in 1992, the company offers a wide range of fund based and fee based services such as gold loans and money exchange facilities.
Deliberate upfront provisioning in microfinance to “speed up the credit cost cycle” and reset future performance.
“We have made two extra provisions—one being increase in provisions in various NPA buckets to strengthen the provision coverage ratio and the other being a management overlay in terms of standard-asset provisioning for microfinance. This has led to a loss for the first quarter… The thought behind creating a management overlay provision… was to speed up the credit cost cycle and showcase the new Equitas going forward without the current drag on the system.”
— Pen Vasudevan, MD & CEO
Secured lending now comprises 90% of advances, underpinning resilience amid microfinance stress.
“Our diversification strategy which was started back in 2011 holds good and has helped us achieve a secured advances book of about 90% as of first quarter. The secured book is also fairly diversified in terms of different product categories. With new products turning profitable and microfinance likely to get back to normal soon, we expect to deliver decent return on equity in the quarters ahead.”
— Pen Vasudevan, MD & CEO
In response to rising cost-to-income, management explained that income remains muted due to microfinance reversals, but they see peak costs and aim for 60–65% over two years.
“We may be at the peak of a cost-to-income cycle given that most of it has got factored in… even in our projections we are looking at two years from now a cost-to-income to be between 60 to 65%. That will reflect the last part of our investments… so from a short term, I think we’ve hit the peak; from a medium term it is 60–65%.”
— Balaji N, Executive Director, Technology & Operations
Jagish detailed 22% YoY growth in small business loans (SBL) and 50% growth in used-car finance, showing where the bank’s expansion is concentrated.
“Our small business loans, which is our flagship product, reached ₹16,667 crores with 22% year-on-year growth. Within SBL, our microlap product has shown exceptional momentum of 51% YoY. And used-car finance has grown by 50% YoY.”
— Jagish J, Head of Assets
Retail
V2 Retail | Small Cap | Retail
V2 Retail is a retail company in India offering a wide range of fashionable apparel at great value, providing a unique shopping experience.
A major strategic shift from a previously stated self-funded model to raising external capital, signaling an intent to aggressively accelerate growth and capture market share.
“It is not out of necessity or weakness; we are doing it from a position of strength. Our business has delivered one of the best quarters in recent history. I think it's a proactive move because we want to accelerate our momentum and also future-proof our growth. The value fashion market in India is poised to grow for the next decade, and we believe the next three to five years are critical to capture disproportionate market share. [SO IT WILL HELP US BE DEBT-FREE. IT WILL HELP US INVEST MORE IN MAKING OUR MODEL STRONGER. AND YES, IT WILL HELP US ACCELERATE OUR FUTURE GROWTH TRAJECTORY ALSO.]”
— Akash Agarwal, Director and CEO
The company raised its FY26 store opening guidance from 100 to 100-120, a direct positive driver for top-line growth and a signal of strong execution confidence.
“Initially, the target was 100 stores. I think we are on track; we should be opening about 100 to 120. Again, next year's target will completely depend on this year's performance. If we have another blowout year like the last two years, then next year we will increase the target to 130 to 150 stores.”
— Akash Agarwal, Director and CEO
The company's performance is bucking the trend of muted consumer demand, suggesting its value proposition is resonating and it is gaining share from the unorganized sector.
“When you hear stories, you definitely hear a demand pressure throughout rural, Tier-2, Tier-3. But like I said, even in July, we've seen good traction. It was in fact better than expected. So I think when the macroeconomic factors and the macros also start supporting us, then we can even post better numbers. But till now, we've seen that our product strength, our pricing strength, our variety strength...all those strengths are working well for us. I think macros matter less when there's such a big shift happening from unorganized to organized.”
— Akash Agarwal, Director and CEO
Countering a key risk for retail expansion, management states new store rentals are significantly lower than the portfolio average, mitigating concerns about cost inflation from rapid growth.
“The average rental currently for us is about Rs.53. And if you look at the average rental of the new stores that we have finalized, I think it's around Rs.41-42. So in fact, it is less than the average rental we are paying today. We've moved away from the idea that in order to enter a market, you need to find a store right in the center of the market. We give importance to other factors like floor plate, parking...and we've seen that if you have the right product and the right brand recall, you can attract the customer 500 meters to 1-2 kilometers away from the market also.”
