Author: Zara Reed

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Corporate

Trent stock jumps 13% after 23% Q2 growth

Trent shares delivered a sharp rebound on Tuesday after the Tata Group retail company reported strong revenue growth for the September quarter, giving investors fresh confidence in a business that had faced concerns over slowing growth and expensive valuations.

The stock jumped nearly 13% during the session, touching an intraday high of ₹2,901.20 on the NSE, after closing at ₹2,575 on Monday. At one stage, the shares were up nearly 12% in early trade. The sharp rally came after Trent reported a 23% year-on-year increase in standalone revenue for the July-September quarter.

Trent’s standalone revenue from operations, excluding GST, rose to ₹5,788 crore in the second quarter of FY27 from ₹4,724 crore in the same period last year. Revenue growth was supported by its fashion and lifestyle businesses, particularly Zudio and Westside.

The latest numbers have helped change the immediate mood around the stock. Trent had been under pressure earlier in the year as investors worried about slowing sales productivity, intense competition and the ability of the company to justify its high valuation. The September-quarter update has provided some evidence that growth momentum may be stabilising.

A major highlight was Zudio crossing the 1,000-store milestone during the quarter. Trent added 17 Zudio stores and 10 Westside outlets between July and September. Its total store network reached 1,342 stores as of September 30, compared with 1,101 stores a year earlier.

The expansion shows the scale of Trent’s retail ambition. Zudio has emerged as one of India’s fastest-growing value-fashion chains, while Westside continues to serve the company’s more established fashion and lifestyle segment. The company is increasingly expanding beyond the largest urban markets, seeking to capture rising consumption across smaller cities and towns.

Store expansion, however, is only one part of the story. Investors are also watching whether each new outlet can generate enough revenue and profit to support the company’s aggressive growth strategy.

That is where the latest update offered some encouragement. Goldman Sachs said Trent’s sales productivity improved sequentially. Revenue per store declined 1.7% in the second quarter, compared with a 5.6% decline in the first quarter. Macquarie also expects same-store sales momentum to improve from the previous quarter.

Brokerage opinion has consequently turned more positive, although there is no complete agreement on the stock. Goldman Sachs raised its target price to ₹3,010 from ₹2,960, while other brokerages have also maintained bullish views based on the stronger revenue performance and improving store productivity.

Morgan Stanley and HSBC have remained positive on Trent’s growth prospects, while BofA Securities initiated coverage with a Buy rating and a ₹3,075 target. The differences among brokerages, however, show that investors are weighing growth against valuation rather than simply responding to the latest revenue number.

Valuation remains the biggest question surrounding the stock. Business Today noted that Trent was still trading at more than 70 times earnings even after its strong quarterly update. Market experts have therefore cautioned that a good business does not automatically mean the stock is attractively priced. Investors will need to see sustained growth in same-store sales, margins and store-level productivity to support the premium valuation.

Competition is another factor that could influence the next phase of Trent’s growth. The company operates in an increasingly crowded Indian fashion and value-retail market, competing with organised retailers as well as domestic and international brands. Maintaining pricing power while expanding rapidly will be important as competition for consumers increases.

The stock’s rally also needs to be viewed against its earlier performance. Trent shares had remained under pressure for much of 2026, making Tuesday’s sharp move particularly significant. The latest surge suggests investors are willing to reconsider the growth story when operating numbers begin to show signs of improvement.

The company’s first-half performance provides another indication of scale. Revenue for the first six months of FY27 rose 21% year-on-year to ₹11,454 crore.

The immediate excitement around Trent is therefore not simply about a 23% revenue increase. It is about whether the company can convert its expanding retail footprint into consistent same-store growth, stronger productivity and sustainable profitability.

Investors now have a clearer set of numbers to watch: store additions, revenue per store, same-store sales, margins, competition and valuation. Trent’s strong second-quarter update has brought the growth story back into focus, but the next few quarters will determine whether Tuesday’s rally marks the beginning of a sustained recovery or simply a sharp response to better-than-expected numbers.

 

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Beyond

UPI MDR set to reshape digital payments

India’s digital payments ecosystem is preparing for a significant change as a new Merchant Discount Rate (MDR) is set to apply to certain high-value UPI payments from October 15. The move is aimed at creating a more sustainable revenue model for the payments industry, but it has also raised questions among merchants, traders and consumers.

Under the new framework, a 0.4% MDR will apply to person-to-merchant (P2M) UPI transactions above ₹2,000. The charge will be paid by merchants and will be capped at ₹300 for transactions of ₹75,000 and above. Person-to-person UPI transfers will continue to remain free, irrespective of the amount.

The government has also sought to clarify that the MDR is not a tax, cess or surcharge. The money collected will not go to the government but will be distributed among participants in the UPI ecosystem, including banks, payment gateways and UPI applications.

The change comes after years of zero-MDR transactions on UPI. Since January 2020, UPI transactions have carried no MDR as the government sought to accelerate digital payments and encourage merchants and consumers to move away from cash. The new framework is intended to provide another source of revenue for an ecosystem whose infrastructure and transaction-settlement costs continue to grow.

