Eicher Motors, the renowned manufacturer behind the iconic Royal Enfield motorcycles, recently released its third-quarter financial results for the fiscal year 2025. While the company showcased notable growth in both net profit and revenue, the market’s reaction was negative, leading to a drop in its share price.
Eicher Motors’ shares fell 7.07% to an intraday low of ₹4,957.75 on February 11, 2025, after Goldman Sachs lowered its target price to ₹5,900. However, other factors also contributed to the market reaction, which we will explore in detail.
This growth can be attributed to the strong performance of its flagship brand, Royal Enfield, which achieved record sales during this period. The brand sold 269,039 motorcycles in the quarter, setting a new benchmark for quarterly sales – a 17% rise from the 229,214 motorcycles sold in Q3 FY24.
VECV Reports Strong Growth Despite Industry Slowdown
The VE Commercial Vehicles (VECV) segment recorded a 6% year-on-year rise in revenue, reaching ₹5,801 crore. Its EBITDA grew by 16% to ₹509 crore, while profit after tax saw a significant 44% jump to ₹301 crore.
VECV also achieved its highest-ever quarterly sales, selling 21,012 vehicles in Q3 FY25, surpassing the 20,706 units sold in the same period last year. The company highlighted its strong performance, noting that its commercial vehicle business gained market share despite sluggish industry trends.
Despite solid revenue and profit growth in Q3 FY25, Eicher Motors’ shares took a hit. Let’s explore the key factors behind the price decline.
3 Key Reasons Behind Eicher Motors’ Share Price Drop
Goldman Sachs Lowers Target Price
Goldman Sachs maintained its ‘Buy’ rating on Eicher Motors but reduced its target price from ₹6,000 to ₹5,900, still indicating a 12.5% upside from the previous close. The brokerage noted that while Q3 results aligned with expectations, higher marketing costs and regulatory price hikes weighed on future earnings. Additionally, Goldman Sachs lowered its FY25-27 EPS estimates by 5.4%, citing increased expenses.
Despite an 18% year-on-year increase in net profit to ₹1,171 crore, Eicher Motors fell short of analysts’ expectations, who had projected around ₹1,212 crore. The miss was attributed to rising marketing costs and a shift in sales mix, with lower-margin motorcycle models contributing more to revenue than premium ones.
Eicher Motors ramped up its marketing efforts to strengthen its market position and boost sales. While this strategy helped enhance brand visibility, it also led to higher expenses, ultimately affecting profitability.
Analysts Perspectives
The mixed signals from Eicher Motors’ financial performance have led to varied opinions among analysts. While the company has showcased strong growth in sales and revenue, the increased costs and shift in sales mix have raised concerns about its profitability trajectory.
Goldman Sachs’ decision to lower the target price reflects caution, emphasizing the need for the company to manage its expenses and focus on higher-margin products to sustain investor confidence.
Looking Ahead
Eicher Motors faces a crucial phase where managing rising costs and changing consumer trends will shape its future. The company’s focus on optimizing its product mix, controlling expenses, and leveraging Royal Enfield’s strong brand will be key. Investors will be watching how it balances growth with profitability.
In summary, while Eicher Motors has shown strong growth in some areas, the recent market reaction highlights the need for smart financial management and aligning strategies with investor expectations.
FAQs
Why did Eicher Motors shares plunge despite a rise in Q3 profit?
While Eicher Motors reported a rise in Q3 profit, its shares plunged due to a combination of factors, including lower-than-expected earnings, rising marketing costs, and a cut in target price by Goldman Sachs.
What were the key highlights of Eicher Motors’ Q3 performance?
Eicher Motors reported an 18% rise in net profit and a 19% increase in revenue for Q3. The company achieved its highest-ever quarterly sales volume for Royal Enfield motorcycles.
What was the impact of the target price cut on Eicher Motors shares?
The target price cut by Goldman Sachs had a negative impact on investor sentiment, leading to a decline in Eicher Motors shares. The stock fell by nearly 7% in intra-day trade.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Zomato Rebrands as ‘Eternal’ to Embark on a New Corporate Journey
In a significant move reflecting its evolving business landscape, Zomato, the renowned food delivery giant, has announced a rebranding of its parent company to ‘Eternal Ltd.’ This strategic decision underscores the company’s ambition to diversify beyond its core food delivery services, encompassing ventures like quick-commerce, live events, and kitchen supplies.
The Rebranding Unveiled
On February 6, 2025, Zomato introduced ‘Eternal Ltd.’ as its new corporate identity, accompanied by a minimalist logo symbolizing infinity. This rebranding aims to encapsulate the company’s expanded portfolio, which now includes:
Zomato: The flagship food delivery and dining-out platform.
Blinkit: A quick-commerce service offering rapid grocery deliveries.
District: A live events venture.
Hyperpure: A supplier of kitchen essentials to restaurants.
Founder Deepinder Goyal emphasized that the rebranding reflects the company’s growth beyond its original scope. He stated, “We thought of publicly renaming the company when something beyond Zomato became a significant driver of our future. Today, with Blinkit, I feel we are here.” reuters.com
Rationale Behind the Change
The rebranding to ‘Eternal’ serves multiple strategic purposes:
Reflecting Diversification:As Zomato ventures into areas like quick-commerce and live events, a new corporate identity helps represent this broader scope.
Strategic Clarity: Establishing ‘Eternal’ as the parent entity allows for clearer differentiation between the company’s various businesses, each with its own leadership and objectives.
Long-Term Vision: ‘Eternal’ signifies the company’s commitment to enduring growth and innovation across multiple sectors.
Here’s a look at their revenues before the change of name
Industry Perspectives
The rebranding has elicited varied responses from industry experts:
Harish Bijoor, a brand expert, views the change as more administrative than consumer-focused, suggesting it primarily serves internal organizational clarity.
Lloyd Mathias, an angel investor and business strategist, interprets ‘Eternal’ as a signal of the company’s growth ambitions, effectively delineating its diverse business arms.
Samit Sinha, founder of Alchemist Brand Consulting, notes that the rebranding facilitates diversification, moving beyond the company’s strong association with food delivery.
Public Reaction and Social Media Buzz
The announcement of Zomato’s rebranding to ‘Eternal’ has ignited a flurry of discussions across social media platforms, reflecting a spectrum of opinions from consumers, industry observers, and stakeholders.
Consumer Sentiment
Many long-time users of Zomato have expressed a deep emotional connection to the original brand name, viewing it as an integral part of their daily routines. The rebranding to ‘Eternal’ has elicited mixed feelings, with some users expressing discomfort or dissatisfaction with the new name. Comments such as “Zomato was an emotion, this sounds ewww” encapsulate the sentiment of those who feel a sense of loss with the change. financialexpress.com
On platforms like Twitter and Instagram, discussions have been vibrant, with hashtags related to the rebranding trending shortly after the announcement. Memes, polls, and opinion threads have proliferated, indicating a high level of engagement from the online community.
Industry experts have noted that rebranding initiatives can often lead to initial resistance from consumers, especially when the original brand holds significant sentimental value. The mixed reactions observed on social media are not uncommon in such scenarios. Experts suggest that the success of this rebranding will depend on how effectively ‘Eternal’ communicates its expanded vision and value proposition to its user base.
The transition from ‘Zomato’ to ‘Eternal’ carries several potential implications for the company:
Brand Equity and Recognition: Zomato has built substantial brand equity over the years. Transitioning to ‘Eternal’ may pose challenges in maintaining the same level of brand recognition and loyalty. The company will need to invest in comprehensive marketing strategies to familiarize consumers with the new identity.
Market Perception: The rebranding signals Zomato’s ambition to diversify its business model. While this can be viewed positively as a forward-thinking move, there is a risk that the company may be perceived as losing focus on its core competencies. Clear communication about how the rebranding aligns with enhanced services will be crucial.
Operational Integration: With the establishment of ‘Eternal’ as the parent entity overseeing multiple ventures, the company may face challenges in integrating operations across its various businesses. Implementing a cohesive corporate culture and ensuring seamless collaboration between different units will be essential for sustained success.
Investor Confidence: Investors closely monitor how companies manage significant transitions like rebranding. A well-executed rebranding strategy that leads to business growth can bolster investor confidence. Conversely, if the rebranding is perceived as unsuccessful or leads to operational challenges, it could negatively impact investor sentiment.
Conclusion
Zomato’s rebranding to ‘Eternal’ represents a bold step in its corporate evolution, aiming to encapsulate its diversified business ventures under a unified identity—the mixed reactions from the public underscore the challenges inherent in such a significant transition.
Moving forward, the company’s ability to effectively communicate the rationale behind the rebranding, maintain the quality of its core services, and demonstrate the benefits of its diversified offerings will be pivotal in determining the success of ‘Eternal’ in the marketplace.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
A new development is unfolding in the Paper Industry. ITC Limited, a conglomerate renowned for its diverse portfolio ranging from cigarettes to consumer goods, is reportedly leading the bid to acquire Century Pulp and Paper (CPP) from the Aditya Birla Group.
Not far behind is West Coast Paper Mills, a prominent player in the paper manufacturing sector. This potential acquisition, valued between ₹3,000 to ₹3,500 crore, could reshape the landscape of the Indian paper industry. economictimes.indiatimes.com
The Contenders: ITC and West Coast Paper Mills
ITC Limited’s Paperboards and Specialty Papers Division has a well-established presence in the paper and packaging sector. The acquisition of CPP would boost ITC’s production capacity and enhance its market share in the paper industry.
On the other hand, West Coast Paper Mills, promoted by the Bangur family, is also vying for CPP. Known for its extensive range of paper products, acquiring CPP would significantly strengthen West Coast’s position in the market.
According to sources, JK Paper was also vying for the acquisition, but its offer is no longer being considered at this stage.
Century Pulp and Paper: A Valuable Asset
CPP, a part of the Aditya Birla Group, is a significant player in the pulp and paper sector. The company boasts a diverse product portfolio, including writing and printing paper, tissue paper, and paperboards. Its state-of-the-art manufacturing facilities and a strong distribution network make it an attractive acquisition target for companies aiming to expand their footprint in the paper industry.
Aditya Birla Group’s Strategic Shift
On September 18 last year, the Aditya Birla Group rebranded Century Textiles Ltd as Aditya Birla Real Estate, signaling a shift in the company’s priorities. The group expanded its business portfolio by investing in real estate development around eight years ago. The pulp and paper division continues to operate under this newly rebranded entity.
CPP’s Production Capacity and Key Markets
Century Pulp and Paper (CPP) operates a plant in Nainital with an annual production capacity of 480,000 tonnes. The company generates operating profits between ₹600 and 700 crore.
CPP manufactures a diverse range of paper products, including writing and printing paper, copier paper, tissue paper, and paperboard.
Paperboard, a strengthened form of paper, is widely used as packaging material in the consumer goods, pharmaceutical, and cosmetics industries. The cigarette industry is also a significant consumer of paperboard.
CPP Key Details
Set up year
Capacity
Operating Profit
Division
Aditya Birla Group’s Pulp & Paper Division Set up in 1984
For ITC, acquiring CPP aligns with its strategy to diversify and strengthen its non-cigarette FMCG (Fast-Moving Consumer Goods) portfolio. Adding CPP’s assets would enhance ITC’s capabilities in the paper and packaging segment, supporting its various businesses, including packaged foods and personal care products.
By acquiring CPP, West Coast Paper Mills would significantly boost its production capacity and product offerings, enabling it to cater to a broader customer base and explore new markets.
CPP Acquisition: The Background Story
According to industry insiders, discussions surrounding the acquisition of Century Pulp and Paper (CPP) gained traction in December. The Aditya Birla Group had previously explored selling its pulp and paper business in 2017 but ultimately decided against it.
The divestment of CPP is expected to generate significant capital for the Aditya Birla Group, one of India’s largest conglomerates with interests spanning metals, cement, financial services, retail, and telecom. The group has also expanded its footprint into new sectors, reinforcing its diversified business strategy.
The Road Ahead
Industry observers keenly watch the developments as discussions progress. The Aditya Birla Group had previously considered divesting CPP but did not proceed.
This time, with advanced-stage talks and substantial offers, a decision is anticipated soon. The outcome of this acquisition battle could have far-reaching implications for the Indian paper industry’s competitive dynamics. economictimes.indiatimes.com
Conclusion
The potential acquisition of Century Pulp and Paper has set the stage for a significant shift in India’s paper industry. The coming weeks are crucial, with ITC Limited leading the race and West Coast Paper Mills in close pursuit.
Stakeholders and industry analysts await the final decision, which can reshape the market landscape and influence future strategies within the sector.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is ITC bidding for?
ITC has placed a ₹3,500 crore bid for Century Pulp and Paper, a division of Century Textiles and Industries. This acquisition would expand ITC’s presence in the paperboard and specialty papers sector.
Who is the competitor?
West Coast Paper Mills is also competing to acquire Century Pulp and Paper. The outcome of this competition will determine the company’s future ownership.
Why is ITC interested in Century Pulp and Paper?
This acquisition aligns with ITC’s strategy to diversify its business portfolio and strengthen its position in the paper industry. It would provide ITC access to Century’s production facilities and customer base.
What does this mean for Century Textiles?
Century Textiles’ sale of its pulp and paper division would allow It to streamline its operations and focus on its remaining businesses, such as real estate and chemicals.
What is the significance of this deal?
This deal is significant due to its size and the involvement of major players in the Indian industry. The outcome could reshape the competitive landscape of the paper sector.
The job cuts that began in 2022 have not slowed—if anything, they are accelerating. In 2023 and 2024, major companies across the technology, finance, and energy sectors slashed jobs due to cost-cutting measures, AI adoption, and economic slowdowns.
