Category: Corporate

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Corporate

Swiggy loss narrows as revenue surges 37% in Q1

Swiggy has started the new financial year on a stronger note, with revenue rising sharply and losses narrowing in the first quarter of FY27. The company’s latest earnings show that its efforts to improve operating efficiency are beginning to make a difference, even as it continues to spend heavily on expanding its quick-commerce business.

For the quarter ended June 30, 2026, Swiggy reported a consolidated net loss of ₹791 crore, nearly 34% lower than the ₹1,197 crore loss recorded in the same quarter last year. The loss was also slightly lower than the ₹800 crore reported in the March quarter.

Revenue from operations increased 37.31% year-on-year to ₹6,812 crore from ₹4,961 crore in Q1 FY26. On a sequential basis, revenue was up 6.72% from ₹6,383 crore in the March quarter. Total revenue, including other income, stood at ₹7,023 crore, up 39.12% from ₹5,048 crore a year earlier.

The improvement is particularly significant because Swiggy is still investing aggressively in quick commerce, where competition remains intense. Yet, the company managed to grow revenue faster than expenses. Total expenses stood at ₹7,813 crore in Q1 FY27, compared with ₹6,244 crore a year earlier and ₹7,448 crore in the previous quarter.

That has helped improve the company’s operating performance. EBITDA loss narrowed to ₹650 crore from ₹954 crore in Q1 FY26. The EBITDA margin improved to negative 9.54%, compared with negative 19.23% a year earlier. The numbers suggest that Swiggy is getting more operating leverage as its businesses scale.

The biggest positive development came from Instamart, Swiggy’s quick-commerce business. The company said the vertical achieved contribution breakeven during the quarter, an important milestone in its effort to make the business financially sustainable.

Instamart’s Gross Order Value, or GOV, rose 39.8% year-on-year to ₹7,907 crore. Its contribution margin improved to negative 0.2%, a 440-basis-point improvement from the year-ago period. Instamart’s adjusted EBITDA loss also declined by ₹80 crore sequentially.

For Swiggy, this is an important shift. Quick commerce has been one of the biggest sources of losses for the company as it raced to add dark stores and compete with rivals in the fast-growing online grocery and convenience market. Reaching contribution breakeven means the business is now covering its variable costs at the contribution level, although it has not yet become fully profitable.

Swiggy management believes the next phase of Instamart’s growth will come from a wider and more differentiated product assortment, along with efficiencies created by increasing scale. Managing Director and Group CEO Sriharsha Majety said the contribution-breakeven milestone marked an important inflection point for the business.

Instamart’s progress is one part of Swiggy’s wider business strategy as the company works to strengthen its different operating segments and move towards sustainable growth. Read more corporate developments from companies across India in our Corporate News section.

The company’s traditional food delivery business also continued to perform well. Food delivery GOV increased 17.4% year-on-year to ₹9,490 crore during the quarter. Adjusted EBITDA from the segment stood at ₹292 crore, an improvement of ₹100 crore from the year-ago period.

Swiggy said its food delivery economics continued to strengthen as it worked on affordability and consumer-focused offerings. The company is also looking to expand adoption and reach what Majety described as the next 100 million users in the category.

Segment revenue data also underline the broad-based nature of the growth. Food delivery revenue rose 22.67% year-on-year to ₹2,208 crore, while quick-commerce revenue jumped 52.85% to ₹1,232 crore. Supply Chain and Distribution revenue increased 41.43% to ₹3,195 crore. Revenue from Out-of-Home Consumption rose 63.64% to ₹126 crore.

The Out-of-Home business, which includes dining and related experiences, also remained profitable. Its GOV grew 44.8% year-on-year, while its adjusted EBITDA margin improved to 0.9% of GOV.

Another initiative, Toing, Swiggy’s budget-focused food delivery offering, expanded to 50 cities. The company said around two-thirds of new users coming through the platform were first-time customers in the category, suggesting that affordability-focused offerings could help Swiggy reach a wider consumer base.

Despite the improved earnings, investors have not completely bought into the story yet. Swiggy shares initially responded positively to the results, closing about 3% higher at ₹293.80 on July 30. However, the stock came under pressure in Friday’s trading session, falling more than 3% during the day.

Swiggy’s Q1 FY27 results therefore offer a mixed but encouraging picture. Food delivery continues to generate healthy economics, Instamart is showing signs of maturing, and overall losses are narrowing. The challenge now is to turn these improvements into consistent profitability without sacrificing growth in India’s fiercely competitive food delivery and quick-commerce markets.

For investors, the coming quarters will be important. The focus is likely to remain on Instamart’s path towards EBITDA profitability, food delivery margins, customer growth and whether Swiggy can maintain strong revenue growth while keeping costs under control. For now, the latest results suggest the company is moving in the right direction, but the journey to sustained profits is not over yet.

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Corporate

Kia Sorento India launch confirmed with new teaser

Kia has finally given its upcoming flagship SUV for India a strong identity. The South Korean carmaker has released a cryptic teaser that confirms the arrival of the Kia Sorento, its premium three-row SUV, in the Indian market.

Instead of revealing the SUV directly, Kia used a picture of Sorrento, the scenic coastal town in Italy. The location-based wordplay was enough to spark speculation, with Kia asking social media users to identify the place using Google Lens or an artificial intelligence assistant. The teaser effectively points towards the Sorento nameplate without revealing the vehicle itself.