Most UPI payments remain outside the charge

The headline figure of a 0.4% fee may sound significant, but the impact will be limited to a relatively small portion of transactions.

Government data shows that only around 4% of P2M UPI transactions are above ₹2,000 and will attract the new MDR. However, these transactions account for about two-thirds of P2M payments by value, making them important for the overall economics of the UPI network.

The government has said about 96% of merchant transactions will remain unaffected. Payments of up to ₹2,000 will continue to carry zero MDR, while small merchants covered under the existing zero-MDR framework will also remain protected.

NPCI Managing Director Dilip Asbe has said around 75% of India’s more than 60 million digital-payment merchants have never recorded a UPI transaction above ₹2,000. This means a large majority of merchants are unlikely to see a direct impact from the new fee.

Certain essential categories, including railways, telecom, insurance, fuel and agricultural inputs, will also have a concessional MDR of ₹5 on eligible transactions above ₹2,000.

Will consumers pay more?

One of the biggest concerns surrounding the new UPI MDR is whether merchants will eventually pass the cost on to customers through higher prices.

Government sources have said the proposed fee will not be passed on to consumers. Authorities are also considering discussions with the Indian Banks’ Association and trader organisations to address concerns over merchants adding the charge to bills.

That distinction is important. The MDR is a fee for payment processing and settlement, rather than a charge imposed directly on the person making the UPI payment.

The government has also rejected concerns that the fee could push consumers back towards cash. Officials have argued that merchants already absorb MDR on other payment methods, particularly credit cards, where merchant fees are generally much higher than the proposed UPI rate.

Still, the response from businesses will be closely watched once the new system becomes operational. UPI has become deeply embedded in everyday commerce, from small shops and restaurants to large retailers and service providers. Any change in the cost of accepting digital payments could influence how businesses manage their payment mix.

GST adds another layer

The treatment of GST on the new merchant fee has emerged as another important issue.

Since MDR is considered a payment-processing service, an 18% GST applies to the merchant fee. This means the GST would be charged on the MDR amount rather than on the underlying UPI transaction value.

The GST Council is expected to take a view on the issue. Its next meeting is scheduled for October 7, ahead of the October 15 implementation of the MDR. Government sources have expressed hope that the Council will review the 18% GST on UPI merchant fees.

For GST-registered businesses, the additional tax may be partly offset through Input Tax Credit (ITC), provided they meet the eligibility conditions. Businesses dealing with exempt supplies may not receive the same benefit and could therefore face a higher effective cost.

A new revenue model for UPI

The broader objective is to make India’s digital payments infrastructure financially more sustainable.

Government estimates suggest the annual cost of running and settling UPI transactions is around ₹20,000 crore. While the new MDR could generate substantial revenue, officials have indicated that collections may still fall short of the full cost of maintaining the system.

The fee will be shared among different participants in the payments ecosystem rather than flowing into government coffers. The proposed structure is therefore less about creating a new consumer charge and more about introducing a revenue stream for banks, payment service providers and other entities that support UPI transactions.

The bigger test will begin on October 15, when India’s largest digital payments network moves from an almost entirely zero-MDR model towards a system in which high-value merchant transactions help fund the infrastructure behind the country’s digital payments growth.

 

Categories
Corporate

NSE makes market debut, closes at ₹1,800 today

The National Stock Exchange of India (NSE) made its long-awaited stock market debut on Thursday, completing a journey that began more than a decade ago. The country’s largest exchange listed its shares on the Bombay Stock Exchange (BSE), turning its long-time rival into the platform for its own public-market debut.

NSE shares opened at ₹1,800, a 0.84% premium to the initial public offering (IPO) price of ₹1,785. The stock climbed as much as 5% during the session before settling at ₹1,818, up 1.85% from the issue price. The closing price gave NSE a market capitalisation of about ₹4.5 lakh crore, or nearly $47 billion.

The listing marks the end of a lengthy process for NSE, which had faced regulatory and legal hurdles before finally moving ahead with its IPO. The ₹22,569-crore issue was fully an offer for sale, meaning the exchange itself did not receive fresh capital from the offering. Existing shareholders sold their shares to investors.

The IPO was subscribed 5.71 times, reflecting strong demand overall. Institutional investors drove much of the interest, while retail participation was comparatively modest. The listing has now added millions of investors to NSE’s shareholder base and brought the exchange itself into the public markets it operates.

There was a strong sense of irony in Thursday’s listing. NSE was created in the early 1990s to bring greater technology, transparency and nationwide access to India’s stock market, challenging the dominance of the then broker-controlled BSE.

More than three decades later, NSE had to list on the BSE itself.

The arrangement is required under market regulations. A recognised stock exchange cannot list its own securities on its own platform and must use another recognised exchange. That is why NSE shares began trading on the BSE rather than the NSE.

