Category: Corporate

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Corporate

HAL profit rises 15% after Q1 results

Shares of Hindustan Aeronautics Ltd (HAL) remained in focus on Thursday after the defence manufacturer reported a strong performance for the first quarter of FY27. Better-than-expected earnings and hopes of the long-awaited delivery of LCA Tejas Mk1A fighter jets have led several brokerages to raise their target prices for the stock.

HAL’s standalone net profit rose 15% year-on-year to Rs 1,581 crore in the April-June quarter, compared with Rs 1,377 crore in the same period last year. Consolidated net profit also increased 15% to Rs 1,590 crore, from Rs 1,384 crore a year earlier.

The company’s revenue from operations rose about 14% to Rs 5,515 crore, compared with Rs 4,819 crore in the first quarter of FY26. EBITDA, a measure of operating profit, increased 19% to Rs 1,530 crore.

The strong results have improved investor sentiment around HAL. Shares rose during Thursday’s trading session, after closing at around Rs 4,995 on Wednesday. The stock has also gained about 14% so far this year.

Japanese brokerage Nomura retained its ‘Buy’ rating on HAL and raised its target price to Rs 6,314 from Rs 6,040. It also identified HAL as its preferred stock in the Indian defence sector.

Nomura said the company’s first-quarter performance was better than expected and pointed to its strong order book as a major reason for its positive outlook. HAL ended FY26 with an order backlog of around Rs 2.54 lakh crore, providing significant visibility for future revenue.

Other brokerages have also become more positive on HAL. Motilal Oswal retained its ‘Buy’ rating and increased its target price to Rs 5,800 from Rs 5,500. JPMorgan raised its target to Rs 5,733 from Rs 5,145 while maintaining its ‘Overweight’ rating.

Kotak Securities raised its target price to Rs 5,305 from Rs 4,810 and retained its ‘Add’ rating. Citi maintained its ‘Buy’ call with a target of Rs 5,550, while CLSA retained its ‘Outperform’ rating and Rs 5,481 target.

A key reason behind the improved outlook is the expected start of deliveries of the LCA Tejas Mk1A fighter aircraft. The programme has faced delays, partly because of problems in receiving engines and other components. Analysts now expect the situation to improve.

HAL has received seven GE F404 engines so far. The company is expected to begin Tejas Mk1A deliveries around August-September 2026, according to brokerage estimates.

The Tejas programme is important for HAL because the start of deliveries would show that the company is overcoming earlier supply-chain problems. It would also allow HAL to begin recognising revenue from aircraft deliveries, potentially giving its financial performance another boost.

Nomura expects HAL to deliver six LCA aircraft in FY27, 16 in FY28 and 20 in FY29. It also expects annual production capacity to increase from the current 24 aircraft to 30.

HAL has already built more than 20 Tejas Mk1A airframes, but the delivery of these aircraft to the Indian Air Force remains an important milestone for investors. Timely deliveries could strengthen confidence in the company’s ability to execute its large defence order book.

Apart from Tejas, HAL has several other major programmes that could support its future growth. These include the LCH Prachand attack helicopter, HTT-40 trainer aircraft, AL-31FP and RD-33 engines, and Su-30MKI aircraft upgrades.

The company is also expected to benefit from future programmes involving the Tejas Mk2, Light Utility Helicopter and Indian Multi-Role Helicopter. India’s continuing push to increase domestic defence production is expected to create further opportunities for HAL.

The company’s large order book remains one of its biggest strengths. However, analysts say execution will be crucial. Having a large number of orders provides revenue visibility, but the company must deliver aircraft, helicopters and other defence equipment on schedule to convert those orders into actual revenue and profits.

The government’s focus on reducing defence imports and increasing domestic manufacturing is another positive for HAL. As India expands its indigenous defence capabilities, companies such as HAL are expected to play a central role in supplying aircraft, helicopters, engines and other military platforms.

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Corporate

Sensex gains 110 points, Nifty ends below 24,400

Indian benchmark indices ended mixed on Thursday, with the Sensex gaining 113.61 points while the Nifty 50 declined 40.10 points, as investors remained cautious amid geopolitical uncertainty, elevated crude oil prices and uneven sectoral trends.

The BSE Sensex closed at 78,079.96, gaining 113.61 points, or 0.15%. The Nifty 50 settled at 24,395.85, down 40.10 points, or 0.16%. The Nifty ended below the psychologically important 24,400 mark and extended its losing streak to three sessions.

The trading session remained volatile as investors weighed domestic economic signals against concerns from global markets. Buying interest in selected consumer, automobile and FMCG stocks helped the Sensex recover, while weakness in metals, banks and other heavyweight stocks kept the Nifty under pressure.

Among the top Nifty gainers, Tata Consumer Products emerged as the strongest performer, rising around 2.7%. Tata Motors Passenger Vehicles also gained nearly 2%, while Hindustan Unilever, NTPC and Shriram Finance advanced more than 1% each.

Tata Motors Passenger Vehicles remained in focus following a strong quarterly performance and an optimistic outlook for demand. Investors also took comfort from expectations of continued growth across passenger vehicles and commercial vehicles.

The performance of Tata Group stocks was closely watched after a sharp sell-off in the previous session following the announcement that N Chandrasekaran would not seek another term as chairman of Tata Sons when his current tenure ends in February 2027.

