OMKARA CAPITAL - DAILY NEWSLETTER 11th August 2026

MARKETS GUP-SHUP

Markets have largely stopped reacting to negative news while we await any concrete development between the US and Iran. Even with crude rising - including a 5% move last night - US markets have not reacted as they would have earlier. Indian markets, too, have remained resilient despite negative comments from either President Trump or Iran. For now, war-related news appears to be getting absorbed.

On the positive side, FIIs have started investing in India again, buying around Rs 2,000 crore of equities in the cash market yesterday. There was also positive news from the Adani Group, with a US judge dismissing the criminal case against Gautam Adani and his nephew.

I have been highlighting the possibility of a fundraising and block-deal tsunami in a happy, bullish market. This week, five IPOs worth Rs 7,479 crore are opening. Block deals are also rising across institutions, HNIs, microcaps and SMEs, with new names appearing every day. It is good to see this risk appetite, but risk management cannot be ignored. We should back structural leaders where the opportunity is visible - not narratives or insane valuations.

Today, SKF India, Viyash, Skipper and Gokex report earnings. Tomorrow, Sansera, Tata Motors, Sudarshan Chemical and Eureka Forbes report.

EARNINGS SNAPSHOT

Lloyds Metals was the standout result, with record standalone revenue, EBITDA and PAT, driven by pellet-plant ramp-up, higher value-added-product mix and sharp operating leverage. Gland Pharma delivered a very strong CDMO- and US-led beat, while KSH International, Fusion Finance, Yatharth Hospitals, Ind-Swift and Amara Raja reported healthy operating progress. Bharat Forge was broadly in line operationally, although a restructuring provision resulted in a reported loss.

On the weak side, KEC International missed on margins despite a strong order pipeline. IdeaForge was affected by supply-chain disruption and adverse mix, while Astra Microwave saw weak execution and a sharp fall in export mix.

🟢 GREEN | STRONG EARNINGS

1. KSH INTERNATIONAL: Strong volume growth and realisation improvement; HVDC opportunity adds growth visibility

KSH reported a strong operating quarter, with revenue rising 108% YoY and 14% QoQ to Rs 116 crore on volume growth of 30% to 7,969 MT. EBITDA per tonne improved to Rs 93,325 from Rs 65,885. The Phase-2 Supa expansion of 15,600 MT is due in Q2FY27 and will take total capacity to 59,045 MT by Q4FY27; the upcast backward-integration facility was commissioned in Q1. The company has received its first HVDC transformer-wire awards as India’s only approved supplier and signed a five-year framework agreement with a large global transformer OEM. Debt-equity improved to 0.57x from 1.18x YoY.

2. GLAND PHARMA: Strong CDMO and US momentum drive a beat; medium-term growth outlook improves

Gland Pharma reported revenue of Rs 1,800 crore, up 20% YoY and around 5% above estimates, with CDMO revenue up 20% to Rs 892 crore and US sales up 32% to Rs 981 crore. EBITDA increased 33-34% to Rs 489-493 crore, around 11% ahead of estimates, while margin expanded 280 bps to 27.2%; PAT grew 47% to Rs 317 crore. Management retained 15% constant-currency FY27 growth guidance and raised the four-year revenue CAGR target to around 20%. FY27 capex is guided at Rs 550 crore, though the USD 90-100 million CDMO MSA has been pushed out to CY2030.

3. FUSION FINANCE: Profitability recovery continues as AUM growth, NIM and asset quality improve: 7th quarter of sequential moderation in credit cost

Fusion Finance reported a strong recovery, with PAT of Rs 62 crore versus a loss of Rs 92 crore in Q1FY26. PPOP grew 17% YoY and 10% QoQ, NIM expanded 49 bps QoQ to 11.93% and GNPA declined 70 bps QoQ to 2.51%. AUM returned to growth, rising 4% QoQ to Rs 7,702 crore after six months of contraction. Management targets FY27 AUM of Rs 10,000 crore and year-end ROA of 4%, supported by loan repricing and a lower liquidity buffer. The key risk remains credit-cost guidance, which has declined materially without complete reconciliation.

4. LLOYDS METALS & ENERGY: Record earnings, pellet ramp-up and value-added mix drive a major beat

Lloyds Metals delivered a major beat, with standalone PAT rising 141% YoY and 43% QoQ to Rs 1,527 crore, while EBITDA grew 172% YoY to Rs 2,120 crore. EBITDA margin expanded 631 bps QoQ to 39.2%, with the pellet plant reaching 100% utilisation within four months and value-added products contributing 40% of standalone revenue and EBIT, versus 13% and 2% respectively a year ago. Management increased FY27 iron-ore guidance to 26 MnT and expects logistics and energy initiatives to generate over Rs 2,000 crore of annual savings as they mature. The slurry pipeline is expected to materially reduce freight costs.

