OMKARA CAPITAL - DAILY NEWSLETTER 13th August 2026
Sansera was the standout result
MARKETS GUP-SHUP
The war is still going on, but since June we may have seen fundraising of nearly Rs 2 lakh crore through block deals, QIPs and IPOs. We are still waiting for the big ones—Reliance Jio, National Stock Exchange, Zepto and Hero FinCorp, to name a few.
The latest mega deal is between Jio and Bank of America: a USD 2 billion transaction for an NBFC that reported PAT of Rs 96 crore in the last quarter. Jio Credit has built a loan book of Rs 30,667 crore, or around USD 3.2 billion, as of 30 June 2026—within just two years of starting operations.
The bigger question is why institutions are investing such huge amounts when the news flow remains bleak and there is no final resolution to geopolitical tensions. The answer is simple: smart money is not betting for the next few weeks, but for the next few years. FII selling has moderated and they are slowly turning buyers. In my view, the war is already economically discounted; what remains is ego and political posturing.
I have been saying that investors will make more money than traders in the bull market ahead. Nifty will hit 30,000—whether it takes two years or three, God knows—but the market has clearly turned. It is not easy to remain an investor amid noise and news. Patience, risk management and deep research will create wealth going ahead.
Sansera can be a Rs 10,000 stock over the next 3-4 years. The investor who can endure volatility will make wealth.
EARNINGS SNAPSHOT
Sansera was the standout result, with record revenue, clean operating profitability and a sharply scaling ADS business; non-auto has already reached its long-term mix target. Tata Motors CV delivered a PAT beat on 26% volume growth, although mix and commodity costs kept margins in check. Bliss GVS reported a blowout quarter, while Apollo Hospitals, Lenskart and Grasim delivered strong beats driven by operating leverage, occupancy, international profitability and Birla Opus momentum.
Caplin Point, KRN Heat Exchanger, VA Tech Wabag, SKF India and NGL Fine-Chem also reported healthy performance.
Sudarshan Chemical delivered its best margin in five quarters, although Rieco remains a drag; Eureka Forbes grew strongly, but commodity inflation and higher A&P spend affected margins. AIA Engineering was weak, with adverse mix and sharply higher freight costs leading to a margin miss and guidance cut.
🟢 GREEN | STRONG EARNINGS
- SANSERA ENGINEERING: Record quarter; ADS and non-auto drive a clean operational beat
M-cap: Rs 24,202 crore | CMP: Rs 3,878 | 52-week range: Rs 1,241-3,938 | P/E: 69.4x
Sansera reported record revenue growth of 33.3% YoY, operating EBITDA margin of 19.2% and underlying margin of around 20.4%. Normalised PAT was around Rs 100 crore, up 59% YoY. Reported PAT included a one-off US settlement.
ADS—the growth engine: ADS reported a record quarter, with revenue up 3.7x YoY and share of sales at a fresh high. FY27 revenue guidance is Rs 550-600 crore versus Rs 336 crore in FY26, while Q1 is already running at that quarterly pace. The backlog is executable over five years, while semiconductor mass-production ramp-up in H2FY27 could provide a further upside leg. A dedicated Executive Director and CEO has been appointed for the ADS division for five years, signalling strategic priority. ADS operates at an incremental asset turn of 2.0-2.2x versus 1.25-1.3x for auto, making the growth capital-efficient.
Non-auto and guidance: Non-auto delivered its highest-ever quarterly sales, up 129.9% YoY, with contribution reaching the company’s 20.8% long-term target. Off-road revenue grew 50.1% YoY. Management guides for high-teen FY27 topline growth, with continued focus on margin improvement.
