The Chatter: In the Middle of Things
Edition #17
Welcome to the 17th 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 18 commentaries across 11 industries:
Financial Services
HDFC Bank
5paisa Capital
HDFC Life Insurance
ICICI Lombard General Insurance
Anand Rathi Wealth
Software Services
Tata Consultancy Services (TCS)
Tata Elxsi
Automobiles
Ola Electric Mobility
Belrise Industries
Engineering & Capital Goods
Elecon Engineering
Arisinfra Solutions
Metals
Bansal Wire Industries
Healthcare
Glenmark Pharmaceuticals
Tourism & Hospitality
Lemon Tree Hotels
Chemicals
Rallis India
Telecommunications
Tejas Networks
FMCG
Adani Wilmar (AWL Agri Business)
Media & Entertainment
GTPL Hathway
Financial Services
HDFC Bank | Large Cap | Financial Services
HDFC Bank Limited is one of India’s leading private banks and was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
They deliberately managed loan growth in FY25 to reposition the balance sheet, focusing on disciplined pricing and quality growth, achieving their goals.
"We consciously calibrated our loan growth in FY25 to reposition the balance sheet. Aided by appropriate and disciplined pricing and focused on quality growth, we were successful in achieving the same.”
— Sashidhar Jagdhishan, MD & CEO
High-cost borrowings decreased to 14% by the end of FY 2024-25, and the credit-deposit ratio was reduced to 96% from around 110% at the time of the merger.
“The percentage of high-cost borrowings has come down to 14 per cent at the end of the fiscal year 2024-25. The credit deposit ratio has been brought down to 96 per cent as on March 31, 2025, from a high of about 110 per cent at the time of the merger,”
— Sashidhar Jagdhishan, MD & CEO
The merger was successfully completed, strengthening the bank and positioning it for faster growth.
“I believe we have successfully navigated the merger and the bank is now positioned for faster growth. The reset in loan growth and the consolidation of the merger have resulted in a much stronger bank, that is now poised to capitalise further on growth opportunities.”
— Sashidhar Jagdhishan, MD & CEO
They expect advances to grow in line with the system in FY26 and exceed it in FY27.
"As stated earlier, we are confident of growing our advances on par with the system in FY26 and higher than the system in FY27.”
— Sashidhar Jagdhishan, MD & CEO
5paisa | Micro Cap | Financial Services
5paisa Capital Limited is a full-service discount brokerage company in the fintech sector, offering a range of financial products through a digital platform and mobile app.
In Q1 FY 2026, the company acquired 18,000 new customers—a 12% decline—bringing the total to 4.91 million. Its average daily turnover grew 70% to ₹2.25 lac crore, reflecting strong growth despite industry trends.
“Focus remains delivering best in class solutions while acquiring high quality customers to ensure a healthy lifetime value and sustainable payback period. In Q1 FY twenty twenty six, we acquired 18,000 new customers, a 12% quarter on quarter decline, reflecting the broader industry trend. Our total customer base now stands at 49.1 lakhs. Our ADT or average daily turnover grew to 2.25 lac crore rupees, marking a robust 70% quarter on quarter growth.”
— Gaurav Seth, MD & CEO
Marketing is an ongoing investment for them, encompassing the full digital stack, including performance marketing and brand-building through organic initiatives.
“So marketing for us is an ongoing activity as an investment. Typically, we follow the entire stack that is marketing through digital means, which is performance marketing, as well as we continue to build our brand and use organic initiatives, right, so brand name and brand related marketing as well.”
— Gaurav Seth, MD & CEO
They currently have no plans to cross-sell insurance or third-party products, focusing instead on becoming the leading player in investing and trading.
“Now the second part of your question was, do you want to cross sell insurance? And now the answer is no. At least in the short term, we don't have any plans to do third party products. I think there is a lot to focus on in this segment itself and to be the best player in investing and trading and that's what our strategic focus is.”
— Gaurav Seth, MD & CEO
Approximately 75-80% of their addresses are from Tier 2 and Tier 3 cities, while around 25% are from Tier 1 cities, noting some may list hometowns but reside in metros.
“So approximately, I mean, on the address side, more than 75% to 80% is from the Tier two, Tier three city. But again, I mean, in India, there are many questions that the people have the address of their hometown, but they are staying in Bangalore or some in metro cities.So I mean but on the basis of our test, I can say that the split is 75%, 25%.; 75% is from Tier two, Tier three and from Tier one, it is 25%.”
— Gourav Munjal, CFO
The trading mix is 80% derivatives and 20% cash, aligning with most other discount brokers.
“So it's eighty-twenty. 80% is for derivatives and 20% is in the cash segment.It is in the line with most of the other discount brokers.”
— Gourav Munjal, CFO
They caution against directly comparing consolidated figures, noting that interest income from cash floats is integral to broking revenue. Without this float income, discount brokers may need to increase trade charges significantly, as interest income is closely tied to their core broking business.
“When we see this consolidated figure, we should not, I mean, we should not do a one on one because the cash component on which, I mean, a broker enjoying the float is also part of a broking income.
If hypothetically tomorrow service says that you can't enjoy the float income, it would be difficult for every discount broker to go for a trade of INR20 per order. Then the order may be for INR40 or INR50 per order.My point is mathematically, you are saying yes, if you remove that income, there will be no profit. But interest income, the name is interest income, but it is allied to a main business, broking business.”
— Gourav Munjal, CFO
HDFC Life Insurance | Large Cap | Financial Services
HDFC Life Insurance Company Limited is a prominent life insurance provider in India, offering a variety of plans ranging from term insurance to pension and investment plans.
Insurance grew 31% in the first half, but due to a high base, the first quarter growth on a two-year CAGR basis was a solid 21%
“ for insurance more specifically, the first half for us grew by 31%. So we also have to contend with a base effect. If I were to even out the base effect then if I were to look at first quarter growth it has been a very respectable 21% on a two-year CAGR basis.”
