Jai Mata Di ఆ జగన్మాత ఆశీస్సులు అందరిపై ఎల్లప్పుడూ ఉండాలని, ప్రతి ఒక్కరి జీవితంలో సుఖసంతోషాలు, ఆయురారోగ్యాలు, ఐశ్వర్యం నిండాలని కోరుకుంటున్నాను. విజయదశమి శుభాకాంక్షలు! माता रानी की कृपा हम सभी पर सदैव बनी रहे और हर घर में सुख, शांति, समृद्धि और खुशहाली आए। विजयादशमी की हार्दिक शुभकामनाएँ! May Mata Rani bless everyone with happiness, prosperity, good health and the strength to overcome every challenge. Happy Dussehra! Jai Mata Di

Between the Lines: Signals from the Concall Room HFCL: "...Over FY26. After the first quarter, I revised it to 40%, and today when I present Q2 FY27 results to you, I am extremely pleased to share that based on our current expectation and business visibility, we expect revenue growth of at least 80% in this financial year..." Bajaj Healthcare: "...Looking ahead, our aim is to reach a revenue of ₹900 to ₹1,000 crore by FY29 with an EBITDA margin of 18 to 21%..." ICICI Bank: "...But then from Q4, I would expect margins to come back in a pretty healthy way as these factors start to reverse out, even assuming that there are no further rate hikes..." Jindal Saw: "...Surging raw material costs, particularly for coking coal, have squeezed margins in the DI pipe business. This pressure was further compounded by lower capacity utilization due to lower execution of water pipe business as softness in domestic water business continued..." HDFC Bank: "... I don't want to get to whether what is the next quarter and the following quarter and so on, but from a trajectory point of view, I think that it is at the bottom..." Sejal Glass: "...Margins will be definitely more in terms of EBITDA [for Fire-Rated Glass]. It is more than 30% because it is a very value-added product..." Union Bank of India: "...as a green shoot in private sector CapEx, we are seeing the next phase of credit growth in economic activity, whether it is data centers or AI infrastructure, nuclear, renewable power, and select conventional sectors like steel manufacturing. I think these are picking up, including pharmaceuticals..." Hindustan Zinc: "...zinc fundamentals remain strong with 2026 forecasted refined zinc demand is at 13.87 million tons, whereas the supply outlook is at 13.69 million. That means there is almost a 180 KT deficit in the market...Silver again is expected to remain in deficit for the 6th consecutive year in 2026. Overall shortfall is projected at about 1,44,000 tonnes..." Ixigo: "...And I think today when I'm starting hotels at 2.1% of GTV if I tell you that in a few years' time this should be one of the top 2 GTV contributors for me in 4-5 years..." My partner in this crime: @concall_in

Between the Lines: Signals from the Concall Room HFCL: "...Over FY26. After the first quarter, I revised it to 40%, and today when I present Q2 FY27 results to you, I am extremely pleased to share that based on our current expectation and business visibility, we expect revenue growth of at least 80% in this financial year..." Bajaj Healthcare: "...Looking ahead, our aim is to reach a revenue of ₹900 to ₹1,000 crore by FY29 with an EBITDA margin of 18 to 21%..." ICICI Bank: "...But then from Q4, I would expect margins to come back in a pretty healthy way as these factors start to reverse out, even assuming that there are no further rate hikes..." Jindal Saw: "...Surging raw material costs, particularly for coking coal, have squeezed margins in the DI pipe business. This pressure was further compounded by lower capacity utilization due to lower execution of water pipe business as softness in domestic water business continued..." HDFC Bank: "... I don't want to get to whether what is the next quarter and the following quarter and so on, but from a trajectory point of view, I think that it is at the bottom..." Sejal Glass: "...Margins will be definitely more in terms of EBITDA [for Fire-Rated Glass]. It is more than 30% because it is a very value-added product..." Union Bank of India: "...as a green shoot in private sector CapEx, we are seeing the next phase of credit growth in economic activity, whether it is data centers or AI infrastructure, nuclear, renewable power, and select conventional sectors like steel manufacturing. I think these are picking up, including pharmaceuticals..." Hindustan Zinc: "...zinc fundamentals remain strong with 2026 forecasted refined zinc demand is at 13.87 million tons, whereas the supply outlook is at 13.69 million. That means there is almost a 180 KT deficit in the market...Silver again is expected to remain in deficit for the 6th consecutive year in 2026. Overall shortfall is projected at about 1,44,000 tonnes..." Ixigo: "...And I think today when I'm starting hotels at 2.1% of GTV if I tell you that in a few years' time this should be one of the top 2 GTV contributors for me in 4-5 years..." My partner in this crime: @concall_in

And the Oscar goes to

Some of the videos coming out of France are genuinely disturbing. It’s becoming increasingly difficult to see this as just a student protest. There seems to be a much bigger problem brewing around immigration, integration and law and order. France may well be paying the price for years of woke politics. It’s only a matter of time before several other countries are consumed by the same chaos.

