Welcome to the 10th edition of The Chatter — a newsletter where we dig through what India’s biggest companies are saying and bring you the most interesting bits of insight, whether about the business, its sector, or the wider economy. We read every major Indian earnings call and listen to the interviews so you don’t have to.
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In this edition, we have covered 19 companies across 11 industries:
Auto & Auto Ancillaries
- Minda Corporation
- Ola Electric Mobility
Engineering & Capital Goods
- Cummins India
- Suzlon Energy
FMCG & Consumer Goods
- Flair Writing Industries
- Linc Pen & Plastics
- United Spirits
- EID Parry
Textiles & Apparel
- Monte Carlo Fashions
- Campus Activewear
Financial Services
- Life Insurance Corporation of India (LIC)
- General Insurance Corporation of India (GIC Re)
Software
- Cyient
Healthcare & Pharmaceuticals
- MedPlus Health Services
Logistics
- TVS Supply Chain Solutions
Hospitality, Travel & Tourism
- TBO Tek
- IRCTC
Metals & Minerals
- 20 Microns
Building Materials
- Heidelberg Cement
Auto & Auto Ancillaries
Minda Corporation Limited | Small Cap | Auto Ancillaries
Minda Corporation Ltd is an Indian automotive component manufacturer. It specialises in safety and security systems, mechatronics, wiring harnesses, interior plastics, and advanced technologies for various vehicle segments.
[Concall]
EV revenue transition gaining momentum with 25% of ₹8,000 crore order book from EV platforms, while Flash Electronics demonstrates the pathway with 23% EV revenue mix growing at 92% YoY.
“EV order books are about 25% of this ₹8,000 crores lifetime order book. In the EV area particularly the orders are from two wheelers and three wheelers as that penetration is higher. Flash Electronics is having now out of their revenue of ₹1,500 crores they have 23% revenue coming from EV products and EV platforms which is a 92% growth year on year. Minda Corporation has also won few EV products such as the chargers and infrastructure related products from the four wheel manufacturers.”
– Akash Minda, Executive Director
Dominant positioning in high-voltage EV wiring harness with all top manufacturers across two-wheeler and three-wheeler segments, now expanding to passenger vehicles.
“I can’t give you a number per se but let me say that we are supplying high voltage wiring harness to the top three EV two-wheeler manufacturers, we are already supplying them. In terms of the three-wheelers also the largest or the largest all three manufacturers of the EV three-wheelers we are supplying our high voltage kits to them. We’re also now engaged with the passenger vehicles OEMs in India and overseas for our high voltage systems, wiring harness as well as connection systems.”
– Akash Minda, Executive Director
Strong promoter confidence demonstrated through ₹420 crore warrant exercise at ₹550 per share, specifically targeting debt reduction from 2.5x to 2.2x over 2-3 years.
“We were required to hold the postal ballot the voting of which completed by end April. We are expecting the stock exchanges approval within this week and the 35% of the money should be received max within two weeks and thereafter as per the terms the balance 75% can be paid by the promoter within 18 months. Our objective has always been that we want to be in clear financial prudence matrices and we would like to significantly reduce debt and this is why the warrants from the promoters have also been issued. The interest is how we can bring down net debt to equity from 2.5 times to about 2.2 times in the next two to three years.”
– Vinod, Group CFO
Ola Electric Mobility | Small Cap | Auto Ancialliary
Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and core components for electric vehicles. These components include battery packs, motors, and vehicle frames, all produced at the Ola Futurefactory.
FY26 auto segment capex (including R&D;) projected at a significantly lower Rs.150-200 Cr, compared to ~Rs.400 Cr in FY25, aiding cash flow.
“Now for this financial year, we don’t expect any material capex in the auto business since the factory as well as the network, distribution network is all built out now. As well as on R&D;, we are, we have the S1 Gen3 as well as the Roadster platforms all engineered.
So the capex will be more, you know, maybe between 150 to 200 crores only for the whole FY26, which includes both manufacturing as well as R&D; capex for the auto segment. So in that sense, the auto segment should see as volumes reach the 25,000 levels with the bike, as well as the network scale up, we should see profitability first and then strong operating cash flows in the auto segment.”
– Bhavish Aggarwal, Chairman and MD
A Rs.250 Cr one-time warranty provision in Q4 FY25 addresses legacy issues, with future warranty costs expected to be lower due to platform improvements.
“Now, to do away with that every quarter exceptional cost, we have taken a one-time warranty provision of 250 crores in Q4. That will provide for all the warranty needs for our existing Gen1 and Gen2 vehicles for their warranty lifetime remaining. So, we don’t expect to have any one-time exceptional costs added going ahead in the future quarters.
That said, there’s also another positive highlight on that, that our Gen2 warranty costs are roughly half of Gen1. And our Gen3 warranty costs and failure rates are roughly half of Gen2. So, we are seeing every subsequent iteration of our platform getting significantly better on quality and hence warranty”
– Bhavish Aggarwal, Chairman and MD
Vertical integration strategy yields almost 90% in-house engineering value addition in the Gen3 platform, driving margin and product differentiation.
