Latest news with #Dasani
Mint
a day ago
- Business
- Mint
NSE Q1 Results: IPO-bound firm posts 14% YoY rise in profit to ₹2,924 crore, even as revenue dips 11%
NSE Q1 Results: IPO-bound National Stock Exchange (NSE) posted a mixed set of numbers for the first quarter of the fiscal year 2025-26 (Q1 FY6). NSE, the largest derivatives exchange in the world by number of contracts traded, posted a jump in its profit for the quarter ended June 2025 even as its revenue declined. NSE's consolidated net profit in Q1 FY26 stood at ₹ 2924 crore, up 14% year-on-year, as against ₹ 2,567 crore posted in the same period last year. However, its revenue from operations saw an 11% YoY decline to ₹ 4,032 crore from ₹ 4,510 crore in the same period last year, reflecting the impact of softer trading activity and fee compression. A key factor was the drop in F&O transaction charges, which fell to ₹ 1,729 crore from ₹ 2,744 crore a year ago—a 37% decline. Despite this, average daily turnover in the F&O segment rose 39% YoY to ₹ 360 lakh crore, underlining a paradox of high volumes but declining realisations, said Harshal Dasani, Business Head, INVasset PMS. The operating EBITDA stood at ₹ 3,130 crore in the quarter ended June 2025, as against ₹ 3,106 crore in the same period a year ago. Meanwhile, EBITDA margins improved from 69% to 78%. During the first quarter of FY26, NSE contributed a total of ₹ 14,331 crore to the exchequer. This included ₹ 12,338 crore in Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT), ₹ 875 crore in stamp duty, ₹ 265 crore in SEBI fees, ₹ 338 crore in income tax, and ₹ 515 crore in Goods and Services Tax (GST). Meanwhile, in the unlisted market NSE share price has declined 6% in the last one month. According to Unlisted Zone, which deals in the pre-IPO shares of companies, NSE share price has dropped to ₹ 2,175 from ₹ 2,325 in the last one month. However, for the past six months, the stock has been higher by 14%. According to Dasani, NSE's profitability resilience despite revenue contraction signals strong operational leverage and cost control. However, the reliance on derivatives—and SEBI's scrutiny on F&O volumes—makes future earnings visibility sensitive to regulatory shifts, he said. 'As the IPO approaches, this result will likely be viewed favourably by long-term investors who value its scale, duopoly status, and high cash flows, but caution around the sustainability of F&O economics will remain,' Dasani added.
Mint
6 days ago
- Business
- Mint
India-US trade deal: What's holding back the agreement and risks of further delays? Explained
India-US trade deal: The Indian stock market is navigating rough terrain, in contrast to Western markets, particularly the US, which is hitting record highs as progress on trade deals with major partners has eased earlier investor concerns about rising inflation and its potential spillover effects on the world's largest economy. As the US signed trade deals with major economies, with the latest being Japan and the Philippines after inking deals with Indonesia and Vietnam, which are key economies in the Asia region, the discussion with India is still ongoing. Despite multiple rounds of negotiations, an official announcement continues to be delayed. Earlier, the potential deal was expected to be announced before July 09, after the White House and Trump himself stated that an agreement with India would be finalized. However, the White House is reportedly demanding greater access for agriculture, dairy, and genetically modified (GM) products, which is delaying the signing of the deal, a demand New Delhi is reportedly denying in order to protect farmers. In addition, India is seeking tariff rates lower than those granted to other Asian nations that have already signed deals with the US, in a bid to gain a competitive edge. Meanwhile, the delay in concluding the deal is also dampening sentiment in the Indian stock market, with investors awaiting full clarity before the next leg of the rally, resulting in frontline indices trading in a tight range for most of July. According to Harshal Dasani, Business Head at INVasset, markets are currently grappling with three simultaneous overhangs—uncertain US trade policy, relentless FII selling, and uninspiring Q1 earnings. While the US recently signed a trade deal with the Philippines, talks with India remain stuck. Dasani highlights Washington's dual stance: on one hand, it's pursuing selective trade alignments; on the other, it's threatening up to 500% tariffs on countries trading with Russia. This, he explains, puts India in a complex position, facing scrutiny for importing discounted Russian oil while still being courted for strategic cooperation. "But Washington cannot afford to alienate both India and China. The longer it delays a decisive stance, the closer India, China, and Russia move, which could be a geopolitical nightmare for the US. Meanwhile, markets dislike ambiguity. Investors are pricing in volatility