The United States announced a ‘shock’ 25% tariff on Indian goods, accompanied by an unspecified penalty which has cast a pall over India’s export-oriented industries. Rating agencies have forecast a possible 20bps-30bps (basis point) reduction in India's FY25-26 GDP (gross domestic product) growth. The new US tariffs are not a blanket measure but a targeted set of levies with asymmetric impacts across India's export economy. The tariffs, and the added threat of a penalty, create a clear competitive disadvantage for a number of sectors:
- Automotive-components: Indian exporters of auto parts, which accounted for 27% of India's total auto-component exports valued at US$5.9bn (billion) in FY24-25, now face a 25% tariff. This rate is higher than the 15% tariff faced by Japanese exporters and the 20% tariff on Vietnamese exporters, placing India at a disadvantage.
- Textiles: The textiles industry in places like Tiruppur is confronting a sharp rise from 10% tariff to 25%, making its products less competitive than those from rivals like Indonesia and Vietnam who face tariffs of 19%-20%. This has already led to demands for discounts from US buyers and threatens profit margins which, for volume products, typically sit around 5%.
- Gems and Jewellery: The industry is bracing for a ‘Black Day’, with the 25% tariff and a penalty poised to significantly reduce orders and profitability.
- Seafood and Shrimp: The seafood industry, which is the largest exporter of shrimp to the US (accounting for over 90% of total seafood exports to the US in FY23-24), is under immense pressure to absorb a new 25% tariff and a penalty on top of existing duties. This is expected to cause a ‘standstill’ in the market.
- Crude Oil: While Indian refiners do not foresee a supply risk from the US tariff on Russian crude, a shift away from Russian imports could force a reliance on West Asian suppliers, potentially increasing India’s import bill by US$13bn-US$14bn.
Importantly, some sectors have been shielded. Apple's iPhones, a significant Indian export, were notably exempted from the latest tariffs.
India’s economic policy is navigating a dual mandate of fiscal prudence and growth stimulation, while confronting domestic and international challenges. The government is holding firm on its gross market borrowing target of Rs14.82 lakh crore for the fiscal year and may reprioritise spending to avoid raising the target. This stance aligns with a push for higher capital expenditure (capex) which reached Rs2.75 lakh crore in Q1FY25-26, or 24.5% of the Budget estimates (BE), a significant increase from 16.3% in the same period last year. To further bolster growth, the government is urging banks to increase lending for infrastructure projects, with the Reserve Bank of India (RBI) issuing new guidelines effective 1 October 2025, to streamline the process.
Despite these efforts, commercial bank lending for infrastructure remains sluggish. On the regulatory front, the ‘Jan Vishwas 2.0’ Bill is in its final stages, with the aim of decriminalising and deregulating laws to simplify business and attract investment.
India's automotive landscape is undergoing a transformation. JSW group is making a high-stakes entry into the sector with a new vertical, JSW MG Motor India, backed by a planned US$3bn investment over the next five years to produce electric vehicles (EVs) and hybrid vehicles. The two-wheeler (2W) EV market is also intensely competitive; Ather Energy, having sold 13,187 units in July to secure a 16.5% market share, is now within striking distance of market leader Ola Electric's 17.2%. Meanwhile, in the four-wheeler (4W) market, Mahindra & Mahindra has displaced Hyundai to become India's second-largest car-maker by volume, selling 152,067 units from April to June. On the consolidation front, Tata Motors is poised to acquire Iveco's commercial vehicle business for 4.4bn euros (US$4.8bn), a deal that would create the world's fourth-largest commercial vehicle manufacturer.