Now, in 2025, the trend continues. Tech giants like Meta, Microsoft, and Salesforce are eliminating thousands of jobs, while oil, manufacturing, and finance companies are also shrinking their workforce. More than 5,600 employees have already been laid off in January 2025 alone (Times Now).
The following table summarizes the major layoffs announced so far in 2025:
Major Layoffs in 2025
Company
Industry
Layoffs Announced
When?
Reason
Microsoft
Tech
1,900
January 2025
Cost-cutting in gaming, cloud services, and AI shift (Times Now)
Many tech layoffs are linked to artificial intelligence replacing human labor.
AI and automation efficiencies mean fewer employees are required, particularly in customer service, marketing, and back-office operations.
A study found that AI-related layoffs surged by 136% in 2024 and will continue into 2025. (India Today)
2. Economic Uncertainty & Cost-Cutting
Post-pandemic slowdowns, high inflation, and globalinterest rate hikes have reduced corporate profitability.
Companies are slashing jobs to preserve cash flow amid a murky economic outlook.
BP’s layoffs reflect a declining energy demand and shifting priorities toward sustainable projects.
3. Performance-Based Cuts & Restructuring
Microsoft and Meta are focusing on non-regrettable attrition, removing underperforming employees.
Meta’s CEO, Mark Zuckerberg, announced that layoffs would become an annual process based on performance reviews. (Business Insider)
4. Mergers & Business Strategy Changes
Salesforce continues to restructure post-pandemic, even after record profits.
Google (Alphabet) has offered voluntary buyouts instead of outright layoffs, aiming to create a profoundly committed workforce.
The Global Impact of Layoffs in 2025
The mass layoffs of 2025 extend beyond individual companies and industries, shaping labor markets, economic trends, and geopolitical dynamics.
1. Tech Industry Slowdown: A Shift from Hypergrowth to Efficiency
The biggest job losses are concentrated in the technology sector, signaling an end to the hiring boom of the past decade.
Between 2020 and 2022, tech companies aggressively expanded, anticipating sustained demand, especially for cloud computing, e-commerce, and remote work solutions. However, by 2023, demand softened, and excess hiring led to massive restructuring. This trend will persist in 2025, with Meta, Microsoft, and Google tightening their workforces while investing in automation and AI.
Startups face even more challenges. Due to higher interest rates and reduced VC funding, many have shut down or drastically reduced their headcounts to survive.
2. Declining Consumer & Investor Confidence
Layoffs, particularly in high-profile companies like Microsoft and Meta, lead to reduced consumer spending and economic caution. When thousands of white-collar workers lose jobs, it impacts housing markets, retail sales, and luxury spending.
The stock markets react sharply to news of layoffs. Investors see workforce reductions as short-term cost-saving measures and red flags about growth prospects. With economic uncertainty, big-ticket purchases, home buying, and discretionary spending slow down, affecting real estate, hospitality, and automobiles.
3. AI & Automation Reshaping Employment Trends
AI-driven job cuts aren’t just a tech industry problem—they’re transforming entire industries:
Finance: Investment banks and hedge funds are replacing human analysts with AI-driven trading systems.
Retail & Customer Service: AI chatbots are reducing the need for call center employees and sales support staff.
Healthcare: While doctors remain indispensable, AI diagnostics and robotic surgeries are reshaping supporting roles like medical transcription and imaging analysis.
The result? Fewer traditional jobs but rising demand for AI-skilled professionals.
4. Political & Government Reactions to Mass Layoffs
Governments across the world are responding in different ways:
United States: Lawmakers propose tax penalties for companies conducting mass layoffs while earning record profits. Tech hubs like Silicon Valley and Seattle see rising joblessness, forcing state governments to expand unemployment benefits.
Europe: Stronger labor laws mean workers receive severance packages and job transition assistance.
France and Germany propose regulations requiring companies to offer AI training to displaced workers.
India & Southeast Asia: Countries like India and Indonesia benefit from Western firms outsourcing tech jobs instead of hiring domestically. The shift could create millions of new roles in offshore coding, AI support, and cloud computing.
5. Energy Sector & Industrial Layoffs Have a Broader Economic Impact
The layoffs in BP and Akzo Nobel indicate a slowdown in the manufacturing and energy sectors. Falling demand for fossil fuels and the transition to renewables lead to job cuts in traditional oil and gas companies.
In Germany, auto parts giant Continental’s ContiTech plans 580 job cuts, signaling weak demand in the automobile supply chain. Overall, manufacturing job losses often cause ripple effects, impacting supply chains and regional economies.
Analysts’ Take: What’s Next for the Job Market?
Market analysts warn that the layoffs of 2025 are not just cyclical adjustments but structural shifts in global employment.
1. Layoffs Will Continue as AI Becomes More Widespread
Companies will not stop layoffs in 2025; they may intensify. A report from Statista predicts that AI could eliminate up to 30% of job roles in customer service, content writing, and IT support by 2030. Meta’s Mark Zuckerberg has already hinted that performance-based layoffs could become an annual exercise.
2. Companies Will Focus on Leaner, More Profitable Models
The era of hypergrowth and reckless hiring is over. Firms are focusing on lean, high-efficiency, smaller, but more productive teams. Example: Microsoft’s performance-based layoffs show a shift toward rewarding only top performers and letting go of underachievers.
3. The Future of Jobs Lies in AI & Automation-Proof Skills
The fastest-growing roles will be AI development, cybersecurity, and renewable energy.
Job seekers will need to reskill to remain employable:
Cybersecurity Analysts: AI-generated threats are increasing, creating a demand for experts in digital security.
Data Scientists & AI Engineers: The AI boom makes machine learning engineers some of the most sought-after professionals.
Sustainability & Renewable Energy Jobs: As companies shift to green energy, jobs in solar, wind, and carbon capture technology will increase.
4. Governments Will Introduce Workforce Transition Policies
Countries will start investing in retraining programs for laid-off workers. The European Union is ahead in AI regulation, requiring firms to train displaced workers. In the U.S., federal agencies are pushing for tax incentives to encourage companies to hire AI-augmented workers instead of replacing them.
5. Investors Will Be Wary of Layoff-Driven Cost-Cutting
Initially, mass layoffs boost company profitsin the short term. However, investors are starting to question:
Are companies cutting too deeply, sacrificing long-term innovation?
Will smaller workforces struggle to keep up with competitors investing in AI-driven growth? The real test will be whether companies maintain profitability without compromising innovation and employee morale.
A Changing Workforce Landscape
The 2025 layoffs highlight a fundamental shift in employment trends worldwide. While some sectors shrink due to automation and economic challenges, new opportunities are emerging in AI, cybersecurity, and sustainable industries. For employees, the key takeaway is clear: Adaptability is critical.
The future workforce must be highly skilled, tech-savvy, and AI-augmented. Reskilling & lifelong learning will become essential survival tools in an evolving job market.
Layoffs may provide short-term relief for companies, but long-term growth depends on retaining and retraining talent for the AI-driven economy. As we move deeper into 2025, the global job market will continue evolving—offering challenges and new opportunities for those prepared to adapt.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
India’s car market has changed a lot in recent years, and the country’s passion for cars is taking on a new meaning, with SUVs emerging as the top choice. This change is fueled by shifting consumer preferences and economic growth.
More people, especially the growing middle class, see owning a car as a symbol of freedom. The number of cars on Indian roads jumped from 19 million in 2012 to 49 million in 2022, and car ownership per 1,000 people doubled from 17 to 34. But as cars become more common, their meaning is changing, reflecting a shift in how Indians view mobility and status.
SUVs now dominate the Indian car market, accounting for over 50% of passenger vehicle sales in the 2023-24 fiscal year—a major jump from previous years. Just five years ago, hatchbacks accounted for one in two cars sold in India. Today, that number has dropped to one in four, while SUVs now make up more than 50% of new car sales.
This shift is highlighted by Hyundai Motor, a South Korean company whose local arm recently raised $3.3 billion in India’s largest-ever IPO.
Factors Driving the SUV Boom
The Role of Road Conditions in Boosting SUV Sales
One significant factor driving the surge in SUV sales is the state of India’s road infrastructure. Outside major cities, poorly maintained roads with large potholes and uneven surfaces are common. Additionally, across the country, road-traffic departments often install poorly designed speed bumps that can wreak havoc on both vehicles and passengers.
Given these conditions, ground clearance—the distance between a vehicle’s underside and the road surface—has become a crucial factor for Indian car buyers. SUVs, with their higher ground clearance, are seen as the ideal choice to navigate these challenging road conditions without causing damage to the vehicle or compromising comfort.
Improved Road Infrastructure Fueling the SUV Boom
Despite the poor condition of roads in and around major cities, the rapid development of high-quality roads and highways across India has played a key role in the country’s SUV boom. In recent years, India has added tens of thousands of kilometers of well-built motorways, which has significantly enhanced travel opportunities. As a result, weekend getaways and day trips have become increasingly popular.
According to Mahindra & Mahindra, a leading SUV manufacturer in India, a strong love for road trips has developed, with driving holidays now considered the most affordable vacation option. Also, This shift in consumer preferences is evident in the remarkable success of Mahindra’s latest rugged off-roader, which received 176,000 bookings within the first hour of its release.
Safety Becomes a Key Priority for Indian Car Buyers
A significant shift in car buyers’ priorities is safety. Until recently, safety wasn’t a top concern, but the Tata Nexon changed that. This compact SUV was the first to earn a five-star safety rating in international tests, and it was prominently highlighted. Buyers began valuing safety over other features, especially with highways allowing higher speeds. The Nexon’s success made it India’s best-selling SUV from 2021 to 2023, and safety ratings now feature heavily in car ads.
Shifting Priorities in Car Purchases
A significant shift in car buying habits is the growing emphasis on value over cost. According to industry experts, earlier, buyers focused on mileage, but now they are more willing to pay extra for a better experience. The average price of a car increased by a third in the past five years, from 491,000 rupees to 659,000 rupees, driven by both rising car prices and a demand for higher-quality vehicles.
Rising Demand for Premium Features
The shift is also reflected in consumer choices, with top-end variants of cars now making up two-thirds of sales, up from less than half before the pandemic. This mirrors trends in other products, like mobile phones, where premium models such as the iPhone are seeing growth. The availability of easy financing allows buyers to focus on affordable monthly payments rather than high upfront costs.
Technology and Entertainment Drive Purchases
Consumers are also increasingly prioritizing technology in their cars. With the spread of affordable internet, even budget car buyers expect features like touchscreen consoles. Given the time spent in traffic, entertainment and tech features are now critical in purchasing decisions, and more decisions are now based on the tech offered in cars.
Government Support and Evolving Taxation Policies
Government initiatives, such as the implementation of the Goods and Services Tax (GST), have streamlined the tax process, making SUVs more affordable for consumers. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which offers incentives for hybrid and electric models, has also prompted manufacturers to expand their portfolios with eco-friendly SUVs.
Advancements in Automotive Technology
Indian buyers are increasingly seeking vehicles that prioritize safety, fuel efficiency, and advanced technology. Modern SUVs cater to these preferences with features like driver assistance systems (ADAS), premium interiors, and panoramic sunroofs. In addition, advancements in engineering have made SUVs more fuel-efficient, addressing concerns over higher operational costs.
Diverse Offerings:
Automakers are introducing a wide range of SUV models across various price points, making them accessible to a broader segment of the population.
The surge in SUV sales has had a noticeable impact on other vehicle segments. The share of hatchbacks, once the staple of Indian car buyers, has declined to around 28% in FY24, down from higher percentages in previous years. Similarly, sedans have seen their market share slip to single digits, closing the year at 9% compared to 14.3% at the end of FY20.
Recognizing the growing demand for SUVs, both domestic and international automakers are expanding their SUV portfolios:
Maruti Suzuki: Traditionally known for its small cars, Maruti Suzuki has increased its focus on the SUV segment, with SUVs now accounting for approximately 22% of its sales, up from 11% at the end of the previous fiscal year. timesofindia.indiatimes.com
Hyundai Motor India: Hyundai has been actively introducing new SUV models to cater to the rising demand. The company plans to launch its first locally-produced electric SUV by early next year and at least two gasoline-powered models by 2026. This strategy aims to regain market share amidst growing competition from domestic manufacturers. reuters.com
Mahindra & Mahindra: Mahindra has experienced a significant boost in SUV sales, with a 19% increase in volumes, significantly outpacing the industry’s overall decline. The company’s SUV portfolio now makes up over 50% of India’s car sales. reuters.com
Challenges Ahead
While the SUV segment is booming, automakers face challenges such as:
Intensifying Competition: The surge in SUV demand has led to increased competition among manufacturers, prompting continuous innovation and frequent model launches.
Rising Costs: Higher raw material costs and increased expenses have led to higher car prices, which could impact consumer purchasing decisions. For instance, Maruti Suzuki faced a 15.5% increase in expenses, with inventory clearance costs reaching 6.8 billion rupees. reuters.com
Economic Factors: Inflation and other economic factors can influence consumer spending power, potentially affecting the sustained growth of the SUV market.
The Road Ahead
The Indian automotive market is clearly gravitating towards SUVs, driven by changing consumer preferences and economic developments. As automakers adapt to this trend by expanding their SUV offerings, it will be interesting to observe how the market evolves and how other vehicle segments respond to this shift.
In conclusion, India’s transformation into an SUV-centric market reflects broader changes in consumer behavior and economic conditions. As the country continues to develop, the automotive landscape is likely to see further shifts, with SUVs playing a central role in shaping the future of mobility in India.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Rising disposable incomes, improved road infrastructure, and a growing preference for larger, safer vehicles are fueling SUV demand. SUVs project status and offer better ground clearance for varied terrain, making them appealing to Indian consumers.
How big is the SUV market expected to become?
