OMKARA CAPITAL – DAILY NEWSLETTER (3rd July, 2026)

Catching the right cycle creates wealth and brings peace of mind. Chasing a new stock every day based on market narratives only brings temporary excitement

Stocks in News
• Adani Ent: QIP Issue Opens, Floor Price At Rs 3,034.68/Share
• Gold & Silver bouncing back – keep an eye

STRONG PRE-QUARTER UPDATES FROM FINANCIALS CONTINUE
AUM Growth Bounces Back Sharply; Strong Acceleration In New Loan Bookings

The early Q1FY27 business updates suggest credit demand remains healthy, while asset quality trends continue to improve across most lenders, particularly in the retail and MFI segments. This should be supportive for earnings expectations going into the Q1FY27 result season.

When the big elephant in the jungle - Bajaj Finance AUM grows 24%, and smaller banks/ NBFCs 25% - 30% plus - do take notice. I am saying this that 18% system credit growth after 10-years is a big number to think and action. At the risk of sounding repetitive so many times – FY27 will be super turnaround year from lot of NBFCs (MFIs/ SFBs).

We are loaded with financials as a basket & just need to wait now for the earnings to do the magic.

Q1 Pre-quarter updates
• Clear positive surprises: Bajaj Housing Finance, Bajaj Finance and Ujjivan SFB.
• Healthy execution: Bank of India and CSB Bank.
• Steady/In-line: Equitas SFB and M&M Finance.

Bajaj Finance Q1FY27 Update: AUM grew 23.9% YoY / 7.2% QoQ, accelerating from 22.4% YoY / 5.3% QoQ in Q4FY26. Highest quarterly AUM growth in the last four quarters. Growth was supported by acceleration in new loan bookings to 16.1mn vs 13.5/12.9mn QoQ/YoY.. customer addition of 5.1mm in 1QFY27 vs 4.7mm YoY, taking total customer franchise @ 124.4mm (+16.8/4.3% YoY/QoQ).. AQ stress seems to have bottomed out as evident from acceleration in biz momentum

CSB Bank Q1FY27 Update: Advances grew 24% YoY while deposits increased 26.4% YoY, maintaining healthy loan-deposit balance.

Equitas Q1FY27 Update: Deposits increased 10.4% YoY / 5.3% QoQ while advances grew 26.7% YoY / 3.2% QoQ.

Ujjivan Small Finance Bank Q1FY27 Update: Gross loan book grew 28.9% YoY / 5.5% QoQ. Disbursements rose 41.5% YoY while GNPA improved to 2.17%, down 35 bps YoY.

Bajaj Housing Finance Q1FY27 Update: AUM rose 24% YoY / 6% QoQ to ₹1.50 lakh crore. Disbursements jumped to ₹19,500 crore, the highest among recent quarters

M&M Finance Q1FY27 Update: Biz Asset Growth Abv Est @ 12.5/2.6% YoY/QoQ, driven by higher disbursements (+21.5% YoY) - highest witnessed in several quarters—despite a seasonally weaker quarter.. AQ broadly stable in a seasonally weak quarter - GS3 @ 3.4–3.5% vs. 3.4% QoQ; GS2 @ 4.9–5.0% vs 4.8% QoQ.

Bank of India Q1FY27 Update: Advances grew 18.6% YoY while deposits increased 16.2% YoY. Strong momentum in Retail, Agriculture & MSME (RAM) portfolio.

RECAP (released on 2nd July)
• Canara bank Q1FY27 Update: another strong quarter, with credit growth of 18% YoY, while deposits grew a steady 11.7% YoY.
• J&K Bank Q1FY27 Update: gross advances growing 25.5% YoY (+5%QoQ) and deposits rising 16.8% YoY, taking total business growth to over 20%
• Indian Bank Q1FY27 Update: in-line: deliver balanced growth, with advances rising 13.9% YoY and deposits increasing 13.3% YoY
• Tamilnadu Mercantile Bank Q1FY27 Update: gross advances up 27% YoY to ₹57,306 crore
• South Indian Bank Q1FY27 Update - gross advances up 17% YoY to ₹1.04 lakh crores
• Karur Vysya Bank Q1FY27 Update - Advances came at Rs. 1,04,678 Cr (+17% YoY, +6% QoQ)
• Karnataka Bank Ltd Q1FY27 Update - Credit growth up 16.6% YoY but deposit continued to lag at 6.9% YoY

Retail pre-quarter updates
• Marico Q1FY27 Update - strong: Volume growth accelerates to double digits. Parachute volume growth sharply improves to double digits

RECAP (released on 2nd July)
• 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%

I am also bullish on some small SMEs which can do wonders going ahead. Discussion and ideation notes in the FORUM section on Omkara website.

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.