The latest teaser comes shortly after Kia India indicated plans to introduce new hybrid and battery-electric vehicles in the country. It also follows the launch of the Kia Syros EV, highlighting the company’s growing focus on electrified vehicles in India.

The Sorento is expected to become Kia’s premium three-row SUV in India, sitting above the Seltos and Carens. It will give the company a larger presence in the premium SUV segment and cater to buyers looking for more space, technology and comfort.

The upcoming Kia Sorento India has already been spotted testing on Indian roads several times over the past few months. The repeated sightings have provided clues about the model that Kia is preparing for the market. Some dealerships have also reportedly started accepting unofficial bookings, although Kia has not officially opened bookings for the SUV. Reported token amounts range between Rs 20,000 and Rs 50,000, depending on the dealership.

Kia has not announced an official launch date yet. However, current reports suggest that the Sorento could arrive around late August or early September, potentially ahead of the important Dussehra-Diwali festive period. The SUV is expected to come to India through the completely knocked-down (CKD) route, with its estimated price positioned around Rs 45 lakh ex-showroom. These details, however, remain unconfirmed by Kia.

The Sorento measures 4,815 mm in length, 1,900 mm in width and 1,700 mm in height, while its wheelbase measures 2,815 mm. These dimensions give it a substantial road presence and enough space for a three-row cabin.

One of the biggest talking points around the Kia Sorento SUV will be its hybrid technology. Kia is expected to introduce a strong-hybrid powertrain for India, which would be a significant move for the brand. Reports indicate that the India-spec SUV could use a 1.6-litre turbo-petrol engine paired with an electric motor.

An all-wheel-drive system could also be offered. Kia may additionally consider a conventional petrol version, although the company has not confirmed the final engine lineup. A diesel engine is currently not expected to be part of the India-spec Sorento range.

Globally, the Sorento is offered with several powertrain options, including petrol, turbo-petrol, hybrid and plug-in hybrid configurations. For India, however, the hybrid version is expected to be the key attraction as Kia looks to combine the practicality of a large SUV with better fuel efficiency.

The design of the Sorento is also expected to play an important role in its appeal. The SUV features an upright front profile, T-shaped LED headlamps and Kia’s signature Tiger Nose grille. At the rear, a sharply raked windscreen and vertically positioned LED tail-lamps give it a distinctive appearance.

Inside, Kia is expected to maintain its reputation for offering a technology-rich cabin. The India-spec Sorento could feature dual 12.3-inch displays, a panoramic sunroof, ventilated front seats, multi-zone climate control, premium upholstery and powered front seats.

Other expected equipment includes a Bose audio system, a 360-degree camera and wireless Apple CarPlay and Android Auto connectivity. A Level 2 advanced driver assistance system (ADAS) could further strengthen the SUV’s technology and safety package. Kia, however, is yet to confirm the final India-specific feature list.

The arrival of the Kia Sorento in India will put it into a competitive premium SUV market. It is expected to take on established models such as the Toyota Fortuner and Skoda Kodiaq, while newer rivals including the Volkswagen Tayron could also be in its crosshairs. Other potential competitors include the Jeep Meridian, MG Majestor and Honda ZR-V.

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Corporate

Sensex gains 50 points, Nifty holds above 24,350

Equity markets opened higher on Friday, with the Sensex gaining more than 50 points and the Nifty 50 holding above the 24,350 mark. Gains in financial and automobile stocks, led by Bajaj Finance and Mahindra & Mahindra, helped offset selling in information technology shares.

The Sensex rose around 50 points in early trade to move near 77,950, while the Nifty gained over 50 points and traded above 24,350. The positive opening came amid renewed foreign institutional investor (FII) buying, supportive global cues and optimism around corporate earnings.

Bajaj Finance emerged as one of the biggest gainers, with its shares rising sharply after the company reported strong June-quarter results. The stock gained as much as 7% in early trade, providing a significant lift to the financial services segment. Bajaj Finserv also traded higher.

Mahindra & Mahindra was another prominent gainer, with the stock rising around 2.5% after reporting a 7% year-on-year increase in standalone net profit to Rs 3,685 crore for the June quarter. The strong earnings performance continued to attract buying interest in the auto major.

Other financial and automobile stocks also supported the market, helping investors absorb losses in the IT sector.

The Nifty IT index, meanwhile, fell more than 2% in early trading as investors booked profits after its strong recent rally. Major IT stocks including Infosys, Tata Consultancy Services (TCS), HCL Technologies and Tech Mahindra were among the losers.

The decline in IT stocks came despite the sector’s strong performance in July. The Nifty IT index has gained substantially during the month, prompting some investors to lock in profits. The fall therefore appeared more like a sector-specific correction rather than a broad deterioration in market sentiment.

Market breadth remained positive, with a larger number of stocks advancing than declining on the NSE. Financials and automobiles were among the sectors attracting buying interest, while IT remained the key drag on the indices.

Foreign investor activity also provided support to the Indian stock market. FIIs have returned to buying equities in recent sessions, helping improve sentiment after a period of sustained selling pressure. Domestic investors have also remained active, providing additional stability to the market.