— Vibha Padalkar, MD & CEO
The company highlighted that its overall 18% growth aligns with its long-term trend of doubling business every 4 to 4.5 years, consistent with a sustainable 16–18% growth rate shown across multiple cohorts in its investor presentations.
“But if i were to look at on an overall basis at an 18% growth which is nothing but the story that time and again over several cohorts of four years and this is there in our investor presentation on several cohorts we have doubled every four to four and a half years which is we're saying you know growth in the region of 16 to 18% is something that is the rightful place.”
— Vibha Padalkar, MD & CEO
In Q1, the company intentionally reduced its reliance on ULIPs (Unit Linked Insurance Plan) bringing their share down from 43% in Q4 to 38%.
“Point number two is that even in quarter 1 we have deliberately reduced our dependence on ULIP. If you look at quarter 4 ULIPS were about 43% on a standalone quarter basis versus 38% that we have managed to rein it in.”
— Vibha Padalkar, MD & CEO
The company plans to reinvest in two key areas: expanding its proprietary channels—including agency, direct-to-customer (offline and online)—and advancing its flagship tech transformation initiative, Project Inspire.
“..then we will want to invest it back into the business in two directions. One is in growing our own proprietary channel. So this is our agency channel as well as direct to customer channels both in person and online as well as u we are well on our way to delivering benefits from investment in project inspire which is our flagship technology transformation Project.”
— Vibha Padalkar, MD & CEO
The company emphasized that under the new leadership, growth is returning, which is a positive sign. The top priority now is to support this growth while also focusing on aspects like risk-based solvency.
“I think now with the new regime team it is imperative and proof of the pudding is that it is growing back. I think that is extremely important. So I the number one thing would be to facilitate how growth can come back while of course looking at many other aspects like risk based solvency if these are.”
— Vibha Padalkar, MD & CEO
ICICI Lombard General Insurance | Mid Cap | Financial Services
ICICI Lombard General Insurance Company Ltd. is one of the leading private sector general insurance companies in India. The company provides general insurance solutions to secure people and their family against unexpected and untoward events.
The 28% profit growth was driven by better insurance results—seen in improved combined ratios—and higher investment income. Both factors together contributed to the overall increase.
“..so the number of 28% growth that you see I think the markets have been kind in quarter and therefore to that extent whatever growth that you see is a combination of both an improvement in our insurance results which is largely reflected in the combined ratios and equally obviously there has been an improvement in our overall investment income a combination of the two is what has led to a growth in profits of 28%.”
— Gopal Balachandran, CFO
The industry is currently losing ₹12–13 for every ₹100 of premium, with combined ratios around 112–113%, indicating underwriting losses. In response, ICICI Lombard focuses on growing in preferred segments while staying cautious in others, waiting for market conditions to improve and seizing opportunities when they arise.
“If you look at the overall market the industry is kind of currently losing roughly about 12 to 13 rupees for every 100 rupees of premium that you collect. So which is why the industry combined ratios are operating at around 112-113%. So when there is so much of underwriting losses I think from an ICICI Lombard standpoint what we have always tried to do is to obviously accelerate in segments which we think are preferred segment at this point of time at the same time be guarded and cautious and wait for the cycles to turn around and obviously seize the opportunity.”
— Gopal Balachandran, CFO
They aim to consistently deliver a sustainable return on equity of 18–20%.
“What we have been largely talking about is to see how we can continue to deliver a sustainable return on equity in the range of 18 to 20%.”
They expect to underperform the market in overall growth for now, but believe they're well-positioned to capitalize on opportunities when the market cycle turns.
“But at least so far as growth is concerned at an aggregate level you will possibly see us underperforming the market. But this is how the nature of the business works and hence to that extent I think we will obviously be able to kind of position ourselves far better whenever the cycle reverses we'll be able to capture the opportunity of growth.”
— Gopal Balachandran, CFO
Their portfolio mix is 55% private vehicles, 27% two-wheelers, and the rest commercial vehicles.
“The mix for private vehicles is about 55%, two wheelers is about 27% and the rest is commercial vehicles.”
— Gopal Balachandran, CFO
Anand Rathi Wealth | Small Cap | Financial Services
Anand Rathi Wealth Limited is a prominent non-bank wealth solutions firm in India offering a range of services through its Private Wealth division, including mutual fund distribution and market linked debenture sales.
Due to external variables, the company is maintaining a conservative AUM guidance of ₹1 lakh crore to avoid disappointing shareholders.
“..ideally the AUM number has a lot of external variables. So we will not take chances and disappoint our shareholders at the end of the year. So we'll keep the one lakh pro AUM mark as the guidance.”
— Feroze Azeez, Joint CEO
The company saw some operational efficiency in Q1 but does not expect further cost-to-income ratio reductions, as it plans to continue reinvesting in the business rather than focusing on efficiency at this stage.
“Of course, there is some degree of option operational efficiency which has come in in the first quarter. But I don't see any further cost to income ratio reductions because we'd like to reinvest in the business as you would have heard me see the last 14-15 quarters we've been doing the results. We've always been saying we're going to reinvest our monies and not looked at operational efficiency at this stage of our business.”
— Feroze Azeez, Joint CEO
The company is the only one in the NSE Small Cap 250 to have issued and met PAT guidance over the past three years, while most peers do not provide such guidance.
“I should definitely highlight to you in the NSE small cap 250s whom we are a constituent of in the last 3 years we checked how many have given a PAT guidance and met it. We are the only company in NSE small cap 250 who has given a pat guidance. Of course not all of them give.”
— Feroze Azeez, Joint CEO
The company had its lowest RM (Relationship Manager) additions recently, letting go of a few due to issues, but maintained a very low attrition rate of 0.1–0.2%. Since 2015, it has focused on internally training 70–80% of its RMs to ensure stability and reduce poaching by competitors.
