🟩 Titagarh Rail Systems guided its Passenger Rail Systems segment to a minimum of 200 cars in FY27. FY26 delivered 63 passenger rail cars. The 200-car target represents over 3x year-on-year growth in a single year. Vande Bharat Sleeper deliveries, a BHEL JV for Vande Bharat Sleeper manufacturing, and the first aluminium metro coaches made entirely in India are the FY27 milestones.

🟩 IEX recorded a total electricity trade volume of 12,983 MU in May 2026, up 18.6% year-on-year. Day-Ahead Market volume rose 25% year-on-year in May. Average market clearing price stood at Rs.4.88 per unit. April 2026 volume was 12,341 MU, also up 16.6% year-on-year. Each successive month has accelerated versus the prior.

🟩 JBM Auto claims 49% electric bus market share in May 2026 with 157 e-bus registrations for the month. FY26 full-year market share was 24% with 1,282 registrations.

🟩 Bajel Projects was awarded an EHV substation EPC order worth Rs.300-400 crore from a domestic client

🟩 Shilpa Medicare acquired a 30.4% equity stake in Gate2Brain, a Swiss clinical-stage biotech developing brain cancer therapies.

🟥 Zydus Lifesciences received a USFDA warning letter for its Baddi formulation manufacturing facility in Himachal Pradesh. The letter cites purified talc used at Baddi that did not meet current USP requirements.

🟥 SEBI restrained Rajesh Mehta, Executive Chairman of Rajesh Exports, from buying, selling, or dealing in securities of Rajesh Exports. Rajesh Exports is India's largest gold processing, manufacturing, and export company by revenue, with significant domestic retail brand presence.

🟩 India's HSBC Composite PMI for May 2026 rose to 59.3, up from 58.1 in April 2026. Services PMI reached 59.8, the stronger of the two sub-indices, rising from 58.9 in April. Consecutive monthly readings above 58 confirm expansion in domestic services output and new business formation.

🟩 The Union Cabinet approved a Rs.10,000 crore ATF Price Stabilisation Fund. The fund is structured as interest-free advances to oil marketing companies (IOCL, BPCL, HPCL).

🟥 India tightened silver import regulations, mandating DGFT prior authorization for all 99.9% purity silver forms including grains and powder. India spent USD 12 billion on silver imports in FY26, up 150% year-on-year from USD 4.8 billion in FY25. Import tariffs on gold and silver were also raised to 15% from 6% earlier this year. Collectively designed to reduce bullion-driven pressure on India's foreign exchange reserves.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟢 Adani Ports handled 48.3 MMT of total cargo in May 2026, up 16% year-on-year over May 2025. Container volumes grew 17% YoY and liquid cargo surged 33% YoY, reflecting broad demand across trade categories. Rail logistics volumes fell 19% YoY to 48,170 TEUs, the 2nd consecutive monthly decline in that segment. Rail freight carries better per-unit margins than port handling. Sustained weakness there is the watch item for FY27 blended EBITDA.

🟢 Infosys expanded its strategic collaboration with DNB Bank (Norway) to modernize financial crime operations, covering fraud detection and anti-money laundering systems. On the same day the company unveiled an AI-powered editorial engine built with Handelsblatt Media Group in Germany. Both wins deepen Infosys’s AI services engagement with European financial services and media clients.

🟢 Tega Industries completed the acquisition of Molycop on June 1, 2026, at an enterprise value of approximately USD 1.5 billion. Tega holds 84.2% of the combined entity through its Singapore HoldCo. Post-acquisition, Tega becomes one of the world's largest grinding media suppliers for mining, serving 400+ mines across 40 countries.

🟢 Hero MotoCorp dispatched 570,068 units in May 2026, up 12.28% year-on-year over 507,701 units in May 2025. Scooter volumes more than doubled to 66,305 units, up 103.78% YoY, with scooter share rising to 11.63% of total sales. Exports surged 77.95% YoY to 33,284 units.

🟢 Transrail Lighting secured fresh orders worth ₹575 crore in T&D, civil construction, and pole businesses as of June 2, 2026. The wins include a 500 kV HVDC transmission line project for an undisclosed marquee customer. Total unexecuted order book stands at ₹16,361 crore as of March 31, 2026, up 12% year-on-year.

🟢 Alkem Laboratories launched a single-shot semaglutide pre-filled syringe at ₹350, the first such format commercially available in India. Over 50 generic semaglutide brands entered the market after Novo Nordisk’s Indian patent expired on March 21, 2026.

🟢 Delhivery incorporated a wholly owned subsidiary named Delhivery Fintech Distribution to expand its fintech operations. The subsidiary signals intent to develop embedded finance products for the SME merchants and sellers already within Delhivery's logistics network. Probable product areas include working capital financing, payment logistics, and insurance distribution. Logistics companies entering embedded fintech is a proven playbook in Southeast Asia. Execution risk in India is still high given existing NBFC and fintech competition.

🟢 India’s seafood exports touched a fresh all-time peak of USD 8.46 billion in FY26. India is the world’s third-largest seafood exporter. Strong demand from Southeast Asia and the US has driven the sustained run-up.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 Zee Entertainment Enterprises secured Indian broadcast and streaming rights to 39 FIFA events spanning 2026-2034, including the FIFA World Cup 2026/2030, and the FIFA Women’s World Cup 2027. Coverage begins June 11 across 4 newly launched Unite8 Sports channels in Hindi and English, plus ZEE5 streaming. FIFA had initially sought $100 million for India rights, later reduced to approximately $60 million. JioStar offered only $20 million.

🔴 India’s domestic air traffic fell 3.47% year-on-year in April 2026 to 1.38 crore passengers from 1.43 crore in April 2025, per latest DGCA data. IndiGo’s market share rose to 65% in April from 63.3% in March; Air India Group fell to 24.7% from 26.2%. International passenger volumes dropped 39.3% and international flights fell 37.2% year-on-year in April; weaker international traffic also reduces domestic connection demand. IndiGo is gaining share in a contracting market. Indicates structural cost advantages.

🟩 Marksans Pharma entered a definitive agreement to acquire 100% of QliniQ B.V. (Netherlands) for €7.5 million, pending completion conditions. QliniQ reported €9.35 million revenue and €1.01 million net profit for FY ended December 2025. It carries zero debt and posted a 41% revenue CAGR over FY2023-FY2025.

🟩 ASUS is scaling local laptop manufacturing with Dixon Technologies’ subsidiary Padget Electronics, targeting approximately 30% of India laptop sales from domestically produced units in FY2026-27 versus ~10% last year. The MOU between Padget Electronics and ASUS was already signed in September 2024. Dixon’s Tamil Nadu facility is now operational for HP, ASUS, and Lenovo. The acquisition gives Marksans front-end sales, marketing, distribution, EU GDP-licensed wholesale infrastructure, and direct access to insurer-led pharmaceutical tender channels in the Netherlands.

🟩 Kalpataru Projects International secured fresh orders worth approximately ₹2,002 Cr across three business segments. T&D wins cover the Middle East and the Nordics. Buildings & Factories secured repeat client orders. Railways reinforced its metro rail presence in India.

🟩 Godrej Properties acquired a 23.2-acre residential land parcel in the DMIC Integrated Industrial Township, Greater Noida, via e-auction conducted by DMIC Integrated Industrial Township Greater Noida Ltd. Revenue potential exceeds ₹7,000 Cr; the DMIC township hosts 750 acres of plug-and-play infrastructure in one of NCR’s fastest-growing corridors.

🟩 India’s ALMM List-II mandate came into force June 1, requiring all new RE projects to source solar PV modules using only locally manufactured cells approved under the ALMM framework. Websol Energy, Premier Energies, and Waaree Energies are among the key ALMM List-II cell manufacturers.

🟩 India's gross GST collections rose 3.2% year-on-year in May 2026 to ₹1,94,184 Cr from ₹1,88,172 Cr in May 2025.

🟩 India’s Index of Industrial Production for April 2026 rose 4.9% year-on-year under the new 2022-23 base year series. Manufacturing, comprising over 75% of IIP, grew 6.2%; electrical equipment rose 19.2%, motor vehicles 12.7%, capital goods 16%; infrastructure and construction goods grew over 9%. 17 of 23 manufacturing sub-groups recorded positive growth in April.

🟩 India’s final HSBC Manufacturing PMI for May 2026 came in at 55.0, a three-month high, ahead of the April actual reading of 54.7 and the May flash estimate of 54.3. New orders grew at the fastest pace since February. Domestic demand led growth. Export order expansion slowed to a three-month low.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 Asian Paints posted decorative volume growth of 12.4% year-on-year in Q4 FY26, ahead of management's stated guidance band of 8-10%. New product launches contributed approximately 17% of overall revenues in FY26; the company filed over 160 patents during the year.

🟩 LIC's CEO and MD R Doraiswamy has confirmed the corporation is actively evaluating entry into the fintech space, either organically or through a strategic investment in a fintech or insurtech player.

🟥 IndiGo management has flagged the possibility of airfare increases as higher fuel costs and Q4 FY26 losses squeeze airline margins.