On Thursday, however, several Tata stocks stabilised. Tata Consumer Products emerged as the biggest Nifty gainer, while Tata Motors Passenger Vehicles also attracted buying interest.

On the losing side, UltraTech Cement, Grasim Industries and Hindalco Industries were among the prominent laggards. Weakness in metal stocks was particularly visible, with the Nifty Metal index declining around 1%.

Hindalco and other metal companies faced pressure as investors remained concerned about global commodity prices, demand conditions and the broader international economic outlook. Grasim, which has significant exposure to the metals and cement-related sectors through its businesses, also came under selling pressure.

Banking stocks were another drag on the market. The Nifty Private Bank index declined around 0.5%, while the Nifty Bank index also ended lower. ICICI Bank was among the stocks weighing on the broader market.

The weakness in banks and metals offset gains in consumer-facing companies, automobiles and selected technology stocks, resulting in a divergence between the Sensex and Nifty.

Sectoral performance remained mixed. The Nifty Realty index was among the better performers, gaining close to 1%. Auto, FMCG, IT, media and consumer durable stocks also recorded gains. In contrast, metal, private banking and some pharmaceutical stocks remained under pressure.

Global developments continued to influence investor sentiment. Crude oil prices remained elevated amid uncertainty surrounding the Middle East and the Strait of Hormuz. Brent crude traded around the $87-$88 per barrel range, keeping concerns alive over India’s import bill and inflation.

India imports a large portion of its crude oil requirements, making sustained increases in global oil prices a key risk for the domestic economy. Higher crude prices can raise transportation and input costs for companies and put pressure on inflation and the country’s current account balance.

Geopolitical uncertainty has therefore become an important factor for investors. Any further disruption around key energy routes could push crude prices higher and increase volatility across global equity markets.

At the same time, investors found some comfort in recent inflation data from India and the US. Softer inflation readings have supported expectations that central banks may not need to maintain an aggressively restrictive monetary policy stance.

Foreign fund flows remained another concern. Foreign institutional investors have continued to sell Indian equities, reflecting caution over valuations, global interest rates and geopolitical risks. Persistent foreign selling has added pressure to large-cap stocks even as domestic investors have continued to provide support.

The broader market showed greater resilience than the headline indices. Mid-cap and small-cap stocks remained relatively firm, with several stocks witnessing buying interest despite the weakness in the Nifty.

Market breadth was also fairly balanced, suggesting that Thursday’s decline in the Nifty did not represent a broad-based sell-off across the entire market. Instead, pressure was concentrated in selected heavyweight sectors.

The Nifty’s inability to reclaim 24,400 remains a concern for investors watching near-term market momentum. The index has struggled to sustain gains above the 24,500 level in recent sessions, while the Sensex has shown comparatively better resilience.

For the moment, the market remains caught between domestic support from selected sectors and external risks stemming from oil prices and geopolitical tensions. Thursday’s mixed finish reflected that uncertainty, with the Sensex managing a modest gain while the Nifty remained below 24,400.

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Corporate

Bank of America to take 49.9% stake in Jio Credit

Bank of America is set to acquire up to a 49.9% stake in Jio Credit, the lending subsidiary of Jio Financial Services, in a deal worth as much as ₹18,268 crore ($1.9 billion). The agreement marks a significant entry by the US banking major into India’s rapidly expanding consumer credit and non-banking financial services market.

Under the proposed transaction, Bank of America will initially acquire a 26.5% stake in Jio Credit. It will have the option to raise its holding to 49.9% through warrants, subject to regulatory approvals and other conditions. The investment will create a joint venture between Bank of America and Jio Financial Services.

The transaction values Jio Credit at around ₹36,600 crore after the investment. The deal also gives the US lender a direct position in a business that has expanded rapidly since Jio Financial Services began building its financial services operations independently.

Jio Credit has become a key part of Jio Financial’s lending strategy. The company offers a range of products including home loans, loans against property, loans against mutual funds and shares, corporate loans and financing solutions for businesses. Its digital-first model is designed to make financial products easier to access across India.

As of June 30, 2026, Jio Credit had assets under management of about ₹30,667 crore, highlighting the scale it has achieved in a relatively short period. The lending business has grown as demand for consumer and business credit has increased across the country.

The investment for Bank of America provides a way to participate directly in India’s growing financial services market. India has seen increasing demand for loans as household incomes rise, businesses expand and more consumers move into the formal financial system.

The partnership will combine Jio’s understanding of the Indian market and its digital ecosystem with Bank of America’s global financial expertise. The two companies are expected to work together to expand Jio Credit’s lending operations and develop wider access to financial products.

The deal is also significant because Bank of America has traditionally been much stronger in corporate banking, investment banking and wealth management than in direct retail lending in overseas markets. Its investment in Jio Credit therefore represents a sizeable strategic bet on India’s long-term credit growth.

Jio Financial Services, backed by Reliance Industries chairman Mukesh Ambani, has been steadily expanding its presence across India’s financial sector. The company was separated from Reliance Industries and listed as an independent entity in 2023.

Since then, Jio Financial has pursued partnerships with several major international financial institutions. It has joined hands with BlackRock in asset management and with Allianz in insurance. The Bank of America transaction adds another major global financial institution to that growing network.

Jio Financial’s growing network of partnerships reflects the broader corporate activity taking place across India’s financial and business sectors. Follow more major corporate deals and developments in our Corporate News section.