“So, if you see the value addition on in-house engineering is now almost 90% in the Gen3 platform. That includes our own 4680 cell. Even if you see without that, it’s almost 65-66%.
So, very strong in-house value addition on engineering, as well as more and more in-house manufacturing of key differentiated proprietary components. And that leads to a very strong gross margin advantage to us, as well as a very strong product differentiation, product features advantage. So, our fundamentals on strategy remain strong. We are focused on the three core strategies. Like I said, firstly, vertical integration.”
– Bhavish Aggarwal, Chairman and MD
Ola’s 4680 cell platform is designed for both NMC and LFP chemistries, with LFP planned as a future “drop replacement,” offering cost and application flexibility.
NMC and LFP are two different ways of making Li-Ion batteries. Learn more about them in our battery primer.
“LFP is on our roadmap. What we are doing is the 4680 cell is going to be both NMC and LFP compatible. So, we are starting with the 4680 NMC, but soon enough, with the same manufacturing, we can actually do 4680 LFP also. So, from an engineering perspective, LFP will be a drop replacement of our 4680 NMC cell. So, in that sense, as and when we stabilize 4680 NMC, we will bring our own 4680 LFP into our own vehicles.”
– Bhavish Aggarwal, Chairman and MD
Management states that regulatory issues impacting Q4 (especially February sales and store launches) are now resolved, clearing an operational overhang.
“Our, you are correct, Q4 had a, had a bunch of these issues around regulatory things. Now, those are now behind us. The network expansion, we had to have trade certificates in some areas. We are now fully in touch with all agencies, all state RTOs to make sure we are either compliant or have already filed for the compliant, whatever we need. As well as there was one theme around our February sales numbers which had made many people confused. There also with all regulatory agencies, we have been properly in touch with as well as sharing all the data. So, from our side, we don’t see any major risk to the business on these regulatory aspects.”
– Bhavish Aggarwal, Chairman and MD
Engineering & Capital Goods
Cummins India | Mid Cap | Engineering and Capital Goods
Cummins India Limited is a manufacturer and seller of engines and related products. It is a part of the Cummins Group in India and operates in three main business units - Engine, Power Systems, and Distribution.
[Concall]
While Cummins has maintained pricing for their CPCB4+ [Central Pollution Control Board Stage IV Plus emission standards] gensets, competitive pressure is increasing:
“Pricing is still settling down in the market but it should, we have seen all competition products in the market. Now we are still seeing pricing settle down. We do think that it will take uh another quarter or two for the pricing to completely settle down. That being said, we have been largely able to hold on to our pricing in the market but I would say that competitive intensity has increased and pricing will settle down in another three quarters.”
– Shweta Arya, MD
A significant shift in the mining sector, with demand moving from government tenders (Coal India) toward private miners:
“We were anticipating mining orderboard to start building up. What we are seeing is a shift and we have been seeing this for the last few quarters more shift towards private miners and coal India tenders are getting shifted out. The tenders which were supposed to be released in these quarters have not been released.”
– Shweta Arya, MD
Compressor segment is approaching a cyclical downturn based on historical patterns:
“Compressor business is actually a cyclical business and from our understanding perspective we should see a dip coming in in the compressor segment which we have not cited yet but we anticipate based on the last few years of our analysis the compressor segment to get into the cyclical phase.”
– Shweta Arya, MD
Suzlon Energy | Mid Cap | Engineering and Capital Goods
Suzlon Energy is a player in the wind energy sector in India, known for its comprehensive wind power solutions that cater to the increasing demand for clean energy.
[Concall]
Provides detailed data on domestic manufacturing capacity across the wind power supply chain:
“OEM capacity today is 20 GW in India. Installed capacity to supply turbines. The gearbox capacity is 29 gigawatt in India among three major gearbox suppliers. When you’re talking about gearbox capacity it also includes S&S means within India S&S and then the blade capacity is 28 GW which includes 11 GW of third party blade manufacturers. The generator manufacturing capacity almost about 14.5 GW.”
– JP Chalasani, Group CEO
Specific tariff benchmarks showing wind remains cost-competitive compared to solar+storage:
“Pure wind is 3.6 to 3.7. In fact, even if you look at last three bids, which got broken up and awarded in the first 3 months in this financial year is average is about 3.76. That’s a tariff of wind. Solar is now let’s say around 2.5 to 2.6, domestic 2.56 plus the battery cost. So unless the battery cost is less than 1 rupees 25 paisa per kilowatt hour solar plus storage can never replace wind as simple as that.”