🟥 Senco Gold recorded a 6% year-on-year volume decline in gold sales during FY26, driven by a 79% surge in average gold prices. Consumers switched toward silver and diamond as price-sensitive substitutes. Silver volumes jumped approximately 35% year-on-year in FY26, and diamond volumes grew approximately 9% year-on-year.

🟩 NSE will extend equity derivatives trading hours by 10 minutes, moving the normal market close from 3:30 PM to 3:40 PM with effect from August 3, 2026. The extension aligns F&O trading with the newly introduced Closing Auction Session in the equity cash segment, which will run from 3:15 PM to 3:35 PM.

🟩 The Union Finance Ministry has approved the ₹70,000 crore Project-75I submarine programme, clearing it to its final stage before contract signing. The project involves constructing 6 advanced conventional diesel-electric submarines for the Indian Navy under the Strategic Partnership Model. Mazagon Dock Shipbuilders will build the submarines at its Mumbai facility with Germany’s thyssenkrupp Marine Systems.

🟩 India has revised export levies on petrol, diesel, and aviation turbine fuel for the fortnight beginning June 1, 2026, cutting all three rates materially. Petrol export duty falls to ₹1.5/litre from ₹3/litre, diesel export duty falls to ₹13.5/litre from ₹16.5/litre, and ATF export duty falls to ₹9.5/litre from ₹16/litre.

🟥 West Asia conflict has disrupted India’s basmati rice export trade. Basmati exports account for a material share of India’s total rice shipments particularly to Iran, Saudi Arabia, and the UAE.

🟥 India’s foreign exchange reserves fell $7.5 billion to $681.38 billion for the week ended May 22, 2026, extending a sharp drawdown from the all-time high of $728.5 billion. The RBI has been selling dollars to slow the rupee’s depreciation.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

Every week I analyze a company’s fundamentals as part of my research work. My goal is to understand what drives their consistent performance. This is an educational post to understand the business and not a recommendation to buy the stock.

This week, Let’s explore the business & fundamentals of Gravita India Ltd. NSE: GRAVITA

Performance Chart

Quality Chart

Their Road to Consistency

1. Overview and Business Model

• Gravita operates across six recycling verticals: Lead, Aluminium, Plastic, Rubber, Copper, and Lithium.

• Lead recycling dominates the revenue mix, contributing approximately 87% of total sales volumes. Automotive battery replacement demand is predictable and non-discretionary.

• The business model earns a processing spread: cheap unorganized scrap goes in, premium customized industrial materials come out.

• Overseas revenues contributed 72% of FY26 total, with India at 28%. A Rajasthan-headquartered company with genuinely global revenue. The split is increasingly international.

• The company serves 400+ customers across 37 countries. Partners include blue-chip names such as Amara Raja, Exide, Tata Batteries, Glencore, Siemens, and Polycab.

2. Margins Locked In

• Every scrap purchase is placed only after a corresponding binding customer sales order is confirmed first. Zero unhedged inventory exists at any point. Risk is engineered out.

• 70-75% of raw material inventory is hedged back-to-back with customers at pricing tied to LME cash rates. Processing spreads are captured at the point of purchase.

• The remaining 25% of metal inventory is hedged directly on the London Metal Exchange through standard derivative contracts. Two layers of hedging leave no meaningful commodity risk in the business.

• In Q3 FY26, raw material costs rose sharply. Hedging gains of ₹9.8 crore offset higher scrap procurement expenses. EBITDA margins held stable.

• MCX empanelment for domestic aluminium hedging was secured, closing a structural vulnerability in India margin protection.

• Hedging gains are reported under other income. Derivative losses under other expenses. The accounting is clean, transparent, and trackable.

• EBITDA margins stayed between 9% and 10.5% across five consecutive fiscal years, through multiple commodity cycles.

• Smaller regional recyclers cannot access LME hedging platforms at their scale. This capability gap creates a durable operational moat.

3. Feedstock Network Edge

• Gravita runs 39 owned scrap yards and 2,200+ global touchpoints across five continents. Annual scrap collection exceeds 3,30,000 MT. No Indian recycler comes close to this procurement depth.

• Asia operations include 6 owned yards, 1,200+ touchpoints, and 1,92,250+ MT collected annually. India drives the bulk.

• Africa has 32 owned yards and 900+ touchpoints collecting 74,250+ MT. Plants sit close to scrap generators. African input costs are structurally low.

• Americas and Europe together cover 100+ touchpoints and collect 60,500+ MT annually. Developed-market scrap quality is often higher purity. Geographic diversity removes dependence on any single feedstock market.

• Domestic scrap sourcing rose from 43% in FY25 to 52% in Q2 FY26, driven by EPR and BWMR mandates. The India scrap cycle is formalizing.

• Scrap collected directly from OEMs and battery brands compresses the working capital cycle to 74 days. Intermediaries are bypassed entirely. Every node eliminated saves cost and accelerates cash conversion.

• Replicating 39 owned yards across five continents would take decades and hundreds of crores of investment. This network is a time-built, capital-intensive entry barrier.

• Total production capacity stands at 4.36 lakh MT as of May 2026. Capacity utilization is 70%, excluding recent additions. The feedstock pipeline is feeding the plant base at a healthy rate.

4. Value-Added Product Mix

• The product catalog includes customized lead alloys, lead sheets, red lead, TPO, aluminium alloys, plastic granules, copper sheets, brass cups, and copper foils. A full-spectrum product library across six materials.

• Value-added products were 42% of FY26 revenues and 36% in FY22. Product mix quality is the rising tide underneath the revenue numbers.

• OEM approvals for customized alloys require significant time and technical validation. Once granted, switching costs make customer relationships structurally sticky.

• Average lead EBITDA per tonne reached ₹23,043 in recent periods. Basic recyclers earn far less on the same tonne of scrap. They earn a customization premium.

• The plastic segment targets ₹10-11 per kilogram EBITDA as a steady-state margin. Per-unit margin targets guide production mix decisions. This pricing discipline shows up in the EBITDA consistency.

• African facilities added value-added processing in FY23. Cheap African scrap is now converted into premium alloys and exported to European and Middle Eastern customers.

• The company holds a healthy 60,000 MT+ orderbook as of May 2026. This forward visibility supports consistent quarterly delivery. Orderbook depth is a lead indicator.

5. Capital-Efficient Expansion

• Capital allocation rules are non-negotiable: payback below 3 years, ROIC above 25%, asset turns above 8x. Every project clears this filter before money is committed.

• FY26 capex was ₹372 crore: ₹200 crore for existing verticals, ₹172 crore for new ones.

• Mundra lead recycling capacity expanded by 80,300 MTPA to 1,45,100 MTPA using existing port-side infrastructure.

• The 6,000 MTPA Li-ion battery recycling plant at Mundra was commissioned in FY26 at a modest initial cost.

• Capacity grows from 4,19,959 MT in FY26 to 6,54,959 MT by FY29E in existing verticals alone. New verticals add another 1,46,600 MT. Total target: 8,00,000+ MTPA by FY29.

• Total capex through FY29 is approximately ₹755 crore, spread across four years. Internal cash generation covers this without external equity raises.

• ROIC held at 24% in FY26 despite heavy expansion activity.

6. Global Ops

• Operations span 14 plants across four continents: India, Sri Lanka, five African countries, Romania, and Dominican Republic. Overseas contributed 72% of FY26 revenues.

• Factories in Mozambique, Senegal, and Tanzania qualify for full corporate tax exemptions as LDC-classified operations. These tax savings flow directly to net margins.

• Approximately 80% of lead produced in LDC plants enters India duty-free, bypassing the standard 5% import tariff. Africa processes cheap scrap. India receives zero-duty refined metal.

• The Mundra port facility enables direct ship-to-plant raw material intake and finished product export. Port proximity lowers logistics cost per tonne of both inputs and outputs.

• African facilities export value-added formulations to European and Middle Eastern customers since FY23. The Africa-to-Europe value chain is high-margin arbitrage.

• Rubber recycling in Romania started in FY25, capturing EU-mandated demand for certified recycled polymers. Europe’s environmental regulation is Gravita’s growth catalyst.

• The expansion playbook is reproducible: start small, grow volumes, commission a plant near proven scrap sources. 9 overseas facilities were built this way across 25 years.

• 70% of total manufacturing capacity is located outside India. This scale of international presence reduces single-country regulatory, economic, and policy concentration risk.

7. Policy Creates Tailwind

• Battery Waste Management Rules legally bind brands like Exide, Amara Raja, and Tata Batteries to meet EPR targets only through authorized recyclers. Gravita is a primary authorized partner.

• GST eliminated the tax arbitrage that unregistered scrap traders used to undercut organized players. The informal cost advantage is permanently gone. Competition has narrowed to execution quality and feedstock access.

• The Vehicle Scrappage Policy mandates retirement of old commercial vehicles, releasing end-of-life batteries into formal collection channels. Policy feeds feedstock at scale. Volume flowing formally is a compounding benefit.

• State pollution control boards are systematically shutting non-compliant local smelters. Their scrap volumes redirect to authorized collection networks. Informal closures are Gravita’s feedstock gain.