Timepass talk on Sunday 1. Namo eWaste Management Namo eWaste Management is an integrated e-waste and lithium-ion battery recycling company with four plants, 26+ collection centres and 300+ clients. Its revenue streams include e-waste recycling, refurbishment of electronic devices, EPR credits and compliance services, and battery recycling. It recovers valuable materials such as copper, aluminium, gold and silver while extending the life of usable electronics. In FY26, revenue grew 29% to ₹195 crore, EBITDA increased 56% to ₹23.1 crore and PAT grew 70% to ₹14.35 crore, reflecting operating efficiencies and improving profitability. The key opportunity is its planned move up the value chain through hydrometallurgy. Instead of stopping at producing black mass from used lithium-ion batteries, the company intends to recover critical minerals such as lithium, cobalt, nickel and manganese, potentially creating a higher-margin business. Near-term triggers include the ramp-up of its Nashik battery recycling facility, commissioning of the Hyderabad plant to improve access to South India's electronics ecosystem and reduce logistics costs, and higher utilisation of existing capacity. Stricter EPR compliance, rising e-waste generation and growing demand for critical minerals provide additional structural tailwinds. Management is targeting approximately ₹400 crore revenue in FY27, comprising ₹200–210 crore from e-waste and around ₹200 crore from battery-related operations. It expects battery recycling EBITDA margins of approximately 20%, while the proposed hydrometallurgy business could generate 25–30% margins after black-mass recovery. Management also indicated an aspiration to roughly double FY26 PAT of ₹14.35 crore, subject to successful execution. The hydrometallurgy project is planned in phases, beginning with a pilot facility before scaling up; government subsidies are expected to support the investment. Management has also indicated a potential main-board migration in 1.5–2 years, subject to reaching revenue of ₹800–900 crore and PAT above ₹50 crore. 2. Innomet Advanced Materials Innomet Advanced is a specialty powder metallurgy company operating through two divisions: metal/alloy powders and tungsten heavy alloys (THA). Its metal powders cater to automotive components, diamond tools, coatings, catalysts and additive manufacturing, while tungsten heavy alloys find applications in defence, aerospace, radiation shielding and engineering. Innomet's key differentiation is its specialised materials expertise and position in niche tungsten heavy alloys, including defence applications such as Pinaka rocket pre-fragments. The company received AS9100D aerospace certification, strengthening its access to global aerospace and defence supply chains. Its acquisition of a 57.5% stake in Swastik Tungsten provides backward integration and opens a new business in tungsten metal powders, tungsten carbide powders and components. Another important trigger is its DRDO-supported collaboration with IIT Hyderabad to establish an advanced gas atomisation facility for aerospace, defence and additive manufacturing powders, with a sanctioned project outlay of ₹8.73 crore. Export growth, China+1 opportunities and new product commercialisation are additional potential catalysts. Per the FY26 concall, management were expecting the metal powders division to reach its existing capacity limit soon, with plans to expand from 50 tonnes per month towards 75–100 tonnes. This is something that needs to be tracked in H1 commentary. Tungsten heavy alloy capacity has increased to 5 tonnes per month, with management indicating around 50% utilisation. Innomet’s international order book has exploded in FY27, driven by strong traction in tungsten heavy alloys, particularly from Israel. This could translate into not just stunning revenue growth but also a sharp improvement in margins, with management expecting THA EBITDA margins to exceed 20%. If execution remains on track, FY27 revenues could potentially more than double FY26 levels. 3. Oligonucleotides Think of our body as a factory that produces proteins to perform different functions. DNA is the master blueprint, and RNA carries the instructions to the factory on which proteins to make. But what happens when these instructions lead to the production of a harmful protein? Oligonucleotides are short, synthetic strands of DNA or RNA designed to intervene in this process. Some proteins are extremely difficult to target directly with conventional drugs. Instead of trying to catch the harmful protein after it is produced, oligonucleotides intercept the message that tells the body to make it. By blocking, destroying or modifying that message, they can reduce or alter the production of the target protein. Imagine intelligence agencies know terrorists are hiding in a town but cannot identify which houses they occupy. One approach is to search for them house by house, much like conventional small-molecule drugs (Aspirin or Dolo) that target proteins directly. But if that's not feasible or practical, the alternative is to intercept the messages carrying their instructions (from Terroristan) before they can act. That’s the oligonucleotide approach: instead of targeting the culprit, intercept the message that tells the body to produce it. This ability to intervene at the level of genetic instructions opens up possibilities for treating diseases that