– JP Chalasani, Group CEO
Significant grid stability issues during solar generation hours and capacity shortages during peak demand
“The grid stability wise almost about 20% of the time in FY25 second half that is October to March the grid has seen a frequency growing beyond the norms. So therefore obviously there is nothing called during the period solar increasing. Now at the same time if you see in the evening peak and other peak hours, the demand is going up. In fact there is a prediction that there will be a shortage of capacity in even in July and others… the national load dispatch center has predicted that in the month of July and August the loss of load probability is as high as 40% for the evening hours okay and we expecting the 25 to cover shortfall during the hours.”
– JP Chalasani, Group CEO
FMCG & Consumer Goods
Flair | Mid Cap | FMCG
Flair Writing Industries Ltd is a leading Indian manufacturer of pens and stationery products, known for brands like Flair and Hauser. It has also diversified into creative tools and steel bottles, with a growing domestic and export presence.
More products are now made in-house, reducing costs, improving quality, and helping boost future margins.
“Currently, 70% of our Creatives are now produced within our in-house manufacturing facility… expanding in-house manufacturing is not just a cost-saving measure, it’s a strategic enabler that positions us for long-term sustainable growth and improved EBITDA performance.”
— Alpesh Porwal ,CFO
Flair is shifting from low-priced to premium pens, boosting profitability per sale.
“The rising share of mid-premium and premium products in our Pens category… is expected to have a direct and positive impact on our EBITDA margins… these products typically offer better pricing power and contribute a higher gross profit per unit.”
— Alpesh Porwal ,CFO
After years of investment, the bottles division is finally profitable, and they’re aiming for 50% growth.
“I am pleased to share that [Steel Bottles] has now turned EBITDA positive… this turnaround marks the transition from an investment-heavy phase to one that is now contributing positively to the company’s operating profitability.”
— Alpesh Porwal ,CFO
The company isn’t dependent on just one product and is growing steadily across all its divisions, showing balanced and healthy expansion.
“We are sticking to our overall target of 15% to 16% growth in the coming year… Pens at 10%, Creatives at 40%, and Steel Bottles at 50%.”
— Mohit Rathod, Whole Time Director
Linc Pen & Plastics Ltd | Small Cap | FMCG
Linc Limited (formerly Linc Pen & Plastics Limited) is a Kolkata-based company established in 1976, renowned for manufacturing a wide range of writing instruments and stationery products. With a presence in over 50 countries, it exports products under brands like Linc, Pentonic, Uniball, and Deli. The company operates certified manufacturing units in Serakole, Falta, and Umbergaon, producing millions of units daily.
This shift includes expanding into high-growth categories like markers, highlighters, mechanical pencils, sketch pens, and even calculators.
“We are also actively exploring opportunities across the broader stationery market, increasing our total addressable market from INR6,640 crores to INR38,500 crores.”
—Rohit Deepak Jalan, Whole Time Director
Management believes the way people buy writing instruments is changing in a big way. They are taking early steps to build strong digital skills to stay ahead.
“We aim to focus actually being a futuristic sales channel… it’s more of a channel acquisition JV… quick commerce is the future for the kind of price point that we are into.”
—Rohit Deepak Jalan, Whole Time Director
The company is targeting value-conscious yet aspirational Indian consumers by offering high-quality Japanese technology at affordable Indian prices,showing a strong product-market fit.
“The strategy for the joint venture is to introduce same quality of products at slightly lower price segment, just below INR50 MRP.”
— Rohit Deepak Jalan, Whole Time Director
United Spirits | Large cap | Alcoholic Beverages
United Spirits Limited, a subsidiary of Diageo plc, is a leading beverage alcohol company in India. It manufactures, sells, and distributes iconic global and premium Indian brands.
MD & CEO Praveen Someshwar came to the alcoholic beverages business from HT Media, a very different sort of business. When asked about how he navigated the shift, he said this:
“Even though I was in publishing, it was very much a consumer business. Overall, I believe this is a consumer product company with a difference. There’s legislation on pricing, route to market, and marketing. Once you embrace that reality, you learn to work with those. At times, it’s a handicap versus other FMCGs, but you build your brands through experientials, and that’s a powerful way of unlocking value. As you build your brands, you tend to build pricing power. Over time, I think legislation follows when they realize the pricing power of your brands, providing pricing opportunities, albeit slowly.”
— Praveen Someshwar, MD & CEO
Management believes that the lower tariffs on scotch imported from the United Kingdom will translate directly to lower prices for consumers:
“The reduction of duties from 150% to 75% will typically lead to a high single-digit reduction in consumer prices. We are of the view that we would want to pass on this benefit completely to the consumer, and therefore, keeping consumer spend constant, it’s reasonable to assume a high single-digit additional volume growth should occur in the BII (Bottled-in-India) portfolio. For the BIO (Bottled-in-Origin, i.e., imported) portfolio, the reduction might be slightly lesser, in the range of 4 to 5%. There will be a benefit that accrues into raw material prices also, but we’ll take a call on that when it happens. ”
— Pradeep Jain, Executive Director & CFO
The alcohol business is a play on two commodities — neutral spirits and glass. And, at least for now, the two seem to balance each other out:
“So, it’s kind of neutral alcohol spirit. We have started lapping the high prices of prior year. So, in terms of inflation percentage, that has moderated. And on the reverse side, glass, we have started lapping the low prices of prior year, right? So there also, the deflation has kind of gone up to flat levels, right? So therefore, the 2 are kind of neatly squaring off against each other. But can’t complain about inflation right now. I think our next inflection point will be somewhere around September, October, when government announces the ethanol fuel blending price-led prices for neutral alcohol spirit, right? So that would be the next inflection point.”