— Akash Agarwal, Director and CEO
Management has shut down its in-house manufacturing (~5% of sourcing), a strategic shift to an asset-light model after achieving its goal of using it for cost benchmarking.
“The whole aim of opening the manufacturing units was to get transparent costs of making each and every category. It was not...it didn't make business sense to be opening a manufacturing unit for every 30 stores that we added. So it was only to get transparent costs so that we could negotiate the right prices and the right SAM minutes for making each and every product with our vendors. We've been able to achieve that, and in fact, we've given the factory to a vendor itself who is supplying it to us now. So instead of investing our own money and parking our working capital there, now we can achieve the same costs by getting it from contract manufacturers.”
— Akash Agarwal, Director and CEO
Clarifies that management's focus remains squarely on physical retail expansion, with online channels expected to be a very small part of the business, even in the long term.
“We are exploring the omnichannel business, but I had mentioned this earlier that we are still struggling with a good technology partner. And it's not of a very urgent priority for us. Even when that omnichannel business gets mature, it would not contribute to more than 4-5% of sales.”
— Akash Agarwal, Director and CEO
Alcohol & Beverages
Radico Khaitan | Mid Cap | Alcohol & Beverages
Radico Khaitan Limited (RKL) is a prominent manufacturer of Indian Made Foreign Liquor (IMFL) in India, tracing its origins back to 1943 as Rampur Distillery. It has expanded to become a major bulk spirits supplier and trades in a variety of alcoholic products, catering to both domestic and international markets.
The 75% duty reduction on bulk scotch provides a significant, immediate cost tailwind for Radico's premium portfolio, directly boosting gross margins.
“Before we begin discussions on Q1 FY26 results, I would like to provide a brief update on the UK-India FTA. The negotiations between the two governments have been finalized, and the comprehensive economic and trade agreement has been signed. In line with the expectations, duty on bulk scotch has been reduced from 150% to 75%. We have estimated our scotch requirements valued at over Rs.250 crores in FY26, and we expect significant cost advantages from this development. Thereafter, the duty will be reduced in nine equal installments to settle at 40% in the tenth year. In three years, we expect the import of scotch of Radico to cross Rs.400 crores.”
— Abhishek Khaitan, Managing Director
Signals a clear capital allocation priority towards deleveraging. Limited capex and strong cash flow generation could free up significant capital for higher shareholder payouts in the medium term.
“Net debt reduced by Rs.164 crores since March '25, mainly on account of profitability and working capital reduction. With limited capex going forward, we expect to be almost debt-free by FY27. Going forward, our focus will remain on driving profitable growth, enhancing cash flow generation, and improving on working capital efficiency. All of which will contribute to continued debt reduction.”
— Abhishek Khaitan, Managing Director
Provides a nuanced view on a key regulatory headwind, suggesting the impact may be temporary as the state government could self-correct if it sees revenue leakage to neighboring states.
“As far as Maharashtra is concerned, yes, we see that there is going to be an increase in the consumer price for the brands. But then we have always seen in the past that, like what we saw in Karnataka, they experienced that the consumer price of their brands in Karnataka were the highest in the country. And then when they started seeing growth in adjoining states, they realized that they need to rework on them, which they did. Now in Karnataka, premium brands have started growing and doing pretty well. So as far as Maharashtra.”
— Abhishek Khaitan, Managing Director
Indicates a strong future pipeline of new, high-margin products. This reinforces the long-term premiumization strategy and suggests continued positive mix-shift benefits for years to come.
“I think the luxury, semi-luxury story has just begun. And the innovation pipeline is very strong at Radico. So a lot of products are being worked upon. The most important point here is that most of our luxury and semi-luxury brands are still at their nascent stage. So the future seems to be very bright for these brands based on the traction that we have seen.”
— Abhishek Khaitan, Managing Director
The target to double After Dark's volumes to nearly 4 million cases in a single year highlights the massive success of its repositioning and is a key driver of the overall premium volume growth
“After Dark whisky entered a dynamic new phase in 2022 with the introduction of After Dark Blue, designed to resonate with a younger, contemporary audience. Since then, the brand has maintained its strong upward trajectory. This brand sold 1.9 million cases last year and is on track to double that volume in this fiscal. Our luxury and semi-luxury brands delivered nearly 50% year-on-year value growth during the quarter. We are on track to achieve our guidance of Rs.500 crores revenue from luxury and semi-luxury brands in FY26.”
