Author: Sreelatha M

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Gujarat tops NITI Aayog investment index

Gujarat has emerged as the top performer in NITI Aayog’s Investment Friendliness Index 2026, reinforcing its position as one of India’s most attractive destinations for businesses and investors.

The state secured the highest ranking due to its strong industrial infrastructure, investor-friendly policies, ease of doing business and efficient governance. The index evaluates states on parameters such as regulatory reforms, infrastructure, land availability, skill development and investment facilitation.

Officials said the rankings are aimed at encouraging healthy competition among states and improving the overall investment climate, helping attract domestic and global investments while boosting economic growth and job creation.

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Leaders

Airbus sees robust demand for new aircraft

Global aerospace giant Airbus remains optimistic about the future of the aviation industry, with the company’s Chief Executive Officer saying demand for new aircraft continues to stay strong despite mounting challenges facing airlines worldwide. While airlines are grappling with rising costs, supply chain disruptions and geopolitical uncertainties, passenger demand for air travel is keeping the long-term outlook for the sector positive.

Speaking about the state of the aviation industry, Airbus CEO Guillaume Faury said airlines are operating in an environment shaped by changing economic conditions, higher fuel prices and ongoing global uncertainty. However, these challenges have not weakened the need for modern, fuel-efficient aircraft, which continue to attract strong interest from carriers across the world.

Faury noted that global air travel has recovered steadily over the past few years, encouraging airlines to expand their fleets and invest in next-generation aircraft. Rising passenger traffic, particularly in fast-growing markets across Asia and the Middle East, has strengthened confidence in long-term fleet expansion plans despite short-term economic pressures.

According to Airbus, airlines are increasingly focusing on replacing older aircraft with more fuel-efficient models that help reduce operating costs and lower carbon emissions. This trend has become even more important as aviation companies work towards meeting sustainability targets while coping with fluctuating fuel prices.

The Airbus chief acknowledged that the airline industry continues to face several operational hurdles. Aircraft manufacturers and suppliers are still dealing with supply chain bottlenecks, delays in the delivery of critical components and shortages of skilled workers. These challenges have slowed aircraft production across the aerospace sector and extended delivery timelines for customers.

Despite these obstacles, Faury said Airbus remains confident about fulfilling its long-term production plans. The company continues to work closely with suppliers to strengthen manufacturing capacity and improve the availability of components required for aircraft assembly.

One of the biggest challenges facing airlines today is the sharp rise in crude oil prices, which directly affects aviation fuel costs. Higher fuel expenses increase operating costs for carriers and often force airlines to review ticket prices, capacity plans and profitability targets. Even so, Airbus believes the industry’s long-term growth story remains intact as demand for air travel continues to outpace temporary market disruptions.

The company also pointed to the increasing importance of fleet modernisation. Many airlines are replacing ageing aircraft with new-generation jets that consume less fuel, produce fewer emissions and require lower maintenance costs. Such investments, Airbus believes, will help airlines remain competitive while meeting stricter environmental regulations.

Faury highlighted that emerging markets continue to drive global aviation growth. Countries with expanding middle-class populations and rising disposable incomes are witnessing higher demand for domestic and international travel. This trend is expected to create sustained demand for commercial aircraft over the next two decades.

The Airbus CEO also emphasised that aviation remains a critical part of the global economy, supporting tourism, trade and business connectivity. As international travel continues to recover, airlines are expected to maintain their fleet expansion plans despite economic uncertainties and geopolitical risks.

While airlines face short-term challenges, the long-term fundamentals remain strong. Growing passenger demand, increasing tourism and the need for more fuel-efficient aircraft are expected to support aircraft orders for manufacturers like Airbus and Boeing in the years ahead.

At the same time, analysts caution that supply chain issues remain one of the biggest risks for the aerospace sector. Delays in engine deliveries, component shortages and production constraints could continue to affect aircraft deliveries even as customer demand stays robust.

