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📈 Market Kya Lagta Hai
Nifty 50 🔼 +1.28%
Midcap 150 🔻- 0.86%
Smallcap 250🔻- 0.64%
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Sectors in Focus
Major Corporate Developments This Week
- HFCL: Secured a ₹496 crore export order for optical-fibre connectivity products used in AI & cloud data centres. The order includes fibre cables, patch cords and connectivity solutions, to be executed by December 2026. The company also launched its OptiQ AI brand to target the fast-growing AI data-centre connectivity market.
- Premier Energies: Commissioned a 5.6 GW solar module facility, doubling total module capacity to 11.1 GW. The company also secured ₹3,011 crore of new solar orders during Q1 FY27 and continues expanding into cells, battery storage and aluminium frames.
- Apollo Micro Systems: Announced acquisition of 41.33% stake in Premier Explosives for ₹1,550 crore, creating a broader defence manufacturing platform spanning defence electronics, explosives and energetic materials.
- Aditya Infotech: Reported 35.6% revenue growth, 167% EBITDA growth and 124% PAT growth in FY26 while increasing market share above 43%. Also formed a JV with Orient Cables to manufacture LAN and CCTV cables.
- Data Patterns: FY26 revenue increased 31%, order inflow surged over 3x to ₹1,121 crore, EBITDA margin remained around 40%, and the company stayed debt-free with a strong defence electronics pipeline.
- Diamond Power: Won a ₹435.7 crore cable supply order for Hyderabad data-centre projects linked to L&T, Sterling & Wilson and Blue Star, providing strong FY27 revenue visibility.
- Interarch Building Products: Started commercial production at its Kheda, Gujarat facility, increasing installed capacity to 221,000 tonnes. The plant will cater to demand from data centres, semiconductors, EVs, logistics parks and renewable-energy projects.
- Granules India: Received US First-to-File status for generic LUMRYZ, offering potential 180-day marketing exclusivity after regulatory approval.
- DEE Development Engineers: Raised ₹300 crore through preferential allotment. Order book stands at ₹2,428 crore, with FY27 order inflows already reaching ₹781 crore.
- Orchid Pharma: Signed a US$178 million (10-year) licensing and supply agreement in Russia for Exblifep, its novel antibiotic already approved in the US and Europe.
- GMM Pfaudler: Order backlog increased 34% to ₹2,194 crore. Completed the acquisition of Brazil-based SEMCO, expanding into mining, defence, nuclear and battery-related industries.
- Advanced Enzyme Technologies: FY26 revenue grew 17%, PAT increased 30%, and the company announced a ₹52 crore capex along with a new R&D centre.
- India Nippon Electricals: Crossed ₹1,000 crore annual revenue for the first time. PAT rose 36%, while the company expanded into EV products like integrated starter generators and DC-DC converters.
- NRB Bearings: FY26 PAT more than doubled to ₹121.5 crore. Approved a ₹200 crore capex programme for new bearing capacity, aerospace and defence manufacturing.
- Uno Minda: Approved a ₹320 crore investment to establish a new four-wheeler seating plant, strengthening its passenger vehicle component portfolio.
- Ravindra Energy: Signed a 0.5 GWh battery supply agreement with CATL, supporting electric tractors, heavy commercial vehicles and battery-swapping infrastructure.
- ZEN Technologies: Expanded drone propulsion manufacturing capacity to 300,000 units annually, strengthening indigenous drone component manufacturing for defence applications.
- OneSource Specialty Pharma: Clarified that delayed semaglutide supplies to Dr. Reddy's will not materially impact business as existing capacity is fully committed. Additional manufacturing capacity is coming online during FY27.
- Rishabh Instruments: Delivered one of its strongest turnarounds with 160% EBITDA growth and nearly 4x PAT growth, driven by recovery in its HPDC die-casting business.
- P N Gadgil Jewellers: Reported 41% revenue growth in Q1 FY27, with retail sales rising 56% and same-store sales increasing 46%.
- Honasa Consumer: Guided for around 30% YoY Q1 FY27 growth, expecting high-teen growth for Mamaearth and over 40% growth for brands like The Derma Co. and Aqualogica. Also incorporated Honasa Health.
- 63 Moons Technologies: Order book reached ₹288 crore, equivalent to 82% of FY27 revenue target, improving execution visibility in cybersecurity and compliance software.
- Greaves Cotton: Approved a ₹331 crore rights issue investment into its electric mobility subsidiary to support future EV expansion.
- Ceinsys Tech: Won a ₹67 crore PMAY-Urban government contract and approved investment in an AI cloud JV targeting government and defence applications.
- Fermenta Biotech: Received FSSAI approval for VITADEE Green, a plant-based Vitamin D3 ingredient for nutraceutical and food industries.
- Manorama Industries: Established a wholly owned subsidiary in Chad to strengthen sourcing of shea nuts and shea butter, securing its specialty fats supply chain.
- Nitta Gelatin: Commissioned a new collagen peptide production line (3.5 tonnes/day) while reporting 34% PAT growth in FY26.
- Artemis Medicare: Opened a new 300+ bed hospital in Raipur and reiterated plans to expand capacity from around 700 beds to nearly 2,000 beds over time.
- Great Eastern Shipping: Added a new LR2 tanker (Jag Laxman) using internal cash, strengthening its owned fleet to 41 vessels while benefiting from strong tanker freight rates.
