OMKARA CAPITAL – DAILY NEWSLETTER (23rd July 2026)

War continues between USA & Iran & hence crude keeps inching up every day. This is something which is keeping markets nervous. Indian markets are consolidating & stock moves are governed by earnings season. For those who may be worried – a small data. Brent is up 40% since recent lows and Indian markets haven’t seen any big breakdowns – general consolidation is welcome. Wild stock reactions is majorly due to earnings season volatility & not crude.

Numbers are coming super: after TVS, Bajaj Auto, Karuru – look at earnings from Nestle (Stellar growth as Revenue & EBITDA grew 25%/40% YoY resp), OFSS, IIFL Finance, IndusInd. Stay in right sector is v imp.

Good earnings

1. OFSS Q1FY27 review: WoW earnings. Revenue up 51% QoQ and up 68.7% YoY. EBITDA margins at 60% - highest margins posted by the co in over 7-8 yrs.
2. IIFL Finance Q1FY27 review: continues to deliver and beat street estimates. Why is this NBFCs so cheap? A 3% RoA + business and 25% growth tardes at 1.2x PB FY28e. Pre-Provision Operating Profit ₹1,252 cr (+50% YoY, +7% QoQ). PAT (post-NCI) ₹675 cr (+189% YoY, +15% QoQ). Management guides for 25% YoY consolidated AUM growth in FY27, credit costs of 1.5-1.7%, RoA of 3.1-3.3% and RoE of 16-20. Motilal Oswal increase target price to Rs 700
3. IndusInd Bank Q1FY27 review: The big turnaround quarter. Operating performance gaining traction; reiterates 1% FY27E exit RoA. Bank reports PAT of ~INR10.4b (vs. street est of INR6.7b), led by healthy operating performance and one-off interest on IT refund of INR2.84b. NII grew 7% QoQ (1% YoY) to INR46.8b (6% beat). NIM expanded 18bp QoQ to 3.57%. Concall: FY27 exit RoA guidance of 1% remains intact, driven by improving business momentum, lower credit costs, and operating leverage
4. UCO Bank Q1FY27 Earnings Review - UCO Bank delivered a strong Q1FY27 with credit growth of 21.18% YoY, significantly exceeding FY27 guidance along with sharp improvement in AQ. Bank had elected to transition to a lower tax regime for which one time noncash DTA charge of ₹1,273 crores was recorded, without this adjustment, the PAT would have tripled. Operating Profit (PPOP) at Rs 2,810cr vs Rs 1,573cr QoQ vs Rs 1,562cr YoY (78.58% QoQ and 79.84% YoY
5. Gandhar Oil Q1FY27 Earnings Review: co posts record quarterly profit of ₹206 cr in Q1FY27, driven by a sharp jump in margins as export mix rises to 51% of revenue. Revenue ₹1,732 cr, up 91.8% YoY and 58.4% QoQ. EBITDA ₹281 cr, up 512% YoY; EBITDA margin 21.4%, up 1,020 bps YoY. PAT ₹206 cr (highest ever quarterly profit), up 689% YoY; PAT margin 11.9%, up 1,020 bps YoY.

In-line earnings

1. United Spirits 1QFY27 earnings review: In-line result as revenue grew 6.04% YoY to 2703 cr. High advertising exp impacted EBITDAM by 30 bps YoY to 16%. Adj. PAT at 472 cr (+75.46% YoY) due to other income of 222 cr

*Weak earnings•

1. DRL Q1FY27 review: Operational miss; FY27 expected to be a transition year. Co made provisions of Rs 240 crore related to inventory, as it found certain batches of Semaglutide to be out of specification due to issues associated with API. Still, EBIDTA was 15% lower vs street est adjusting for the Semaglutide-related impact.

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.