“..lowest number of RM additions we had let gone off a couple of RMs as well because of some some issues uh but we our attrition is near 0, 0.1-0.2.”
“...but we have believed that we have to internally build them if I buy a relationship manager from somewhere it is quite obvious somebody else will pay him 30 40 50% and then take him away so if you want near zero attritions you have to have at least 70 80% of your RM fraternity internally trained and that's what we've been doing from 2015.”
— Feroze Azeez, Joint CEO
The company remains optimistic about its growth prospects, noting that global and NRI capital will increasingly turn to India. Its international offices, including Dubai, have performed well, reinforcing this positive outlook.
“See capital searches for growth and I think global capital NRI capital will look for growth and I think they will not be able to ignore India for far too long. Uh so I we are very upbeat about our prospects like Bahrain and UK we have a Dubai office which has done beautifully well so far.so I think I'm very very positive.”
— Feroze Azeez, Joint CEO
Software Services
TATA Consultancy Services | Large Cap | Software Services
Tata Consultancy Services Limited (TCS) is a global IT services and consulting organization known for its consulting-led and cognitive powered solutions.
North America was flat with 0.1% growth, while the UK and Europe declined by 0.3% and 3.1% respectively. Asia Pacific remained stable, but the Middle East, Africa, and Latin America saw declines. India reported a significant 32.6% drop this quarter."
“..North America was flat at about 0.1% growth while the UK and Europe declined by minus.3 and minus 3.1% respectively. Amongst new growth markets, Asia Pacific remained flat while Middle East Africa and Latin America declined sequentially. India declined by 32.6% in this quarter..”
— K. Krithivasan, CEO & MD
The company is ramping up investments in the AI ecosystem, covering infrastructure, data platforms, AI agents, and business applications. It now has 114,000 associates with advanced AI skills among the highest in the industry.
"We are increasing our investments across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications."
"Our 114,000 associates with higher order AI skills represent one of the highest numbers in the industry."
— K. Krithivasan, CEO & MD
The company is still evaluating the business outlook and has not yet made any decisions regarding wage hike front.
“See we are still calibrating we still yet to decide in terms of what is how the business decision will turn around and how when will it turn around and based on that we decide. So we have not made any decision on that front yet.”
— Milind Lakkad, CHRO
The company noted that many enterprises are in a wait-and-watch mode due to ongoing uncertainty, leading to increased caution and project delays. This impacted Q1 performance compared to initial expectations.
“..I think I would I see it as a lot of enterprises being on a wait and watch mode on getting more clarity as it happens but that that uncertainty impacts us more because in a wait and watch mode everyone starts getting cautious delays start happening and that is one of the reason what we saw play out in Q1 against what we were planning for”
— Milind Lakkad, CHRO
The company sees AI growth coming from three key areas: industry-specific solutions, modernization of legacy systems to reduce technology debt, and scaling AI initiatives from pilot projects to ROI-driven deployments.
“If I look at where the growth has come from in AI I would say that it has come from three areas, one of the industry specific solutions that our customers are building. Second uh Kiti talked about technology debt. So customers are turning to AI to really modernize their technology estate. So I think that's an area which is showing an uptick especially in some industries. And I would say the third area is where uh as you start moving from pilots to more scaled ROI projects in AI, customers are looking at how do you do this at scale.”
— Aarti Subramanian, President and COO
Last quarter, the company had flagged potential headwinds from reduced operating leverage due to higher utilization. It had invested in capacity anticipating growth, but late-quarter demand contraction impacted performance.
“If you look at last quarter, we did call out given the uncertainty from a headwind which we called out was that operating leverage might be impacted with higher utilization and that is one thing which played out. We anticipated growth and invested in cap uh capacity whereas we saw towards the end some demand contraction coming in and that was one impact.”
— K. Krithivasan, CEO & MD
TATA Elxsi | Mid Cap | Software Services
Tata Elxsi Limited, founded in 1989, is a global leader in providing design and technology services in industries like Automotive, Broadcast, Communications, and Healthcare.
The transportation business, contributing over 50% of total revenue, remained flat in constant currency. The automotive sector faces ongoing uncertainty due to China-related and tariff issues, affecting R&D strategies, while Tier-1 suppliers continue to face challenges.
“Our transportation business that represents over 50% of our overall revenues did well to exit flat in constant currency terms.”
“The automotive industry is still in a state of flux with the China business and tariff related uncertainties, casting a cloud on R and D strategy and spend, while the Tier one supplier business continues to be challenged.”
— Manoj Raghavan, MD & CEO
The Media and Communication business saw a 5.5% QoQ decline in constant currency, primarily due to transition investments from recently announced consolidation deals, which are expected to drive revenue growth in future quarters.
“Our Media and Communication business reported a decline of 5.5% Q o Q in constant currency.
The large consolidation deals we announced at the end of Q4 FY twenty twenty five will contribute to revenue growth in upcoming quarters.The transition investments that are part of such consolidation deals has largely contributed to this dip in this quarter.”
— Manoj Raghavan, MD & CEO
A strategic multimillion-dollar design and digital deal was signed with a U.S. tech giant for next-gen AI and product development. This is expected to drive growth in the vertical from Q2, supported by deal ramp-ups and a strong pipeline.
“I'm also pleased to announce a strategic multimillion dollar design digital deal with the US.
Tech giant for next generation AI and product feature development. We expect to bring back growth in this vertical in Q2 on the back of the deal ramp ups and healthy deal pipeline.”
— Manoj Raghavan, MD & CEO
The Healthcare and Life Sciences segment declined 6.7% QoQ in constant currency, mainly due to tariff-related impacts on medical devices with two major U.S. clients.
