OMKARA CAPITAL – DAILY NEWSLETTER (26th May 2026)

Headlines
• FM Sitharaman says govt open to hear investor concerns on LTCG, STCG taxation
• US Secretary of State Marco Rubio says – trade deal with India may be done in weeks, not months (keep textile of radar for sure)

Stocks in news
• Solar projects must use Indian-made cells from June 2026. The government will not delay new solar sourcing rules for all projects. (This is v imp as this decision supports local solar manufacturing & gives long-term policy clarity to the industry) – this is a good news for cos like Waaree, Premier, Emmvee
• JM Fin on Happy Forging: increases price target to Rs 1650 from 1480
• Jefferies on Belrise: Buy call, target raised to ₹250/sh

MARKET COMMENTARY: 24K ON NIFTY CONQUERED

I have never seen such a strength in the markets & especially on individual stocks like yesterday. 24k on Nifty is an important level to be conquered as told to me by many technical friends. Break above 24,000 = trend change signal.

It is all going to be all about individual stocks going ahead. Markets/ Nifty may consolidate but hunters are our for-hunting bargains. There is a different energy amid HNIs/ fund managers seeking for value and strong companies and we still have not seen any flows from FIIs.

It seems that all things are falling in place and we remain hopeful as always. FM hinted yesterday for first time about taking up taxation issues related to the stock market as well. This is v imp for FIIs to return, and it remains v imp.

One imp thing – market will entice with lot of stock ideas going ahead. Don’t get trapped in mediocrity and do mistake of selling great businesses because they might not move like others where fun & games are happening.

Omkara Focus earnings and concalls

1. Gokaldas Exports Concall: STRONG: FY27 consolidated EBITDA margin +~200bps over FY26 10.5% base. Africa $115-120M revenue. India growth 'much more than 10-12%'. BTPL Rs1,000cr+ revenue, 6-7% EBITDA. Working capital -Rs75-100cr. Africa Q1-Q2 run-rate $24-25M/quarter, accelerating to $32-33M Q3-Q4. BTPL EBITDA-positive H2 FY27. Kolar+Bhopal Rs300cr capacity fully ramped Q3. NCLT merger approval Q3 FY27.
2. Belrise Concall: FY27: mid-to-high teens revenue growth; EBITDA margins broadly stable vs FY26 12.1%. Capex 6–6.5% of manufacturing revenue. SDM France to turn EBITDA positive reversing ₹94.7 crore one-time loss. SDM France loss narrowing visible Q1FY27. Haridwar facility moves from trial to production. Bangalore brownfield prep for Rs 90 crore 2W OEM order (Q2FY27 start). Fuel/labor cost pass-through execution to evidence in margins.

Good earnings

1. Sudarshan Chemical 4QFY26 earnings review: Volume recovery + pricing + operating leverage drive a sharp rebound; reported optics still flatter the print. War related supply chain concerns may have led to a premature restocking cycle on the customers end. Analyst call (27th May) remains key for outlook for FY26. Consolidated revenue Rs 2,790 Cr, +33% QoQ / +107% YoY. EBITDA Rs 227 Cr, +500% QoQ; reported margin 8.2% vs 1.8% in Q3 — the swing reflects operating leverage on the high-cost Heubach platform as volumes recovered, plus a seasonal tailwind. Mgmt Business EBITDA Rs 247 Cr (8.9%) is the cleaner operating read.
2. Travel Food Services 4QFY26 earnings review: Strong set with 25.7% revenue growth driven by 9.4% LFL despite flat passenger traffic impacted by the Middle East conflict in March. System-wide Sales grew 28% to 895 cr. with 6.1% LFL with healthy premiumisation-led demand. Adj. PAT up 17% to 120.8 cr. Added 5 new brands during the quarter with 145 brands. Added 24 outlets with total at 518 QSR outlets. Commenced operations at Cochin International Airport T1 and Navi Mumbai airport through the Semolina JV, while also winning the mandate to operate 33 QSR outlets at Delhi IGI Terminal-1. Additionally, Noida International Airport operations are expected to commence in H1FY27. (At CMP, stock is trading at 28x FY28e)

In-line earnings

1. NA

Weak earnings

1. Aarti Pharmalabs 4QFY26 earnings review: Weak results due to costly stock purchases and an insufficient CDMO sales mix, gross margins were squeezed by 300 YoY to 51%. Additionally, sales fell short of our projections due to a below-average CDMO sales mix and a delayed ramp-up of Xanthine's increased capacity leading to just 4% YoY sales growth. Sales up 4% but EBIDTA down 22%, and margins down to 19.2% vs 25.5%

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

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.