Airbus has repeatedly stressed that collaboration with suppliers will be essential to overcoming these challenges. The company is investing in expanding production capacity while working to ensure timely deliveries to airline customers across different regions.

While airlines navigate rising costs and operational pressures, Airbus remains confident that the aviation sector’s long-term growth prospects are intact. With global travel continuing to recover and airlines investing in more efficient aircraft, the company sees strong demand supporting the industry’s future despite today’s uncertainties.

Looking ahead, Airbus expects the global aviation industry to remain resilient despite economic headwinds. The company believes that increasing passenger traffic, fleet renewal programmes and the transition towards more sustainable aviation will continue to drive demand for commercial aircraft.

Also Read: No forced service charge, Centre tells restaurants

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Beyond

No forced service charge, Centre tells restaurants

The Centre has stepped up its crackdown on restaurants that continue to levy mandatory service charges, making it clear that customers cannot be forced to pay the additional amount. Union Consumer Affairs Minister Pralhad Joshi on Monday warned that restaurants violating government guidelines and consumer protection laws would face strict action, including penalties.

The latest warning comes as the government intensifies its efforts to curb unfair billing practices in the hospitality sector. According to Joshi, action has already been initiated against 41 restaurants across the country after complaints that they were imposing mandatory service charges on customers despite clear government directions.

Speaking on the issue, the minister said a service charge is entirely voluntary and should never be treated as a compulsory payment. Customers have the right to decide whether they want to pay the charge based on the quality of service they receive. Restaurants, he said, cannot automatically add the amount to bills or refuse to remove it if a customer objects.

Joshi reiterated that forcing diners to pay a service charge amounts to an unfair trade practice under the Consumer Protection Act. He urged restaurant owners to comply with the government’s guidelines and warned that establishments ignoring the rules could face legal action and financial penalties.

The government has also appealed to consumers to be aware of their rights while dining out. If a restaurant insists on collecting a mandatory service charge or refuses to remove it from the bill, customers have been asked to report the matter through the National Consumer Helpline or the consumer grievance portal. Officials said consumer complaints play an important role in identifying repeat offenders and ensuring timely action.

The Department of Consumer Affairs has repeatedly clarified that a service charge is different from statutory taxes such as Goods and Services Tax (GST). While GST is a government levy that customers are legally required to pay, a service charge is decided by the restaurant and cannot be made compulsory. Customers are free to pay the charge if they are satisfied with the service, but they cannot be forced or pressured into doing so.

The renewed warning follows several complaints from diners who claimed that some restaurants continued to add service charges to bills without seeking consent. In several cases, customers also alleged that restaurant staff refused to remove the charge even after they requested it. The government believes such practices create confusion among consumers, many of whom mistakenly assume the charge is mandatory.

Joshi said the Centre is committed to protecting consumer rights and ensuring transparency in restaurant billing. He added that businesses must adopt fair trade practices and clearly inform customers that service charges are optional. The objective, he said, is not to target the hospitality industry but to ensure that consumers are treated fairly and are billed honestly.

Consumer rights organisations welcomed the government’s latest move, saying stronger enforcement will help eliminate misleading billing practices. They argued that customers should have complete freedom to reward good service voluntarily instead of being compelled to pay an additional charge. Greater awareness, they said, would also help consumers distinguish between optional service charges and mandatory government taxes.

The hospitality industry, however, has maintained that service charges help restaurants reward staff and maintain service standards. Some restaurant bodies have argued that customers are informed about the charge through menus and notices displayed at their establishments. Even so, the Centre has reiterated that displaying notices does not make the charge mandatory, and restaurants must remove it if a customer refuses to pay.

Officials said monitoring and inspections will continue across the country, and more establishments could face action if violations are found. Consumers have also been advised to retain their bills and payment receipts while filing complaints, as these can serve as evidence during investigations.

