Or why trading more to recover losses only makes things worse?

Or how Props and FIIs make a profit to the tune of ₹60,000 crore in the same market that you are trading while your account keeps losing?

These are not random outcomes. There is one concept that connects all the 3 questions above.

Once you understand it, you will never look at your trades, your backtest, or your capital the same way again.

If you prefer watching over reading, I have covered this article in much more detail in the video below. Else, keep reading.

Let us look at some data before getting into the concept.

Who Is Actually Making Money in F&O Trading?

SEBI released the following data in 2025.

Proprietary traders earned ₹33,037 crore gross in FY24. FPIs earned ₹27,965 crore. Individuals and others collectively lost ₹61,212 crore in the same year.

This is not one bad year for retail traders. It has happened every time in the past, and it will happen every time in the future also. This is the structural reality of the market.

The natural question is: What exactly are props and FPIs doing that retail traders are not?

Almost All of It Comes from Algos

96% of proprietary trader profits in FY24 came from algo trading. For FPIs, that number was 97%. Non-algo profits were marginal for both categories.

This tells you something important. The edge these institutions hold is not gut feel or discretionary trading. It is systematic, algorithmic execution at a very large scale.

The next logical question is: What are these algos actually doing?

Are these Algos Directional or Non-Directional?

There are ~1,000 prop and FII entities in total. On the other side, there are crores of retail traders.

Each retail trader averages ₹11,824 per transaction and makes roughly 875 transactions per year (Source: NSE & SEBI)

Think about what this means structurally.

Retail traders collectively generate few crores of transactions every single day. Props and FPIs are mostly the counterparty to these crores of transactions. That is, they are on the opposite side.

Effectively, Props are making small profits per trade across crores of trades. This business model is only possible with a non-directional strategy.

A directional strategy, on the other hand, works by taking fewer, larger bets. You hold them long enough for the thesis to play out. Profit per trade is high. Trade count is low. So, Props are not doing this.

The Prop model is the exact opposite. High trade count. Very small profit per trade.

That structure can only mean one thing. That is Market Making.

What are Market Making Algos

Market makers do not predict where the market is going. They are not long or short based on a view.

They sit on both sides of the order book continuously. They place limit orders to buy and sell simultaneously.

Look at the market depth of the Nifty options below. All these orders that you see are limit orders and are mostly placed by the market makers (Props).

Every time a retail traders sends a market order, a market maker’s (PROP) limit order is on the other side of that transaction.

They enable your transaction. In return, they collect a small fee on every single trade.

To understand this better, you need to know the concept of bid ask spread.

What Is Bid-Ask Spread?

Open any options contract. I have loaded the NIFTY 23,300 call option below. You will see two prices in the market depth. Bid and Offer.

The bid is the highest price a buyer is willing to pay.

The ask (or offer) is the lowest price a seller is willing to accept.

The bid is ₹239.2 and the ask is ₹239.7 as in the above pic.

If you buy at market price, you pay ₹239.7. If you immediately sell at market price, you receive ₹239.2. That gap of ₹0.50 is the fee you paid to the market maker. That is, you paid it to the PROP Traders.

That spread as a percentage is almost 0.21% of the Premium. That is a hidden cost that you dont see.

It does not sound like much. But every single trade you take, on both the buy and the sell, carries this cost. It adds up fast. I will show you a detailed calculation later in the article.

This is one of the reasons why Props are making thousands of crores every year. Almost guaranteed.

Here is a simple way to understand this.

Have you gone to Airport Money Exchange Counter?

USD/INR trades around ₹93.9 in the open market. Walk up to an airport forex counter and ask to buy $1. You will pay around ₹95. Come back from your trip and try to sell that dollar back. You will get only ₹89.

You buy above the market rate. You sell below the market rate. The ₹6 difference is pocketed by the exchange counter. That is their bid-ask spread.

Now ask yourself: would you go to that counter 10 times in a day to transact dollars?

Of course not. One transaction costs you ₹6. Ten transactions cost you ₹60.

You would go once when you need dollars and once when you return. That is it.

But in the markets, most traders do exactly this. They believe more trades means more opportunity. It does not.

More trades means more spread paid to market makers, more brokerage paid to brokers, and more taxes paid to the government.

Market Making Is Everywhere

Market making is not unique to Indian options. It happens across every asset class and every market in the world. Equities, bonds, currencies, commodities.

Wherever there is a buyer and a seller, there is almost always a market maker sitting in between, collecting the spread on every transaction.

It is also one of the most consistently profitable trading activities in the world. Not because market makers are smarter. But because the structure of the market guarantees them a fee on every single trade, regardless of direction.

This is what you need to understand before you trade any instrument. Is market making prevalent in this instrument? If the answer is yes, then making consistent intraday profits becomes extremely difficult.

You are essentially fighting an entity that gets paid whether the market goes up or down, and gets paid every single time you transact. Props are doing exactly this.

In liquid options like Nifty and BankNifty, market making activity is very high. The market maker’s edge compounds across millions of trades every day.

This is also the reason why scalping, intraday options buying and overtrading in Nifty and BankNifty are almost always losing strategies for retail traders.

Every time you enter and exit quickly, you are paying the spread twice. Once on the entry and once on the exit. Do this ten times a day and the spread alone will erase whatever small profit your strategy was trying to capture.

Why Your Profitable Strategy still loses

Whenever I backtest or forward test a strategy, I simulate the total market cost of the strategy using the calculator below. You can access the calculator here.

On the left-hand side of the calculator, the inputs, and on the right-hand side, you will see the output. You can enter the details of your strategy on the left-hand side to get an estimate of the total market cost.

Assume you have ₹2 lakh capital.

You risk 1% per day, which is ₹2,000. Your risk-reward is 2:1, so you target ₹4,000 on winning days. You win 60% of the days. Your strategy deploys 10 trades per day.

I have entered the details above in the calculator, and I got the total market costs on the right hand side.

On paper, the gross profit of this strategy is ₹4 lakh per year. The strategy looks excellent before the costs.

Let us now deduct the costs. Here is the actual cost structure of this strategy:

• Regulatory costs (brokerage, STT, transaction charges, GST, stamp duty) come to approximately ₹1,59,000 per year. Most traders know this and account for it in their brokerage calculator.

• Bid-ask spread at 0.21% per trade comes to approximately ₹75,000 per year. Most traders never account for this.

• Slippage at 0.5% per trade comes to approximately ₹1,87,000 per year. This is the difference between the price you expect and the price you actually get. We will cover slippage in detail separately in another article. For now, just understand that there will always be slippage.

Total market cost is ₹4,21,000.

Your gross profit was ₹4,00,000. Your total costs are ₹4,21,000. The strategy is now a loss-making one.

An extraordinary strategy on paper becomes a loss-making strategy in practice. The reason is not bad entries or bad exits. The reason is bid-ask spread, slippage, and cost.

Why ₹1-2 Lakh Capital Is Not Enough for Trading

With ₹1-2 lakh trading capital, the math simply does not work.

The fixed costs alone are significant relative to the capital base. Regulatory costs, bid-ask spread, and slippage eat into a disproportionately large portion of your profits.

If you trade with ₹1-2 lakh in F&O, you will not be profitable even if your strategy is genuinely good. The market structure does not allow it.

Action Points for you

You should implement these things immediately.

1. Every backtest you do hides bid-ask spread, slippage, and regulatory costs. Always add these three before concluding that a strategy is profitable. After accounting for all three, very few strategies retain a genuine edge.

2. ₹1-2 lakh capital for F&O trading is not enough. Some good strategies start returning real profits only above ₹5 Lakh. That too, you should first invest for the long term and then pledge those holdings and only trade in F&O.

3. More trades is not more opportunity. Every additional trade is a donation to market makers, to brokers, and to the government. Traders who survive long enough take fewer trades. Aim for a maximum of one to two adjustments per day. If your strategy is still in a loss after two adjustments, close the trade for the day. Avoid scalping, intraday options buying, and over-trading.

4. Avoid F&O trading till you build at least 15 lakhs in capital. Once you build a capital of 15 lakhs, you can use F&O for hedging and income generation. You can do both Hedging and Income Generation by pledging your investments. Do not trade in F&O for speculation. The only people who win are the Brokers, Props, Exchange, SEBI and the Government.

A Mental Model for Survival

Most traders spend their time changing their rules. A new indicator. A new entry signal. A new stop loss level.

The ones who survive understand something deeper. There is a structure to markets that cannot be changed. And there are principles that must never be broken.

Think of it in 3 layers.

1. Structure includes bid-ask spread, taxes, and slippage. These costs exist. They will always exist. In trading, you should always know who is on the other side. Understanding structure tells you the minimum edge your strategy needs to have before it can be profitable.

2. Principles include risk management and position sizing. These must not be broken. Never ever.

3. Rules include your charts, your indicators, your specific entry and exit criteria. These can be different for different people. And they keep changing.

The ones who survive understand the structure and never break the principles.

The Devil is in the Details

The bid-ask spread is not a small detail. It is the mechanism through which bulk of the ₹61,000 crore flows from retail traders to market makers (Props) every single year.

Understanding it does not mean you should stop trading. It means you should trade less, trade smart, and always know the true cost of every transaction before you enter a position.

In the upcoming weeks, I will be covering more topics around market structure and other key areas.

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.

This week, Let’s explore the business & fundamentals of Shakti Pumps (India) Ltd

Performance Chart

Quality Chart

Their Road to Consistency

1. Overview & Business Model

Shakti Pumps started in 1982 as a small pump workshop in Pithampur, Madhya Pradesh. Today it is India’s largest solar pump manufacturer. Revenue grew from ₹930 crore in FY21 to ₹2,516 crore in FY25, a 37% 5-year CAGR. The company holds 25-30% of PM-KUSUM solar pump installations and exports to 100+ countries.

• Founded in 1982 by Manohar Lal Patidar, a farmer from village Rangwasa near Indore. His son Dinesh Patidar took charge in 1986.

• In 1996, Shakti launched India’s first 100% stainless steel submersible pumps, solving the corrosion problem that plagued rural irrigation hardware.

• The solar pump pivot came in 2013, 6 years before PM-KUSUM scheme launched.

• Today the company makes 1,200+ product variants:

  • submersible pumps from 3” to 12”,

  • solar systems from 1 HP to 100 HP,

  • sewage pumps, and

  • industrial pumps.

• Two manufacturing complexes operate in Pithampur. The SEZ unit serves export production, established in 2007. The DTA unit runs multiple specialized sub-plants. Pithampur is the operational spine of the business.

• Government projects account for 77% of FY25 revenue, up from 58% in FY21. PM-KUSUM scheme, that we will talk about later, has completely reshaped the revenue mix. This concentration is both the engine and the risk.

• Shakti operates through 5 subsidiaries. Shakti Pumps USA LLC, Shakti Pumps FZE Dubai, Shakti Pumps Bangladesh, Shakti Energy Solutions, and Shakti EV Mobility.

• The company recently opened 100+ exclusive retail outlets in India as part of its cash sales push.

2. PM-KUSUM Growth Engine

PM-KUSUM is the single largest external catalyst in Shakti’s business. Launched in March 2019 with ₹34,422 crore in central government support, it targets 49 lakh solar pump installations. Shakti holds 25-30% of installations. The order book stands at ₹2,100 crore. And roughly 29 lakh pumps still remain to be installed nationally. The runway is long.

• PM-KUSUM Component B funds standalone off-grid solar agricultural pumps. The central government covers 30%, states contribute 30%, and farmers pay 10-40%.

• A 5 HP solar pump costs ₹2.5 to ₹4 lakh before subsidies. The farmer pays ₹65,000 to ₹1 lakh after support. Annual diesel savings are ₹40,000 to ₹80,000. Payback arrives in 1-3 years.

• Component B has achieved 9.75 lakh installations against a 14 lakh target as of Q3 FY26. FY25 alone saw a 4.2x surge in annual installations. Execution is accelerating.

• Roughly 29 lakh pumps remain to be installed nationally across both Component B and C.

• FY27 budget allocation is ₹5,000 crore, nearly double the ₹2,600 crore in FY26. PM-KUSUM 2.0 is being planned with an estimated ₹50,000 crore outlay.

• Shakti’s state footprint spans Maharashtra, MP, UP, Rajasthan, Haryana, Jharkhand, and now Karnataka.

• The Karnataka order in January 2026 was worth ₹654 crore for 16,780 solar pumps. It was Shakti’s maiden entry into southern India.