- TATA MOTORS—CV STANDALONE: PAT beat on strong volumes; Q2 outlook remains positive
M-cap: Rs 1,68,318 crore | CMP: Rs 457 | 52-week range: Rs 306-509 | P/E: 25.2x
Tata Motors CV reported standalone revenue of Rs 19,329 crore, up 23% YoY. EBITDA margin was 11.7%, down 60 bps YoY but in line with estimates, affected by lower MHCV mix at 36% versus 44% in Q4 and commodity pressure. Adjusted PAT grew 15% YoY to Rs 1,630 crore. Consolidated EBITDA increased 58% YoY to Rs 3,272 crore and adjusted PAT rose 88% YoY to Rs 2,639 crore, aided by a Rs 1,135 crore fair-value gain. Volume growth of 26% YoY to 108.7K units and guidance for double-digit domestic CV growth in Q2 keep the overall print positive.
Concall: Q2 should benefit from deliveries of around 4,500 government/STU EV passenger orders and full pass-through of the 2.5% July price hike. The Indonesia order of 70,000 units for FY27-FY28 is ramping, with around 2,000 units delivered in Q1. Steel, aluminium and copper were a 340-bps standalone EBIT headwind. Iveco regulatory approval, with one clearance pending, has slipped to end-August 2026.
- BLISS GVS PHARMA: Blowout quarter as operating leverage drives sharp margin expansion
M-cap: Rs 5,203 crore | CMP: Rs 490 | 52-week range: Rs 118-553 | P/E: 44.9x
Bliss GVS delivered a blowout quarter across all metrics. Revenue increased 37.6% YoY and 11.1% QoQ, while gross margin expanded 405 bps QoQ and 422 bps YoY to 59.9%. Core EBITDA rose 71% QoQ and 85% YoY on operating leverage. Core PAT increased 83% QoQ and 141% YoY, ahead of reported PAT growth of 40% QoQ and 141% YoY, as Q1FY26 included Rs 35 crore of exceptional one-off gains.
- APOLLO HOSPITALS: Occupancy-led operating leverage drives a strong beat
M-cap: Rs 1,23,612 crore | CMP: Rs 8,597 | 52-week range: Rs 6,680-9,327 | P/E: 78.2x
Apollo Hospitals reported a strong set of results, with consolidated revenue growing 6.63% QoQ and 20.56% YoY, led by Healthcare Services growth of 22% YoY and Apollo HealthCo growth of 20% YoY. Occupancy increased to 70% from 65% in Q1FY26 across 8,352 operating beds, supporting operating leverage. Consolidated PAT rose 33.95% YoY and 9.64% QoQ.
Consolidated PAT stood at Rs 580 crore, up 34% YoY and 10% QoQ, while EBITDA grew 28% YoY to Rs 1,092 crore and EBITDA margin expanded 93 bps YoY to 15.5%. Apollo HealthCo PAT grew 77% YoY.
Guidance: HealthCo’s composite New Co targets an annualised revenue run rate of Rs 2,50,000 crore by Q4FY27, with EBITDA margin of around 6.5-7%, versus the current level of around 5.7%. New Co listing is expected in Q4FY27, subject to approvals.
- LENSKART SOLUTIONS: International profitability and store expansion drive a major beat
M-cap: Rs 1,01,967 crore | CMP: Rs 586 | 52-week range: Rs 356-596 | P/E: 194x
Lenskart reported a strong beat, with revenue rising 43.3% YoY to Rs 2,714 crore, EBITDA increasing 75.1% YoY to Rs 588 crore and adjusted PAT growing 214.8% YoY to Rs 222 crore, around 20% above Emkay estimates. EBITDA margin expanded 394 bps YoY to 21.7%.
The international segment turned decisively profitable, with EBIT margin improving 816 bps YoY to 8.6%. The company added 132 new stores and reported SSSG of 18.3%.
Guidance: Management expects India EBITDA margin, at 15.4% in Q1, and international EBITDA margin, at 10.6%, to improve YoY. Long-term steady-state consolidated margin guidance of around 25% was reiterated.