The government’s latest warning signals a tougher approach towards protecting consumer rights and ensuring transparency in the hospitality sector. As enforcement gathers pace, restaurants are expected to review their billing practices and comply with consumer protection guidelines to avoid penalties. At the same time, customers are being encouraged to remain informed, check their bills carefully and report any violations. The Centre believes that greater awareness, combined with stricter enforcement, will help create a fairer dining experience where service charges remain voluntary and consumers can exercise their right to choose without pressure.

Also Read: Gold above ₹1,41,300, silver climbs to ₹2,19,400

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Beyond

India clears Wegovy for fatty liver

India has approved Novo Nordisk’s weight-loss drug Wegovy for treating metabolic dysfunction-associated steatohepatitis (MASH), a serious form of fatty liver disease. The decision marks an important step in expanding treatment options for patients with a condition that is becoming increasingly common because of rising obesity and diabetes rates.

The approval was granted by the Central Drugs Standard Control Organisation (CDSCO), allowing doctors to prescribe Wegovy for eligible adults with MASH. The drug was already approved in India for chronic weight management. With the latest clearance, its use now extends beyond obesity treatment to include a serious liver disease that can lead to irreversible damage if left untreated.

MASH, previously known as non-alcoholic steatohepatitis (NASH), occurs when excess fat builds up in the liver, triggering inflammation and scarring. Over time, the disease can progress to cirrhosis, liver failure or even liver cancer. Since symptoms often appear only in the later stages, many people remain unaware they have the condition until significant liver damage has already occurred.

Health experts say the approval comes at a crucial time for India, where lifestyle-related diseases are increasing rapidly. Rising obesity, type 2 diabetes and metabolic disorders have contributed to a growing number of fatty liver disease cases, making MASH a significant public health concern.

Wegovy contains semaglutide, a medicine that belongs to a class of drugs known as GLP-1 receptor agonists. It works by mimicking a naturally occurring hormone that helps regulate appetite, slows digestion and reduces food intake, leading to sustained weight loss. Researchers have also found that the drug improves metabolic health, which may help reduce liver inflammation and slow disease progression.

The expanded approval follows positive results from global clinical trials, where patients treated with Wegovy showed significant improvements in liver health. Studies found that many participants experienced reduced liver inflammation, while some also showed improvements in liver scarring. Researchers concluded that the treatment increased the likelihood of resolving MASH without worsening fibrosis, one of the key markers of advanced liver disease.

Medical experts believe the approval could benefit patients who have limited treatment options. Until now, doctors have mainly relied on lifestyle interventions such as weight loss, healthier diets and regular exercise to manage the disease. While these measures remain essential, maintaining long-term weight loss can be difficult for many patients, increasing the need for effective medicines.

Doctors, however, caution that Wegovy is not a substitute for healthy living. Patients prescribed the drug will still need to follow balanced diets, remain physically active and attend regular medical check-ups to monitor liver health and overall metabolic condition.

The approval also reflects growing recognition that obesity is linked to several serious health conditions beyond excess weight. In recent years, GLP-1 medicines like Wegovy have demonstrated benefits in managing obesity, type 2 diabetes, cardiovascular disease and now fatty liver disease, making them an important part of modern metabolic care.

For Novo Nordisk, the expanded indication strengthens Wegovy’s position as one of the company’s flagship medicines. Demand for GLP-1 therapies has surged globally, with increasing interest from both patients and healthcare providers because of their effectiveness in treating multiple obesity-related conditions.

India’s decision is expected to provide fresh hope for thousands of patients living with advanced fatty liver disease. As awareness of MASH continues to grow, healthcare professionals believe early diagnosis, timely treatment and lifestyle changes will remain the most effective strategy for preventing severe liver complications.

With Wegovy now approved for fatty liver disease, doctors have another evidence-based treatment option to address one of India’s fastest-growing lifestyle-related health challenges. The move is expected to improve patient care while reinforcing the importance of tackling obesity and metabolic disorders before they lead to serious long-term complications.