“Our Healthcare and Life Sciences segment declined 6.7% quarter on quarter in constant currency, primarily affected by tariff related impact on medical devices with two key customers in The U.S”
— Manoj Raghavan, MD & CEO
Margins were impacted primarily by the revenue decline. However, the company expects a gradual recovery over the next three quarters as revenues improve.
“Coming to the margins, of course, as you rightly said, a lot of the margin situation is because of the drop in the revenues. And definitely as the revenues pick up, we are confident of getting back to the margin profile.We foresee that over the next three quarters, we will gradually be able to pull back the margins.”
— Manoj Raghavan, MD & CEO
The company is actively exploring M&A opportunities, focusing on tuck-in acquisitions. It is also considering adjacent areas within its three main verticals for expansion.
“On M and A, yes, we are looking, we have certain at any point of time, we have certain pursuits.
But again, it will only be whatever we look like that could be a tuck in sort of an acquisition, right?
So, yes, and regarding new verticals, we are looking at adjacencies for each of our three main verticals.”
— Manoj Raghavan, MD & CEO
Automobiles
Ola Electric Mobility | Small Cap | Auto OEM
Ola Electric Mobility is a company specializing in manufacturing electric vehicles and core components like battery packs, motors, and vehicle frames at the Ola Futurefactory. With a strong focus on R&D and technology, the company aims to produce high-quality and accessible EV products.
The company clarified that the reset is driven by its internal strategy, not EV market trends. While EVs are still growing twice as fast as ICE vehicles, the company now aims to balance profitability with growth after previously pushing aggressive expansion.
“The reset is not so much about EV penetration expectation but more about our own internal strategy. The EV industry is still growing 2x faster than the ICE [Internal Combustion Engine] industry, and we expect that to continue. But for us, we’ve been very aggressive on penetration over the last couple of years, and now we’re at a stage where we want to balance profitability and growth.”
— Bhavish Aggarwal, Chairman and MD
This quarter, operational cash flow was nearly neutral due to structural improvements like better working capital, inventory, and warranty claim management, as outlined in the report.
“In fact, in this quarter, we were almost neutral on operational cash flows. This is because of structural improvements that we’ve made, which we’ve called out in the report. Things like working capital, inventory management, warranty claims management, all of that detail is there in the report.”
— Bhavish Aggarwal, Chairman and MD
The company handles part of the CBS engineering in-house and sources the rest from suppliers. For ABS, it is fully engineered internally, with some components built in-house and others by suppliers.
“The CBS [Combined Braking System] is a simple component. We probably do a portion of the engineering of that in-house and some of it must be brought out by suppliers. But for the ABS, what we’re doing is, we are engineering the whole thing in-house, and we will work with some suppliers to build some components of it and some we will build in-house.”
— Bhavish Aggarwal, Chairman and MD
The company believes 5 GWh capacity will be sufficient through FY25, enough for about 1.2 million vehicles, including potential sales to non-Ola customers.
“5 GWh is what we feel will be enough through FY25. That covers roughly 1.2 million vehicles, and that should be enough to us, or even if we have some non-Ola customers eventually that we will sell our out to.”
— Bhavish Aggarwal, Chairman and MD
The strong positive feedback on the Roadster motorcycle launch signals early market traction in a new product category, which could diversify Ola’s revenue stream and strengthen its brand.
“The feedback has been overwhelmingly positive. You can yourself go on social media and just search for Roadster feedback. You will get all the views, all the kind of feedback. Very, very positive. Customers are loving the bike.”
— Bhavish Aggarwal, Chairman and MD
Belrise Industries | Small Cap | Auto Ancillary
Belrise Industries, based in India, specializes in manufacturing safety critical systems and engineering solutions for a wide range of vehicles including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles.
India's growing economy and rising consumer mobility, with people transitioning from two-wheelers to four-wheelers, are driving demand. Government tax cuts are also supporting positive market direction.
“So that's a good sign and largely India is a growing economy. there's upward mobility from uh people who are buying two wheelers to now buying four wheelers. So that that transition is also happening and the tax cuts that the government sort of you know brought in for the general public at large that is also supporting u good directionally again in terms of good demand.”
— Sumedh Badve, Promoter
The company expects average contract values to rise from ₹12,500 to ₹17,500 in two-wheelers and from ₹25,000-30,000 to ₹40,000-45,000 in four-wheelers over the coming years.
“..so from a content vehicle we're about in the two wheeler space we're at 12,500rupees uh and over the years with addition of u of of new products and and uh an increase in accountable vehicle across different OEMs we expect to go to about uh 17 17 a half thousand in the four-wheeler space we're about uh 25 to 30,000 and and we expect that to also increase to 40 45,000 uh in the coming years with uh in in in in due course.”
— Sumedh Badve, Promoter
The company benefits from having its main facility in Rajasthan just a few kilometers from its existing one, offering management and operational synergies.
“We're very fortunate that one of the main facilities which is in Rajasthan is only a few kilometers away from our existing facility there. So um big benefit in terms of management and and and synergies on that front.”
— Sumedh Badve, Promoter
The company expects its share in the four-wheeler industry to double, growing at twice the rate of the two-wheeler industry.
“So we expect the fourwheeler, so it's currently at 12 and a half% in the four-wheeler industry. expect that to double over the next um so we expect it to go 2x the the speed in the uh in the four wheel industry as compared to the two wheel industry.”
— Sumedh Badve, Promoter
The company is platform-agnostic, with 70-80% of its product portfolio being powertrain agnostic, so it expects minimal impact from this factor.
“So we are significantly platform agnostic. All about 70 to 80% of our product portfolio is essentially power chain agnostic. So as a result of that we believe there'll be not a major impact of that.”
— Sumedh Badve, Promoter
The company has significantly reduced its debt-to-equity ratio from 1:1 pre-IPO to 0.2–0.3, and remains in a comfortable position to manage debt through internal accruals and repayments.