The June-quarter earnings season remains a major focus for investors. Strong results from companies such as Bajaj Finance and M&M have encouraged stock-specific buying, although expensive valuations and profit booking remain concerns in sectors that have rallied sharply.

For the broader market, the immediate focus is on whether the Nifty can sustain its position above 24,350 and move towards the 24,500 level. Analysts have identified the 24,000-24,100 zone as an important support area, while 24,500-24,600 remains a key resistance zone.

Investors are also tracking movements in crude oil prices, the rupee, global markets and geopolitical developments. Any sharp rise in crude prices could affect inflation expectations and corporate margins, while a stable currency and easing global concerns could support further buying.

For now, the Sensex and Nifty appear to be drawing strength from a combination of earnings, selective sector rotation and renewed foreign buying.

Bajaj Finance, M&M and other financial and auto stocks are leading the gainers, while Infosys, TCS, HCL Technologies and other IT names are facing selling pressure. The direction of the Sensex and Nifty through the session will depend largely on whether buying in financials and other heavyweight stocks can continue to absorb the IT-led losses.

The IT correction has created some volatility, but strong financial and auto stocks are preventing it from turning into a broader market sell-off.

 

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Corporate

Patanjali gets IRDAI nod to enter general insurance

Patanjali Ayurved is preparing to sell more than toothpaste, packaged foods and Ayurvedic products. The company founded by yoga guru Baba Ramdev has received regulatory approval to enter India’s general insurance business through the acquisition of Magma General Insurance.

The Insurance Regulatory and Development Authority of India (IRDAI) has approved the proposed acquisition by Patanjali Ayurved and the Dharampal Satyapal (DS) Group. The transaction, valued at nearly ₹4,500 crore, will give Patanjali a 73.56% stake in Magma General Insurance, while the DS Group will hold 24.5%. Together, the two buyers will control about 98% of the insurer.

The approval, issued through a letter dated July 28, is valid for three months. The buyer group will have to complete the share transfer within that period and meet the conditions attached to the regulatory clearance.

For Patanjali, the deal represents a significant shift in strategy. The company has built its name around Ayurveda, healthcare products, personal care, packaged foods and other fast-moving consumer goods. Insurance will now become its first major business in financial services.

Rather than applying for a fresh insurance licence and building a company from scratch, Patanjali is entering the market by acquiring an existing general insurer. Magma already has an operating business and offers products across areas such as motor, health, property and commercial insurance.

That gives Patanjali something it would have taken years to build on its own: an established insurance platform, an existing customer base and a functioning distribution network.

Magma General Insurance reported gross written premiums of ₹3,615.48 crore in financial year 2025-26, compared with ₹3,334.4 crore in the previous year. Its reported net worth stood at about ₹1,234 crore as of March 31, 2026, according to Crisil Ratings.

The insurer’s existing reach could be particularly important for Patanjali. Magma distributes insurance through agents, corporate partners, financial-services channels and automobile-related networks. Patanjali, meanwhile, has spent years developing a wide retail presence, including in smaller towns and rural and semi-urban markets.

The combination could therefore offer Patanjali a way to take insurance products deeper into markets where awareness and penetration remain relatively low. Industry observers expect the company to explore how its existing consumer network can complement Magma’s insurance distribution capabilities.

The acquisition also comes at a time when India’s insurance sector is attracting fresh capital and new strategic interest. Recent regulatory changes have opened the door to greater ownership flexibility, while insurers are looking to expand coverage in a market that remains underinsured compared with many developed economies.

Insurance is also a very different business from selling consumer products. A policy is a long-term promise, and the real test comes when a customer files a claim. The new owner will therefore have to balance Patanjali’s strong consumer recognition with the regulatory, actuarial and risk-management requirements of the insurance business.

The transaction itself has been in the works for more than a year. The proposed acquisition involved shares held by existing shareholders, including Sanoti Properties LLP, linked to the Adar Poonawalla Group, along with Celica Developers and Jaguar Advisory Services.

Magma General Insurance was originally established in 2009 as a joint venture involving Magma Fincorp, Celica Developers, Jaguar Advisory Services and Germany’s HDI Global SE. The Poonawalla group later acquired Magma Fincorp in 2021, making it the promoter of the insurance company.

The IRDAI clearance now brings the transaction closer to completion. Once the share transfer is completed, Patanjali will become the majority owner of Magma General Insurance, marking its formal entry into the financial services sector.

The insurance venture, however, will be judged on a different measure. For Patanjali, the challenge is no longer simply reaching consumers. It is earning their trust when they need financial protection the most.

Patanjali’s move is notable because it brings a large consumer-facing Indian brand into general insurance at a time when the sector is becoming increasingly competitive.

For customers, however, the bigger question will be what changes after the ownership transition. The company will need to build confidence around pricing, policy terms, claims settlement and customer service—areas that matter far more to insurance buyers than the strength of a brand name.

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Corporate

Sensex rises 270 points, Nifty closes above 24,300

Indian equity markets ended higher on Thursday, with the Sensex gaining 273.55 points and the Nifty 50 closing above the 24,300 mark. The gains came despite a cautious trading session, as investors weighed the US Federal Reserve’s decision to keep interest rates unchanged against signals that borrowing costs could remain elevated for longer.