The moment also highlighted how dramatically India’s stock market has changed since NSE began operations. Its electronic trading system helped move the market away from the traditional open-outcry model and made trading more accessible across the country.

NSE began operations in the wholesale debt market in 1994 and entered the equity market later that year. It overtook BSE in equity trading within about a year and has since become the dominant exchange in several key segments.

NSE now accounts for about 93% of India’s cash equity trading and nearly 75% of the options market, according to Reuters. Its derivatives business has become a major source of revenue, with transaction charges from derivatives accounting for about 68% of operating revenue in the June quarter.

That dependence on derivatives is also one of the key issues investors will be watching after the listing.

Trading activity in equity derivatives has slowed since 2024 following regulatory measures, higher taxes and other changes aimed at curbing excessive speculation. A moderation in options activity could therefore affect the pace of NSE’s future earnings growth.

The exchange’s ability to expand beyond its traditional revenue streams will be important as investors begin evaluating NSE as a listed company rather than simply as the operator of India’s biggest stock market.

New products, technology services and continued growth in capital-market participation could provide additional avenues for revenue. Brokerage firm Macquarie has pointed to the potential for stronger valuation if new products gain traction.

NSE’s public listing has also put the spotlight back on the competition between India’s two major stock exchanges.

BSE, which became a listed company in 2017, has a market value of around ₹1.3 lakh crore. NSE’s debut valuation is therefore several times larger, reflecting its much greater scale in equity and derivatives trading.

The comparison is particularly interesting because BSE has been growing rapidly from a smaller base. Its recent expansion in equity derivatives has helped increase trading volumes and revenue, while NSE continues to hold a commanding share of the overall market.

The two exchanges are therefore entering a new phase of competition, with investors now able to track their performance as listed companies.

NSE’s listing also comes at a busy time for India’s primary market. The ₹22,569-crore issue ranks among the country’s largest IPOs and follows several sizeable public offerings this year.

India has raised about $9.9 billion through more than 190 IPOs so far in 2026, according to LSEG data cited by Reuters. The NSE listing adds another major name to the country’s expanding listed-company universe, with Jio Platforms also expected to enter the public markets later this year.

The listing also gives investors a direct way to participate in the business of India’s capital-market infrastructure. NSE’s future performance will now be measured not only by its trading dominance but also by earnings growth, product diversification, regulatory changes and its ability to maintain its position as the market evolves.

After years of waiting, NSE has finally become a listed company. Its first trading session has set the starting point for a new chapter — one in which the exchange itself will be under the same market spotlight that its platform has long provided to others.

 

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Beyond

OECD raises India FY27 growth forecast to 7.1%

The OECD has raised its forecast for India’s economic growth in FY27 to 7.1%, offering a stronger outlook for Asia’s third-largest economy. The latest estimate is 80 basis points higher than the 6.3% forecast made by the organisation in June.

The upgrade comes after India’s economy grew faster than expected in the first quarter of FY27. India’s GDP expanded 7.8% in the April-June quarter, supported by strong investment, manufacturing, private consumption and services.

The revised forecast comes at a time when the Indian economy is facing several external challenges, including higher energy prices, geopolitical tensions and uncertainty over global trade.

Domestic demand remains strong

The OECD said India’s growth is being supported by resilient domestic demand and investment. Government measures have also helped households and businesses manage the impact of higher energy costs.

The April-June GDP data showed strength across several parts of the economy. Gross fixed capital formation grew 11.9%, pointing to continued investment activity. Manufacturing expanded 9.2%, while private consumption increased 7.1%.

Financial, real estate and professional services also performed strongly, growing by around 12.1%.

Strong domestic consumption is important for India because it reduces the economy’s dependence on external demand at a time when global trade remains uncertain.

Government spending and infrastructure investment have also continued to support economic activity, while businesses have maintained investment in sectors such as manufacturing, technology and services.

Growth expected to moderate

The higher FY27 forecast does not mean the OECD expects India to maintain the 7.8% growth rate recorded in the June quarter throughout the year.

The organisation expects economic growth to slow from 7.8% in FY26 to 7.1% in FY27, before easing further to 6.5% in FY28.

The OECD expects higher energy costs to reduce household purchasing power during the second half of FY27. Growth could then gradually improve as some of these pressures ease.

This suggests that while India’s overall growth outlook remains strong, the economy could see some moderation after the unusually strong performance recorded in the first quarter.

Other agencies also raise forecasts

The OECD is not the only global institution to have recently become more positive about India’s growth prospects.

S&P Global Ratings has raised its FY27 growth forecast for India to 7% from 6.6%, while Fitch Ratings increased its estimate to 6.9% from 6.4%. The Asian Development Bank also raised its projection to 7% from 6.6%.

Moody’s has put its FY27 growth forecast at 7%.

The series of upgrades reflects the stronger-than-expected performance of the Indian economy and the resilience of domestic demand.

Oil prices remain a major risk

One of the biggest risks to India’s economic outlook is the rise in crude oil prices.

