Acquisition to be funded by bridge loan facility of EUR 1.4 bn The investments (USD 1.6bn) in Nagarro is largely complementing and scaling the core business dynamics of PSYS, in terms of expanding new verticals and geographies, where PSYS has marginal presence. More importantly, the target entity shares a similar culture and service lines to PSYS' core business, which is a positive in our view. However, we believe there is a slight business risk which comes along with the vertical presence, barring 2-3 verticals, the near-term growth within other business units remains a challenge (mid-single-digit). PSYS is largely pivoted on the build side...
Astral Ltd has announced the demerger of its businesses into Astral Ltd. (Plumbing) and Astral Chemie (Adhesives, Paints & Specialty Chemicals), wherein management outlined the strategic rationale behind creating two focused entities with independent capital allocation, dedicated management teams and enhanced operational efficiency. Management highlighted that the restructuring will enable each business to pursue its own growth strategy while improving financial transparency through separate reporting from Q1FY27 onwards. The Plumbing business is expected to benefit from the upcoming CPVC backward integration, continued product additions and healthy...
Partnered with global industry experts to enhance volume. Execution of reserve growth plan remains critical. We attended VOGL's analyst meet, where management outlined its growth strategy following its demerger from the parent company. Management aims to increase reserves across its basins through ASP-led recovery, tight oil growth, gas exploration, offshore infill drilling, KG basin development, and new exploration opportunities. VOGL is now partnering with global players with deep domain expertise to enhance execution capabilities. The development plan is expected to be performance-incentive linked to...
We attended the analyst meet of Vedanta Power, which is currently among the top five private thermal power producers by installed capacity and is targeting a position among the top three players by FY33. The company plans to expand its coal-based capacity from 4.2GW in FY26 to 4.8GW in FY27E (+14% YoY) and further to 12GW by FY33, implying a CAGR 16% over FY27-33E but large part of growth is back ended. Of the existing 4.2GW operational portfolio, around 3GW (74%) is tied up under long-term contracts, while 1.1GW (26%) remains merchant exposure. The expansion (7.2GW) is expected to require equity investment of approximately INR230bn, which...
We recently interacted (in a group meeting) with the management of Sheela Foam Ltd (SFL). The management remains optimistic on the company's medium-term growth prospects, driven by market share gains, distribution expansion, e-commerce penetration, and the successful integration of Kurl-On. SFL has already realized ~INR1.9bn of the targeted INR2.5bn synergy benefits from Kurl-On acquisition, with the balance expected to be captured by H1FY27. SFL continues to aggressively expand its retail footprint, supported by the unorganized-to-organized transition (U2O,...
Focus remains on growing Namakkal & Tiruchirappalli CNG station expansion remains on track We recently hosted a roadshow with the management of IRM Energy Ltd (IRM), with discussions focused on MWP targets, royalty impact, operational performance, and other key business areas. Industrial demand in Fatehgarh Sahib (FS) has remained subdued in recent quarters, as certain industrial customers have shifted from natural gas to lower-cost alternative fuel such as coal. Management indicated that the recently filed PIL in Feb'26 seeking conversion of industries towards cleaner fuels such as gas...
We met with the management of Can Fin Homes (CANF) and visited branches in Bangalore to assess demand trends, underwriting practices and sourcing dynamics in Karnataka. Our interactions indicate strong growth in disbursals, largely driven by selfconstruction activity and company remains confident of meeting its FY27 target of Rs ~130 bn. We build a loan growth of 14% in FY27E factoring new branches/ manpower addition and e-khaata resolution giving boost to KA/TL run-rate. While larger NBFCs (LIC HF, Bajaj Housing Finance) are key competitors offering lower interest rates, CANF is focusing on direct marketing activities, builder tie-ups, branch expansion and faster TAT to drive growth. Expect FY27/ FY28E NIM to trend in-line with guidance at...
Our channel checks indicate Q1FY27 pre-sales across our coverage and non-coverage universe a mix bag reporting. Strong launch momentum was witnessed across companies like Prestige Estate (PEPL IN), Godrej Properties (GPL IN), and SOBHA Ltd (SOBHA IN). Overall, they launch GDV worth of ~INR 276bn in Q1FY27. Our channel checks indicate strong response across these new launches underscoring healthy absorption and EoI conversions in well-located projects, alongside continued pricing power in premium micro-markets. In case of PEPL, pre-sales driven by Golden Grove and a sold-out Gardenia Estate Phase 2, GPL pre-sales aided by Vanantara and Samaris...