The 30-share BSE Sensex closed at 77,928.15, rising 273.55 points, or 0.35 per cent. The NSE Nifty 50 gained 66.95 points, or 0.28 per cent, to settle at 24,317.15. The Nifty extended its gains for a second straight session, although the overall market mood remained mixed.

The market’s performance was shaped by a combination of domestic earnings, sector-specific buying and global cues. The US Federal Reserve kept its benchmark interest rates unchanged, but three policymakers dissented in favour of a rate hike. That raised concerns that US interest rates could stay higher for longer, limiting the scope for a stronger rally in global equities.

On Dalal Street, auto stocks were among the strongest performers. The Nifty Auto index gained 1.6 per cent, supported by encouraging quarterly results. Mahindra & Mahindra rose around 2 per cent, while Balkrishna Industries surged 10.8 per cent after reporting a strong June-quarter performance. Balkrishna Industries posted a 50 per cent year-on-year increase in consolidated net profit to Rs 432 crore.

Mahindra & Mahindra was also among the top Nifty gainers after reporting a 7 per cent rise in first-quarter profit to Rs 3,685 crore. Revenue increased 23 per cent year-on-year, providing further support to the auto segment. Maruti Suzuki also gained around 2 per cent during the session, adding to the sector’s strength.

Coal India was another key performer, rising around 2 per cent and featuring among the leading gainers on the Nifty. Maruti Suzuki and other auto counters also attracted buying interest as investors continued to track the June-quarter earnings season.

The broader market, however, did not match the strength seen in the headline indices. The Nifty Midcap 100 fell 0.31 per cent, ending a three-session winning streak, while the Nifty Smallcap 100 declined 0.56 per cent. KPIT Technologies was among the sharper midcap losers, falling 7.46 per cent after weak first-quarter results.

Banking stocks remained under pressure. The Nifty Bank index slipped around 0.1 per cent, with Federal Bank and Yes Bank among the notable losers. The weakness in financial stocks limited the broader market’s upside even as select large-cap shares remained firm.

Dabur India also came under selling pressure and fell around 1.8 per cent. Brokerages pointed to subdued underlying growth and a lack of near-term earnings catalysts. Realty was the weakest major sectoral index, while financial services, banking, private banks, cement and chemicals also remained under pressure.

The IT sector offered some support to the market. The Nifty IT index gained around 0.2 per cent on Thursday and has risen about 18.6 per cent in July, putting it on track for its strongest monthly performance in six years. The sector has benefited from expectations that Indian technology companies could remain relatively better placed amid concerns surrounding an artificial-intelligence-led sell-off in global technology stocks.

Sun Pharmaceutical Industries was another stock in focus after hitting a record high following approval from Brazil’s health regulator for its semaglutide injection. The development added to positive sentiment around the pharmaceutical major.

Among other corporate developments, Vedanta reported a sharp 72 per cent year-on-year increase in June-quarter profit to Rs 5,473 crore, while revenue rose 54 per cent to Rs 24,205 crore. Vedanta Aluminium reported a 216 per cent rise in profit to Rs 5,629 crore, with revenue increasing 46 per cent.

Bajaj Finance also reported strong quarterly numbers, with net interest income rising 23 per cent year-on-year to Rs 12,571 crore and profit increasing 28 per cent to Rs 6,081 crore. These earnings helped keep investors focused on company-specific developments despite uncertainty in global markets.

Oil prices remained another concern for investors. Brent crude rose about 0.3 per cent to around $91 a barrel after a sharp jump in the previous session amid renewed tensions in West Asia. Higher crude prices remain a potential pressure point for India because the country relies heavily on imports to meet its energy needs.

The rupee ended almost unchanged at Rs 95.6775 against the US dollar, compared with Rs 95.6475 in the previous session. The currency’s stability offered some comfort even as investors continued to monitor global interest rates, crude prices and geopolitical developments.

Overall, Thursday’s session reflected a market that was willing to move higher but remained selective. Strong auto earnings, buying in IT and gains in heavyweight stocks helped the Sensex and Nifty finish in positive territory. At the same time, weakness in banks, realty and broader-market stocks showed that investors remained cautious.

With the June-quarter earnings season continuing, domestic results are likely to remain a major driver for individual stocks. At the same time, the Federal Reserve’s rate outlook, crude oil prices, the rupee and developments in West Asia will continue to influence market sentiment in the coming sessions.

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Corporate

Indo-MIM makes strong debut, shares surge 45%

Indo-MIM shares made a strong debut on the stock exchanges on Thursday, July 30, rising nearly 45% above the company’s initial public offering (IPO) price. The precision engineering components maker listed at Rs 703 per share on the BSE, a 44.94% premium over its issue price of Rs 485. On the National Stock Exchange (NSE), Indo-MIM shares opened at Rs 700, representing a 44.32% gain.

The listing came as a pleasant surprise for investors who had been closely tracking the Indo-MIM IPO ahead of its market debut. While the grey market had already pointed to a strong listing, the actual performance was even better. Before listing, the company’s shares were reportedly commanding a grey market premium of around Rs 187, implying a potential listing price of about Rs 672 and a gain of nearly 39% over the IPO price. The stock, however, opened considerably higher at Rs 700-703.