The Indian SUV market is projected to more than double, growing from $18.13 billion in 2024 to a substantial $33.85 billion by 2030. This indicates a strong and sustained growth trajectory for the segment.
Which SUV segments are leading the growth?
Compact SUVs and mid-size SUVs are currently the fastest-growing segments. They offer a balance of size, features, and fuel efficiency, making them suitable for both city driving and occasional highway trips.
What impact will this growth have on the auto industry?
The increasing popularity of SUVs will likely lead to increased investments in SUV production and development by automakers. It may also impact the production of smaller car segments as consumer preferences shift.
Are there any challenges to this growth?
Rising fuel prices, increasing traffic congestion in urban areas, and parking challenges could pose some limitations to the rapid growth of the SUV segment in the long run.
India’s financial scenario is changing, especially with SEBI (The Securities and Exchange Board of India) stepping in to regulate financial influencers, or “finfluencers.” The goal is simple—ensure investors get reliable, unbiased advice and protect them from misleading information.
SEBI has issued a circular to clarify rules for regulated entities and individuals, aiming to stop illegal advisories posing as stock market education. As a result, many finfluencers are experiencing declining brand deals and overall influence.
This crackdown has caused brand deal rates to drop by 40-60%. Brands are now shifting their focus to long-term financial products and educational content, preferring to collaborate with influencers who offer reliable, risk-free advice on mutual funds, SIPs, and retirement planning. Source: moneycontrol.com
In this article, we’ll explore the impact of SEBI’s regulations on finfluencers and provide guidance on selecting a financial advisor who aligns with your needs.
SEBI’s Crackdown on Finfluencers
Social media has led to the rise of finfluencers—people who share financial advice on platforms like YouTube, Instagram, and Twitter. While some provide useful insights, others, without proper qualifications, may spread misleading information. To protect investors, SEBI wants finfluencers to register and follow set guidelines. It also plans to ban unregistered finfluencers from promoting mutual funds and stockbrokers. Source: moneycontrol.com
SEBI’s Key Restrictions
SEBI has now banned two major activities for unregistered influencers:
Giving investment advice, directly or indirectly, without SEBI approval.
Making claims about returns or performance without SEBI authorization.
SEBI’s Rules Impacting Financial Influencers
SEBI Bans Unregistered Investment Advisors
A circular issued on January 29, 2025, bans unregistered individuals from giving investment advice. This step aims to protect investors from misleading information and highlights the need for advice from registered professionals.
Earlier Restrictions on Unregistered Entities
While an earlier circular on October 22, 2024, had already restricted associations between registered and unregistered entities, this latest update aims to eliminate the practice of unregulated financial advice disguised as stock market education.
According to experts, with SEBI mandating a three-month delay on stock price data, financial influencers who rely on real-time updates may lose relevance.
Regulatory Measures Aim to Curb Misinformation
These regulatory measures are designed to curb the spread of inaccurate financial advice and ensure investors can access reliable information. Consequently, finfluencers who fail to comply with these guidelines may lose brand partnerships and credibility.
Industry experts highlight that brand deals will take a hit since influencers can no longer directly promote mutual funds or specific stocks. This means a drop in both affiliate and promotional income. Many influencers earn a commission of around 2–5% when investors use their referral links, and this revenue stream will likely shrink.
Many followers turn to financial influencers for daily market updates. Without real-time content, engagement is expected to decline. People might not follow them as much as before, leading to fewer brand deals. Traders who depend on real-time updates may feel disconnected, affecting influencer-follower relationships.
Impact on Brand Collaborations
Experts believe that outdated stock prices will impact influencer marketing. Many brands use influencers to attract active traders, and the new regulations disrupt this approach. SEBI’s oversight has led to a cautious approach from brands, reducing the number of deals for financial influencers.
Before these regulations, influencers offering live market updates and stock tips commanded high rates—often ₹1-3 lakh per post. However, SEBI’s clampdown has led to a 40-60% drop in brand deal rates. Source: Moneycontrol
Who Still Commands High Rates?
Finfluencers specializing in cryptocurrency, trading, or high-level financial planning still earn premium rates, ranging between ₹3 lakh and ₹12 lakh per collaboration. Experts also highlight how platform-based pricing varies—macro influencers might charge ₹1.5 lakh for an Instagram post, ₹2.5 lakh for a YouTube video, and ₹1 lakh for a Twitter post, depending on engagement levels.
Struggles for Smaller Finfluencers
Micro and mid-tier financial influencers are facing significant challenges. Many have seen their business models collapse due to the new regulations, forcing influencers and brands to rethink their approach. Brands are also reassessing their strategies to stay compliant with SEBI guidelines.
The Numbers Behind the Shift
According to Qoruz data, as of December 2024, India had 232,000 finance influencers. Only 5-10% of them focused on stock-market-related content. That means just 11,000 to 23,000 influencers discussed stocks, many of whom had already adapted to SEBI’s earlier restrictions.
As the influencer marketing landscape evolves, content creators and brands must navigate these new regulations carefully, focusing on compliance and long-term financial education rather than short-term market updates. Source: Moneycontrol
Adapting to New Guidelines
With SEBI’s evolving regulations, many financial influencers have successfully shifted their focus to broader financial literacy topics, such as smart money management, thrift strategies, and saving techniques. This change has also opened new brand collaboration opportunities beyond the stock market.
Exploring New Revenue Streams
According to experts, many financial influencers have started offering paid courses on topics like:
Subscription-based courses have emerged as a key monetization model. Additionally, influencers collaborate with asset management companies (AMCs) to conduct financial education sessions, creating valuable learning opportunities while diversifying their revenue streams.
Not all influencers find this transition easy. Many followers rely on financial influencers for daily stock market updates. Their audience mainly consists of traders or active investors. Shifting to broader financial content might reduce engagement and brand deal rates.
A Positive Step for Investor Protection
While financial influencers adjust to these changes, SEBI’s regulations are seen as a much-needed safeguard for retail investors. Experts believe this move will prevent individuals from losing money by following unregistered influencers for stock tips.
This move will promote responsible financial education and allow credible creators to thrive. It will also focus on fact-based, long-term financial education rather than speculative stock tips.
The Importance of Choosing the Right Financial Advisor
With these regulatory changes, seeking financial advice from qualified professionals is more crucial than ever. A competent financial advisor can help you navigate complex financial decisions, plan for your future, and ensure that your investments align with your goals and risk tolerance.
Steps to Select the Right Financial Advisor
Identify Your Financial Goals
Before seeking an advisor, clearly define your financial objectives. Are you planning for retirement, saving for a child’s education, or looking to grow your wealth? Understanding your goals will help you find an advisor whose expertise aligns with your needs.
Verify Credentials and Registration
Ensure the advisor is registered with SEBI as a Registered Investment Advisor (RIA) or holds relevant certifications. Registered advisors must adhere to regulatory standards, providing an added layer of security for investors. moneycontrol.com
Understand the Advisor’s Fee Structure
Financial advisors may charge fees in various ways, including:
Fee-Only:
A flat fee or hourly rate for their services.
Commission-Based:
Earnings are based on the financial products they sell.
Fee-Based:
A combination of fees and commissions. Understanding the fee structure is essential to identify potential conflicts of interest and ensure transparency. moneycontrol.com
Assess Experience and Expertise
Look for advisors with a proven financial planning and investment management track record. Experience in handling diverse financial situations can be invaluable. Don’t hesitate to ask for references or case studies demonstrating their expertise.
Evaluate Communication and Compatibility
Effective communication is key to a successful advisor-client relationship. Your advisor should be able to explain complex financial concepts in simple terms and be responsive to your questions. Additionally, ensure that their communication style aligns with your preferences.
Check for Fiduciary Responsibility
Prefer advisors who operate under a fiduciary duty, meaning they are legally obligated to act in your best interest. This ensures that the advice you receive is unbiased and focused on your financial well-being.
Seek Transparency and Disclosure
A trustworthy advisor will be transparent about their investment strategies, potential risks, and any affiliations that might influence their recommendations. Full disclosure helps build trust and allows you to make informed decisions.
Consider the Advisor’s Approach to Financial Planning
Understand how the advisor develops financial plans. Do they offer comprehensive planning that covers various aspects of your financial life, or do they focus solely on investments? Ensure that their approach aligns with your expectations and needs.
Review Client Testimonials and Reviews
Seek feedback from current or former clients to gauge the advisor’s reliability and effectiveness. Online reviews and testimonials can provide insights into the advisor’s reputation and client satisfaction.
Conclusion
SEBI’s recent actions to regulate finfluencers highlight the importance of obtaining financial advice from qualified and trustworthy sources. By following the steps outlined above, you can select a financial advisor who meets regulatory standards and aligns with your personal financial goals.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
SEBI’s crackdown on finfluencers stems from concerns about misleading financial advice and market manipulation. Paid promotions of stocks without proper disclosures or qualifications were rampant, leading to investor losses. This action aims to protect investors and maintain market integrity.
How are brand deals affected?
Finfluencers’ brand deals, particularly those involving stock promotions, are expected to decline significantly. Companies will be wary of associating with individuals facing SEBI scrutiny. This reduces finfluencers’ income streams and changes influencer marketing dynamics in the financial sector.
What are the live stock price restrictions?
SEBI restricts finfluencers from providing live stock price updates or recommendations during their promotional content. This measure aims to curb real-time market manipulation and prevent investors from making impulsive decisions based on potentially biased information.
Who is considered a “fininfluencer”?
SEBI’s definition of a finfluencer broadly covers anyone providing financial advice or commentary on social media platforms, regardless of their follower count. This includes registered advisors and unregistered individuals offering opinions on stocks, investments, or market trends.
What are the potential consequences for influencers?
Finfluencers violating SEBI regulations could face penalties, including fines, bans from the securities market, and even legal action. Brands collaborating with such individuals may also face reputational damage. Increased regulatory oversight is expected in the finfluencer marketing space.
On January 30, 2025, Tata Motors’ share price plunged nearly 9%, hitting a 14-month low. The sharp decline was driven by concerns over the performance of its luxury vehicle arm, Jaguar Land Rover (JLR), following the company’s third-quarter financial results.
Margin pressures and weak Q3 earnings, largely due to a demand slowdown, especially in China, prompted brokerages to slash price targets, with some lowering them to ₹660. Jefferies set the lowest target among analysts at ₹660, as Tata Motors’ stock has already plunged 42% from its peak. CNBCTV18/Moneycontrol
Tata Motors reported a 22% year-on-year decline in its consolidated net profit, reaching ₹5, 578 crore for the quarter ending December 2024 as compared to ₹7,145 crore for the same quarter, last year. Despite a sequential recovery, the weak performance was primarily due to margin pressures and sluggish Jaguar Land Rover (JLR) volumes.
Revenue grew by just 2.7% to ₹1,13,575 crore, supported by a modest rise in overall sales. Analyst’s polls had projected revenue at ₹1,16,873 crore and net profit at ₹6,525 crore, indicating that Tata Motors fell short of expectations on both fronts.
The other significant factor in this shortfall was JLR’s performance, where the profit before tax decreased by nearly 17% year-over-year to 0.52 billion dollars. This division alone accounts for about three-quarters of Tata Motors’ overall pre-tax profit. reuters.com
Challenges in Key Markets
JLR faced notable challenges in crucial markets:
China: The company highlighted weak demand in China but expressed optimism for improvement in the current quarter.
Europe: Analysts pointed out that European consumers increasingly opt for more affordable local alternatives, posing a challenge for JLR’s market share.
These regional difficulties have raised concerns about JLR’s growth prospects and profit margins.
Analysts’ Reactions and Downgrades
In response to the earnings report and the cautious outlook provided by Tata Motors’ management, several brokerage firms adjusted their positions:
Nomura: Downgraded Tata Motors from “buy” to “neutral,” citing potential demand risks for JLR and uncertainties in global auto demand.
Morgan Stanley: Lowered its rating to “equal weight” from “overweight,” noting that much of the positive news had already been factored into the stock’s price.
UBS: Maintained a “sell” rating, describing the third-quarter results as “underwhelming” and expressing concerns about JLR’s margin risks due to a weakening product mix.
These downgrades reflect apprehensions about Tata Motors’ ability to achieve its margin targets and navigate the evolving market landscape. cnbctv18.com
Domestic Market Performance
Within India, Tata Motors’ performance also faced challenges. The company’s local car sales increased by only 1%, below the industry average growth of 4.5%. This indicates that Tata Motors is growing slower than its competitors in the domestic market. reuters.com
Investor Sentiment and Market Impact
The combination of lower-than-expected profits, challenges in key international markets, and a subdued domestic performance led to a decline in investor confidence. This was evident in the significant drop in Tata Motors’ share price, making it one of the top losers on the Nifty 50 index on that day.
Looking Ahead
Tata Motors has acknowledged the current challenges and remains vigilant, particularly concerning demand fluctuations in China and Europe. The company intends to monitor these markets closely and adjust strategies as needed.
However, analysts have expressed concerns about clarifying JLR’s growth trajectory and profit margins for the upcoming fiscal year. Given the present circumstances, achieving the previously set annual margin target of 8.5% is now considered ambitious.
Conclusion
In summary, Tata Motors is navigating a period of significant international and domestic challenges. The company’s ability to address these issues and adapt to changing market dynamics will be crucial in restoring investor confidence and achieving its financial objectives.
FAQs
Why did Tata Motors stock plunge?
Concerns about Jaguar Land Rover (JLR) demand and weak Q3 earnings triggered the stock’s sharp decline. Investors are worried about the impact of the global economic slowdown on luxury car sales.
What were the key concerns regarding JLR?
Slowing demand in key markets like China and Europe and rising input costs are impacting JLR’s profitability and raising concerns about its near-term performance.
How did Q3 earnings contribute to the fall?