Also Read: Jensen Huang’s iconic jacket auctioned for $1 mn

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Corporate

JioStar’s Q1 revenue climbs 14%

JioStar has reported a strong start to the financial year, posting ₹10,946 crore in revenue for the first quarter as the Indian Premier League (IPL) continued to fuel growth across its television and digital businesses. The media and entertainment company also recorded a sharp rise in operating profit, reflecting the success of its sports broadcasting strategy and expanding digital audience.

According to the company’s latest financial results, Q1 revenue grew 14% year-on-year, supported largely by advertising and subscription income generated during the IPL season. The tournament once again proved to be one of India’s biggest media events, attracting millions of viewers across television and streaming platforms.

JioStar’s operating EBITDA surged 307% year-on-year, highlighting improved operational efficiency and stronger monetisation of premium content. The company attributed the sharp jump in profitability to higher advertising revenue, increased subscriber engagement and disciplined cost management.

The quarter marked the first full reporting period after the formation of JioStar, created through the merger of Reliance Industries-backed Viacom18 and Disney Star’s India business. The integration has brought together some of India’s biggest television channels, digital streaming services and sports broadcasting rights under a single media network.

A major contributor to the company’s performance was its exclusive coverage of the IPL, one of the world’s most valuable cricket tournaments. The league continued to attract record viewership, helping JioStar strengthen its position across both linear television and digital streaming.

Advertising remained a key growth driver during the quarter. Brands across sectors, including consumer goods, automobiles, financial services and technology, increased spending to reach the IPL’s massive audience. The cricket tournament traditionally attracts some of the highest advertising rates in Indian media, making it a crucial revenue generator for broadcasters.

Subscription revenue also improved as viewers increasingly consumed premium sports and entertainment content through JioStar’s digital platforms. The company has been focusing on expanding its streaming ecosystem by offering live sports, movies, television shows and original programming to a growing base of users.

The results underline the importance of live sports broadcasting in India’s media landscape. Cricket, especially the IPL, continues to be one of the strongest drivers of television ratings, digital engagement and advertising revenue. As more consumers shift towards connected devices and mobile streaming, companies with premium sports rights are expected to benefit significantly.

The company’s financial performance also reflects broader trends in India’s rapidly evolving media industry. While traditional television remains an important platform, digital streaming is witnessing faster growth as audiences increasingly watch content on smartphones, tablets and smart TVs.

JioStar’s integrated approach allows advertisers to reach audiences across multiple platforms through a single network. This cross-platform strategy has become increasingly valuable as brands seek unified campaigns that combine television, digital video and live streaming.

The merger has also strengthened JioStar’s content portfolio, giving it access to a wide range of entertainment channels, regional programming, international content and major sporting events. This diversified offering is expected to help the company attract more subscribers while maintaining strong advertising demand throughout the year.

Media experts say the strong quarterly results demonstrate the commercial value of premium sports rights in India’s highly competitive entertainment market. With cricket remaining central to viewer engagement, broadcasters continue investing heavily in acquiring long-term media rights for marquee tournaments.

Looking ahead, JioStar is expected to focus on further integrating its operations, expanding digital offerings and increasing monetisation opportunities through advertising, subscriptions and premium content. Upcoming sporting events and festive-season programming are also likely to support audience growth in the coming quarters.

The company believes its combined television and digital ecosystem places it in a strong position to capitalise on changing consumer viewing habits. As audiences increasingly prefer watching content across multiple screens, JioStar aims to deliver a seamless entertainment experience while strengthening its leadership in India’s media and streaming market.

The robust first-quarter performance highlights how premium sports content continues to reshape India’s entertainment business. With IPL media rights, digital streaming, sports broadcasting and advertising revenue driving growth, JioStar has begun the financial year on a strong note. The results also signal growing confidence in India’s media sector, where live sports remain one of the biggest engines of audience engagement and business growth.

Also Read: Apple regains world’s most valuable company title

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Leaders

Jensen Huang’s iconic jacket auctioned for $1 mn

A black leather jacket worn by Nvidia CEO Jensen Huang has become one of the most valuable pieces of technology memorabilia ever sold after fetching an impressive $960,000 (around ₹8.2 crore) at a Sotheby’s auction in New York. The jacket, which had an estimated value of just $40,000 to $60,000, attracted intense bidding before selling for nearly 16 times its expected price.