not because of bad news, but due to the absence of clear direction," said Dasani. Dasani further adds that a tariff hike below 20% on Indian goods might even be digested positively by the markets, while anything higher could trigger a knee-jerk reaction. The Street is well aware the US cannot sustain such elevated tariffs without inviting domestic backlash or triggering inflationary pressure. He also points out that FIIs have already pulled out over ₹ 22,185 crore in July alone, a move driven largely by a strengthening dollar and elevated US bond yields, adding to the pressure on Indian equities. Q1 earnings, he says, have been mixed, with autos and banks under pressure while healthcare and capital goods have shown resilience. In this environment, positioning in domestic, policy-linked themes like defense, railways, and power, along with selective accumulation in small caps, remains the best course. Clarity—not comfort—will drive the next leg, he stated. Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings, said, "The delay in finalising a US-India trade deal underscores the complexity of balancing economic pragmatism with domestic sensitivities. For India, agriculture and dairy aren't just trade sectors; they are the backbone of rural livelihoods, impacting over 700 million people." Meanwhile, the US is pushing hard for access to India's high-tariff markets, especially in the agri- and digital sectors, while raising tariffs on Indian steel, aluminum, and auto exports. Unlike recent US trade partners like the UK or Vietnam, Sankhanath pointed out that India is not willing to concede on politically critical sectors and is instead negotiating from a position of strategic autonomy. However, he cautioned that prolonged delays in concluding the deal could carry risks, which include lost export competitiveness, retaliatory tariffs, and a dent in the broader U.S.-India strategic alignment, including tech and defense cooperation. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Mint
6 days ago
- Business
- Mint
IEX share price crashes 15%, hits lower price band. What's behind the fall?
IEX share price: The stock of Indian Energy Exchange (IEX) tumbled as much as 23% on Thursday, July 24, after the country's power regulator, Central Electricity Regulatory Commission (CERC), announced that it would roll out market coupling from next year onwards. IEX stock also remains in focus ahead of the announcement of its Q1 results today. IEX share price first hit the 10% lower price band of ₹ 169.10 on the BSE. But it soon extended losses and tanked 23% to ₹ 144.65. CERC, in an order late last evening, said it would implement the coupling of the day-ahead market (DAM) of the power exchanges in a round-robin mode by January 2026. Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges. The regulator's move is aimed at improving price discovery and system efficiency. CERC further added that given the shorter time for bid submission and running the market clearing engine, the decision to implement the coupling of real-time market (RTM) of the power exchanges shall be considered at a later stage, after gaining operational experience from the coupling of DAM. Stating its rationale behind the order, CERC said it would lead to uniform price discovery, better use of transmission lines and maximise overall benefit. Following this announcement, the IEX share price tanked to its lower price band as investors are fearful that the said move will hurt its market dominance. 'The move is a regulatory game-changer—it transfers price discovery from individual exchanges to a central clearing mechanism managed by the Grid Controller of India. This undermines IEX's historical dominance in setting spot electricity prices,' said Harshal Dasani, Business Head, INVasset PMS. Currently, IEX commands over 90% market share in DAM and RTM, both of which contribute significantly to its revenue. In FY24, DAM volumes alone were over 73 billion units, while RTM saw a 19% YoY growth. 'But with centralised price determination, the very role that made IEX indispensable—competitive price discovery—stands diluted. That means less trading advantage, lower transaction margins, and shrinking moats,' Dasani added. With the core business model under pressure and limited clarity on long-term profitability, markets have rightly reacted. For IEX, the days of monopoly-like pricing power may now be history, he said. Brokerage Bernstein cut its target price on IEX stock to ₹ 122 from ₹ 160, according to a media report. Analysts at the brokerage believe the impact will be felt on market share and, more importantly, on transaction charges, which would come down due to competitive intensity. With the moat of liquidity gone, now the only way for IEX to compete is through transaction charges, the brokerage believes.
Mint
15-07-2025
- Automotive
- Mint
Ola Electric share price extends rally, zooms 22% in two days despite ₹428 crore loss in Q1. What's behind the surge?
