Business

Tata Motors Limited (TML), a $29 billion global automobile manufacturer, stands as one of India’s most trusted names in mobility. With operations spanning 125 countries and a network of over 9,400 touchpoints, Tata Motors is deeply embedded in markets across the world, consistently delivering value to its customers.

As of March 2023, the company’s structure includes 90 consolidated subsidiaries, two joint operations, four joint ventures, and 11 equity-accounted associates. Tata Motors is believed to drive India’s mobility transition with smarter, safer, and more integrated vehicle solutions. It is India’s #1 commercial vehicle (CV) manufacturer and the leading electric vehicle (EV) brand, offering a comprehensive product portfolio under:

• Tata Commercial Vehicles (CV): India’s largest CV range, supporting cargo and passenger mobility.
• Tata Passenger Vehicles (PV + EV): Known for design, safety, and leading the electrification journey with an EV market share of over 55%.
• Jaguar Land Rover (JLR): A premium portfolio of iconic brands, Range Rover, Defender, Discovery, and Jaguar, crafted for the modern luxury segment.

Financial Picture:

Financially, Tata Motors recorded a revenue of ₹4,39,695 crore in FY2025, marking a new all-time high. The sectoral contribution in this was as follows:

Business Segment	Revenue Share	Share in Total Revenue	Sales Volume (units)
Commercial Vehicles	₹75,055 crore	17%	3,84,704
Passenger Vehicles	₹48,445 crore	11%	5,56,367
Electric Vehicles	₹8,187 crore	~1.86%	64,269
Jaguar Land Rover	~₹3,08,008 crore (£28,961 million)	~ 71%	4,00,898

In FY2025, the company’s revenue from domestic sales reached ₹1,18,630 crore, marking an ROCE of 17.6%. Additionally, the EBITDA of ₹57,649 crore and PBT (before exceptional items) of ₹34,330 crore positioned the company to become a net debt-free entity by FY2025. 

In FY2025, the company also approved the plan for the demerger of its business into two distinct listed entities: Tata Motors Passenger Vehicles Limited (TMLPV) and Tata Motors Commercial Vehicles (TMLCV). The move is designed to enable each business to operate independently, with dedicated strategies tailored to its respective market segments and growth priorities.

Tata Motors Passenger Vehicles Limited (TMLPV)

TMLPV will house the entire passenger vehicles business, which includes:

• Internal Combustion Engine (ICE) passenger vehicles and SUVs
• Electric vehicles (EVs)
• Jaguar Land Rover (JLR)

TMLPV will remain a listed company. The existing passenger vehicle business (TMPV) will be merged into Tata Motors Limited, which will then be renamed as Tata Motors Passenger Vehicles Limited. For this, the strategic focus will be as follows:

1. EV and Smart Technology: Continued investment in electric mobility and connected car technologies to drive product innovation.
2. JLR Global Expansion: Scaling JLR’s presence in international markets with a strong focus on electrification as part of its “Reimagine Strategy.”
3. Advanced R&D: Increased investment in autonomous, connected, and AI-enabled vehicle technologies.
4. Capital and Partnerships: Independent access to capital and partnerships aligned with the company’s growth in EVs and premium mobility solutions.

Tata Motors Commercial Vehicles (TMLCV):

TMLCV will focus exclusively on the commercial vehicle segment, including trucks, buses, and related services. This entity will also be listed separately. The strategic focus here would be as follows:

• Market Leadership: Continued efforts to maintain leadership in the commercial vehicle segment with improvements in product mix and customer service.
• EV Adoption: Investment in electric buses and trucks, supported by progress in smart city mobility deployments.
• Digital Solutions: Expansion of digital sales channels and fleet management systems to enhance customer experience.
• Segment Performance: Addressing underperformance in the small CV and pickup segments through targeted strategies.

Why Is Tata Motors Demerging?

1. Greater Focus & Strategic Clarity

Tata Motors’ commercial vehicles (CV) and passenger vehicles (PV, including EVs and JLR) operate in very different markets, with different strategies, capital needs, and growth paths. Splitting them allows each to focus better, act faster, and execute more effectively.