The record-breaking sale has once again highlighted Huang’s growing influence in the technology world, where he is now regarded as one of the defining figures of the artificial intelligence revolution. What started as his personal style statement has evolved into a globally recognised symbol of Nvidia’s rise as the world’s leading AI chipmaker.

The jacket sold at auction is a Tom Ford leather jacket that Huang wore during a visit to Foxconn’s facility in Taipei in 2023. It also carries his autograph, making it even more desirable for collectors. The event itself was significant, coming at a time when Nvidia was rapidly expanding its partnerships to meet the soaring global demand for artificial intelligence infrastructure.

According to Sotheby’s, the auction drew 65 bids from 45 collectors, reflecting the growing demand for items associated with influential technology leaders. Auction officials said they expected strong interest, but the final price far exceeded all expectations.

The proceeds from the sale will benefit the Edge Institute, a non-profit organisation that supports innovation through fellowships, grants and educational programmes for emerging technology talent. This charitable aspect added greater significance to the auction, with the sale contributing to future research and innovation.

For years, Jensen Huang has rarely appeared in public without a black leather jacket. Whether unveiling Nvidia’s latest AI chips, speaking at global technology conferences or delivering keynote presentations, the jacket has become an unmistakable part of his identity.

His signature style has often been compared with Steve Jobs’ black turtleneck and Mark Zuckerberg’s grey T-shirt, both of which became closely associated with their public image. However, Huang’s leather jacket has gained even greater prominence in recent years as Nvidia emerged at the centre of the global artificial intelligence boom.

Under Huang’s leadership, Nvidia has transformed from a graphics chip manufacturer into one of the world’s most valuable technology companies. Its advanced AI processors now power everything from generative AI models and cloud computing platforms to autonomous vehicles and scientific research. As demand for AI computing continues to rise, Huang has become one of the most recognisable executives in the technology industry.

His keynote presentations regularly attract thousands of attendees, while videos of his product launches are watched by millions around the world. The leather jacket has become so closely linked to his image that many technology enthusiasts instantly associate it with Nvidia’s AI announcements.

The jacket also gained additional attention after Meta CEO Mark Zuckerberg jokingly remarked during a public conversation that one of Huang’s worn leather jackets would probably become a valuable collector’s item. That light-hearted comment has now proved surprisingly accurate following the nearly $1 million auction sale.

Sotheby’s described the jacket as more than just a fashion item. According to the auction house, it represents an important piece of technology history because it is associated with one of the leaders driving today’s AI revolution. As artificial intelligence continues transforming industries worldwide, memorabilia connected to its key pioneers is becoming increasingly valuable.

The sale also reflects a broader shift in the collectibles market. Traditional memorabilia such as sports jerseys, movie costumes and rare watches continue to attract buyers, but technology-related collectibles are now emerging as a fast-growing category. Items linked to influential innovators and landmark moments in computing are increasingly being viewed as cultural artefacts rather than ordinary personal belongings.

For Nvidia, the auction comes at a time when the company continues to dominate the global AI hardware market. Its chips remain in high demand from major technology companies building advanced artificial intelligence systems, while Huang himself has become one of Silicon Valley’s most influential voices.

Although the leather jacket is unlikely to affect Nvidia’s business, the auction reflects the extraordinary cultural status Huang has achieved. Few technology executives have seen personal belongings command such remarkable prices, placing him among a select group of business leaders whose memorabilia has become highly sought after.

From being a simple wardrobe choice to becoming a symbol of the AI era, Jensen Huang’s black leather jacket has taken on a life of its own. Its record-breaking sale not only celebrates the Nvidia CEO’s remarkable journey but also captures a moment in history when artificial intelligence has become one of the world’s most transformative technologies.