- GRASIM INDUSTRIES: Standalone beat and Birla Opus momentum drive all-time-high consolidated EBITDA
M-cap: Rs 2,25,108 crore | CMP: Rs 3,308 | 52-week range: Rs 2,502-3,412 | P/E: 267x
Grasim reported a strong beat, with standalone EBITDA of Rs 950 crore, up 107% YoY and 66% QoQ, around 20% above estimates. Standalone operating margin expanded 390 bps YoY to 8.1%, versus estimates of 6.6%. Standalone PAT was Rs 250 crore, versus a loss of Rs 120 crore in Q1FY26.
Birla Opus revenue increased 64% YoY and 17% QoQ to Rs 1,660 crore, with market share gaining around 30 bps QoQ. Consolidated EBITDA reached an all-time high of Rs 8,077 crore, up 26% YoY.
Guidance: Birla Opus targets FY27 revenue growth of more than 50% YoY and Rs 10,000 crore revenue by FY28. Birla Pivot is targeted to reach EBITDA breakeven by FY27 exit, while chlorine integration is expected to reach around 68% by FY27 exit. No formal consolidated EBITDA-margin guidance was reiterated.
- CAPLIN POINT LABORATORIES: Steady beat, although injectable-ramp visibility is pushed out
M-cap: Rs 18,793 crore | CMP: Rs 2,472 | 52-week range: Rs 1,500-2,700 | P/E: 44.8x
Caplin Point reported a steady beat, with revenue growing 20% YoY to Rs 610 crore, EBITDA rising 23% to Rs 247 crore and PAT increasing 19% to Rs 179 crore. EBITDA margin expanded 70 bps YoY to 38.4%. The US segment grew 26% YoY to Rs 137 crore.
Concall: Injectable-line ramp guidance has been reduced from 14-15 lines within two years, as guided in February 2026, to 13 lines with visibility. The final 3-4 lines have been deferred to 2029 and beyond, with no reconciliation or trigger provided. Free cash reserves stood at Rs 1,502 crore and receivables were at 128 days as of 30 June 2026.
- KRN HEAT EXCHANGER & REFRIGERATION: Strong growth and margin expansion, but valuation remains expensive
M-cap: Rs 8,718 crore | CMP: Rs 1,332 | 52-week range: Rs 590-1,405 | P/E: 117x
KRN reported sales of Rs 252 crore, up 119.1% YoY and 40.8% QoQ. EBITDA rose 172.2% YoY and 44.1% QoQ to Rs 49 crore, with margin expanding 379 bps YoY and 45 bps QoQ to 19.44%. PAT increased 175% YoY and 43.5% QoQ to Rs 33 crore. Results were good, but the stock remains very expensive.
- VA TECH WABAG: Solid all-round beat; Kuwait win and order book strengthen growth visibility
M-cap: Rs 11,882 crore | CMP: Rs 1,904 | 52-week range: Rs 1,033-2,254 | P/E: 33.4x
VA Tech Wabag delivered a solid beat across all lines. Consolidated revenue grew 20.8% YoY to Rs 887 crore and PAT increased 36.9% YoY to Rs 90 crore. EBITDA margin was 13.1%, up 10 bps YoY. Order book surged 33% YoY to Rs 19,394 crore, supported by Q1 order inflow of Rs 3,431 crore, including the first-ever Kuwait SWRO mega-desalination win. The company remained net-cash positive for the 14th consecutive quarter, with net cash of Rs 965 crore.
Guidance: Medium-term targets were reiterated: revenue CAGR of 15-20%, EBITDA margin of 13-15%, order book above 4x revenue and RoCE above 20% over the next 3-5 years.
- SKF INDIA: EBITDA beat led by sharp sequential margin recovery
M-cap: Rs 7,552 crore | CMP: Rs 1,528 | 52-week range: Rs 1,404-2,396 | P/E: 50.8x
SKF India reported revenue of Rs 587.8 crore, broadly in line and down 1.1% QoQ from Rs 594.5 crore. EBITDA stood at Rs 88 crore, up 169% QoQ and 19% YoY, with margin recovering sharply to 15% from 5.5% QoQ. The improvement was driven by gross-margin expansion of 645 bps QoQ to 51% and an approximately 300-bps reduction in other expenses.