The technology sector is grappling with the transformative power of artificial intelligence (AI) and challenges in its manufacturing ambitions. Indian IT firms are issuing a clear message to employees: ‘upskill or risk losing jobs’ as generative AI (GenAI) skills become a critical benchmark. Companies like TCS are already proactively addressing this, with plans to redeploy 2% of their mid- to senior-management roles. On the manufacturing side, the government's production-linked incentive (PLI) scheme for IT hardware faces a critical challenge, with the ministry of electronics and information technology (MeitY) citing underutilisation of allocated funds. This issue is underscored by Samsung's recent experience, where its smartphone exports from India have plummeted after it lost its PLI eligibility, leaving Indian-made devices at a 10%-15% cost disadvantage compared to those from Vietnam. Amidst these challenges, global capability centres (GCCs) continue to be a growth engine for the IT sector, experiencing double-digit growth in the first half of the year, with the number of employees in mid-sized GCCs increasing from 150,000 in 2019 to 220,000 in 2024.
India's financial system is navigating a mix of regulatory proposals and strategic policy shifts. The Securities and Exchange Board of India (SEBI) has proposed significant changes for large initial public offerings (IPOs) over Rs5,000 crore, aiming to rebalance the market by lowering the retail investor quota from 35% to 25% while increasing the allocation for qualified institutional buyers (QIBs). In a separate move, payment banks are lobbying for a 10% reduction in the statutory liquidity ratio (SLR) and a deposit cap increase to Rs5 lakh, a change that would allow them to invest in higher-yielding assets. Lastly, ICICI Bank plans to levy a fee on unified payments interface (UPI) aggregators, with charges ranging from 2bps to 4bps per transaction, a move that could affect a crucial part of India's digital payments ecosystem.
Beyond the major sectors, a number of other developments highlight ongoing economic trends. India's out-of-pocket (OOP) health expenditure remains high at 32% of total health spending, down from 36% a decade ago but still reflecting a significant health protection gap. The smartphone market saw robust growth, with overall volume up 8% year-on-year (y-o-y) in the Q2FY24-25, driven by a 37% surge in the ultra-premium segment.
The trends of the major indices in the course of the week's trading are given in the table below:
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News
Alembic Pharmaceuticals received final US FDA approval for its generic carbamazepine extended-release tablets USP (100mg, 200mg and 400mg), therapeutically equivalent to Novartis’ Tegretol-XR. The drug treats seizures and trigeminal neuralgia, targeting a US market valued at US$71mn (million). Alembic’s cumulative abbreviated new drug application (ANDA) approvals now total 225, including 202 final and 23 tentative clearances.
Senores Pharmaceuticals’ US subsidiary, Havix Group Inc (Aavis Pharmaceuticals), completed a routine US FDA inspection at its Georgia facility. The inspection resulted in three Form 483 observations, all procedural and minor in nature. Havix plans to submit its response within the required 15-day window, reinforcing its commitment to regulatory compliance.
Concord Biotech successfully completed the Russian good manufacturing practice (GMP) inspection at its active pharmaceutical ingredient (API) manufacturing facility in Dholka (Gujarat). The inspection was conducted in July 2025 and marks a regulatory milestone aligned with the company’s international compliance efforts.
BEML signed a non-binding memorandum of understanding (MoU) with Hindustan Shipyard Limited to co-develop advanced marine systems, focusing on indigenous design, manufacturing and full lifecycle support. The partnership aims to strengthen India’s maritime capabilities through future projects in defence shipbuilding, underwater platforms and marine system integration.
EPACK Durable signed a joint venture (JV) agreement with South Korea’s Bumjin Electronics to manufacture sound-bars, Bluetooth devices and TV speakers in India. Production is scheduled to begin by Q3FY25-26, with the venture targeting a 30% market share in the segment. The partnership combines EPACK’s manufacturing scale with Bumjin’s audio technology expertise, supporting product diversification and entry into the smart consumer electronics space.
Asian Paints approved the amalgamation of its wholly-owned subsidiary, AP Polymers, during its board meeting. The merger, aimed at streamlining operations and reducing costs, involves no share exchange or financial impact, as AP Polymers is fully owned and has no revenue. The scheme is subject to regulatory approvals including from national company law tribunal (NCLT), Mumbai.
Vi (Vodafone Idea) launched Vi Finance integrating personal loans, fixed deposits and credit cards into its Vi app. The platform is fully digital and paperless, developed in partnership with Aditya Birla Capital, Upswing Financial Technologies and Credilio.