2. Unlocking True Value

By separating the businesses, investors can value each segment on its own strengths: CV for its focus on the industrial cycle, and PV/EV/JLR for its tech-driven growth. In a combined structure, this clarity is often lost, leading to what is called a “conglomerate discount.”

3. Tailored Strategies & Faster Decisions

Each entity can now build its own strategy: CVs can focus on operational efficiency and fleet tech, while PVs can double down on electrification, luxury, and AI. This improves decision-making speed and long-term competitiveness.

4. Capital Efficiency

CV and PV businesses have very different investment needs. The demerger lets each raise funds independently and deploy capital based on its specific goals, without internal competition for resources.

5. Built on Existing Independence

Since 2021, Tata Motors’ CV, PV+EV, and JLR units have already been operating with separate CEOs. The demerger formalizes this setup and gives each more autonomy to grow.

6. Tech-Driven Future

Each new company can now adopt AI, automation, and advanced tech in ways that suit its market. For example, PVs can focus on autonomous driving, while CVs can build AI for logistics and fleet optimization.

Implications Of Demerger:

Post the announcement, Tata Motors gained nearly 4% and as of the latest trend, the share price reached an intraday high of ₹729.35 as of 26th May 2025.

As a part of the demerger structure, the composite scheme of arrangement will result in the following:

1. Shareholders will receive one share of TMLCV for every one share of Tata Motors Limited, with a face value of ₹ 2.
2. Shareholders will continue to hold their existing shares in the renamed TMLPV, resulting in mirror shareholding in both entities.

This “mirror shareholding” means your ownership is split between the two companies, but the total value should remain roughly the same, based on market pricing. So, say you have 1000 shares of Tata Motors now. After the demerger, you will have 1000 shares each in TMLCV and TMLPV.

Additionally, the asset division is expected to follow an approximate 60:40 ratio, with the commercial vehicle business retaining the larger share, reflecting its higher capital requirements and manufacturing footprint. Both entities will function with focused management teams, clearer strategic priorities, and the autonomy to pursue growth independently.

(source: Business Standard, Annual Report, and Financial Express)

As a shareholder, your current Tata Motors holding will split into mirror shareholdings in Tata Motors Passenger Vehicles (TMLPV) and Tata Motors Commercial Vehicles (TMLCV)—one share each for every share held. As the demerger enables each business to operate independently with focused strategies, distinct capital plans, and dedicated leadership, it is estimated to benefit stakeholders in all aspects.

This structure aims to enhance operational clarity and provide investors with better visibility into the performance and potential of each segment. However, given that the entire process takes months to finalize, it is tough to estimate its exact implications on the market and the share price of both the original entity and the demerged entity in the future. Therefore, ensure that you continue to track market parameters, company fundamentals, and industry trends before finalizing your investment decision regarding Tata Motors’ shares. 

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.

As the markets continued to be in high spirits today with the primary indices running green for the trading session, another stock made it to the limelight with an approximate 20% gain over the last two trading sessions. Emcure Pharma shares hit the upper circuit on 23rd May 2025 as the company announced a nearly 63% increase in the consolidated net profit for FY2025 Q4. What propelled the profit figures? How much did the shares soar for the day? Let’s understand.

Company Overview:

Incorporated in 1981, Emcure Pharmaceuticals Ltd. is a vertically integrated Indian pharmaceutical company that develops, manufactures, and markets a wide range of pharmaceutical and biopharmaceutical products. With a presence in over 70 countries, Emcure operates 13 manufacturing facilities and five R&D centers across India, supported by a robust portfolio of 350+ brands.

The company’s core strength lies in its presence across major therapeutic segments, including gynecology, cardiology, oncology, blood-related disorders, respiratory, CNS, and HIV. Emcure is also a pioneer in biologics, having launched six biologic products in domestic and RoW (Rest of World) markets, and is the domestic leader in three of them.

Emcure’s product range spans oral solids, liquids, injectables (including liposomal and lyophilized forms), biologics, and complex APIs such as chiral and cytotoxic molecules. Its vertically integrated API operations enhance supply chain control and manufacturing flexibility.