• Dec 2025 alone brought ₹1,152 crore in fresh orders. The order book stood at ₹2,100 crore as of Q3 FY26.

• Combined with Component C, around 20.4 lakh farmers have benefited so far against a 49 lakh target. The scheme is still only 50% complete. There is more growth ahead.

3. Manufacturing Depth

Shakti is the only Indian solar pump manufacturer producing every critical component in-house: pumps, motors, VFDs, solar controllers, and mounting structures. This vertical integration creates an advantageous cost structure. In PM-KUSUM tenders where price is decisive, this integration is Shakti’s most durable competitive weapon.

• Most Indian solar pump companies are system aggregators buying components from multiple suppliers. Shakti manufactures the entire system internally.

• The Electronics and Control division launched in 2018 to produce VFDs and inverters in-house. These are the most technically complex and the most expensive components in a solar pump system.

• In-house VFD production improves margins by 3-4% over third-party procurement. At ₹2,516 crore in revenue, even 3% margin improvement adds roughly ₹75 crore to absolute profits.

• Annual production capacity covers 5 lakh pumps and motors, 4 lakh VFDs, and 2 lakh solar mounting structures.

• Material costs as a percentage of revenue dropped from 67.1% in 9M FY25 to 62.3% in 9M FY26. Cost reduction due to vertical integration is reflecting in the income statement.

• Robotic assembly lines and Mazak-imported machinery run production. Automation reduces dependence on skilled labor and improves output consistency. Less variability in process means fewer defects.

• Government tenders are won on price. Shakti’s integrated cost base gives it a structural pricing advantage over CRI Pumps, Lubi Solar, and others relying on third-party component supply.

• The integration logic is now extending to solar panels. The 2.2 GW solar cell manufacturing plant will bring module production in-house by Q1 FY27. Panels are 40-50% of total pump system cost.

4. Research & Patents

Shakti holds 16 granted patents, with 14 more applications still pending. 7 patents were granted in 2024 alone. The company invests 5-6% of annual revenue in R&D, employs 150+ engineers, and runs active collaborations with IIT Delhi. This IP depth supports competitive differentiation in government tenders, export markets, and premium product pricing.

• The Motor Soft Start and Stop patent gradually ramps motor speed, reducing mechanical stress and preventing voltage dips in weak rural grid infrastructure. A practical engineering solution built around real farmer problems.

• The Surface Helical Pump patent maintains consistent water flow in reverse osmosis systems even with partially blocked membranes. It targets the industrial water treatment segment, expanding Shakti beyond agriculture.

• The Grid-Independent Solar Pump ensures continuous irrigation without any stable grid connection. This directly solves a critical pain point for farmers in remote and off-grid locations.

• 260+ pump models carry BEE 5-Star energy efficiency ratings, claiming 30-40% lower energy consumption and 40% higher water discharge versus cast iron alternatives.

• Chief Technical Officer Dr. Chinmay Jain holds an ME from IISc Bangalore and a PhD in Electrical Engineering from IIT Delhi. He has published close to 20 research papers in IEEE/IET journals and holds 9 patents personally.

• MNRE has awarded Shakti its highest 1A performance rating as a channel partner. For PM-KUSUM tenders, this rating is the mandatory entry ticket.

• Certifications span ISO 9001, ISO 14001, ISO 45001, CE Mark, UL, and BIS. DSIR recognition is also in place. Each certification strengthens an existing tender bid.

5. Global Export Reach

Export revenue grew 53% in FY25 to ₹437 crore, reaching customers across 100+ countries.

• In 9M FY26, exports reached ₹307 crore. Management targets ₹500 crore for the full FY26 year.

• Africa contributes 43% of export revenue. Middle East adds 25%. Americas contribute 15%. Asia adds 3%. Geographically diversified.

• The Uganda project is Shakti’s most impressive international reference. Valued at $35.3 million and funded by India’s Exim Bank, it supplies drinking water to 500,000 people across 20 rural districts. This is a full EPC project, not just product supply. Engineering, procurement, and construction were all managed by Shakti.

• The retail export segment grew over 25% YoY in 9M FY26. Retail exports carry higher margins than government or institutional supply.

• Subsidiaries in the USA, Dubai, and Bangladesh enable local market presence and direct customer relationships.

• Management has guided 20-25% annual export growth. Exports are being positioned as a counter-cyclical hedge against domestic PM-KUSUM policy risk.

• Shakti is a member of the International Solar Alliance (ISA), which has aggregated demand for 2,70,000+ solar pumps across 22 countries, 1 GW of solar rooftop across 11 countries, and 10 GW of solar mini-grids across 9 countries. Pipeline is good.

• Marquee international projects include de-watering at Burj Khalifa and One Za’abeel Tower in Dubai.

6. Solar Cell Factory Bet

Shakti is investing ₹1,200 crore through subsidiary Shakti Energy Solutions to build a 2.2 GW solar DCR cell and PV module manufacturing plant on 113 acres in Pithampur.

• PM-KUSUM mandates the use of domestically manufactured solar cells in all installations. Shakti currently sources panels from Premier Energies and Adani Mundra Solar. The new plant is aiming to reduce this dependency.

• The 2.2 GW plant sits on 113 acres in Pithampur, being built through subsidiary Shakti Energy Solutions Limited.

• Solar cell production using solar wafers began in March 2025. Full-scale module manufacturing is targeted for Q1 FY27.

• The total capex plan is ₹1,700 crore. ₹1,200 crore for the solar plant, ₹250 crore for doubling pump capacity from 5 to 10 lakh units per year, and ₹250 crore for the EV facility.

7. EV Mobility Entry

Shakti EV Mobility is manufacturing electric motors, controllers, and chargers for two- and three-wheelers. Annual capacity is set at 2 lakh units for each component. The Indian EV industry is projected to grow at 49% annually through 2030.

• Emerging business revenues, which include EV components, grew from ₹39.6 Cr in 9M FY25 to ₹66.6 Cr in 9M FY26, a 68% YoY increase. Early numbers, but the direction is clear.

• The EV plant capacity is 2 lakh motors, 2 lakh controllers, and 2 lakh chargers per year. All the 3 product lines are technical extensions of manufacturing capabilities Shakti already runs at scale for solar pumps.

• Shakti’s motor and VFD manufacturing expertise also transfers directly to EV powertrains.

• Shakti has already supplied initial electric motor orders to JBM, one of India’s leading EV bus and commercial vehicle manufacturers. Trials are ongoing with multiple additional OEMs beyond JBM.

• The EV capex requirement is ₹250 crore. Compared to the ₹1,200 crore solar plant, this is a smaller and more measured bet.

• India’s two- and three-wheeler EV segment is leading national adoption. Component demand from domestic OEMs will grow proportionally. The timing of Shakti’s entry aligns with the steepest part of that adoption curve.

• This segment does not replace PM-KUSUM revenue. It creates a second revenue stream on a different policy and demand cycle. If PM-KUSUM slows, EV revenue offers a partial but meaningful structural buffer.

8. Competition

The Indian pump market is valued at $3 billion and grows at 5-7% annually. The solar sub-segment is projected to expand from $600 million in 2024 to USD 2.4 billion by 2029. Shakti competes with Kirloskar Brothers, KSB India, CRI Pumps, Tata Power Solar, and Lubi Solar. In the PM-KUSUM solar segment specifically, it leads the field by a visible margin.

• India has 4% of global freshwater for 18% of the global population. Water scarcity is real. Solar pumps replacing diesel irrigation it is becoming a necessity.

• Kirloskar Brothers has ₹4,404 crore in revenue versus Shakti’s ₹2,516 crore. But Kirloskar’s 5-year revenue CAGR is 7.5%. Shakti’s is 37.3%.

• KSB India operates at EBITDA margins of 14-15%. Shakti’s FY25 margin is 24%. The gap is explained by solar pump product mix and backward integration.

• CRI Pumps, Tata Power Solar, Lubi Solar, and Ravindra Energy all participate in PM-KUSUM. None of them combine Shakti’s integration depth with its MNRE 1A certification status.

• In retail and export markets, Grundfos and Kirloskar carry stronger institutional brand equity. Shakti’s competitive moat is only concentrated in the government solar pump procurement channel.

• The solar pump market is expected to reach USD 2.4 billion by 2029 from USD 600 million in 2024. Four times growth in five years. Abhi, opportunity ahead.

9. Risks and Red Flags

• Government projects account for 77% of FY25 revenue. Any PM-KUSUM budget cut, subsidy reduction, or policy reversal would hit Shakti directly and hard.

• Despite ₹408 crore in reported PAT for FY25, operating cash flow was negative. Accounting profits and actual cash generation are dangerously disconnected.

• Receivables stood at ₹1,049 Cr by FY25. Debtor days is at 152. Over 22% of receivables have aged beyond 180 days. Mainly because the company deals with government and state agencies.

• Working capital loans surged to ₹570 crore by September 2025, up from ₹132 crore in FY24. The company is financing government payment cycles using its own balance sheet.

• Q3 FY26 saw PAT fall 70% YoY to ₹32 crore. EBITDA margins compressed to 10.7% from 23.8% a year earlier.

• SEBI fined 8 entities linked to the Patidar family ₹22 lakh in December 2022 for insider trading. Designated employees traded without pre-clearance and made contra trades.

• Promoter holding has declined from 55.9% in 2022 to 50.3% today due to QIP dilution. Further QIPs to fund capex could push holdings below the psychologically significant 50% threshold.

• Raw material costs, specifically copper, steel, and solar panels, rose 2-4% in FY26. Input inflation makes margin defense harder.

• The 2.2 GW solar plant enters a globally oversupplied panel market. If module prices continue falling by Q1 FY27, the projected 3-4% margin gain from in-house production may prove less than expected.

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.

🟢 HBL Engineering wins order worth ₹180 Cr. HBL has been diversifying from traditional battery and railway electronics into broader defence and energy storage orders.

🟢 Astra Microwave JV Astrra Rafael Comsys receives order worth ₹250.58 Cr from Hindustan Aeronautics Limited for supply of Software Defined Radio. SDR is a key element of HAL's platform modernisation. This order validates the Astra-Rafael JV's competitive positioning in Indian defence avionics.

🟢 Krishna Institute of Medical Sciences unit enters a 20-year operations and management agreement with Avitis Super Speciality Hospitals. O&M agreements are capital-light. KIMS effectively expands managed bed capacity without balance sheet burden.

🟢 Emami acquires 100% stake in Axiom Ayurveda (brand 'Alofrut') for ₹200 Cr to enter the beverage sector. Alofrut's ayurvedic fruit drink positioning gives Emami a natural adjacency to its existing wellness and FMCG distribution network.

🟢 Zaggle Prepaid Ocean Services infuses ₹50 Cr into Rivpe Tech, acquiring a strategic stake for fintech expansion. Embedded fintech services have higher LTV than standalone prepaid card products.

🟢 Apollo Hospitals Enterprise approves establishment of a multi-speciality hospital at Dwarka, New Delhi with a 55-year land license and annual fee of ₹33 Cr from the fifth year. Dwarka gives Apollo access to a dense, underserved West Delhi area where it currently has no major footprint.

🟢 Ashok Leyland plans to expand its addressable market in the LCV segment from 54% to 80% over the next 3-4 years by entering sub-2-tonne, 4-6-tonne, and small passenger vehicle categories.

🟢 LG Electronics India sells over 1 million ACs in Q1 CY26, showing India market dominance.

🔴 Hariom Pipe Industries faces temporary closure at its Perundurai unit following TNPCB directions.

🔴 India Manufacturing PMI for March came in at 53.9 vs 56.9 previous, indicating a slowdown in manufacturing activity.

🔴 US prepares to impose new tariffs on pharmaceutical imports. India supplies roughly 30% of US generic drug volumes. Sun Pharma, Cipla, and Dr Reddy's together generate over $3.5 Bn annually from the US market.

🔴 Gas crunch hits Firozabad's glass industry as the West Asia conflict continues. Firozabad accounts for roughly 70% of India's glass bangle production.

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 bagged ₹6,795 Cr in defence orders since its March 30 disclosure, covering mountain radars from MoD, LCA avionics package from HAL, and a major export order for communication equipment, taking its total order book to ₹74,000 Cr.

🟢 Zaggle signed a 5-year deal with Fanuc India focused on employee expense management and benefits solutions.