— Pradeep Jain, Executive Director & CFO
The company flags some older issues as having dented its growth in the premium segment, but reiterates that those disruptions were only temporary:
“The top-end luxury plus premium grew 11%. If you look at our sources of growth, that segment still contributes to 41% of our value growth, in line with the prior year. We’ve discussed some hypotheses around post-COVID recent consumption moderating and the tailwind from duty-free to duty-paid moderating. These were the key things, but we don’t see anything structurally wrong in luxury and premium consumption in India. This is a temporary blow, and we believe that another three or four quarters down the line, we should come back to normal. ”
— Pradeep Jain, Executive Director & CFO
The company plans to focus on its “on-premise channel” — which basically means selling alcohol in establishments like restaurants, bars and hotels:
“Clearly, it’s to say whether how big the channel is and how big the opportunity is. What we all know, it is a very, very important channel where you can drive sampling and build habit over a period of time. In terms of consumer spaces, as I call it, it’s a massive connect platform. And that’s where roughly one-third of our business happens. And therefore, clearly, a big area of opportunity. We certainly play that opportunity. As we look at it, we believe we have some opportunity to dial up our play, and that’s the focus we’ll bring on, on-premise. ”
— Praveen Someshwar, MD & CEO
EID Parry (India) Ltd| Small Cap | Sugar
EID Parry is engaged in Sugar, Nutraceuticals and ethanol production. It also has a significant presence in the Farm Inputs business including Bio pesticides through its subsidiary, Coromandel International Limited.
[Concall]
Consumer products business positioned as strategic pivot away from policy-dependent sugar operations, targeting double-digit growth to become core revenue driver within 3-5 years.
“Branded packaged food business in India is growing at about 12% annually. We will be trying to beat that estimate in terms of our growth rates and we will continue to keep focused on building the brand and driving the distribution. The consumer product business will continue with sustained aggression on distribution growth and volume growth. Right now we are present in the south of India and as the market demand picks up we will be expanding across to other geographies. Apart from sugar and distillery, definitely 3 to 5 years down the line the consumer products business will be one of the important core segments for the company.”
– Balaji, Consumer Products Head
Refinery business requires ₹427 crore impairment with ₹350 crore fresh infusion as white sugar premiums collapse due to European and Ukrainian supply surge.
“The refinery business went through challenging times in the second half of FY25 basically on account of the drastic fall in the white premium that happened because of increased supply that came out of European Union, Ukraine and some extent out of Pakistan as well. The impairment has been done on account of poor financial performance. We were required to take this impairment. We have assessed the future cash flows to be lower than the book value. The infusion is to strengthen the net worth of the company and also bring about some debt reduction. Going forward in FY26 there is a spillover effect as we start the financial year. However, there is a tightening of the supply and we are seeing the white premiums going back, may not be up to the levels that we witnessed in FY24 but definitely much better than the FY25 level.”
Textiles & Apparel
Monte Carlo Fashions Limited | Small Cap | Textiles
Monte Carlo Fashions Limited is an Indian apparel company headquartered in Ludhiana, Punjab. It specializes in mid-premium fashion, offering a diverse range of products including woollen and cotton garments, home textiles, and accessories. The company operates over 350 exclusive brand outlets and is present in more than 2,500 multi-brand outlets across India.
Monte Carlo is able to raise prices without hurting sales, showing strong brand loyalty and consumer stickiness.
“Luckily, our brand has pricing power and we can pass on the prices to the consumers… Discounts have come down compared to last year, which has added to profitability.”
— Rishab Oswal, Executive Director
Monte Carlo is doubling down on the winter wear segment while rivals are exiting it. This reduces competition and increases Monte Carlo’s pricing power with large distributors.
“We had more than 1500 retailers coming over for the trade show, and we’ve gotten a very good order book… A lot of other brands are pulling out of [the winter category]. That gives us leverage with bigger players like Reliance, Myntra, or Amazon to negotiate better margins.”
— Rishab Oswal, Executive Director
Management is not just optimistic, they have a strong track record of delivering on what they predict. Their FY26 guidance shows confidence in execution.
“We are very confident of achieving a double-digit growth going forward… and improving our EBITDA from this level also. Last year we guided flat growth and margin improvement — and we delivered.”
— Rishab Oswal, Executive Director
Monte Carlo’s Q4 loss wasn’t unexpected , it came from industry-wide discounting and returns. But this year, they cut the loss in half by planning ahead, showing better control over operations.