Amber targets smartphone volumes of ~8-9mn units in Year 1 (FY28) and ~1415mn units in Year 2. Expects EBITDA margin in a range of 1.5-2.0%. in smartphone manufacturing segment. Amber Enterprises hosted a business update call to discuss its manufacturing collaboration agreement with OPPO Mobiles India, wherein management outlined its strategic entry into the smartphone manufacturing segment while highlighting its focus on strengthening backward integration and expanding its presence across the...
Accenture's (ACN: NYSE) Q3FY26 revenue growth came in below consensus estimates, while bookings were weaker than anticipated due to delayed closure of large deals amid disruptions caused by the Middle East conflict. Management highlighted a ~US$100mn revenue impact in Q3FY26 from the Middle East conflict, with continued disruption expected in Q4FY26, leading to a 100bps reduction in the upper end of its FY26 revenue growth guidance. The impact was also visible in bookings, particularly within Managed Services, where several large deals were deferred into FY27, highlighting elongated decision-making cycles. The company also...
Expect under recovery of Rs7/10/ltr for MS & HSD in Q1FY27 Restoration of excise duty remains a key risk After 3.5 months of one of the worst energy shocks in recent history, we see some positivity as the US-Iran ceasefire deal finally gets signed, although uncertainty remains, especially over the nuclear deal. Brent crude dropped below ~USD80/bbl, its lowest level since Mar'26, providing a positive respite for OMCs. Q1FY27 is expected to weigh sharply on profitability, impacting earnings for the full year. We expect an under-recovery of Rs7.0/ltr and Rs10/ltr in Q1FY27, after considering a Rs10/ltr excise...
West & South witnessed good demand East remained disrupted till mid may, post elections demand recovers Demand momentum remains healthy, which will enable paint companies to report midteens value growth in 1QFY27. Primary sales continue to outpace secondary demand on dealer stocking ahead of price hikes. Trade channels don't rule out some consumer deferment in repainting amid inflationary pressures, although no material signs are visible so far. Competitive intensity remains elevated, driven by sustained market share push by Birla Opus and JSW Akzo. We estimate Q1FY27 Sales/EBITDA/PAT for APNT & KNPL to grow by 16.5%/17.9%/18.2% & 13.5%/8.6%/1.3%...
Younger customers dominate the customer base ................................................................... 8 NSE dominates the cash market; BSE holds ~7% ..................................................................... 9 BSE has rapidly gained share in index options......................................................................... 10 Limited scale in stock options ........................................................................................................12 BSE share still negligible in index and stock futures ..............................................................12 Currency derivatives Strict environment hampers growth .............................................. 13 Commodity derivatives New-age products to drive growth.......................................... 14 Capital markets navigate a challenging regulatory environment ......................................................14...
We met the management of MAHLOG IN to understand the turnaround strategy of B2B express business. Since the change of guard at top-level, steps have been taken to optimize linehaul cost, improve lane utilization levels, expand network coverage, bolster feet-on-street, and improve service levels resulting in a tangible improvement in profitability profile. We believe MAHLOG IN is showing signs of turnaround as 1) B2B express business is on the verge of EBITDA break-even (loss of INR25mn in 4QFY26), 2) problem of unabsorbed white space is likely to get resolved by Sep-26 and 3) entry into new categories is likely to provide the necessary growth kicker to contract...
Indicators point to falling liquidity, rising CPI and repo hike Higher corporate/MSME share to affect PSBs/MidCs Rate hike to benefit PVBs due to higher retail/EBLR exposure RBI could hike the repo rate in Oct'26 as CPI, which is rising, may firm up to ~6% in Q3FY27. Tight liquidity over Dec'25 to May'26 led to increase in bulk TD rates by 60144bps. As G-Sec to NDTL ratio for system fell to 27% in Mar'26 (H2'25: 30%), RBI has limited headroom to shore up liquidity. While the FCNR scheme may cushion interest rates, system loan growth may decline to 12-13% YoY in Mar'27 from 15-16% in Mar'26. In a tighter credit cycle exposed to growth/asset quality shocks, PSBs/MidCs are more...