🟢 Oriana Power (TrueRe Oriana) secured a ₹3,135 Cr green ammonia offtake deal with SECI under the National Green Hydrogen Mission. The agreement covers supply of 60,000 tonnes of green ammonia annually at ₹52.25/kg over 10 years, with SECI as intermediary and Madhya Bharat Agro Products as end off-taker.

🟢 J. Kumar Infraprojects won an NHAI EPC order worth ₹2,360 Cr for a 32.18 km, 4-lane (expandable to 8-lane) expressway connecting NH-48 to the upcoming Vadhvan Port in Maharashtra

🟢 Jubilant Foodworks renewed its master franchise agreement with Domino’s Pizza International Franchising Inc for exclusive rights to operate Domino’s in India, Sri Lanka, and Bangladesh for 15 years.

🟢 Tube Investments acquired full control of Tivolt EV, investing ₹30 Cr to make it a wholly owned subsidiary. Aligned with their EV two-wheeler and three-wheeler expansion roadmap.

🟢 DCM Shriram fully commissioned its 52,000 TPA Epichlorohydrin plant at Jhagadia, with the balance 17,000 TPA operational from April 1. It is one of very few domestic producers of epoxy resin precursor.

🟢 Welspun Living announced partial commencement of commercial production at its Nevada pillow manufacturing unit, with US$13 million capex approved for home textiles expansion.

🟢 Adani Ports crossed the 500 million tonnes cargo milestone and remains on course for 1 billion tonnes by 2030. Targeting a double-digit volume CAGR.

🟢 United Breweries launched Kingfisher Smooth Strong premium beer in Maharashtra, entering the fastest-growing premium strong beer segment where rivals Bira 91 and Carlsberg India have been gaining shelf share.

🟢 Lupin received tentative approval from the US FDA for Sugammadex Injection, a generic of Merck’s Bridion in a $500+ million US market with limited current generic competition.

🔴 Govt cancelled the auction of 11 critical and strategic mineral blocks in the sixth round due to poor investor response and lack of qualified bidders

🟢 India's March 2026 gross GST collections rose 8.8% YoY to ₹2,00,064 Cr

🔴 Commercial LPG prices hiked effective April 1. The price of 19 kg cylinder rose ₹195.50 to ₹2,078.50 in Delhi.

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.

🟢 Pace Digitek secured a ₹494.54 Cr NTPC EPC order for BESS at Nabinagar STPS, with 15-month execution plus 11-year O&M, as a domestic non-related party contract. This adds to an order book that crossed ₹10,000 Cr.

🟢 Bharat Electronics received orders worth ₹1,660 Cr including satellite communication network, electronic warfare systems, and avionics.

🟢 BHEL won an order worth ₹13,500 Cr from NTPC for the 3x800 MW Telangana Stage-II supercritical thermal power project at Peddapalli, with a 62-month execution schedule covering full BTG and civil works.

🟢 NBCC (India) was appointed as project management consultant by the Republic of Seychelles for a $75 Mn affordable housing and infrastructure project funded via EXIM Bank LOC. This is NBCC's second major Africa/Indian Ocean international PMC mandate in recent years, diversifying its revenue geography beyond domestic redevelopment projects.

🟢 CMS Info Systems acquired FSS ATM managed services business for ₹115 Cr, adding 8,000 ATM units to its portfolio. This acquisition will increase CMS's managed services portfolio from approximately 31,000 to 39,000 units.

🟢 Healthcare Global Enterprises will strengthen its Nagpur cancer care unit with a ₹98 Cr infusion and is investing ₹253.66 Cr to acquire additional 34% stake in Vizag Hospital.

🔴 Bharti Airtel is set to pay over ₹5,000 Cr of a combined ~₹10,000 Cr AGR dues (shared with Tata Teleservices) as moratorium ends. This payment represents the first instalment under a 6-year schedule and accounts for roughly 1/5th of Airtel's total AGR liability, which now exceeds ₹40,000 Cr with accrued interest.

🟢 NTPC added 180 MW solar capacity, with group installed capacity reaching 87,809 MW. At 87,809 MW group capacity, NTPC now accounts for over 18% of India's total installed power generation base.

🟢 India will ban Chinese CCTV brands unless certified from April 2026, boosting digital security and benefiting local surveillance tech brands. Domestic beneficiaries include CP Plus, Godrej Security, and Zicom, with India's CCTV market estimated at ~₹8,000 Cr 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.

🟢 G R Infraprojects emerged as the lowest bidder for a contract worth ₹1,454 Cr. GR Infra has now secured three major L1 wins in FY26, adding over ₹5,800 Cr to its order pipeline.

🟢 KNR Constructions won a ₹1,734 Cr NHAI HAM project for 4-laning of NH-167 (80.01 km Gudebellur-Mahabubnagar section in Telangana), part of the Hyderabad-Panaji Economic Corridor

🟢 JNK India secured a major order from JNK Global, Korea for cracker furnace package support in an Indian refinery project worth ₹300-600 Cr. JNK Global is JNK India's parent. This is an intra-group export revenue flow.

🟢 Seamec bagged a ₹330 Cr ONGC contract for Samudra Prabha O&M services. O&M contracts with ONGC provide multi-year annuity revenue with lower execution risk.

🟢 Aegis Vopak Terminals executed a deed of assignment to transfer rights for acquiring a specialised ammonia storage terminal at Pipavav Port to its unit with a planned static storage capacity of 36,000 MT. Ammonia is a key hydrogen carrier. Pipavav ammonia storage positions Aegis Vopak directly in India's green hydrogen import corridor.

🟢 UltraTech Cement settled a ₹1,000 Cr dispute with Jaiprakash Associates and secured full control of the Dalla unit. Dalla's ~2.5 MTPA capacity in Uttar Pradesh removes a long-running legal overhang and clears UltraTech's path to full capacity utilisation.

🟢 Chandan Healthcare entered Chhattisgarh by launching a Raipur diagnostic centre. Diagnostics penetration in Chhattisgarh is significantly below the national average. Offers great potential.

🟢 Eicher Motors' Royal Enfield launched the 2026 Guerrilla 450 Apex with sportier design and enhanced performance; bookings open now with retail sales starting March 31, 2026. The 350-500 cc motorcycle segment is growing at approximately 18% CAGR, and the Guerrilla 450 directly targets the performance-oriented youth buyer.

🟢 PVR Inox is set to end FY26 on a three-year high with Dhurandhar 2 topping ₹600 Cr in India. Current Occupancy at 50-60% with plans to add 100-110 screens annually. 50-60% occupancy is excellent. Pre-covid it used to be only 33-35%

🟢 Urban Company's InstaHelp crossed 1 million monthly delivered bookings, becoming the fastest-growing vertical in company history. Nearest rival Snabbit had ~0.5 million monthly orders in February, giving InstaHelp roughly 2x lead with 49% segment share.

🔴 Reliance Industries strongly denied media reports alleging it purchased crude oil of Iranian origin, calling the claims baseless and factually incorrect.

🔴 Tata Motors' Jaguar Land Rover halted production at its UK Solihull plant for up to two weeks after a fire at one of its key suppliers in Norway. Solihull is JLR's most profitable plant producing Range Rover and Range Rover Sport.

🔴 IDFC First CEO said the bank will post profit in Q4 despite taking the full hit of the Haryana fraud.

🔴 Kotak Mahindra Bank said there is no material impact from the alleged FD fraud linked to Panchkula Municipal Corp and is cooperating fully with authorities.

🔴 50% of commercial planes reported technical defects per a Parliament panel audit, with IndiGo accounting for the highest number. India's commercial aviation fleet has become 3X in a decade, but airline maintenance engineering headcount has not kept pace with fleet growth.

🟢 Government sharply cut fuel excise duty with petrol duty slashed to ₹3/litre from ₹13 and diesel duty reduced to 0 from ₹10. The annual revenue cost of the cut is estimated at ₹1.75 lakh crore. The move primarily offsets OMC losses.

🔴 Steel Ministry flagged an LPG supply crunch amid West Asia tensions.

🔴 India's FX reserves fell to $698.35 Bn vs $709.76 Bn previously. RBI deployed an ~$16-18 billion in March to defend the rupee.

🔴 INR traded at 94.50 per USD. The rupee has weakened 10.38% over the past 12 months.

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.

This week, Let’s explore the business & fundamentals of Campus Activewear Ltd.

In the last 3 years…
- Revenue TTM has grown 1.44x (from ₹1,194 Cr to ₹1,724 Cr)
- Operating Profit TTM has grown 1.03x (from ₹189 Cr to ₹194 Cr)
- PAT TTM has grown 1.29x (from ₹109 Cr to ₹141 Cr)

Take a look at the fundamentals chart below.

Performance Chart

Quality Chart

Their Road to Consistency

1. Overview and Business Model

Campus Activewear is India’s largest sports and athleisure footwear brand by value and volume. The company sells running shoes, walking shoes, and casual sneakers for the entire family.

• Campus holds 17% of India’s branded sports and athleisure footwear market. It competes directly against Nike and Puma at a fraction of the price.

• Revenue grew from ₹1,448 Cr in FY24 to ₹1,593 Cr in FY25. Latest TTM Revenue is about ₹1724 Cr. Volume rose from 22.2 million to 25 million pairs in the same period. Volume and value growing together is a positive.

• Men’s footwear dominated with 81.3% of revenue in Q3 FY25. Women and children together now represent 18.7% of the business.

• North India accounts for ~47% of total revenue.

• Trade distribution contributes ~50% of sales. D2C & Online platforms account for ~50%. A balanced channel mix.

• The brand reaches 29,000+ retailers across 700+ cities in 28 states. It also runs 290+ Exclusive Brand Outlets nationally. Distribution density of this scale is impressive.

• Campus was built on one idea. Global designs at Indian price points.

• India's per capita Sports footwear spend is just US $1.1, against a global average of US $13.3. The Sports footwear segment is only 15% of Indian footwear retail, versus a global average of 31%. These numbers indicate a long-term structural opportunity.

2. Vertically Integrated Manufacturing

Campus operates a fully vertically integrated manufacturing system covering soles, uppers, and final assembly. This control over every production step allows the company to maintain quality, protect margins, and launch new designs faster.

• 5 manufacturing facilities operate across India. Total assembly capacity stands at ~30.7 million pairs.

• 100% of footwear is assembled in-house, ensuring every pair meets the company’s quality benchmarks.

• The Gannaur facility was recently expanded to increase production of specialized soles.

• A Haridwar II upper plant dedicated specifically to sneaker production has been commissioned in FY26. This is a direct response to the 116% sneaker category surge.

• An upper manufacturing facility at Paonta is now operational, adding a third upper plant alongside Haridwar I and Haridwar II.

• Land and building were acquired at Pant Nagar in FY26, signalling the next phase of capacity expansion.

• Over 90% of raw materials are sourced domestically. This shields the business from global shipping disruptions and trade volatility.

• Vertical integration enabled launch of ~270 new designs in FY25 alone. That speed of design-to-shelf is nearly impossible without in-house manufacturing. Fast fashion logic successfully applied to branded footwear.

• Their proprietary technologies like Nitrofly and Air Capsule use specialized molds and tooling during production. Design registrations legally protect these innovations from being copied.

• In Sep 2025, the company invested ₹74.75 crore to acquire land and buildings in Uttarakhand. This signals long-term commitment to expanding production capacity.

• Increasing captive production of uppers is expected to reduce the cost of semi-finished goods.

• Regional warehouses store components and finished goods close to markets. This shortens replenishment cycles for 300+ distributors nationally.

• Manufacturing lead times are 80 to 100 days, against an industry average of 90 to 120 days. This speed advantage is a direct output of vertical integration.

3. Multi-channel Distribution

Campus reaches consumers through trade distribution, e-commerce marketplaces, exclusive brand outlets, and large format stores. With over 29,000 retailer touchpoints and 280+ distributors, this network took years to build.

• Trade distribution generated ₹832.9 crore in FY25. Over 280 distributors provide the brand with premium shelf space nationwide. Traditional trade still remains the backbone of the business (~50%)

• D2C channels (Online + Exclusive Business Outlets + Large Format Stores) crossed 50.6% of revenue in Q3 FY26, surpassing trade distribution for the first time.

• Campus partnered with Zepto in late 2024 to enter quick commerce. Customers can now receive footwear within minutes of ordering.

• The company transitioned its online business to a marketplace model for better inventory and pricing control. This shift from the older B2B approach improved sales quality and profitability.

• 290+ Exclusive Brand Outlets operate across India. These stores showcase the full product range and deliver a premium in-store experience.