PAT recovered to Rs 62 crore from a loss of Rs 20 crore QoQ. The 48% YoY decline in PAT reflects an abnormally high prior-year base rather than operational weakness.
- NGL FINE-CHEM: Strong YoY earnings growth and sharp margin expansion
M-cap: Rs 2,107 crore | CMP: Rs 3,409 | 52-week range: Rs 1,261-3,602 | P/E: 41.8x
NGL Fine-Chem reported sales of Rs 139 crore, up 33.7% YoY and down 6.7% QoQ. EBITDA rose 109.1% YoY and 9.5% QoQ to Rs 23 crore, with margin expanding 597 bps YoY and 246 bps QoQ to 16.55%. PAT increased 100% YoY and 38.5% QoQ to Rs 18 crore.
🟡 AMBER | IN-LINE EARNINGS
- SUDARSHAN CHEMICAL: Pigment mix drives a five-quarter-high margin, but Rieco remains a drag
M-cap: Rs 8,317 crore | CMP: Rs 1,045 | 52-week range: Rs 726-1,604 | P/E: 28.3x
Sudarshan Chemical reported its best consolidated EBITDA margin in the trailing five quarters at 9.8%, up 212 bps YoY and 164 bps QoQ. The improvement was driven almost entirely by pigment gross-margin recovery of 243 bps YoY, while the Others segment, including Rieco, remains weak.
Pigments EBITDA rose 40% YoY and 20% QoQ to Rs 268.8 crore, with segment margin at 10.3%, up 250 bps YoY. The core franchise is re-rating on cost and mix rather than volumes, as pigment revenue grew only 6% YoY.
Consolidated sales were Rs 2,642 crore, up 5.4% YoY and down 5.3% QoQ. EBITDA rose 34.9% YoY and 14.1% QoQ to Rs 259 crore, with margin at 9.8%, up 214 bps YoY and 166 bps QoQ. PAT increased 87.3% YoY and 25.6% QoQ to Rs 103 crore.
- EUREKA FORBES: Highest growth in 13 quarters, but commodity inflation weighs on margins
M-cap: Rs 8,869 crore | CMP: Rs 459 | 52-week range: Rs 355-668 | P/E: 44.4x
Eureka Forbes reported an in-line quarter, with revenue rising 15.3% YoY to Rs 701 crore—the highest growth in 13 quarters. Adjusted EBITDA margin declined 46 bps YoY and 264 bps QoQ to 10.5%, affected by commodity inflation and higher A&P spending. Adjusted PAT, before exceptional items, rose 6.1% YoY to Rs 41 crore. Reported PAT was Rs 55 crore, aided by a one-time Rs 20 crore gratuity reversal.
Concall: Water-purifier revenue grew in the high teens YoY, supported by double-digit volume growth and pricing, with the economy segment and stainless-steel range leading. Commodity inflation, currency depreciation and more than 15% YoY growth in A&P spending—primarily to strengthen in-store modern-retail presence—affected adjusted EBITDA margin.
🔴 RED | WEAK EARNINGS
- AIA ENGINEERING: Adverse mix and freight inflation drive a margin miss and guidance cut
M-cap: Rs 42,209 crore | CMP: Rs 4,523 | 52-week range: Rs 3,001-5,180 | P/E: 32.6x
AIA Engineering reported a margin miss, with EBITDA margin at 26.4%, down 210 bps QoQ and 310 bps YoY. Adverse product mix and an 81% YoY surge in freight costs were the key drags. PAT declined 23% QoQ and 1% YoY to Rs 301 crore.
Guidance: FY27 EBITDA-margin guidance has been reduced to 20-22% from 23-24%. FY27 volume and tonnage guidance has been deferred to Q2 pending trial outcomes, with no formal volume target reiterated.
Capex: Planned capex has been stepped up sharply to Rs 350-400 crore from Rs 50 crore, including more than Rs 170 crore for a corporate house, Rs 100 crore for land procurement and Rs 50 crore for debottlenecking and solar.
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.
