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A Very Happy Diwali! 🪔

As we celebrate the festival of lights, we wish you and your family happiness, good health, prosperity and new beginnings.

May this festive season bring fresh perspectives, new opportunities and continued success in everything you pursue.

Wishing you a bright, prosperous and fulfilling year ahead.

Sectors in Focus

Major Corporate Developments This Week

1. Affle 3i – Announced the acquisition of 100% of Israeli ad-tech company Perion Network in an all-cash transaction valued at approximately US$420 million, strengthening its presence in developed advertising markets.
2. Zen Technologies – Reported its highest-ever quarterly revenue of ₹345.13 crore in Q2 FY27, up 98.8% year-on-year. Quarterly order inflows stood at ₹481.81 crore, taking its order book to ₹1,375.70 crore.
3. Ambuja Cements – Announced a capacity expansion plan of approximately 30 MTPA with a proposed investment of ₹14,500 crore by FY30. The company aims to increase its cement capacity to 155 MTPA.
4. Garden Reach Shipbuilders & Engineers (GRSE) – Signed a contract worth approximately ₹32,000 crore with the Indian Navy for the construction of five Next Generation Corvettes.
5. Larsen & Toubro – Secured significant orders for residential and commercial projects, adding to its construction order book.
6. Highway Infrastructure – Received a Letter of Award worth ₹198.31 crore from CPWD for a CISF-related project, taking its total order book to approximately ₹1,776 crore.
7. JNK India – Received a major order from JNK Global, South Korea, for a heater package project, strengthening its international order pipeline.
8. LCC Projects – Received a Letter of Intent worth ₹703 crore from the Gujarat Water Supply and Sewerage Board for a water supply project. It subsequently received another contract worth ₹717.46 crore from the Jaipur Water Zone office.
9. Man Infraconstruction – Secured two EPC work orders aggregating ₹583 crore, comprising a ₹508 crore high-rise residential project in South Mumbai and a ₹75 crore port infrastructure project.
10. Power Grid Corporation of India – Reaffirmed its FY27 capital expenditure guidance of ₹37,000–40,000 crore. The company commissioned 981 circuit kilometres of transmission lines during Q2 FY27.
11. Bajaj Finserv – Approved a QIP of up to ₹11,700 crore and a preferential issue of warrants worth up to ₹5,800 crore, alongside reporting Q2 FY27 consolidated PAT growth of 25% year-on-year.
12. TVS Motor Company – Approved the demerger of its consumer finance business, which will result in two separately listed entities. Q2 FY27 revenue increased 44% year-on-year to ₹17,103 crore, while PAT rose 52% to ₹1,377 crore.
13. Exide Industries – Reported Q2 FY27 standalone revenue growth of 20.3% year-on-year to ₹5,026 crore and PAT growth of 75.1% to ₹386 crore. Its 6 GWh lithium-ion battery gigafactory in Bengaluru has also been commissioned.
14. Zydus Lifesciences – Completed the acquisition of the API business from Sterling Biotech on 2 November 2026, expanding its pharmaceutical manufacturing portfolio.
15. Nykaa (FSN E-Commerce Ventures) – Acquired an 82% majority stake in beauty brand Simply Nam, expanding its portfolio of beauty and cosmetics brands.
16. Bharat Heavy Electricals (BHEL) – Signed equipment contracts with Adani Power for four thermal power projects, with an estimated combined value of ₹20,000–28,000 crore.
17. Rajesh Power Services – Secured turnkey orders worth approximately ₹1,628.74 crore from DGVCL for converting overhead power distribution networks into underground networks.
18. National Aluminium Company (NALCO) – Advanced its proposed ₹30,000 crore brownfield aluminium smelter expansion at Anugul, which is expected to double its smelting capacity to 1 MTPA.
19. Premier Energies – Approved capital expenditure of approximately ₹5,947 crore for setting up a 10 GW ingot and wafer manufacturing facility, strengthening its backward integration in the solar value chain.
20. Affordable Robotic & Automation – Its subsidiary secured an export order worth US$5.47 million (approximately ₹51.8 crore) for the supply of 103 autonomous mobile robots.
21. Markolines Pavement Technologies – Secured two highway resurfacing work orders aggregating ₹135.20 crore from the Brihanmumbai Municipal Corporation.
22. Ellenbarrie Industrial Gases – Secured a turnkey order worth approximately ₹480.7 crore for an air separation unit, strengthening its industrial gases project pipeline.
23. KSH International – Approved a Phase III capacity expansion at its Supa facility involving an investment of approximately ₹185 crore.
24. GE Vernova T&D India – Secured an order from Power Grid for establishing a 6,000 MW, ±800 kV HVDC terminal station for renewable power evacuation from Barmer-II to South Kalamb.
25. STL Networks – Received an order worth approximately ₹555 crore from Power Grid Corporation of India, strengthening its presence in the power transmission and telecom infrastructure segment.
26. Marine Electricals (India) – Reported Q2 FY27 revenue growth of 82% year-on-year to ₹405 crore and announced new orders worth approximately ₹2,059 crore.
27. Bharat Electronics (BEL) – Received additional orders worth approximately ₹909 crore, taking into account its order wins disclosed up to 6 November.