were previously difficult to address with conventional medicines. Some oligonucleotide therapies can also deliver long-lasting effects, allowing less frequent dosing, depending on the drug. For the CDMO industry, this creates a specialised manufacturing opportunity. Oligonucleotides require expertise in complex chemical synthesis, purification and quality control. As more therapies advance towards commercialisation, specialist CDMOs could benefit from growing demand for outsourced manufacturing. In the CDMO universe, Oligonucleotides are expected to grow at 20% CAGR. Within the Indian CDMO universe, Cohance Life (thru Sapala Organics), Sai Life, and Anthem Bio talked about Oligos but it is still an evolving area. 4. Kanohar Electricals Kanohar is a 54-year-old engineering company specialising in high-voltage power transformers, railway transformers and shunt reactors, with an EPC business covering substations and transmission lines. Transformers contributed around 85% of FY26 revenue, while EPC accounted for the remaining 15%. The company operates manufacturing facilities in Meerut with a combined annual capacity of 19,200 MVA and reported FY26 revenue of ₹653.8 crore with an EBITDA margin of 27.6%. The key differentiator is its qualification-led position in high-voltage transformers. Large utility and railway tenders require proven field performance and product-specific short-circuit certification, which can take 18–24 months to obtain. Kanohar has completed over 200 successful short-circuit tests and is among the few Indian manufacturers certified for 500 MVA, 400 kV transformers. Its 400 kV product contribution rose from 10.3% of transformer revenue in FY24 to 52% in FY26 and approximately 70% in Q1 FY27, reflecting a shift towards higher-value products. The industry opportunity is supported by structural demand from rising electricity consumption, renewable-energy evacuation, data centres and railway modernisation. The government’s Green Energy Corridor III, with a stated outlay of ₹1.85 lakh crore, is focused on intra-state transmission, where 400 kV equipment is particularly relevant. Kanohar also has a potential longer-term growth lever in 765 kV transformers, although management indicated that regular tender eligibility could take another three to four years. Management is targeting FY27 revenue of approximately ₹950 crore (45% YoY growth), with an EBITDA margin broadly similar to FY26’s 27.6%. The June-end order book stood at ₹2,026 crore, with another ₹867.3 crore of orders added during Q2. The company plans an additional 18,000 MVA of capacity at Gangol for FY29, while its roughly 120-day net working-capital cycle remains an important factor to monitor. 5. RBZ Jewellers - Shared on multiple times in last 10 months Below is the original post followed the latest update RBZ Jewellers operates a unique dual-channel model, combining a strong B2B wholesale presence, supplying to national giants like Titan, Malabar and PNG, with its high-growth B2C retail brand, Harit Zaveri Jewellers, which currently operates an ~11,000 sq. ft. flagship store in Ahmedabad. A little over a year ago, RBZ had guided for ₹800 crore revenue in FY26 and ₹1,000 crore in FY27. During the Q4FY25 concall, the FY26 guidance was moderated to ₹700 crore, while FY27 guidance of ₹1,000 crore was retained. However, in the Q3FY26 concall, management further revised expectations, guiding for ₹630–650 crore in FY26 and ₹800–900 crore in FY27. With multiple factors coming together (guidance coming down, volumes coming down), the market seems to have lost interest in the stock, pushing valuations to what appears to be their cheapest levels so far. But there may be a silver lining. The company is on track to open two large retail stores in Surat and Rajkot by Q2FY27. If executed well, these three stores could potentially push retail revenues into four digits, while also improving overall margins. That said, in the near term PAT may remain under pressure, as marketing spends and other launch-related expenses could weigh on profitability in FY27. Structurally, the business mix is also evolving. By FY27, volumes are expected to be roughly split 50:50 between retail and B2B, while retail could contribute ~75% of revenues, with wholesale and job work accounting for the remaining ~25%. Latest update: FY26 ended with 636cr revenue with 15% margins and Q1 posted 120cr revenues with ~15% EBITDA margins. However, the more interesting development is on the B2C front! The company opened its second retail outlet in September, a 10,000 sq. ft. flagship store in Surat, with couple of more stores in the pipeline. The B2C transformation is now becoming visible. Profitability may remain muted in FY27 due to promotional spending and working-capital requirements as the retail business scales up. However, if execution stays on track, FY28 could be a substantially stronger year for profitability. What to track in Q2: Progress in the launch of new stores. Inventory and working capital trends. Promotional spending for newly launched stores and its impact on profitability. Progress of the daily wear product launch. Effectiveness of the company's hedging strategy in managing input cost volatility and protecting margins. That's all for this edition. Have a great Sunday! Disclaimer: None or buy or sell recommendations. This publicly available information is shared for learning and education purposes.

