OMKARA CAPITAL – DAILY NEWSLETTER (2nd July, 2026)
We are loaded with financials as a basket & just need to wait now for the earnings to do the magic.
Did you know: July has been higher for the S&P 500 an incredible 11 years in a row
HEADLINE
• NBFCs-MFIs AUM to accelerate to 20% in FY27 from 4% in FY26: CRISIL
• Mumbai sees proper monsoon showers
Good start to the earnings season – so far
We start the earnings season with some pre-quarter updates & monthly auto sales data.
Auto sales review: Strong demand - MHCVs and Tractors outperform
STANDOUT: Tata Motors PV (+69% YoY, EV +183%) and M&M UV (+28% YoY despite supply constraints). Ashok Leyland: Dispatches +25% YoY, led by strong MHCV truck and LCV growth
• MHCV wholesale growth was significantly ahead of analysts estimate at 24% y-y (analysts expected 12-15% growth)
• Tractors: Industry wholesale volumes up +14% y-y (this was surprising amid El
• Nino worries)
• PVs: Industry wholesale volumes were up +24% y-y for June2026
Q1 Pre-quarter updates
Financials: Standout: Tamilnadu Mercantile Bank, J&K Bank, Canara bank
• Canara bank: another strong quarter, with credit growth of 18% YoY, while deposits grew a steady 11.7% YoY.
• J&K Bank: gross advances growing 25.5% YoY (+5%QoQ) and deposits rising 16.8% YoY, taking total business growth to over 20%
• Indian Bank: in-line: deliver balanced growth, with advances rising 13.9% YoY and deposits increasing 13.3% YoY
• Tamilnadu Mercantile Bank - gross advances up 27% YoY to ₹57,306 crore
• South Indian Bank - gross advances up 17% YoY to ₹1.04 lakh crores
• Karur Vysya Bank - Advances came at Rs. 1,04,678 Cr (+17% YoY, +6% QoQ)
• Karnataka Bank Ltd - Credit growth up 16.6% YoY but deposit continued to lag at 6.9% YoY
Retail pre-quarter updates (both strong)
• V2 Retail Q1 Business Update: Revenues grew 58% YoY to Rs 997 cr, SSSG came in at 7.5%, QoQ 7.74%, YoY 5%
• VMart Retail Q1 Business Update: Revenues grew 23% YoY to Rs 1089 cr, SSSG came in at 9%, QoQ 12%, YoY 1%
A word on financials: when system credit growth is 18% after 10-years – this is a sector to focus. And the biggest rebound will happen in NBFCs for FY27. Glad that Crisil is now saying what we believed 1-2 years back. 20% AUM growth for NBFCs MFIs from 4% will be a killer for earnings for so many hated and under-owned names.
We are loaded with financials as a basket & just need to wait now for the earnings to do the magic.
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.