The buying interest did not stop at the opening price. On the BSE, Indo-MIM shares climbed as high as Rs 725.15 during early trading, marking a gain of 49.51% from the issue price. The sharp movement reflected the strong demand that had already been visible during the IPO subscription period.

Indo-MIM’s Rs 3,811-crore IPO was open for subscription from July 23 to July 27. The issue was priced in the range of Rs 461 to Rs 485 per share, with investors bidding aggressively throughout the offer period. By the final day, the IPO was subscribed 72.34 times, with bids received for around 39.85 crore shares against approximately 5.50 crore shares on offer.

Institutional investors were particularly enthusiastic about the issue. The qualified institutional buyer (QIB) portion was subscribed 204.34 times, while the non-institutional investor (NII) category received bids for 50.63 times the shares reserved for it. The retail investor portion was subscribed 6.67 times, while the employee portion also saw 6.67 times subscription. The broad-based demand gave the Indo-MIM IPO considerable momentum before its listing.

The public issue consisted of a fresh issue of shares worth around Rs 500 crore and an offer for sale (OFS) of about 6.83 crore shares by existing shareholders. According to the company’s IPO plans, around Rs 400 crore from the fresh issue proceeds will be used to repay or prepay certain outstanding borrowings. The remaining funds will be used for general corporate purposes.

The strong stock market debut has also brought attention back to Indo-MIM’s business model and its position in the precision manufacturing industry. Headquartered in Bengaluru and incorporated in 1996, the company manufactures precision engineering components using Metal Injection Molding, or MIM, technology. It provides end-to-end manufacturing solutions and serves a range of industries, including automotive, aerospace, defence, medical and consumer sectors.

Indo-MIM’s diversified customer base and its presence across several industrial applications were among the factors that helped build investor interest in the IPO. The company is also described as the world’s largest Metal Injection Molding company by installed capacity, giving it a significant position in a specialised manufacturing segment.

However, the spectacular Indo-MIM share price debut also brings a note of caution for investors. After a nearly 45% listing gain, the stock is trading at a valuation considerably higher than the IPO price. Analysts have pointed out that the sharp rise could lead to profit booking in the near term, particularly among investors who received shares through the IPO allotment.

Market observers have suggested that investors with a long-term view could continue to track the company’s business performance and growth prospects, while those sitting on sizeable listing gains may consider booking part of their profits. One analyst cited by Business Standard noted that the stock was trading well above its pre-issue valuation and could see near-term volatility after the sharp listing pop.

For investors, the Indo-MIM IPO listing is therefore a story of strong demand meeting an equally strong market debut. The company’s shares not only delivered substantial gains to IPO allottees but also outperformed expectations based on the grey market premium. The focus will now shift from the listing-day excitement to whether Indo-MIM can justify its higher market valuation through sustained earnings growth, expanding business opportunities and continued demand for its precision engineering solutions.

With the company entering the listed market at a valuation of around Rs 35,133 crore at the time reported during early trading, Indo-MIM has made an impressive transition from an unlisted precision manufacturing business to a closely watched stock market name.

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Corporate

Cognizant revenue rises 4.5% as spending caution persists

Cognizant Technology Solutions has reported a steady second quarter for 2026, with revenue growing 4.5% year-on-year to $5.48 billion as demand for technology services remained resilient despite continued caution among corporate clients.

The US-based IT services company, which has a large workforce in India, said revenue increased from $5.25 billion in the same quarter last year. On a constant-currency basis, revenue growth stood at 4.1%. However, the pace was slower than the 7.2% constant-currency growth recorded in the year-ago quarter, reflecting a more measured technology spending environment.

Cognizant’s second-quarter performance highlights a mixed picture for the global IT services industry. Companies continue to invest heavily in artificial intelligence, cloud, data modernisation and digital transformation, but many remain reluctant to increase spending on discretionary technology projects. This has made the recovery in broader IT demand less uniform.

The company’s net income declined marginally to $636 million from $645 million a year earlier. Despite the small fall in profit, profitability improved at the operating level. GAAP operating margin increased to 15.9% from 15.6%, while adjusted operating margin rose 40 basis points to 16%. Adjusted earnings per share increased 4.6% year-on-year to $1.37, while GAAP EPS rose 3.8% to $1.36.

One of the strongest parts of the business was Financial Services. Revenue from the segment increased 12% year-on-year, marking another quarter of double-digit growth. Financial services has emerged as an important area of technology spending because banks, insurers and other financial institutions are moving more aggressively on artificial intelligence, automation, data platforms and modernisation projects.

The performance also shows where the broader AI opportunity is currently taking shape. Rather than simply experimenting with generative AI, large companies are increasingly looking for ways to deploy AI across existing business systems and generate measurable returns. Cognizant is positioning itself as an “AI builder”, combining artificial intelligence with engineering, infrastructure, data modernisation and industry expertise.

Chief Executive Officer Ravi Kumar said the company was helping clients bridge what it calls the “AI velocity gap” between investment in AI and the ability to turn those investments into business outcomes. He said Cognizant was expanding its Frontier workforce and reskilling employees as clients move from AI experimentation towards larger-scale implementation.