GAIL (India) reaffirmed its FY25-26 marketing revenue guidance at Rs4,000 crore–Rs4,500 crore and outlined aggressive infrastructure expansion plans. Over the next two years, the company aims to add 216 new compressed natural gas (CNG) stations (85 directly, the rest via JVs) and approximately 260,000 domestic piped natural gas (PNG) connections. Additionally, GAIL is targeting a natural gas transmission capacity increase of 127 mmscmd –128mmscmd (million metric standard cubic meters) in FY25-26, supporting India’s broader clean energy transition.
Tata Elxsi announced a strategic partnership with KAVIA AI on to embed GenAI automation across the software development lifecycle (SDLC). KAVIA AI’s cloud-native platform automates planning, coding, testing and deployment at scale. The collaboration targets high-reliability sectors—transportation, media, communications and healthcare—and aims to improve software quality and delivery speed without compromising compliance.
MCX launched cardamom futures offering structured, compulsory delivery contracts to improve price discovery and risk control. Contracts run through November with a 100kg lot size and benchmark pricing from Kerala’s ex-Vandanmedu rate. Volatility controls and margin safeguards aim to support farmer and trader participation.
NTPC Green Energy signed an MoU with Bihar State Power Generation Company Limited to jointly develop battery energy storage systems and renewable energy projects in Bihar. The initiative supports the state’s de-carbonisation and energy transition goals and aligns with NTPC’s broader target of achieving 60GW (gigawatt) of renewable energy capacity by FY31-32
KPIT Technologies and JSW Motors entered a strategic partnership to develop the software and digital architecture for JSW’s upcoming new energy vehicle (NEV) portfolio. KPIT will contribute expertise in software defined vehicles, electric propulsion and battery systems, and will establish a dedicated Centre of Excellence for JSW Motors. JSW Motors, a newly formed automotive vertical of the JSW group, committed US$3bn over five years to launch electric, hybrid and plug-in hybrid vehicles. Its first NEV is scheduled for rollout in H2FY25-26, supported by a 630-acre manufacturing facility under construction in Bidkin (Maharashtra).
ABB India commissioned its SCADA vantage automation platform for THINK Gas, enabling real-time, centralised control of its City Gas Distribution network across 19 Geographical Areas in 10 states. The system supports over 500 CNG stations, 550,000 DPNG connections, and 17,000 inch-km of steel pipelines
Gujarat Gas signed a agreement with Waaree Energy to supply 50,000scmd (standard cubic metres per day) of PNG to its upcoming lithium-ion cell plant in Valsad (Gujarat). The facility is slated for commissioning in Q4FY25-26 and will support domestic battery manufacturing for EVs and energy storage
Waaree Energies commissioned a 1.80GW solar module facility in Degam (Chikli in Navsari district, Gujarat), expanding its manufacturing capacity to meet rising global and domestic demand for high-efficiency modules. Over half of Waaree’s revenue comes from international markets, notably the US, reinforcing the strategic importance of this scale-up.
JK Cement commenced commercial production and dispatch of LC-3 cement at its Mangrol unit in Chittorgarh (Rajasthan), becoming the first in India and the subcontinent to do so.
Manufactured under IS 18189:2023 and BIS-certified, LC-3 comprises 50% clinker, 30% calcined clay, and 15% limestone, enabling up to 40% lower CO emissions versus OPC. The product is positioned for use in large infrastructure projects across key states including Maharashtra, Gujarat and Madhya Pradesh.
Orders
RITES received a letter of intent from Bharat Electronics Limited for Rs177.225 crore infrastructure project in Palasamudram (Andhra Pradesh). The contract covers design and construction of a mass manufacturing facility for BEL’s electro-mechanical systems business unit. Execution is planned over 24 months on a cost-plus basis.
Larsen & Toubro (L&T) secured an ultra-mega offshore EPCIC contract exceeding Rs15,000 crore from a Middle Eastern client. The project spans multiple offshore packages and includes engineering-procurement-construction (EPC) and installation of new structures, along with upgrades to existing oil and gas facilities.