If you’re investing in global themes such as Electrification or CDMO, tracking global leaders can make it much easier to understand the growth trajectory of your Indian investments. Here are some key excerpts from Lonza Group AG’s Analyst/Investor Day, offering insights into its growth strategy and margin expansion plans. Which Indian CDMO names come to your mind when you read this and why...!? Do mention in the comments! 1. Growth outlook: Beyond 2030 We have several smaller growth projects in the pipeline. Our highly potent API and drug product assets developed at Stein, Switzerland, will also contribute to growth. Alongside these projects, our existing base business is highly predictable and will continue to support growth through 2030. But as Wolfgang [CEO] mentioned, our growth story does not end in 2030. We are investing today to drive growth over the coming decades. We have already announced three projects this year, and more announcements will follow as we implement our renewed infrastructure strategy. Over the coming months and years, we will share details of the additional investments required. We are confident about achieving our 2030 growth ambitions while laying the foundation for the next decade and beyond. 2. EBITDA margin expansion: From 30% to 33–34% In 2024, our core EBITDA margin was slightly above 30%. For 2026, we are reiterating our guidance of 33–34% EBITDA margins. How will we achieve this improvement? There are three key drivers. First, maturing growth projects. The projects driving revenue growth today will also improve margins over time. As these projects mature and capacity utilization increases, fixed costs get spread across higher volumes, improving cost absorption and profitability. Second, commercial and operational excellence. This is an ongoing effort to improve performance across all our assets. We continuously work on operational efficiency and better commercial execution to improve margins throughout the organisation. Third, operating leverage. As the business grows, administrative expenses should grow much more slowly than revenue. In fact, our ambition is to significantly limit the growth of administrative costs. We will achieve this through investments in technology, including AI, and by standardizing and harmonizing systems. These initiatives will improve efficiency, speed up processes and make the organization more transparent. Importantly, we will continue investing in R&D and technology even as we control administrative costs. The objective is to improve efficiency without compromising our technological and scientific leadership. 3. Gross margin improvement: Better asset utilization and product mix Let me explain how we intend to improve gross margins. There are two closely linked levers: asset capacity optimization and portfolio mix optimization. A. Asset capacity optimization The objective is twofold: increase the capacity we can extract from each asset and improve the margins generated by that asset. Over the past two years, we have developed multi-year plans for every asset to achieve both objectives. The key initiatives include reducing downtime, removing production bottlenecks and improving cycle times. In simple terms, we want to produce more efficiently, increase output from existing assets and generate better margins without relying solely on fresh capacity additions. These improvements will help us make better use of our existing infrastructure while strengthening overall profitability. B. Optimize the product mix within existing facilities Even when a facility cannot expand its physical capacity, Lonza can improve its profitability by changing how it uses that capacity. It can: 📌Reprice products where justified. 📌Improve manufacturing processes and productivity. 📌Transfer a product to another facility where it can be manufactured more profitably. 📌Use the freed-up capacity for a more attractive product. The key advantage is that margins can improve with limited or no additional capital expenditure. Lonza says a combination of these approaches improved the margin of its former Small Molecules business platform by more than 10 percentage points. Management presents this as evidence that the approach can work across its wider network. 4. Cash generation: profit is not enough Lonza’s CFO makes an important distinction: strong margins do not automatically translate into strong cash flow. The company must actually convert those profits into cash to fund future investments. Management identifies three levers: Improve EBITDA margins: Higher profitability increases the cash generated by the business. Improve capital expenditure efficiency: Build new facilities more cheaply, efficiently and quickly. Lonza says its steady-state CapEx model is around 14–19% of sales. Manage working capital better: Reduce cash tied up in inventory and improve inventory visibility, quality-release timelines and standardisation of raw materials. Lonza is investing in a new SAP S/4HANA system to help improve this process. The broader message is that cash conversion is an active management priority, not something the company assumes will improve automatically as revenue grows.