- MobiKwik: Reported positive EBITDA in both Q3 and Q4 FY26, shifted lending business into a subsidiary and applied for an NBFC licence, marking progress toward sustainable profitability.
TechnoFunda Investing Quote from Legends -
Seth Klarman's quote emphasizes the importance of viewing stocks as ownership stakes in real businesses, rather than merely as price fluctuations on a chart. When investors focus on the underlying business—its operations, financial health, competitive position, and long-term prospects—rather than short-term market volatility, they can make more rational, informed decisions. This perspective helps to anchor investments in fundamentals, fostering patience and discipline, instead of being swayed by market noise. By treating stocks as fractional ownership in companies, investors align their approach with business evaluation rather than speculative trading.
📚 Book I'm Reading This Week
Unknown Market Wizards by Jack D. Schwager is a compelling addition to the renowned Market Wizards series, exploring the untold stories of extraordinary traders who have achieved remarkable success while flying under the radar. Unlike high-profile investors, these traders operate outside the spotlight, demonstrating how discipline, adaptability, and a unique edge can lead to exceptional performance in the financial markets. Through in-depth interviews, Schwager delves into their strategies, mindsets, and journeys, offering invaluable lessons for traders and investors alike. The book underscores the idea that market mastery is not limited to Wall Street elites but is attainable for those willing to dedicate themselves to the craft
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
The Earnings You Don't See
Why great businesses build capabilities years before they build profits.
Every earnings season, investors ask the same questions.
How much did revenue grow?
Did margins improve?
Was the guidance positive?
Will earnings beat expectations next quarter?
These are important questions.
But they all suffer from the same problem.
They focus on what has already happened.
The biggest wealth creators, however, are often built long before their earnings begin to reflect it.
The market sees revenue.
Exceptional investors try to understand capability.
The Bamboo Tree Principle
There is an interesting story about the Chinese Bamboo Tree.
For years after planting the seed, almost nothing appears above the ground.
It is watered.
It is fertilized.
It is cared for.
Yet visible growth is almost non-existent.
Many would assume nothing is happening.
But beneath the surface, the plant is building an extensive root system capable of supporting rapid future growth.
Then, over a remarkably short period, it shoots up dramatically.
Did it grow in a few months?
Or was it quietly growing for years?
Businesses often follow the same pattern.
Businesses Invest Before They Earn
Most investors assume revenue comes first.
Reality is exactly the opposite.
A company first invests in:
- Research & Development
- Manufacturing capability
- Engineering talent
- Customer relationships
- Certifications
- Distribution
- Technology
- Brand
Only after years of investment do these capabilities begin producing meaningful revenue.
This sequence is remarkably consistent across industries.
Investment
↓
Capability
↓
Customer Trust
↓
Revenue
↓
Operating Leverage
↓
Earnings Growth
By the time the earnings become obvious, the capability has usually existed for years.
Why the Market Often Gets It Wrong
Financial statements don't measure capability very well.
When a company hires engineers, incurs R&D expenses, builds a new factory, or spends years obtaining customer approvals, current profits often decline.
The market frequently interprets this as weaker performance.
But sometimes, those lower reported profits are actually investments in the company's future earnings power.
This is why many great businesses look expensive after they become successful—but often look ordinary while they are building the foundations of future growth.
A Lesson from the Aerospace Industry
Consider an aerospace supplier.
Winning an order isn't as simple as quoting the lowest price.
Before supplying a single component, a company may spend several years developing manufacturing capability, achieving global certifications, passing stringent quality audits, and completing customer qualification processes.
During this period:
- Revenue contribution is minimal.
- Return on investment appears poor.
- Margins remain under pressure.
- Investors lose patience.
Yet every passing quarter is strengthening the company's competitive position.
Once approvals are completed, commercial production can continue for years, creating a long runway for earnings growth.
The market often celebrates the first large order.
Professional investors pay attention much earlier—when the capability is being built.
Capability Creates Competitive Advantage
Almost every durable competitive advantage begins as an investment that appears uneconomic.
Asian Paints spent decades building its distribution network.
Titan invested heavily in trust and branding before jewellery became its largest business.
Divi's Laboratories built complex chemistry capabilities long before becoming one of the world's preferred manufacturing partners.
None of these investments created immediate profits.
They created capabilities.
And capabilities eventually create earnings.
What Should Investors Look For?
Instead of focusing only on quarterly earnings, ask different questions.
- Is management investing in capabilities that competitors cannot easily replicate?
- Has the company built a new manufacturing facility before demand has fully materialised?
- Is R&D spending increasing?
- Are new customer approvals or certifications being discussed?
- Is management hiring specialised talent?
- Is the company entering technically demanding adjacencies?
These are often the earliest signs that tomorrow's earnings engine is being built today.
The Technofunda Takeaway
One of the biggest differences between investing and speculation is the ability to distinguish current performance from future earning power.
Quarterly numbers tell us what a business has already achieved.
Capabilities tell us what a business may become.
Learning to recognise capability before it becomes visible in earnings is one of the most valuable pattern recognition skills an investor can develop.
Because the market eventually rewards earnings.
But exceptional investors learn to recognise the businesses that are quietly building those earnings years in advance.
Exceptional businesses rarely wait for demand before investing. They build technology, capacity, customer relationships, and execution capabilities years in advance. While these investments may temporarily suppress profitability, they often create the foundation for sustained earnings compounding once demand catches up.
The market rewards earnings. Great investors recognise capabilities before those earnings arrive.
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Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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