— Abhishek Khaitan, Managing Director
Tourism & Hospitality
Chalet Hotels | Tourism & Hospitality | Small Cap
Chalet Hotels Limited, a part of the K Raheja Corp group, is a prominent player in the high-end hospitality sector in key metro cities in India like Mumbai, Hyderabad, Bengaluru, and Pune. The company owns, develops, manages, and operates luxury hotels and mixed-use properties with globally recognized brands like JW Marriott, Westin, and Marriott. Their properties are strategically located in prime business districts near airports and commercial hubs, offering a unique hospitality and commercial experience.
Sethi targets expanding total operational plus pipeline rooms to ~5,000 by FY26-end.
"Look, we've got about 3,300 rooms, which are currently operational, a little over 3,300 actually. We have about 1,200 rooms which are in the pipeline that is announced in various stages of either planning approvals or actual development on the site… Our wish list or our goal this year is to get to 5,000 on that count."
– Sanjay Sethi, CEO
CEO maintains confidence in sustaining double-digit RevPAR growth for 3–4 years despite new supply.
"I absolutely hold our belief that 10% and in fact, double-digit RevPAR growth is pretty much given for the next few years. And I'm very confident this will happen for the next 3 to 4 years, at least."
– Sanjay Sethi, CEO
The company faced significant external volatility in the quarter, including geopolitical tensions and an aviation accident that disrupted travel. Despite this, Chalet's performance remained strong.
"May brought a series of disruptions from geopolitical tensions on our borders to multiple airspace closures and a tragic aviation accident. These events triggered significant disruptions across the travel ecosystem. But yet again, the sector demonstrated strong resilience. I'm pleased to share that Chalet's own portfolio reflected equal strength."
"Our performance this quarter underscores the strength of our differentiated business model anchored in asset ownership and operational depth in a landscape increasingly crowded by asset-light players. ... This conviction allows us to weather shocks, protect margins and compound value consistently over time."
– Sanjay Sethi, CEO
Management clarifies the residential business (Vivarea, Koramangala project) was opportunistic; not part of forward strategy.
“The residential business is clearly a one-off. That's something that we don't necessarily plan to continue going forward. So when we look at this model, there is no reason for us to change and mend what's not broken. It's been one of our strengths and we'll continue to build on this exact model.”
– Sanjay Sethi, CEO
Management is actively balancing leisure and business mix to optimize returns, pointing to best-in-class operational metrics. Shows adaptiveness to evolving demand and efficiency in integrating new assets.
“We had started off with the mindset of at least bringing in 20% of our portfolio into the leisure properties. ... Overall, we are at about 0.97 for our portfolio (staff-to-room ratio), which I believe is the best in the industry. And The Westin Rishikesh that we acquired recently was at 2.27 when we acquired, but we have managed to bring it down to 1.67, thereby bringing in asset management efficiencies that we are known to bring into play.”
– Sanjay Sethi, CEO
Lemon Tree Hotels | Small Cap | Tourism & Hospitality
Lemon Tree Hotels Limited is India’s largest hotel chain in the mid-priced sector, offering upscale and mid-priced accommodations.
This is a major strategic pivot for Lemon Tree, signaling a global best-practice separation into asset-light and asset-heavy companies, with impending demerger and value unlocking.
“So, the intent is that Lemon Tree will then become asset light, a significant shareholder in Fleur and will focus on management, brand and technology as a company...”
— Patanjali G. Keswani, CMD
Management addresses both optimism and realism in handling scalability, workforce bottlenecks, and execution—key for investors concerned about sustainability.
“…Challenges are always there when you are talking about hyper growth, and we want hyper growth... rate of signings is much more than the rate of openings currently... In the next couple of years, the openings are going to also accelerate because about 70-75% of the hotels we are signing are Brownfields or Greenfields... we need trained staff for this... We are quite familiar with that challenge... flow-through goes, there is no risk to the flow-through. Management fees will keep accelerating...”
“Our approach was first, let us finish with our old portfolio, let us get it cleaned out, renovated, fully staffed, improve the occupancies, improve the ARR... then our entire focus will be on asset-light growth. And once Fleur lists, also on the asset-heavy growth…”
— Patanjali G. Keswani, CMD
Under-the-radar tech initiative reveals new propulsion for direct business and franchise growth, leveraging repeat customer economics; indicates rising entry barriers and margin insulation.