• During FY24, the company added 66 new stores targeting the Western and Southern regions. This directly reduces reliance on the North Indian market.

• Products are available at over 2,200 Large Format Store counters inside high-footfall malls and departmental stores.

• A Distributor Management System tracks secondary sales and monitors inventory health at every touchpoint daily.

• An internal sales force of 220+ employees directly covers approximately 15,000 retailers.

• High-spending urban consumers in premium malls are the next growth segment.

• The company is now penetrating rural markets through a super stockist model, extending reach beyond 700 districts into areas where standard distributor economics do not work.

4. Fast Design Refreshes

Campus launches around 300 new shoe designs every year through a dedicated 30-member team working with global design consultancies. This constant product refresh keeps the brand exciting for young Indian consumers.

• A 30-member design team collaborates with global consultancies to produce roughly 300 new designs every year. This output frequency is unusually high for a domestic footwear brand. A fresh footwear catalog keeps consumers returning.

• The full product development cycle from conceptualization to launch is typically 120 to 180 days.

• The sneaker category grew 116% in Q3 FY25 as the brand captured a major shift toward casual fashion. Sneakers in India have moved from sportswear into everyday wardrobe staple.

• The Air Capsule Pro collection launched in early 2025 with upgraded impact cushioning technology. It targets consumers who move between work and workouts without changing shoes.

• Nitrofly and Nitro Boost technologies deliver energy return and lightweight performance at accessible price points. Performance-grade technology was previously exclusive to ₹10,000+ international shoes. Campus has to an extent democratized it for consumers spending under ₹2,000.

• The company maintains over 2,500 active shoe styles covering every price segment from economy to premium. No consumer price point goes unaddressed.

• 600+ active styles were running simultaneously in Q3 FY26, each selling 1,800+ pairs per style on average. This is a useful proxy for demand per style.

• A “never out of stock” replenishment system keeps core evergreen models continuously available.

• The premium segment grew to 57.2% of total sales in Q2 FY26.

• Shoes with shock absorption and reflect technology are available at prices as low as ₹699. Performance features at these price points are unmatched globally.

• Accessories like socks are being introduced to improve the product mix and grow average transaction values.

• Campus is building a complete athleisure ecosystem.

5. Celebrity Brand Building

Campus invests heavily in Bollywood celebrity endorsements and 360-degree multimedia campaigns to build an aspirational identity at accessible price points.

• Advertising and promotion spend grew to ₹135 crore in 2025 from ₹108 crore the prior year. This sustained investment keeps the brand continuously visible across television and digital platforms. Brand spend in this particular case is not an expense. It is more of a long-term asset.

• Vicky Kaushal was appointed brand ambassador for the “Move Your Way” campaign in late 2024.

• Kriti Sanon fronted the “You Go, Girl!” campaign in early 2025 to target women’s footwear specifically.

• Siddhant Chaturvedi voiced the campaign anthem “Aye Bro, Capsule Pro” for the Air Capsule Pro launch.

• The 360-degree strategy spans television, print, digital, influencer, and outdoor formats simultaneously. Comprehensive coverage builds brand recall across every consumer touchpoint.

• A multimedia strategy in FY25 ran across digital media, news channels, and outdoor advertising at the same time. Reaching consumers through multiple formats reinforces brand memory.

• Marketing is increasingly data-driven with a focus on Tier 2 and Tier 3 city consumer preferences.

• Social commerce is used to micro-launch products and test consumer demand before full-scale rollout. This reduces the risk and cost of failed product launches significantly.

• Celebrity endorsements have successfully shifted the brand’s perception from budget to fashionable lifestyle. Campus can now sell premium shoes priced above ₹3,500 with genuine consumer desire. Brand image improvements directly unlock higher price points.

6. Digital Systems Scale

Campus has invested heavily in enterprise software, data analytics, and automation across its supply chain, manufacturing floor, and retail operations. These technology investments are improving forecast accuracy, reducing inventory waste, and accelerating time-to-market.

• Campus completed the SAP S/4HANA implementation in April 2025. This provides real-time data visibility across all business processes for the management team.

• The company invested ₹150 crore in technology in 2024 to upgrade supply chain and e-commerce infrastructure. Operational efficiency is expected to improve by 15% with reduced delivery lead times.

• A Distributor Management System connects 300+ distributors and monitors secondary sales daily. It prevents inventory buildup and ensures smooth product flow toward retailers.

• Advanced data analytics forecast demand for specific shoe styles and colors across different Indian regions. Efficient stock allocation reduces instances of popular items going out of stock. The right product, in the right place, at the right time.

• 3D designing and virtual sampling processes are now used on the manufacturing floor. A new shoe model can now be developed in days rather than weeks. Speed to market has never been faster.

• An integrated Warehouse Management System optimizes storage and movement of over 24 million pairs annually. On-time delivery rates improved by 10% to 20% over the past year.

• Omnichannel technology syncs inventory across the website and physical stores simultaneously. Customers can buy online and collect from a nearby store. Unified inventory management is the backbone of modern consumer retail.

• Data links between the company and 26,000+ retailers enable demand-driven stock allocation. Each store receives the specific styles most popular in its local market.

• AI-based product recommendations on e-commerce platforms have improved online conversion rates. Showing the right shoe to the right consumer at the right moment maximizes digital revenue.

• Technology improvements have also streamlined reverse logistics for online returns, which can run as high as 25%. Faster return processing puts inventory back into available stock more quickly.

7. Geographic Expansion

Campus is systematically reducing its North India dependence by expanding into the West, East, and South through new stores, stronger distributor networks, and digital-first market entry.

• North India contributed 39.7% of revenue in FY25, but the concentration is gradually declining. Reducing geographic dependence is a deliberate and ongoing management priority.

• The Western region now contributes 23.8% of total revenue. Aggressive store openings in Maharashtra and Gujarat are driving this growth.

• Eastern India accounts for 20.6% of revenue in FY25. Campus’s affordable pricing resonates strongly with price-sensitive consumers in this region.

• Southern India is currently 7.7% of sales but the fastest-growing region. The brand uses online platforms to test the Southern market before committing to physical stores.

• In FY24, the company added 66 new Exclusive Brand Outlets primarily in the Western and Southern regions. This builds recognition in territories where global brands were previously dominant.

• Campus products are now available across 650+ cities in 28 states. This is among the widest geographic footprints of any Indian footwear brand.

• Management consolidated its distributor base to 350 high-performing partners. Focusing resources on the best distributors improves volume per partner.

8. Financial Discipline

Campus has transformed its balance sheet over the last three years through debt repayment, faster receivables collection, and better inventory management.

• The company has been reducing the debt as a percentage of total assets over the years.

• Trade Cycle days dropped from 159 days in FY24 to 117 days by end of FY25. This shows vastly improved cash cycle efficiency across the business.

• Although ROCE and ROE has dipped over the years, they are showing signs of improvement since 2025.

9. BIS Compliance Advantage

The Bureau of Indian Standards certification regime for footwear has become a powerful structural tailwind for Campus. As the first footwear company in India to receive BIS certification, Campus enjoys quality credibility while smaller and unorganized rivals struggle with costly compliance.

• Campus was the first footwear company in India to receive a BIS certificate.

• This gave the brand a substantial head start over all peers navigating the compliance process.

• The company is 100% BIS compliant across its entire product portfolio. This acts as a structural entry barrier against low-quality footwear imports from China and Vietnam.

• BIS norms are expected to significantly curb cheap non-compliant footwear imports. Removing this unfair price competition directly benefits organized domestic brands.

• Non-BIS compliant inventory was reduced to less than 10% of total stock by early 2025. Proactive liquidation of old stock cleaned the supply chain ahead of the regulatory deadline.

• The liquidation process impacted gross margins by 20 to 40 basis points over recent quarters. This was a deliberate and calculated short-term trade-off.

• Footwear companies with under ₹50 crore in turnover are struggling to afford BIS compliance costs. This is directly channeling market share toward larger organized players.

• The government set a Jun 2025 deadline to remove all non-compliant footwear from the Indian market.

• Campus uses in-house testing facilities to verify every batch of raw materials and finished goods against BIS criteria.

• BIS transition is accelerating consumer migration from unorganized to organized footwear brands. Campus is perfectly positioned to absorb these newly converted consumers.

• BIS compliance also strengthens the brand’s credibility for its export business. Meeting strict domestic quality norms builds a foundation for global market entry.

10. Risks and Red Flags

• Abros, a brand founded by a former Campus COO, poses a genuine competitive threat. This rival knows the company’s internal distribution strategies and product playbook intimately. Insider competition is one of the most dangerous forms of rivalry.

• After achieving net-debt-free status in FY24, the company’s net debt returned to ₹128.7 crore in TTM 9MFY26. While capex-driven and manageable, this reversal deserves monitoring especially if revenue growth slows.

• North India’s share spiked back to 46.8% in Q3 FY26, suggesting geographic concentration risk is seasonal and structural, not yet fully diversified.

• During economic slowdowns, global brands like Nike and Puma tend to discount heavily. Their products then enter the same price range as Campus shoes. Premium global brands going price-aggressive can directly hurt Campus’s positioning.

• Raw material price volatility in EVA and PU compounds is a persistent cost risk. Many inputs are imported or tied to international commodity cycles. Margin compression from raw material spikes happen faster than pricing adjustments.

• The shift to a marketplace model online increases inventory risk on Campus’s own balance sheet. Under the older B2B model, e-commerce platforms absorbed that inventory risk entirely. Campus now carries more exposure on its books.

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.

🟢 Avantel secured a ₹459.9 Cr rate contract from Zetwerk for satellite communication equipment including supply, 1-year comprehensive onsite warranty, and 5-year AMC support, executed over 3 years. The ₹460 Cr contract is ~1.85x Avantel's record FY25 turnover of ₹248.67 Cr.

🟢 L&T won a significant contract with values between ₹10B to ₹25B. Contract won from Guwahati's drinking water board for its Water & Effluent Treatment business.

🟢 Bharat Dynamics plans 2 additional manufacturing facilities with additional orders of ₹150B envisaged in FY 2026-27. BDL's ₹25,500 Cr order book already provides 4+ years of forward revenue visibility.

🟢 Cochin Shipyard formed a JV with HBL Engineering to develop electric mobility and energy storage technology with CSL holding 40% and HBL 60% in the new JV. The JV specifically targets marine electric and hybrid propulsion, not road or land mobility.

🟢 RRP Defense signed a strategic MOU with BEL to boost semiconductor and unmanned systems collaboration. The MOU also covers Electro-Optics, expanding collaboration across 3 high-value defence technology domains.

🟢 Sterlite Technologies launched India’s first hollow core fibre (HCF) cable for data centres enabling 46% faster signal travel and reduced latency. STL is India’s only HCF manufacturer, holding 780-plus patents and targeting global hyperscalers.

🟢 Puravankara unveiled 30 projects across South India and Mumbai with GDV over ₹55,000 Cr in the next 24 months.

🟢 HFCL to set up a ₹580 Cr preform facility via subsidiary strengthening backward integration for optical fiber business. HFCL’s recent $1.10 billion global OFC supply deal makes this preform capacity important.

🟢 Bata India crossed 700 franchise stores with about 70% of stores in Tier II, III and IV markets. At 700-plus stores, franchise now drives Bata’s growth with minimal capex per location added.

🟢 Coal India subsidiary CMPDIL filed prospectus with ROC for an IPO of 107.1 million shares following RHP. This is Coal India’s first subsidiary IPO; CMPDIL is the group’s technical exploration arm.

🔴 Kotak Mahindra Bank faces alleged ₹150-160 Cr fraud linked to Panchkula Municipal Corporation with missing FDs and fund diversion under vigilance probe. Follows IDFC First’s ₹590 Cr Haryana FD fraud.

🔴 Power Mech Projects had its 250 MW battery storage tender annulled by WBSEDCL, reducing order book by ₹1,563 Cr. The reversal erases PM Green’s maiden BESS order won just 2.5 months ago in January.

🟢 Finance Ministry nod sought to extend E2W and E3W SOPs with around 1 million E-2Ws sold against a target of 1.4 million (OLA Electric, Hero Moto, TVS Motor).

🔴 Zerodha doubled some intraday F&O brokerage charges to ₹40 as SEBI mandates 50% cash collateral. Fee applies from April 1; traders maintaining 50% cash margin still pay the standard ₹20.

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.

🟢 Chandan Healthcare secured a 10-year tender to install 1.5T MRI at a 200-bed Civil Hospital in Rohtak. Chandan has secured 3 PPP radiology contracts in the past few months. They are targeting rapid government expansion.