Ola Electric shares extended their winning streak to the second straight session on Tuesday, July 15, even as the company reported a net loss of ₹ 428 crore in the first quarter of the financial year 2025-26 (Q1FY26). However, the loss narrowed sequentially, which cheered stock market investors. Apart from this, many operating performance updates — improvement in margins to the auto segment, turning EBITDA positive in June —appeared to be driving the interest in the two-wheeler electric company's stock. Ola Electric shares, which are down almost 69% from their 52-week high levels, witnessed a spurt in buying interest as investors cheered the improvement in Q1FY26 performance over Q4FY25. The loss narrowed from ₹ 870 crore posted in the preceding quarter, even as it widened on a YoY basis. The consolidated revenue from operations stood at ₹ 828 crore during the June quarter, higher than ₹ 611 crore in the March quarter. 'What sparked investor interest was the sequential improvement—losses narrowed significantly from ₹ 870 crore in Q4 FY25—and the operational turnaround in the automotive segment. Notably, the unit achieved positive EBITDA in June and delivered a record gross margin of 25.6%, driven by vertical integration, disciplined cost control under Project 'Lakshya,' and the shift to more efficient Gen‑3 models,' said Harshal Dasani, Business Head, INVasset PMS. 'Market confidence was further bolstered by Ola's guidance for FY26, with projected gross margins of 35–40%, supported by PLI-linked incentives and a target of becoming EBITDA-positive from Q2 onward. The company also introduced rare-earth-free motors, addressing long-term supply chain concerns and adding credibility to its localisation roadmap," Dasani added. Ola expects to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of ₹ 4200 - ₹ 4700 crore in FY26. With Production Linked Incentive (PLI) benefits beginning from Q2 for the Gen 3 product portfolio, gross margin is projected to rise to 35% - 40%, and the company anticipates full-year auto EBITDA of above 5%, the company said in a release post Q1 results. While the headline loss paints a grim picture, the underlying operational metrics indicate a company steadily regaining control and positioning itself for sustainable profitability, he said, adding that this is a classic case of the market rewarding execution clarity over immediate bottom-line performance. Ola Electric share price settled over 18% higher on the BSE following its Q1 results announcement earlier in the day. In intraday today, Ola Electric share price jumped almost 4% to ₹ 48.88, taking the two-day gains to 22%. Global brokerage Goldman Sachs maintained a 'Buy' rating on Ola Electric stock and raised the target price to ₹ 63 from ₹ 60 earlier. HSBC also raised its target for Ola Electric share price to ₹ 49 while maintaining a 'Hold' rating. After multiple misses, punchy gross margin expansion in 1Q was a positive surprise, said HSBC. Yet it remains concerned that the cell business might not be eligible for the PLI benefit, weighing down the company's longer-term margin. However, Kotak Institutional Equities (KIE) retained its 'Sell' rating on Ola Electric stock. "While the company has improved its profitability significantly, volume offtake remains below expectations given muted industry growth and increased competitive intensity, which remains an area of concern. Maintain SELL with an unchanged FV of ₹ 30 based on DCF methodology (3.5X FY2027E EV/sales)," it said.
Time of India
04-07-2025
- Business
- Time of India
Ola, Paytm, Swiggy tumble up to 50% in 2025: Are your loss-making tech bets still worth it?
In the first half of 2025, Indian new-age tech stocks experienced a performance divergence. Ola Electric, Swiggy, and Paytm declined due to execution concerns and cash burn, while Nykaa and PB Fintech surged on profitability improvements. Investors are now prioritizing earnings and sustainable models over growth potential, marking a recalibration in market expectations. Tired of too many ads? Remove Ads Profits rewarded, promises punished Tired of too many ads? Remove Ads Market re-rates fundamentals Tired of too many ads? Remove Ads Turning point or temporary shakeout? What's next? India's new-age tech stocks saw a sharp divergence in performance in the first half of 2025, as investors recalibrated their expectations and began pricing in execution risk, capital discipline, and earnings visibility. Shares of Ola Electric crashed nearly 50%, Swiggy fell 26%, and Paytm declined 9%, as execution concerns and cash burn drove investors away. In sharp contrast, Nykaa surged 27.4% and PB Fintech rose 14.4% on improving profitability and margin investors now rewarding earnings over ambition, the question is whether India's digital darlings are finally being judged by fundamentals, and if that marks a permanent reset in how the market prices tech-led growth.'The sharp correction in new-age tech stocks is a much-needed recalibration rather than a collapse,' said Harshal Dasani, Business Head at INVasset. 