However, the latest results also suggest that the initial excitement around AI-led deal activity has not translated into an across-the-board acceleration in IT spending. Cognizant’s second-quarter bookings declined 6% year-on-year, although trailing 12-month bookings rose 5% to $29.1 billion. The company reported a book-to-bill ratio of about 1.3 times and signed seven large deals with total contract values of at least $100 million.

This distinction is important. Large, strategic AI and transformation programmes continue to attract spending, while smaller discretionary projects remain under pressure. Cognizant’s management has indicated that financial services is currently an exception to the broader weakness in discretionary spending. The company has therefore maintained growth, but has become more conservative about how quickly technology budgets will recover across the wider economy.

Reflecting that caution, Cognizant narrowed its 2026 revenue growth guidance. It now expects constant-currency revenue growth of 4% to 5.5%, compared with its earlier range of 4% to 6.5%. The company expects full-year revenue of $22.04 billion to $22.35 billion. Its adjusted operating margin outlook remains unchanged at 16% to 16.2%.

At the same time, Cognizant raised its adjusted diluted EPS guidance to $5.70-$5.82 for 2026, representing growth of 8% to 10%. The improved earnings outlook reflects stronger margins and continued focus on operational efficiency.

The company is also reshaping its operations around its AI strategy. During the first half of 2026, Cognizant spent $1.6 billion on share repurchases and $1.3 billion on acquisitions. In the second quarter, it completed the $634 million acquisition of Astreya, including contingent consideration, strengthening its technology infrastructure capabilities.

Cognizant ended the quarter with 356,700 employees, 900 fewer than at the end of March but 12,900 more than a year earlier. The company is simultaneously focusing on reskilling and operational restructuring as artificial intelligence changes the economics of technology services.

For the third quarter, Cognizant expects revenue between $5.60 billion and $5.68 billion, translating into constant-currency growth of 3.8% to 5.3%. The guidance reflects the company’s cautious view of near-term demand while leaving room for stronger spending if enterprise technology budgets improve.

The second-quarter results therefore present a balanced picture of the IT services sector. AI remains a major source of opportunity, particularly in areas where companies are ready to move from pilots to production. But the broader recovery in discretionary technology spending is still uneven.

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KPIT technologies profit drops 32% as margins face pressure

KPIT Technologies has had a challenging start to the new financial year, with pressure from its global automotive clients weighing on profits and margins. The automotive software and engineering services company reported a consolidated net profit of around Rs 117 crore for the first quarter of FY27, marking a 32% decline from Rs 172 crore in the same quarter last year.

The performance was also weaker compared with the previous quarter. Net profit fell about 28% from Rs 163 crore reported in the March quarter. The decline has raised concerns among investors, particularly because KPIT’s business is closely linked to spending by global automobile manufacturers.

The company’s revenue, however, continued to grow on a yearly basis. Revenue from operations stood at around Rs 1,675 crore during the June quarter, compared with Rs 1,539 crore a year earlier. This represents growth of nearly 9%. On a sequential basis, however, revenue declined around 2%.

The difference between revenue growth and profit growth highlights the main challenge facing KPIT at present. The company is generating higher revenue than it did a year ago, but that growth is not translating into profits at the same pace. Higher costs, lower utilisation and changes in the revenue mix have put pressure on the company’s bottom line.

EBITDA, an important measure of operating profitability, came in at around Rs 288 crore during the quarter. The EBITDA margin dropped to 17.2%, compared with 21% in the year-ago period. The contraction in margins was one of the key concerns for investors following the results.

KPIT had already warned that the first half of FY27 could be difficult. Some of its major European automotive customers have been dealing with weaker market conditions and have been more cautious about technology spending. As a result, certain projects have been delayed or spending decisions have been pushed back.

This is particularly important for KPIT because the company works closely with global automakers on technology-intensive areas such as connected cars, autonomous driving, vehicle engineering, digital cockpits, electric mobility and automotive cybersecurity.

Despite the difficult quarter, the company continues to see opportunities in these areas. KPIT said its new business wins remained strong, with total contract value of about $257 million secured during the first quarter. The new engagements cover several technology areas, including connected vehicles, autonomous systems, digital cockpit solutions, powertrain, vehicle engineering, cybersecurity and aftersales.

KPIT’s business is also becoming more diversified. The company said its US operations performed reasonably well during the quarter, while its vehicle engineering and design and aftersales businesses also delivered a relatively healthy performance. Its products and solutions business continued to show traction as well.

Artificial intelligence is another area where KPIT sees significant potential. The company is investing in AI-based automotive solutions while also using AI internally to improve productivity. The idea is simple: if technology can help employees complete certain tasks faster and more efficiently, the company can improve margins even when revenue growth remains under pressure.

KPIT management expects this productivity benefit to become more visible over the coming quarters. The company is also looking for a gradual improvement in margins as business conditions stabilise and revenue growth picks up.

CEO and Managing Director Kishor Patil said the company’s first-quarter performance was slightly better than the outlook it had provided earlier. At the same time, he acknowledged that some of the company’s larger customers continue to face pressure.

For KPIT, diversification has become an important cushion during this period. The company has exposure across different customers, geographies, automotive segments and technology offerings. This reduces its dependence on any single market or programme and could help it navigate the current slowdown.

The company’s financial position also remains relatively comfortable. KPIT ended the quarter with net cash of around Rs 900 crore. Its days sales outstanding stood at 51 days, indicating that collections remained under control.