🟢 Ceigall India bagged 2 work orders worth ₹297.89 Cr for an Andhra Pradesh hybrid power project. Ceigall has already exceeded its FY26 order inflow guidance of ₹5,000 Cr with a ₹14,237 Cr order book.

🟢 Suzlon Energy won its 6th repeat order of ~100 MW from GAIL for 47 S120 WTGs in Nandurbar Maharashtra. PSU and C&I orders now form 64% of Suzlon's book; this is their maiden Maharashtra project.

🟢 BPCL-Sembcorp JV (NeuEn Green Energy) secured a contract to supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery Ltd. NeuEn won at ₹279/kg, India's lowest-ever green hydrogen tariff, beating 9 competing bidders.

🟢 Kilburn Engineering secured multiple orders totaling ₹54.58 Cr including Rotary Dryers for Limestone (₹19.85 Cr) and Paddle Dryer/Cooler systems.

🟢 Adani Enterprises acquired 24% Category I and 0.74% Category II shares in IANS India Private Limited a news media company. Adani now fully owns IANS, NDTV, and BQ Prime, making it India's largest private media conglomerate.

🟢 Natco Pharma board approved demerger of its agrochemicals business into Natco Crop Health Sciences issuing 1:1 shares to Natco Pharma shareholders.

🟢 HDFC Bank appointed external law firms to review Chairman Chakraborty’s resignation.

🔴 India PMI Services came in at 57.2 vs 58.1 previous and PMI Manufacturing at 53.8 vs 56.9 previous indicating slowdown. Both PMIs remain above 50 though. The slowdown was primarily driven by Middle East conflict.

🟢 Noida International Airport is set for March 28 inauguration. Phase 1 handles 12 million passengers annually; full build-out targets 70 million across four phases.

🟢 Govt launched the 7th tranche of e-auction for critical minerals including rare earth elements for clean energy and advanced manufacturing (benefits NMDC and Vedanta). India imported ₹1.7 lakh crore in electronics last year, making domestic critical mineral supply strategically urgent.

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.

🟢 G R Infraprojects secured a massive ₹2,440.87 Cr NHAI Letter of Award for an 82.4 km greenfield highway project in Bihar (NH-33).

🟢 C2C Advanced Systems secured an order for 29 counter-drone mission computing systems from an Indian defence player.

🟢 Simplex Castings announced large order wins worth ₹41.38 Cr from BHEL, Thyssenkrupp, and SMS.

🟢 Kotak Mahindra Bank is set to acquire Deutsche Bank’s India retail business for ₹4,500 Cr, having emerged as the preferred bidder as part of Deutsche’s exit strategy

🟢 Bosch Limited and Tata AutoComp Systems formed a 50:50 joint venture to manufacture and sell eAxle systems and electric motors in India, with operations expected to commence by mid-2026.

🟢 Bharti Airtel deployed over 2,750 new 5G sites across 36 districts in Gujarat, enhancing connectivity for 41 million users.

🟢 Powergrid increased FY26 Capex guidance to ₹35,000 Cr and raised its capitalisation target to ₹25,000 Cr.

🟢 Astral’s subsidiary Al-Aziz Plastics was granted a patent for a ‘Multiport Water Outlet’ by the Government of India.

🔴 Coal India Board granted in-principle approval to divest up to a 25% stake in subsidiary Mahanadi Coalfields Limited (MCL) via an IPO or OFS.

🔴 PM Modi said India has 5.3 million tons of strategic petroleum reserve, government is ensuring oil and gas supplies are not affected much.

🟢 India considers a 10-kg LPG supply plan, supplying 10 kg in standard 14.2-kg cylinders to stretch limited stocks as the Hormuz crisis hits imports.

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.

🟢 DCX Systems secured a purchase order worth ₹563.45 Cr from a domestic customer for the manufacture and supply of Maritime Patrol Radar Systems.

🟢 Ceigall India’s subsidiary emerged as the L1 bidder for an NHAI tender in Punjab worth ₹603 Cr, involving a 10.3 km 6-lane Hybrid Annuity Mode contract.

🟢 RITES secured a ₹105.69 Cr RDSO contract for 5-year maintenance of Dedicated Test Track in Jodhpur Division (NWR).

🟢 Oberoi Realty acquired 100% of Hotel Horizon Private Limited (HHPL), which owns and manages hotel real estate assets in Mumbai, for ₹919.25 Cr.

🟢 Tata Power’s imported coal-based power plant in Gujarat has been mandated by the government to operate at full capacity from April to June.

🟢 Powergrid approved the merger of 28 subsidiaries to streamline structure and improve efficiency.

🟢 MCX is in positive volume momentum with Q4 overall options premium turnover up 51% QoQ and energy segment ADTO (Average Daily Turnover) up 83% QoQ.

🟢 BSE reported ADTO in Q4 up 51% QoQ with market share increased to an all-time high of 31%.

🔴 Tata Motors Passenger Vehicles will hike passenger vehicle prices by 0.5% from April 1.

🔴 IOCL hiked industrial diesel price to ₹109.59 from ₹87.57 per litre.

🔴 Eternal hiked its food delivery platform fee to ₹14.90 from ₹12.50 per order.

🔴 IndiGo, SpiceJet, and Air India opposed the government’s 60% free seat selection diktat saying it will force airfare hikes.

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.

This week, Let’s explore the business & fundamentals of PRICOL Ltd.

In the last 5 years (Dec 2020 → Dec 2025)…

- Stock price has grown 14.2x (from ₹46.60 to ₹660.42)
- Revenue TTM has grown 2.2x (from ₹1,679 Cr to ₹3,711 Cr)
- Operating Profit TTM has grown 6.3x (from ₹42 Cr to ₹265 Cr)
- PAT TTM has grown 3.5x (from ₹61 Cr to ₹213 Cr)

Take a look at the fundamentals chart below.

Performance Chart || Last 5 Years

Quality Chart || Last 5 Years

Their Road to Consistency

1. Overview and Business Model

Pricol Limited is a Coimbatore-based automotive technology and precision engineering company. It designs, manufactures, and sells instrument clusters, sensors, and fluid management systems to major vehicle manufacturers. The company serves two-wheelers, commercial vehicles, passenger vehicles, and off-road equipment through 15 manufacturing plants across India and Indonesia.

Revenue Mix

• Driver Information Systems contribute 75% of standalone revenue.

• Actuation, Control & Fluid Management Systems add 20%, and

• Switches and Sensors make up the remaining 5%.

• Recently expanded into disc brakes and Battery Management Systems. This extends relevance to both ICE and growing EV markets simultaneously.

Customer Segment Mix

• Two-wheelers form the largest customer segment at 69% of revenue.

• Commercial Vehicles follow at 15%,

• Passenger Vehicles at 10%, and

• Off-Highway equipment at 6%.

Presence

• The company exports to over 45 countries globally. Exports constitute ~11% of revenue. Domestic OEMs account for ~89% of total revenue.

• International offices in Tokyo, Singapore, and Dubai keep Pricol close to Japanese and global OEM design teams. Proximity is a form of strategy.

2. Market Dominance

Pricol commands extraordinary market shares across every vehicle segment it serves. It holds 65% of the domestic two-wheeler instrument cluster market and approximately 70% in commercial vehicles.

• Pricol holds a ~65% share in domestic two-wheeler instrument clusters as of FY25. This scale provides immense pricing advantages over smaller rivals.

• The company controls 70% of the commercial vehicle instrument cluster market. Seven out of ten trucks on Indian roads carry a Pricol dashboard.

• The off-highway segment is more skewed. Pricol commands approximately 90% share in construction and agricultural equipment clusters. Complex durability requirements for outdoor use limit the pool of viable competitors sharply.

• Globally, Pricol ranks second by volume in instrument cluster manufacturing, behind only Japan’s Nippon Seiki.

• This global scale helps negotiate better prices for semiconductors and display components.

• The company manages over 5,000 product variants to serve its diverse customer base. No domestic competitor offers comparable catalog depth.

• The BS-VI transition in April 2020 required digital diagnostics in every new vehicle. Pricol was technology-ready while smaller players struggled to comply.

• Pricol supplies 80% of all instrument clusters used by Tata Motors in passenger vehicles. This wallet-share concentration at one major OEM reflects deep and tested trust.

• The Coimbatore facility produces over 12,000 instrument clusters every single day. High-volume production reduces per-unit cost significantly.

• Management is deepening ties with Honda and Suzuki to grow the two-wheeler segment further.

3. Premiumization

Pricol is riding a structural shift from mechanical dials to high-end digital TFT displays.

• Average realization per instrument cluster rose from approximately ₹800 to ₹2,500 in recent years. The shift from basic LCD to full TFT technology is the primary driver.

• TFT clusters are currently just 10% of total sales with room to grow.

• Management targets an average cluster price of ₹5,000 within next 4 years. Navigation controls, music integration, and connectivity features will drive this. The dashboard is evolving from an instrument panel into a digital cockpit.

• Revenue share from dashboard instruments rose from 59% in FY23 to 75% in FY25. Customers are choosing digital over mechanical at an accelerating rate. Premiumization is happening organically, without Pricol needing to push it.

• Digital clusters carry better profit margins due to complex software and electronic hardware content. This mix shift has boosted margins.

• Pricol is now delivering E-Cockpit prototypes that integrate multiple vehicle controls into one display. Several major OEMs have received these for evaluation.

• Features like mobile mirroring and turn-by-turn navigation, once limited to luxury cars, now appear on mid-range bikes through Pricol. Technology democratization expands the addressable market.

• EV manufacturers use high-end digital displays exclusively to show battery range and health data. The EV transition accelerates Pricol’s premiumization journey.

4. Smart Acquisitions

Pricol uses disciplined acquisitions to reduce revenue concentration and build new manufacturing capabilities.

• In Jan 2025, it acquired the injection moulding division of Sundaram Auto Components for ₹80 crore. A targeted entry into the vehicle body parts segment. This deal added ₹920 crore in annual revenue potential and opened entirely new customer segments including safety and electrical component makers.

• The acquisition was priced at 3.2x EV/EBITDA. This is an attractive valuation for a high-growth manufacturing asset.

• The deal reduces dashboard revenue dependence.

• New clients acquired through this deal include Ather Energy, Hanon, Autoliv, and Schneider. Pricol has entered non-automotive segments like safety systems and electrical components in one move.

• Pricol is in active discussions with Hero, Honda, and Bajaj to supply plastic parts from the new division.

• Cross-selling to existing dashboard customers is the natural and logical next step.

• The acquisition enables in-house manufacturing of plastic casings for Pricol’s own instrument clusters.

• Pricol is planning another ₹500 crore capex over the next 2 years for this division.

• Pricol is entering the global supply chain of Tier-1 players like Autoliv through this acquisition. A transition from local OEM supplier to global component partner is underway.

• The acquisition is larger in strategic impact than its ₹80 crore price suggests.

5. Technology Partnerships

Pricol is transforming from a hardware manufacturer into a software-driven automotive technology company. Global licensing and partnership deals cover cloud connectivity, battery management, and advanced vehicle controls.

• Pricol partnered with Sibros Technology to bring connected vehicle solutions to Indian OEMs. The Sibros cloud platform enables advanced vehicle data analytics and remote diagnostics.

• The Sibros platform enables Over-The-Air firmware updates for vehicles in the field. OEMs can fix software issues without a physical service center visit. This capability is quickly becoming expected on every new-age vehicle platform.

• To strengthen the EV position, Pricol signed a licensing deal with BMS PowerSafe from Europe. This allows in-India manufacturing of Battery Management Systems. BMS is the most critical electronic component in any modern EV battery pack.

• Pricol teamed up with Domino S.r.l. of Italy for advanced handlebar throttles and switches for premium motorcycles. Pricol now occupies both the dashboard and the handlebars on high-end bikes.

• A partnership with TYW brings Heads-Up Displays to Indian vehicles. Driving information is projected onto the windshield, keeping the rider focused on the road.

• The company invests approximately 4.5% of total revenue in R&D annually. This is significantly higher than most traditional auto component makers in India.

• Over 470 specialized product and process engineers work across two dedicated technology centers. New product launches happen every few months at this cadence. High Product velocity.

• Also, every technology partnership is designed to work for both petrol and electric vehicles. This propulsion-agnostic design ensures relevance across all market scenarios.