Also Read: Samsung launches Music Studio series

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1 Minute-Read

China’s Moonshot reveals landmark Open AI model

Chinese AI startup Moonshot AI has unveiled what it describes as the world’s largest open-source artificial intelligence model, intensifying competition with leading US AI companies.

The new model is designed to deliver stronger reasoning, coding and language capabilities while allowing developers worldwide to access and build on the technology freely. The launch highlights China’s rapid progress in artificial intelligence, as companies race to develop more powerful large language models despite export restrictions on advanced chips.

Industry experts say the announcement strengthens China’s position in the global AI race and could accelerate innovation across research, businesses and developer communities.

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Corporate

Sensex surges 965 points, Nifty closes above 24,300

Indian equity markets ended Friday’s session on a strong note, with benchmark indices witnessing sharp gains as robust buying in IT, banking and financial stocks lifted investor sentiment.

The BSE Sensex climbed 965 points to settle at 78,151.45, while the NSE Nifty50 advanced 261.55 points to close at 24,334.30, comfortably ending above the key 24,300 level. The rally marked one of the strongest single-day gains for the benchmark indices in recent weeks. Positive quarterly earnings from several blue-chip companies and sustained domestic buying helped markets shrug off mixed global cues.

The upbeat mood on Dalal Street was largely driven by encouraging first-quarter earnings, especially from technology companies. Investors also remained optimistic ahead of earnings announcements from several banking and financial heavyweights, keeping buying interest strong throughout the trading session.

Technology shares emerged as the biggest drivers of the rally. Strong demand for Tata Consultancy Services (TCS), Infosys, Tech Mahindra and other IT majors pushed the sector higher after companies reported healthy earnings and maintained a positive business outlook.

Banking stocks also attracted strong buying, with expectations of stable earnings and improving credit growth supporting investor confidence. Financial services counters joined the rally, adding further momentum to the benchmarks.

Among the biggest gainers on the Sensex were Kotak Mahindra Bank, which rose around 4 per cent, followed by TCS, Reliance Industries, ICICI Bank, HDFC Bank, Axis Bank, Mahindra & Mahindra, Bajaj Finance, Infosys and Hindustan Unilever. Their gains contributed significantly to the day’s market surge.

On the other hand, a few heavyweight stocks witnessed profit booking. Sun Pharma, Trent, Bharti Airtel and UltraTech Cement ended lower and featured among the top losers of the session. However, their decline had little impact on the broader market rally.

The positive sentiment came despite mixed trends in global markets. Investors preferred to focus on domestic fundamentals, supported by a healthy earnings season and continued participation from domestic institutional investors. Analysts said the market’s resilience reflected confidence in India’s economic outlook even as global uncertainties persist.

Market experts believe the latest rally was fuelled by multiple factors. Better-than-expected quarterly earnings, sustained buying in IT stocks, optimism over upcoming financial sector results and improving technical indicators encouraged investors to increase their exposure to equities. The recovery in the rupee also added to the positive mood.

Reliance Industries remained in focus ahead of its quarterly earnings announcement. The stock gained during the session after recent developments involving promoter shareholding boosted investor interest. Financial stocks also remained active as traders positioned themselves ahead of earnings from leading private sector banks.

Sector-wise, the Nifty IT index outperformed all other sectoral indices, while banking, financial services and FMCG stocks also ended with healthy gains. Auto and capital goods shares traded firm during the session, whereas pharmaceutical and select consumer stocks underperformed.

The broader market, however, witnessed a relatively mixed performance. While several mid-cap and small-cap stocks gained, buying remained selective as investors preferred quality large-cap companies during the ongoing earnings season.

Foreign institutional investor (FII) activity, quarterly earnings, crude oil prices and global developments will continue to remain key triggers for the market in the coming weeks. Analysts believe strong corporate results and stable domestic economic indicators could help sustain positive momentum, although volatility cannot be ruled out.