The company has also announced a final dividend of Rs 5.25 per share for FY26. The record date for determining eligible shareholders has been fixed as August 12, 2026.

Investors, meanwhile, have reacted cautiously to the latest numbers. KPIT shares came under pressure after the results, falling nearly 7% on July 30 to around Rs 592 on the BSE. The sharp movement reflects concerns over the fall in profit and the contraction in EBITDA margin.

The stock has already faced considerable pressure over the past year, making the company’s recovery prospects particularly important for investors. The market will now be watching whether the expected improvement in the second half of FY27 actually translates into stronger revenue and profitability.

For now, the company is navigating a difficult phase rather than facing a fundamental change in its business story. The Q1 numbers show clear near-term pressure, but the strong deal pipeline and continued investment in new automotive technologies offer reasons for cautious optimism. The key question for investors will be how quickly those opportunities translate into actual growth and whether KPIT can restore its margins as FY27 progresses.

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Corporate

Adani Ports profit rises 10% on overseas growth

Adani Ports and Special Economic Zone (APSEZ) has started the financial year on a strong note, with its overseas operations emerging as a major driver of growth in the June quarter. The company reported a 10% year-on-year rise in consolidated net profit for the first quarter of FY27, while revenue and EBITDA increased by 19% each.

APSEZ reported a consolidated net profit of ₹3,650 crore for the quarter ended June 30, 2026, compared with ₹3,311 crore in the same period last year. Revenue rose to ₹10,821 crore from ₹9,126 crore, while EBITDA, or earnings before interest, taxes, depreciation and amortisation, increased to ₹6,541 crore from ₹5,495 crore.

The numbers show that APSEZ is increasingly benefiting from its transformation from a largely India-focused port operator into an integrated transport and logistics company with a growing international presence.

The strongest growth came from its international ports business. Revenue from international ports jumped 80% year-on-year to ₹1,747 crore, while EBITDA more than tripled to ₹730 crore, marking a 256% increase. The performance was led by the company’s operations in Australia and Colombo.

Australia played an important role in the increase after NQXT Australia was consolidated into APSEZ from the fourth quarter of FY26. International port volumes rose sharply to 22.8 million tonnes in the June quarter from 7.7 million tonnes a year earlier. Australia contributed 10 million tonnes, Colombo 6.9 million tonnes, Tanzania 3.7 million tonnes and Israel 2.2 million tonnes.

The stronger contribution from international operations also improved profitability. The EBITDA margin for international ports increased to 41.8% from 21.1% a year earlier. Colombo, in particular, recorded a sharp improvement, with revenue rising five times year-on-year as the terminal continued to scale up.

The domestic ports business, however, remains the backbone of APSEZ’s earnings. Revenue from domestic ports rose 12% to ₹6,964 crore, while EBITDA increased 11% to ₹5,152 crore. Cargo volumes handled by domestic ports increased to 115.3 million tonnes from 112.9 million tonnes in the corresponding quarter last year.

The company attributed the domestic performance to higher cargo volumes, a better product mix and improved realisations. Its domestic ports EBITDA margin stood at 74%, highlighting the strong profitability of the core business. APSEZ’s all-India cargo market share was 27.6%, while its container cargo market share stood at 44.8%.

APSEZ is also expanding its capacity to prepare for future cargo growth. Its domestic port capacity stood at 653 million tonnes as of June 30, and the company plans to increase this to 1,000 million tonnes by December 2030. The expansion is expected to support its longer-term growth strategy and strengthen its position in India’s ports and logistics sector.

Another part of the business that performed well was marine services. Revenue from the marine segment increased 67% year-on-year to ₹901 crore, while EBITDA rose 36% to ₹404 crore. The improvement was supported by the addition of vessels, with the fleet increasing to 135 vessels from 118 a year earlier.

APSEZ is also trying to build a wider international marine business. Recent initiatives include a partnership with Oceaneering International for deepwater engineering and offshore capabilities in Europe and a 10-year marine services contract connected with Argentina’s first LNG exports to India.

The logistics business was comparatively steady during the quarter. Revenue was broadly unchanged at ₹1,173 crore, while EBITDA increased 3% to ₹219 crore. The company said rail volumes were affected by the continuing Middle East crisis, although its asset-light trucking business continued to grow. Trucking revenue increased 26% year-on-year, while International Freight Network revenue rose 28% sequentially.

The strong quarterly performance comes as APSEZ continues to diversify beyond traditional port operations. The company now combines port handling with rail transport, logistics parks, warehousing, trucking and marine services. Its integrated model is designed to provide customers with a broader “shore-to-door” logistics network.

APSEZ also maintained its FY27 guidance. The company is targeting revenue of ₹43,000-45,000 crore and EBITDA of ₹25,000-26,000 crore for the full financial year. Its net debt-to-EBITDA ratio stood at 1.9 times at the end of June, below its stated ceiling of 2.5 times.

The company’s balance sheet also received a boost from ratings agencies. S&P Global Ratings upgraded APSEZ’s long-term issuer credit rating to BBB from BBB-, with a stable outlook. CARE Ratings and ICRA also reaffirmed the company’s domestic AAA ratings.