5. YATHARTH HOSPITALS: Strong core growth and new-hospital ramp-up; aggressive capacity expansion continues

Yatharth reported revenue growth of 51.5% YoY and 14.9% QoQ to Rs 393 crore, with new hospitals contributing Rs 107 crore, or 27% of revenue. Existing hospitals grew 22% YoY, validating the underlying core-business strength. Adjusted EBITDA margin was strong at 28.1%, though reported margin declined to 23.3% due to the ramp-up of Model Town and Faridabad Sector-20. PAT rose 8% to Rs 45 crore, weighed down by higher depreciation and interest. The company is targeting 5,000-plus beds over three years, supported by a Rs 400 crore Gurugram expansion and brownfield additions in Noida Extension and Greater Noida.

6. IND-SWIFT LABORATORIES: Strong operating leverage drives a sharp profitability turnaround

Ind-Swift reported sales growth of 24.8% YoY and 12.4% QoQ to Rs 191 crore. EBITDA increased 725% YoY and 57.1% QoQ to Rs 33 crore, with margin expanding to 17.3% from 2.6% YoY and 12.4% QoQ. PAT rose 177.8% YoY and 66.7% QoQ to Rs 25 crore. The strong margin expansion indicates a sharp improvement in operating leverage. No investor presentation or concall details were available.

🟡 AMBER | IN-LINE EARNINGS

7. BHARAT FORGE: Operating performance below expectations; restructuring provision drives reported loss

Bharat Forge reported consolidated EBITDA of Rs 709 crore, up 5% YoY but down 9% QoQ and 8-11% below estimates. EBITDA margin contracted 190 bps QoQ to 15.3%. A Rs 358 crore CDP restructuring provision resulted in a reported PAT loss of Rs 90 crore. Management reduced India revenue-growth guidance to 20-25% YoY from around 25%, but expects Q2 to improve sequentially with gradual margin recovery. Defence momentum remains healthy, with the order book at Rs 11,200 crore and the largest-ever naval order received in Q1. The company also announced Rs 1,800 crore of organic India capex and a proposed fundraise of up to Rs 2,500 crore.

8. AMARA RAJA ENERGY & MOBILITY: Healthy growth, but raw-material and strategic costs pressure margins

Amara Raja reported an in-line quarter, with revenue growing 23.9% YoY to Rs 4,215 crore and adjusted PAT rising 15.9% YoY and 43.4% QoQ to Rs 191 crore. EBITDA margin declined 106 bps YoY to 9.6%, affected by elevated raw-material costs, higher brand spending for Amaron Assist and strategic-initiative expenses. Export contribution declined to 7% of sales from 11% YoY due to geopolitical headwinds. The Giga Corridor capex plan stands at Rs 9,500 crore, with the 10 GWh BESS facility targeted for Q3FY27 commissioning and the 2 GWh NMC cell plant planned for Q2CY27.

🔴 RED | WEAK EARNINGS

9. KEC INTERNATIONAL: Revenue stays flat and margin miss offsets a robust order pipeline

KEC reported revenue of Rs 5,024 crore, broadly flat YoY, while EBITDA margin declined 120 bps YoY to 5.8% against the 7% expected. PAT fell 42% YoY to Rs 73 crore and missed estimates by 43%, as erection charges and other expenses weighed on EPC profitability. The order book plus L1 pipeline remains robust at over Rs 40,000 crore, while management retained FY27 revenue-growth guidance of 12-15% plus and order-inflow guidance of Rs 30,000 crore plus. Key monitorables are margin recovery, Middle East-related collections and working-capital control; net working-capital days remained elevated at 134.

10. IDEAFORGE TECHNOLOGY: Supply-chain disruption and adverse mix cause a sharp sequential slowdown

IdeaForge reported revenue of Rs 69 crore, up 437% YoY on a low base but down 51% QoQ. EBITDA margin collapsed to 3-6% from 44-53% QoQ, while PAT was a loss of Rs 3 crore. The Middle East conflict disrupted supply chains, while an adverse mix of 60% Defence and 40% Civil affected profitability. Management is targeting execution of the Rs 257 crore opening order book by Q3FY27. ZOLT has entered series production for open MoD orders, and the Rs 500 crore QIP supports the next growth phase, but execution remains the key near-term monitorable.

11. ASTRA MICROWAVE: Weak execution and lower export mix drive a sharp revenue and margin decline

Astra Microwave reported revenue of Rs 177 crore, down 11.5% YoY and 64% QoQ. EBITDA margin fell to 18.7% from 33.3% in Q4FY26, while PAT declined 24% YoY to Rs 12 crore. Export contribution dropped sharply to 5% of revenue from 17% in Q4FY26, affecting the execution mix; the order book remained broadly stable at Rs 2,156 crore. Management continues to target 15-20% revenue growth over three to five years through a higher complex-systems mix. The board has approved, in principle, the demerger of the Space, Meteorology and Hydrology businesses, with the structure and ratio pending.

Warm regards,
Omkara Capital Private Limited
www.omkaracapital.in

Disclaimer: This newsletter is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.