“…BCG assignment was towards digital transformation and it was building a foundation of using technology to enable hyper growth... once BCG finished it was more of a strategic level intervention... moved this entire IP... into a 100% subsidiary of Lemon Tree called Totally Foxed Solutions... we have created a bunch of products... Some of them have been launched... in revenue management, some in loyalty... repeat usage is about 43%-44%. So... if we open a new hotel, we are very rapidly able to move customers there who are repeat members and make that hotel breakeven very quickly… I think you will see a completely new Lemon Tree and Fleur in the next 15 months.”
“Repeat usage is about 43%-44%. So... if we open a new hotel, we are very rapidly able to move customers there who are repeat members and make that hotel breakeven very quickly and that I think is an attractive proposition...”
— Patanjali G. Keswani, CMD
First explicit commitment to franchise-led growth, matching international players' approach, with Keys as a scalable soft brand for the fragmented Indian market.
“No, it will be our focus for the Keys brands, not the Lemon Tree brands, which are far more coherent. Keys will be a soft brand. If you have noticed, many... listed companies in the brand space have launched what are called soft brands... Even Marriott has launched a soft brand called Series... For those hotels that have been built by individuals... 1.2 million such rooms, tiny, 30 - 40 rooms hotel... if you franchise, you get 10% - 11% of EBITDA and you do not have to actually do anything more than just distribute and sell that product. When you have disparate hotels, you cannot brand them coherently. You have to have a soft brand, which makes a commitment on quality, security, safety and hygiene with the umbrella brand of Lemon Tree, but it will not be branded Lemon Tree and yes, we want to hypercharge that part of the business and go after franchising in a very big way…”
— Patanjali G. Keswani, CMD
Reveals a behavioral shift in guest consumption, with strategic adaptation to maximize high-margin room revenue.
RevPAR - Revenue per Available Room
“This is the new levels because, see, a heck of a lot of customers today order food from Swiggy, Zomato, so on... Our focus is to actually maximize RevPAR. And if you maximize RevPAR, the flow through is as you can imagine it is, 85%-90%. If I look at Keys, and I say that the total revenue in Q1 was Rs. 24.4 crore, typically our revenue for a full year is about 5x the Q1 revenue because of seasonality. If this number is an indicator, then Keys Hotel, based on Q1, should do Rs. 120 crore... EBITDA margin will be north of Rs. 40 crore there... I am not particularly bothered about how much F&B revenue we do... focus is to maximize RevPAR and therefore maximize EBITDA and therefore maximize return on capital...”
— Patanjali G. Keswani, CMD
Building Materials
Ambuja Cement | Large Cap | Building Materials
Ambuja Cements Limited, a leading company in the cement industry in India and a member of the Adani Group, focuses on providing sustainable and environmentally friendly cement solutions.
This clarifies that underlying organic growth was 13%, significantly outpacing the industry's 4%. This indicates substantial market share gains beyond the impact of recent acquisitions.
“On an unadjusted basis, your volumes grew by 20% year-on-year. Now when you say that industry grew by 4%, where would be Ambuja's console compared to that 4% for the industry?”
“ Management: If I adjust for the acquired assets, it comes to almost 13%. One-three.”
— Vinod Baheti, CEO
Provides a concrete progress update on a major cost-cutting program, reporting that ~Rs 200/tonne of the targeted Rs 530/tonne has already been realized, boosting confidence in margin expansion.
“So, you are right, the journey of Rs.530 continues, and if I have to give a broad range, we would have hit almost 35% to 40% of that journey by now, so let us say closer to Rs.200 a tonne, basically. And primarily, let us say, power is one of the factors, along with green power. Second is now you will see on the fuel side, for example. And third is the logistics. These are like my primary, and of course, my raw materials costs, which we have sustained.”
— Vinod Baheti, CEO
Confirms that major brownfield projects are on track to be commissioned by March 2026, solidifying future volume growth visibility and the path to 118 MTPA capacity.
“So by March, whatever we have indicated here is what, for example, we are going to achieve. 118 million by fiscal year FY 2026 is there to be achieved. I can tell you that this quarter, you will see some of these capacities, and by, for example, December, most of my capacities will be there in place, including Salai Banwa, the Penna Jodhpur, the Bhatapara, and a couple of more.”
— Vinod Baheti, CEO
Explains the significant Rs 7,250 crore cash outflow in a single quarter due to the Orient acquisition, capex, and dividends, highlighting the company's aggressive deployment of capital.