The weak Q3 results, likely reflecting lower sales volumes and higher costs, disappointed investors and further fueled the sell-off in Tata Motors stock.
What does a 52-week low signify?
A 52-week low indicates the stock has reached its lowest price in the past year. This often signals negative investor sentiment and can lead to further selling pressure.
What should investors do?
Investors should carefully assess their risk tolerance and consider the long-term prospects of Tata Motors. It’s crucial to conduct thorough research and potentially consult a financial advisor before making any investment decisions.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
In a major step towards digital currency adoption, MobiKwik has rolled out a full-scale e-rupee wallet for Android users in collaboration with the Reserve Bank of India (RBI) and Yes Bank. This launch marks a significant milestone in India’s fintech sector, enabling users to easily transact with the country’s Central Bank Digital Currency (CBDC).
This follows the RBI’s April 2024 decision to allow non-banking institutions to access CBDC, expanding beyond banks. As of November 2024, MobiKwik, which holds a 23% share in PPI (Prepaid Payment Instrument) wallet transactions, was specially invited to join the project.
The e-Rupee (e₹) wallet is now available for all Android users, allowing peer-to-peer and merchant payments. It works seamlessly with UPI, letting users transact up to ₹50,000 daily, with a ₹10,000 limit per transaction. Source: Daily Excelsior/The Hindu Businessline
What is the e-Rupee?
The e-Rupee is India’s official digital currency, introduced by the Reserve Bank of India (RBI) as a digital version of the traditional rupee. Unlike cryptocurrencies, it is regulated and centralized, ensuring stability. The e-rupee complements physical cash by offering a digital alternative, making transactions easier and promoting financial inclusion.
Features of MobiKwik’s e-Rupee Wallet
MobiKwik’s e-Rupee wallet is designed with user convenience in mind. Key features include:
Seamless Transactions
Users can easily send and receive funds to other e-Rupee wallets. The UPI integration also enables transactions with regular bank accounts, connecting digital and traditional banking.
Peer-to-Peer and Peer-to-Merchant Payments
The wallet has a simple and user-friendly design, making it easy for everyone to navigate and use, no matter their tech skills.
E-Rupee Wallet Transaction Limits and Denominations
The e-rupee wallet currently offers a daily transaction limit of ₹50,000 and a per-transaction limit of ₹10,000. It supports various denominations, including 50 paise, ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, and ₹500 in e-rupee.
Access to E-Rupee Wallet
Existing MobiKwik customers who have completed their KYC can instantly access the e-rupee wallet. New users, however, will need to undergo video KYC verification before gaining access.
User-Friendly Interface
The wallet has a simple and user-friendly design, making it easy for everyone to navigate and use, no matter their tech skills
MobiKwik, which debuted publicly on the NSE and BSE in December 2024, has established a strong foothold in the digital payments sector. The company currently serves a vast user base of 167 million registered customers and caters to 4.40 million merchants across India. Source: thehindubusinessline
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has evolved beyond digital wallets to offer various financial services. Over the years, it has expanded its portfolio to include credit services, investment options, and insurance products, positioning itself as a comprehensive fintech platform.
How to Get Started with MobiKwik’s e-Rupee Wallet
For Android users eager to experience the future of digital transactions, getting started is straightforward:
Download the App:
Visit the Google Play Store and search for the MobiKwik app. Ensure it’s the latest version to access the e-Rupee wallet features.
Registration:
If you’re new to MobiKwik, sign up using your mobile number. Existing users can log in with their credentials.
Activate the e-Rupee Wallet:
Within the app, navigate to the e-Rupee section and follow the on-screen instructions to activate your digital wallet.
Add Funds:
Link your bank account or use UPI to add funds to your e-rupee wallet.
Start Transacting:
You’re now ready to send and receive e-Rupee seamlessly.
The Significance of MobiKwik’s Initiative
MobiKwik’s introduction of the e-Rupee wallet is more than just a new feature; it’s a step towards a digitally empowered India. By facilitating easy access to the CBDC, MobiKwik is:
Promoting Financial Inclusion: Digital wallets like this ensure that even those without traditional banking access can participate in the digital economy.
Enhancing Transaction Efficiency: Digital transactions reduce the need for physical cash, leading to faster and more secure payments.
Supporting the RBI’s Vision: By promoting the e-rupee, MobiKwik aligns with the RBI’s goal of a less-cash economy, paving the way for broader CBDC adoption.
Security Measures in Place
Understanding the importance of security in digital transactions, MobiKwik has implemented robust measures to protect users:
Data Encryption: All transactions are encrypted, ensuring user data remains confidential.
Two-Factor Authentication (2FA): An added layer of security requiring users to verify their identity during critical actions.
Regular Audits: Routine security audits are conducted to identify and rectify potential vulnerabilities.
Looking Ahead: The Future of Digital Currency in India
The launch of MobiKwik’s e-Rupee wallet is a testament to the rapid evolution of India’s financial ecosystem. As more users and merchants adopt digital currencies, we can anticipate:
Wider Acceptance: Increased merchant adoption of e-Rupee payments, making it a common transaction method.
Innovative Financial Products: Development of new financial services tailored around digital currencies.
Regulatory Developments: Continued efforts by authorities to create a conducive environment for digital currency growth.
Conclusion
MobiKwik’s full-scale e-rupee wallet for Android users is a significant leap toward a digital-first economy. By embracing this innovation, users can enjoy a more streamlined, secure, and inclusive financial experience. As digital currencies become more integrated into our daily lives, tools like MobiKwik’s e-Rupee wallet will play a crucial role in shaping the future of transactions in India.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
CBDC stands for Central Bank Digital Currency. It is the digital form of a country’s official currency, issued and regulated by the central bank. In India, it’s known as the e-Rupee. It functions like digital cash, enabling secure and instant transactions between individuals and businesses.
What are the benefits of using the MobiKwik CBDC wallet?
The MobiKwik CBDC wallet offers several advantages. It seamlessly integrates with existing MobiKwik accounts, making it easy to use. The wallet prioritizes security with enhanced features for safe transactions. The wallet’s availability on Android expands access to digital payments for a wider user base.
How can I get started with the MobiKwik CBDC wallet?
To use the MobiKwik CBDC wallet, update your MobiKwik app to the latest version. Locate the CBDC section within the app and follow the on-screen instructions to create your CBDC wallet. You can then fund your wallet by transferring an e-rupee from your linked bank account.
What are the supported use cases for the MobiKwik CBDC wallet?
The MobiKwik CBDC wallet supports a variety of use cases. Users can seamlessly utilize it for instant peer-to-peer transfers, sending money to friends and family. It also enables convenient merchant payments at participating stores. Additionally, the wallet can be used for various bill payments, such as utility bills and mobile phone recharges.
Is the MobiKwik CBDC wallet safe to use?
Yes, the MobiKwik CBDC wallet prioritizes user security. It employs robust security measures such as data encryption to protect user information. Two-factor authentication adds an extra layer of security for account access.
Central Depository Services Limited (CDSL) shares saw a sharp drop of nearly 12% after announcing their third-quarter (Q3) results for the fiscal year. The stock hit a three-month low of ₹1,242.50 on January 28, driven by lower-than-expected Q3 earnings.
CDSL reported a 21.5% rise in consolidated profit after tax, reaching ₹130 crore. Although its year-on-year income demonstrated notable growth, the quarter-on-quarter performance declined.
The company’s weaker performance fell short of market expectations, triggering a sell-off as investors expressed disappointment. Let’s explore the reasons behind this significant dip and what this means for the investors and the broader market.
CDSL’s Q3 Performance
CDSL, one of India’s leading securities depositories, reported lackluster financial results for the quarter ending December 2024. The company’s net profit and revenue growth failed to meet analysts’ estimates, which dampened market sentiment. Here are some of the key highlights of the results:
Strong Year-on-Year Growth, but Quarter-on-Quarter Decline for CDSL
CDSL reported a total income of ₹298 crore for Q3 FY25, reflecting a substantial year-on-year (YoY) increase of 26.3% compared to ₹236 crore in the same period last year.
On a standalone basis, the net profit for Q3 FY25 was ₹105 crore, reflecting a year-on-year (YoY) growth of 22.09%. However, it recorded a quarter-on-quarter (QoQ) decline, falling to ₹278 crore for the quarter ending December 2024, compared to ₹322 crore in the September 2024 quarter. Source: Economic Times/Screener
The profit also declined to ₹130 crore in the December 2024 quarter, compared to ₹162 crore in the September quarter, reflecting a 20% decrease. Source: Moneycontrol
Additionally, the number of net new demat accounts opened during the quarter was the lowest since Q4 FY24. New account openings in Q3 stood at 92 lakh, a decline from the 1.18 crore accounts added in September. Source: Moneycontrol
Market experts attributed the sell-off to several factors:
Earnings Miss:
The failure to meet earnings expectations was the primary driver behind the negative sentiment.
High Valuations:
CDSL’s stock was trading at relatively high valuations before the results, which magnified the impact of the earnings disappointment.
Sectoral Weakness:
Broader concerns about the depository sector, including regulatory changes and market activity levels, added to the pressure on the stock.
CDSL: A Pillar of India’s Market Infrastructure
CDSL plays a vital role as an Indian Market Infrastructure Institution (MII), enabling electronic holding and securities transactions while facilitating trade settlements. It serves many capital market participants, including depository participants, issuers, investors, RTAs, clearing corporations, and exchanges.
As India’s leading depository services provider, CDSL is globally recognized as the only listed depository in Asia, managing over 14.65 crore accounts.
CDSL Share Price Performance
In the past year, CDSL’s shares have risen by 54.85%. Over the last six months, the stock gained 12.03%, but it faced a minor decline of 3.41% in the past three months. However, CDSL’s returns dropped sharply by 24.14% in the last month.
What Analysts Say?
Analysts have offered mixed reactions to CDSL’s Q3 performance. While some believe the earnings miss is a temporary blip, others are more cautious about the company’s outlook. Here’s what they’re saying:
Near-Term Challenges: Brokerages highlight that slow revenue growth and margin pressures may continue in the short term due to macroeconomic challenges and regulatory uncertainties.
Long-Term Potential: Analysts are optimistic about CDSL’s future, which is driven by the growing use of demat accounts and a rising retail investor base in India.
Target Price Revisions: After the Q3 results, several analysts lowered their target prices for CDSL’s stock. One prominent firm, for example, reduced its target from ₹700 to ₹600, indicating a more cautious approach.
Investor Concerns and Sentiment
The steep drop in CDSL’s stock price has raised concerns among investors, particularly retail shareholders. Many question whether the current dip presents a buying opportunity or if the stock will face further downside.
Short-Term Uncertainty: The stock’s poor performance and lack of immediate growth triggers may discourage short-term investors.
Long-Term Growth: Long-term investors might see this dip as a chance to buy at lower prices, supported by strong growth prospects in India’s capital markets.
What Lies Ahead?
CDSL’s ability to navigate the current challenges will determine its trajectory. Key focus areas for the company include:
Enhancing Operational Efficiency: Streamlining operations and controlling costs will improve profitability.
Expanding Revenue Streams: Diversifying into new areas, such as value-added services, can help mitigate the impact of fluctuations in core revenue streams.
Leveraging Market Growth: As India’s capital markets continue to grow, CDSL can capitalize on the increasing investor participation and expanding financial instruments.
Conclusion
CDSL’s Q3 performance has undoubtedly disappointed the market, resulting in a sharp correction in its stock price. While the short-term outlook appears challenging, the company’s strong market position and long-term growth drivers offer hope for a recovery. For investors, the key will be to weigh the near-term risks against the long-term potential before making any decisions.
As always, staying informed and monitoring the company’s performance in subsequent quarters will be essential for making well-informed investment choices.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
DeepSeek, an AI app, made the world tumble in a single day. Tech-giant Nvidia lost $600 billion in market value in the biggest wipe-out in history, while the company CEOs lost over $20.1bn.
This Chinese startup has challenged industry norms, causing one of the sharpest financial market corrections a $589 billion valuation wipeout in a single day in recent history since the pandemic.
DeepSeek’s new AI model, developed with unprecedented efficiency and cost-effectiveness, has raised eyebrows and rattled the dominance of tech stalwarts like Nvidia, Microsoft, and Alphabet.
This blog unpacks how DeepSeek’s meteoric rise disrupted the tech ecosystem, how it hit Wall Street, and the future of AI innovation.
The Rise of DeepSeek
Founded just two years ago, DeepSeek has already managed to leapfrog industry giants with its latest large-language model (LLM). Dubbed the R1, this model boasts advanced processing capabilities at a fraction of the cost compared to its Western competitors. The release of its V3 model, containing 671 billion parameters, was completed in just 55 days for $5.58 million—a stark contrast to the billions spent by major players like OpenAI (CBS News).
Within hours of its debut, DeepSeek’s AI assistant became the most downloaded app on Apple’s App Store in the U.S., surpassing market leaders such as ChatGPT. Social media platforms lit up with amazement over the AI’s ability to answer complex queries, solve logic puzzles, and even generate code.
This widespread adoption saw servers crash due to overwhelming demand, leading the company to restrict registrations to China (Livemint).
The Numbers That Shocked Wall Street
DeepSeek’s breakthrough triggered a sharp selloff in tech stocks, sparking what many analysts have dubbed “AI Reckoning Day.” Nvidia, the pioneer of AI chips, suffered the most significant blow, with its shares plummeting 17% in a single day, erasing $593 billion from its valuation. CEO Jensen Huang personally lost $21 billion of his net worth (Financial Express).
The ripple effect spread globally. The Nasdaq Composite Index fell 4.7% in its steepest decline of 2025, wiping billions more in market capitalization from tech-heavyweights. The Nasdaq 100 closed with a decline of 3%, wiping out a year’s worth of gains and resulting in losses of up to $1 trillion in just one day. Companies in the energy sector, which anticipated benefiting from the surge in AI demand, saw their stock values drop.
