OMKARA CAPITAL - DAILY NEWSLETTER: 6th August 2026

RBI POLICY

The RBI kept rates unchanged while lowering its inflation forecast and raising its FY27 growth forecast.

GLOBAL MARKETS

Gold and silver surged over 4% last night. The world continues to await a formal end to the US-Iran conflict, while the US lifted sanctions on an Iraqi airline linked to Iran’s IRGC.

MARKETS VIEW

This earnings season has been beautiful, with several companies reporting super earnings and, more importantly, strong commentary during concalls. Pharma had an excellent day, while Navin Fluorine’s earnings confirmed that its upgrade cycle is underway. Healthcare and chemicals appear to be turning the corner after a long time. There are many interesting opportunities, but stock selection and valuations remain important.

EARNINGS SNAPSHOT

Neuland Laboratories was the standout result, with the rapid scale-up of the bempedoic acid CMS order driving 120% revenue growth and a 962% surge in PAT. Pearl Global delivered a broad-based beat; Navin Fluorine’s earnings upgrade cycle continued; Novelis recovered strongly as its New York plant restarted; and Biocon benefited from healthy Biosimilars and Generics growth despite weakness at Syngene. PB Fintech delivered a profitability beat, while Aurobindo Pharma reported broad-based growth across markets. Savita Oil and Asahi India Glass recorded sharp margin expansion. GE Vernova’s earnings were in line, but order inflows disappointed; FDC’s exports offset domestic weakness; and Power Grid reported muted growth. Cohance delivered poor results, while Cummins India and Ion Exchange saw healthy revenue growth overshadowed by sharp margin pressure.

🟢 GREEN | STRONG EARNINGS

1. PEARL GLOBAL: Robust execution and higher realisations drive a broad-based beat

Pearl Global beat expectations despite challenging macros, supported by strong order-book execution and better realisations. Revenue grew 24.5% YoY to Rs 1,528 crore, EBITDA rose to Rs 164 crore and PAT increased 52.7% to Rs 99 crore. Gross margin expanded to 51.5% from 46% YoY, while EBITDA margin improved to 10.75% from 9.2%, as margin expansion in Bangladesh and Vietnam offset moderation in India. The company plans to add capacity of 7 million pieces by September 2026.

2. NAVIN FLUORINE: Earnings upgrade cycle continues; HPP drives a material beat

Navin Fluorine reported revenue of Rs 1,050 crore, up 44% YoY and 12% ahead of estimates, led by a strong beat in HPP. EBITDA grew 73% to Rs 360 crore, beating estimates by 16%, while PAT doubled to Rs 240 crore and was 25% ahead of estimates. Momentum remained strong across HPP, CDMO and Specialty Chemicals. A healthy CDMO and cooling-products pipeline, participation in new Specialty Chemical molecules and fresh capex in advanced materials provide multiple medium-term growth drivers.

3. NEULAND LABORATORIES: Bempedoic acid scale-up drives explosive growth and operating leverage

Neuland delivered the standout result, with the rapid scale-up of the bempedoic acid CMS order driving revenue growth of 119% YoY to Rs 641.6 crore and PAT growth of 962% to Rs 148 crore. EBITDA surged 546% to Rs 223 crore, with margin expanding to 34.7% from 11.8% YoY. Management highlighted deeper customer engagement, a healthy project pipeline and the possibility of higher investment intensity as opportunities expand.

4. NOVELIS: Earnings recover sharply as New York plant restarts; underlying EBITDA remains resilient

Novelis reported EBITDA of $467 million in the June quarter versus $86 million in the March quarter. Adjusted EBITDA stood at $516 million after incorporating fire-related idle-capacity costs, incremental customer-servicing costs and insurance recoveries. Excluding business-interruption insurance proceeds, EBITDA grew 13% YoY and was in line with estimates. Volumes declined 5% YoY, or 1% after adjusting for the fire impact, while EBITDA per tonne fell 3% QoQ to $512. The fire-affected New York facility restarted in June, and insurance recoveries have commenced.

5. BIOCON: Biosimilars and Generics remain strong; Syngene weakness limits overall performance

Biocon’s Biosimilars and Generics businesses delivered strong growth, supported by new launches and the scaling of Denosumab, Aflibercept and Liraglutide, while Syngene remained a drag due to lower Zoetis demand and underutilised capacity. Consolidated sales rose 10% YoY to Rs 4,336 crore, EBITDA increased 10.6% to Rs 847 crore and PAT grew 53.4% to Rs 137 crore. Gross margin improved to 66.2% from 64.4% YoY, while EBITDA margin was broadly stable at 19.5%. Syngene is overhauling its leadership to revive growth.

6. PB FINTECH: Strong start to FY27; operating leverage drives profitability beat

PB Fintech reported Q1FY27 net profit of Rs 160 crore, beating estimates by 21%. Revenue was 3% ahead of expectations, while flat expenses supported a 19% beat in PBT and a 15% beat in EBITDA. EBITDA margin stood at 9.85% versus the expected 8.8%, as expenses outside contribution declined to 58% of revenue from 61% YoY. Sequential net-profit decline was limited to 38%, compared with a 50% QoQ decline in Q1FY26, indicating a strong start to FY27.