Bharat Electronics (BEL) signed a Rs1,640 crore contract with the ministry of defence for the supply of indigenous air defence fire control radars to the Indian Army. Designed by DRDO and manufactured by BEL, the systems offer all-weather, day-night surveillance and tracking capabilities, with integrated ECM features. Their modular design supports ease of deployment and maintenance, aligning with India’s defence self-reliance goals.
Enviro Infra Engineers Limited secured two EPC contracts from the bangalore water supply and sewerage board (BWSSB), collectively valued at Rs221.26 crore. The projects involve designing and constructing two sewage treatment plants in Bengaluru.
Diamond Power Infrastructure received a Rs1,349.11 crore letter of intent from Adani Energy Solutions for supplying 24,080km of AL-59 conductors to marquee transmission projects including Jamnagar, Khavda-IV D, HVDC, Navinal-2 and Mahan-2. The contract, awarded on a kilometres-rate basis with price variation formulae, is scheduled for completion by June 2028.
L&T Technology Services (LTTS) signed a multi-year, around US$60mn agreement with a leading US-based wireless telecom provider, reinforcing a decade-long partnership. The deal covers advanced engineering services such as research & development (R&D) lab integration, new product development and functionality testing for network software automation platforms. LTTS will establish a dedicated delivery centre in the US to support execution and collaboration.
Investment/ Acquisition / Stake Stale
Welspun Living announced a US$13mn investment to set up a pillow manufacturing unit in Nevada (USA), with operations expected to begin by January 2026. The plant will have a capacity of 10.8mn pillows annually and could contribute about US$50mn in revenue at full scale. In Q1FY25-26, the company reported 52% y-o-y decline in net profit to Rs89.3 crore and 11% drop in revenue to Rs2,261 crore, impacted by weak export performance and margin compression.
KEC International secured Rs1,509 crore in new orders across transmission & distribution (T&D), transportation and cables & conductors. The T&D wins include 400kV (kilovolts) quad transmission lines in India and 500/400/220kV overhead lines internationally, with additional supply contracts for towers and poles in the Americas and Middle East. Its transportation business, via JV, added a train collision avoidance system (TCAS) order under Indian Railways’ Kavach safety programme. The cables & conductors segment received fresh orders for varied cable types across domestic and global markets.
Zigly, part of Cosmo First, acquired Bengaluru-based Dr Santa Animal Healthcare on launching a 24×7 multi-speciality pet hospital in Whitefield. The move expands Zigly’s footprint to six centres in the city and integrates veterinary care, diagnostics, grooming, and curated pet products under one roof. Dr Santa’s assets, staff and Rs2.23 crore FY24-25 revenue were absorbed to ensure continuity for existing clients.
Tata Power completed the first tranche of its Rs830 crore strategic investment in Khorlochhu Hydro Power Limited (KHPL) by acquiring 1.2 crore equity shares for Rs120 crore, securing a 40% stake and associate status. KHPL is developing a 600MW (megawatt) hydropower project in Bhutan, with an estimated project cost of Rs6,900 crore. The move aligns with Tata Power’s clean energy expansion strategy and follows prior announcements made in 2024.
Earnings
Kotak Mahindra Bank’s Q1FY25-26 profit dropped 47.5% y-o-y to Rs3,281.68 crore due to the absence of last year’s exceptional gain. Core income grew steadily, with net interest income (NII) up 6% y-o-y, but elevated provisions and margin contraction impacted profitability. Asset quality weakened slightly, with gross non-performing assets (NPAs) rising to 1.48% from 1.39% quarter-on-quarter (q-o-q).
Welspun Corp reported strong Q1FY25-26 results with net profit rising 41.2% y-o-y to Rs350.4 crore and revenue up 13.2% to Rs3,551.5 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 40.4% y-o-y to Rs526 crore, with margins expanding to 15% from 12% in the previous year. Growth was supported by improved domestic and international performance.
Deepak Fertilisers posted a 22% y-o-y rise in Q1FY25-26 net profit to Rs244 crore, with revenue up 17% y-o-y to Rs2,659 crore. Despite Rs377 crore in capital expenditure (capex), net debt fell to Rs3,078 crore, aided by a favourable Rs581 crore ITAT (Income-tax appellate tribunal) ruling.