“This fourth quarter, as you rightly mentioned, historically, we have seen that this quarter basically has more discounts and returns. That is why it affects the profitability and we normally have a loss in this quarter. But as compared to last financial year, we have cut down this loss by almost half… adequate provisioning has been taken in the third quarter.”
— Rishab Oswal, Executive Director
[Analyst Take: Why Q4 was a loss-making quarter compared to profitable Q4s in prior years]
Campus Activewear | Small Cap | Retail
Campus Activewear Limited (“Campus”) is one of India’s largest sports and athleisure footwear brands in terms of value and volume. The company manufactures and distributes a variety of footwear like Running Shoes, Walking Shoes, Casual Shoes, Floaters, Slippers, Flip Flops, and Sandals, available in multiple colors, styles, and at affordable prices.
Quantifies margin impact from non-BIS inventory liquidation (20-40 bps) and signals this will continue into FY26.
In 2023, the Indian government implemented a Quality Control Order (QCO) mandating that all large and medium-scale footwear manufacturers, as well as importers, comply with BIS standards for 24 categories of footwear products. The implementation of BIS standards led Campus Activewear to expedite the liquidation of slow-moving and non-moving inventory to comply with the new regulations.
“There won’t be anything like a direct impact of BIS. I would rather put it as a normal liquidation of slow-moving and non-moving inventory.
This year, since BIS kicked in, we had a timeline to chase and hence there was an urgency to liquidate certain stocks.
As we mentioned in the beginning, it had an impact of anywhere between 20 to 40 basis points on our margins. That’s the number which is sitting there in the current year, and in the next year also, it is likely to be in the same range.”
– Sanjay Chhabra, CFO
[Analyst Take: The ongoing margin impact from liquidating non-BIS inventory is a key factor for FY26 margin forecasts, despite it being framed as normal liquidation.]
Management anticipates a revival in footwear industry growth driven by BIS implementation, benefiting organized players.
“Actually, the last two or three years, we’ve seen the industry not growing in footwear. That’s been the trend, mainly due to subdued demand on the consumer side.
So we do expect that, finally, due to the non-BIS liquidation and the actual BIS implementation, the industry should start growing. It’s a big tailwind for everybody — especially the organized players.
And we are fully geared up for it. With respect to the assortment of products we are providing this year, the 250 new styles are very well received in the market.
So there are certainly a lot of tailwinds. We just need to execute it right and get it correct.”
– Nikhil Aggarwal, CEO
Provides a nuanced view of demand, noting softness in metros/Tier-1 cities but overall positive momentum and tailwinds.
“More has been done, but the saliency has slightly dropped — especially when you compare metros to rural and Tier 2 and Tier 3 towns, year on year.
There has been some dip in consumer demand in metros and Tier 1 cities. But apart from that, we definitely see a much more positive momentum overall, which has also given us some tailwinds.
Going forward as well, we hope that this tailwind and positive momentum continues. We don’t see any roadblocks or headwinds at this moment.”
– Nikhil Aggarwal, CEO
Highlights exceptional growth in the sneaker category, a key focus area for the company
“Our sneaker portfolio saw an impressive growth of 150% versus FY24, reaffirming our commitment to deliver stylish, high-quality footwear that remains accessible”
“We also commenced commercial production from our Haridwar 2 facility for manufacturing high-quality uppers for sneakers during March 2025.
Your company will benefit from this additional capacity for the full year during FY26. In parallel, we went live with SAP on the 4th of April 2025 to streamline operations, enhance inventory control, and improve planning and forecasting — laying the foundation for scalable and agile growth.
As we look ahead, we are energized by the opportunities in front of us.”
– Nikhil Aggarwal, CEO
BIS regulations are tangibly reducing Chinese imports, creating a more favorable environment for domestic manufacturers like Campus.
“Yes, I mean, the imports have certainly dried up. Overall volume has dropped from China — we do see some impact of that. But honestly, to quantify it is still kind of early.
There has been some inventory from non-BIS sources which is still being liquidated by a lot of companies into the market. And since the government extended the BIS timeline for liquidation to July 2026, companies have taken that leverage and are taking their time.
But it’s obviously a finite quantity — there is no new, fresh incoming non-BIS material or goods anymore.
And the impact from China — we definitely see from channel checks that there’s a much smaller volume coming into the market.”
– Nikhil Aggarwal, CEO
Financial Services
Life Insurance Corporation of India | Large Cap | Financial Services
Life Insurance Corporation (LIC) is the largest insurance provider company in India. It has a market share of above 66.2% in new business premium. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
[Concall]
Non-participating business transformation accelerating with 50% growth, fundamentally reshaping LIC’s profitability profile from traditional par-heavy model.