7. AUROBINDO PHARMA: Broad-based growth across markets drives double-digit earnings expansion

Aurobindo Pharma reported strong growth across key markets, led by Europe, up 25.6% YoY to Rs 2,937 crore, and Growth Markets, up 37.7% to Rs 1,063 crore. US Formulations grew 8.1% to Rs 3,770 crore despite temporary product drops, while API revenue increased 14.6% to Rs 1,048 crore. Consolidated sales rose 16.9% YoY to Rs 9,105.8 crore, EBITDA grew 17.3% to Rs 1,881.1 crore and PAT increased 25.2% to Rs 1,032 crore.

8. SAVITA OIL TECHNOLOGIES: Sharp margin expansion drives multi-fold earnings growth

Savita Oil reported a strong quarter, with revenue increasing 49.6% YoY to Rs 1,480 crore and gross profit rising 188.5% to Rs 542 crore. EBITDA surged 508.4% to Rs 364 crore, with margin expanding to 24.6% from 6.1% YoY. Adjusted PAT grew 414.8% to Rs 288 crore, while PAT margin rose to 19.5% from 5.7%.

9. ASAHI INDIA GLASS: Strong operating leverage drives sharp margin and PAT expansion

Asahi India Glass reported revenue growth of 15% YoY to Rs 1,413 crore, while gross profit increased 36.2% to Rs 1,092 crore. EBITDA rose 68.9% to Rs 325 crore, with margin expanding 733 bps to 23%. Adjusted PAT increased 165.4% to Rs 149 crore, while PAT margin improved to 10.6% from 4.6% YoY.

🟡 AMBER | IN-LINE EARNINGS

10. GE VERNOVA T&D: Strong revenue growth and EBITDA beat; order inflows disappoint

GE Vernova reported revenue growth of 38% YoY to Rs 1,836 crore, while EBITDA rose 19% to Rs 461 crore and beat estimates by 3%. Inflationary pressure pulled gross margin down to 41.3% from 48% YoY, but operating leverage helped contain EBITDA margin at 25.1%, in line with FY27 guidance. PAT increased 24% to Rs 363 crore. However, order inflows declined 30% YoY to Rs 1,140 crore and were 37% below estimates, partly due to the absence of large related-party export orders.

11. FDC: Export growth cushions domestic weakness during the peak season

FDC reported in-line results, with domestic sales declining 2% YoY to Rs 568 crore due to weakness in Enerzal, Zifi and Simyl following Q4 inventory front-loading. Exports rose strongly by 74% to Rs 73 crore and increased their contribution to 11% of sales. Overall revenue grew 3% YoY to Rs 667.7 crore, EBITDA increased 1.9% to Rs 143 crore and PAT rose 9.2% to Rs 132 crore. EBITDA margin remained broadly stable at 21.4%.

12. POWER GRID: Muted revenue and profit growth; margins remain under pressure

Power Grid reported muted growth, with revenue increasing 3% YoY to Rs 11,497 crore but declining 1% QoQ. EBITDA stood at Rs 9,430 crore, up 1% YoY, with margin at 82% versus 83.6% YoY. PAT declined 1% YoY and 21% QoQ to Rs 3,598 crore. CMP is Rs 282, with a market cap of Rs 2,62,879 crore.

🔴 RED | WEAK EARNINGS

13. COHANCE LIFESCIENCES: Order phase-outs and negative operating leverage push PAT into a loss

Cohance reported severe underperformance as order phase-outs, a weak product mix and negative operating leverage hit earnings. Revenue declined 23.1% YoY to Rs 422.3 crore, while EBITDA collapsed 99% to Rs 1 crore and margin fell to 0.3% from 20.4%. The company reported a PAT loss of Rs 45 crore versus a profit of Rs 46 crore YoY. Gross margin declined to 71.5% from 73%. CMP is Rs 425, with a market cap of Rs 16,268 crore, despite the weak operating performance.

14. CUMMINS INDIA: Healthy revenue growth overshadowed by a sharper-than-expected margin decline

Cummins India’s revenue grew 17.9% YoY to Rs 3,426 crore, but gross margin contracted 346 bps YoY to 33.5%, leading to an EBITDA miss. EBITDA declined 1.2% to Rs 616 crore, with margin falling to 18% from 21.4% and missing estimates by 4-7%. PAT was broadly flat YoY at Rs 609 crore, while recurring PAT missed estimates by 6-9%. The stock trades at a TTM P/E of 64.5x, making margin recovery an important monitorable.

15. ION EXCHANGE: Top-line growth fails to translate into earnings as gross margin contracts sharply

Ion Exchange reported a weak quarter despite revenue growth of 20.1% YoY to Rs 700.5 crore. Gross margin contracted 489 bps to 36.2%, pulling EBITDA down 49.3% to Rs 31.7 crore and PAT down 93.7% to Rs 3.1 crore. Q1 is seasonally weak, making YoY comparison more relevant. Consumer-business losses narrowed and Industrial margins recovered, offering some green shoots. Specialty Chemicals revenue grew 21.6% to Rs 229.6 crore, but EBIT declined 52.2% as margin fell to 9.6% from 24.4%.

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.