The ongoing conflict in West Asia has disrupted oil supplies and increased uncertainty in global energy markets. Brent crude has recently moved above $100 a barrel, raising concerns for oil-importing countries such as India.

India imports a large share of the crude oil it consumes. Higher oil prices can increase the country’s import bill and put pressure on the rupee. They can also raise transportation and production costs for businesses.

For households, higher fuel and other energy costs can reduce disposable income and affect consumer spending.

The OECD expects government support measures, alternative energy supplies and existing oil inventories to soften some of the impact. However, a prolonged period of high crude prices could still weigh on India’s growth.

Inflation outlook

The OECD expects India’s inflation to remain manageable, although energy prices remain a risk.

It forecasts headline inflation to decline from 4.7% in 2026 to 4.2% in 2027.

Lower inflation could support household spending and provide some room for monetary policy to remain supportive of economic activity. However, a sharp increase in crude oil prices could change that picture by adding fresh pressure to consumer prices.

The inflation outlook will therefore remain important for investors and policymakers as they assess the future path of interest rates.

Global trade remains uncertain

India’s economic performance will also depend on global trade conditions. Higher tariffs, trade restrictions and geopolitical tensions have created uncertainty for exporters and businesses.

Despite these challenges, India’s domestic economy has remained relatively resilient. Services exports, manufacturing investment and consumer demand continue to provide support.

The OECD expects the global economy to grow 2.9% in 2026 and 3% in 2027. While this points to continued expansion, the outlook remains exposed to energy shocks, trade tensions and geopolitical developments.

Strong domestic demand in India could continue to act as a buffer against weaker external conditions.

The latest OECD upgrade strengthens the India GDP growth outlook for FY27, but several factors will determine whether the economy stays on track. Crude oil prices, inflation, interest rates, investment, consumer spending and global trade will remain closely watched in the months ahead.

The 7.1% growth forecast also places India among the fastest-growing major economies, even as the OECD expects growth to moderate from the exceptionally strong pace recorded in the first quarter.

 

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Beyond

Rupee rises five paise to 95.57 against dollar

Indian rupee edged higher against the US dollar on Wednesday, helped by softer crude oil prices and a broader recovery in Asian currencies. However, gains remained limited as the US dollar stayed firm and investors continued to watch geopolitical developments closely.

The rupee opened at 95.58 per dollar in early trade and strengthened to 95.57, marking a five-paise gain from Tuesday’s close of 95.62, according to market data. Moneycontrol, however, reported the currency opening three paise higher at 95.56 compared with Tuesday’s close of 95.59. The difference reflects early market movements and the timing of the reported rates.

The Indian currency has been under pressure in recent sessions as concerns over crude oil, foreign fund outflows and geopolitical tensions weighed on sentiment. The latest improvement came as Brent crude prices slipped below the $100-a-barrel mark, offering some relief to oil-importing economies such as India.

Brent crude was trading around $98.27 a barrel, down nearly 1% in futures trade. Oil prices have fallen sharply from levels above $109 recorded the previous week. The decline has been linked partly to hopes of a diplomatic breakthrough in the Middle East, although uncertainty remains high.

Lower crude prices are important for the rupee because India imports a large share of its oil requirements. When crude becomes cheaper, India’s import bill can come down, easing pressure on the country’s current account and demand for US dollars.

The currency was also supported by gains in several Asian currencies. The Philippine peso and Malaysian ringgit rose 0.21% each, while the Taiwan dollar gained 0.12%. The Thai baht and South Korean won also strengthened against the US dollar. However, the Indonesian rupiah, Japanese yen and Chinese renminbi weakened, showing that sentiment across Asian currency markets remained mixed.

The dollar remained a key challenge for the rupee. The US dollar index, which measures the greenback against a basket of major currencies, was around 100.70 and slightly higher during early trade. A stronger dollar generally puts pressure on emerging-market currencies such as the rupee.

Markets are also watching the impact of US monetary policy. Expectations around interest rates and the Federal Reserve remain important for global currency markets. Higher US rates can support the dollar by making dollar-denominated assets more attractive, potentially increasing pressure on emerging-market currencies.

Geopolitical developments remain another major factor. Investors are closely tracking the latest signals from the US-Iran diplomatic discussions and developments in West Asia. Any progress towards easing tensions could put further downward pressure on crude prices, which would be supportive for the rupee. At the same time, a fresh escalation could push oil higher and increase demand for the US dollar as a safe-haven asset.

The Reserve Bank of India (RBI) is also an important factor in the currency market. Traders said the central bank has been intermittently intervening to limit sharp movements in the rupee. Market participants are particularly watching the 96-per-dollar level, which has emerged as an important psychological marker.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said the rupee could find support around 95.50 and then 95.00, while 96.30 was seen as an upper level where RBI intervention could become stronger.

Foreign fund flows are another source of pressure. Data showed that foreign institutional investors sold Indian equities worth ₹3,809.99 crore on a net basis on Tuesday. Persistent foreign portfolio outflows can increase demand for dollars as investors convert their Indian holdings back into foreign currency, putting pressure on the rupee.

