OMKARA CAPITAL – DAILY NEWSLETTER (22nd July 2026)

Good news is that I am back in Mumbai, and the bad news is that length of newsletter will increase :)

The earnings season has kicked superbly & our systems are also ready to track every conference calls, investors ppt & earnings. As I been saying, in the earnings season – some cos will disappoint – that is part of our business, but if the India Inc trend is on upwards trajectory & more imp concalls & your positioning is the right sector – you are a winner. NBFCs are doing super vs private banks. So, if u held NBFCs – you are a winner. Eagerly waiting for IIFL Finance earnings tomorrow, AMI & Tanfac on Friday.

Some earnings update in brief
• Shyam Metalics posts strong Q1FY27 with revenue up 23% YoY and EBITDA up 28% YoY; net cash positive even at peak capex, with multiple new facilities commissioning.
• Bajaj Auto posts strong Q1FY27 with revenue up 37% YoY and EBITDA up 45% YoY; exports and capacity expansion drive bullish outlook.
• TVS Motor Q1FY27: Revenue, EBITDA and PAT all beat estimates by a wide margin; margins held up and outlook upgraded to double-digit industry growth.
• Sobha posts highest-ever quarterly pre-sales in Q1FY27, up 76% YoY, though reported revenue and EBITDA dipped sharply QoQ on lower completions; management guides ≥30% pre-sales growth for FY27.
• Aavas posts strong Q1FY27 — disbursements up 41% YoY, PAT up 23% YoY, asset quality improves; management guides 17-18% AUM growth for FY27.
• M&M Financial posts strongest-ever quarterly profit — PAT up 70% YoY, asset quality improves sharply, disbursements surge 22%.
• AESL posts strong Q1FY27 with revenue up 42% YoY and EBITDA up 68% YoY; cooling solutions segment surges; gross margin compressed but operating efficiencies offset the drag.
• Sagility Q1FY27: Revenue up 28% YoY on steady-state strength; margins dip QoQ on wage hikes; FY27 organic growth and debt repayment guidance intact
• Bandhan Bank posts steady NII growth and sharp asset-quality improvement in Q1FY27, but operating profit fell sharply YoY and management cut its ROA target for the year.

Let me start with some imp concalls

1. Shyam Metalics And Energy Ltd. — Concall KTAs — Q1FY27: FY27 revenue and EBITDA growth >20%; internal target >25% (not committed publicly). Flat-products segment to nearly double FY27. Long-term EBITDA margin ambition 15-17%; ROE/ROCE +600-700 bps by 2031.
2. Aavas Financiers Ltd. — Concall KTAs — Q1FY27: FY27 disbursement growth 22-23%, AUM 17-18%; medium-term sustainable growth 20%; full-year spread to slip sub-5% from 5.1% Q1; ROA 3.2%, ROE 13.3% guided stable despite home-loan mix pressure.
3. Mahindra & Mahindra Financial Services Ltd. — Concall KTAs — Q1FY27: FY26-31 AUM CAGR 16-18%; mobility 12%, new businesses >30%. ROA toward 2.5%; credit cost 1.3-1.7% across cycles; NIM >7.0-7.1%; OPEX-to-assets 2.5-2.7%; debt-to-equity moving 5:1 toward 6:1.
4. Bajaj Auto Ltd. — Concall KTAs — Q1FY27: Exports beyond 250,000 units/month this quarter onward; capacity expanding 25% to 9M+ units p.a.; cash to rebuild toward Rs 15,000 crores by FY27-end post Rs 10,000 crores July payout; EV capacity moving to 60,000 units near-term
5. TVS Motor Company Ltd. — Concall KTAs — Q1FY27: FY27 industry growth upgraded to double digits; TVS to outperform. Q2 ICE slightly better than Q1; EV same-to-better. Additional 0.5% price hike in Q2; further adjustments as needed vs. commodity inflation.
6. Bandhan Bank Ltd. — Concall KTAs — Q1FY27: Exit Q4 FY27 ROA reset to 1.2%-1.4% (from 1.6%-1.8%); NIM capped at 6.2% with no further expansion assumed; credit cost FY27 unchanged at 1.6%-1.8%; other income to contribute 10-20 bps to ROA.
7. Sobha Ltd. — Concall KTAs — Q1FY27: FY27 pre-sales growth floor ≥30%; completions 6–6.5 msf vs 5.4 msf last year (+~20%); net debt ~zero; EBITDA to exit Q4 at 17–20%; ₹2,000 cr operating cash reframed as multi-year average, not FY27 commitment.
8. Granules India Ltd. — Concall KTAs — Q1FY27: FY27 EBITDA margin guided 22%-23%; R&D at 5.5%-6% of sales; peptide CDMO PAT-positive FY27, H2 > H1; 5-year peptide target $50M revenue, 30%+ EBITDA, 3 customer wins >$10M each.

Results review

Good earnings
• Mahindra & Mahindra Financial Services(Standalone) 1QFY27 review: Revenue from operations ₹4,972 cr (+13% YoY, +4% QoQ). NII ₹2,764 cr (+22% YoY, +1% QoQ). Pre-Provisioning Operating Profit ₹1,756 cr (+30% YoY, +2% QoQ). PAT ₹899 cr (+70% YoY, +3% QoQ). ROA 2.4% (vs 1.6% in Q1FY26)
• Aavas Financiers 1QFY27 review: AUM ₹23,931 cr as of Jun-26 (+15.4% YoY), monthly AUM addition improved ~50% YoY. Disbursements ₹1,614 cr in Q1FY27 (+41% YoY. NIM 7.70% (+22 bps YoY). GNPA 1.11% (-11 bps YoY), NNPA 0.71% (-13 bps YoY)
• Sagility Q1FY27 review: Revenue up 28% YoY on steady-state strength; margins dip QoQ on wage hikes; FY27 organic growth and debt repayment guidance intact. Adjusted EBITDA ₹472 cr (+27.9% YoY), margin 24.0% — flat YoY but down 90 bps QoQ due to minimum wage hike impact (₹7 cr in Q1). FY27 guidance: low double-digit constant-currency organic revenue growth; EBITDA margin 24–25% (upper end possible if wage impact moderates); full debt repayment within FY27.
• Aurum Prop Q1FY27 review: EBITDA ₹39 cr (Q1FY27) vs ₹22 cr (Q1FY26) — adjusted EBITDA margin 10.2% (Q1FY27) vs -3.0% (Q1FY26), +1320 bps YoY. Housing.com acquisition set to nearly double scale

In-line earnings

Weak earnings
• Bandhan Bank Q1FY27 review: Negligible improvement and RoA guidance cut. NII ₹2,920 cr (+5.9% YoY, +4.5% QoQ), operating Profit ₹1,360 cr (-18.6% YoY, -5.8% QoQ). ROA 1.0% (+20 bps YoY); ROE 7.7% (+179 bps YoY)
• Medplus Q1FY27: Revenue up 22% YoY but profits fell sharply — margin pressure from lower private label mix and rapid franchisee expansion weighed heavily.

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.