Asian markets were equally impacted: Japan’s Nikkei 225 slid 2.3%, with Tokyo-based semiconductor suppliers like Advantest and Tokyo Electron experiencing steep declines of 10% and 5.3%, respectively (WSJ).
Tech Stocks Suffer
The Nasdaq index saw significant declines, with Broadcom Inc., a leading chipmaker, dropping 17.4%. Microsoft, which supports ChatGPT, followed with a decrease of 2.1%, and Google’s parent company, Alphabet, fell by 4.2%. Additionally, the Philadelphia Semiconductor Index (SOX), a key indicator for the tech industry, dropped almost 6%, highlighting a general concern about the prospects for established companies in the AI arena (Financial Express).
This investor exodus reflects growing doubts about whether the potential returns justify the significant investments in AI.
Social Media Uproar
The chaos spilled over to social media, where platforms like X (formerly Twitter) and Reddit were flooded with discussions about DeepSeek’s implications. Posts with captions like “DeepSeek has just rewritten the rules of AI development” and “Nvidia’s empire is shaking—are we witnessing the rise of a new tech superpower?” went viral.
A particularly noteworthy post on X read:
“In one day, a tiny Chinese startup managed to upend everything we thought we knew about AI. The tech world will never be the same again.”
Meanwhile, LinkedIn became the hub for industry professionals debating how DeepSeek’s innovations could democratize AI and whether the U.S. government would step in to regulate Chinese AI exports (Livemint).
Challenges: Limiting Growth or Strategic Play?
Despite its monumental success, DeepSeek has not been without its challenges. The company restricted registrations after an alleged cyberattack and has been accused of censoring politically sensitive content on its platform.
While this has raised questions about its commitment to transparency, DeepSeek has largely justified these measures as necessary to maintain operational stability (CBS News).
Critics argue that these restrictions might limit DeepSeek’s ability to compete in Western markets. Still, others believe this is a calculated strategy to solidify its dominance within China before taking on global competitors.
A Turning Point for AI and Wall Street
The emergence of DeepSeek has changed the game’s rules, proving that innovation is not confined to Silicon Valley. DeepSeek has shown the world that smaller players can disrupt even the most established tech empires by creating a cost-efficient, high-performance AI model.
For Wall Street, this is a stark reminder that the rapid pace of innovation can overturn the most bullish assumptions. For now, all eyes are on DeepSeek and its potential to reshape the AI landscape—not just in China but worldwide.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Eco Recycling Limited, a leader in the waste management sector, has announced a new chapter in its growth story. On January 23, the company revealed plans to raise funds through a Qualified Institutional Placement (QIP). This strategic move aims to bolster its operational capacity and unlock new opportunities in the rapidly evolving sustainability landscape.
The announcement follows a spectacular five-year journey, during which the stock delivered an astounding 2000% return to investors.
A Qualified Institutional Placement (QIP) is a capital-raising method tailored for publicly traded companies. It enables these companies to issue equity shares or securities to Qualified Institutional Buyers (QIBs), such as mutual funds, insurance companies, and other large institutional investors. Governed by the Securities and Exchange Board of India (SEBI), this mechanism ensures transparency and compliance while providing companies with an efficient way to raise funds without significantly diluting control.
Eco Recycling Limited’s filing detailed its intent to issue equity shares valued at ₹10 each (Source: Livemint). The company’s board approved the proposal and enlisted GYR Capital Advisors Pvt Ltd as the lead manager for the issue. Vidhigya Associates will serve as legal counsel to oversee compliance with SEBI regulations and the Companies Act 2013.
Stock Performance: A Star Performer
Eco Recycling Limited has been a beacon of success for investors, offering phenomenal returns over the years:
Five-Year Returns: Rs.34, providing a return of 2256% (Source: Screener.in).
One-Year Returns: Rs.387, providing a return of 104% (Source: Screener.in).
However, the stock’s year-to-date (YTD) performance shows a decline of 16.81%, indicating some recent market corrections. As of January 26, 2025, the stock closed at ₹807.40, down 2.78% from the previous session. It reached its 52-week high of ₹1,215.10 on August 29, 2024, and its 52-week low of ₹378 on January 25, 2024. The company’s current market capitalization stands at ₹1,558.02 crore (Source: Livemint).
The Secret Behind Eco Recycling’s Success
Eco Recycling Limited has positioned itself as a trailblazer in the waste management industry, leveraging innovative recycling techniques and sustainable practices. With the growing global emphasis on environmental conservation and the circular economy, the company has tapped into a market ripe for expansion. This combination of vision and execution has fueled its multibagger status, attracting investors seeking long-term growth.
Growth Through QIP
The QIP fundraising initiative signals Eco Recycling’s plan to scale new heights. The capital infusion may support technological advancements, operational expansion, and market penetration. Given the company’s track record, this move could lay the groundwork for continued growth in an increasingly critical industry of global sustainability efforts.
While recent market corrections may give some investors pause, the company’s strong fundamentals and growth-oriented strategy try to position it as a compelling opportunity for those with a long-term perspective.
Key Takeaways
Eco Recycling Limited’s journey from an under-the-radar stock to a market leader underscores the importance of innovation, adaptability, and strategic planning. The announcement of a QIP is not just a financial maneuver but a step toward strengthening its position in the sustainability sector.
The company remains a promising prospect for investors. However, as with any investment, a thorough analysis of its performance and plans is essential to align with individual financial goals and risk tolerance.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is a Qualified Institutional Placement (QIP)?
QIP is a method for publicly listed companies to raise capital by issuing shares or securities to Qualified Institutional Buyers (QIBs), such as mutual funds and insurance companies. It is regulated by SEBI to ensure compliance and transparency.
Why is Eco Recycling Limited opting for a QIP?
The company plans to use the funds raised through QIP to support technological advancements, expand operations, and strengthen its market position in the sustainability sector.
How has Eco Recycling Limited performed in recent years?
Eco Recycling has delivered remarkable returns, with a 2000% increase over five years and a 104% rise in the last year. However, its stock is currently down 16.81% year-to-date.
Is Eco Recycling Limited a good investment?
The company’s strong fundamentals and growth prospects make it an attractive option for long-term investors. However, conducting thorough research and considering individual risk tolerance before investing is essential.
Who is managing the QIP process for Eco Recycling Limited?
The company has appointed GYR Capital Advisors Pvt Ltd as the lead manager and Vidhigya Associates as legal counsel for the QIP issue.
The electric vehicle (EV) revolution is no longer a vision of the future—it is today’s reality, driving significant transformations in the automotive industry. 2025 will be a game-changer for the electric vehicle (EV) industry, with a remarkable shift that could redefine its future.
EV launches in India are expected to outnumber petrol and diesel cars for the first time. Of the 28 vehicle launches planned for the year, 18 will be EVs. Major players like Kia, Maruti Suzuki, and Hyundai are gearing up for substantial growth, driven by government incentives and significant improvements in EV infrastructure.
The number of EVs scheduled for launch this year is nearly four times higher than the 4–5 models introduced over the past two years. It also surpasses the total vehicle launches (EV and ICE) of 11 in 2023 and 15 in 2024. Source: Economic Times
Growing Momentum in India’s Electric Vehicles Market
As per Fortune Business Insights, the Indian Electric Vehicles market is projected to grow significantly, rising from USD 3.21 billion in 2022 to an impressive USD 113.99 billion by 2029, with a compound annual growth rate (CAGR) of 66.52%.
In FY24, India recorded EV sales of 1.75 million units as compared to 1.52 million units in FY23, marking a robust year-on-year increase of 40.31%. Industry forecasts indicate that electric vehicle sales will grow at a compound annual growth rate (CAGR) of 43%, reaching 9.32 million units by 2030. Electric SUVs are expected to account for up to 61% of this demand.
To further accelerate EV adoption, the government has introduced the PM E-DRIVE scheme, allocating ₹10,900 crore (USD 1.30 billion) for its implementation from October 1, 2024, to March 31, 2026. This initiative focuses on enhancing EV adoption, developing charging infrastructure, and boosting Electric Vehicle manufacturing nationwide. Source: IBEF/Economic Times
Automakers Gearing Up for the EV Boom
The automotive industry is witnessing a paradigm shift, with traditional manufacturers and startups ramping up their EV offerings. Companies like Tata Motors, Mahindra Electric, and Ola Electric have already launched competitive models that cater to diverse market segments. Global players such as Tesla and BYD are also eyeing the Indian market, further intensifying competition.
In addition to launching new models, automakers invest in research and development to improve battery efficiency, reduce production costs, and enhance overall performance.
Industry experts predict that zero-emission vehicles will be the primary drivers of growth in 2025, contributing to over 50% of the incremental sales of 200,000 units in the passenger vehicle segment. As a result, the share of EVs in total car sales is projected to double, reaching 4% by the end of the year. Source: IBEF/ Economic Times
Boosting Charging Infrastructure For EV Adoption
One of the critical factors for the widespread adoption of Electric Vehicles is the availability of reliable charging infrastructure. As of now, India is making progress in this area, with public and private stakeholders collaborating to set up charging networks.
According to Industry experts, manufacturers are focused on expanding and advancing the electric vehicle market in India. Maruti Suzuki is taking proactive steps to support the upcoming launch of its first electric vehicle by installing fast chargers at its dealerships every 5-10 km in the top 100 cities.
Meanwhile, Hyundai, the Korean automotive giant, anticipates a significant rise in the share of electric vehicles in India’s car market. They expect India’s Electric Vehicles market share to grow to 15-20% by 2030, up from just 2% in 2024. They attribute this growth to government initiatives, like the reduced GST rate on EVs and the introduction of new products by several original equipment manufacturers (OEMs).
To tap into this potential, Hyundai has started assembling battery packs in India to keep prices competitive and has partnered with a local supplier to source cells for electric cars slated for release in the coming years. Additionally, the company is working towards setting up 600 fast chargers along major highways across India by 2030. Source: Economic Times
Government Policies Fueling the Transition
The Indian government’s commitment to electrification has been instrumental in paving the way for a robust EV ecosystem. Policies like the Production-Linked Incentive (PLI) scheme for
Advanced Chemistry Cell (ACC) batteries and tax benefits on EV purchases have made electric vehicles more accessible. Moreover, the government’s target of achieving 30% EV penetration by 2030 underscores its dedication to reducing carbon emissions and promoting green mobility.
Globally, countries like the United States, China, and those in the European Union have also implemented stringent emission norms and offered subsidies to encourage the adoption of electric vehicles. This global momentum is expected to ripple across markets, including India, propelling the sector toward exponential growth.
Sustainability and Environmental Impact
One of the primary drivers behind the shift to EVs is their potential to reduce greenhouse gas emissions significantly. According to experts, transitioning to electric mobility could help India achieve its climate goals, including reducing carbon intensity by 33-35% by 2030. EVs contribute to cleaner air and lower noise pollution, creating a more sustainable urban environment.
Using renewable energy, such as solar and wind power, to charge Electric Vehicles can increase their environmental benefits. As more renewable energy is added to the grid, electric vehicles’ carbon footprints will continue to decrease.
Challenges and the Road Ahead
Despite the promising outlook, the EV industry faces several challenges. Some of the hurdles include high initial costs, limited charging infrastructure, and dependency on imported components. Additionally, consumer perceptions regarding the reliability and longevity of EVs remain a concern.
These challenges can be overcome through collaboration between governments, private companies, and research institutions. For example, locally producing batteries and other parts could lower costs and create jobs, boosting economic growth.
The Role of Technology in Shaping the Future
The development of solid-state batteries, with higher energy densities and faster charging times, promises to revolutionize the EV landscape. These innovations are expected to address key concerns, such as range and charging time, making electric vehicles even more practical for everyday use.
The Rise of Electric Two-Wheelers and Commercial Vehicles
While passenger cars have dominated the EV narrative, electric two-wheelers and commercial vehicles are emerging as significant contributors to the market. In India, two-wheelers account for a substantial portion of vehicle sales, making their electrification a crucial step toward achieving sustainable mobility. Companies like Hero Electric and Ather Energy are leading the charge in this segment.
Similarly, the electrification of commercial vehicles, such as buses and trucks, is gaining momentum. These vehicles play a vital role in reducing emissions from the transportation sector and are supported by government incentives and corporate commitments to sustainability.
Consumer Awareness and Adoption
The success of the EV industry hinges on consumer acceptance. Educating consumers about the benefits of EVs—including lower operating costs, reduced environmental impact, and government incentives—is crucial. Test drives, advertising campaigns, and influencer endorsements can significantly build trust and drive adoption.
Driving into a Greener Future
Electric vehicles are at a turning point, with 2025 set to be a transformative year. Governments, automakers, and consumers are working together to move towards a sustainable, electric future. While challenges remain, technological progress, infrastructure, and policies offers hope. As we approach 2025, the goal of a cleaner, greener transportation system is becoming a reality. The EV revolution is not just about how we travel; it’s about creating a better future for the planet and future generations.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The Indian Premier League (IPL) is not just a cricketing phenomenon but a financial juggernaut.
From record-breaking broadcasting deals to lucrative sponsorships, the IPL generates immense revenue for multiple stakeholders, including the Board of Control for Cricket in India (BCCI), broadcasters, sponsors, and franchise teams.
This article explores how each entity profits from the cricket league tournament.
How Does the BCCI generate revenue from the Indian Premier League?
Media Rights
The BCCI’s most significant income source from the IPL is selling media rights. Companies pay astronomical sums for exclusive broadcasting and digital rights to reach the massive match-watching audience.