28. Texmaco Rail & Engineering – Received three domestic railway wagon orders aggregating approximately ₹428.55 crore, strengthening its railway freight wagon order book.
29. Raj Rayon Industries – Announced a capital expenditure plan of approximately ₹650 crore over two years to expand its installed capacity to more than 700 tonnes per day.
30. Websol Energy System – Reported Q2 FY27 PAT growth of 73.2% year-on-year to ₹80.21 crore and prepaid a ₹110 crore term loan, becoming debt-free.
31. GAIL (India) – Its subsidiary, GAIL Mangalore Petrochemicals, commissioned a 1.25 MTPA purified terephthalic acid (PTA) plant at Mangalore, adding to its petrochemical manufacturing capacity.
32. Cupid – Entered into an exclusive retail partnership with V2 Retail across more than 425 stores, with the arrangement expected to generate incremental annual revenue of approximately ₹400 crore.
33. One Point One Solutions – Reported Q2 FY27 revenue growth of 147% year-on-year to ₹174.96 crore and secured an international contract worth US$10.8 million.
34. SEAMEC – Secured a subsea installation contract worth approximately US$26.14 million from Larsen & Toubro, strengthening its offshore marine services order book.
35. Waaree Renewable Technologies – Secured a 285 MWp solar EPC work order, with project completion scheduled during FY28. It also received a five-year O&M contract for a 360 MWp solar project.
36. BHEL – Received an order from Power Grid for synchronous condensers at the Barmer-II HVDC project, adding to its power transmission-related equipment order pipeline.
37. PPAP Automotive – Reported record Q2 and H1 FY27 revenues and order wins aggregating approximately ₹429 crore.
38. Jindal Drilling & Industries – Received an award from ONGC for the deployment of its rig Discovery-I for a three-year period.
39. Frog Innovations – Received and accepted a Letter of Intent worth approximately ₹91.97 crore from Indus Towers.
40. LCC Projects – Received a contract worth approximately ₹717.46 crore from the Jaipur Water Zone office, adding to its water infrastructure order book.
41. Balkrishna Industries – Reported Q2 standalone revenue growth of 49% year-on-year to ₹3,450 crore and outlined a capital expenditure plan of approximately ₹6,800 crore.
42. KSH International – Reported Q2 PAT growth of 62% year-on-year to ₹48 crore and approved a ₹185 crore Phase III expansion at its Supa facility.
43. Creative Newtech – Approved the acquisition of 100% of Zicom SaaS for an enterprise value of approximately ₹50.50 crore, expanding its technology solutions portfolio.
44. Delaplex – Completed the 100% all-cash acquisition of UK-based logistics consulting entities Bisham Limited and Bisham Consulting.
45. NLC India – Approved a ₹2,500 crore bond issuance and a 660 MW thermal power expansion, alongside declaring an interim dividend of ₹1.50 per share.
46. Ravindra Energy – Its jointly controlled entity, Energy In Motion, signed an MoU with Sorigin Green Mobility for the proposed deployment of 500 electric heavy commercial vehicles over the next two years.
47. BHEL – Signed contracts with Adani Power for equipment and services for four thermal power projects, with the estimated contract value ranging between ₹20,000 crore and ₹28,000 crore.
48. STL Networks – Received a ₹555 crore order from Power Grid Corporation of India, adding to its telecom and power transmission infrastructure business.
49. VA Tech Wabag – Reported H1 FY27 PAT growth of 29% year-on-year to ₹194.7 crore, with its order book standing at approximately ₹20,200 crore.
50. Danish Power – Announced a capacity expansion of approximately ₹200 crore, supporting its growth plans in the electrical equipment and transformer segment.
51. SEAMEC – Secured a subsea installation contract worth approximately US$26.14 million from Larsen & Toubro, strengthening its offshore marine services order book.
52. BHEL – Received an order from Power Grid for synchronous condensers at the Barmer-II HVDC project, adding to its power transmission-related equipment order pipeline.
53. PPAP Automotive – Reported record Q2 and H1 FY27 revenues and order wins aggregating approximately ₹429 crore.
54. Jindal Drilling & Industries – Received an award from ONGC for the deployment of its rig Discovery-I for a three-year period.
55. Frog Innovations – Received and accepted a Letter of Intent worth approximately ₹91.97 crore from Indus Towers.
56. Creative Newtech – Approved the acquisition of 100% of Zicom SaaS for an enterprise value of approximately ₹50.50 crore, expanding its technology solutions portfolio.
57. Delaplex – Completed the 100% all-cash acquisition of UK-based logistics consulting entities Bisham Limited and Bisham Consulting.
58. NLC India – Approved a ₹2,500 crore bond issuance and a 660 MW thermal power expansion, alongside declaring an interim dividend of ₹1.50 per share.
59. Ravindra Energy – Its jointly controlled entity, Energy In Motion, signed an MoU with Sorigin Green Mobility for the proposed deployment of 500 electric heavy commercial vehicles over the next two years.
60. Danish Power – Announced a capacity expansion of approximately ₹200 crore, supporting its growth plans in the electrical equipment and transformer segment.