• Domestic scrap sourcing rose from 43% in FY25 to 52% in Q2 FY26, driven directly by EPR and BWMR compliance pressures.

• ILA-accreditation (International Lead Association) is rare in India. Premium customers require it before placing orders. Certification acts as both an entry barrier and a demand qualifier.

• ESG-conscious global corporations need certified recycled materials to meet their own sustainability commitments. Gravita’s ISO 14001 and ISCC credentials make it the default preferred supplier.

8. New Verticals Unlocked

• Gravita acquired 99.44% stake in Rashtriya Metal Industries Limited (RMIL) for ₹561.84 crore in FY26. RMIL’s Sarigam, Gujarat plant has 31,200 MTPA copper and alloy capacity.

• RMIL reported ₹1,040 crore in revenue and ₹82 crore in EBITDA for FY26. The acquisition adds immediate P&L scale.

• Founded in 1946, RMIL serves established electrical and defence sector customers. These are high-barrier, loyalty-heavy relationships built over decades. Gravita acquires a customer book alongside a plant.

• The entire ₹561.84 crore acquisition was funded from Gravita’s liquid investment portfolio of approximately ₹737 crore.

• Copper scrap-to-alloy capability enables backward integration, reduces supplier dependence, and creates cross-selling opportunities using RMIL’s existing customer base.

• Lithium-ion battery recycling commenced at Mundra in FY26 with a 6,000 MTPA pilot plant. EV battery retirement volumes will peak in the late 2020s. First-mover market positioning, secured at low cost.

• Rubber recycling is now operational in both Romania (FY25) and India (FY22). Two geographies, growing regulated demand, and no serious Indian competitor with comparable scale.

• Steel recycling is the next listed vertical on the Vision 2030 roadmap. Each addition widens the scrap basket and diversifies revenue streams further.

9. Management and Governance

• CMD Rajat Agrawal founded Gravita in 1992 and has driven strategy for 33 consecutive years. Founder-led continuity over three decades is a compounding organizational asset.

• Average management industry experience exceeds 30 years. Average management association with Gravita is 15 years. This team has navigated multiple commodity cycles together.

• Four rounds of ESOPs have been issued. 100% of employees across the 3,500-person workforce are covered under incentive schemes.

• The senior team includes a standalone CEO, CFO, and three Executive Directors leading specific business lines. Leadership depth enables the delegation that global scale requires.

• The board maintains 50% independent directors. An ESG committee was created at the board level. No visible governance lag for a business operating in 14 countries.

• Zero complaints of ethical breaches or statutory non-compliance were recorded across all plants in FY26. BRSR core indicator assurance was completed.

• 15 consecutive years of dividend payouts reflect a capital return culture that has held through volatile periods.

10. Risks and Red Flags

• African operations in Mozambique, Senegal, and Tanzania carry political instability, currency volatility, and unpredictable regulatory risk. An FY25 disruption in Mozambique visibly dented overseas margins.

• In Q3 FY26, aluminium volumes fell 43% YoY as scrap aggregators withheld feedstock during a period of high primary metal prices. No active aluminium hedging mechanism existed at the time.

• The Labor Code implementation is expected to create ₹42 crore in total liability, with ₹35 crore being prior-period. Provisioned but not fully closed.

• The ₹561.84 crore RMIL acquisition is the largest in Gravita’s history. Integrating copper scrap sourcing, customer migration, and operational culture across geographies takes time.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. I do not recommend buying or selling stocks mentioned in this newsletter. I do not hold any positions in the stock discussed. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 Tata Motors EV bookings jumped 25-30% since the West Asia crisis began in March 2026.

4 retail fuel hikes in 10 days seems to have accelerated the consumer shift to EVs.

Monthly output of Tata Motors is ~10,000 EVs; company plans to scale to 15,000 in 3-4 months.

Tata Motors Market share slipped to ~40% in FY26. It was around 55% in FY25.

🟩 HPCL, BPCL, and IOC have seen daily losses ease after 3 staggered fuel hikes since May 15.

Before the hikes, combined under-recovery was running at ~₹1,000 crore/day.

First hike of ₹3/litre alone cut losses to ₹750 crore/day, a 25% reduction from the pre-hike level.

Cumulative hikes are ~₹4.8/litre on petrol and diesel. Losses still persist. Around ₹600.day.

🟩 India’s power transmission sector gets ₹9 trillion in government-committed capex through 2032.

Power Grid Corp alone is deploying ₹1.08 lakh crore in FY26-28.

India’s HVDC market is projected to double to $31B by 2035.

Beneficiaries: KEC International, CG Power, ABB India, BHEL, Siemens Energy.

🟥 India’s TV ad market share has fallen to 27% in FY26. Digital now commands 44%.

Zee Entertainment’s net profit fell 25% in the first nine months of FY26 versus the same period in FY25.

About 50 channel licenses have been surrendered over the past three years.

DTH subscriber base is declining.

🟩 VinFast’s Green SM has launched 1,000 electric cabs in Delhi-NCR.

Fleet target is 15,000 vehicles across Indian metros by December 2026.

Fares start at ₹8/km; driver partners are offered ₹40,000/month.

It enters the market filling the gap left by BluSmart’s suspension earlier this year.

🟥 India’s summer beverage season is being crimped by an aluminium can crunch.

Iran’s Hormuz blockade and BIS import certification norms tightened supply simultaneously from early 2026.

Beer makers face a shortfall of 120-130 million 500ml cans this season versus last year’s supply levels.

Domestic manufacturing capacity is running 20% below current market demand.

Hindalco emerges as the structural beneficiary as beverage companies are forced to prioritise domestic sourcing.

🟥 VFS Global is under scrutiny after EU inspection reports flagged data lapses, fake slots, and visa shopping.

Issues were documented across assessments by 11 EU member states between 2020 and 2025.

A 20-member EU delegation visited India specifically to address these shortcomings.

Over 1 million Indians now apply for Schengen visas annually through VFS, more than double the pre-pandemic level.

Stricter EU oversight of external service providers could structurally challenge VFS’s near-monopoly on Indian Schengen processing.

🟩 India’s gross FDI hit a record $94.53 billion in FY26, up 17% from $80.62 billion in FY25.

A new all-time high. Net FDI, however, was just $7.65 billion after repatriations and outbound investment.

India’s share of global FDI inflows has roughly doubled over the past decade.

A gross-to-net gap of $87 billion signals India attracts capital efficiently but struggles to retain it. A difficult problem to solve.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 JSW Steel commenced construction of its 13.2 MTPA greenfield integrated steel plant at Paradeep, Odisha, with an estimated investment of Rs 65,000 Cr in phases. The plant is built on land where South Korean steel giant Posco failed after two decades of resistance. India’s largest private steel capex is now formally underway.

🟩 HCLTech launched an autonomous finance platform powered by Google Cloud’s Gemini Enterprise, targeting end-to-end automation of financial operations for enterprises. Positions HCLTech in the agentic AI race for enterprise finance workflows.

🟩 Zydus Lifesciences received FDA Priority Review for the Saroglitazar NDA in primary biliary cholangitis, the first Indian NCE to reach this milestone. Saroglitazar is the only PPAR alpha/gamma dual agonist with positive Phase 3 data in PBC.

🟩 KEC International secured Rs 1,303 Cr in new orders across T&D, Civil, Renewables, and Cables in India and the Americas. Wins include 400/220 kV substation contracts in Southern India and a 150+ MW wind project in Western India. FY26 order book stood at Rs 36,267 Cr.

🟩 Ola Electric secured regulatory approval for a new electric scooter targeting India’s commercial mobility market, expanding beyond the consumer segment. Commercial two-wheeler EV penetration in India is near-zero. Ola moves first into a segment with a vast untapped fleet of delivery, logistics, and last-mile vehicles.

🟩 Ministry of Defence issued formal RFPs to three consortia for the AMCA fifth-generation stealth fighter prototype: L&T-BEL, Tata Advanced Systems, and Bharat Forge-BEML-Data Patterns. Five prototypes at Rs 15,000 Cr. First prototype target is early 2027. First flight during 2029.

🟥 Air India and IndiGo are cutting domestic flights from June 1 for three months. Air India reducing capacity by up to 22%, IndiGo by 5-7%. ATF costs have risen from Rs 80,000 to over Rs 1 lakh per kilolitre on Iran conflict. Both airlines control 90%+ of domestic capacity. Airfares expected to rise.

🟥 IGL raised Delhi CNG prices by Rs 2/kg on Tuesday, the fourth hike in 15 days, taking rates to Rs 83.09/kg. Cumulative rise since May 15 has been Rs 6/kg. MGL has separately cut commercial subsidies in Mumbai.

🟥 Hyundai Motor will raise vehicle prices by up to Rs 12,800 per car depending on model and variant, effective June 1, 2026.

Companies with good results.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 Adani Green Energy commissions 3.37 GWh BESS at Khavda, world’s largest outside China, completed in 10 months. Plans 10+ GWh in FY27, scaling to 50 GWh over five years. India’s grid storage buildout just shifted to a different scale.