2018–2022: Star India purchased broadcasting rights for a whopping ₹16,347.50 crore. This deal gave Star exclusive TV and digital streaming rights.
2023–2027: The BCCI earned ₹48,390 crore from media rights, split between Viacom18 (₹23,575 crore for digital rights) and Star Sports (₹23,575 crore for television rights). This marked a historic rise in the league’s valuation.
Title Sponsorship
Title sponsorship is another significant revenue generator for the BCCI. Major corporations vie for this opportunity to align their brand with the league’s global appeal.
Tata Group: Paid ₹440 crore annually for 2018-22 to become the title sponsor.
Vivo: Previously signed a deal worth ₹2,199 crore for five seasons, emphasizing how valuable the title sponsorship is.
Franchise Fees
BCCI collects franchise fees from Indian Premier League teams annually. These fees are part of the agreements that allow teams to operate in the league. In return, franchises benefit from central revenue pools and exclusive branding opportunities.
Teams like Mumbai Indians and Royal Challengers Bangalore contribute significantly, bolstering the BCCI’s coffers.
Broadcasters: Raking in Ad Revenue
Imagine this: millions of cricket fans glued to their screens, every boundary and wicket sending a wave of excitement through the nation. This is the Indian Premier League, and it’s a goldmine for broadcasters.
Star India, the previous rights holder, reaped massive rewards, generating over ₹3,000 crore in advertising revenue during the 2021 season alone. But the landscape shifted in 2023 with the arrival of Viacom18. They recognized the digital revolution sweeping the nation and secured exclusive digital rights. Now, fans can stream matches on their phones, tablets, and laptops, opening up a whole new world of possibilities for advertisers.
Viacom18 capitalized on this, offering innovative ad formats, premium subscriptions, and interactive features like live stats and multiple camera angles to keep viewers engaged and advertisers happy.
Sponsors: Key Contributors to Indian Premier League’s Financial Success
Major Sponsors
Sponsors heavily invest in the Indian Premier League to capitalize on its global audience and market penetration.
Tata Sons: As the title sponsor, Tata enhances its brand visibility across all matches, connecting with millions of fans worldwide. According to ET reports, the Indian Premier League (IPL) has locked ₹1,485 crore in sponsorship deals. This announcement follows Tata Sons’ acquisition of the title sponsorship rights for ₹2,500 crore.
Associate Partners
Associate partners include smaller brands that invest in specific categories or advertising slots. Notable additions to the sponsorship roster include My11Circle, a fantasy sports platform, which outbid rival Dream11 with a ₹625 crore offer. Payment service provider RuPay has also joined as a sponsor with a ₹210 crore deal spanning three years.
Furthermore, online stock trading platform Angel One has secured a sponsorship slot, further strengthening the league’s sponsorship lineup. Etihad Airways sponsors the Chennai Super Kings, enhancing their international appeal while benefiting from global exposure.
Official merchandise is a growing revenue stream for team franchises. Fans purchase jerseys, caps, and memorabilia to show support for their teams. During Indian Premier League 2023, the MI app (Mumbai Indians) saw an extraordinary 300% increase in downloads compared to the previous season, while the Mumbai Indians website experienced notable growth, with a 60-100% rise in page views, sessions, and unique users.
Sponsorships and Advertising
Franchises negotiate sponsorship deals with brands for jersey placements, training kits, and stadium banners. Chennai Super Kings (CSK) has over 20 sponsors, including Gulf Oil and India Cements, contributing over ₹100 crore annually. These sponsorships often involve multi-year agreements, providing teams with stable income.
Matchday Revenue
Matchday revenue includes ticket sales, food, and beverage concessions, and stadium events.
Ticket Sales: Teams typically host 7-8 home matches each season, generating significant revenue from ticket sales. The ‘domicile’ franchise owner retains approximately 80% of this revenue, while the remaining 20% is shared between the BCCI and sponsors. Ticket sales alone contribute around 10-15% of a team’s total revenue. In addition, teams benefit from earnings generated through food and beverage sales during home matches at their stadiums.
Fan Engagement: Exclusive VIP experiences and fan zones enhance matchday income while boosting fan loyalty.
Revenue Distribution in Indian Premier League
Here’s a simplified table to highlight league’s major revenue streams:
Revenue Stream
Estimated Amount (₹ crore)
Beneficiaries
Media Rights
48,390
BCCI, Broadcasters
Title Sponsorship
440 (annually)
BCCI
Team Sponsorships
100+ (per team)
Franchise Teams
Conclusion
The cricket league’s business model is a well-oiled machine that benefits multiple stakeholders. With billions in revenue each season, it has become a financial powerhouse, setting a benchmark for sports leagues worldwide. Whether it’s BCCI’s strategic partnerships, broadcasters’ advertising windfalls, or teams’ diverse revenue streams, Indian Premier League proves that cricket is more than just a game—it’s a billion-dollar industry.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
How does the BCCI make money from the Indian Premier League?
The BCCI earns from media rights, title sponsorship deals, and franchise fees collected from the teams.
How much do broadcasters pay for broadcast rights?
For the 2023–2027 cycle, Viacom18 and Star Sports paid ₹48,390 crore for broadcasting and digital rights.
How do league teams generate revenue?
Teams earn from sponsorships, merchandise sales, matchday income, and share in central revenue pools.
Who are the major sponsors of the Indian Premier League?
Key sponsors include Tata Sons, Dream11, MyCircle11, RuPay, and AngelOne.
How do sponsors benefit from the Indian Premier League?
Sponsors gain massive brand visibility through televised matches, digital streams, and stadium branding.
Hindustan Unilever Limited (HUL), one of India’s leading FMCG giants, has made headlines with two significant developments. The company acquired a majority stake in Minimalist, a fast-growing skincare brand, for Rs 2,955 crore, and its impressive Q3 performance saw a 19% year-on-year (YoY) jump in profit after tax (PAT). Source: Economic Times/Moneycontrol
Despite reporting strong quarterly earnings, Hindustan Unilever’s share price dropped by 3.7% on January 23, 2025, due to a weaker-than-expected Q3 performance.
HUL reported impressive financial results for the third quarter of FY25 but could not meet market expectations. The company’s PAT jumped 19% year over year to Rs 3,001 crore, primarily due to a one-time gain of Rs 509 crore from the divestment of the Pureit business. Strong consumer demand across categories drove HUL’s revenue from operations to rise by 2%, reaching ₹15,195 crore.
Operating profit for Q3 rose by 1% YoY to ₹3,570 crore, while margins dipped by 20 basis points (bps) to 23.5%.
Beauty and Wellbeing Business:
The segment grew by 1%, but volumes declined in the low single digits. Hair care achieved mid-single-digit competitive volume growth, led by strong Dove, Tresemme, and Clinic Plus performances.
Home Care Business:
Sales in the home care segment increased by 6%, driven by high-single-digit volume growth in fabric wash and household care.
Personal Care Business:
The personal care segment recorded a 4% decline in sales with mid-single-digit volume drops. Strategic actions in skin cleansing resulted in market share gains during the quarter.
Packaged Foods Business:
Packaged foods saw mid-single-digit growth, led by robust performance in future core and market-maker segments. Ice cream revenue remained flat year over year. Source: Economic Times
HUL Acquires 90% Stake in Minimalist
Hindustan Unilever’s acquisition of a 90% stake in Minimalist signals a calculated move to strengthen its presence in the high-growth skincare segment. Minimalist, known for its science-driven and ingredient-focused skincare products, has carved a niche in the market with its transparent and affordable offerings.
The deal, among the largest in the direct-to-consumer (D2C) segment, is set to be finalized by the end of the June 2025 quarter.
According to Tracxn, a private markets data provider, founders Rahul Yadav and Mohit Yadav hold a majority stake of 61%. Peak XV Partners follows with 27.4% ownership, while Twenty Nine Capital holds 5.6%. The remaining stake is attributed to ESOPs. Source: Moneycontrol
Reinforcing Leadership in FMCG
By expanding into the high-potential skincare market, HUL diversifies its portfolio and future-proofs its business against evolving consumer trends. The Minimalist acquisition offers HUL an opportunity to integrate the brand’s innovative approach with its extensive reach and expertise.
What Lies Ahead?
Integration of Minimalist:
A smooth integration of Minimalist into HUL’s operations will be crucial for realizing the full potential of the acquisition.
Innovation-Driven Growth:
HUL’s focus on innovation, backed by its R&D capabilities, will be pivotal in driving long-term growth.
Sustainability Goals
Aligning with global sustainability trends, HUL’s expansion into transparent and ethical skincare through Minimalist resonates with its commitment to responsible business practices.
Conclusion
By tapping into the booming skincare market and maintaining strong financial performance, HUL continues to set benchmarks in the FMCG industry. HUL is strengthening its leadership by setting industry standards and adapting to challenges and opportunities with a focus on changing consumer needs.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
HUL reported a 19% YoY jump in net profit to Rs 3,001 crore in Q3 FY25, primarily driven by a one-time gain from the ‘Pureit’ business divestment.
How did HUL’s revenue perform in Q3?
HUL’s revenue from operations rose 1.79% YoY to Rs 15,195 crore in Q3 FY25, with underlying sales growth (USG) of 2% and flat underlying volume growth (UVG).
What was the impact of the Minimalist Stake Buyout?
The Minimalist Stake Buyout had a limited impact on HUL’s share price. Investors likely focused more on the company’s overall financial performance and future growth prospects.
What are the key factors driving HUL’s performance?
HUL’s performance is driven by market share, product innovation, brand building, effective distribution channels, and its ability to adapt to changing consumer preferences.
The allure of the silver screen has always been accompanied by intricate mechanisms that fuel its profitability.
From the glitz of premieres to the rise of re-releases, the cinema industry thrives on a complex interplay of creativity, marketing, and revenue diversification.
But who precisely reaps the financial rewards in this glittering world of storytelling?
While the stars and directors often grab the spotlight, the financial ecosystem of the movie business is vast, encompassing several players who contribute to a film’s success and profitability.
Production Houses: The Pioneers of Storytelling
Production companies act as the backbone of the cinematic experience, transforming scripts into screen-ready marvels.
Production houses such as Warner Bros., Yash Raj Films, and Disney are at the helm of the industry. They invest millions in making films, covering everything from pre-production to marketing.
For instance: “Tumbbad” (2024 re-release): Originally made on a modest budget of ₹5 crore, it grossed ₹40 crore upon its re-release. “Yeh Jawaani Hai Deewani” (2025 re-release): Estimated to earn ₹3 crore on its first day, showcasing re-releases’ profitability.
They shoulder the costs of pre-production, filming, and post-production while reaping rewards from ticket sales, streaming rights, and distribution deals.
These entities have increasingly adapted to the digital age, diversifying into over-the-top (OTT) platforms, where movies find a second life and additional income streams. Production houses earn through box office collections, TV rights, and OTT licensing.
Fashion, Set Designers, and Special Effects Teams: The Aesthetics Architects
Every frame of a movie is a curated masterpiece, and behind the dazzling visuals are designers and artisans who craft the costumes, sets, and special effects.
Fashion designers ensure characters’ wardrobes resonate with their personas while set designers create immersive environments. Behind every iconic movie is a team of designers who bring the visual spectacle to life.
Costume and set designers are often contracted for millions. For instance, the costumes in Padmaavat cost ₹12 crore, contributing significantly to the film’s grandeur and box office appeal.
Meanwhile, visual effects (VFX) teams enhance the surrealism, often transforming ordinary scenes into cinematic spectacles. Visual effects (VFX) have become indispensable. Companies like Red Chillies VFX and MPC are pushing the boundaries of technology.
“Baahubali 2” (The Conclusion): Allocated nearly ₹85 crore for VFX, with total earnings crossing ₹1,810 crore globally.
Diversification: Merchandise, Music, and Beyond
Merchandising Opportunities
Blockbusters like “Marvel’s Avengers” generate billions through merchandise. In India, movies like “RRR” have also tapped into merchandise as a growing trend.
Music and Licensing
The Indian film industry thrives on its music. Popular soundtracks often rake in royalties for years. T-Series, a music label giant, earns substantial revenue through film soundtracks on YouTube and streaming platforms.
Re-Releases: A Profitable Nostalgia Trend
Re-releases have emerged as a lucrative strategy, giving films a second opportunity to shine. Films like Yeh Jawaani Hai Deewani and Kabhi Khushi Kabhie Gham have demonstrated that nostalgia sells, drawing in die-hard fans and new audiences. The return to theatres also strengthens the relationship between filmmakers and distributors, ensuring mutual profitability.
Theatrical Releases: A Revival in Box Office Fortunes
Cinema halls, once the sole gatekeepers of cinematic experiences, have reinvented themselves in the post-pandemic era. Theatre chains like PVR-Inox have embraced re-releases as a core aspect of their revenue model.
Theaters are an integral part of the film economy. Chains like PVR-INOX in India and AMC globally generate massive revenues:
The PVR-INOX merger is set to make re-releases a significant business model, banking on nostalgic hits like “Rockstar” and “Kabhi Khushi Kabhie Gham.”
Blockbusters such as “Avatar: The Way of Water” earned over $2.32 billion globally, with theaters keeping roughly 50% of ticket sales.
Moreover, theatres now enhance their offerings with luxury seating, gourmet snacks, and advanced sound technologies to entice patrons, pushing box office revenues to new heights.
OTT Platforms: The New Powerhouses
OTT platforms like Netflix, Amazon Prime, and Disney+ have become essential players in the film business. These platforms generate substantial revenue by acquiring streaming rights for new releases and classics while providing filmmakers an alternative to traditional box office constraints.
Global revenue from OTT platforms is expected to reach $275 billion by 2025.
Bollywood films are increasingly being sold to OTTs post-theatrical release for significant sums. For example, “Shershaah” was sold to Amazon Prime for ₹110 crore.