“We'll continue to service debt. It's a very comfortable position that we stand at. If you look at our net at our debt to equity position before the IPO, we were at a 1 is to1. Now we've come down to about 0.2 to 0.3. and based on the debt to equity uh ratio I think we're at a comfortable position so through internal approvals and and through repayment we'll we'll uh we'll be able to maintain
That.”
— Sumedh Badve, Promoter
Engineering & Capital Goods
Elecon Engineering | Small Cap | Engineering and Capital Goods
Elecon Engineering Company Ltd is a leading provider of power transmission solutions and material handling equipment. They serve various industries such as steel, fertilizers, cement, coal, and power stations in India and globally.
The company saw softer momentum in Q1 due to slower product deliveries in the Middle East and some geopolitical volatility in overseas markets. However, it expects no major impact on full-year performance
“The momentum shows some softness in Q1 is due to in terms of product deliveries, especially in Middle East markets. We have also seen some impact of geopolitical volatility in some overseas markets during the quarter. Having said that, we do not foresee any material impact on the business from a full year perspective.”
— Kamlesh Shah, Group CFO
The 7% year-on-year decline in exports was mainly due to delayed deliveries to the Middle East, impacted by the Israel-Iran situation.
“What led to the decline in exports of 7% on a year on year basis?”
“This was due to some good deliveries for the goods in The Middle East because of Israel and Iran, what kind of situation and the delivery will get there by the two some time.”
— Kamlesh Shah, Group CFO
The company plans to invest ₹400 crore in the gear division and an additional ₹35 crore in the growing MHC division.
“400 crores will be in the gear division. And over and above this 400 crore, for 35 crore, we are going to spend in the MHC division also because my MHC division is also getting the momentum.”
—- Kamlesh Shah, Group CFO
The ₹300 crore CapEx over three years is expected to generate an additional ₹500 crore in revenue.
“Additional revenue, this 300 core CapEx, what we did over the period of three years, it is going to generate an additional 500 core of revenue for us.”
— Kamlesh Shah, Group CFO
Arisinfra Solutions | Micro Cap | Engineering and Capital Goods
Arisinfra Solutions is a B2B technology-enabled company in the construction materials market. They simplify and digitize the procurement process, providing an efficient end-to-end experience.
Management sets a clear and aggressive forward guidance for 40-50% annual topline growth, a key metric for investors to track.
“Yeah, so overall in terms of revenue, I think we are well-positioned to kind of target a growth of around 40% to 50% for the next two to three years. You know, that's the kind of growth that we will, yeah, look to target with the IPO proceeds.”
— Bhavik Khara – Whole-time Director & CFO
Signals significant operating leverage with EBITDA guided to grow 60-70% annually, much faster than revenue, implying strong margin expansion.
“So in terms of absolute numbers, I think the kind of support that we have with technology, in fact, you know, most of our workflows, the kind of business that we manage, most of the work is done by the technology that we have built, and we see the operating leverage start to kick in in the next two to three years as we scale. [SO WE SEE A DEFINITE IMPROVEMENT IN OUR EBITDA. IN FACT, WE FEEL THAT, YOU KNOW, WE'LL BE GROWING AT, LET'S SAY, ABOUT A 60-70% GROWTH IN OUR EBITDA FOR THE NEXT TWO TO THREE YEARS.] So, you know, that's the kind of numbers that we're looking at.”
— Bhavik Khara – Whole-time Director & CFO
Sets a clear capital structure target (D/E of 0.5-0.7), indicating a disciplined approach to leverage and use of innovative financing to manage working capital.
“So, the endeavor is going to be to keep our debt-to-equity ratio in the range of 0.5 to 0.7 in the future, without harming the growth that we want to do as well. So, what we'll do is we will use a mix of debt and equity. It's not, it's not the traditional CC lines or working capital debt, but it's more of, you know, getting ourselves listed on vendor financing platforms where our vendors can discount our bills and, you know, get money faster.”
— Bhavik Khara – Whole-time Director & CFO
Targeting a reduction in the net working capital cycle to 80-90 days is crucial for a capital-intensive business and signals a strong focus on operational efficiency.
“A good sustainable number that we would be looking to achieve in the next two to three years is about 80 to 90 days of net working capital. That gives us a good asset turnover ratio of around four. So, you know, that's what we will look to do in the future. Yes, you know, it's a working capital business. We understand, you know, we bridge the gap between the payables and receivables. Right now, what we've done is we've increased our payable days by getting favorable credit terms from the suppliers in the market to about 25 days, and we've brought down the receivables from about 160 days to about 134, and that's how we've come to a number of 110.”
— Bhavik Khara – Whole-time Director & CFO
Quantifies the significant margin uplift from the strategic shift to contract manufacturing, a key driver of future profitability as this segment grows.
“So in contract manufacturing, we are currently focusing on aggregates, RMC, and blocks. If, just to kind of give you some perspective, if you compare traded margins of aggregates versus where we control the entire capacity and have control over supply and quality, the difference in gross margins would be... [TRADED WOULD BE APPROXIMATELY 6% TO 7%, AND IN CONTRACT MANUFACTURING, GOING UP TO AS MUCH AS ABOUT 12% TO 14% EVEN.]”
— Bhavik Khara – Whole-time Director & CFO
Clarifies their business model is not a simple tech marketplace but involves taking inventory and credit risk, which explains the working capital need and is central to their value proposition.
“Yes, so our business model is not just to connect supply and demand. Our work, our differentiation is execution, where we take complete control over the sourcing, the quality, delivery, and documentation, which in effect means that we buy materials in our books and we sell it to our customers, and we give that kind of working capital support. So basically, we are bridging the gap between the payables and receivables. So that is why for growth, we require working capital.”
— Bhavik Khara – Whole-time Director & CFO
Highlights the rapid growth of the high-margin services business (60-70% margins mentioned elsewhere), an increasingly important part of their value proposition and profitability.