The movement in the rupee also comes against the backdrop of a stronger domestic stock market. The Sensex gained more than 280 points in early trade on Wednesday, while the Nifty climbed above 23,400. A stronger equity market can provide some support to the currency by improving investor sentiment, although foreign selling can offset that benefit.

For businesses and consumers, the rupee’s movement has wider implications. A weaker currency can make imported goods, crude oil and some raw materials more expensive, while exporters can benefit from a stronger dollar value for their overseas earnings. A firmer rupee, on the other hand, can help reduce the domestic cost of imports.

The rupee’s near-term direction is therefore likely to remain closely tied to crude oil prices, US dollar movements, foreign fund flows, RBI intervention and geopolitical developments. With oil currently below $100 and markets watching the US-Iran situation, traders are expected to remain cautious while looking for clearer signals on the currency’s next move.

 

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Beyond

Bank strike may disrupt services for five days

Bank customers may need to finish important branch-related work early next week as bank employee unions have called a three-day nationwide strike from September 28 to 30.

The strike comes immediately after the September 26-27 weekend, raising the possibility of disruption to regular branch services for five consecutive days. However, this does not necessarily mean that every bank branch will remain closed throughout the five-day period. Digital banking, ATMs and other essential services are expected to remain available.

The United Forum of Bank Unions (UFBU), an umbrella body representing seven bank employee and officer unions, has called the strike. The unions have been pressing for the introduction of a five-day banking week, along with several other demands related to employees and pensioners.

The five-day workweek remains the main issue behind the latest strike call. The demand has been pending since the 2024 wage settlement, and unions have been seeking its early implementation. They have also raised concerns over performance-linked incentives and other service-related matters.

Other demands include pension updation, a uniform dearness allowance formula for pensioners and an option for employees covered under the National Pension System (NPS) to move to the Old Pension Scheme. The unions have also raised several pending wage and service-related issues.

The latest strike follows a nationwide one-day bank strike on September 11, which affected over-the-counter banking services, cash transactions and cheque clearances in several parts of the country. The impact was uneven, with some cities seeing relatively normal operations while disruptions were reported in states and smaller cities.

With another strike approaching, the government has started preparing for possible disruption. The Department of Financial Services under the Finance Ministry is scheduled to meet the chiefs of public sector banks, regional rural banks, the Indian Banks’ Association and NABARD to review contingency arrangements.

The meeting is expected to focus on maintaining essential banking services and reducing inconvenience to customers during the strike. The timing is particularly important because the strike coincides with the end of the half-year, a period when banks handle additional accounting and reporting work.

Major banks have already begun alerting customers.

State Bank of India (SBI) has advised customers to complete important branch-related transactions before the strike dates. The bank has also said it is making arrangements to keep essential services running during the disruption.

Union Bank of India has similarly issued an advisory asking customers to plan important banking work in advance. Customers are encouraged to use digital channels wherever possible during the strike period.

Customers should therefore consider completing work that requires a physical branch visit before September 28. This could include certain cash transactions, cheque-related work, document submission and other services that cannot be completed digitally.

The situation is different for online banking users. Internet banking, mobile banking, UPI and ATMs are expected to continue operating, although customers could still experience delays in some services depending on the bank and the nature of the transaction.

The five-day period does not mean that the entire banking system will stop functioning. Branch operations are the area most likely to face disruption because of the strike. Customers can continue to use digital payment systems and other automated channels for routine transactions.

The unions had issued their strike notice earlier and held discussions with the government and the Indian Banks’ Association. Conciliation efforts have taken place, but the issue of a five-day banking week has remained unresolved. The UFBU has indicated that it will continue with the strike unless there is concrete progress on its demands.

The banking unions represent a large section of bank employees and officers, meaning the strike could have a noticeable impact on public sector bank operations. The effect, however, may differ from one location to another depending on participation and the availability of alternative banking channels.

The current strike programme also extends beyond September. The unions have announced further industrial action, including a continuous strike from October 26, as part of their broader campaign over their demands.

The immediate priority is to avoid leaving urgent branch work until the last moment. Routine payments and money transfers can largely be handled through UPI, mobile banking, internet banking and ATMs, but services requiring staff assistance may face delays.

The September 28-30 strike is therefore expected to create the most visible disruption at bank branches, while digital banking services should continue to provide an alternative for everyday transactions. Government officials, banks and unions will continue discussions as the strike approaches, leaving open the possibility of developments before the scheduled action.

 

Categories
Corporate

GPT Infra wins ₹484 crore railway bridge order from RVNL

GPT Infraprojects has secured a ₹483.72-crore order from Rail Vikas Nigam Ltd (RVNL) for construction of a railway bridge in Odisha, giving the infrastructure company a fresh boost as it expands its railway project portfolio.

The contract involves construction of Important Bridge 544, an open-web steel girder bridge over the Mahanadi River. The bridge will have 32 spans, each measuring 65.84 metres.