Asian Paints reported a muted Q1FY25-26 performance, with net sales down 0.2% y-o-y to Rs8,924.5 crore and net profit declining 6% y-o-y to Rs1,099.8 cro ncome-tax appellate tribunalre. Margins contracted as profit before depreciation, interest and taxes (PBDIT) fell 4.1% to Rs1,625 crore, with PBDIT margin narrowing to 18.2%. International business grew 8.4% y-o-y to Rs736.1 crore, while home décor segments posted losses amid weak demand.
Amber Enterprises reported 44% y-o-y rise in Q1FY25-26 net profit to Rs104 crore, with revenue also up 44% to Rs3,449 crore. EBITDA grew 31% to Rs256 crore, though margins narrowed to 7.4% from 8.2% due to input cost pressures. Growth was broad-based across air conditioning, electronics and railway segments.
Strides Pharma reported a strong Q1FY25-26, with revenue up 6.2% y-o-y to Rs1,119.7 crore and operational PAT surging 80.6% to Rs114 crore. EBITDA rose 14.8% to Rs218.1 crore, with margins expanding to 19.5% amid improved product-mix and cost efficiency. US sales grew 7% y-o-y to US$71mn, supporting its long-term revenue target of US$400mn by FY27–28.
Apar Industries reported 30% y-o-y rise in Q1FY25-26 net profit to Rs262.91 crore, with revenue from operations up 27.3% y-o-y to Rs5,104.16 crore. EBITDA stood at Rs513.80 crore y-o-y, reflecting operational efficiency, despite higher input costs. Growth was supported by strong execution and demand across business segments.
Hitachi Energy India reported Q1FY25-26 orders of Rs11,339.2 crore, up 365% y-o-y indicating strong demand momentum. Revenue rose 15.3% y-o-y to Rs1,529.8 crore, while PAT surged to Rs131.6 crore from Rs10.4 crore last year.
InterGlobe Aviation reported Q1FY25-26 revenue of Rs20,496 crore, up 4.7% y-o-y, while net profit declined 20.2% to Rs2,176 crore. EBITDA rose 1.3% to Rs5,226 crore, but margins softened to 25.5% . Operational metrics showed strong expansion q-o-q, though yield and load factor dipped.
BASF India posted Q1FY25-26 revenue of Rs3,874.5 crore, down 2.3% y-o-y, while net profit fell 37.7% to Rs137.4 crore. PBT declined to Rs187.6 crore from Rs296.6 crore y-o-y, with margins under pressure despite flat expenses. No exceptional items were recorded this quarter.
Welspun Corp reported Q1FY25-26 revenue of Rs3,551.5 crore, up 13.2% y-o-y, with net profit rising 41.2% to Rs350.4 crore. EBITDA grew 40.4% y-o-y to Rs526 crore, and margins expanded to 15% from 12% y-o-y, reflecting strong execution across geographies.
Thermax reported Q1FY25-26 consolidated revenue of Rs2,150 crore, down 2% y-o-y from Rs2,184 crore, impacted by execution delays and pending customer clearances. PAT rose 39% y-o-y to Rs151 crore, while PBT increased 31% to Rs211 crore, driven by margin expansion and improved operational efficiency. The quarter also included Rs56 crore in income under the Maharashtra packaged incentive scheme, compared to Rs27 crore in tax refund interest in Q1FY24-25.
Vedanta reported Q1FY25-26 consolidated revenue of Rs37,824 crore, up 5.8% y-o-y from Rs35,764 crore, driven by higher volumes and improved realisations in zinc, aluminium and oil & gas. PAT declined 11.7% y-o-y to Rs3,185 crore, impacted by elevated depreciation and interest costs. EBITDA remained flat y-o-y at Rs9,918 crore, with margin contracting to 26.2% from 27.8% due to input cost inflation and mix shifts.