“..onboarding trusted suppliers and manufacturers, forming long-term partnerships with them, and securing material availability to serve the growing needs of large developers and contractors. Over time, this core engine of supply has naturally created opportunities to extend our role into project-level services..”
— Bhavik Khara – Whole-time Director & CFO
Addresses a potential investor concern by explaining the Q4 margin dip was a deliberate, short-term decision to service key clients, not a structural decline in profitability.
“As much as we want to focus on contract manufacturing, there are times when we want to support some key large accounts with materials that don't fall under that bracket. [AND THAT'S EXACTLY WHAT HAPPENED IN Q4, WHERE WE WERE SUPPORTING A FEW LARGE ACCOUNTS WITH HIGH DEMAND BECAUSE THE CONSTRUCTION ACTIVITY WAS AT PEAK.] And if you see the absolute number of contract manufacturing sales is the same, but there was an increase in the traded materials. And that's predominantly why, you know, there was a moderate profit that was recorded. But it was more of a strategic decision and not, you know, less demand from any particular high-margin categories.”
— Bhavik Khara – Whole-time Director & CFO
Metals
Bansal Wire Industries | Small Cap | Metals
Bansal Wire Industries specializes in manufacturing a wide range of wires such as high and low carbon steel wires, galvanized wire, stainless steel wires, and specialty wires.
The company expects revenue to rise by around 20–25%, driven by higher volumes of low value-added products. However, actual growth will depend on raw material prices, as product mix significantly impacts revenue figures.
“..revenue might not go up by the same number because again uh revenue is all a matter of my volume. The kind of products that we sell uh gives us a very different kind of a revenue number. This year our process is to sell more low value added products. Increase those numbers more. Therefore revenue might go up to about 20-25%. But all of this depends on the raw material prices.”
— Pranav Bansal, CEO & MD
The company’s three-year plan involves focusing on volume growth in the first year, stabilization in the second, and scaling to a higher level in the third.
“So this is the three-year plan. The first year is volume work, the second year is stabilization and the third year is to move to a new and a better level.”
— Pranav Bansal, CEO & MD
The company held a 6-7% market share in FY24 and aims to capture 10% over the next 3-4 years, while the industry is growing at 8-10%.
“..so uh in terms of market share in FI24 we were at about 6% 7% kind of a market share we are looking at grabbing a 10% market share in the next 3 to four years uh whereas the industry is growing at about 8 to 10% as well”
— Pranav Bansal, CEO & MD
The company focuses on return on capital (ROC) rather than margins, targeting a 20-25% ROC. Products yielding 22-25% ROC are considered ideal, regardless of their revenue share.
“..So again for us how we look at our margins are more on return on return ratios. Uh we target a 20-25% kind of an ROC earlier. Now our target for ROC is 20- 25%. So any product that gives us 20-25% ROC for us is the right product in percentage it might be more or less in terms of percentage of revenue.”
— Pranav Bansal, CEO & MD
The steel quartz pilot project is progressing well, with production underway and samples sent to customers. Approval is expected within 12-15 weeks.
“So the steel quarts are doing good.Our pilot project is already underway. We started production. Samples have already gone to some customers and we're waiting for approval which will come to us in the next 12 to 15 weeks.”
— Pranav Bansal, CEO & MD
Healthcare
Glenmark Pharmaceuticals | Mid Cap | Healthcare
Glenmark Pharmaceuticals Limited is dedicated to developing new chemical and biological entities. Their drug discovery efforts target inflammation, metabolic disorders, and pain.
The company has partnered with AbbVie for commercialization in the US, Canada, Europe, China, and Japan, while Glenmark will handle India and other emerging markets.
“from a partnering perspective um the way we've structured it is uh we've partnered with AbbVie for US Canada Europe China Japan uh most of the developed markets and uh Glenmark will commercialize this product uh eventually right uh in all in India and all emerging markets.”
— Glenn Saldhana, CMD
The company will receive a $700 million upfront payment upon regulatory approval, with an additional $1.25 billion in milestone payments tied to clinical development, regulatory approvals, and sales performance of the asset.
“That's correct. So we get a $700 million payment uh up front uh and uh as soon as we get regulatory approvals uh that money will be received by us. The $1.2 plus billion dollars of milestones are spread into clinical development milestones. So as the molecule progresses to clinics we keep getting regulatory milestones. So as the molecule gets filed in various markets we get and approved we get milestones and then we get sales link milestones. So cumulatively that number comes to 1.25 billion you know for the for the asset.”
— Glenn Saldhana, CMD
AbbVie will handle all clinical development going forward. While exact timelines are uncertain, similar assets typically take around 4–5 years to reach commercialization.
“So Abby takes over all clinical development from here on. In terms of time frame I mean I can't give you a specific time frame but typically molecules if you look at other assets right in the space they typically take about four five years at least to get to commercialization.”
— Glenn Saldhana, CMD
The company is considering increasing shareholder payouts, pending board approval.
“We'll definitely consider increasing the payouts to shareholders. I think we'll put it up to the board and get that approval.”
— Glenn Saldhana, CMD
The global multiple Myeloma market is currently valued at $30 billion and is expected to reach $50 billion by 2030. With novel drugs having 15–20 years of exclusivity, the company anticipates significant long-term royalty potential as these drugs enter the market.
“So the Myeloma market today is about $30 billion estimated to be about 50 billion by 2030 globally. So when you look at the market size is very large in terms of royalty payments = typically some of the novel drugs have a life of at least 15-20 years of exclusivity. so the royalty payments can be significant uh as and when these drugs come to market.”
— Glenn Saldhana, CMD
The company will remain focused over the next year and does not plan any M&A activity during this period.The company is actively exploring in-licensing opportunities for India and emerging markets, focusing on dermatology, respiratory, and oncology.
“Well, for the next one year we're going to stay focused. uh I don't think uh you would see us do anything on the M&A side.”