“Our non-par share of individual AP is 27.69% and par share of individual AP is 72.31%. For year ended March 31st 2025, as you may recall for the year ended 31st March 2024 our non-par share of total individual business based on AP stood at 18.32%. Since then our non-par AP has increased substantially from ₹7,041 crores to ₹10,581 crores. This marks a significant year-on-year growth of 50.28% in non-par AP within the individual business. As you will appreciate that we are growing our non-par share at a very fast pace.”
– Siddhart Muhanty, CEO and MD
Bank assurance channel explosion with 58% growth signals successful diversification beyond traditional agency dominance, creating new distribution leverage.
“There is significant growth in new business premium income from our bank assurance and alternate channel. Bank assurance and alternate channel including micro insurance collected new business premium income of ₹3,496.10 crores for the year ended March 31st, 2025 which was ₹2,213.22 crores for the year ended March 31st 2024 registering a growth of 57.96% on a year-on-year basis. Our bank assurance and alternate channel now account for 5.59% of individual new business premium for the year ended March 31st 2025 up from 3.84% for the year ended March 31st, 2024.”
– Siddhart Muhanty, CEO and MD
Expense ratio improvement of 315 basis points to 12.42% creates significant operating leverage as employee optimization and wage revision impacts normalize.
“Our overall expense ratio for the year ended March 31st, 2025, the overall expense ratio was 12.42% as compared to 15.57% for the same period last year. Therefore, there is a decrease of 315 basis points on year-on-year basis. In the last year there was a wage revision that happened and accordingly based on the wage revision we had to make a provision for the pension and other retirement liabilities that happened in the last year which is not repeated in the current year. Therefore to that extent the expenses are less.”
General Insurance Corporation of India | Mid Cap | Financial Services
The General Insurance Corporation of India (GIC Re) is primarily a reinsurer, meaning it provides reinsurance to other general insurance companies in India and internationally. GIC Re assumes part of the risk from the original insurance policies written by these companies, helping to distribute risk and increase their capacity to handle large claims.
Rating upgrade to ‘B’ status emerges as key catalyst for international business revival. GIC has regained market credibility after the 2020 downgrade, securing new account wins in January renewals and positioning for sustained growth in previously lost territories across global reinsurance markets.
“The fourth quarter growth is mainly resulting from the rating upgrade of GIC wherein we got the rating upgrade in the month of November 24 and that has been passed on to our reinsurance business and based upon that we are able to write some of the new accounts in the January renewal and that has catered to the growth in international business in the fourth quarter. Now that we got our ‘B’ rating back and the international market is aware of it and no doubt they are coming and offering the new accounts to us or wherever we lost the accounts we are trying to regain them. Going forward our imperatives is that we look forward to the new markets where we have been moved out because of our rating downgrade in the year 2020, we are not able to renew some of the accounts. Now we are trying to look into those territories where we can re-enter them and to bring about or to renew those accounts or to gain those accounts which are lost to us.”
– Saurabh, GM Reinsurance
Health insurance portfolio transformation highlights commission-driven competitive dynamics. GIC achieved exceptional 66% growth by focusing on retail health business, but sustainability faces challenges as standalone insurers demand higher commission rates, forcing strategic choice between growth and profitability in an increasingly competitive landscape.
“We have seen phenomenal growth this year in comparison to last year and this is mainly the concentration was on retail health business that we had categorically chosen to write. Going forward, yes that achievement of this sort of growth will not be possible because all the standalone companies tend to have higher commission levels and whether we can meet their demands is a question going forward. The percentage of growth that we have seen this year is not likely to continue going forward. If the commission demand is higher then this ₹9,500 crores of business what you did in fourth quarter might see a decline also because it might not be acceptable terms for you. Yes, it may be possible but the other way is that there are also new participants coming up who want to have their participation in health line of portfolio.”
– Saurabh, GM Reinsurance
Crop insurance structural overhaul through SSM model reshapes risk-return dynamics. The transition from PMFBY’s 250% liability exposure to SSM’s capped 110-130% model reduces premium pools by 50-60% but offers superior risk management, with states like Maharashtra adopting the new framework for better loss control and sustainable economics.
“Currently the crop portfolio has gone through substantial changes. It has been the SSM model which has been in vogue now in comparison to the previous model of PMFBY scheme where the liability was 250%. Whereas in this SSM model the cap is at 110% or 130% which is usually chosen by various states. So that is where the premium has come down and it has come down by more than 50-60% because the exposure is less, the insurance companies try to pass on the benefit on the premium front to the state insurers. For example, for a state like Maharashtra where the premium goes up to ₹10-12,000 crores they have now opted for SSM model wherein the loss cap is kept at 110%. So naturally the premium will come down by 50 to 60%.”
– Saurabh, GM Reinsurance
Software
Cyient | Mid Cap | Software Services
Cyient Ltd. is an Indian engineering and technology solutions company specializing in design, digital, and data-driven services for sectors like aerospace, transportation, and utilities. It leverages deep domain expertise to support global clients in product development and operational efficiency.