Key Achievements:

• 13 first-time product launches
• 234 patents filed (201 approved)
• 6 biologics introduced
• 102 DMFs filed
• 5 NDDS launches, with several more in the pipeline
• 1800+ global dossiers filed over the last two decades

Additionally, in FY24, Emcure expanded its global footprint by acquiring Mantra Pharmaceuticals Inc. in Canada, through its subsidiary Marcan, to strengthen its position in the North American market. 

Financial Highlights Of Q4 and FY2025:

Emcure Pharmaceuticals reported consolidated revenue from operations of ₹2,116.2 crore in Q4 FY2025, an increase of 19.5% compared to ₹1,771.3 crore in FY2024 Q4. Sequentially, revenue grew 7.8% from ₹1,936 crore in Q3 FY2025. 

The company’s consolidated net profit rose to ₹197.2 crore in Q4 FY2025, up 63% year-on-year from ₹121.02 crore in Q4 FY2024 and 26.4% higher than ₹156 crore reported in the previous quarter.

Operating margins for the quarter improved to 19%, up from 17.53% in the quarter ending March 2024. This comes after a period of margin compression in FY2024, when operating profit margins ranged between 14.63% and 19.01%, compared to 16.15% to 20.24% in FY2023. Net profit margins declined from 9.4% in FY2023 to 7.9% in FY2024. The Q4 margin figures indicate a deviation from the previous year’s trend.

Reasons For The Surge In Quarterly Profits:

1. Domestic Market Growth

Emcure’s domestic business showed strong momentum with a 24.8% year-on-year revenue increase to ₹929 crore in Q4 FY2025. This growth was driven by sales in women’s health and cardiology and emerging segments like dermatology and over-the-counter products. This marked a clear turnaround after stagnation in previous years, thus contributing to the profit surge.

2. International Expansion

The company’s international operations grew 15.6% YoY to ₹1,187 crore, with notable performance in the “Rest of the World” segment, which surged 39.3% to ₹481 crore. Revenue in Canada rose 6.2%, benefiting from the full integration of the Mantra acquisition. The European Union market experienced modest growth of 1.7%, supported by newly acquired products and regulatory approvals. This diversified growth reduced reliance on any single market, balancing organic and inorganic expansion.

3. Regulatory Milestone

Emcure’s Pune manufacturing facility received a Voluntary Action Indicated (VAI) status from the USFDA in April 2025. This positive regulatory outcome de-risks the facility by addressing prior observations without enforcement actions, enhancing compliance, and facilitating smoother product approvals for the US market.

4. Product Portfolio and Pipeline Expansion

The company expanded its focus on high-value therapeutic areas, including gynaecology, dermatology, cardiology, CNS, and biosimilars. In FY2025, it launched menopause and PCOS products and introduced cosmetic skincare through its subsidiary Emcutix Biopharmaceuticals. Plans include launching the weight-loss drug semaglutide in India and advancing complex injectables and antibody-drug conjugates.

5. Capital Infusion from IPO

Emcure’s July 2024 IPO raised ₹1,952 crore, with a portion used to repay debt and strengthen the balance sheet. Improved financial flexibility supports the company’s R&D initiatives, product launches, and acquisitions, reducing interest expenses and bolstering profitability.

6. Focus on Margin Improvement

The company’s operating margin improved to 19% in Q4 FY2025 from 17.53% in the prior year. Management highlighted ongoing efforts to enhance profitability through new product launches and operational efficiencies to sustain this positive margin trajectory into FY2026.

Impact On Emcure Pharma Shares:

After the announcement of the Q4 results after the trading hours on 22nd May 2025, the shares of Emcure Pharmaceuticals Limited soared nearly 20%. It hit the upper circuit on 23rd May 2025 and reached an intraday high of ₹1284.4, closing at 9.99% by the end of the trading session. Over the past month, the shares delivered 16.74% returns and increased the gains in the past week by 20.67% as of 23rd May 2025. 

Emcure Pharmaceuticals reported strong Q4 FY2025 results, marked by a 63% increase in net profit, improved margins, and steady growth in domestic and international markets. The company’s activities over the past year, including international acquisitions, regulatory milestones, and new product launches, have contributed to its recent financial performance. 

However, investors tracking the stock should consider reviewing the company’s financials, regulatory developments, and market strategies in detail before making investment decisions. Though the current growth figures show a promising picture, it is important to keep track of the market elements, industry trend, stock market trend, and the company’s financial progress over the period to make any conclusive decision about the stock.

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

Whether a late-night snack or a quick lunch at work, Zomato and Swiggy have made it easy to get food delivered fast. While ordering food online has become a part of our everyday lives, behind this comfort, the two giants are struggling. With most metros already saturated and tier-2 cities slower to convert, the question isn’t just about growth anymore; it’s about profitability. Zomato and Swiggy are both growing, but not making enough profits.

The Profit Picture So Far

Zomato recently posted its third straight quarter in the green, reporting a consolidated net profit of ₹175 crore in Q3 FY24. That’s a big shift from the ₹347 crore loss in the same quarter last year. While it does signal progress, the gains haven’t mainly come from food delivery. A large part of the profit came from cost-cutting and returns on investments.

Swiggy, on the other hand, is getting ready for its IPO but hasn’t reached profitability yet. Its losses have reduced in FY23, but food delivery growth has slowed to about 17%, down from over 40% the previous year. Its grocery delivery service, Instamart, is still running at a loss and continues to consume a significant amount of resources. Source: Economic Times

What’s Making Profits Hard to Reach?

Although their services are much sought after and people order on both platforms regularly, Zomato and Swiggy are dealing with rising costs on many fronts: 

• They give discounts to attract customers.
• They pay delivery partners and give bonuses during peak hours.
• They spend a lot to expand into new cities and services, as attracting new customers in new cities is expensive.
• Prices of fuel, packaging, and other inputs have gone up.

As the above expenses keep mounting, it becomes challenging for the apps to build profits sustainably. 

Competition Stiffens Further

Rising competition is another big challenge for the food apps. Platforms like ONDC (Open Network for Digital Commerce) let restaurants sell directly to customers with lower commission fees, making food cheaper for users. That puts pressure on Zomato and Swiggy’s pricing. 

At the same time, Blinkit (Zomato’s quick-delivery arm) is also competing in the same space, while brands like Domino’s and McDonald’s are focusing on their own delivery apps, cutting out the middleman and offering better deals. These shifts are making it harder for Zomato and Swiggy to hold onto customers and grow profits.

With all this, keeping costs under control has become just as important as growing revenue.

Quick Commerce: Big Convenience, Bigger Costs

Quick commerce—delivering groceries and daily essentials in under 10 minutes—has become a key focus for both players. Zomato is scaling up Blinkit, while Swiggy continues to invest in Instamart.

Blinkit and Instamart reported a twofold increase in Gross Order Value (GOV) and revenue in this segment. However, Blinkit outperformed Instamart in both growth and unit economics. 

In terms of fast food delivery, Swiggy’s Bolt service now contributes 12% of its total orders. It has expanded to 500 cities and partnered with over 45,000 restaurants. Meanwhile, Zomato has exited its 10-minute food delivery initiative, allowing Swiggy to experiment and strengthen its presence in this niche space.

Although quick commerce offers strong growth potential, it’s still expensive. Running dark stores, managing stock, and ensuring fast deliveries all add up. Zomato appears to be taking a more measured approach, while Swiggy is pushing harder on innovation. How each company handles this segment could play a big role in shaping its financial future. Source: Economic Times

Customer Loyalty Is Getting Harder to Hold

While people love free delivery and discount offers, they often switch between apps based on the best deal at the time. This makes it difficult for platforms to build lasting loyalty.

To address this, both companies launched subscription plans—Zomato Gold and Swiggy One—offering benefits like free delivery and priority service. However, the results have been mixed. Discounts can attract people, but they don’t always keep them coming back. And when profits are already low, relying too much on offers becomes risky.

What’s Needed to Turn Profits Around?

Making these businesses profitable is possible, but it means changing how they operate. A few things will matter most:

• Focus on high-margin orders, such as bulk meals, premium users, and corporate clients
• Be selective with quick commerce—grow only where it makes sense
• Earn beyond food delivery, through ads, partnerships, and value-added services
• Improve internal processes, from delivery logistics to partner payments.

Zomato has taken steps to manage this by shutting down less profitable projects like “Zomato Instant” and shifting more focus to Blinkit. Swiggy, on the other hand, is still investing in its fast-delivery service, Bolt, and continuing to grow Instamart, even though both are still making losses. Swiggy, while still expanding, may need to pause and prioritise to stay competitive over the long run. 

Analyst Perspectives

Despite profitability pressures, analysts maintain a positive outlook:

Zomato is seen as a strong player, with a favourable rating and a target price around ₹300, supported by Blinkit’s growth and improving performance in the quick commerce space.

Swiggy also has a positive rating and a target price of ₹400. Its steady performance in food delivery, even though its grocery arm continues to lag in efficiency, backs it up.

Swiggy’s revenue is expected to grow by around 63% in the upcoming quarter. However, profitability estimates have been revised downward due to rising competition and the aggressive expansion of dark stores. Net margin forecasts have been adjusted to -18.9% for FY26 and -10% for FY27, down from earlier projections of -11.4% and -5.4%, respectively. Source: Economic Times

Conclusion

Zomato and Swiggy remain leaders in food delivery, but profits are proving harder to achieve. With rising costs, tough competition, and pressure to scale quickly, both must strike a balance between growth and sustainability. Their next moves—especially around cost control and diversification—will shape the future of this fast-changing 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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

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 fast-moving consumer goods (FMCG) and consumer durables sectors show signs of a positive turnaround. A recent report by ShriRam Mutual Fund paints an encouraging picture, especially for the first half of the financial year 2025-26 (H1FY26). After a period of mixed performance, both sectors are expected to benefit from favorable market conditions, rural demand recovery, and stable inflation levels. Source: Economic Times

The FMCG sector, which includes everyday essential goods like food, beverages, personal care, and household products, is a reliable indicator of broader consumer sentiment in India. Likewise, the consumer durables segment, which covers air conditioners, refrigerators, fans, and other home appliances, is being boosted by changing weather patterns and increasing demand for premium products.

Consumer-Driven Expansion & Price-Led Growth

Before diving into more details, let’s look at some statistics. As of 2023, the FMCG market reached a size of US$167 billion. The industry is expected to grow at a CAGR of 27.9% from 2021 to 2027, with total revenues projected to hit US$615.87 billion by 2027.

Growth Trends & Quarterly Performance

• The FMCG sector recorded a 10.6% growth in sales value from October to December 2024, the highest quarterly increase in the past year. This growth was driven by price hikes and festive demand. During the same quarter in 2023, the sector grew 6.4% by volume, indicating a broad-based consumption recovery. In FY23, the industry reported 8.5% revenue growth and 2.5% volume growth, reflecting resilience amid inflationary pressures.
  
• Rural India has seen a 60% rise in FMCG basket size, increasing from 5.8 in 2022 to 9.3 in 2024 — a clear signal of growing demand and purchasing power in these areas. In 2022, the urban market contributed 65% to the overall FMCG sales, while the rural segment accounted for over 35%. Source: IBEF.org

Rural Revival & Easing Inflation to Drive Growth

According to the report, the improvement will likely be driven by a revival in rural consumption, cooling inflation, and manufacturers’ supportive pricing strategies.

The past few quarters have seen moderate growth in FMCG, especially in rural areas, contributing a significant portion of the overall demand. However, rural consumers were cautious about spending due to higher inflation and weaker income growth. With inflation showing signs of easing and rural employment schemes regaining pace, demand in the countryside is projected to improve in the months ahead. Source: Economic Times

Premium Cooling Products Lead the Way

The consumer durable sector also shows strength, although it comes with challenges. Rising temperatures across the country have increased demand for cooling appliances like air conditioners and fans. This seasonal temperature spike encourages sales of premium products, especially from brands with a strong presence in these categories.

The report indicates positive momentum in the Electrical Consumer Durables (ECD) and Room Air Conditioner (RAC) segments. However, challenges such as high raw material costs and limited pricing flexibility put pressure on company margins. Consumers are still price-sensitive, and companies may struggle to directly pass on the increased costs.

Another factor affecting sales is the delayed onset of summer in southern India, which temporarily impacted the demand for cooling appliances. However, this was balanced by stronger demand in northern regions, where temperatures spiked earlier than expected. Source: Economic Times

Equity Market Volatility Remains a Concern

While the underlying sectors show promise, the broader equity market is volatile. The report highlighted that global concerns, particularly around trade tensions and tariff wars, especially involving the United States, have led to uncertainty in stock markets. These developments have sparked jitters in financial markets worldwide, affecting investor sentiment and short-term movement in domestic equity indices.

Despite the concerns, the FMCG and consumer durable indices showed notable gains in the past month. This indicates that investors continue to have faith in India’s long-term consumption story.

Stock Performance

In the last month, the Nifty FMCG index rose by 5.33%, and the Nifty Consumer Durables index increased by 4.06%. These gains reflect growing optimism about domestic consumption, which is being supported by stable raw material costs, festive season demand, and hopes of rural recovery.

However, growth has been more modest over a three-month period. Nifty Consumer Durables was up only 1.09%, while Nifty FMCG gained just 1.60%. This suggests that investors await concrete signs of a broader rural revival while the market is cautiously optimistic before making aggressive bets.

Consumer Durables Outshine FMCG

Both indices have seen a decline over a six-month window, highlighting the impact of macroeconomic challenges like high interest rates and inflation. Nifty FMCG fell by 5.53%, and Nifty Consumer Durables declined by 6.30%. These trends show inflationary pressures and borrowing costs have impacted consumer spending across sectors.

However, over a 12-month period, the Nifty Consumer Durables index has outperformed FMCG, registering a gain of 7.13% compared to FMCG’s 4.06% increase. This trend underlines that consumers prioritize purchases of essential and lifestyle-enhancing products, especially in premium categories. Source: Economic Times

The long-term performance also indicates that investors may see better growth potential in the consumer durables space, especially if demand for home appliances and electrical products continues to rise.

Positive Momentum with a Few Challenges

Overall, the report presents a balanced but optimistic view of both sectors. The FMCG industry will likely benefit from a favorable mix of low inflation, rural income recovery, and strategic pricing. This makes it one of the key sectors to watch in FY26, especially in the first half.

The consumer durables sector, on the other hand, is driven by seasonal trends, urban lifestyle shifts, and product premiumization. However, companies must manage cost pressures effectively and adjust to changing climatic patterns and regional demand variations.

Short-term fluctuations driven by global factors are expected to persist on the stock market front. Investors should keep a long-term perspective, focusing on fundamentals rather than reacting to day-to-day market noise.

Building Resilience for Sustainable Growth

As the FMCG sector evolves, resilience will play a key role across manufacturing, supply chains, retail, and customer communication. Companies will likely focus on improving logistics, streamlining operations, gaining deeper consumer insights, launching innovative products, and adopting flexible retail strategies. These steps will help brands stay strong during market ups and downs and continue to provide value to Indian consumers.

While FMCG products offer steady demand due to daily use, consumer durables present long-term growth driven by innovation and changing lifestyles. As India enters a new phase of economic recovery, investors and businesses should closely follow these evolving trends to maximize future opportunities.

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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

Introduction

Standard Capital Markets Limited (SCML), a registered Non-Banking Financial Company (NBFC) under the Reserve Bank of India, recently made a strategic move that has turned heads across the financial sector. Often overshadowed by its sub-₹1 share price, SCML demonstrates that market value does not always reflect a company’s underlying potential. With a fresh infusion of ₹79 crore via non-convertible debentures (NCDs) on a private placement basis, the company is positioning itself for a more ambitious and forward-looking trajectory. (Source: LiveMint)

Major Fundraising Through Private NCDs

On May 6, 2025, SCML announced the allotment of 7,900 unrated, unlisted, secured NCDs of ₹1 lakh each, amounting to a total of ₹79 crore. This follows another fundraising initiative just a day prior, on May 5, where the company issued 12,100 NCDs worth ₹121 crore. (Source: LiveMint)

These consecutive private placements, totalling ₹200 crore within 48 hours, are not mere routine transactions. They indicate aggressive capital mobilisation efforts and underscore SCML’s confidence in leveraging debt to fuel future operations. Even though unrated, using secured NCDs suggests the company’s intent to maintain a certain level of financial discipline while attracting investor trust.

What Does This Mean for Investors?

Traditionally, stocks trading at low nominal values have been viewed with scepticism and often dismissed in mainstream investing circles. However, SCML’s recent moves challenge this perception. The ability to raise ₹200 crore without diluting equity shows that institutional or high-net-worth investors are willing to back the company based on its fundamentals and vision.

Investors should note that:

• The company is not simply raising money but securing it through NCDs, assuming debt obligations rather than offloading equity.
• These are secured NCDs, indicating asset backing and an added layer of risk mitigation.
• Despite being unrated, the successful placement suggests confidence in the company’s repayment capabilities.

NBFCs: A Driving Force in India’s Financial Sector

SCML’s progress aligns closely with the evolving role of NBFCs across India’s financial landscape. A recent analysis by Mavenark Advisors highlights how rapidly NBFCs are expanding, surpassing the growth rate of the broader Indian economy. Between FY19 and FY24, NBFC credit grew at a compounded annual growth rate of 12 percent. Their assets under management (AUM) have risen dramatically from just under ₹2 lakh crore at the turn of the millennium to approximately ₹43 lakh crore by the end of FY24.

This surge is not coincidental. NBFCs have carved out a niche by extending credit to underserved population segments, especially in rural and semi-urban India. Unlike banks, which often concentrate on large corporates, infrastructure, and agriculture, NBFCs have directed nearly half of their lending toward retail customers. In fact, in FY24, 48 percent of NBFC credit went to the retail sector, significantly higher than the 34 percent share held by banks in this category. (Source: www.ibef.org)

More importantly, NBFCs play a vital role in financial inclusion. They lend to individuals lacking a formal credit history, such as gig economy workers, self-employed individuals, or those in the informal sector. Their reach into India’s grassroots and flexible lending models has allowed them to bridge credit gaps that traditional banking channels have historically ignored.

The outlook for FY25 is even more promising. As India’s economy gathers momentum and consumer confidence rises, the demand for accessible and diversified credit solutions is set to grow. Companies like SCML are strategically poised to capture this demand, riding the sector’s momentum while expanding their operational footprint.

Global Ambitions: A Glimpse into the Future

SCML is not limiting its ambition to the domestic sphere. The company’s board has also indicated interest in exploring opportunities in the global financial markets. This includes expanding its financial services footprint internationally, which, if executed effectively, could significantly boost both revenue streams and investor sentiment.

This outward-looking posture is crucial when Indian NBFCs actively explore diversification in product offerings and market geographies. With rising digitisation, cross-border financial services are becoming increasingly viable.

Rewriting the Narrative: Not Just a Sub-₹1 Stock

Standard Capital Markets’ stock price may be below ₹1, but using that as the sole metric to judge the company’s value would be shortsighted. With two major NCD issuances, plans for international expansion, and a clear commitment to long-term strategy, SCML is seeking to rebrand itself not through words but through action.

Market participants would do well to observe the trajectory of this NBFC as it attempts to reposition itself through calculated risk and capital deployment. Instead of viewing it through the narrow lens of price-per-share, a closer look at the company’s financial moves and vision reveals a more nuanced story.

Conclusion

Standard Capital Markets strives to break away from the constraints that often limit low-priced stocks. By utilizing structured debt instruments and implementing strategic planning, the company aims to play a more significant role in the Indian and global financial ecosystems. Against the backdrop of India’s rapidly growing non-banking financial company (NBFC) sector, SCML’s development indicates not only a transformation within the company itself but also highlights a larger narrative about how alternative lending institutions are influencing the future of finance in India.