6. EV Agnostic Strategy

Pricol has structured its product portfolio so the EV transition is an opportunity, not a disruption. Electric bikes demand more expensive digital displays, advanced sensors, and thermal management pumps compared to petrol bikes. Every ICE bike converted to electric generates higher revenue for Pricol.

• Management confirmed that the EV transition will not materially impact revenue negatively. Most dashboard and sensor products are needed equally in ICE and electric vehicles.

• Electric vehicles require larger TFT displays to show battery range and health metrics in real time. This plays directly into Pricol’s strength.

• Pricol is already a preferred supplier to Ather Energy and supplies 7-inch TFT displays for the TVS iQube.

• Specialized electric oil pumps and coolant pumps for battery thermal management are now part of the product portfolio. These replace traditional mechanical pumps used in combustion engines.

• Battery Management Systems are in active testing with large manufacturers for upcoming EV models. Revenue from BMS is expected to commence from FY27.

• Electric vehicles carry more sensors per unit to monitor battery temperature and voltage constantly. Pricol’s sensor division captures this increased per-vehicle sensor count. More sensors per EV means more Pricol revenue per vehicle sold.

• New business wins include instrument cluster orders for the upcoming electric scooters of Honda and Suzuki. Japanese OEMs trusting Pricol for their EV platforms is a strong signal of technology credibility.

• Telematics solutions help EV fleet operators monitor real-time charging status and vehicle health remotely. This software layer adds recurring value on top of one-time hardware sales.

• The recent SACL plastic acquisition also supports the EV strategy. EV makers need lightweight plastic components to improve driving range per charge. Pricol now supplies both the digital screen and the lightweight casing for electric two-wheelers.

• By FY25, Pricol had launched EV-Ready product variants across all verticals. It is among the few Indian auto component companies with a complete EV product basket.

7. Vertical Integration

Pricol manufactures almost everything in-house, from tooling dies and circuit boards to factory robots. This vertical integration protects margins from supply chain disruptions and maintains consistent quality control.

• Pricol operates 15 manufacturing facilities across all major automotive clusters in India and Indonesia. Geographic spread enables just-in-time delivery to OEM customers.

• The company builds its own 4D robots for its own production lines. These handle repetitive tasks like placing tiny electronic parts at high speed. In-house robotics eliminates dependence on expensive imported automation equipment.

• An in-house tool room with six CNC machines enables design and manufacture of custom dies internally. New product development timelines are shorter than competitors who outsource tooling.

• Six Surface Mount Technology lines handle all electronic circuit board assembly in-house. Complete control over the most critical quality checkpoint in the product sits within Pricol.

• Every product leaving a Pricol facility carries a unique QR code for full production traceability. Quality issues can be traced back to specific raw material batches precisely.

• Assembly processes are now almost fully automated using vision cameras for real-time quality inspection. Human errors in checking dashboard functionality are eliminated structurally. Moving towards zero-defect output.

• The in-house PRA Lab tests all new products under extreme heat and vibration before any OEM delivery. Durability is validated internally before the product reaches the customer.

• By 2025, 62% of the company’s power comes from renewable sources like wind and solar. The target is 100% renewable by 2026.

8. Actuation Segment Expansion

Pricol is building a second growth engine through actuation and fluid management products. It has entered the disc brake market, expanded pump capabilities, and deepened its handlebar controls business. New mandatory safety regulations from January 2026 provide a clear regulatory tailwind.

• Pricol entered the disc brake market and began commercial deliveries to 6 OEM customers.

• From Jan 2026, ABS becomes mandatory for additional two-wheeler categories in India.

• Drum brakes will give way to disc brakes at significant volume. Pricol is ramping disc brake manufacturing capacity ahead of this specific regulatory deadline.

• Active discussions with TVS and Bajaj for new supply agreements are underway.

• In fluid management, the company makes advanced oil pumps and water pumps for engine thermal control. These are critical for maintaining correct temperature and lubrication in vehicles.

• Variable Displacement Oil Pumps adjust oil flow based on engine speed to reduce fuel consumption. These are premium, high-precision products with limited global competition.

• Fuel pump modules are designed to meet BS-VI emission standards.

• Cabin Tilting Systems for heavy commercial trucks are a niche, profitable product line with limited competition.

• The Wiping Systems division provides motors and linkages for windshield wipers across all vehicle segments. Smart features are now being layered onto traditionally mechanical wiper systems.

• Through the Domino partnership, Pricol manufactures advanced throttles and switches for motorcycle handlebars.

• Mechanical and actuation products contributed 20% of standalone revenue in FY25. Management expects this vertical to grow faster as export orders build.

9. Global Customer Wins

Pricol’s ability to win and retain the world’s most demanding OEMs is a core consistency driver. It supplies to Honda, Suzuki, Yamaha, Royal Enfield, Ducati, and Harley Davidson. Long-term relationships with Japanese and European manufacturers reflect technical credibility and operational reliability.

• Winning Honda as a new customer after years of sustained effort is a significant milestone. Mass production for Honda motorcycles and electric scooters will commence shortly.

• Suzuki has consecutively awarded Pricol its Best Supplier Award for four years running. Pricol is the primary cluster supplier for the Suzuki Access and Burgman scooters.

• The company is in advanced commercial discussions with Yamaha for future model supply. Factory audits have been cleared successfully.

• Supplying all three major Japanese OEMs in India simultaneously is a big milestone for any domestic supplier.

• Royal Enfield relies on Pricol for its Himalayan and 650cc twin series instrument clusters. These require a blend of aesthetics and functionality.

• Pricol supplies to premium international brands like Ducati and Harley Davidson.

• Management’s strategy of increasing content per vehicle is working consistently. Pricol now supplies sensors and fuel pumps to the same OEM alongside the dashboard.

• Between 2020 and 2022, the company hived off loss-making subsidiaries in Brazil, Mexico, and the Czech Republic. Stopping the cash drain freed up capital and management bandwidth for domestic growth.

10. Risks and Red Flags

• Minda Corporation acquired a 15.7% stake in Pricol through open market purchases announced on February 17, 2023, for approximately ₹400 crore at an average price of ₹208.9-209 per share.

• This directly threatened the current management’s control of the company. Indicating possibilities of a hostile takeover.

• Pricol contested Minda’s subsequent plan to acquire up to 24.5% more stake by filing an objection with the Competition Commission of India (CCI) in May 2023. Minda sold its entire 15.7% stake via open market on January 17, 2024, for about ₹660 crore, after the regulatory battle. Pricol’s promoter stake has since stabilized around 38.5%

• In September 2009, the HR Vice President was killed during a violent worker protest at a Coimbatore factory. This created a legal and reputational crisis of serious scale.

• Management says labor relations are now cordial with long-term wage agreements in place. However, the sensitivity of Pricol’s Coimbatore workforce remains a key item to monitor.

• 69% of revenue comes from the two-wheeler segment alone. Any sudden slowdown in domestic bike sales would significantly impact overall business performance.

• Raw material costs, particularly copper and plastic, are volatile. OEM contracts allow cost pass-through, but there is always a lag of several months. Margin compression during this transition window is a risk.

• A supply chain disruption involving semiconductor supplier Nexperia has been formally flagged by the company. Global chip shortages can force production line halts. Semiconductor dependency is an industry-wide risk.

• Critical display components and sensors are imported from China and Taiwan. Deteriorating trade relations with China could cause significant and sudden parts shortages.

• Earlier international expansions into Brazil, Mexico, and the Czech Republic failed at significant cost. Future foreign acquisitions must therefore be evaluated with heightened scrutiny and discipline.

• ABS mandate implementation delays could slow the disc brake revenue ramp-up materially. Pricol has committed ₹500 crore in capex, and regulatory timing directly affects payback timelines.

• Global electronics giants with deep pockets are actively entering the vehicle dashboard space. Pricol’s market share moat is strong but requires continuous innovation to sustain.

That’s it for today.

If you liked our analysis, do check out our Premium Reports that could add more value.

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.

🟢 Patel Engineering received a letter of award for the Renuka Ji Dam Project valued at ₹910.08 Cr.

🟢 J K Cements was declared the preferred bidder for the Dommarnandyala Block-3 mining lease in Andhra Pradesh, which spreads over 1,188 hectares.

🟢 Samvardhana Motherson International formed a joint venture with Hellmann Worldwide Logistics to expand global automotive supply chain solutions.

🟢 Firstsource Solutions launched a full-stack agent-first AI operating model.

🟢 Lemon Tree Hotels signed a new resort in Lonavala, Maharashtra, further strengthening the company’s leisure portfolio.

🟢 Nestle India added a new Munch production line at its Sanand Plant with a ₹225 Cr investment and a capacity of 8,300 TPA.

🔴 HDFC Bank’s Chairman Atanu Chakraborty resigned citing ethical concerns and governance discomfort, with his statement indicating issues observed over the last 2 years.

🟢 RBI stated there is no material concern for HDFC Bank, which remains financially sound.

🔴 IRDAI announced zero commission on all insurance products on BIMA Sugam, a negative development for PB Fintech’s Policy Bazaar platform.

🟢 Centre offered an extra 10% LPG to states committing to PNG shift, benefiting IGL, MGL, and Gujarat Gas.

🔴 Aluminum fell more than 8% on the LME, the biggest drop since 2018, negatively impacting Hindalco Industries and NALCO.

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.

🟢 G R Infraprojects emerges as L1 bidder for ₹2,440.87 Cr NH-33 Greenfield project in Bihar under Hybrid Annuity Mode.

🟢 Ahluwalia Contracts secured a ₹393.04 Cr domestic contract from the Airport Authority of India (AAI) for construction of a new Greenfield airport.

🟢 Mazagon Dock Shipbuilders signs USD 39M contract with Shipping Corporation of India for methanol dual fuel PSV construction.

🟢 Manappuram Finance received final RBI approval for Bain Capital to invest approximately ₹4,385 Cr, acquiring joint control alongside existing promoters.

🟢 Belrise Industries unit signs agreement to buy Chester Hall Precision Engineering Holdings for £13.2M, marking strategic entry into global aerospace and defense sectors.

🟢 Delhivery International launches Economy Air Shipping to UK, Canada, and Australia.

🟢 Precision Wires India receives BIS certification for manufacturing copper wire rods; commercial production expected to start before end of financial year.

🟢 Awfis Space Solutions crosses 100 centres milestone in South India, surpassing 70,000 seats, serving over 3,400 clients.

🔴 Physicswallah receives ₹263.34 Cr income tax demand notice for AY 2023-24 after authorities treated capital investments from AIFs as taxable income.

🔴 Govt imposes import curbs on silver jewellery studded with diamonds, impacting supply chains of Kalyan and Titan.

🔴 DGCA directs airlines to give 60% seat selection free on any flight to ensure fair access.

🔴 Govt says there is no question of privatising BSNL. “BSNL belongs to the people of India”.

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.

🟢 Kalpataru Projects awarded new orders worth ₹2,471 Cr across metro rail, Power T&D, and building sectors.

🟢 Mastek secured initial £15 million (₹185 Cr) two-year contract with FCA to strengthen digital delivery capability with possible extension.

🟢 Time Technoplast secured ₹115.56 Cr order from a PSU for Type IV Composite CNG Cascades to be executed within one year.

🟢 Supreme Power Equipment secured ₹113.61 Cr orders from KSEB and Tamil Nadu Power Distribution for new projects.

🟢 Mafatlal Industries bagged ₹114 Cr five-year order from Odisha Computer Application Centre for establishing 500 robotic laboratories across Odisha.

🟢 Subex bagged €2.7 million EAM deal from a leading North African telecom operator.

🟢 Varun Beverages acquiring 100% equity stake in South Africa’s Crickley Dairy for enterprise value of ₹131.4 Cr.

🟢 Strides Pharma Science entered agreement to buy and in-license generic brands from Sandoz in Africa for US$12 million with deal expected to close by end of Q2 FY27 pending regulatory approvals.

🟢 Zydus Lifesciences entered licensing agreement with Lupin for co-marketing Semaglutide injection in India under brand names Semaglyntm and Livarise.

🟢 Ather Energy doubled service network to 500 centres across India reflecting growing retail footprint and strong demand.

🟢 TCS launched Rapid Outcome AI platform powered by NVIDIA to accelerate AI deployment across industries.

🟢 Civil Aviation Ministry proposes up to ₹1,800 Cr as incentives to manufacture drones in India benefiting companies like IdeaForge and Time Techno.

🟢 Finance Minister Nirmala Sitharaman confirmed India’s domestic LPG supplies will remain steady amid Middle East tensions.