OTT platforms also invest in original productions, creating a new revenue stream for filmmakers.
Conclusion
The movie business is a remarkable tapestry where art meets enterprise. As re-releases gain momentum and OTT platforms continue to thrive, the industry exemplifies resilience and adaptability. Behind every blockbuster is a symphony of talent and strategy, ensuring that the magic of cinema remains profitable for all involved.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
How much do production houses make from a successful film?
Production houses earn approximately 50-60% of box office collections, with additional revenue from OTT, TV rights, and merchandise.
How do theaters split the revenue with production houses?
Theaters typically keep 40-50% of ticket sales, with the remaining amount going to production houses and distributors.
Which department in filmmaking is the most expensive?
Special effects and VFX often top the list, especially in big-budget films. For example, “Avatar: The Way of Water” reportedly spent over $350 million on production, a large chunk of which went to VFX.
Major players have long dominated India’s fast-moving consumer goods (FMCG) sector with a widespread national and international presence. However, regional brands have carved out a significant market share by leveraging competitive pricing, localized operations, and deep-rooted connections with regional consumer bases. During the pandemic, their agility allowed them to capture notable market share from larger corporations.
The FMCG market’s total revenue is expected to grow at an impressive CAGR of 27.9% from 2021 to 2027, reaching nearly US$ 615.87 billion. In 2022, the urban segment contributed 65% to the overall annual FMCG sales, while rural India accounted for more than 35%, showcasing the sector’s diverse consumer base (ibef.org). Yet, the fiscal year 2023-24 has revealed vulnerabilities in the growth trajectory of regional players, with many experiencing a deceleration in sales growth. Source: ibef.org
The Ascendancy of Regional Brands
During the COVID-19 pandemic, supply chain disruptions severely impacted larger FMCG companies, allowing regional brands to enter the market. Their localized manufacturing and distribution networks enabled them to meet consumer demands efficiently.
Market Share and Growth:
Regional FMCG brands controlled over 40% of the market in categories like snacking and spices (Economic Times). Examples include Balaji Wafers in the snacks segment and MTR in the spices category.
Pandemic Advantage:
Proximity to local markets and reduced dependence on global supply chains provided a strategic edge, enabling faster replenishment and reduced costs.
Consumer Trust:
Many consumers favored regional brands for their perception of authenticity and alignment with local tastes.
Key Challenges Leading to Growth Deceleration
Despite their pandemic-era success, regional FMCG brands have encountered significant hurdles in sustaining rapid growth in the post-pandemic economic environment. Key challenges include:
Economic Slowdown
The broader economic slowdown in India has affected discretionary spending, impacting regional and national FMCG players. Lower rural incomes and higher inflation have reduced the purchasing power of a significant consumer base.
Declining Consumer Sentiment:
Economic data from FY 2023-24 indicates a contraction in FMCG sales volume growth of 6.4% during Q4 2024, reflecting a shift toward value-for-money products (NielsenIQ).
Operational Scalability
For many regional brands, the rapid revenue growth experienced during the pandemic posed challenges in scaling operations.
Supply Chain Limitations: Chandu Virani, founder of Balaji Wafers, highlighted operational inefficiencies and difficulties in sourcing raw materials as key constraints (Economic Times).
Production Challenges: Expanding manufacturing capabilities to meet heightened demand proved challenging, sometimes leading to supply shortages.
Commodity Price Volatility:
Fluctuations in the prices of key commodities, such as edible oils and grains, have disrupted cost structures.
Impact on Margins:
Although commodity prices declined in 2023, the benefits were insufficient to offset earlier inflationary pressures, squeezing profit margins.
Rising Competition from National Players
Large FMCG companies have begun to recover from pandemic disruptions, reclaiming market share by deploying aggressive marketing strategies and leveraging economies of scale.
Implications for the FMCG Sector
Shifting Market Dynamics
As regional brands grapple with operational and economic challenges, national FMCG players are positioned to regain some of their lost market share. This shift may lead to intensified competition across product categories.
Consumer Impact
Changes in market dynamics will likely affect product availability and pricing. Consumers may experience a shift toward either premium offerings from larger companies or more value-driven products from regional players.
Strategic Adjustments
Both regional and national brands must reassess their strategies to remain competitive. Areas of focus include:
Supply Chain Resilience: Investing in technology and infrastructure to streamline operations.
Sustainable Pricing Models: Balancing competitive pricing with profitability.
Localized Product Development: Tailoring products to meet evolving consumer preferences.
Conclusion
Regional FMCG brands in India have demonstrated remarkable resilience and adaptability, particularly during the pandemic, by capturing significant market share through localized operations and competitive pricing. However, the economic challenges of 2023-24 have highlighted the need for these brands to evolve. Addressing operational inefficiencies, enhancing supply chain capabilities, and navigating commodity price volatility will be critical to sustaining growth in a highly competitive market.
As the FMCG sector continues to evolve, the interplay between regional and national players will shape consumer experiences and industry dynamics in the years to come. For stakeholders across the industry, the current period represents both a challenge and an opportunity to innovate and adapt to a rapidly changing landscape.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What are regional FMCG brands?
Regional FMCG brands are companies that operate primarily within specific geographic areas, offering products tailored to local tastes and preferences. Examples include Balaji Wafers and MTR Foods.
How did regional FMCG brands grow during the pandemic?
Supply chain disruptions faced by larger corporations allowed regional brands to step in. Their proximity to local markets enabled faster replenishment, competitive pricing, and alignment with local consumer needs.
What challenges are regional FMCG brands facing in 2023-24?
Key challenges include economic slowdown, operational scalability issues, commodity price fluctuations, and increased competition from larger national players.
How are larger FMCG companies responding to regional competition?
National players are leveraging economies of scale, investing in marketing, and deploying aggressive strategies to regain market share.
What strategies can regional FMCG brands adopt to sustain growth?
To sustain growth, regional brands can focus on enhancing supply chain resilience, adopting sustainable pricing models, and continuing to innovate products based on localized consumer preferences.
How does the economic slowdown affect FMCG consumption?
Economic slowdown reduces consumer purchasing power, leading to a shift toward value-for-money products and a contraction in overall sales volume.
Reliance Industries Limited (RIL), a titan in India’s corporate landscape, has reported an 11.7% year-on-year increase in net profit for Q3 FY25, taking it to ₹17,394 crore. On the same day, its stock saw an intraday gain of 4.7%, reflecting robust investor sentiment. What’s driving these stellar numbers, and what does this mean for stakeholders?
Let’s look into the sectoral performance and underlying factors fueling this growth, breaking it down step-by-step to clarify this financial update.
The Numbers Speak: A Snapshot of RIL’s Performance
RIL’s consolidated revenue for Q3 stood at ₹2,67,186 crore, registering a year-on-year growth of 7.7%. This was complemented by an all-time high EBITDA of ₹48,003 crore, a 7.8% increase from the corresponding quarter of the previous year. Additionally:
Net Profit: ₹21,930 crore, up 11.7% YoY.
Reliance Retail Revenue: ₹90,333 crore, an 8.8% YoY increase.
Jio Platforms Revenue: ₹38,750 crore, up 19.2% YoY.
Oil-to-Chemicals (O2C) Revenue: ₹149,595 crore, a rise of 6% YoY.
While the O2C segment faced headwinds, RIL’s retail and digital services businesses showed robust growth, contributing significantly to the overall performance.
1. Reliance Retail: Dominance in the Consumer Space
Reliance Retail, RIL’s consumer-facing business, achieved an 8.8% Y-o-Y revenue growth to ₹90,333 crore in Q3 FY25. Sequentially, revenue grew by 18%, driven by productivity improvement initiatives and increased customer engagement during the festive season through new product launches and promotions. Key highlights include:
EBITDA Growth: EBITDA rose by 10% YoY to ₹6,632 crore, with margins improving by 20 basis points to 8.3%.
Store Network Expansion: By the end of the quarter, Reliance Retail’s store count had reached over 19,102, reflecting continued expansion.
B2C Grocery Push: The business saw significant traction in its B2C grocery segment, driven by strong demand and enhanced distribution capabilities.
E-Commerce and Promotions: Platforms like JioMart benefited from higher customer engagement, boosting online sales alongside in-store performance, particularly during the festive period. Source: Economic Tmes
2. Jio Platforms: Leading India’s Digital Revolution
Jio Platforms reported a 19.2% YoY increase in revenue to ₹38,750 crore, with EBITDA growing by 18.8% to ₹16,585 crore. The wireless subscriber base expanded to 482 million, supported by a tariff hike and increasing penetration of high-speed internet services. Key takeaways include:
ARPU (Average Revenue Per User): Improved to ₹181.70 from ₹181.7 in the previous quarter.
5G Rollout: Jio continued to rapidly deploy 5G services, further solidifying its leadership position in the telecom sector.
Digital Content Consumption: Increased data usage per customer boosted revenue.
Segment Revenue for 3Q FY25 increased by 6.0% Y-o-Y to ₹ 149,595 crore ($ 17.5 billion) primarily on account of higher production meant for sale as compared to 3Q FY24 which had planned maintenance and inspection shutdown of major units. EBITDA for 3Q FY25 increased by 2.4% Y-o-Y to ₹ 14,402 crore ($ 1.7 billion) following a strong volume-led growth and higher polymer deltas.:
Operational Efficiencies: Revenue growth was supported by robust domestic demand and product placement.
Diversification: Reliance’s move to explore alternative energy sources, including hydrogen, is expected to provide long-term stability to this segment.
The market’s positive reaction can be attributed to several factors:
Strong Overall Performance: The net profit and EBITDA exceeded analysts’ expectations, reinforcing investor confidence.
Retail and Digital Services Growth: Robust performance in these segments offset weaknesses in the O2C business, signaling diversified revenue streams.
Stock Resilience: RIL shares had been trading around ₹1,200 over the past few months despite a bonus issue in October. On Thursday, before the earnings announcement, the stock closed 1.31% higher at ₹1,268.70 on the BSE. This steady performance, coupled with the earnings beat, likely fueled the intraday surge.
Optimism Around Future Prospects: With ongoing investments in green energy, retail, and digital services, RIL continues to strengthen its position as a multifaceted conglomerate.
Reliance’s focus on clean energy is a long-term growth driver. The company’s investments in hydrogen, solar, and other renewable sources align with global trends and regulatory support for sustainable practices.
2. Retail Business Transformation
Reliance Retail’s continued expansion into Tier 2 and Tier 3 cities, coupled with the integration of offline and online channels, positions it as a dominant player in India’s retail landscape.
3. Jio’s 5G Ambitions
As Jio aggressively rolls out 5G services, it is poised to capture a larger share of India’s burgeoning digital ecosystem, which includes smart devices, IoT, and digital entertainment.
Balance Sheet Insights
RIL’s outstanding debt stood at ₹3.5 lakh crore as of Q3 FY25, reflecting an increase of ₹14,116 crore over the September quarter. Meanwhile, cash and cash equivalents rose by ₹15,089 crore to ₹2.35 lakh crore during the same period. This resulted in a net debt of ₹1.15 lakh crore, marking a decline of ₹973 crore compared to the previous quarter. The company’s net debt-to-EBITDA ratio improved to 0.6 in the December 2024 quarter from 0.66 in the September 2024 quarter. Source: Money Control
Capital Expenditure (Capex)
Capital expenditure (excluding amounts incurred towards spectrum) for the quarter ended December 2024 was ₹32,259 crore. This was slightly higher than the ₹30,102 crore reported in the year-ago period but lower than the ₹34,022 crore spent in the September quarter. The investments reflect RIL’s continued focus on expanding its capabilities across various business segments.
Challenges to Watch
Despite the strong quarterly results, certain risks persist:
Global Economic Uncertainty: Macroeconomic challenges and geopolitical tensions could impact demand and margins.
O2C Segment Volatility: Continued pressure on refining and petrochemical margins may weigh on future performance.
Competition: Rising competition in the telecom and retail sectors could affect growth trajectories.
Conclusion
RIL’s Q3 results underscore the strength of its diversified business model. Retail and digital services drive growth, while the O2C segment faces challenges. The stock’s 4.7% intraday gain reflects strong investor confidence in the company’s strategic direction and future potential.
As RIL continues to evolve, its ability to adapt to changing market dynamics and leverage opportunities in new-age businesses will be crucial.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
2024 was a challenging year, especially for the retail sector. While most struggled, one brand withstood it all and emerged as a clear winner. We are talking about Trent, a Tata Group company. With an extraordinary 133% return in 2024, Trent has outperformed expectations and industry benchmarks. The key driver of this success? Zudio, its value-fashion brand, has taken the Indian market by storm.
Let’s look closely at how Zudio’s strategy, execution, and unique approach have transformed Trent’s fortunes.
Zudio: Driving Trent’s Growth
While Westside was Trent’s flagship brand, the turnaround in Trent’s fortunes has largely been powered by Zudio. Operating in the competitive fast-fashion segment previously dominated by global giants like H&M, Zudio has carved a unique position by targeting India’s burgeoning middle-class consumer. Its strategy focuses on offering trendy, affordable fashion that aligns with local sensibilities—a formula that has resonated strongly in urban and semi-urban markets.
Zudio’s rapid expansion into tier-2 and tier-3 cities has been a significant growth lever. These underserved regions offer immense potential, and Zudio’s understanding of local fashion preferences has allowed it to deliver designs that appeal to a wide audience. By maintaining affordability without compromising style, Zudio has built a loyal customer base and filled a gap in the value-fashion segment.
Operational Excellence
Trent has leveraged its experience with Westside and its partnership with Zara to optimize Zudio’s operations. Key factors include:
Efficient Supply Chain: Zudio’s ability to refresh inventory every 15 days is a game-changer. This is much faster than the industry norm of 45-60 days, enabling Zudio to stay ahead of fashion trends and respond swiftly to consumer demand.