🟩 KEC International commences elastomeric cable and e-beam irradiation production in Q2 FY27. Debt levels expected to normalise further. Two specialty cable verticals launching in one quarter. Cables are the structural margin upside story for KEC in FY27.

🟩 Tata Elxsi launched VITEL, an AI-powered material intelligence solution for med-tech, built on its Viridium platform. AI for material selection and compliance cycles in medical device design. Adds product depth to Tata Elxsi’s med-tech AI positioning.

🔴 AXISCADES transfers its heavy engineering, energy, and automotive Engineering Services practice to Akkodis for $30.63 million. Deal proceeds fund the Devanahalli Atmanirbhar Complex and Missile Complex. Company pivots toward aerospace manufacturing.

🟩 MobiKwik received RBI in-principle approval for its Payment Aggregator Physical license. Targets 10x merchant business growth by FY28.

🟩 EKI Energy Services received a Category IV Inter-State Electricity Trading Licence from CERC for 25 years. Category IV permits trading of 1,000+ MW blocks. EKI moves into the large-ticket, long-tenure end of India’s power trading market.

🟩 Balu Forge Industries secured its maiden aerospace order from US-based Alpha Aircraft Systems. Advance payment received to commence production. First aerospace entry from an auto-forging base. Higher precision and margins define this segment vs their core business.

🟩 Venus Pipes commissioned 4,200 MTPA seamless tubes and 6,000 MTPA mother hollow pipes, alongside fittings manufacturing. Seamless tubes target oil, gas, and precision segments at higher ASPs.

🟩 SKM Egg Products is investing Rs 400 Cr to scale to 24 lakh layer birds, targeting 5x egg output, with feed mill and biogas additions. One of India’s few listed egg processors.

🟩 SEBI Chairman Tuhin Kanta Pandey said household savings flowing into capital markets are at an all-time high.

🟩 EV insurance in India jumped 670% as smaller cities drive policy purchases. PB Fintech is a direct beneficiary.

🔴 US credit card balances surged to $1.3 trillion at 22% average interest rates, the worst consumer stress levels since 2008. Companies with significant US revenue dependence face growing demand-side risk.

🔴 Taiwan surpassed India to rank 5th globally in market cap. Population of just 2.3 Cr. The surge driven almost entirely by AI and semiconductor stocks. Indian market has broader sector depth. Taiwan market is more concentrated.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 BEL secured ₹608 Cr in fresh orders covering radar systems, coastal surveillance, avionics, seekers, jammers, and medical electronics. BEL already has a ₹74,000 Cr orderbook. This adds to FY27 revenue visibility and spans across Army, Navy, and Air Force procurement lines.

🟥 Sun Pharma says it will not give margin guidance as the West Asia conflict is expected to increase logistics and shipping costs in coming quarters. West Asia generates meaningful revenue for Sun Pharma.

🟩 Hero MotoCorp is targeting double-digit volume growth in FY27, with e-scooters identified as the primary growth driver. India’s premium EV two-wheeler market is growing fast. Hero’s shift in emphasis signals a competitive response to Ola Electric, TVS and Bajaj Chetak gaining ground in the segment.

🟩 Kalpataru signed a cluster redevelopment project in Ashok Nagar, Kandivali East covering five societies across 2.8 acres with a GDV of ₹1,250 Cr. Kandivali East apartments averaged ₹23,312 per sq ft in Q4 FY26, up 24% YoY. Kalpataru already has six delivered projects in the same locality.

🟩 Oil India targets 100 wells in FY27, up from 74 wells in FY26, a 35% jump in drilling intensity.

🟩 SEBI is proposing flexible options strike price rules that would require exchanges to add new strikes rapidly during volatile market conditions. The move is aimed at improving trading continuity during sharp swings.

🟥 RBI has released a draft framework to overhaul rules for digital wallets (technically called Prepaid Payment Instruments or PPIs). Here is what is being proposed.

• Credit card loading banned. You will no longer be able to top up your Paytm or PhonePe wallet using a credit card.

• Cash loading cap reduces sharply. Current limit is ₹50,000 per month. Proposed limit is ₹10,000. This affects users who use wallets for remittances.

• Cross-border wallet transactions banned. International payments through wallets would not be allowed.

Mobile wallets are a core payments infrastructure layer in India. Regulatory tightening here affects companies like Paytm, PhonePe etc.

🟥 Indian IT firms collectively saw H-1B approvals fall nearly 40% YoY in FY26 to 11,041 across the top 6 companies. TCS was the biggest loser. Infosys was the only firm to see a rise.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟩 Lupin received Chinese regulatory approval for Oseltamivir Phosphate Oral Suspension, an antiviral for influenza treatment. China is a high-volume antiviral market. This adds a new geographic revenue stream to Lupin's branded generic portfolio.

🟥 Swiggy’s bid to become an Indian Owned and Controlled Company (IOCC) failed at 72.36% shareholder support, short of the 75% threshold. IOCC status eases FDI inventory restrictions for Instamart. Without it, Swiggy’s Q-commerce expansion stays constrained.

🟥 H-1B registrations for the FY2027 US visa cap dropped 38.5% to 211,600, down from 343,981, as the US shifted to a wage-weighted lottery. Low-wage sponsorships are being phased out. Mid-tier Indian IT firms with onsite-heavy delivery face rising visa costs.

🟩 LIC's Bancassurance and Alternate Channels crossed ₹5,000 crore in FY26 premium, growing 45% YoY. PAT rose 19.25% to ₹57,419 crore. Board declared a 1:1 bonus issue and ₹10/share dividend.

🟩 MTAR Technologies received international purchase orders worth ₹467 crore from an existing client. Execution splits equally across March and June 2027. Second major international order in 8 days, after ₹2,279 crore won on May 14. Stock is up 507% from its August 2025 low.

🟩 Apollo Hospitals guided Apollo HealthTech demerger and listing by Q4 FY27, targeting annualized revenue of ₹25,000 crore at listing. Shareholders receive 195.2 HealthTech shares per 100 Apollo shares.

🟩 PNC Infra received Letters of Acceptance from NHAI for two HAM highway projects in Uttar Pradesh totaling ₹3,483 crore. Both are 4-lane stretches on NH-927 with 24-month execution timelines. Order value is ~64% of the company's current market cap.

🟩 VA Wabag secured a medium-value DBO order for a Delhi wastewater treatment plant, valued in the ₹100-250 crore range. DBO contracts generate long-tenure O&M revenues beyond construction margins, improving earnings quality for project developers.

🟩 Transformers & Rectifiers India won a ₹228 crore order from GETCO for transformers and reactors, with delivery by August 2028. GETCO is Gujarat's state transmission utility. Renewable integration is driving steady transformer demand from state utilities.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

Every week I analyze a company’s fundamentals as part of my research work. My goal is to understand what drives their consistent performance. This is an educational post to understand the business and not a recommendation to buy the stock.

This week, Let’s explore the business & fundamentals of CMS Info Systems Ltd. NSE: CMSINFO

Performance Chart

Quality Chart

Their Road to Consistency

1. Overview and Business Model

CMS Info Systems is the invisible infrastructure layer of India’s physical financial system. It manages ATM replenishment, retail cash automation, and banking technology end-to-end. Revenue grew from ₹1,306 crore in FY21 to ₹2,425 crore in FY25, a 17% CAGR. Profits compounded faster at 22%.

• The 3 segments above drive the business.

• CMS earns through recurring service fees charged to banks and retailers. Fees cover cash pickups, ATM replenishment, machine maintenance, and software subscriptions. Revenue is annuity-based by architecture.

• Their core clients are India’s largest banks. SBI, ICICI Bank, and HDFC Bank. Insurance companies, e-commerce firms, airlines, and retail chains are growing rapidly in the mix.

• CMS covers 97% of India’s districts. No competitor has assembled a comparable national footprint. Geographic depth is the single hardest competitive asset to replicate in this industry.

• Net profit grew from ₹151 crore in FY21 to ₹373 crore in FY25, a 2.5x increase. Revenue grew 1.86x in the same period.

• Card Personalization produces over 10 million payment cards annually from a certified Chennai facility. India has over 105 Crore cards in circulation. Every new bank account opened is a potential card order.

• Once a bank integrates CMS into its ATM network or a retailer into its cash cycle, migrating away is operationally disruptive. Stickiness is engineered into every client relationship.

2. Unmatched Physical Reach

• As of Jun 2025, CMS managed 153,000 business touchpoints, up 9% year-over-year from 137,000. The network kept expanding despite industry debates about cash’s relevance these days.

• The company runs 240+ branches nationwide as regional hubs for cash processing and fleet maintenance. Local presence enables faster incident response for bank clients. In cash logistics, proximity builds reliability. Reliability wins contracts.

• CMS vans travel approximately 4 lakh kilometers every single day across India (all vans combined). That equals circling Earth ten times daily. Operational intensity at this scale is extraordinary. Difficult to replicate too.

• The fleet comprised 4,500+ cash vans in FY24, equipped with GPS tracking and security systems. Building this fleet requires significant capital and time.

• CMS connects over 12,000 bank branches for cash-in-transit services. These connections form the backbone of bulk currency movement in Indian banking. Removing CMS from this network would be deeply disruptive for clients.

• The company handles ₹14 lakh crore in currency annually, a meaningful share of India’s total currency in circulation.

• CMS employs over 25,000 people and third-party personnel trained in specialized logistics and security protocols.

• The company holds 42% of India’s organized cash logistics market. Every new touchpoint added to the network increases route density, lowering cost per stop across the board. Interesting economics.

3. Route Density Economics

• CMS vans travel in dense clusters, minimizing road time between pickups. Their Fuel costs grew only 3.6% in FY24 despite significantly higher activity levels. Density absorbs inflation that would hurt smaller, thinner operators.

• Proprietary route planning technology ensures 4,500+ vans take optimal daily paths. This is algorithm-driven logistics dispatch, not manual scheduling.

• One van can service multiple bank clients in a single trip due to high stop density. Fixed travel costs are shared across more stops. Cost per pickup falls as volume rises.

• Adding retail pickup points adjacent to existing ATM routes generates incremental revenue at near-zero marginal cost. Standard logistics routes become high-margin service lanes.

• The company maintained a 15%+ PAT margin in Q3 FY26 despite wage hikes and inflationary pressures. Route efficiency absorbed cost increases that would have squeezed smaller and less dense operators significantly.

4. Annuity Contract Stability

• In January 2026, SBI awarded CMS a ₹1,000 crore integrated cash solutions contract for 5,000 ATMs. The deal spans 10 years. Decade-long revenue visibility from a single client.

• HDFC Bank awarded a ₹400 crore ATM managed services contract in May 2026 covering 6,000 ATMs for five years. This adds approximately ₹80 crore in steady annual revenue. Large private banks are outsourcing infrastructure aggressively.

• New order wins in FY24 reached a record ₹1,850 crore, nearly double the prior year’s total. These are multi-year contracts that ramp and compound over their execution periods.

• The Managed Services order book stood at approximately ₹1,400 crore as of December 2025. This provides revenue visibility extending four to seven years forward.

• ATM managed services contracts bundle currency forecasting, site maintenance, and software together. This comprehensive scope makes switching providers costly and operationally disruptive.

• ICICI Bank awarded CMS the ALGO MVS software mandate in FY26, a multi-year software-linked deal. Software contracts are stickier than logistics contracts.

• CMS has maintained a high renewal rate with top banking clients over the last decade.

5. Managed Services Pivot

• CMS jumped from #5 to #3 in managed services by displacing technology-focused firms, not just logistics players. The integrated logistics-plus-technology model is a product pure-play tech firms cannot easily replicate.

• The company manages 39,000 ATMs through its Managed Services portfolio as of March 2026. In addition, 68,000 machines are covered through standard cash logistics. Together, that is more than one in three ATMs across India.

• The ATM-as-a-Service model makes CMS a single point of accountability for the entire ATM operation. Security, software, cash, and maintenance are bundled into one vendor relationship. Banks prefer one vendor over five.

• Technology-led services within Managed Services are growing faster than traditional cash handling. This signals higher lifetime client value and structurally better margin profiles.

• The FSS ATM managed services business was acquired in March 2026 for ₹115 crore, adding 8,000 ATMs and new banking relationships.

6. AIoT Technology Moat

• HAWKAI prevented over 900 burglaries through proactive monitoring in FY25 alone. This translates into measurable savings on insurance and incident losses for bank clients.

• AIoT Remote Monitoring generated ₹100 crore in annual revenue in FY24. Management expects its share to grow from 5% to 8% of total revenue within three years. A high-margin revenue stream with a clear growth trajectory forming.

• CMS acquired Securens Systems in FY26 for approximately ₹80 crore, gaining 100% stake in a focused AIoT leader. The combined entity is double the size of its closest competitor in this space.

• CMS operates centralized command centers monitoring 25,000+ live sites using AI to prioritize alerts. Human staff handle escalations. AI handles volume. This combination is both scalable and cost-efficient.

• The company is executing an AI-enabled surveillance project for a leading bank covering all its branches. This moves CMS beyond ATM monitoring into total branch security.

• The ALGO OTC solution prevented 19,000 errors in the cash cycle for one major bank. CMS becomes the accuracy and auditability layer embedded inside banking operations.

7. Retail Ecosystem Expansion

• A leading quick commerce chain uses Retail 360 across 1,500 locations to digitize daily cash. Automated cash handling removes a manual bottleneck in fast-paced operations.

• CMS provides API-integrated cash reconciliation across 1,000 stores for a major eyewear retailer. Real-time data updates eliminate manual discrepancies at the store level.

• CMS provides 24x7 cash collection for a large airline at 40 airport sites. The airline receives early credit for collected cash, improving daily liquidity positions. A niche use case with reliable and recurring demand.

• Less than one-third of India’s 550,000+ organized retail touchpoints currently outsource cash management. The untapped opportunity is substantial. CMS is early in penetrating a market growing alongside India’s consumption story.

• Retail cash management revenue grew 11.2% YoY to ₹1,474 crore in FY24.

8. Disciplined M&A Playbook

• Hemabh Technology was acquired in March 2022 to enter AI-based remote monitoring and video analytics. This early move positioned CMS as a technology company before the industry broadly recognized the category.

• The Securens Systems deal in FY26 was valued at approximately 10x FY25 EBITDA. Post-synergy estimates drop the effective multiple to approximately 4x. A highly accretive acquisition if execution goes to plan.

• FSS’s ATM managed services business was acquired in March 2026 for up to ₹115 crore. It added 8,000 ATMs and new banking client relationships.

• The Securus acquisition in Q3 FY26 for ₹70 crore further strengthened the technology portfolio. Three acquisitions completed in FY26.

• Cumulative external equity raised across the company’s entire history is less than ₹200 crore.

• The company’s market share in cash logistics reached 42% by FY25 through organic growth and acquisitions combined.

9. Capital Allocation Discipline

• CMS has paid dividends for six consecutive years. The payout ratio reached 42% of PAT in FY25.

• Operating cash flow to EBITDA conversion was 75% in FY24. Most earnings become actual cash.

• CMS plans capex of over ₹400 crore in FY26, entirely from internal cash flows.

• In Q3 FY26, management pruned unprofitable retail network points rather than protect revenue optics.

• Revenue growth guidance of 15% to 19% for FY25 was paired with explicit emphasis on high-quality service revenue.

10. Risks and Red Flags

• CMS reported 28 embezzlement cases in FY25, with losses of ₹21.72 crore, nearly double the ₹12.05 crore loss from FY24. Only ₹3.20 crore was recovered. The ₹21.72 crore embezzlement loss represents less than 0.01% of the ₹14 lakh crore handled annually. Proportionally small, but the rising trend is the actual concern. Embezzlement is a financial crime where a person entrusted with money or assets legally steals them for personal use.

• Contingent liabilities stood at ₹604 crore as of the latest reported period, significantly exceeding FY25 net profit of ₹373 crore. Tax disputes form the bulk of this exposure. Any adverse court ruling could cause sudden material cash outflow.

• Subsidiary Securitrans India received a ₹19.34 crore service tax demand plus penalties in April 2024. Authorities alleged suppression of facts to evade payment.

• India’s total ATM count is declining. If this contraction continues, the core Cash Logistics segment faces a structural volume headwind.

• UPI transactions have crossed 14 billion per month. ATM transaction growth is slowing. The long-term direction of physical cash usage is genuinely uncertain.

• In Q1 FY26, payment delays from certain Managed Service Providers caused a temporary spike in receivables. CMS is exposed to the financial health of its partner chain, not only its direct banking clients.

• Hitachi Payment Services recently acquired a competitor and now offers a full-service suite directly competing with CMS in managed services. A well-capitalized rival with a broad platform is a more serious threat.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. I do not recommend buying or selling stocks mentioned in this newsletter. I do not hold any positions in the stock discussed. Securities market investments carry market risks. Kindly review all related documents before investing.

🟥 Maruti Suzuki hikes prices up to ₹30,000 from June 2026. Second increase this year as input costs stay elevated. Budget models (Alto, WagonR) face the steepest percentage increase. Cost pass-through over volume signals margin-first thinking.

🟩 Grasim’s Birla Opus targets ₹10,000 Cr in revenue and the No. 2 position in decorative paints by FY27. FY26 was its first full year. Asian Paints holds roughly 50% market share.

🟩 Page Industries reports 10.8% volume growth in FY26, its highest in three years. Jockey’s India distributor had two years of inventory normalization post-COVID. Double-digit volumes returning to a premium brand signals genuine demand recovery.

🟩 Jubilant Foodworks targets 230-250 new stores in FY27 and reiterates 5-7% LFL growth. Q1 FY27 expected to beat Q4 FY26. Domino’s India franchisee. 5,000+ store target.

🟩 AurionPro Solutions wins a $33 million, 3-year US fintech deal. Largest-ever deal in the region, expanding an existing client into AI, cloud, and DevOps.