Maruti Suzuki reported Q1FY25-26 consolidated revenue of Rs38,414 crore, up 8% y-o-y from Rs35,531 crore, supported by 7% rise in average selling prices. PAT rose 1.7% y-o-y to Rs3,712 crore. However, EBITDA declined 11.2% y-o-y to Rs3,997 crore, with margin contracting to 10.4% from 12.7%, reflecting cost pressures and weaker operating leverage. Volumes grew 1% y-o-y but fell 13% sequentially, while other income nearly doubled to Rs1,823 crore.
Sun Pharma reported Q1FY25-26 consolidated revenue of Rs13,851.4 crore, up 9.5% y-o-y from Rs12,652.8 crore, driven by growth across India formulations and global innovative medicines. PAT declined 19.6% y-o-y to Rs2,278.6 crore, impacted by exceptional charges. EBITDA rose 19.2% y-o-y to Rs4,301.7 crore, with margin expanding to 31.1% from 28.5%. Adjusted net profit grew 5.7% y-o-y to Rs2,996.1 crore.
Mahindra & Mahindra reported Q1FY25-26 consolidated revenue of Rs45,529 crore, up 22.3% y-o-y from Rs37,218 crore, led by strong growth in automotive and farm equipment segments. PAT rose 23.4% y-o-y to Rs4,376 crore, while EBITDA increased 24.3% y-o-y to Rs6,656 crore. PBT stood at Rs5,644 crore, up 22.2% y-o-y, reflecting broad-based operating momentum.
HEG reported Q1FY25-26 consolidated revenue of Rs616.93 crore, up 7.9% y-o-y from Rs571.46 crore, supported by improved realisations and cost discipline. PAT surged 355% y-o-y to Rs104.83 crore, while PBT rose to Rs127.46 crore from Rs23.73 crore. EBITDA expanded sharply to Rs111.12 crore from Rs3.16 crore, with margin gains driven by inventory and fuel cost efficiencies.
Jubilant Ingrevia reported Q1FY25-26 consolidated revenue of Rs1,037.95 crore, up 1.3% y-o-y from Rs1,024.34 crore. PAT rose 54% y-o-y to Rs75.1 crore, while PBT increased to Rs99.77 crore from Rs66.03 crore, driven by cost efficiencies and stable input expenses. EBITDA improved on the back of lower raw material costs and steady power and fuel outlays
Hindustan Unilever reported Q1FY25-26 consolidated revenue of Rs15,931 crore, up 3.9% y-o-y from Rs15,331 crore, supported by modest volume growth and early signs of rural recovery. PAT rose 7.7% y-o-y to Rs2,732 crore. EBITDA declined 1.3% y-o-y to Rs3,558 crore, with margin contracting to 22.3% from 23.5%, impacted by moderating gross margins and stepped-up investments.
Dr. Lal PathLabs reported Q1FY25-26 consolidated revenue of Rs669.8 crore, up 11.3% y-o-y from Rs601.9 crore, driven by higher sample volumes and expanded reach across metro and tier-3/tier-4 markets. PAT rose 24.3% y-o-y to Rs134 crore, while PBT increased to Rs181.1 crore from Rs149.9 crore. EBITDA grew 13% y-o-y to Rs192.5 crore, with margin improving to 28.73% from 28.34%.
TVS Motor reported Q1FY25-26 consolidated revenue of Rs12,210 crore, up 18% y-o-y from Rs10,314 crore, driven by strong sales across motorcycles, scooters and EVs. PAT rose 35% y-o-y to Rs779 crore, while EBITDA grew 32% y-o-y to Rs1,263 crore. EBITDA margin expanded to 12.5% from 11.5%, supported by volume growth and product mix improvements
Ambuja Cements reported Q1FY25-26 consolidated revenue of Rs10,289 crore, up 23% y-o-y from Rs8,392 crore, supported by a 20% rise in cement volumes. PAT rose 24% y-o-y to Rs970 crore, while EBITDA surged 53% y-o-y to Rs1,961 crore. EBITDA margin expanded to 19.1% from 15.3%, with EBITDA/PMT improving to Rs1,069 from Rs835
Top gainers and losers of the major indices for the week are given in the table below:
