OMKARA CAPITAL - DAILY NEWSLETTER 7th August 2026

GLOBAL MARKETS

US markets took a breather as investors still await a formal end to the US-Iran conflict. Statements from President Trump and Treasury Secretary Bessent continued, but there is no final resolution yet. Gold remained near a seven-week high on easing rate-hike concerns.

MARKETS VIEW: MEDIOCRITY KILLS PORTFOLIO RETURNS

Everything looks good: earnings are solid, FII selling has moderated and participation is broad-based across sectors. Technology has performed well, and yesterday saw strong buying in Reliance Industries and SBI.

The only concern is the excitement around too many stories and narratives & huge supply of QIP/ IPOs and what all. At this stage, the discipline is not merely to find new ideas, but to have the courage to stay with existing winners already sitting in the portfolio. Mediocrity kills portfolio returns.

The biggest mistakes are often made during phases of excitement, urgency and bull markets. We remain confident on Indian equities, but equally focused on avoiding unnecessary mistakes. That is the edge we need to carry together.

EARNINGS SNAPSHOT

Lupin was the standout result, with US sales up 42.9% YoY, India business up 15.1% and formulation sales up 34.3%; consolidated revenue/EBITDA/PAT grew 32%/41.8%/16% YoY. Shipping Corporation also delivered a major beat as Middle East freight rates lifted EBITDA margin to 47.8%, while Siemens Energy reported 39% revenue growth, 72% EBITDA growth and a 16.4% increase in order book.

SJS Enterprises delivered broad-based growth, with exports up 83% and EBITDA margin expanding 194 bps; Crompton showed green shoots as pricing protected margins despite input-cost pressure. Emcure’s exports grew 34%, Premier Energies delivered 35% revenue and 53% PAT growth, and Sandur benefited from higher manganese ore and steel realisations. Rain Industries saw adjusted EBITDA rise 61% on commodity tailwinds, while Edelweiss reported 83% PAT growth and highlighted the October IPO timetable as a key catalyst.

India Shelter’s earnings were in line: NIM remained healthy at 10.6%, but the change in disbursement-recognition norms depressed reported loan growth and Stage 3 assets increased to 1.55%. On the weak side, Vikram Solar saw EBITDA decline 48% and margin collapse to 8%; Apollo Tyres’ margin fell 149 bps despite 12.8% revenue growth; and Sula’s muted 3% revenue growth led to a 45% decline in adjusted PAT.

🟢 GREEN | STRONG EARNINGS

1. SHIPPING CORPORATION OF INDIA: Freight-rate surge drives a stellar quarter and sharp margin expansion

Shipping Corporation delivered a stellar quarter, supported by higher freight rates amid the Middle East conflict. All business verticals performed well, while stronger liner and bulk-carrier margins lifted overall profitability. Revenue rose 40.3% YoY and 22% QoQ to Rs 1,846.6 crore; EBITDA increased 80.5% YoY and 44.2% QoQ to Rs 882.4 crore; and PAT grew 74.9% YoY to Rs 619.3 crore. EBITDA margin expanded to 47.8% from 37.2% YoY and 40.4% QoQ. Around Rs 50-100 crore of revenue may have spilled over from Q4 due to the Strait of Hormuz disruption in March 2026.

1. SJS ENTERPRISES: Broad-based auto growth and export momentum support strong execution

SJS reported a strong quarter, with revenue growing 24.5% YoY to Rs 261 crore, EBITDA margin expanding 194 bps to 28.6% and adjusted PAT increasing 33.7% to Rs 46 crore. The automotive business grew 32.4%, led by 45.4% growth in passenger vehicles and 19.5% growth in two-wheelers. Domestic sales rose 20.3%, while exports surged 83.2%. Management retained its robust EBITDA-margin outlook and expects to outperform industry growth by 1.5-2x, supported by premiumisation, larger OEM relationships and exports. More than 88% of FY27 forecast revenue is covered by the current order book.

1. LUPIN: US recovery and broad-based international growth drive an excellent quarter

Lupin delivered an excellent result, led by 42.9% YoY growth in US sales to Rs 3,435 crore, with Tolvaptan exclusivity and strong market shares in Tiotropium, Mirabegron and Albuterol providing key support. India prescription sales grew 15.1%, with Anti-Diabetes up 31.8%, while Emerging Markets and Other Developed Markets grew 51.7% and 48.3%, respectively. Formulation sales increased 34.3% to Rs 7,954 crore. Consolidated revenue rose 32% YoY to Rs 8,276.9 crore, EBITDA increased 41.8% to Rs 2,449.6 crore and PAT grew 16% to Rs 1,417 crore.

1. SIEMENS ENERGY: Best-in-pack performance as both verticals deliver strong growth and margin expansion

Siemens Energy reported sharp growth across Power Transmission and Generation, emerging as the best performer in its peer set so far. Revenue increased 39% YoY to Rs 2,486 crore, EBITDA rose 72% to Rs 587 crore and PAT grew 67.8% to Rs 441 crore. EBITDA margin expanded to 23.6% from 19.1% YoY, while gross margin improved to 83.3% from 70%. The order book rose 16.4% YoY to Rs 19,331 crore.

1. CROMPTON GREAVES: Green shoots visible as disciplined pricing protects margins

Crompton Greaves showed green shoots after a long time, with sales and PAT growing 12% and 15% YoY, respectively. The highest-ever quarterly BLDC-fan sales, up 44%, supported broad-based growth. Operating margin expanded 20 bps to 10%, despite cost pressure and demand volatility, aided by high-single- to low-double-digit price hikes, lean working-capital management and cost control. Around 80% of inflation has been passed through, with the remaining 20% pending. The company had also taken 7-8% price hikes in key ECD categories, including fans, in March 2026.