The project forms part of the work to build third and fourth railway lines between Nergundi and Barang in the Khurda Road Division of East Coast Railway.

GPT Infraprojects said the contract is worth ₹409.94 crore before GST and ₹483.72 crore including taxes. The company has 1,095 days to complete the project from the appointed date.

The new order triggered a sharp reaction in the stock market. GPT Infraprojects shares rose nearly 9% during Friday’s trading session, touching ₹123.32 on the NSE. The stock had closed at ₹113.56 on Thursday.

The jump came after the company announced the RVNL contract in a regulatory filing following market hours on Thursday.

The order is significant for GPT Infraprojects because it adds a large railway infrastructure project to its already sizeable pipeline. The company’s outstanding order book has now risen to around ₹4,992 crore, compared with ₹4,303 crore at the end of the June quarter.

With the latest contract, the company’s total order inflow for FY27 has reached around ₹818 crore, according to market reports.

The company has been building a stronger presence in the railway construction segment. Its recent projects include railway bridges, civil works and railway signalling contracts, giving it exposure to India’s ongoing investment in transportation infrastructure.

The latest RVNL project is also the company’s second major railway order secured during September.

GPT Infraprojects’ subsidiary Alcon Builders and Engineers recently won two railway signalling contracts. One, worth ₹114.82 crore, was awarded by Northeast Frontier Railway, while another contract worth ₹85.53 crore came from Eastern Railway.

Together, these contracts have expanded the company’s railway-related work pipeline and strengthened its order visibility.

GPT Infraprojects is the flagship company of Kolkata-based GPT Group. Its operations cover infrastructure construction, railway-related projects and the manufacture of concrete railway sleepers.

The company’s growing order book comes at a time when Indian Railways is investing heavily in expanding network capacity and upgrading infrastructure. Additional railway lines are being developed on busy routes to improve capacity and accommodate rising passenger and freight traffic.

The Nergundi-Barang project is part of this wider effort. The addition of third and fourth lines is expected to increase capacity on the existing railway corridor and support smoother movement of trains.

While a larger order book provides visibility for future business, execution remains important. Large infrastructure projects can take several years to complete, and revenue is recognised progressively as work advances. Costs, project timelines and execution efficiency will therefore determine how much of the order value eventually translates into earnings.

GPT Infraprojects’ latest financial performance has been mixed. In the quarter ended June 2026, its consolidated revenue from operations fell around 3.4% year-on-year to ₹302 crore.

However, profitability improved during the quarter. Consolidated EBITDA increased about 28.4% to ₹47.5 crore, while profit attributable to shareholders rose nearly 5% to ₹24.6 crore.

The company has also continued to secure new contracts despite the uneven revenue performance.

The latest RVNL contract could provide additional revenue visibility over the next three years. Successful execution of the Mahanadi bridge project will be closely watched as the company works through an order book approaching ₹5,000 crore.

GPT Infraprojects has also clarified that its promoters, promoter group and group companies have no interest in RVNL. The contract is therefore not a related-party transaction.

The sharp rise in GPT Infraprojects shares following the announcement shows the immediate investor interest in the new contract. The stock, however, remains below its 52-week high of ₹150, recorded in June.

The latest project gives GPT Infra another sizeable railway assignment and adds to its growing portfolio of infrastructure contracts.

The immediate focus will now shift to execution. Over the next three years, GPT Infraprojects will have to deliver the Mahanadi bridge within the agreed timeline while managing costs and coordinating with railway authorities.

With an order book of nearly ₹5,000 crore and fresh railway contracts continuing to come in, the company is building a larger pipeline of work as India’s railway infrastructure expansion gathers pace.

 

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Leaders

Zhang Yiming tops Asia with $105 billion fortune

ByteDance founder Zhang Yiming has overtaken Indian industrialist Gautam Adani to become Asia’s richest person, according to the Bloomberg Billionaires Index. The 43-year-old technology entrepreneur’s fortune has crossed $105 billion, putting him at the top of the Asian wealth rankings for the first time.

Zhang’s rise comes as the valuation of ByteDance, the privately held Chinese technology company behind TikTok, continues to climb. The company has expanded beyond short-video platforms and is putting significant money into artificial intelligence, with products such as the Doubao AI chatbot and Seedance video-generation tool becoming important parts of its technology business.

Bloomberg’s latest calculation puts Zhang’s wealth at more than $105 billion. His fortune has increased by more than $12 billion this month alone, following updated valuations of ByteDance shares by investment firms including BlackRock, Fidelity Investments and T. Rowe Price.

The jump is particularly striking when compared with where Zhang stood several years ago. Bloomberg began tracking his wealth at around $13 billion in March 2019. His fortune has since increased more than eightfold, helped by ByteDance’s rapid expansion and the growing value assigned to its artificial intelligence operations.

Adani, meanwhile, has seen his fortune decline from its recent peak. His wealth had reached about $120 billion in June, but fell in the following months amid weakness in equities, changes to MSCI index weightings, higher oil prices and rising bond yields. The movement pushed him below Zhang in the latest Bloomberg ranking.

The change in the Asia richest person ranking also highlights the growing influence of technology and artificial intelligence on billionaire wealth. Adani’s fortune is linked largely to businesses spanning infrastructure, ports, airports, energy and commodities, while Zhang’s wealth is tied to a technology company whose businesses increasingly include AI.

ByteDance was founded by Zhang in 2012. The company initially became known for its recommendation algorithms and later built a global audience through TikTok. The platform has become one of the world’s biggest short-video services, giving ByteDance a huge international user base and a major advertising business.

Zhang stepped down as ByteDance’s chief executive in 2021 and later gave up his role as chairman. He has largely stayed away from the public spotlight, while continuing to hold a significant stake in the company. Forbes currently lists him as a major co-founder of ByteDance and identifies TikTok as his primary source of wealth.

Artificial intelligence has become an increasingly important part of ByteDance’s growth strategy. Its Doubao AI assistant has expanded rapidly in China, while Seedance focuses on generating images and videos using AI. The company is also investing in enterprise AI through its Volcano Engine platform.

ByteDance’s AI push has also influenced how investors value the company. Because ByteDance is not publicly listed, its valuation is based partly on private share transactions and assessments by investors. Bloomberg applies a 10% risk discount when calculating Zhang’s fortune because of the company’s private status.

That means the exact value of Zhang’s wealth can vary between billionaire rankings. Forbes’ real-time estimate put his fortune at about $84 billion on September 16, considerably below Bloomberg’s figure of more than $105 billion. The difference reflects the different methods used to value private companies such as ByteDance.

ByteDance has also faced significant challenges, particularly over TikTok’s operations in the United States. The company spent years dealing with regulatory pressure over the app’s ownership and data security. Earlier this year, control of TikTok’s US business was transferred to a consortium involving American investors, including Oracle and Silver Lake, easing some of the uncertainty surrounding the platform’s future in the country.

The company is now trying to build its next phase around AI while maintaining its established social-media and e-commerce businesses. That strategy comes with substantial costs. AI development requires expensive computing infrastructure, advanced chips and large amounts of data, meaning increased investment could also put pressure on profitability.

For Zhang, the latest wealth milestone reflects the changing value of ByteDance rather than a conventional rise in listed share prices. As the company remains private, movements in its estimated valuation can have a direct impact on his position in global billionaire rankings.

The development also places renewed attention on the changing Asian wealth landscape. Technology entrepreneurs are increasingly appearing alongside traditional industrial and business families as artificial intelligence, digital platforms and data become major sources of corporate value.

Zhang’s move above Adani does not necessarily represent a permanent change in the ranking. Private-company valuations can change, while listed-company fortunes can move daily with share prices and market conditions. For now, however, the Bloomberg Billionaires Index places the ByteDance founder at the top of Asia’s wealth rankings, with his fortune above the $105 billion mark.

 

Categories
Corporate

Maruti Suzuki crosses one lakh exports to Japan milestone

Maruti Suzuki has crossed a major milestone in Japan, with exports of its Made-in-India Jimny 5-door, Fronx and e Vitara surpassing one lakh units. The achievement is significant because Japan is not only one of the world’s most competitive car markets but also the home market of Suzuki.

The milestone underlines the growing acceptance of Indian-made cars in Japan and strengthens India’s position as an important manufacturing base for Suzuki’s global operations. Japan was Maruti Suzuki’s second-largest export market by volume in the financial year 2025-26 and has retained that position during April-August of 2026-27.

The export journey to Japan began with the Fronx in August 2024. The five-door Jimny followed in December 2024, while Maruti Suzuki’s first battery electric vehicle, the e Vitara, joined the Japan-bound portfolio in September 2025. The Jimny 5-door and e Vitara are manufactured exclusively in India.

The growing demand for these models has given India a bigger role in Suzuki’s international supply chain. Cars produced at Maruti Suzuki’s Indian plants are now reaching customers in one of the world’s most demanding automobile markets, where buyers have traditionally had access to a highly developed domestic car industry.

The achievement is also notable because Suzuki’s home market is Japan. Despite this, Suzuki emerged as Japan’s top vehicle importer in FY2025-26, with Maruti Suzuki-manufactured vehicles accounting for nearly all of Suzuki’s vehicle imports into the country during the year.

The three models have each found a different place in the Japanese market.

The Fronx, a compact SUV, was the first of the three to enter Japan. Its export programme has grown quickly since shipments began in 2024. The model’s success has also helped strengthen India’s reputation as a base for producing vehicles for international markets.

The Jimny 5-door, sold in Japan as the Jimny Nomade, generated particularly strong interest. The model received more than 50,000 bookings within four days of its launch in Japan, reflecting the popularity of the compact off-road SUV in Suzuki’s home market.

The e Vitara has added another dimension to the export story. As Maruti Suzuki’s first battery electric vehicle, its inclusion in the Japan export portfolio shows that India’s manufacturing role is expanding beyond conventional petrol-powered vehicles.

The e Vitara is manufactured exclusively in India, making the country an important production hub for Suzuki’s global electric vehicle plans. Exports to Japan began in September 2025, even before the model went on sale in India.

Maruti Suzuki currently exports 17 models to nearly 120 countries and has remained India’s leading passenger vehicle exporter since FY2021-22.

Maruti Suzuki exported more than 1.8 lakh vehicles between April and August of FY2026-27, according to the company. It accounted for more than half of India’s passenger vehicle exports during the period.

The company’s expanding export business is helping change the perception of India’s automobile industry. India has traditionally been seen as a large domestic market, but manufacturers are increasingly using the country to build vehicles for customers across the world.

The Japan numbers offer a particularly strong indication of this shift. Japanese consumers are known for their high expectations around quality, reliability, safety and technology. Winning customers there gives Made-in-India automobiles an important international endorsement.

Maruti Suzuki Managing Director and CEO Hisashi Takeuchi said the one-lakh milestone reflects India’s manufacturing capabilities and the changing India-Japan automobile relationship. He described the achievement as evidence that vehicles manufactured in India are gaining acceptance among Japanese customers.

The success also fits into a broader expansion of India’s role in Suzuki’s global manufacturing network. The company has increasingly used its Indian operations not only to meet domestic demand but also to supply vehicles to markets around the world.

The Fronx, for example, has recorded rapid growth in its global export programme. Its exports crossed one lakh units within 25 months and reached two lakh units in August 2026, according to industry reports.

The Jimny has also become a major export model for Maruti Suzuki. The five-door version is manufactured in India and shipped to more than 100 countries, with Japan among its key destinations.

The latest milestone therefore goes beyond one lakh vehicles. It highlights how India’s automobile manufacturing and export sector is becoming more closely connected to global markets.

It also shows how Suzuki’s long-standing presence in India has evolved. What began as a partnership focused largely on serving Indian car buyers has grown into a manufacturing network supplying vehicles to some of the world’s most competitive markets.

The growing popularity of the Fronx, Jimny 5-door and e Vitara in Japan suggests that Made-in-India cars are no longer limited to emerging markets.

 

Categories
Beyond

FCNR-B inflows leave RBI managing liquidity

The Reserve Bank of India’s drive to bring more foreign currency into the country has produced a bigger response than expected. Now, the central bank is turning its attention to what comes next: managing the large amount of rupee liquidity created by the inflows and helping banks close their dollar-short positions.

Banks raised a substantial amount through Foreign Currency Non-Resident Bank, or FCNR-B, deposits under a special facility launched by the RBI. The programme was aimed at encouraging non-resident Indians and other eligible depositors to park foreign currency with Indian banks for longer periods.

The response was strong enough for the RBI to close the facility earlier than initially planned. By August 31, banks had mobilised around $127.23 billion through FCNR-B deposits, according to provisional data. When other foreign-currency borrowings are included, the total mobilisation was even higher.

The scale of the inflows has now created a new challenge for policymakers. The dollars that came into the banking system were converted and swapped into rupees, leaving banks with a significant amount of additional liquidity.

That means the RBI’s job has effectively moved from attracting foreign currency to managing its impact on domestic money markets.

The situation is particularly visible in the banking system, where surplus liquidity has climbed sharply. Banks are holding more funds than they immediately need, putting downward pressure on short-term interest rates. If the surplus remains elevated, the RBI may need to use its liquidity-management tools to prevent market rates from moving too far away from the policy rate.

The FCNR-B scheme was designed to address concerns around foreign exchange availability and the rupee. The RBI offered banks a special dollar-rupee swap arrangement, making it more attractive for them to mobilise FCNR-B deposits with maturities of three to five years.

The arrangement provided access to foreign currency funding. For the RBI, it helped bring dollars into the financial system at a time when the rupee was facing pressure from global uncertainties.

The latest developments show just how effective the scheme was.

ICICI Bank alone mobilised about $17.88 billion through FCNR-B deposits. The lender offered competitive rates for large deposits and subsequently deployed a portion of the funds through its overseas operations and other international financing activities.

The bank also used part of its foreign currency resources for lending and standby letters of credit, while raising additional funds through dollar-denominated bonds in overseas markets.

ICICI Bank’s experience illustrates how Indian lenders can use the foreign currency raised through the scheme rather than simply keeping the funds idle.

However, the bigger issue for RBI is the effect on the rupee and domestic liquidity.

When banks receive dollars and enter into swaps with the central bank, the transactions have an impact on the amount of rupees circulating in the financial system. With the FCNR-B response much stronger than anticipated, the resulting liquidity surplus has become significant.

This is where dollar-short positions could become important.

Banks that have received foreign currency and entered into currency swaps need to manage their positions as the transactions mature or are unwound. The RBI could use these flows as part of its broader foreign exchange and liquidity management strategy.

The central bank will have to strike a careful balance. It needs to ensure that the rupee does not come under unnecessary pressure while also preventing excess liquidity from distorting short-term interest rates.