🟢 LPG tanker Nanda Devi carrying ~45,000 metric tonnes of gas arrived at Vadinar port Gujarat after crossing Strait of Hormuz.

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.

🟢 Power Mech Projects secured a ₹710 Cr order from Adani Group for O&M and overhauling of a 5x660MW thermal power plant in Maharashtra.

🟢 Suntech Infra Solutions received a work order from Indo Asia Copper Limited worth ₹312.9 Cr.

🟢 RVNL received a Letter of Award from NMDC for refurbishment at Kirandul and Bacheli worth ₹952.7 Cr.

🟢 Tejas Networks was selected for a 4G network expansion project in South Asia.

🟢 Goodluck India commenced first overseas dispatch of a $6 million order for 155mm heavy calibre empty shells from its Uttar Pradesh plant, marking entry into global defence supply chain.

🟢 Newgen Software secured a $2.22M (₹20.54 Cr) software deal from a leading Kuwait bank.

🟢 Reliance Industries signed a landmark binding 15-year green ammonia offtake agreement with Samsung C&T valued at over $3B, commencing H2 FY2029.

🟢 Bajaj Electricals acquired Morphy Richards brand rights in India and neighbouring markets for ₹141.4 Cr.

🟢 Intellect Design Arena announced a 50:50 joint venture with Fintel PLC in the UK to deploy an Agentic AI platform in the UK wealth management market.

🔴 Tata Motors Passenger Vehicles announced a price increase to partially offset rising commodity and input costs.

🔴 Alkyl Amines Chemicals suffered LNG supply disruption impacting ammonia production and temporarily suspended manufacturing of methylamines and ethylamines at 3 sites.

🟢 Carborundum Universal commenced commercial production of cutting and grinding wheels at Hosur, doubling annual capacity to over 90 million wheels.

🟢 Waaree Energies announced India’s largest 10 GW integrated ingot and wafer manufacturing facility in Nagpur.

🟢 Cupid announced development of a nitrile female condom targeting the global female condom market.

🟢 India’s February 2026 services trade surplus reached $23.15 billion, driven by exports of $39.53 billion (up from $31.65 billion YoY) and imports of $16.38 billion (up from $14.51 billion).

🔴 India February WPI Inflation YoY at 2.13% vs 1.81%.

🔴 Trump postponed his China visit by about a month, saying he needs to remain in the US.

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.

🟢 HFCL has signed a landmark 5-year, ₹10,159 crore (~$1.1 billion) global deal to supply high-fibre-count optical fibre cables.

🟢 VA Tech Wabag led JV secures a Mega order exceeding ₹1,000 Cr from CMWSSB for building Chennai’s city-wide looped water network.

🟢 Aurionpro Solutions wins its largest data centre order valued at ₹350 Cr from a leading hyperscale data centre operator for development of an AI-ready green data centre in India.

🟢 Bajel Projects secures ₹700 Cr+ ultra-mega EPC order from Maharashtra State Electricity Transmission Company (MSETCL) for a 400/220 KV substation at Saswad, Pune.

🟢 SEAMEC secures ₹410.74 Cr ONGC contract for O&M of MSV “Samudra Sevak” in consortium with Supreme Hydro.

🟢 Data Patterns secured a ₹279 Cr contract from the Indian Meteorological Department to supply 34 Doppler Weather Radars.

🟢 Ramky Infrastructure subsidiary signs a 95-year concession agreement with MIDC for a ₹3,000 Cr High-Tech Pharmaceutical Park in Maharashtra on PPP basis.

🟢 Krystal Integrated Services secures a 3-year facility management contract worth approximately ₹364 Cr from Tamil Nadu Medical Services Corporation.

🟢 Tata Motors wins pan-India orders of over 5,000 buses from multiple State Transport Undertakings through competitive e-bidding with deployments scheduled in phases.

🔴 IndiGo suspends flight operations to Doha, Kuwait, Bahrain, Dammam, Fujairah, Ras Al Khaimah, and Sharjah till Mar 28, 2026.

🔴 IndiGo introduces a Fuel Charge from 14 March 2026 ranging from ₹425 to ₹2,300 per sector in response to an 85% surge in regional jet fuel prices.

🔴 Hindalco halted production of extruded aluminium products. It also clarified that aluminium extrusions halt was due to force majeure by gas suppliers and overall operations impact is less than 0.1%.

🟢 Adani Ports commissions the 4 MMTPA Haldia Bulk Terminal on the Hooghly River, India’s first fully automated dry bulk facility.

🟢 Heritage Foods inaugurates a new 24 million litre per annum ice cream facility in Shamirpet, Telangana aiming to scale its ice cream business fivefold.

🟢 India Govt official says uninterrupted gas supply is ensured to households with local LPG production increased by 30% compared to March 5 output.

🟢 India Govt official says all port operations are stable in India with priority berthing given to LPG carriers.

🔴 India Govt bars oil companies from issuing new LPG connections to consumers who already have Piped Natural Gas (PNG) connections.

🟢 Election Commission of India scheduled to announce Assembly election dates for Tamil Nadu, West Bengal, Kerala, Assam, and Puducherry.

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.

This week, Let’s explore the business & fundamentals of ZAGGLE PREPAID OCEAN SERVICES.

In the last 3 years…

- Stock price has grown 1.7x (from ₹200.55 to ₹347.63)
- Revenue TTM has grown 3.1x (from ₹553 Cr to ₹1,702 Cr)
- Operating Profit TTM has grown 1.9x (from ₹62 Cr to ₹115 Cr)
- PAT TTM has grown 5.6x (from ₹23 Cr to ₹129 Cr)

Take a look at the fundamentals chart below.

Performance Chart || Last 3 Years

Their Road to Consistency

1. Overview and Business Model

Zaggle operates at the intersection of enterprise software and financial services. Founded in 2011 in Hyderabad by serial entrepreneur Dr. Raj Narayanam, it evolved from a prepaid card issuer to a full-stack corporate spend management platform. Revenue grew from ₹240 crore in FY21 to ₹1,303 crore in FY25, a 52% CAGR. Currently, it is serving about 3,455 corporate clients.

• The B2B2C model onboards a corporate client and instantly activates their employees as platform users. One contract can unlock thousands of active end users. Structurally efficient by design.

• Revenue comes from three streams:

  

  • Program fees at approximately 48%. Program fees are interchange income from banking partners, earned each time a Zaggle-powered card is swiped. Zaggle earns roughly 1.7-1.8% of spend value on an 80/20 split. More the transaction volumes, more the upside.

  • Propel platform redemptions at 49%. Propel platform revenue is earned when employees and channel partners redeem reward points for brand vouchers and products. Zaggle captures a 10-15% take rate on redemptions. Volumes and festivity drive this engine.

  • SaaS subscriptions at roughly 3%. SaaS fees are monthly per-user charges for modules like Save for employee tax benefits and Zoyer for accounts payable. Pricing has risen from ₹99 to ₹249 per month. Small in share, but high-margin business.

• Zaggle has issued over 50 million prepaid cards cumulatively till date.

• Zaggle maintains 19 banking partnerships alongside Visa, Mastercard, and RuPay tie-ups for card issuance. This infrastructure took over a decade to build.

• CEO Avinash Godkhindi brings 15+ years across Citibank, Barclays, and ING Bank across 12 countries. Founder Dr. Narayanam previously built eYantra Industries to 4,500 clients in 45 countries at a 63% CAGR.

• 9M FY26 revenue of ₹1,260 crore nearly matched the entire FY25 revenue. PAT of ₹95 crore already exceeded FY25’s full-year profit of ₹87.5 crore. Growth is accelerating.

2. Recurring Software Revenue

Zaggle’s SaaS subscription business charges corporate clients monthly per-user fees for accessing expense management and accounts payable automation software. This segment is the smallest revenue contributor today but is the highest-margin anchor of the entire platform. It creates the workflow dependencies that feed every other revenue stream.

• SaaS platform fees surged 754% year-on-year in the quarter ending December 2025. It kind of indicates corporate willingness to pay for financial workflow software.

• Software fees hit a record ₹12 crore in Q3 FY26 alone, the highest ever for any single quarter.

• Indian CFOs are now actively seeking better spend controls, and management explicitly cited this shift in the Q4 FY24 earnings call.

• The Save platform manages employee flexible salary components and tax-exempt benefits under India’s evolving tax regime. It is now embedded in payroll processes at major corporates like Tata Steel and Toshiba.

• Zoyer automates accounts payable with three-way PO, GRN, and invoice matching. CFOs use it for real-time spend visibility and vendor reconciliation.

• BROME manages branch-level recurring expenses for distributed retail businesses. Clients like Blinkit and Physics Wallah deploy it across 850+ branches.

• ZatiX provides AI-powered spend analytics as a premium upsell on top of core SaaS modules. Clients pay more for insights they did not have before.

• TaxSpanner integration into Save creates a seamless tax filing journey for millions of existing users. This cross-sell deepens per-user value without any new client acquisition cost. Intelligent product bundling.

• Per-user pricing increased from ₹99 to ₹249 per month, a 151% monetization increase from the same installed base. Zaggle is extracting more from what it already owns.

3. Propel Rewards Flywheel

The Propel platform powers corporate gifting, employee recognition, and channel partner incentive programs. Revenue is earned when Propel Points issued to employees or dealers are redeemed for vouchers and products across 300+ brand partners. This is Zaggle’s largest revenue contributor and benefits from India’s formalizing incentive economy.

• Propel platform revenue reached ₹721.8 crore in FY25, a 70.8% jump over FY24.

• Q3 FY25 alone saw 87% growth in Propel revenue, driven by festive season redemptions around Diwali.

• Over 3,550 corporates had onboarded their reward programs onto Propel as of late 2025. This creates a two-sided marketplace. Each new client makes the platform more attractive to merchants.

• Zaggle aggregates thousands of merchants, enabling point redemptions across food, travel, electronics, and more. Greater choice increases redemption rates. Higher redemption rates translate directly into higher revenue for Zaggle.

• Propel Points revenue stood at ₹247 crore in Q2 FY26 alone. It indicates that full-year contributions will substantially exceed FY25 levels.

• Approximately 60% of Zaggle’s annual business falls in H2 due to festive and year-end reward cycles. This is a known and manageable cash flow pattern. Predictable seasonality is far less dangerous than erratic demand.

• Zaggle provides a multilingual interface on Propel to serve blue-collar workers and retail channel partners.

• Propel is also becoming a financial services entry point for gig workers through the new ZUGS offering.

4. Program Fee Scaling

Program fees are Zaggle’s most scalable revenue stream, earned from interchange income shared by banking partners on every card transaction. This revenue line grows directly with user spending volumes and does not require proportional cost increases.

• Program fees reached ₹545.6 crore in FY25, growing 69.5% over ₹321.8 crore in FY24. Interchange income has compounded at an 18%+ CAGR since FY21.

• Program fee revenue crossed ₹200 crore in a single quarter for the first time ever in Q3 FY26. Management expects this to become the new quarterly baseline.

• Zaggle earns roughly 1.7-1.8% of spend value through an 80/20 revenue-sharing arrangement with partner banks. This is recurring, spend-indexed, and scales with the consumption habits of the user base.

• Float income on prepaid card balances loaded by corporates but unspent by employees adds another layer to the positive economics. Other income including float grew from ₹0.3 crore in FY21 to ₹24.5 crore in FY25. Hidden but compounding.

• Incentive costs currently represent 66-67% of program fees. Company Management has guided to reduce this toward approximately 50% over five years. If achieved, net margins on this segment improve materially without requiring any revenue growth.

• The product mix is deliberately shifting toward commercial credit cards, which carry higher interchange rates than standard prepaid cards. HDFC Bank and AU Small Finance Bank credit card partnerships are serving this upgrade.

• Rio Money, acquired for ₹22 crore, added UPI-linked consumer credit capabilities. Zaggle plans to issue one million credit cards over the next five years. Credit card interchange is meaningfully higher than prepaid.

5. Banking Network Depth

Zaggle’s 19 banking and card network partnerships form a structural moat that would take any new competitor time to build. Banks provide the regulatory and underwriting infrastructure. Zaggle handles software integration, customer acquisition, and user experience.

• Zaggle works with private banks including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, alongside public sector banks including Bank of India, PNB, Canara Bank, and Indian Bank.

• A 7-year growth agreement with Visa Worldwide was signed in Dec 2025 for co-branded domestic prepaid cards.