For Jio Financial, bringing in Bank of America could provide more than capital. The partnership could provide access to international expertise in areas such as credit assessment, risk management, financial product development and lending practices.

The timing is also important. India’s NBFC sector has become an increasingly important source of credit for consumers and businesses. Digital technology has allowed non-bank lenders to reach customers more efficiently, while the expansion of digital payments and financial inclusion has created new opportunities for lenders.

Jio has a particularly large digital ecosystem through its telecommunications and technology businesses. The group has millions of customers and extensive digital infrastructure, giving its financial services operations a potentially significant distribution advantage.

Bank of America’s investment indicates that global financial institutions are paying close attention to this opportunity. The deal comes amid a broader increase in foreign interest in India’s banking and financial services industry.

Other international banks have also increased their exposure to Indian financial institutions in recent years, attracted by the country’s economic growth and relatively strong credit demand. The Jio Credit transaction stands out because of its size and because it gives Bank of America a substantial stake in a relatively young lending platform.

Investors also responded positively to the announcement. Jio Financial Services shares rose more than 3% on August 13, reaching around ₹263 during trading, as markets assessed the potential benefits of the partnership. The reaction reflected expectations that the deal could accelerate the company’s expansion in lending and strengthen its financial position.

The transaction, however, is still subject to the required regulatory and statutory approvals. Bank of America’s initial 26.5% holding will be established through an investment in Jio Credit, while the additional stake will come through warrants that can potentially take its ownership to 49.9%.

The investment also gives Jio Credit additional resources to expand its loan book. For a growing NBFC, access to capital is crucial as lending volumes increase because a larger loan book requires a stronger capital base and robust risk-management systems.

Jio Credit has already reported strong growth in its core lending operations. For the financial year ended March 2026, its net interest income reached ₹625 crore, while profit after tax rose to ₹224 crore. The company also reported a capital adequacy ratio of 25.91%, indicating a strong capital position.

The Bank of America partnership could now provide another boost as Jio Financial seeks to build a broader financial services ecosystem spanning lending, payments, insurance, investments and asset management.

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Sensex drops 160 points, Nifty falls below 24,350

Indian equity markets remained under pressure on Thursday as investors stayed cautious amid elevated crude oil prices, geopolitical uncertainty and selling in heavyweight stocks. The Sensex fell more than 160 points, while the Nifty 50 slipped below 24,350, extending losses for a third consecutive session. The weakness came despite some support from easing oil prices and gains in select stocks, including Tata Motors.

The opening weakness reflected a cautious mood on Dalal Street after the benchmark indices had already closed lower in the previous two sessions. The Nifty had ended Wednesday at 24,435.95, while investors continued to assess the impact of higher crude prices, developments in the Middle East and recent selling across Tata Group stocks.

Crude oil continues to be one of the biggest risks for Indian equities. Oil prices have remained elevated amid uncertainty surrounding the Middle East and unresolved negotiations involving Iran and the United States.

Brent crude was trading close to $88 a barrel, keeping investors concerned about the impact on India’s import bill. India is one of the world’s largest crude oil importers, making the domestic economy particularly sensitive to sharp increases in global energy prices. Higher crude prices can put pressure on inflation, the current account and corporate margins.

The concern is also reflected in the currency market. The rupee slipped 7 paise to ₹95.40 against the US dollar in early trade on Thursday, with foreign fund selling and geopolitical risks weighing on sentiment. A weaker rupee can further increase the domestic cost of imported crude oil.

Among the major stocks, Tata Motors was one of the strongest performers, with shares surging around 4.6% after the company reported strong quarterly results and offered a positive demand outlook. The gain provided some support to the broader auto sector at a time when most major indices were trading in the red.

Tata Motors’ performance also stood out against the broader weakness in Tata Group stocks. The group had faced selling pressure in the previous session following the announcement that N Chandrasekaran would not seek another term as Tata Sons chairman. Tata-related stocks stabilised somewhat on Thursday, although investor attention remained firmly on the group’s leadership transition.

Top gainers included Tata Motors, along with stocks such as Gujarat Fluorochemicals, Somany Ceramics and Sun TV Network, which also saw buying interest during the session.

On the other side, Reliance Industries fell around 1.1%, adding pressure to the benchmark indices. The stock came under pressure after MSCI reduced its weight in its index. Given Reliance’s significant representation in India’s major equity benchmarks, movements in the stock can have a meaningful impact on the Sensex and Nifty.

UltraTech Cement was among the major losers, while Titan and several financial and technology stocks also traded lower. Goodyear India and Shriram Properties were among other stocks that faced selling pressure.

The top losers therefore included Reliance Industries, UltraTech Cement, Titan, Goodyear India and Shriram Properties, while Tata Motors, Gujarat Fluorochemicals, Somany Ceramics and Sun TV Network featured among the notable gainers.

The broader market did not move in one direction. Financials and IT stocks remained under pressure, with both sectors falling around 0.4% during mid-morning trade. However, small-cap stocks gained about 0.3%, suggesting that buying interest remained present in selected pockets of the market. Mid-cap stocks were comparatively weaker.

Investors are also tracking a busy corporate earnings calendar. UltraTech Cement, Tata Motors Passenger Vehicles, Axis Bank, Apollo Hospitals and Ircon are among the stocks in focus as traders assess quarterly results and company-specific developments.