🟩 Force Motors targets 12-15% growth. Mumbai Police adopted 100 Urbania vans, prompting other government departments to evaluate the model. Government fleet adoption turns a commercial vehicle into a recurring institutional procurement cycle.

🟩 WeWork India CEO says FY27 is the company’s strongest-ever opening position, with deep demand and operating leverage. India is the profitable exception in the global WeWork story.

🟩 India’s May HSBC Flash PMI: Services 58.9, Manufacturing 54.3, Composite 58.1. India stays in expansion for the 58th consecutive month. But export orders are at a 19-month low. Domestic demand holds.

🟥 India’s leather and footwear exports fell 1.6% YoY to $4.75 Bn in FY26, hit by US tariffs and West Asia disruptions. India is the world’s second-largest leather exporter.

🟥 India faces elevated memory prices for 12-18 months as AI redirects DRAM supply away from smartphones. The three dominant suppliers cannot ramp fast enough. Indian smartphone prices rose 20-25% in 6 months. Budget smartphone models bear the brunt.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟢 Balaji Amines commences commercial production at its 1,00,000 TPA Dimethyl Ether plant in Solapur, becoming India’s first DME manufacturer. BIS has approved 20% DME blending with LPG, and this capacity is estimated to add approximately 15% to current annual revenues.

🟢 Eris Lifescience guides FY27 revenue growth at 18% to 20%. This is well ahead of India’s pharma industry average of 9 to 10%, driven by chronic therapy launches and integration gains from the Biocon Biologics asset acquisition.

🟢 Star Health targets ₹24,000 Cr in gross written premium for FY27 with 65% sourced from smaller cities, and launches its ‘Value Plus’ health plan. Tier-2 and tier-3 health insurance penetration is currently growing at over twice the metro rate, supporting this geographic pivot.

🟢 Mankind Pharma guides for double-digit top-line growth and EBITDA margins of 25.5% to 26.5% in FY27. The margin band is among the strongest in mid-cap pharma, reflecting Mankind’s acute therapy dominance and low-cost domestic manufacturing base.

🟢 Shaily Engineering Plastics receives regulatory approval and launches a combination drug product incorporating its ShailyPen Neo device technology. The wearable drug delivery segment is a high-barrier, high-value niche with growing global pharma outsourcing potential for contract device manufacturers.

🟢 HDFC Bank approves 2-day work-from-home for business and corporate functions. India’s largest private bank normalizing hybrid work is a bellwether signal for the financial services sector, where return-to-office mandates have been stricter than in other industries.

🟢 Pace Digitek wins a ₹264.65 Cr contract from BSNL to design, build, and maintain the BharatNet Middle Mile Network in the Sikkim Telecom Circle over 1,095 days. BharatNet 3.0 carries a ₹1.39 lakh crore national outlay, giving Pace Digitek multi-year recurring revenue visibility.

🔴 The Gold Jewellery Association reports sharp demand distress, with buyer footfall declining significantly over the last 10 days.

🔴 Bollywood workers face pay cuts of 50 to 60% as fewer movie and OTT projects receive approval. A string of box office failures and tighter OTT content budgets have sharply reduced production activity across the entertainment sector.

🔴 Indonesia announces curbs on palm oil commodity exports. India imports approximately 60% of its palm oil from Indonesia, and supply restrictions are likely to push edible oil prices higher in the near term.

🟢 NCDEX launches weather derivatives on Mumbai rain, making it India’s first standardized weather derivative contract. This creates a new asset class for hedging rainfall-linked business risk across agriculture, infrastructure, and event-dependent industries.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟢 Bharat Forge signs an MoU with the Andhra Pradesh government to establish India’s first private-sector Marine Gas Turbine manufacturing facility at Visakhapatnam, expected to create approximately 750 jobs. India currently imports all naval gas turbines, making this a import-substitution play.

🟢 Zydus Lifesciences guides for high-teen revenue growth in FY27, with India formulations up 14% YoY at ₹1,753 crore. Separately, the board approves a buyback of up to 95,65,217 shares at ₹1,150 per share via tender offer, aggregating ₹1,100 crore. This is Zydus’ third buyback in three years, reflecting consistent surplus capital generation as US generics and biosimilar launches scale.

🟢 Max Healthcare completes acquisition of approximately 58.28% equity stake in Kalinga Hospital, Bhubaneswar for approximately ₹297.97 crore, financed via External Commercial Borrowings of up to ₹300 crore. This marks Max Healthcare’s first footprint in Odisha, a market where private hospital bed penetration remains significantly below the national average.

🟢 Transformers and Rectifiers India (TARIL) secures a ₹175 crore domestic order from Bhanwariya Infra Projects for manufacturing transformers and reactors, with delivery by March 2028. This adds to an order book that now exceeds ₹5,005 crore, against FY26 revenue of ₹2,395 crore standalone.

🟢 NIBE successfully completes test-firing of its Suryastra Universal Rocket Launcher System.

🔴 ITC and Godfrey Phillips hike prices on select pocket pack brands following the 30 to 40% excise duty increase effective February 2026. Pocket Marlboro is now priced at ₹85 from ₹70 and Gold Flake Superstar at ₹79 from ₹70. These might affect cigarette volumes.

🔴 The Indian Rupee hits a fresh all-time low of approximately 96.38 per USD, extending its decline to over 2.2% this week alone. Brent near $107, persistent FII outflows, and higher US yields are some key factors.

🔴 India is on Ebola alert after WHO declared a global health emergency. No cases are confirmed in India so far but airport health screening is being tightened at major international gateways.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🔴 Eicher Motors received Andhra Pradesh Government approval for a 215.7-acre greenfield plant at TADA as existing motorcycle capacity operates at near-full utilization of 14.6 lakh units annually. Through its VECV arm, Eicher will additionally deploy up to 1,000 Eicher Pro-X electric trucks for Amazon India’s Amazon Now quick-commerce operations by 2028, its most significant fleet EV commitment to date.

🟢 Airtel warned that India’s telecom pricing model is under structural stress as ARPU growth begins to stall. Airtel’s ARPU of approximately ₹245 in Q3 FY26 leaves limited tariff hike capacity without subscriber churn risk, making revenue growth increasingly dependent on subscriber addition rather than deeper monetization.

🟢 Neogen Chemicals has commissioned 200 MTPA of lithium electrolyte salt capacity with 1,300 MTPA under trial production, and management targets ₹875 to 950 Cr revenue in FY27. FY27 is positioned as a transformative year as battery chemicals scale from near zero to a meaningful revenue contributor within the overall portfolio.

🟢 Paytm launched Pocket Money, enabling UPI payments for teenagers without a bank account, with parental real-time spend monitoring and limit controls. India has over 250 million teenagers, and this product expands Paytm’s addressable user base well beyond its existing adult payments and credit customer pool.

🟢 Deccan Gold Mines discovered significant Nickel, Copper, and Platinum Group Elements mineralisation at its Bhalukona project in Chhattisgarh. PGEs command 10x to 50x the unit price of base metals and are critical for catalytic converters and hydrogen fuel cells.

🟢 Uno Minda announced total FY27 capex of ₹1,750 Cr with ₹1,100 Cr directed toward growth projects and guided for 11% EBITDA margins. Growth capex at 63% of total outlay reflects an aggressive push to capture rising demand across EV components, passive safety systems, and alloy wheels.

🔴 Amber Enterprises expects temporary margin pressure of 50 to 100 bps on a consolidated basis per its concall.

🟢 Marine Electricals won orders worth ₹208.72 Cr from Adani Infra and Udupi Cochin Shipyard for power distribution and alarm monitoring systems, to be executed over 12 to 24 months.

🟢 GR Infraprojects’ wholly owned subsidiary executed a concession agreement with NHAI for a ₹1,453.57 Cr highway upgradation project to be completed in 910 days.

🟢 Pace Digitek secured a ₹709.9 Cr BESS EPC and 12-year O&M contract from NLC India Renewables for a 250 MW / 500 MWh project across three Tamil Nadu substations. Back-to-back large utility wins take FY27 YTD energy segment order inflows to ₹1,412 Cr, positioning Pace among India’s most active utility-scale BESS EPC contractors.

🟢 Bondada Engineering received orders from Adani Group worth ₹469.52 Cr for a 250 MW BOS package to be executed in 8 months. Cumulative executed capacity now reaches 975 MW, placing the company within striking distance of the 1 GW milestone this fiscal year.

🟢 Commerce Minister Piyush Goyal set a $1 trillion goods and services export target for FY27 and a $2 trillion target over the next five years. Reaching $1 trillion from FY26’s estimated base implies approximately 15 percent growth, making export-oriented sectors including pharma, engineering goods, and textiles key structural beneficiaries.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

🟢 HAL expects Tejas MK2 deliveries to commence by August-September 2026 and targets EBITDA margins of 30-31% in FY27. The 110-aircraft IAF Tejas MK2 order is valued at approximately ₹67,000 Cr, anchoring HAL’s revenue visibility well into this decade.

🟢 Data Patterns reaffirmed a 20-25% revenue growth commitment, driven by a defence electronics pipeline aligned with expanding local content requirements under the updated DPP framework. The company has zero civilian segment exposure, making it a pure-play defence technology instrument.