• A 5-year referral partnership with Mastercard covers credit card distribution. A separate 7-year Asia-Pacific Mastercard agreement handles domestic prepaid cards. Both global networks are commercially committed to Zaggle.

• Standard Chartered Bank signed a 5-year referral agreement in August 2025 to offer Zaggle software and prepaid cards to Standard Chartered’s entire corporate client base.

• The HDFC Bank credit card partnership, formalized in Q3 FY25, bundles Zaggle software with payment instruments for corporates.

• AU Small Finance Bank launched co-branded retail credit cards with Zaggle in September 2025, including an AI-powered spending recommendation engine.

• The Yes Bank partnership enables a Rio RuPay credit card accessible via QR codes on the UPI interface.

• Banking partners carry regulatory, underwriting, and balance sheet risk. Zaggle handles software, client acquisition, and user experience. There is clear dependency on each other.

6. Inorganic Growth Engine

Zaggle has deployed IPO and QIP capital to build new capabilities through 6 targeted acquisitions in under 2 years, covering tax filing, UPI infrastructure, enterprise automation, and rewards. Each acquisition adds a monetization layer to the existing corporate client base without requiring proportional new client acquisition effort.

• TaxSpanner was acquired for ₹57 crore in September 2024 at a 98.3% stake, adding tax filing and financial wellness to the platform. Integrated into Save, it turns expense management into a complete tax compliance journey.

• Mobileware Technologies was acquired at a 38.34% stake for ₹23 crore, bringing NPCI-certified UPI and IMPS infrastructure. Mobileware’s revenue nearly doubled to ₹34 crore in FY25. It has been re-branded as 86400.

• Dice Enterprises was acquired for approximately ₹123-150 crore in June 2025, strengthening enterprise automation in travel, procurement, and accounts payable. It immediately extended Zoyer’s capabilities in a meaningful way.

• Rio Money (Rivpe Technology) was acquired for ₹22 crore in early 2025, giving Zaggle entry into UPI-linked consumer credit.

• Greenedge Enterprises added experience-based premium rewards including golf travel to the Propel portfolio.

• EffiaSoft, a Hyderabad-based billing software provider, was acquired at a 51% controlling stake for ₹41 crore. Billing software sits at the natural intersection of vendor management and spend control workflows.

• Total acquisition spending exceeds ₹400 crore across six deals, funded primarily by QIP proceeds of ₹595 crore. Each deal has a strategic rationale. Capital deployment has been fast.

7. Platform Stickiness

Zaggle’s deepest competitive advantage comes from embedding its software into corporate payroll, accounting, and ERP systems. This creates switching costs that far outlast contract periods. The deeper the integration, the harder it becomes for any client to replace, keeping churn consistently below 1.5% year after year.

• Customer churn has remained below 1.5% in FY25. Enterprise SaaS typically targets under 5%. Below 1.5% signals a product embedded in mission-critical workflows.

• Zaggle’s ZIG integration gateway provides API connections to SAP, Oracle, Tally, and major HRMS platforms. Replacing this would require a full IT migration project. Sticky business.

• Approximately 70% of total revenue comes from clients using multiple platform modules. Multi-module clients spend more, churn less, and require no incremental sales effort.

• Customer acquisition cost stays below 5% of revenue because individual users are activated through the corporate contract, not acquired independently.

• No listed peer in India offers the full stack. Happay was sold to MakeMyTrip. Open Financial Technologies posted ₹58 crore in FY25 revenue against cumulative losses of ₹1,831 crore. SAP Concur lacks embedded payment rails. Zaggle is filling the gap.

• Existing Save module clients are routinely cross-sold into ZatiX analytics, Zoyer AP automation, and TaxSpanner tax filing. Each additional module deepens the integration.

• The Smart Employee Purchase Program lets employees buy phones and electronics through tax-efficient leasing on the Zaggle app. This extends daily utility beyond expense claims and reimbursements.

• The Propel network creates a reinforcing loop. More merchants make reward points more valuable. More valuable points attract more employees. More employees attract more corporates. The network grows its own value.

• Recent marquee client additions include Google, Blue Star, HDFC Ergo, Apollo Health, Pernod Ricard India, and Chennai Super Kings across FY25 and FY26.

8. AI Operating Leverage

Zaggle has embedded artificial intelligence across product development, customer support, fraud detection, and vendor reconciliation. The impact is already visible in the financials. In FY25, net profit grew 99% on 68% revenue growth. Cost structures are not scaling proportionally with the top line. That asymmetry is called Operating leverage.

• AI reduced product development cycles from over 75 days to under 30 days, a 60% improvement in time-to-market. In fintech where timing determines adoption, speed is a competitive weapon. Faster launches mean earlier revenue recognition.

• The AI chatbot RazBot now deflects 60% of customer service tickets, with a stated target of 99% deflection. Every percentage point saved is support headcount that does not need to be added.

• Agentic AI workflows independently execute vendor reconciliations, compliance monitoring, and spend approval processes. These were once labor-intensive manual tasks. Automating them directly reduces cost-per-transaction without compromising accuracy.

• Adjusted EBITDA crossed ₹50 crore in a single quarter for the first time in Q3 FY26. Management attributed this milestone explicitly to improved operational agility from AI deployment.

• ZatiX uses machine learning for expense categorization, fraud detection, and policy enforcement. These features are sold as premium analytics to CFOs.

• Model Context Protocol (MCP) adoption enables standardized data interactions for faster client onboarding.

• Machine learning models actively flag unauthorized spends and detect mule account activity. Fraud prevention here is both a product feature and a regulatory compliance tool.

9. Global Expansion

Zaggle is extending its corporate spend platform beyond India into international payments, the UAE market, GIFT City cross-border services, and government contracts. These are early-stage moves, but each is backed by a regulatory filing, a signed agreement, or specific capital allocation.

• The board approved Zaggle Payments IFSC Limited in GIFT City in February 2026 for cross-border payment services targeting Indian corporates with international operations. The regulatory foundation is already laid.

• The UAE entity is in its final formation stages, with Abu Dhabi identified as the primary MENA base. Direct engagement with UAE government stakeholders, including the Minister of AI, has already happened.

• An MOU with US-based Mesh Payments was signed to serve Indian corporates managing global business expenses.

• The Zaggle GlobalPay Forex Card automates cross-border expense reporting for international business travelers. For Indian multinationals with staff traveling regularly, this addresses a genuine pain point.

• Zaggle secured a 5-year contract with GIFT City (GIFTCL) for a co-branded citizen card and visitor management system. Government accounts for approximately 8% of India’s spend management market.

• The UAE base is positioned as a springboard into Africa and Europe over the longer term. The $1 billion annual revenue target within the next 5-7 years explicitly includes international market contributions.

10. Risks and Red Flags

Zaggle operates in a regulated, fast-moving environment where business model risks are real and require scrutiny.

• The RBI’s 2025 Payment Aggregator Directions reclassified platforms like Zaggle as financial infrastructure. Compliance burdens for anti-money laundering and fraud monitoring have materially increased. The regulatory weight on this business is meaningfully heavier than it was a couple of years ago.

• Prepaid card interchange rates can be capped by regulatory action. The 2020 zero-MDR policy on UPI and RuPay debit cards demonstrated how quickly a revenue stream can compress. Approximately half of Zaggle’s current revenue is interchange-dependent. This is a structural risk.

• SaaS fees represent only about 3% of FY25 revenue. Despite the 754% quarterly growth rate, absolute size remains small. Until software revenue grows substantially in share, Zaggle will still be classified as a transaction facilitator and not a software business.

• Mutual fund holdings declined from 8.72% in December 2024 to 3.70% in December 2025, a sustained three-quarter institutional selloff. FII holdings also fell from 15% in 2023 to 7.61% in 2025.

• Operating cash flow turned positive only in FY25 at a modest ₹20 crore on ₹1,303 crore revenue. Free cash flow generation at scale is still unproven. The ₹653 crore cash buffer provides time, but it is finite.

• Point redemption costs remain at approximately 49% of total revenues and rose further in late 2025. If incentive intensity does not normalize toward management’s stated 50% of program fees target, margin expansion stalls regardless of top-line growth.

• Zaggle’s revenue depends significantly on Visa, Mastercard, and its top banking partners. A global policy shift from either card network, or deterioration in any major bank partnership, could disrupt card issuance.

• Large banks like HDFC Bank and Kotak could theoretically build their own corporate expense management platforms and bypass intermediaries like Zaggle.

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.

🟢 JK Lakshmi Cement has been declared the preferred bidder for the Juipahar Limestone Block (A and B) in Assam, covering 405 hectares.

🟢 VA Tech Wabag bagged a Mega PPP order from CMWSSB for a 45 MLD TTRO plant in Chennai, involving 18 months of refurbishment followed by 18.5 years of operations.

🟢 Enviro Infra Engineers secured a ₹411 Cr sewerage EPC project from Bihar Urban Infrastructure Development Corporation under AMRUT 2.0.

🟢 Aarti Industries secured a USD 150 million medium-term supply contract with a global agrochemical major valid until March 2030.

🟢 Ceigall India emerged as L1 bidder for 4 MoRTH road EPC projects in Arunachal Pradesh with an aggregate bid cost of ₹2,149.62 Cr (74% JV share).

🔴 Zomato and Swiggy services have been disrupted in Andhra Pradesh

🟢 TVS Motor launched the TVS Orbiter V1 electric scooter starting at ₹49,999 along with a Battery-As-A-Service model across its EV lineup.

🟢 Zydus Lifesciences launched AI-powered Continuous Glucose Monitoring devices Diasens and GlucoLive developed with TatvaCare.

🔴 Balaji Amines says the Middle East war has disrupted LNG supply causing an ammonia shortage that is impacting operations.

🟢 Wanbury received Brazilian ANVISA approval for Sertraline Form II, strengthening its 75% market share in Brazil.

🔴 India’s February inflation rose to 3.21% from 2.75% in January.

🟢 NSE has appointed Morgan Stanley and 19 others for its India IPO.

🟢 BSNL is receiving ₹3.22 lakh Cr worth of government revival packages covering capital infusion, debt restructuring, and viability gap funding for rural telephony.

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.

🟢 Jindal Steel was declared preferred bidder for the Thakurani-A1 Iron Ore Block in Odisha containing approximately 50 million tonnes of resources.

🟢 Wipro signed a multi-year contract with TruStage to modernize its retirement services using AI-powered Wipro Intelligence suite.

🟢 KEC International secured new orders worth ₹1,476 Cr for T&D projects.

🟢 Vascon Engineers secured a ₹115.9 Cr EPC work order for Lotus Park development (54,000 sq mtrs) in Ahmedabad from Ahmedabad Municipal Corporation with a 24-month timeline.

🟢 Dilip Buildcon received a Letter of Intent for a ₹1,850 Cr power transmission project in Karnataka involving a 400 kV substation on a BOOT-based contract.

🟢 Adani Enterprises acquired a 14.2% stake in Air Works India (Engineering) Private Ltd, an MRO services company, for undisclosed consideration.

🟢 Servotech Renewable Power System and Electra EV jointly secured a 20-year patent for a low-voltage EV charging device.

🟢 Ashok Leyland commenced construction of a new ₹400-500 Cr greenfield battery pack manufacturing facility in Tamil Nadu to localise EV battery production.

🔴 IDFC First Bank is under investigation as India’s financial crime fighting agency conducted searches to investigate alleged fraud at the bank.

🔴 Mahanagar GAS supply to industrial and commercial customers impacted by gas curtailment.

🔴 Orient Bell’s Hoskote plant will receive gas at only 80% of past 6-month average consumption as GAIL Gas declares force majeure and restricts gas supply to industrial customers, with potential revision in gas pricing.

🔴 Hindustan Organic Chemicals shut its Cumene plant at Kochi after Bharat Petroleum Corporation Limited stopped LPG supply.

🔴 Kothari Petrochemicals announced force majeure due to Middle East gas supply restrictions with financial impact yet to be ascertained.

🔴 Tehran says nearly 10,000 civilian sites have been bombed and more than 1,300 civilians killed since the war began on February 28. The conflict is now in its 12th day with no clear diplomatic off-ramp in sight.

🟢 The IEA announced a record release of 400 million barrels of crude oil to stabilise global energy markets disrupted by the war.

🟢 India government declared the country is ready for any unprecedented demand for coal.

🔴 About 47.4 MMSCMD of gas supply is affected due to the Middle East crisis with 2 LNG cargoes currently en route to India.

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.