“...so we're constantly looking at licensing of assets both for India and emerging markets in the three therapeutic areas which we operate, which is primarily dermatology, respiratory and oncology.”
— Glenn Saldhana, CMD
Hospitality
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.
The company, in a joint venture with a Dutch pension fund, plans to list its asset company next year. While the listing method, such as an IPO, is still under discussion, the intent is clear—to proceed as quickly as possible.
“..you know we already have an asset company in a joint venture with a Dutch pension fund and our intent is to list it. Now the way we list it is actually what is under discussion. Will it be an IPO and in which form? That is something I cannot comment on right now but it is under discussion and we're very clear we "want to do it as quickly as possible.”
— Patanjali Keswani, CMD
The company aims to reduce debt below 1.5 next year and plans to split into an asset-heavy arm and a high-growth Lemon Tree-led segment.
“See, our debt is not so high now. our debt to EDBITDA is less than 2.5 and by next year anyway it'll be less than 1.5 closer to one. So really the intent is not only to reduce debt which will happen automatically. The intent is also to split the company into an asset heavy side which attracts a certain type of investor and a high growth management/brand/technology side which is where lemon tree is.”
— Patanjali Keswani, CMD
Lemon Tree plans to reduce its stake in the joint venture below 50%, aiming for deconsolidation, and is exploring ways to significantly reward its shareholders as part of the process.
“Looking at a way to significantly reward share shareholders of lemon tree in this because we currently own about 60% of this uh this joint venture and we intend to become deconsolidated which is our shareholding should drop below 50% in this company. uh and obviously u how we reward shareholders is also part of this entire discussion.”
— Patanjali Keswani, CMD
In Q1, 15 hotels with 1,350 rooms were signed and 5 hotels with 400 rooms opened, including one in a new city. In July, 10 more hotels with 800 rooms in 8 new cities will be signed. Growth is focused on the asset-light model.
“If you look at Q1 we signed 1350 rooms uh 15 hotels most importantly in six new. uh we opened about 400 rooms in uh uh with five hotels and one of them was in a new city. In July alone we will sign another 10 hotels and uh in eight new cities 800 rooms. So the way I see it is to see growth is in the asset light business.”
— Patanjali Keswani, CMD
They focus on fast-growing cities with strong connectivity—airports, airlines, roads, and Vandhe Bharat—to strengthen their network presence.
“What we track most closely are which cities which are growing very fast have better connectivity based on you know airports, airlines, roads and Vandhe Bharat and we want a presence there because it has an impact on our entire network and that's what we really track.”
— Patanjali Keswani, CMD
Chemicals
Rallis India | Small Cap | Chemicals
Rallis India Limited, a subsidiary of Tata Chemicals Limited, is part of Tata Group, operating in Agri-Sciences. The company provides farmers with innovative agricultural products, focusing on enhancing farm yield, soil health, and farmers' income.
Rainfall has positively impacted the agriculture sector, benefiting the business.
“Good spread of rainfall that obviously brings cheers to the agriculture sector. So we are the beneficiary of that. We had revenue growth across all three uh sectors. We have been talking about three three business segments we operate. One of them is uh crop care where you have crop protection products as well as soil and plant health products. And then we have a seed business and within crop care we have domestic business as well as export business. So there has been yes significant uptick across the segment. I cannot rule out any one particular segment.”
— Gyanendra Shukla, MD & CEO
Of the ₹957 crore revenue, ₹190 crore came from exports, which improved from last quarter. However, Contract and services Manufacturing revenues declined due to timing and agreement-based factors.
“So of the total 957 cr revenue we recorded, export is about 190 cr. Now this changes from quarter to quarter. I think relative to last quarter it certainly significantly. We had a better uh uh quarter this year but our CSM revenues were down because CSM revenues are driven more by you know agreements and the month.”
— Gyanendra Shukla, MD & CEO
The company remains focused on both domestic and export markets, with exports aimed at building a strong customer base to benefit from the long-term advantages of the China Plus One strategy.
“At this point of time our focus remains on domestic business as well as export business and on export we continue to focus on delivering a customer base as we said because I think we will continue to benefit in the long-term fromChina plus one strategy and we don't want to be left behind on that."
— Gyanendra Shukla, MD & CEO
The company aims to achieve high double-digit revenue growth in the coming period, emphasizing revenue over volume, as pricing decisions often influence overall performance.
“The forecast is concerned as we said our goal remains to start delivering high double digit growth you know over next horizon. Double digit revenue or volume growth. Revenue growth. Now revenue is always a more important criteria because sometimes you have to take a pricing decision. It's a combination of you know price and volume all the time.”
— Gyanendra Shukla, MD & CEO
Telecommunications
Tejas Networks | Small Cap | Telecom
Tejas Networks Limited specializes in designing, developing, and selling high-performance products to various industries including telecommunications service providers, internet service providers, utility companies, defense companies, and government entities.
In FY25, revenue saw a major boost due to the large BSNL project with 100,000 sites delivered quickly. However, FY26 won't have the same base, so performance should be compared to FY24 instead.
“So first of all uh let's see we came off in FY25 we came off on the back of a really large project this BSNL 100,000 sites which we had to deliver in a very accelerated way and that kind of resulted in a huge bump up of our revenues from FY24 to FY25. So obviously you know we are all been very clear that FY26 is not going to be in the background of FY25 and we should look at our business in the context of FY24.”
— Arnab Roy, COO & MD
The 18,000 additional sites and some customer shipments were delayed due to inventory and clearance issues, making this a one-off quarter. The company expects business to catch up in Q2 and Q3.
“And 18,000 sites add-on sites and got delayed a bit plus a few other customer shipments got a bit delayed because of inventory and clearances. So, so in a way, yes, this is a one-off quarter where things got pushed out more than anything else and we should be able to see the results, the catch-up of this uh business in Q2 and Q3”.