🟢 Solar Industries raised FY27 revenue guidance to ₹14,000 Cr (42% growth versus FY26’s ₹9,838 Cr), with defence revenue guided at ₹4,500 Cr against the FY26 guidance of ₹3,000 Cr. The company enters FY27 with a ₹21,300 Cr order book and ₹2,050 Cr of planned capex.

🟢 Adani Ports unit will acquire a 51% stake in Meridian Transportes Marítimos S.A., adding to its international maritime presence. The acquisition continues Adani’s strategy of building a global port and logistics network that reduces concentration risk on Indian operations.

🟢 ITC Hotels acquired 100% of Zuri Hotels and Resorts (The Zuri Kumarakom, Kerala) at an enterprise value of ₹205 Cr on a cash-free, debt-free basis, marking its first owned resort in Kerala. The company added 33 properties with 3,300 keys in FY26 and targets 250 hotels with 22,000 keys by 2031.

🟢 Hindustan Copper executed an NDA with Chile’s CODELCO and engaged a deal advisor for entry into Chilean copper mining. CODELCO is the world’s largest copper producer; a successful JV would give India’s sole listed copper miner access to world-class Tier-1 reserves outside its constrained domestic base.

🟢 RBL Bank received Ministry of Finance approval for Emirates NBD to acquire up to 74% stake for approximately $3 billion, India’s largest-ever FDI in the financial services sector. The deal remains subject to final RBI clearance. Once completed, RBL will be reclassified as a foreign bank in subsidiary mode.

🟢 Delhivery deployed Autonomous Mobile Robots at its Bhiwandi Mega Gateway, with expansion to all mega gateways planned in FY27. The rollout targets lower in-facility sorting costs and higher throughput per square foot across its network.

🔴 IndusInd Bank faces an intensified SEBI investigation into insider trading, where former officials allegedly traded the bank’s own shares using unpublished information about its derivative portfolio losses, which were disclosed publicly in March 2025. SEBI has collected 1.7 TB of email evidence; former Deputy CEO Arun Khurana and former CEO Sumant Kathpalia have been directed to disgorge approximately ₹20 Cr.

🟢 Skipper Ltd secured ₹1,265 Cr in domestic and international T&D orders spanning 765 kV and 400 kV line projects in India and tower supply contracts in Latin American markets. The new inflows take the order book to approximately ₹9,767 Cr, with a ₹33,000 Cr PGCIL bidding pipeline providing strong multi-year runway.

🟢 WPIL Ltd’s South African subsidiary PCI Africa was awarded a bulk water supply project as part of a consortium worth approximately 7.58 billion Rand. At current exchange rates this translates to roughly ₹3,300 Cr, a significant international water infrastructure win for a relatively underfollowed India-listed stock.

🟢 Welspun Corp secured a ₹700 Cr LSAW pipes order from its US facility, taking the global order book to ₹25,350 Cr for execution in FY27 and FY28. The US manufacturing base positions Welspun as a direct beneficiary of China-plus-one shifts in global oil and gas pipeline procurement.

🟢 UAE committed $5 billion in investments to India during PM Modi’s Abu Dhabi visit, broken down as $3 billion by Emirates NBD into RBL Bank, $1 billion by ADIA with NIIF into priority infrastructure, and $1 billion by IHC into Samman Capital. These are the highest-value bilateral investment commitments ever announced from the UAE to India.

🔴 FMCG companies are beginning price hikes as the edible oil complex rises, driven by Indonesian palm oil supply disruptions. Indonesia accounts for over 55% of global palm oil output. A sustained supply crunch will structurally pressure gross margins for HUL, ITC Foods, and Adani Wilmar through the second half of FY27.

🔴 Indraprastha Gas raised CNG prices by ₹2 per kg in Delhi-NCR from May 15, driven by higher input gas costs and USD appreciation. Piped natural gas prices were kept unchanged. CNG prices in Delhi now stand at ₹79.09 per kg, with auto-rickshaw and taxi operators bearing the primary cost impact.

🟢 Maharashtra cut ATF VAT from 18% to 7%, an 11-percentage-point reduction effective May 15 until November 14, 2026, providing targeted relief to airlines. Maharashtra handles approximately 75 million passengers annually.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

Every week I analyze a company’s fundamentals as part of my research work. My goal is to understand what drives their consistent performance. This is an educational post to understand the business and not a recommendation to buy the stock.

This week, Let’s explore the business & fundamentals of Piccadily Agro Industries Ltd (NSE: PICCADIL)

Performance Chart

Quality Chart

Their Road to Consistency

1. Overview and Business Model

• The company was founded in 1994 and listed on BSE the same year. It began as a pure sugar unit. Nobody, including the founders, likely imagined it would end up competing with Scotch whisky.

• The first strategic pivot came in 2007. Management added a 78 KLPD distillery next to the sugar mill. Ethanol and Extra Neutral Alcohol were the original targets.

• A 12 KLPD malt plant was installed in 2010. Barrels were procured for spirit maturation.

• By 2014, multiple IMFL companies were buying Piccadily’s matured malt for their own products. External validation of liquid quality confirmed what management already suspected.

• Indri single malt launched officially in 2022. It grew from 15,000 cases in FY23 to over 100,000 cases in FY24. A 6x jump in two years.

• The portfolio today has four brands: Indri (single malt), Camikara (aged pure cane rum), Cashmir (vodka, launched May 2025), and Whistler (blended whisky). Each targets a distinct premium consumer segment.

• FY26 total income reached ₹1,143 Cr versus ₹893 Cr in FY25, a 28% jump. Distillery contributed ₹902 Cr. Sugar contributed ₹233 Cr. The mix is moving further toward spirits every year.

• Total distillery capacity today is 450 KLPD across Indri (220 KLPD ENA/ethanol + 30 KLPD malt) and Chhattisgarh (200 KLPD). This puts the company among India’s largest independent distillery operators.

• The revenue mix in FY22 was 52% sugar and just 2% IMFL. By FY26, sugar fell to 20.5% and IMFL rose to 44.2%. It is a complete structural rebuild of the business.

• The company sells in 29 Indian states, 29 countries, and 30 duty-free outlets globally. From a small Haryana sugar mill to a global spirits brand in under three decades.

2. Indri Brand Power

• Indri sold 2.04 million bottles (1,70,000 nine-liter cases) in calendar year 2024. It outsold both Glenfiddich and Glenlivet in the Indian market that year.

• Indri Diwali Collector’s Edition won the World’s Best Whisky Award in both 2023 and 2025.

• The IWSR ranked Indri the number one malt whisky in India in 2025. It beat global and domestic heavyweights by a clear margin. International ranking bodies rarely crown emerging-market brands.

• Indri is currently among the top 15 single malt brands globally. Management targets top 10 within one to two years and top 5 within three to five years.

• The City Series was designed as travel retail exclusives. Bengaluru came first, then Dubai and Mumbai. Each release is a collector’s item tied to a city’s identity. Scarcity and storytelling driving premium pricing.

• Indri entered 79 Tesco stores in the UK in 2024, targeting mainstream British consumers, not just niche whisky enthusiasts.

• The brand is available in 30+ US states with Costco and Total Wine as retail partners. Costco is the world’s largest spirits retailer.

• Indri grew 16% in FY26 due to supply constraints. Management confirmed capacity has now been resolved.

3. Climate Maturation Advantage

• The sub-tropical climate causes barrels to expand in summer heat and contract in winter cold far more violently than in Scotland. Each cycle, pulls flavor compounds from the wood faster. This is free production acceleration.

• Indri Trini uses three distinct cask types simultaneously: ex-bourbon American oak, ex-French wine casks, and Pedro Ximenez sherry casks. Triple-cask maturation was an Indian first. The flavor complexity this creates is distinctive.

• Barrel inventory stood at 83,800 units as of March 2026, up from 45,000 in FY24. The company is scaling to 100,000 barrels by end of FY27.

• Six-row barley sourced directly from Rajasthan and Haryana farmers provides a higher protein content than four-row barley used by most Scotch distilleries. Grain selection shapes the liquid’s flavor character.

• Piccadily holds the largest independent malt warehousing capacity in India as of 2025. Over 10 million liters of spirit currently ages across its warehouses.

• Camikara aged rum matures 8 to 12 years in American oak with no added sugar or artificial color.

• 12 new warehouses were added to the Indri site recently to handle the growing barrel count.

• No bulk malt is sold to any third party. Every barrel ages exclusively for own-brand bottling. This discipline ensures the company captures the full retail margin of every aged liter it produces.

4. Rapid Capacity Expansion

• The Indri distillery expansion was completed in October 2025. ENA and ethanol capacity grew from 78 KLPD to 220 KLPD. Malt capacity grew from 12 KLPD to 30 KLPD. Both expansions were on schedule and on budget.

• The Chhattisgarh greenfield distillery in Mahasamund was commissioned in December 2025 with 200 KLPD capacity. Its first commercial sales began in May 2026. Management expects ₹300 Cr to ₹400 Cr in FY27 revenue from this plant alone.