TechnoFunda Investing Quote from Legends -

Warren Buffett’s quote, "Time is the friend of the wonderful business, the enemy of the mediocre," highlights the power of compounding and business quality over the long term. A wonderful business — one with strong fundamentals, competitive advantages, and consistent growth — becomes even more valuable as time passes, rewarding patient investors with expanding profits and wealth. On the other hand, a mediocre business struggles to grow or maintain its position, and over time, its weaknesses get exposed, often leading to stagnation or decline. In investing, time magnifies the gap between good and bad businesses.

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TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

The Product Mix Shift: When a Company Changes What It Sells

A boring cash cow can fund a better business—until the better business becomes the company.

Investors often focus on how much a company sells. But an equally important question is what it sells.

A company can grow revenue year after year by selling more of the same commodity product. Yet, if customers have multiple alternatives and competition is largely price-driven, every additional rupee of revenue may contribute very little incremental profit. The business gets bigger, but its economics remain unchanged.

Now imagine that the same company gradually shifts towards specialised, value-added products. These products require greater technical expertise, customer approvals and engineering capabilities. Customers become harder to replace, pricing improves and margins expand.

The company may still operate in the same industry, with many of the same assets and employees. But economically, it is becoming a different business.

This is the idea behind Product Mix Change: moving from low-margin, commoditised products towards higher-value offerings that can improve profitability, returns on capital and the durability of growth.

The Two-Engine Model

Most successful product-mix transitions have two engines working together. The first is the reliable base business, or the cash cow. It may grow moderately, but it generates the cash required to fund new capabilities, capacity, technology and customer relationships.

The second is the emerging growth engine. Initially, it may contribute very little to revenue and may require years of investment. But as it scales, it can gradually become a larger part of the business, lifting the company’s overall margins and returns.

The objective is not to abandon the first business. It is to use its cash flows to build the next, better business.

Three Indian Examples

Garware Hi-Tech Films: From selling film to selling protection.

Garware started with relatively commoditised polyester films, but gradually moved towards branded, value-added sun-control films and paint-protection films. Its paint-protection film business, which was almost negligible in FY21, reached approximately 25% of FY26 revenue. Value-added films now account for around 75% of its revenue. Over FY15–FY26, operating margins improved from 7% to 21%, while ROCE increased from 7% to 18%. The company did not simply sell more film; it moved further up the value chain.

Shaily Engineering Plastics: From furniture components to drug-delivery devices.

Shaily’s precision moulding capabilities, developed through years of supplying global customers such as IKEA, provided the foundation for its entry into healthcare devices, particularly pen injectors. Healthcare revenue grew 139% in FY26 to ₹393 crore, increasing its share of revenue from 21% to 40% in one year. Over FY23–FY26, operating margins improved from 15% to 28%, while ROCE rose from 11% to 29%. The underlying manufacturing expertise was not entirely new; what changed was the application and value of that expertise.

Sansera Engineering: From automotive precision to aerospace and defence.

Sansera’s core automotive business has built deep capabilities in precision engineering and tight-tolerance machining. The company is extending these capabilities into aerospace, defence and semiconductor-equipment components. Its ADS business increased from approximately 4% of revenue in FY25 to 9% in FY26, with an order backlog of ₹4,464 crore at March 2026. This is still an emerging engine, but the backlog and growing customer opportunities offer an early indication of where the business could be heading.

What Should Investors Look For?

The first signal is a consistently rising share of revenue from the new business. The second is improving operating margins and ROCE, which indicate that the change in product mix is translating into better economics. The third is evidence ahead of reported revenue: customer approvals, order books, capacity expansion and long-term contracts.

One important distinction is that a new business is not automatically a better business. It must eventually earn attractive returns on the capital invested. The existing cash cow must also remain healthy enough to fund the transition. Excessive debt, dependence on a single customer or an inability to commercialise new capacity can derail the entire journey.

The Bigger Lesson

A company does not always need a new industry, a new factory or a completely new business model to become a better investment. Sometimes, it simply needs to move towards products where it has greater differentiation, stronger customer relationships and better economics.

This is why investors should look beyond revenue growth and study the changing composition of that revenue. A company growing at 15% with improving margins and returns may be undergoing a much more meaningful transformation than one growing at 25% by selling more of the same commoditised product.

Watch what they sell, not just how much they sell.

Because the most interesting phase of compounding often begins when the business that once funded the company is gradually overtaken by the business that defines its future.

🚀 My Content For This Week 🎬 How to Find Multibagger Stocks Using AI​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek A company’s profits may look strong, but the numbers underneath can tell a different story. Before investing, check cash flow, receivables, inventory, debt, ROCE, equity dilution, and management guidance. One red flag doesn’t always mean a bad business. But repeated warning 11:41 AM • Oct 26, 2026 3 Retweets 30 Likes Read 2 replies ​ 📷 Instagram: Lessons from Rakesh Jhunjhunwala that stay with you for life​ 🔗 Linkedin: Powerful theme doesn’t automatically make a good investment​

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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