— Arnab Roy, COO & MD
Gross margins improved quarter-on-quarter, driven largely by changes in product or project mix, as previously discussed by the company.
“Gross margin level uh which uh if you see quarter on quarter there's been an improvement compared to the previous quarter as we've been talking about in in our past conversations and our calls as well uh I think a lot of our margin material margin level movement gets driven by the product mix or the project mix.”
— Sumit Dhingra, CFO
Receivables are largely tied to the recently completed BSNL 4G project. These will be collected over time based on project milestones, and the company expects them to decline gradually within the current financial year.
“Yeah see receivables I think uh there are two points to sort of highlight here. I think uh what you see as reported vis receivables are to a large extent or significantly of account of the BSNL 4G project that got executed over the past few quarters. In fact the last quarter was the uh completion of the project. Now those receivables are expected to be collected over a period of time based on certain milestones related to implementation of the project. So we should see that you know uh coming down over the next uh next few quarters within this financial year”
— Sumit Dhingra, CFO
The BSNL project deployed 100,000 sites, which is insufficient for a nationwide network. An expansion is expected, starting with 18,000 additional sites, and further growth will be needed, including a future 5G upgrade.
“BSNL business but as far as the network plans are concerned if you see they have deployed 100,000 sites which is not adequate for a pan national network. So there will be expansion in their network and the initial phase was they were planning to do you know 26,000 sites as an add-on and they have come with the initial offer for 18,000 sites but uh you know for a nationwide deployment they will definitely need more sites and then there is a 5G upgrade”
— Arnab Roy, COO & MD
The company aims to have 30–40% of its business come from international markets as soon as possible, considering it a key milestone.
“yeah so it's hard to hard to give a number but I would say um you know we certainly want to see you know um close to 30%-40% of our business is going to international as soon as possible that will be a good milestone”
— Arnab Roy, COO & MD
FMCG
AWL Agri Business | Mid Cap | FMCG
Adani Wilmar Limited is a prominent company in the FMCG food industry in India, offering a wide range of kitchen commodities like edible oils, wheat flours, rice, pulses, and sugar.
Last quarter was mixed. After a duty cut in May, edible oil prices fell—especially palm oil, which is now cheaper than soybean oil.
“..last quarter has been a mixed baggage. Um the edible oil prices have been steady and with the duty cut uh on 31st of May we have seen the edible oil prices come down. Uh particularly palm oil which was ruling high has come down. Today it is the cheapest oil as compared to soybean oil.”
— Angshu Mallick, MD & CEO
The company saw a 4% drop in edible oil volumes, mainly due to high palm oil prices in April and May. However, mustard oil performed well and helped offset some of the decline.
“In this uh the major volume drop has been in one is the edible oil. We have dropped by almost 4% mainly because of palm oil. The prices in April and May were very high and um we gained on mustard oil because that has done very well.”
— Angshu Mallick, MD & CEO
Rice volumes fell as last year’s G2G deals didn’t repeat. Regional rice was consolidated to cut costs, leading to better food segment margins.
“What we lost is the volume of rice because we had good G2G business last year in the same quarter that was not there this quarter. So obviously the volumes of rice came down. We also consolidated our regional rice so as to make it a little more profitable and hence you will find that the food basket has made better margins because of the consolidation in the food business.”
— Angshu Mallick, MD & CEO
Media
GTPL Hathaway | Micro Cap | Media & Entertainment
GTPL Hathway is a leading regional Multiple System Operator (MSO) in India, providing cable television and broadband services.
They are close to receiving all regulatory approvals for the HITS platform and plan to begin operations in the coming quarters.
“Regarding the HITS (Headend-in-the-Sky, a satellite-based platform for delivering cable TV services) platform, we are on the verge of obtaining all necessary regulatory approvals for operationalization of the platform. We are looking forward to starting the operations in the coming quarters”
— Piyush Pankaj, CSO
They see strong long-term growth potential, especially in broadband, which currently has only 10–12% market penetration. As a result, broadband is expected to have a higher CAGR over the decade.
“So, there is a large, large scope that it will go up for the decade, and it will go up in a very good way. Yes, the CAGR will be more in – the growth CAGR will be more in broadband as you know. As I say that it is just 10% to 12% penetrated in the market right now. So, yes, CAGR is going to be higher in the broadband side.”
— Piyush Pankaj, CSO
They are funding the HITS platform through internal accruals. Once it launches and gains subscribers, they plan to focus more on acquisitions and expect to maintain healthy margins around 25%.
“So yes, we are looking forward, because as we know that some of our capex is going to the Headend-in-the-Sky and the platform, because we are doing it through the internal accruals and all. So once the HITS platform will be launched, then we’ll start getting more subscriber base, and we’ll start putting more of the money towards acquisitions and all. We are looking forward that again, we are going to have healthy margin between 25% to 25%”
— Piyush Pankaj, CSO
Cable TV revenue has declined due to increased competition from OTT platforms, social media, and expanded content offerings. Additionally, free DTH is gaining ground in rural areas by offering more channels.
“De-growth in cable TV revenue… So this industry witnessed a higher share, during FY 24 – FY 25, after investment on expansion of different content providers in the industry, including index, the OTT players, social media sites, etc. Plus, we have seen that the free DTH is gaining the market in the rural side, because they have started providing more and more channels.”
— Piyush Pankaj, CSO
They shifted to an OTT aggregator to offer all content in one place, moving away from the Genie platform to streamline and modernize their service.
“And that’s why we wanted to go for the aggregator like an OTT player who is providing the whole thing together. And that’s why we have gone for the OTT play on the way. And replaced a lot of things on the Genie.”
— Piyush Pankaj, CSO
That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!
Quotes in this newsletter were curated by Apeksh & Kashish.
Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 😬 So, all the good stuff is human and mistakes are AI.
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