• Total distillery capacity now stands at 450 KLPD: 30 KLPD malt and 420 KLPD ENA/ethanol. This positions Piccadily as one of the largest independent distillery operators in India. Scale creates both cost and negotiation power.

• The Indri expansion alone should generate ₹250 Cr to ₹300 Cr in additional FY27 revenue. Combine that with Chhattisgarh’s ₹300 Cr to ₹400 Cr. Together, that is ₹550 Cr to ₹700 Cr of incremental revenue in a single year.

• FY27 capex guidance is only ₹25 Cr to ₹30 Cr. After three years of heavy investment, the company enters a low-capex, high-monetization phase. Cash generation should accelerate significantly from FY27 onward.

• The Scotland distillery at Portavadie spans 58 acres. Land is purchased, licenses are in place, and UK government approvals are received. Construction is underway. This will produce Scotch-style single malt.

• Barrel storage is scaling from 83,800 barrels to 100,000 barrels by FY27. The incremental capex is modest.

• Management has guided 3x to 4x revenue growth over the next three to four years. The capacity to achieve this is now physically in place. Execution and distribution are the only things left.

5. Portfolio Mix Shift

• As pointed out earlier Sugar was 52% of revenue in FY22. It is 20.5% in FY26. IMFL was 2% in FY22. It is 44.2% in FY26.

• Distillery EBITDA margin was 31.5% in FY26, up 130 basis points from FY25. IMFL alone operates at 45% to 50% EBITDA margins. Sugar’s EBITDA margin was negative 4.6%. The contrast explains the profitability trend.

• Overall EBITDA margin held at 23.4% in both FY25 and FY26, despite a 28% jump in revenue.

• Branded IMFL revenue grew from ₹150 Cr in Q4 FY25 to ₹250 Cr in Q4 FY26, a 67% jump YoY.

• Whistler blended whisky grew 98% in volume in FY26 after a full rebranding. Whistler at ₹1,500 to ₹2,500 price points opens a different mass-premium consumer segment.

• IMFL’s share of distillery revenue was 38.1% in Q4 FY26 versus 26.8% in Q4 FY25. Even within the distillery segment, the premium IMFL slice keeps growing quarter on quarter.

• FY27 guidance: 60% to 70% total Alco-Bev revenue growth, primarily driven by IMFL. In absolute terms, the company is guiding toward ₹1,400 Cr to ₹1,500 Cr in Alco-Bev revenue.

• New premium and luxury product launches are planned across existing and new categories in FY27. Management explicitly said these launches are not included in the 60% to 70% guidance.

6. Expanding Distribution Network

• The company now operates across 29 Indian states and union territories including the CSD channel. Moving from 20 states in FY25 to 29 in FY26 is meaningful. Each new state adds a compounding revenue layer.

• On-trade distribution through bars, restaurants, and hotels grew over 50% in FY26. On-trade visibility among younger consumers drives at-home demand.

• IMFL revenue mix: CSD and paramilitary 30%, exports 25%, and domestic trade 45%. Management targets 50% export share within three to five years. At 45% to 50% EBITDA margins in IMFL, the export shift would accelerate profitability.

• Indri is available in most A-category retail outlets across operating states. A-category outlets are the only relevant shelf for a single malt priced above ₹3,000 to ₹4,000.

• The brand entered 79 Tesco stores across the UK in 2024. Tesco reaches mainstream British shoppers, not niche whisky collectors. Mainstream shelf in Tesco signals the brand has crossed from specialist to accessible premium globally.

• Indri is now in 30+ US states with Costco and Total Wine as retail partners. Costco is the world’s largest spirits retailer. Total Wine is the largest specialty retailer. Both in one year of serious US push. Impressive.

• Travel retail now spans 30 duty-free outlets globally. The City Series expressions were designed specifically for this channel. High-net-worth travelers buying ₹10,000 to ₹30,000 bottles are the highest-margin IMFL customers available.

• Management is deploying experiential marketing: curated whisky dinners, tasting events, and trade education sessions in key global cities. These generate brand advocacy from industry influencers at far lower cost than traditional advertising.

• The distribution target is 30,000+ domestic retail outlets and a 50% export revenue mix in three to five years. Both are directionally consistent with the brand’s current trajectory.

7. Demerger Value Unlock

• KPMG is the demerger advisor. After SEBI clearance, the scheme goes to NCLT for court approval. Management expects the entire process to be completed within FY27. A clear roadmap for a structurally cleaner balance sheet.

• Sugar contributed 20.5% of total revenue in FY26 but posted a negative 4.6% EBITDA margin. Removing sugar eliminates a structural margin drag.

• Pure-play consumer premium companies trade at significantly higher valuation multiples than diversified conglomerates. Post-demerger, institutional investors focused on alco-bev can enter the Piccadily story with a clean single-business lens.

• Sugar is cyclical and heavily regulated. Cane prices are set by the central government. Selling prices are state-controlled. Separating sugar makes the remaining spirits business far more predictable in its earnings profile.

• Post-demerger, 100% of management bandwidth, human capital, and financial resources will focus on Indri, Camikara, Cashmir, and Whistler.

• The 1:9 share swap ensures no forced exit for any investor. Shareholders retain upside in both the high-growth spirits entity and the sugar company being given its own independent listed identity. Value preserved both ways.

• Management described the demerger as separating a traditional heritage business to give it its own identity. This framing shows intent to list and run the sugar business as a serious standalone.

• The timing of the demerger is deliberate. Spirits now dominate revenue. Executing the demerger at this inflection point maximizes the valuation extraction for both entities.

• Inorganic acquisitions are also being explored, primarily on the brand side of Alco-Bev. Management confirmed they are in discussions.

8. Integrated Supply Chain and Management

• Alok Kumar Singh was appointed VP Manufacturing and Supply Chain in FY26, joining from Pernod Ricard. Pernod manages the most complex premium spirits operations in the world. That experience now inside Piccadily is significant.

• M.S. Venkatesh joined as CHRO with prior experience at Hindustan Unilever, Coca-Cola, Bharti Airtel, and Caterpillar. A cross-sector FMCG and manufacturing background for a company scaling toward thousands of employees rapidly.

• SAP-based ERP systems were deployed across operations in 2025. With 85,000 aging barrels across two states and 25,000+ retail touchpoints, data integrity is non-negotiable. This system lays the governance foundation for global scale.

• The co-generation plants run on bagasse from the sugar unit, generating captive electricity for the entire Indri manufacturing complex. This self-generated power reduces utility costs and grid dependence.

• A PET bottle manufacturing unit in Telangana produces bottles for country liquor and blended brands. Owning packaging for high-volume products gives direct cost control and quality consistency at the lower end of the product portfolio.

• Barley is sourced directly from farmers in Rajasthan and Haryana. Six-row barley from this region has higher protein content than the four-row variety used by most Scotch distilleries. Procurement specificity creates a raw material moat.

• The Chhattisgarh plant was sited near grain sources to minimize logistics costs. The state offers regulatory incentives for distillery investment. Location decisions at greenfield stage compound into cost advantages for decades.

• The integrated model from grain sourcing to barrel maturation to bottling to distribution gives full quality visibility at every step. Indri’s 104 awards across three years show what that full-chain control produces consistently.

• Management guidance for absolute EBITDA growth tracks the 60% to 70% revenue growth guidance. The claim is that EBITDA margins will either hold or improve 50 bps as premium product mix deepens.

9. Risks and Red Flags

• Promoter background is the most discussed concern. Venod Sharma, linked to the promoter family, is a politically connected Haryana figure. His son Manu Sharma was convicted in the Jessica Lal murder case. Reputational association risk is real even if operationally separate.

• Short-term borrowings jumped 132% in FY26, driven by higher IMFL debtor balances and ₹100 Cr in additional malt inventory. This is growth-linked, not distress-linked. But cash cycle stretch at high-growth rates warrants ongoing monitoring.

• DSO (Days Sales Outstanding) across the IMFL business is 80 to 90 days. Government and CSD channels pay slowly. As IMFL revenue scales toward ₹800 Cr to ₹1,000 Cr in FY27, debtors will grow proportionally before improving.

• Glass and packaging material prices rose 40% to 50% due to supply disruptions linked to the Iran conflict. Current vendor arrangements provide short-term cover. Medium-term inflationary risk on packaging costs remains open.

• Indri grew only 16% in FY26, well below the 25% to 30% market expectation. Management cited supply constraints, now resolved. But the question of whether demand can absorb much faster growth at ₹4,000+ price points deserves continued scrutiny.

• The sugar demerger requires SEBI and NCLT approvals. Indian regulatory timelines are difficult to predict. Any delay pushes the pure-play valuation re-rating story into FY28. Investors pricing this in as FY27 catalyst should be careful.

• A trademark dispute with Radico Khaitan over the vodka name Kashmyr resulted in an injunction in Piccadily’s favor. Future disputes could similarly distract leadership.

• The Scotland distillery is still under construction with commissioning expected in FY27 or FY28. Any cost overruns or UK regulatory complications could delay the international positioning narrative.

That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

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That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

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That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.

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That’s it for today.

Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes. We do not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.