CITI on Crompton Cons: Buy, TP Rs 400

1. EMCURE PHARMACEUTICALS: Export-led growth drives a strong all-round quarter

Emcure reported an excellent quarter, led by 34% YoY export growth to Rs 1,485 crore, with exports contributing 58% of sales. Growth was supported by the base business, Liposomal Amphotericin B volumes, new launches and improved ARV demand across Europe, Canada and Rest of World markets. Revenue increased 22.9% YoY to Rs 2,580.4 crore, EBITDA rose 27.8% to Rs 532 crore and PAT grew 36.2% to Rs 292 crore. EBITDA margin improved to 20.6% from 19.8% YoY.

1. PREMIER ENERGIES: Strong revenue and PAT growth, though EBITDA margin moderates

Premier Energies reported revenue of Rs 2,463 crore, up 35.3% YoY and 10.4% QoQ. EBITDA increased 27.2% YoY to Rs 759 crore, while PAT grew 53.3% to Rs 472 crore. EBITDA margin stood at 30.3%, down 166 bps YoY, while PAT margin was 18.8%. Consolidated numbers include Transcon India Limited; total income, including other income, was Rs 2,508 crore, up 34.1% YoY.

1. SANDUR MANGANESE & IRON ORES: Higher manganese ore and steel realisations support strong operating performance

Sandur reported strong numbers, supported by higher sales volumes and average selling prices for manganese ore and steel. Steel-business operating leverage lifted EBITDA margin to 14.3%, up 284 bps QoQ and 137 bps YoY, although mining inventory changes pressured overall gross margin. Revenue increased 21.1% YoY to Rs 1,374.8 crore, while EBITDA rose 14.8% to Rs 343 crore; EBITDA margin was 25% versus 26.4% YoY. The stock trades at 8x FY27 and 6.4x FY28 EV/EBITDA.

1. RAIN INDUSTRIES: Commodity tailwinds drive sharp EBITDA and PAT expansion

Rain Industries is riding the commodity wave, with revenue from operations growing 17% YoY to Rs 5,167 crore. Adjusted EBITDA rose 61% to Rs 994 crore, with margin expanding to 19.2% from 14%. Adjusted PAT increased to Rs 317 crore from Rs 50 crore, while reported PAT rose to Rs 296 crore from Rs 61 crore. The Q3CY26 outlook remains cautious amid geopolitical, logistics and commodity-market volatility.

1. EDELWEISS FINANCIAL SERVICES: Strong PAT growth; IPO and strategic milestones are key catalysts

Edelweiss reported consolidated PAT of Rs 122 crore, up 83% YoY. Management expects FPAUM growth of around 25% and a sustainable ROE of 25-35%, while mutual-fund equity net new money is targeted at Rs 15,000-20,000 crore annually, with a current run-rate of Rs 18,000-20,000 crore. Both insurance businesses are expected to break even in FY27. Key milestones to watch are EAAA roadshows and RHP filing for a potential October IPO, the Carlyle/Nido closure in 3-4 weeks subject to RBI/NHB approval, MSME disbursements and post-reset Nido AUM normalisation.

🟡 AMBER | IN-LINE EARNINGS

1. INDIA SHELTER: Stable spreads, but recognition-norm change masks underlying loan growth

India Shelter reported in-line earnings, with NIM holding up but credit cost expanding 20 bps QoQ. Reported disbursement and loan-book growth were slower due to a shift in disbursement recognition from handover to cheque realisation; on the earlier method, disbursement growth would have been 18% YoY and loan growth 5% QoQ, versus reported growth of 2.2% QoQ. NII increased 30.9% YoY to Rs 235 crore and PAT grew 20.2% to Rs 143 crore. NIM was 10.6%, while GNPA Stage 3 increased to 1.55% from 1.25% QoQ.

🔴 RED | WEAK EARNINGS

1. VIKRAM SOLAR: Strong revenue growth fails to offset a sharp collapse in profitability

Vikram Solar reported revenue growth of 38% YoY and 8% QoQ to Rs 1,563 crore, but EBITDA declined 48% YoY and 46% QoQ to Rs 126 crore. EBITDA margin collapsed to 8%, down 1,300 bps YoY and 800 bps QoQ. PAT fell 85% YoY and 82% QoQ to Rs 20 crore, with margin declining to 1%. Finance cost increased 53% YoY to Rs 49 crore, while depreciation rose 91% to Rs 64 crore, further weighing on profitability.

1. APOLLO TYRES: Revenue growth remains healthy, but margin contraction drives weak profitability

Apollo Tyres reported a weak but broadly in-line quarter. Revenue increased 12.8% YoY to Rs 7,398 crore, but gross margin declined to 42.9% from 44.1% YoY and EBITDA margin fell 149 bps to 11.7%. EBITDA was flat YoY at Rs 868 crore, while adjusted PAT declined 15.1% to Rs 325.3 crore. The company also announced the resignation of Whole-time Director Gaurav Kumar, effective 6 August 2026; he will continue as CFO during the transition.

1. SULA VINEYARDS: Muted sales growth and margin pressure lead to a weak quarter

Sula reported a weak quarter, with revenue growing only 3% YoY to Rs 113 crore. Wine Tourism grew 12.3% to Rs 15.4 crore, while own-brand sales rose 2% to Rs 104.3 crore; Elite and Premium sales increased 6.2%, but Economy and Popular declined 10.5%. EBITDA declined 9.3% YoY to Rs 17 crore, with margin contracting 199 bps to 14.7%. Adjusted PAT fell 45.4% to Rs 1.1 crore.

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.