Despite the healthy earnings, APSEZ shares came under pressure after the results. The stock fell around 3% on the BSE following the announcement, even as analysts pointed to the company’s strong operating performance and international expansion.

For APSEZ, the June quarter offers an encouraging start to FY27. Domestic ports continue to provide a stable earnings base, while international ports, marine services and logistics are gradually becoming meaningful sources of growth. Adani Ports challenge now will be to maintain that momentum while managing its expansion, debt and exposure to global trade disruptions.

With overseas assets gaining scale and domestic capacity continuing to expand, APSEZ is positioning itself as more than a port operator. Its latest results suggest that the company’s broader integrated transport and logistics strategy is beginning to translate into stronger and more diversified earnings.

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Corporate

Sensex seesaws, Nifty remains below 24,250

Indian equity markets turned volatile on Thursday, July 30, as the Sensex moved between gains and losses while the Nifty struggled to hold above the 24,250 mark. Investors remained cautious after the US Federal Reserve kept interest rates unchanged but signalled uncertainty over the future path of monetary policy. At the same time, mixed global cues, elevated crude oil prices and ongoing geopolitical tensions kept sentiment in check.

The 30-share BSE Sensex opened lower and fell more than 100 points during morning trade before recovering some ground. The Nifty50 also slipped below 24,250 after opening in the red. The market’s movement reflected a tug-of-war between buying in information technology stocks and selling across financial and realty shares.

 

The IT sector emerged as the biggest source of support for the market. The Nifty IT index gained nearly 2%, with investors showing renewed interest in technology stocks. Auto, oil and gas, media and cement stocks also traded higher. On the other hand, the Nifty Realty index fell more than 1.5%, making it the weakest sectoral performer. Financial services, private banks, chemicals and mid-cap stocks also remained under pressure.

Among the major gainers, Infosys and Tech Mahindra were among the prominent names supporting the technology rally. The broader IT pack benefited from buying interest as investors looked beyond weakness in global semiconductor stocks. The sector has also been one of the stronger performers during July, with the Nifty IT index heading for its best monthly performance in several years.

However, the gains were not broad-based. Adani Ports fell around 3% despite reporting a strong first-quarter performance. The company posted a 9% year-on-year rise in consolidated net profit to ₹3,620 crore, while revenue increased 18.5% to ₹10,821 crore. EBITDA rose 19% to ₹6,540 crore, with the EBITDA margin improving to 60.4%. Despite the numbers, investors chose to book profits in the stock.

Eternal was another major laggard at the opening, falling around 2%. Vedanta Oil & Gas also declined nearly 4% despite returning to profitability in the June quarter. The company reported a consolidated net profit of ₹945 crore compared with losses in the year-ago and previous quarters. Revenue increased 8.5% year-on-year to ₹2,507 crore, but an exceptional loss of ₹441 crore weighed on investor sentiment.

Waaree Energies also came under selling pressure. Its shares dropped nearly 6% even though the company reported a 15.4% year-on-year increase in consolidated net profit to ₹891.87 crore. Revenue jumped 79.2% to ₹7,931.79 crore, helped by higher production and strong demand. The fall suggested that investors were more focused on valuations and expectations than simply on headline earnings growth.

KPIT Technologies was another notable loser, falling around 7% after its quarterly profit declined 32% to ₹117 crore. The sharp reaction highlighted how investors are closely scrutinising corporate earnings as the June-quarter results season gathers pace.

On the positive side, Redington attracted strong buying after reporting a 77% year-on-year jump in first-quarter profit and a 35% rise in revenue. Its shares gained as much as 15% in morning trade, making it one of the standout movers in the broader market.

The market was also watching several new listings. Indo-MIM made its debut on the BSE and NSE at a substantial premium of around 45% to its issue price, signalling strong investor appetite for select new-age and manufacturing opportunities. Lohia Corp and Xtranet Technologies also listed at premiums of around 8% and 7%, respectively.

Global developments continued to influence trading. The US Federal Reserve kept interest rates unchanged at its latest meeting, but the decision was marked by an unusually divided policy outlook. Some policymakers indicated that further rate hikes could be required if inflation remains persistent. This hawkish tone has created uncertainty for global equity markets because higher US interest rates can reduce the attractiveness of emerging-market assets.

Crude oil remained another important factor for Indian investors. Oil prices had surged sharply on Wednesday amid escalating US-Iran tensions before easing on Thursday. Lower crude prices provided some relief, but continued geopolitical uncertainty remained a concern for an oil-importing economy such as India. Higher crude prices can increase inflationary pressure and widen the country’s import bill.

Market analysts said the near-term trend remained volatile rather than decisively bearish. Geojit Investments chief market strategist Anand James identified the 24,190-24,145 zone as an important support area for the Nifty. A break below 24,085, he said, could accelerate selling pressure. Geojit chief investment strategist VK Vijayakumar also pointed to Brent crude and the Fed’s hawkish stance as near-term headwinds, while noting that domestic fundamentals and renewed foreign portfolio investor buying could provide support.

The Sensex and Nifty are likely to remain sensitive to corporate earnings, crude oil prices, foreign fund flows, the rupee and developments around US monetary policy. For now, the market’s inability to decisively hold above 24,250 suggests that investors are approaching the next leg of the rally with greater caution.