OMKARA CAPITAL – DAILY NEWSLETTER 3rd August 2026
Trump said he has cancelled the US attack on Iran and that the “perimeters of a deal” have been agreed to
Early yesterday morning, Trump said he has cancelled the US attack on Iran and that the “perimeters of a deal” have been agreed to. He also said that this new deal will include “a total reopening of the Strait of Hormuz.”
MORNING TAKE
Divi’s Laboratories was the standout result, with strong CSM sales driving a material beat and EBITDA margin expanding to 40.7%. Glenmark delivered broad-based growth across India, the US and emerging markets, while ABB India’s healthy revenue and order inflows were offset by gross-margin pressure.
INDIA: HEADLINES
- July GST collections stood at ₹2.11 lakh crore versus ₹1.83 lakh crore, up 15.4% YoY.
- FIIs turned buyers after four consecutive months of net selling.
- RBI’s FCNR forex schemes have attracted inflows of $40.81 billion so far.
- Strong start to monthly auto sales.
BROKERAGES
- Aditya Birla Capital: Jefferies maintains Buy; TP raised to ₹475 from ₹425 (not surprised)
- Bajaj Finserv: Jefferies maintains Buy; TP raised to ₹2,550 from ₹2,400.
- Zee Ent: Kotak Insti upgrades to ADD from Reduce post shareholders approved issuance of fully convertible warrants to promoter group at Rs126/warrant (interesting)
🟢 STRONG EARNINGS
- DIVI’S LABORATORIES: Strong CSM sales drive material beat; EBITDA margin expands to 40.7%
Divi’s delivered an excellent quarter, led by strong custom synthesis sales, which contributed 60% of revenue, and a richer product mix. Sales rose 27.8% YoY to ₹3,080 crore, EBITDA increased 72.2% to ₹1,255 crore and PAT grew 65.5% to ₹902 crore. Gross margin expanded around 750 bps QoQ to 68%, supported by generics price hikes, the CDMO peptide ramp-up and backward integration. Management maintained double-digit sales growth guidance.
- GLENMARK PHARMACEUTICALS: Broad-based growth across markets drives a strong quarter
Glenmark reported healthy growth across geographies, with India up 15.7% YoY, the US up 19.8% in constant currency to $108 million and emerging markets up 27%. Growth was driven by key therapies, nine US launches—particularly injectables—Fluticasone Propionate and Ryaltris. Sales rose 23.1% YoY to ₹4,018.5 crore, EBITDA increased 38.6% to ₹805 crore and PAT grew 927.9% to ₹483 crore, while EBITDA margin improved to 20% from 17.8%.
- NATIONAL ALUMINIUM COMPANY: Higher aluminium prices offset weak alumina realisations; margins expand sharply
NALCO reported in-line results as stronger aluminium prices offset weak alumina realisations. Aluminium LME prices rose 46% YoY and 11.6% QoQ, while blended alumina realisation declined 46% YoY and 32% QoQ. Sales increased 39.3% YoY to ₹5,302.4 crore, EBITDA rose 81.5% to ₹2,708 crore and PAT grew 90.9% to ₹2,003 crore, with EBITDA margin expanding to 51.1% from 39.2%.
- VOLTAMP TRANSFORMERS: Strong order inflows and execution drive earnings beat; capacity expansion supports growth
Voltamp delivered a strong beat, with sales rising 28% YoY to ₹544 crore and EBITDA growing 13% to ₹81 crore. EBITDA margin of 14.9% was ahead of the 13.5% consensus despite commodity-cost pressure from the West Asia crisis. Q1FY27 order inflow surged over 50% YoY to ₹1,142 crore, equivalent to 53% of FY26 revenue, taking the backlog to ₹1,790 crore. The ₹90 crore capex will add 2,300 MVA, taking total capacity to 22,300 MVA by FY28E; the delayed 6,000 MVA expansion should start full production in October 2026.
🟡 IN-LINE EARNINGS
- AARTI INDUSTRIES: Forex and pricing benefits boost EBITDA; underlying volumes remain weak
Aarti Industries reported EBITDA of ₹382 crore, up 80% YoY and 11.7% QoQ, aided by pricing benefits, a ₹46 crore forex gain and benefits from low-cost inventory. However, underlying volumes remained weak, with the energy business declining 17% QoQ and the non-energy business falling 7% QoQ.
- ABB INDIA: Healthy revenue and order inflows overshadowed by gross-margin pressure
ABB India reported healthy revenue growth, but weaker gross margins led to a 100-bps YoY operating-margin contraction. Sales rose 21% YoY to ₹3,558.9 crore, EBITDA increased 11.4% to ₹447 crore and PAT stood at ₹370 crore, while EBITDA margin declined to 12.6% from 13.6%. Order inflows grew 50% YoY, led by electrification and automation, while the order backlog grew 22%. Management expects to execute around 40% of its ₹4,363 crore order book over the next two quarters.
🔴 WEAK EARNINGS
- MUTHOOT FINANCE: Falling yields drive sharp NIM contraction and PAT miss
Muthoot Finance reported a soft quarter as standalone AUM growth moderated to 43% YoY and 6% QoQ, partly due to falling gold prices. Yields declined 283 bps and the cost of funds increased 7 bps, resulting in a 290-bps contraction in spreads. NIM declined 297 bps QoQ to 10.4%, leading to a miss on PAT.
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.