'Investors are no longer paying for GMV or user growth—they're paying for execution, profitability, and clarity.' According to Dasani, EV/sales multiples across the board have compressed from 15–18× at IPO to 6–9× now. 'It's no longer about buying into the idea—it's about backing sustainable models.'Gains in Nykaa and PB Fintech have been anchored in visible improvements in profitability. Nykaa reported a Rs 335 crore profit in Q1 FY25 with 46% year-on-year revenue growth, while PB Fintech turned profitable with Rs 353 crore in FY25. 'Nykaa and PB Fintech have stood out due to clear delivery,' said Dasani. 'Markets have drawn a clear line: they're rewarding those showing proof of profitability, not potential alone.'Gaurav Garg of Lemonn Markets said, 'In H1 2025 investors rewarded companies that are already profitable or have a visible, near-term path to profitability… while marking down businesses that still burn cash or have execution mis-steps.' The market, Garg noted, is no longer paying for 'growth at any cost.'Meanwhile, weaker names bore the brunt of the correction. Ola Electric lost 49.7% in the first half of 2025, with sales falling sharply and losses widening. Ola's revenue fell 59% YoY in Q4 FY25 and quarterly loss doubled to Rs 870 crore. Meanwhile, monthly registrations sank 45% YoY in June and market share tumbled. Despite earlier trading at over 40× FY24 sales, the company now trades closer to 4.9× FY25 sales. Garg said that 'unless deliveries rebound and the 4680-cell project shows tangible cost savings, the stock is likely to remain under pressure.'Swiggy, which dropped 26% in H1, posted a Rs 3,117 crore consolidated loss for FY25, weighed down by Instamart. 'Instamart's losses expectedly increased on account of new store scale-up and high customer acquisition,' said Amarjeet Maurya, Deputy VP–Fundamental Research at Kotak Securities. Despite this, Kotak retains a 'buy' rating with a target price of Rs 280 for the slipped 9% in H1. Although its Q4 EBITDA-before-ESOP turned positive at Rs 81 crore, user metrics dipped and regulatory uncertainty remained. 'Paytm remains in transition,' said Dasani. 'The key is to watch execution trends, not just brand recall.'Zomato's parent, Eternal, fell 5% as growth slowed in its food delivery business, though Blinkit posted strong revenue momentum. 'Blinkit remains best positioned to capitalize on rising quick commerce penetration,' said Maurya, who has a Rs 280 target price and 'buy' rating on the stock.'The sentiment has shifted from exuberance to evaluation. Investors have matured, and so have expectations,' said Dasani. 'This change sets the stage for real wealth creation as capital flows to companies delivering fundamentals, not just narratives.'Post-IPO multiples have reset, said Garg. 'Most names listed on rich revenue multiples (15–35× sales). As the first lock-ins expired, early investors sold aggressively, exposing the mismatch between story and earnings power.' The median FY25 EV/sales for the cohort has dropped from 18× at listing to about 6–8 conditions have accelerated the correction. 'Rising real rates lifted discount rates, compressing long-duration tech valuations worldwide,' Garg said. Domestically, startup funding fell 25% year-on-year in H1 2025, curbing risk said, 'high-burn models like Swiggy's Instamart show the cracks—reporting a –5.6% EBITDA margin despite scale.' In fintech, 'Paytm's Payments Bank restrictions prove that compliance is now as crucial as innovation.'Investors are becoming selective. 'Stock picking is essential in this space,' said Dasani. 'PB Fintech and Nykaa… are showing strong metrics and execution—making them worthy of accumulation on dips.' However, Kotak has a more cautious view on Nykaa, maintaining a 'reduce' rating with a target price of Rs 185, citing stretched valuations and margin pressures in outlined differentiated positioning across the sector. PB Fintech is seen as 'premium but justified,' Nykaa as 'fair at 4–5× sales,' while Zomato requires 'wait & watch until Blinkit turns EBITDA positive.' Swiggy and Ola Electric, Garg said, should be avoided until core units turn profitable. 'Execution and cash-flow risk [is] high.'Analysts see the second half of 2025 as a crucial phase that will separate sustainable operators from speculative bets. 'The second half of 2025 will likely reward those with momentum backed by margin expansion,' said Dasani. Garg added that Nykaa and PB Fintech 'could re-rate further' if fashion and credit businesses continue to for laggards, the bar is rising. 'Unless Ola Electric demonstrates a sharp volume turnaround and Swiggy reins in Instamart losses, their shares are unlikely to reclaim IPO highs in H2,' Garg said.'The market has pivoted from paying for potential to rewarding proof,' he said. 'Investors should emphasise cash-flow visibility, disciplined capital allocation and regulatory resilience when sizing positions in India's new-age tech champions.': Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