Friday’s rally has reinforced confidence in Indian equities, with both the Sensex and Nifty ending the week on a positive note. As the June-quarter earnings season gathers pace, investors will closely watch corporate commentary and management guidance to assess whether the current momentum can extend further in the sessions ahead.

Also Read: BHEL posts ₹377 cr Q1 profit, revenue jumps 39%

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Corporate

BHEL posts ₹377 cr Q1 profit, revenue jumps 39%

Bharat Heavy Electricals Ltd. (BHEL) delivered a strong financial turnaround in the first quarter of FY27, reporting a consolidated net profit of ₹377 crore against a net loss of ₹212 crore in the corresponding period last year. The state-owned engineering and manufacturing company also recorded a sharp rise in revenue, reflecting stronger execution of power sector projects and improving business momentum.

For the quarter ended June 30, BHEL’s revenue from operations increased 39% year-on-year to ₹7,693 crore, compared with ₹5,528 crore in the same quarter of the previous financial year. The growth was primarily driven by higher execution in the company’s power business, which continues to account for the largest share of its revenue.

The company attributed the improved performance to faster project execution, better operational efficiency and increased demand for equipment and services from the power sector. India’s growing investment in electricity generation and transmission infrastructure has created new opportunities for BHEL, which remains one of the country’s leading manufacturers of power plant equipment.

The latest quarterly results mark a significant turnaround for the public sector enterprise after reporting losses in the corresponding quarter last year. Improved execution across ongoing projects helped the company strengthen both its revenue and profitability, reflecting a recovery in business activity as several large contracts progressed during the quarter.

The power segment remained the biggest contributor to BHEL’s performance. The company has been witnessing stronger order execution amid rising investments in thermal power capacity, renewable energy integration and transmission infrastructure. With electricity demand continuing to grow across the country, utilities have accelerated project implementation, creating a favourable environment for engineering and equipment suppliers.

Industry analysts believe BHEL is benefiting from the government’s continued focus on expanding power generation capacity to meet rising energy requirements. Several thermal power projects that had remained slow in previous years have gathered pace, resulting in increased demand for boilers, turbines, generators and associated engineering services manufactured by the company.

BHEL has also been strengthening its execution capabilities by focusing on timely project completion, cost optimisation and operational efficiency. These measures have helped improve margins while ensuring better utilisation of manufacturing facilities across its plants.

Apart from the power sector, the company continues to pursue opportunities in industrial equipment, transportation, defence and renewable energy. However, power equipment remains its core business and the primary driver of revenue growth. As India moves towards becoming a major global manufacturing and energy hub, demand for reliable power infrastructure is expected to remain robust over the coming years.

The company’s healthy order book provides further confidence about future growth. BHEL has secured several large domestic contracts over the past year, particularly from state-owned and private power producers. These projects are expected to support revenue growth as execution gathers pace over the coming quarters.

The improving financial performance also reflects the broader recovery in India’s capital goods sector. Increased public infrastructure spending, expanding industrial activity and higher investments in electricity generation have created a positive business environment for engineering companies. Government initiatives aimed at strengthening domestic manufacturing under the “Make in India” programme have further supported demand for locally manufactured equipment.

Market participants viewed the quarterly results as a positive sign for BHEL’s long-term growth prospects. The return to profitability demonstrates the company’s ability to convert its strong order pipeline into revenue while maintaining operational discipline. Investors will now closely watch whether the company can sustain this momentum through the remainder of FY27.

Going forward, BHEL is expected to benefit from continued investments in thermal power projects, renewable energy integration, grid modernisation and industrial infrastructure. With India’s electricity demand projected to rise steadily over the next decade, the company remains well positioned to play a key role in supplying critical equipment for the country’s energy transition.

The strong first-quarter performance highlights BHEL’s improving operational strength and signals renewed confidence in its growth strategy. If project execution continues at the current pace, the company could maintain healthy earnings momentum while strengthening its position in India’s rapidly expanding power and engineering sector.