Thursday’s trading session is also taking place against the backdrop of derivatives expiry, which could amplify intraday movements. With the Nifty already below the 24,350 level, traders are watching whether the index can regain key support zones or whether further selling emerges.

Despite the weak domestic market, global cues have been relatively supportive. US equities ended higher, helped by expectations around interest rates and strong earnings from companies linked to artificial intelligence infrastructure. Asian markets were also broadly positive. However, these gains have not been enough to offset concerns over crude oil and geopolitical developments.

As far as investors are concerned, the current market phase is being shaped by a tug-of-war between strong domestic fundamentals and external risks. Corporate earnings and domestic economic activity offer some support, but expensive crude, a weaker rupee, foreign institutional selling and geopolitical uncertainty continue to keep traders cautious.

 

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Zydus Lifesciences revenue rises 22% to Rs 8,017 cr

Zydus Lifesciences reported a sharp decline in profitability for the first quarter of financial year 2026-27, even as the pharmaceutical company delivered strong growth in revenue. Consolidated net profit fell 36% year-on-year to Rs 939.8 crore, compared with Rs 1,466.8 crore in the same quarter last year.

Revenue from operations, however, rose 22% to Rs 8,017 crore from Rs 6,573.7 crore a year earlier. The contrasting performance highlights the pressure on the company’s earnings as expenses increased faster than sales.

The key concern for Zydus Lifesciences in the June quarter was operating profitability. EBITDA declined 7.6% year-on-year to Rs 1,929.4 crore from Rs 2,088.5 crore. The EBITDA margin consequently fell to 24.1%, compared with 31.8% in the year-ago period. The contraction shows that a substantial part of the additional revenue was absorbed by higher costs.

The rise in expenses was particularly significant during the quarter. Higher spending on research and development, employee costs and other operating expenses affected the bottom line. The company has been investing heavily in new products, specialty medicines and acquisitions, which are expected to support longer-term growth but are also adding to near-term costs.

Despite the pressure on margins, Zydus recorded healthy performance across several business segments. Its India formulations business remained a major contributor, supported by continued demand for medicines in chronic and acute therapy areas. The company has been expanding its presence in segments such as cardiology, diabetology, oncology, nephrology and women’s health.

Consumer wellness emerged as another strong area. The business, which includes brands such as Glucon-D, Sugar Free, Complan, Nycil and Everyuth, continued to gain traction. Strong consumer demand helped diversify Zydus’ revenue base beyond its traditional prescription medicines business.

International markets also provided momentum during the quarter. Growth outside the United States remained strong, helping offset some of the weakness in the North American business. The company has been working to build a wider international footprint while reducing its dependence on any single market.

The US formulations business remained under pressure, with revenue declining during the quarter. The American generics market continues to face intense competition and pricing pressure, making volume growth and new product launches increasingly important for pharmaceutical companies.

Zydus, however, continued to expand its US portfolio through regulatory approvals and launches. The company filed new abbreviated new drug applications and received multiple approvals during the quarter. It also launched new products, strengthening its pipeline in generic and specialty medicines.

The company is simultaneously increasing its focus on complex and differentiated products. Its specialty portfolio is expected to become an increasingly important part of the business as Zydus looks beyond conventional generics. The acquisition of Assertio Holdings has also expanded its presence in specialty pharmaceuticals and added products to its commercial portfolio.

Research and development remains central to this strategy. Zydus has continued to allocate a significant portion of its revenue towards R&D, with projects spanning biosimilars, vaccines, new chemical entities and specialty therapies. Such investments could create new sources of growth, although they are likely to keep expenditure elevated in the near term.

During the quarter, Zydus made progress on several development programmes. Its pipeline included work on biosimilars, vaccines and treatments targeting specialised diseases. The company also advanced regulatory filings and clinical programmes in India and overseas markets.

The company is therefore entering FY27 with a business mix that is changing rapidly. Traditional pharmaceutical operations continue to generate the bulk of revenue, while consumer wellness, specialty medicines, international operations and innovative products are gaining importance.

For investors, the immediate challenge is whether this growth can eventually translate into better margins. The 22% increase in revenue demonstrates that demand remains healthy, but the 36% decline in net profit shows that growth is currently being accompanied by substantial cost pressures.

The margin movement is particularly important because Zydus had delivered significantly higher operating profitability in the previous year. The latest quarter suggests that the company is entering a phase in which investment-led growth could weigh on earnings before the benefits of new products and acquisitions become fully visible.

The performance of the US business will also remain closely watched. A recovery in North American sales, combined with new product launches and greater contribution from specialty medicines, could provide support to future earnings. At the same time, stronger growth in India, consumer wellness and other international markets gives the company some protection against weakness in the US generics market.

Zydus Lifesciences’ Q1 FY27 results therefore present a mixed picture. Revenue growth was strong, but profitability weakened considerably. The company is spending more to expand its product pipeline, strengthen its specialty portfolio and build new growth engines.

 

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Sensex nears 190 points, Nifty below 24,450

Indian benchmark indices ended lower on Wednesday, August 12, after a volatile session in which the Sensex briefly fell more than 600 points before recovering most of its losses. The BSE Sensex closed 187.90 points, or 0.24%, lower at 77,966.35, while the NSE Nifty50 declined 35.75 points, or 0.15%, to 24,435.95.

The market remained under pressure through much of the session as investors reacted to rising crude oil prices, weakness in select heavyweight stocks and uncertainty following N Chandrasekaran’s decision to step down as Tata Sons chairman. The leadership development triggered selling across several Tata Group companies and became one of the day’s key market-moving factors.