This highlights Cyient’s long-term growth path and shows it is evolving from a mid-cap company into a more mature, multi-vertical global player.
“We will continue to look at ways to enhance our portfolio using M&A… especially some of the emerging technologies.”
—Krishna Bodanapu, Executive Vice Chairman & Managing Director
Withdrawing guidance signals short-term uncertainty, but it also shows the company is focusing on internal realignment and better execution after acknowledging past forecasting mistakes.
“We will be stopping guidance for now. Given the current macro environment, we believe it is prudent to utilize FY26 to build strength, predictability and stability across our portfolio.”
— Sukamal Banerjee, CEO
This highlights Cyient’s sharp focus on India-based Global Capability Centers (GCCs),a fast-growing, margin-sensitive segment and reflects its strategic pivot to new growth areas without compromising on margins.
“We have now created a GCC-focused business unit… We will ensure EBIT is not diluted from this business.”
— Sukamal Banerjee, CEO
Healthcare & Pharma
MedPlus | Small Cap | Healthcare
Medplus Health Services Limited is a leading healthcare company in India with a network of pharmacy stores, online pharmacy, path labs, and optical services.
[Concall]
Reveals the specific reason behind the company falling short of its original store expansion target:
“As a couple of things happened actually one the first quarter of last year was not great because of the elections and everything else and then by the time that we went into the second quarter and all we realized that our warehouses were strained they were not able to supply all the stores and we decided that we’ll actually slow down especially in the periphery.”
– Madhukar Gangadi, CEO & MD
The company is not actively marketing their private label products, they expect word-of-mouth about cost savings to eventually drive customers
“Going forward, what are the drivers? You know, there could be several as we continue to make the private label popular. We’re not really spending any money on elders actually but as word of mouth spreads and more people benefit from the savings of private label. We expect at some point, there will be people walking into a store to take advantage of that. But I don’t think that time is now. I think we probably need to wait for a while before the commission starts happening in a major way."
– Madhukar Gangadi, CEO & MD
Pharmacy inventory management prioritizes product availability over efficiency:
“The store’s reputation is built on fill rate. So we’re going to constantly cut the long tail, people will stop coming to us. We have several products in our store which we would have not sold even once in 6 months or once in 7 months, but they need to be carried. Because every month we see from the list of products which you sell there, several products which you have never sold in 6 months is part of a customer’s overall basket and if it were not for that product maybe the customer would have walked. So the thing, in pharma, is not focusing a lot on inventory in the store but more on the field rate and the top line I would say."
– Madhukar Gangadi, CEO & MD
Logistics
TVS Supply Chain Solutions | Mid Cap | Logistics
A part of the TVS Group, TVS Supply Chain Solutions provides integrated supply chain and logistics solutions globally. Their services include warehousing, transportation, freight forwarding, inventory planning, and technology-driven supply chain optimization.
They went from a loss last year to profit this year, proof that their turnaround strategy is actually working.
“FY25 marked a strong turnaround year. We achieved a profit before tax of ₹29 crores, a significant improvement from a loss of ₹10 crores in FY24. Our revenues from operations grew by 9% year-on-year from ₹9,200 crores to ₹9,996 crores, reflecting a solid execution across markets and segments. These results reaffirm the strength of our strategy and our progress towards achieving our vision of a 4% PBT margin.”
— Ravi Viswanathan, Managing Director
They’re cutting costs now to boost profits later, expecting better margins starting late FY26.
“These actions will continue through Q2 of FY26, and these initiatives will yield results from the second half of FY26. Importantly, these actions are aligned with our long-term financial objectives and will set the organization firmly on the path to achieving our committed target of 4% PBT.”
— Ravi Viswanathan, Managing Director
The Freight Division is struggling due to trade tensions and low margins, the weak link in the business.
“It’s important to call out that the GFS (Global Forwarding Solutions) business continues to operate at structurally lower margins. The global freight industry is currently facing a period of uncertainty and potential contraction, influenced heavily by policy-induced trade disruptions. In particular, recent developments around US tariffs and container availability are posing significant operational and cost challenges.”
— Ravi Viswanathan, Managing Director
A major UK contract adds predictable revenue and shows TVS is competing with global logistics players.
“I’m pleased to share that the contract has now been finalized. It’s a UK-wide mandate focused on storage and distribution services— a three-year, ₹1,000 crore revenue contract with a Fortune 500 British multinational retail chain. This win underscores our positioning in the market and reaffirms the strength of our integrated supply chain solutions capabilities.”
— Ravi Viswanathan, Managing Director
Hospitality, Travel & Tourism
TBO Tek Ltd | Mid Cap | Tourism & Hospitality
TBO Tek Ltd is a global travel distribution platform that connects travel suppliers (such as hotels, airlines, and car rental providers) with travel buyers (including travel agencies, online travel agencies, and tour operators). The company operates through segments like Air Ticketing, Hotels and Packages, and others.
TBO’s strategic shift toward the hotel segment is driving higher revenue and margin growth.
“From the gross profit perspective, 84% of our gross profit is now generated from the hotels business and only 13% from airlines.”
— Gaurav Bhatnagar, Co-Founder and Joint MD
TBO’s new platinum program shows that its platform can actually influence which hotels travel agents choose.This helps TBO earn higher commissions (take rates) and strengthens its position as a premium B2B brand, which sets it apart from others in the crowded travel booking space.
“In March… a 22% improvement in the share of wallet of the platinum hotels… April was even better with almost 30% improvement.”
— Gaurav Bhatnagar, Co-Founder and Joint MD
TBO’s strategy to focus on premium outbound markets gives access to customers with higher average booking values, leading to rlong-term stickiness.
“Europe is the largest market for us… not only the largest, but also the fastest growing.”
— Gaurav Bhatnagar, Co-Founder and Joint MD
Indian Railway Catering and Tourism Corporation | Mid Cap | Hospitality
Indian Railway Catering and Tourism Corporation Limited (IRCTC) is the exclusive provider of catering services, online ticketing, and packaged water for Indian Railways.
[Concall]
Highlights the rapid growth in the e-catering segment:
“I can give you a picture of our e-catering business which will clearly indicate you how they are performing. Annually we grew from 33 cr last year to 54 cr this year that is a growth of 63%. And in Q4 itself we have grown from 9 cr to 15 cr that is a 53% increase.”
— Sanjay Kumar Jain, CMD
Explains why catering revenue didn’t grow as expected despite increased train services for Mahakumbh:
“This year Mahakumbh when the trains were run, these were without catering facility because the main target of government was to take more and more passengers to the Mahakumbh and clear the rush from there. So these Mahakumbh trains were largely without catering facility as a prepaid trains.”
— Sanjay Kumar Jain, CMD
Explains the one-time gain of approximately 45 crores from resolving legacy items:
“We have legacy items since many years, and this year we could clear the legacy transactions and you are right that we have gained a one-time revenue out of this. This was essentially required to clean up our balance sheet and management has taken an initiative that we should clean our balance sheet.”
— Sanjay Kumar Jain, CMD
Metals & Minerals
20 Microns Limited | Small Cap | Metals
20 Microns Ltd is an Indian specialty minerals company that manufactures and supplies industrial minerals, functional fillers, and extenders used in paints, plastics, ceramics, paper, and coatings. It is a leading player in the micronized minerals segment with a focus on innovation and value-added products.
The company cuts down on imports and saves costs, but the impact on profits is still uncertain.
“We would start [the Malaysian mine] somewhere in the next two months… we will be mining as per our own requirements… and selling the non-required ore to external industries.”
— Atil Parikh, CEO
Despite the paint sector having a global risk, management reaffirms steady medium-term growth guidance.
“Keeping a 15 to 18% target of growth is something that we are really looking at… considering the external conditions also.”
— Atil Parikh, CEO
The company is mainly spending on premium clay and kaolin products to improve profits.
“We’ll be investing about ₹15 to ₹18 crores… putting up a calcination facility for the rubber industry and specialized paint grades.”
— Atil Parikh, CEO
Inventory went up over 40% from last year because of import timing and shipping plans, not because of low demand.
“You need to build up the inventory in India because just-in-time doesn’t work for these minerals… that was one of the reasons you see a huge jump in inventory.”
— Atil Parikh, CEO
Building Materials
Heidelberg Cement | Small Cap | Building Materials
HeidelbergCement India Limited is a subsidiary of Heidelberg Cement Group, Germany. The company is engaged in the manufacturing and selling of Cement at its three locations viz. Ammasandra (Karnataka), Damoh (Madhya Pradesh) and Jhansi (Uttar Pradesh).
[Concall]
Strong growth in premium product penetration:
“If we split the pattern, the sales pattern you’ll have 44% of our total sales has happened by road. This was flat year on year. 43% of our trade volume has come from premium products. This is almost 9% up from last year.”
Quantifies the cost advantage of green power and provides specific targets for increasing green power share in FY26:
“So green power, we have the cost arbitrage. When we compare with our grid power because whatever the green power we are purchasing that is that we are replacing with the our green power and then it is 25% cheaper than the than the grid power…The second question, how much is the green power you are going to make in the financial year 2026? So we expect that maybe around 2 to 3% increase in financial 2026 because we have recently entered into this 5 and a half megawatt for the green power and that electric will come in the final 2026.”
That’s it for now! Your feedback will really help shape how The Chatter evolves. Drop it down in the comments below!
Quotes in this newsletter were curated by Kashish, Mridula, Vignesh & Prerana.
Disclaimer: We’ve used AI tools in filtering and cleaning up these quotes so there maybe some mistakes. Now, if you are thinking why we are using AI, please remember that we are just a small team of 5 people running everything you see on Zerodha Markets 
So, all the good stuff is human and mistakes are AI.
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