You don’t need 15-20 stocks to generate meaningful returns. You need 4–6 right stocks across 2–3 powerful themes. At any given time, only a handful of themes drive outsized returns. Identifying those themes and picking the right businesses within them is what truly matters. The rest of your portfolio is primarily there to diversify and manage risk. So, stop obsessing over building a 15-20 stock portfolio. Instead, focus on identifying those 2–3 themes and 4–6 stocks that can genuinely move the needle. Understand them deeply. Track their progress closely. Build conviction and size your positions accordingly. The goal is not to own more stocks. It is to own more of the right stocks, in the right size.

Wolfgang Wienand, CEO of Lonza Group AG at the Analyst/Investor Day "...Let’s start by understanding why the CDMO business is such an attractive industry. The pharmaceutical market offers a rare combination of consistent growth and resilience. Since 2000, the market has continued to grow through pandemics, wars, inflation and other economic challenges. The reason is simple: healthcare is one of the last areas where people are willing to cut spending. As a result, CDMOs operate in a market that has historically grown at a steady rate of around 6–7% annually. Another interesting aspect is how new technologies and treatment modalities evolve. Every time a new modality emerges, there is a tendency to believe that it will replace everything that came before it. For example, when biologics gained prominence, some expected them to replace small-molecule drugs. Later, when CAR-T therapies emerged, there was similar excitement that they could replace existing biologics. But that’s not how the industry works. New modalities generally add to the existing opportunity rather than replace what is already there. They expand the pharmaceutical market and create additional avenues for growth, while established modalities continue to play an important role..."

This December could bring back memories of the ’80s and ’90s, power cuts and water rationing! 😬

EBITDA Margins - FY25 Bachem : ~30% Siegfried : 23.5% Recipharm : 23.9% Axplora : 19-19.5% All four are Eurpean Headquartered! What's the catch? Bachem is a specialised CDMO focused on peptides and oligonucleotides, whereas the others are largely conventional CDMOs. Credits: Nuvama

Between the Lines: Signals from the Concall Room Angel One: "...In September, we delivered our highest ever credit distribution, taking our annualized run rate to ₹3300 crore..." Solara Active Pharma: "...On the strategic review of the ibuprofen business...process is taking time...We estimate that we will be able to close this in 12 weeks..." Sri Lotus Developers: "...we remain confident of delivering FY27 pre-sales in the range of ₹1,800 to ₹2,000 crores, along with revenue and PAT growth of 55 to 60% over FY26 levels...EBITDA and PAT margin expected at 35 to 40% and 25 to 30% respectively..." Heritage Foods: "...Volumes grew 89% in lassi, 56% in buttermilk, 44% in ice cream, 21% in paneer, and 15% in curd during the quarter..." E2E Networks: "...we signed like a nearly ₹1,000 crore deal with like a sovereign AI company for the Blackpool cluster, which lasts up to like June 2029...So this is something that improves the long-term revenue visibility..." Aurum PropTech: "...Housing.com brings to this ecosystem consumer intent at scale with 58 million+ visits every month...We are targeting to make Housing dot com profitable within 12 to 18 months...I repeat, within 12 to 18 months..." Onward Technologies: "...We also increased the number of customers billing $1 million annually from 16 to 18...We now expect revenue growth of 15% to 18% for FY27 and an EBITDA margin in the range of 13.8% to 14.3%..." The South Indian Bank: "...Overall gross NPA reduced by 169 basis points from 2.93% to 1.24% on Y-o-Y basis. Net NPA reduced by 47 basis points from 0.56% to 0.09% on a Y-o-Y basis..."