“March end was almost Rs.10,250 odd crores, if I remember. And from there, for example, when I look at the overall cash flow, we are sitting right now closer to Rs.3,000 odd crores. [AND THIS INCLUDES THE OVERALL ACQUISITION OF SAY ORIENT, THEN ALSO MY CAPEX OF ALMOST 2,000 CRORES WHICH HAS BEEN FOR THE JUNE QUARTER, THEN ALMOST 600 CR... 550 TO BE PRECISE FOR THE DIVIDEND, AND SO AND SO FORTH.] So overall basically, right now we are holding Rs.3,000 odd crores of cash and cash equivalents. Why it matters: Explains the significant Rs.7,250 crore cash outflow”
— Vinod Baheti, CEO
Quantifies the significant financial benefit of its ESG strategy, projecting a ~24% power cost reduction by FY28. This provides a clear, long-term driver for margin expansion.
“Our green power share uptick with every passing quarter. It improved by 9.7% to 28.1% and it's targeted to reach 60% by FY28.THIS WILL REDUCE THE EXISTING POWER COST WHICH IS AROUND 5.9 RUPEES PER UNIT TO ALMOST RUPEES 4.5 PER UNIT BY FY28.The power consumption per metric tonne of cement also is expected to improve by at least five units based on the efficiency of the new assets and the efficiency improvement of the existing assets.”
Provides a clear guidance number for full-year capital expenditure, including the final payment for the Penna acquisition. This helps in modeling cash flows for the year.
“So you can consider, maybe a couple of thousands... so you can actually consider the ballpark, Rs.1,000 here and there. So Rs.10,000 is a good amount to assume. I would have considered between say Rs.9,000 to Rs.10,000, but yeah, 10 is okay. And that includes Penna also.”
International
J.P. Morgan | International
Operates as a financial services company worldwide.
This underscores JPMorgan’s strong capital position and strategic flexibility, while conveying cautious discipline towards acquisitions, reassuring investors about prudent capital deployment.
"We have a big amount of excess capital and that does mean that everything is on the table, including potentially inorganic things... acquisitions have a high bar, both financially, strategically, and culturally."
— Jeremy Barnum, CFO
The bank’s detailed credit commentary provides reassurance to investors about credit risk stability amid economic uncertainties, supporting credit cost guidance.
"The consumer basically seems to be fine... delinquency rates are in line with expectations... credit is primarily about the labor market."
— Jamie Dimon, CEO
This highlights JPMorgan’s measured but forward-looking stance on digital transformation and fintech disruption, balancing innovation with cost and strategic control.
"We’re going to be involved in both J.P. Morgan Deposit coin and stablecoins... We use LLMs and we will obviously be important in using our data to help our customers."
— Jamie Dimon, CEO
This reflects disciplined financial management prioritizing sustainable growth and capital efficiency.
ROTCE: Return on Tangible Common Equity.
"The value to shareholders is that we can not just earn 17% ROTCE but reinvest money at 17% ROTCE... That is the best way to use your capital."
— Jamie Dimon, CEO
Uber Technologies | International
Develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.
This signals a strategic pivot to a cohesive super-platform model to deepen consumer engagement by cross-leveraging mobility and delivery services while aggressively advancing autonomous technology.
“Fewer than one in five of our consumers are active across both mobility and delivery. We believe this can and will go much higher over time.” … “Andrew McDonald … will supercharge our platform strategy, bringing mobility and delivery leaders together… and push forward AV deployments significantly.” … “$20 billion share repurchase authorization reflects our sustained focus on shareholder value creation.”
— Dara Khosrowshahi, CEO
Uber's recognition that multi-service users are far more valuable shapes their platform integration strategy to deepen engagement, avoid overloading apps, and optimize personalized marketing.
“Those who use both mobility and delivery generate three times the gross bookings and profits than single business consumers.” … “We’re slowly moving toward a super app of sorts, balancing highly tuned individual apps that strategically cross-promote.” … “The journey towards a full super app will be easier from now on, with leadership focused on it.”
— Dara Khosrowshahi, CEO
The multi-segment, barbell approach expands addressable markets and membership monetization, reinforcing growth durability. Strong AV utilization is an early positive sign of commercial viability and consumer acceptance.