Cost Management: By focusing on private-label sales and bulk manufacturing, Zudio has limited the cost of goods sold (COGS) to 60-65%. This strategy ensures competitive pricing without sacrificing margins.
Store Productivity: Zudio’s smaller store size, averaging 9,500 square feet compared to Westside’s 21,000 square feet, enhances operational efficiency. With revenue per square foot at ₹16,300, Zudio generates double the industry average, making each store highly productive. Source: Mint
Zudio’s aggressive store expansion strategy has been central to its success. Its outlets have grown more than sixfold, from under 90 in FY21 to nearly 600 by FY25. Its Franchise-Owned, Company-Operated (FOCO) model has facilitated this explosive growth. This approach minimizes capital costs, accelerates store openings, and ensures quicker breakeven points for new locations.
Moreover, Zudio’s focus on influencer-driven marketing over traditional advertising has helped control expenses while maintaining a strong connection with its target audience. This cost-efficient marketing approach has amplified its brand presence without the need for extravagant campaigns.
Financial Contributions and Revenue Growth
Zudio’s impact on Trent’s financial performance is undeniable. In FY24, Zudio surpassed Westside to contribute around 50% of Trent’s revenues. While Westside’s relatively premium offerings deliver higher gross margins, Zudio’s profitability is supported by its faster inventory turnover and operational efficiencies.
In Q2 FY24, Trent reported a 39% year-over-year increase in consolidated revenue, reaching ₹4,157 crore. Net profit rose by 46.9% to ₹335.06 crore. This impressive growth in a sluggish economic environment highlights Zudio’s crucial role in driving Trent’s success.
Despite its stellar performance, Zudio faces significant challenges that could impact its future growth.
Expansion Risks: Zudio’s international debut with its first store in Dubai marks a bold move. While its Indian designs may appeal to Dubai’s Indian diaspora, the value-fashion proposition might not resonate as strongly in a market accustomed to premium offerings.
Similarly, Zudio’s foray into the competitive beauty segment with Zudio Beauty involves substantial investment risks with the potential for limited returns. If these ventures divert resources or underperform, they could slow down the expansion of Zudio apparel stores, leading to slower revenue growth and increased vulnerability to competition.
Rising Competition: The fast-fashion industry in India is witnessing growing interest from new players. Competitors like Reliance Retail’s Yousta, Aditya Birla Fashion and Retail’s Style-Up, and Shoppers Stop’s InTune are vying for a share of the value-fashion market. This intensifying competition could pressure Zudio’s revenue growth and margins, especially if input costs rise.
Market Valuation Risks: After a steep stock-price rally in 2024, Trent’s valuation has moderated to a P/E of 120.96 from a high of 139.77, which remains below the 5-year median of 150.56. These factors, coupled with global market uncertainties and a potential risk-off sentiment, could weigh on Trent’s stock performance in the medium term.
Zudio has successfully positioned itself as a leader in the value-fashion segment by:
Understanding Local Sensibilities: Zudio’s designs cater to the preferences of Indian consumers, offering trendy apparel that aligns with their tastes.
Timely and Affordable Offerings: By delivering in-vogue designs quickly and at competitive prices, Zudio has addressed the needs of budget-conscious shoppers.
Leveraging Consumer Trends: Zudio’s focus on the bottom of the pyramid has paid off, especially as many industries have shifted toward premiumization.
Future Potential
Analysts project a robust compound annual growth rate (CAGR) of 41% for Zudio’s revenues between FY24 and FY26. By 2026, Zudio may account for approximately 66% of Trent’s total revenue. With continued expansion and innovative strategies, Zudio is poised to remain a key growth engine for Trent. Source: Mint
Zudio’s success story exemplifies the power of understanding and serving the needs of a diverse customer base. Its strategic focus on value fashion, efficient operations, and rapid expansion have transformed it into a significant contributor to Trent’s extraordinary performance. However, the brand must navigate challenges like expansion risks, rising competition, and market valuation pressures to sustain its growth. As Zudio continues to scale new heights, it solidifies its position as a leader in the fast-fashion space and a critical pillar of Trent’s growth story.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
In the bustling global business landscape, giants often walk a tightrope, balancing their monumental ambitions with the necessity for strategic partnerships. At the forefront of this dynamic is Mukesh Ambani, the chairman of Reliance Industries and one of the wealthiest individuals. His name is synonymous with India’s industrial prowess, yet his ascent to the top is as much about external alliances as it is about entrepreneurial ingenuity.
The high-stakes global business world, even the mightiest need a helping hand. Mukesh Ambani, one of the wealthiest and most influential business magnates globally, has built an empire that spans petrochemicals, telecommunications, and retail.
However, the story of his business success is not just about innovation and strategy—it’s also about who funds the visionary behind Reliance Industries. This story begins not with his towering businesses but with the intriguing network of global investors who recently backed him, revealing a surprising dependency that even the most powerful must acknowledge.
The Powerhouses Behind The Funding
Recently, Reliance Retail received $1 billion from two big investors: the Abu Dhabi Investment Authority (ADIA) and the Qatar Investment Authority (QIA). They bought a 1.5% stake in Reliance Retail, which raised the company’s value to $100 billion. This investment shows that these investors believe in Ambani’s plans and highlights a growing trend of Middle Eastern money coming into Indian businesses.
ADIA is one of the largest sovereign wealth funds in the world, with over $700 billion in assets. It invests in many sectors, including real estate, technology, and energy. By investing in Reliance Retail, ADIA connects with a fast-growing company and sees potential for high returns in India’s booming market.
QIA is also a major investor, with over $450 billion in assets. It invests in real estate, financial services, and retail. By investing in Reliance Retail, QIA secures a stake in one of India’s largest retail companies, preparing for growth as the retail sector expands.
Businesses of Mukesh Ambani
Now, let’s look at Reliance Retail. Since it started in 2006, it has become a major player in Indian retail, with stores that offer everything from groceries to electronics. Reliance Retail has grown swiftly and has changed how people shop in India. With thousands of stores and an expanding online presence, it is well-prepared to cater to customers’ needs.
The $1 billion investment from ADIA and QIA is crucial for this growth. This funding helps Reliance Retail improve its products and services. With strong investors behind it, Reliance Retail is set for continued growth in the future.
Beyond Reliance Retail, Mukesh Ambani oversees various other business ventures. One of his most significant achievements was the launch of Jio in 2016, a telecommunications service that transformed how people communicate in India. Jio offered affordable data plans and free voice calls, attracting millions of customers quickly and becoming one of the largest mobile service providers in the country.
Ambani’s empire also includes a significant presence in the energy sector. Reliance operates one of the world’s biggest oil refineries in Jamnagar, Gujarat, processing millions of barrels of crude oil daily. This refinery supports India’s energy needs and exports refined products globally.
In addition, Ambani is expanding into the digital space. Reliance is developing e-commerce, digital payment solutions, and content creation through Jio Platforms. This includes streaming services and partnerships with global companies, enhancing the digital experience for consumers.
Mukesh Ambani is also focused on sustainability. Reliance Industries invests in clean energy solutions, such as solar energy, to address environmental challenges and meet the demand for greener energy sources.
Why Middle Eastern Funds Are Critical for Indian Startups
The increasing presence of Middle Eastern funds in Indian businesses goes beyond just Reliance Retail. As India’s economy grows, so does its attractiveness to global investors. For Indian startups and companies, tapping into this capital can be a game-changer.
Middle Eastern investors bring more than just money to the table—they bring global expertise, strategic connections, and a long-term vision that can help take Indian companies to the next level. For startups, these funds are becoming a critical source of support, helping to scale operations, enter new markets, and invest in innovative solutions.
In conclusion, India’s growing economy and vast consumer market offer ample opportunities for international investors. These investors gain a foothold in a high-growth market and position themselves for long-term returns. Thus, Indian entrepreneurs should consider looking beyond traditional markets like the US and Europe and exploring the growing pool of Middle Eastern investors eager to support Indian businesses.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Who are the major investors in Reliance Retail?
The major investors in Reliance Retail include the Abu Dhabi Investment Authority (ADIA) and the Qatar Investment Authority (QIA). Both investors contributed significantly to Reliance Retail’s growth by investing $1.5 billion for a 1.5% stake in the company.
What impact did the funding have on Reliance Retail’s valuation?
The funding from ADIA and QIA helped elevate Reliance Retail’s valuation to $100 billion, making it one of India’s most valuable retail companies.
Why are Middle Eastern investors increasingly interested in Indian businesses?
Middle Eastern investors are interested in Indian businesses because of the country’s rapid economic growth, large consumer market, and strategic importance in the global economy. With India becoming a tech, retail, and other industries hub, Middle Eastern funds are eager to invest in high-potential companies.
What role does Mukesh Ambani’s leadership play in attracting investors?
Mukesh Ambani’s leadership and vision have been pivotal in transforming Reliance Retail into a dominant player in the Indian market. His ability to innovate and adapt to changing consumer demands has made his companies attractive to global investors.
India’s financial landscape reached new heights in 2024, with a significant surge in mergers and acquisitions (M&A) activity and unprecedented fundraising in the equity capital markets. As global and domestic investors sought opportunities in one of the world’s fastest-growing economies, the year saw a remarkable 38% jump in M&A transactions, alongside record-breaking IPO activity that underlined India’s position as a major player in the global financial ecosystem.
Total Value: M&A deals surged to $109 billion in 2024, compared to $79 billion in 2023, driven by robust corporate strategies and investor confidence
Domestic Contributions: Indian corporates accounted for $48 billion of this activity, nearly doubling their participation from $26 billion the previous year (Economic Times).
High-Profile Deals:
Viacom and Disney Merger: This reshaped the entertainment sector.
Aster DM’s Acquisition of Quality Care: Strengthened its foothold in healthcare.
Bharti Group’s Stake in BT Group: Expanded its global telecommunications footprint.
Sectoral Focus: Key industries with heightened M&A activity included technology, industrials, infrastructure, and retail, reflecting evolving market dynamics and diversification strategies.
Driving Factors
Economic Growth: India’s strong GDP performance and increasing global recognition as an investment hub attracted domestic and international investors.
Private Equity (PE) Involvement: PE firms played a pivotal role in funding high-growth startups and acquiring stakes in established companies.
Conglomerate Ambitions: Companies like the Adani Group, Reliance Industries, and Birla Group actively pursued acquisitions to bolster their portfolios and expand into new markets.
Record-Breaking IPO Activity
India’s equity capital market experienced unparalleled growth in 2024, with total fundraising reaching $74 billion across initial public offerings (IPOs), follow-on public offers (FPOs), and qualified institutional placements (QIPs) (Economic Times).
Milestone IPOs:
Hyundai Motor India IPO: Raised $3.3 billion (₹27,870 crore), making it the largest IPO in India’s history, surpassing LIC’s 2022 record.
Vodafone Idea FPO: At $2.2 billion (₹18,000 crore), it became India’s largest FPO, eclipsing records by Yes Bank and ONGC.
Diverse Sectors: Fundraising spanned industries like automobiles, telecom, retail, capital goods, and e-commerce, accounting for 59% of the total issue size.
Market Dynamics: Over 300 IPOs were launched, reflecting retail and institutional investors’ strong appetite for equities.
Key Drivers of Equity Fundraising
Investor Sentiment: Confidence in India’s economic trajectory encouraged robust participation from domestic and foreign investors.
Sectoral Growth: Rising consumer demand, digital transformation, and infrastructure investments created lucrative opportunities.
Regulatory Support: Government reforms and policy initiatives made it easier for companies to access capital markets.
Looking Ahead: 2025 and Beyond
The momentum built in 2024 is set to continue, with an active IPO pipeline estimated at $35 billion. Major companies expected to go public in 2025 include:
LG Electronics India: A prominent player in consumer electronics.
Emerging Trends
Green and Sustainable Investments: Increasing focus on ESG (Environmental, Social, and Governance) factors will drive investments in renewable energy and sustainable technologies.
Tech-Driven Growth: Startups and tech companies will continue to attract significant funding, particularly in fintech, e-commerce, and AI.
Global Integration: Indian firms will likely pursue more cross-border deals, enhancing global competitiveness.
The year 2024 marked a turning point for India’s financial markets. The surge in M&A activity and equity fundraising underscores the country’s growing economic clout and its appeal to global investors. With robust market fundamentals, strategic corporate initiatives, and an ambitious IPO pipeline, India is poised to sustain this growth trajectory in 2025 and beyond, reinforcing its position as a leading global investment destination.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What drove the surge in India’s M&A activity in 2024?
India’s strong GDP growth, increased private equity participation, and strategic acquisitions by conglomerates were key factors driving the M&A boom.
Which were the largest M&A deals in 2024?
High-profile deals included the Viacom-Disney merger, Aster DM’s acquisition of Quality Care, and Bharti Group’s stake in BT Group.
How much did India raise through IPOs in 2024?
India’s equity capital market raised $74 billion in 2024, with notable IPOs such as Hyundai Motor India and Vodafone Idea setting records.
What industries led the equity fundraising efforts?
Automobiles, telecom, retail, capital goods, and e-commerce were the leading sectors, accounting for 59% of the total issue size.
What is the outlook for 2025 in India’s financial markets?
With an estimated $35 billion IPO pipeline, key trends like ESG investments, tech-driven growth, and global integration are expected to shape 2025.
Get answers to the most pertinent questions on your mind now.
No FAQs found in this category.
What is an Investment Advisory Firm?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Do we have SEBI registration as an Investment Advisory?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Why choose a SEBI Registered Investment Advisor?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
What is the Role of an Investment/Stock Market Advisory Firm in India?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Is investment advisory the same as wealth management?