Tata Consultancy Services (TCS) was among the biggest Nifty losers, falling sharply during the session. Tata Motors, Tata Steel, Titan and Tata Consumer Products also declined, weighing on the benchmark indices because of their significant market capitalisation. TCS ended around 3.9% lower, while Tata Motors fell about 3.3% and Titan and Tata Steel declined more than 2% each.

The selling in Tata stocks came as investors assessed the implications of Chandrasekaran’s departure and the eventual transition at the top of the Tata conglomerate. Analysts described the initial reaction as a knee-jerk response, while noting that the group’s diversified businesses and strong operating franchises could help stabilise sentiment once greater clarity emerges around the succession process.

Rising crude oil prices added another layer of pressure. Brent crude traded close to $90 a barrel amid heightened tensions in the Middle East. For India, higher oil prices are a concern because the country imports a large share of its crude requirements. Sustained increases can raise the import bill, put pressure on the rupee and potentially affect inflation and corporate profit margins.

The technology sector also remained weak. The Nifty IT index was among the worst-performing sectoral indices, with TCS and Infosys facing selling pressure. Infosys fell about 1% during the session, while TCS was significantly weaker. The weakness in large IT stocks contributed to the broader pressure on the Nifty50.

However, the session was not entirely negative. Metal stocks emerged as a bright spot after global aluminium prices climbed to a seven-week high. Hindalco Industries and National Aluminium Company (NALCO) were among the notable gainers. NALCO jumped as much as 8%, while Hindalco gained about 2.7% in response to supply concerns and stronger aluminium prices.

Hindalco emerged as the top Nifty50 gainer during the session, while NALCO was among the strongest performers in the broader market. The rally followed concerns over global aluminium supply, including production disruptions, which supported prices and improved the outlook for aluminium producers.

The broader market showed comparatively better resilience. Mid-cap stocks managed to outperform the benchmark indices, with the Nifty MidCap index gaining around 0.3%. This suggested that investors continued to find opportunities in select companies despite the pressure on large-cap stocks.

Among other individual stocks, Godrej Consumer Products suffered a steep decline after CEO Sudhir Sitapati announced his departure. The stock fell more than 11% during the session, making it one of the prominent losers outside the major Tata counters. The sudden leadership change added to concerns over near-term business visibility.

Healthcare stocks also faced selling pressure after a regulatory recommendation relating to private hospital charges. Several hospital stocks declined between 1.7% and 3.8%, adding to the weakness in specific sectors.

The market’s decline came despite signs of selective buying in sectors such as metals and public-sector banking. Investors continued to track the first-quarter earnings season, with individual stocks reacting strongly to company-specific results. Strong earnings helped some stocks buck the broader market trend, while disappointing numbers or management changes triggered sharp selling elsewhere.

The rupee also remained a key factor for investors as elevated crude prices threatened to increase pressure on India’s external balance. With inflation data from India and the United States due to influence expectations around monetary policy, traders remained cautious about taking aggressive positions.

The Nifty50 ended below the 24,450 level, keeping the index in a technically sensitive zone. The market’s ability to hold the 24,400 area could be important in determining its near-term direction, while a sustained recovery above 24,500 may improve sentiment.

For now, Dalal Street remains caught between domestic corporate developments and global macroeconomic risks. Strong performances by Hindalco and NALCO provided some relief, but losses in TCS, Tata Motors, Titan and other heavyweight stocks kept the benchmark indices in negative territory.

The market is likely to remain sensitive to crude oil movements, geopolitical developments, inflation data and further corporate earnings. Investors will also closely watch developments around the Tata Group‘s leadership transition, making the next few trading sessions important for gauging whether Wednesday’s weakness was temporary or the beginning of a broader period of consolidation.

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Manappuram Finance profit surges 341% in Q1 FY27

Manappuram Finance delivered a sharp improvement in financial performance in the first quarter of FY27, with consolidated net profit rising 341.4% year-on-year to ₹584.77 crore. The company had reported a consolidated profit of ₹132.47 crore in the corresponding quarter last year. Profit also increased 44.5% from ₹404.79 crore in the March quarter, showing that the improvement was not limited to a low year-ago base.

The strong quarterly performance was driven mainly by a rapid expansion in the company’s gold loan business, higher operating earnings, lower provisions and a turnaround in its microfinance subsidiary Asirvad Microfinance. The results mark a significant recovery for the Kerala-based non-banking financial company (NBFC), particularly after a challenging period for its microfinance operations.

Manappuram Finance’s consolidated assets under management (AUM) increased 57.2% year-on-year to ₹69,635 crore as of June 30, 2026. The AUM was also 9.1% higher than the ₹63,833 crore recorded at the end of March. The growth reflects a strong expansion in the company’s secured lending franchise, with gold loans emerging as the principal engine of growth.

Gold loan AUM nearly doubled during the year, rising 97.9% to ₹57,006 crore from ₹28,802 crore in Q1 FY26. On a sequential basis, the gold loan portfolio grew 11.9% from ₹50,953 crore at the end of March. Gold loans therefore accounted for about 82% of Manappuram Finance’s consolidated AUM at the end of the June quarter.

The sharp rise in the gold loan portfolio highlights the continued importance of gold-backed credit to Manappuram Finance’s business model. Demand for such loans has remained strong as borrowers seek quick access to funds against household gold, while lenders benefit from the secured nature of the portfolio.

At the same time, the company’s non-gold loan portfolio remained under pressure. Consolidated non-gold AUM declined 18.5% year-on-year to ₹12,629 crore and fell 1.7% sequentially. The numbers underline the increasing concentration of the company’s overall growth around gold loans, even as other businesses continue to be developed.

Another important improvement came from Asirvad Microfinance. The subsidiary reported a profit after tax of ₹21 crore in Q1 FY27, compared with a loss of ₹269 crore in the same quarter a year earlier. It had reported a profit of ₹13 crore in the March quarter. The turnaround helped strengthen Manappuram Finance’s consolidated earnings and reduced the drag from the microfinance business seen during the previous financial year.

Asirvad’s total AUM stood at ₹7,188 crore at the end of June, up 7.2% year-on-year and 5.8% sequentially. However, its core microfinance AUM remained 12.9% below the year-ago level. Its gold loan portfolio more than doubled to ₹2,344 crore, showing that the subsidiary is also benefiting from the broader expansion in gold-backed lending.

Asset quality at Asirvad showed some improvement as well. Its gross non-performing asset ratio stood at 4.8%, unchanged from March, while the net NPA ratio improved to 1.4% from 1.6%. The recovery in profitability, together with better net asset quality, provides some relief after the pressure faced by the microfinance sector.

Manappuram Finance also reported stronger core operating income. Net interest income rose 25% year-on-year to around ₹1,759 crore in Q1 FY27 from ₹1,407 crore a year earlier, according to the company’s latest earnings disclosures.

The company also declared an interim dividend of ₹1 per equity share, with the shares having a face value of ₹2. The payout adds to the positive investor response to the quarterly results. Manappuram Finance’s capital position remained comfortable, with its capital adequacy ratio at 21.29% and consolidated net worth at ₹16,552 crore as of June 30.

The quarter also comes at a significant point in Manappuram Finance’s corporate evolution. The company is preparing for a leadership transition following Bain Capital’s investment and entry into the business. Ashish Singh has been appointed as managing director and chief executive officer and is expected to take charge from January 1, 2027. V.P. Nandakumar is set to move to a non-executive chairman role.

The strong Q1 FY27 numbers therefore come against the backdrop of both operational recovery and a broader change in the company’s management structure. For Manappuram Finance, the immediate focus will be on sustaining gold loan growth, improving the performance of non-gold businesses and maintaining asset quality as the balance sheet expands.

The company’s first-quarter performance suggests that gold loans remain the clear growth driver, while the return of Asirvad Microfinance to profitability has strengthened the overall earnings picture. With AUM growth, improved operating earnings and a substantial rise in consolidated profit, Manappuram Finance has begun FY27 on a much stronger footing. The challenge now will be to convert this sharp quarterly recovery into sustainable growth across its wider lending portfolio.

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Lalithaa Jewellery mart sets August IPO price band

Lalithaa Jewellery Mart is set to enter the Indian primary market on August 17 with a ₹1,700-crore initial public offering (IPO), giving investors an opportunity to participate in one of the country’s fast-growing organised jewellery retailers. The Chennai-based company has fixed the IPO price band at ₹190-₹201 per equity share. The issue will remain open for subscription until August 19, 2026.

The IPO comprises a fresh issue of shares worth up to ₹1,200 crore and an offer for sale (OFS) of up to ₹500 crore by promoter M. Kiran Kumar Jain. Investors can bid for a minimum of 74 shares and in multiples of 74 thereafter. At the upper end of the price band, the minimum investment for a retail investor would therefore be ₹14,874.

The issue comes at a time when India’s organised jewellery sector is seeing increasing consumer interest, supported by rising incomes, greater preference for branded retailers and demand for certified jewellery. Lalithaa Jewellery Mart has built its business largely around southern India, where gold jewellery remains closely linked to weddings, festivals, savings and family occasions.

The company operates under the Lalithaa brand and sells gold, silver and diamond jewellery. As of March 31, 2026, it had 61 stores across 51 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry. Together, these stores covered about 650,881 square feet of operational space.

A major feature of the company’s retail strategy is its presence beyond large metropolitan markets. Of its 61 stores, 45 were located in Tier-II and Tier-III cities in fiscal 2026. These outlets contributed 60.25% of the company’s revenue, according to information cited from a CRISIL report. This gives Lalithaa exposure to jewellery demand in smaller cities and towns, where organised retail is gradually gaining ground.

The company has also focused on large-format stores. Of its 61 outlets, 51 had an area of more than 5,000 square feet during FY26. Thirty-nine of these larger stores were located in Tier-II and Tier-III cities. The strategy allows the retailer to display a wider range of gold, silver and diamond jewellery while creating a standardised shopping experience across locations.

Manufacturing is another important part of Lalithaa Jewellery Mart’s business model. The company operates manufacturing facilities in Thirumudivakkam, Chennai, and Maraimalai, Kanchipuram, through its wholly owned subsidiary Asita Jewellery Manufacturing. The Chennai facility began operations in December 2024. In-house manufacturing is intended to give the retailer greater control over product design, quality and pricing.

The company says this manufacturing capability helps it offer jewellery at competitive prices. Its products are positioned around authenticated BIS-hallmarked jewellery, an increasingly important consideration for consumers as buyers become more conscious of purity and certification.

Lalithaa also uses customer-focused jewellery savings schemes, including Dhana Vandhanam and Free-yo-Flexi. Such programmes are designed to encourage repeat purchases and maintain customer engagement, particularly in a market where jewellery buying is often planned over several months.

The company’s financial performance has also strengthened significantly. Revenue from operations rose to ₹25,023.93 crore in FY26 from ₹16,788.05 crore in FY24. Net profit increased to ₹1,009.82 crore from ₹359.83 crore during the same period. The company reported operating revenue per store of ₹410.23 crore in FY26, compared with ₹281.62 crore in FY25 and ₹316.76 crore in FY24, according to figures cited from the CRISIL report.

The fresh issue portion of the IPO will bring new capital into the company, while the OFS component will provide an exit opportunity to the promoter. For investors, the key question will be whether Lalithaa can sustain its growth as it expands its retail footprint while managing the challenges associated with gold prices, inventory requirements and consumer demand.

The IPO also arrives amid a busy period for India‘s primary market, with several consumer and jewellery companies seeking investor attention. Lalithaa’s large issue size and established store network could make it an important offering to watch.

For the company, the listing is more than simply a fundraising exercise. It marks a transition from a privately held regional jewellery retailer to a publicly traded organised jewellery business. Its ability to maintain growth, expand in smaller cities and convert its manufacturing and retail strengths into consistent profitability will be closely watched after listing.

 

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Corporate

US weighs China tech ban as AI supply chains tighten

The United States is moving to tighten restrictions on Chinese technology used in two strategically important areas, artificial intelligence infrastructure and renewable energy, as the Trump administration seeks to reduce dependence on foreign suppliers and strengthen domestic manufacturing.

The latest move involves a possible US ban on new Chinese-made optical transceivers, components that are critical to the high-speed networks connecting servers inside data centres. At the same time, an existing Federal Communications Commission (FCC) restriction on new foreign-made power inverters is pushing companies to expand manufacturing capacity in the US.

The developments underline a broader shift in US technology and energy policy, where supply-chain security is increasingly being treated as a national security issue.

The FCC is reportedly preparing a proposal that would add new-model optical transceivers manufactured in China to equipment covered by restrictions under the Secure Networks Act. The precise definition of a Chinese manufacturer and what qualifies as a “new model” has not yet been disclosed.

Optical transceivers may not be as familiar to consumers as AI chips or servers, but they are essential to modern data centres. They convert electrical signals into optical signals and allow huge volumes of data to move rapidly through fibre-optic networks.

That makes them particularly important as companies race to build AI data centres. Advanced AI systems require enormous computing power, but the chips themselves are only part of the equation. The processors also need fast, reliable connections to communicate with one another and share data.

China has a major position in this supply chain. According to TrendForce data cited by Tom’s Hardware, Chinese optical-module manufacturers account for about 56% of global manufacturing capacity for the technology in 2026. The proposed restrictions are therefore aimed not only at cybersecurity concerns but also at reducing US dependence on Chinese suppliers.

US officials have argued that Chinese-made equipment used in critical infrastructure could create cybersecurity and national-security vulnerabilities. FCC Chairman Brendan Carr has said restrictions are intended to encourage companies to bring production to the US before potentially risky foreign technologies become deeply embedded in American infrastructure.

The FCC has already taken similar action involving other technologies. Since December, the agency has restricted new models of foreign drones, routers, robots and power inverters, with waivers available to some non-Chinese suppliers. In July, the FCC also barred new Chinese humanoid and quadruped robots and connected power inverters from gaining US approval.

The inverter restrictions are already beginning to reshape the US solar industry.

Power inverters are a critical part of solar and battery systems because they convert electricity and enable renewable-energy installations and storage systems to connect with the electricity grid. The US has traditionally relied heavily on imported inverter equipment.

Wood Mackenzie estimates that more than 200 GWac of photovoltaic inverters have been supplied to commercial, industrial and utility-scale projects in the US over the past decade. More than 90% were imported, including more than 70 GW from Chinese-headquartered manufacturers, most of which were supplied from factories in Southeast Asia. Chinese vendors accounted for nearly half of the US inverter market in 2024 and 2025.

The new restrictions could have significant consequences for solar developers because US-made equipment is currently more expensive. Wood Mackenzie expects average inverter prices to increase in 2027 as procurement shifts away from cheaper foreign products towards domestic manufacturing.

However, the US is also rapidly expanding its ability to make the equipment at home. Manufacturers have announced plans for more than 100 GWac of US photovoltaic and power-conversion-system inverter manufacturing capacity by the end of 2027. If those projects are completed, domestic production could meet the new demand created by the FCC restrictions.

The immediate challenge is cost. Domestic manufacturing involves higher labour, component and production expenses, meaning solar project developers could face higher upfront costs. Wood Mackenzie expects prices to moderate over time as more factories come online and competition increases.

The shift could nevertheless provide companies with greater supply-chain certainty. Developers would become less exposed to sudden import restrictions, geopolitical tensions or changes in US-China trade policy.

The same calculation is now emerging in the AI sector. US hyperscalers are investing heavily in data centres and increasingly depend on optical interconnects to move data between large numbers of AI processors. A sudden restriction on Chinese optical transceivers could therefore increase procurement costs and put pressure on availability while alternative suppliers expand production.

Industry analysts have warned that restrictions could also have unintended consequences for American technology companies. Cutting off a major supplier base could increase costs for data-centre operators and potentially affect the efficiency and pace of AI infrastructure expansion.

There are also questions about how quickly alternative supply chains can develop. While the US is building domestic capacity in areas such as solar inverters, optical networking has a different manufacturing ecosystem and China currently holds a substantial share of global capacity.

The policy also faces concerns over transparency. FCC Commissioner Anna Gomez has supported the national-security rationale behind the restrictions but criticised what she described as a chaotic rollout of major technology-policy changes. She has called for greater transparency to ensure that the rules do not appear to favour particular companies or technologies.

For the US, the broader objective is becoming clear: reduce dependence on China in technologies considered essential to the future economy. AI data centres, fibre-optic networks, solar installations and battery systems are increasingly being viewed not merely as commercial infrastructure but as strategic assets.

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Corporate

Sensex falls over 150 points, Nifty slips below 24,450

Indian equities opened lower on Wednesday as a combination of higher crude oil prices, geopolitical uncertainty and cautious global cues kept investors on the defensive. The Sensex fell more than 150 points, while the Nifty 50 slipped below 24,450, with selling pressure visible across several key sectors.

The Nifty opened around the 24,400 level and remained under pressure in early trading, while the Sensex traded below the previous session’s close. The weakness came after both benchmarks had ended lower on Tuesday, reflecting concerns over the impact of elevated crude prices on India’s inflation outlook, corporate profitability and external balances.

Crude oil remained the biggest macroeconomic trigger for Indian markets. Brent crude moved closer to $90 a barrel, raising concerns for India, one of the world’s major oil importers. A sustained rise in crude prices can increase input and transportation costs for businesses, put pressure on operating margins and widen India’s trade deficit. It can also weigh on the rupee and complicate the inflation outlook.

The latest movement in oil prices has been influenced by geopolitical developments and uncertainty around supply, particularly concerns involving the Strait of Hormuz. Investors are watching whether the increase in crude prices will be temporary or develop into a prolonged trend. For Indian companies, the distinction is important because a short-term spike can often be absorbed, while sustained high energy costs can have a more meaningful impact on profitability.

Despite the broader market weakness, Hindalco Industries emerged as one of the top gainers, rising around 2% in early trade. The stock’s performance provided some relief as metal shares showed relative strength. Investors continued to track commodity-linked companies amid changes in global commodity prices and demand expectations.

On the other side, Bajaj Finserv was among the top losers, declining around 1% during early trading. Financial stocks remained under pressure as investors assessed the broader risk environment and the possibility of continued volatility in domestic and global markets.

Godrej Consumer Products witnessed a much sharper decline and became one of the key stocks in focus. Its shares fell heavily after CEO Sudhir Sitapati resigned unexpectedly, creating uncertainty around the leadership and execution of the consumer goods company. The sudden management change triggered a negative response from investors, with analysts reassessing the company’s near-term outlook.

HSBC subsequently downgraded Godrej Consumer Products, citing uncertainty and execution challenges following the leadership transition. Aasif Malbari is expected to take over as the company’s new CEO. Investors will now watch the transition closely, particularly its potential impact on business strategy, growth and execution.

Several other stocks were also in focus during Wednesday’s session, including Larsen & Toubro, Tata Motors, Hindustan Aeronautics, Grasim Industries, NBCC India and IRCTC. Company-specific developments, earnings updates and sectoral trends continued to influence individual stocks even as broader market sentiment remained weak.

Another factor likely to influence market activity in the coming weeks is the expiry of post-IPO lock-in periods. Shares of at least 45 recently listed companies are expected to become eligible for trading over the next two months. Nuvama Alternative & Quantitative Research estimates that shares worth about $7.6 billion could be unlocked between August 12 and the end of September.

The expiry of these lock-ins does not automatically mean shareholders will sell. However, the additional supply could increase volatility in recently listed companies, particularly those trading at elevated valuations. Institutional investors are expected to monitor these unlocks closely as they assess potential changes in liquidity and selling pressure.

Domestic investment flows have also emerged as an important market indicator. Retail investors’ equity mutual fund investments declined nearly 15% in July to Rs 24,697 crore, compared with Rs 28,973 crore in June. Despite the fall in monthly equity fund investments, systematic investment plan contributions remained resilient.

SIP contributions stood at Rs 31,961 crore in July, marginally higher than Rs 31,781 crore in June. The steady SIP numbers indicate that India’s domestic investor base continues to provide structural support to equities even when market conditions become volatile.

For traders, the 24,400 level on the Nifty has emerged as an important immediate support. Analysts are also watching the 24,250-24,200 zone, while a recovery could bring the index towards 24,800. The ability of the Nifty to hold these levels could determine the direction of the market in the near term.

Global markets provided mixed signals. Asian equities traded unevenly, with the Hang Seng, Nikkei futures and Australia’s ASX 200 under pressure, while South Korea’s Kospi gained. The mixed trend offered little clarity to Indian investors ahead of key global economic data.

Markets are also awaiting the US Consumer Price Index inflation data, which could influence expectations around the Federal Reserve’s interest-rate decisions. A stronger-than-expected inflation reading could push bond yields higher and weigh on emerging-market equities, while softer inflation could support expectations of easier monetary policy.

The GIFT Nifty also indicated a cautious start before the Indian market opened, reflecting the lack of strong positive global cues.