AV: Autonomous Vehicle
“Moto products are growing 40% and represent $1.5 billion in gross bookings, while our premium business is over $10 billion growing 35%.” … “Uber One membership has grown 60%, with 36 million members spending three times more.” … “WHIMOs are busier than 99% of human drivers in completed trips per day, and the AVs are showing a positive halo effect.”
— Dara Khosrowshahi, CEO
This reveals a balanced capital strategy that invests in future tech while protecting shareholder value. The diversity of AV deployment models reflects flexibility and adaptability in a nascent market. The willingness to hold equity stakes in technology partners suggests long-term strategic positioning.
“We can afford to invest aggressively in autonomous technology and still return plenty of capital to shareholders.” … “We expect a mix of merchant, agency, and licensing models over the next five years.” … “The NeuroLucid deal is expected to deliver better economic returns due to integration efficiencies.”
Designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.
This signals Cisco’s active redefinition of its growth vector by embedding AI at the heart of its networking and security portfolio, indicating a shift from traditional networking hardware toward AI-driven systems
“The AI infrastructure orders we received from webscale customers exceeded $800 million in the quarter, bringing the total for fiscal year 25 to over two billion, more than doubling our original $1 billion target... Cisco is well positioned to provide the critical infrastructure needed for the AI era."
— Chuck Robbins, CEO
Cisco is benefiting from both replacement-driven cyclical refresh and secular growth trends fueled by AI and cloud expansion. The consistent double-digit networking order growth and accelerating new security product adoption are early signals of momentum in key segments.
"Networking product orders grew double digits in Q4, marking the fourth consecutive quarter of double-digit growth... We have a slide illustrating this new traffic model... Security orders recorded mid single-digit growth, with new products growing over 20%. Splunk added 300 new logos in Q4."
— Chuck Robbins, CEO
Strong free cash flow generation alongside consistent capital return signals disciplined financial management that rewards shareholders while funding strategic investments.
"We returned $ 2.9 billion to shareholders during the quarter... increasing our dividend for the 14th consecutive year... The first priority is to support growth, then dividends, offset dilution, and lastly opportunistic acquisitions."
— Chuck Robbins, CEO
Management’s detailed response to skeptical questions conveys thorough operational insight and data-driven confidence in order quality and demand sustainability.
"We have looked extensively for pull forwards and have not seen evidence at scale... The AI business composition looks steady... Security growth is slower than anticipated but accelerating, with new products growing above 20%, and we expect continued improvement."
— Chuck Robbins, CEO
Marriott International | International
Engages in the operation, franchising, and licensing of hotel, residential, timeshare, and other lodging properties worldwide.
This signals a focused strategic pivot to broaden brand reach and cater to evolving customer preferences, improving market penetration and growth prospects.
“Marriott is strategically expanding its portfolio with new brands and acquisitions focused on midscale to upscale and tech-forward offerings, while conversions remain a key growth driver representing about 30% of signings and openings.”
— Tony Capuano, CEO
Investors gain clarity that Marriott anticipates continued but moderate growth, with geographic and segment disparities to navigate, reflecting ongoing macroeconomic and geopolitical uncertainties.
“Full-year global RevPAR growth is expected to be modest and skewed toward international and luxury segments, with US & Canada facing challenges including weak government demand and calendar event timing effects.”
— Tony Capuano, CEO
This conservatism in capital management and commitment to shareholder returns supports investor confidence in financial stability and disciplined stewardship.
“We anticipate returning approximately $4 billion to shareholders in 2025 while managing leverage between 3 and 3.5 times net debt to adjusted EBITDA.”
“Marriott maintains disciplined capital allocation balancing growth investments and shareholder returns, supported by strong cash flow generation.”
— Tony Capuano, CEO
Reflects Marriott’s commitment to leveraging technology for competitive advantage and long-term margin enhancement amid changing guest expectations.
“Marriott is investing heavily in tech transformation and AI to enhance operational efficiency, guest experience, and revenue opportunities, signaling a significant modernization effort.”
— Tony Capuano, CEO
“Shifts in travel patterns favoring leisure over corporate/business travel affect revenue composition and segment performance, which investors should monitor for recovery trends.”
“Leisure transient travel is outperforming expectations, especially in luxury segments, while business transient travel shows softness largely due to weak government travel demand.”
— Tony Capuano, CEO
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Quotes in this newsletter were curated by Apeksh & Meher.
Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes, so there may be some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human, and mistakes are AI.
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