Also Read: Centre floats draft CAFE III norms

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Beyond

Centre floats draft CAFE III norms

The Centre has released the draft Corporate Average Fuel Efficiency (CAFE) III norms for public consultation, proposing tougher fuel efficiency standards for passenger vehicles while giving special recognition to ethanol and biofuel-powered vehicles. The new framework, issued by the Ministry of Heavy Industries, is expected to come into effect from April 1, 2027, and will remain applicable until March 31, 2032, replacing the existing CAFE II norms.

The proposed regulations are aimed at reducing fuel consumption, lowering carbon dioxide (CO₂) emissions and encouraging the automobile industry to adopt cleaner and more efficient technologies. The government has invited comments from stakeholders before finalising the new standards, marking another significant step in India’s efforts to reduce transport-sector emissions while supporting sustainable mobility.

Under the draft, passenger vehicle manufacturers will be required to meet stricter fleet-wide fuel efficiency targets. Instead of evaluating individual models, the CAFE framework assesses the average fuel efficiency and carbon dioxide emissions of all passenger vehicles sold by a manufacturer during a financial year. Companies that fail to meet the prescribed targets could face financial penalties, while those performing better than the required standards may earn credits.

One of the most notable features of the draft CAFE III norms is the introduction of special incentives for vehicles powered by ethanol and other biofuels. The proposal recognises flex-fuel and biofuel-compatible vehicles as cleaner alternatives capable of reducing dependence on conventional fossil fuels. Industry experts believe this move aligns with the government’s broader objective of promoting ethanol blending and expanding the use of domestically produced renewable fuels.

The draft also proposes a revised method for calculating carbon dioxide emissions by considering the type of fuel used. Vehicles capable of running on higher ethanol blends or approved biofuels are expected to receive favourable treatment under the compliance framework. This could encourage automakers to invest more heavily in flex-fuel technology while diversifying India’s clean mobility options beyond battery electric vehicles.

The government has retained its technology-neutral approach, meaning manufacturers can choose the most suitable pathway to achieve compliance. Companies may improve internal combustion engines, introduce hybrid technologies, expand electric vehicle portfolios or increase the availability of flex-fuel vehicles. This flexibility allows automakers to adopt solutions best suited to their product strategies and customer demand while still contributing to national emission reduction goals.

Officials say the proposed norms are designed to balance environmental objectives with industry growth. The automobile sector has repeatedly sought realistic compliance timelines, citing the significant investments required to develop cleaner engines, hybrid systems and alternative fuel technologies. By providing a consultation period before implementation, the government aims to gather feedback from manufacturers, industry associations and technical experts to ensure the final regulations remain practical while delivering meaningful environmental benefits.

The draft comes as India continues to strengthen its climate commitments and reduce its dependence on imported crude oil. The transport sector accounts for a significant share of the country’s greenhouse gas emissions, making improved vehicle fuel efficiency an important part of India’s long-term decarbonisation strategy. Higher fuel efficiency standards not only reduce carbon emissions but can also lower fuel consumption, helping consumers save on running costs over the lifetime of a vehicle.

The inclusion of ethanol and biofuel vehicles has drawn particular attention because it reflects the government’s growing emphasis on multiple clean mobility solutions. While electric vehicles remain a key pillar of India’s green transport strategy, policymakers have increasingly promoted ethanol, compressed biogas and other alternative fuels to reduce emissions across different vehicle categories. Industry analysts believe recognising flex-fuel vehicles under the CAFE III framework could accelerate investment in engines capable of operating on higher ethanol blends.

Automobile manufacturers are now expected to study the draft carefully before submitting their feedback during the consultation period. The final version of the norms could influence future vehicle development, research investments and product planning across the industry over the next several years.

If implemented largely in their current form, the CAFE III standards will represent another major milestone in India’s transition towards cleaner, more fuel-efficient mobility. For consumers, the regulations could eventually lead to vehicles that consume less fuel, produce fewer emissions and offer a wider choice of cleaner technologies, while helping the country move closer to its climate and energy security goals.

Also Read: Apple rolls out back-to-school offer