This could be the right time for savvy investors and financial analysts to revisit SCML, not just for what it is today, but for what it is striving to become.

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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

In April 2025, global manufacturing activity experienced its first contraction, signaling potential challenges for the world economy. The JPMorgan Global Manufacturing PMI fell to 49.8 from 50.3 in March, with readings below 50 indicating a contraction. This decline reflects shrinking orders and employment, influenced by escalating trade tensions and economic uncertainties.

Key Drivers Behind the Decline

1. U.S.-China Trade Tensions Reignite

The latest round of tariffs by the U.S. administration on over $300 billion worth of Chinese imports (with rates ranging from 50% to 145%) has led to retaliatory duties from China. This escalation, reminiscent of the 2018 trade war, has triggered a sharp decline in Chinese exports. According to China’s National Bureau of Statistics, exports in April dropped by 8.2% YoY — the steepest decline in 18 months.

China’s Caixin Manufacturing PMI fell to 49.0, indicating shrinking activity and weakened foreign demand. This directly impacted regional supply chains in East and Southeast Asia, where many economies are tightly linked to Chinese intermediate goods exports.

2. Global Export Orders Plunge

The global new export orders sub-index within the JPMorgan Global Manufacturing PMI fell to 47.2 — the lowest since August 2023. This sharp decline suggests broad-based demand fatigue, particularly from Europe and North America. The eurozone, already grappling with energy instability and sluggish consumer spending, saw its manufacturing PMI fall to 46.1 in April.

In the U.S., manufacturing output contracted 0.3% in April (source: Federal Reserve) due to slowing consumer demand and businesses’ caution around election-year uncertainties and potential policy changes.  

Global Manufacturing PMI vs Global GDP Growth Rate (2022–2025) 

This graph shows the relationship between the J.P. Morgan Global Manufacturing PMI and Global GDP Growth Rate over three years. The dip below the PMI neutral line (50) in April 2025 coincides with weakening global demand, export orders, and ongoing trade tensions, hinting at a fragile economic recovery.

3. Persistent Employment and Input Cost Pressures

According to JPMorgan/IHS Markit, global manufacturing employment contracted for the ninth month. Cost inflation, though slowing, continues to weigh on margins. The price of industrial inputs like copper (down 6% MoM) and crude oil (WTI fell 9.3% in April) reflects lower demand expectations, not just supply-side corrections.

A significant concern is the resilience of core capital goods orders, a leading indicator of investment sentiment. In the U.S., March capital goods orders excluding aircraft declined by 0.6%, the third monthly fall in a row, hinting at a possible pullback in global capacity expansion.

Global Implications of the Factory Slowdown

1. Risks of a Broader Economic Slowdown

The IMF’s April 2025 World Economic Outlook cut global growth forecasts from 3.3% to 2.8%, citing manufacturing weakness as a leading downside risk. Industrial output is a bellwether for wider economic momentum; its contraction often precedes GDP slowdowns.

2. Supply Chain Diversification and Realignment

Multinational firms are revisiting their supply chains amid geopolitical tensions. According to a Statista survey (2024), 43% of U.S. firms had already moved or were planning to move production out of China. This global realignment is about cost-efficiency and risk mitigation in a bifurcating global economy.

3. Commodities and Trade Volumes Under Pressure

World trade volumes, tracked by the CPB Netherlands Bureau, fell by 1.7% in Q1 2025 after a flat end to 2024. The Baltic Dry Index — a proxy for global shipping costs — has dropped nearly 24% YTD, reflecting weakened demand for industrial goods and raw materials.

India’s Position

Opportunities for India

1. Attractive China+1 Alternative

India’s manufacturing exports grew 11% YoY in FY25 Q4, particularly in electronics, automotive components, and pharmaceuticals. Apple, Samsung, and several auto suppliers have ramped up investments in Indian industrial parks, signaling that India is increasingly seen as a stable alternative in the China+1 strategy.

2. Policy Support: PLI & Infrastructure Boost

According to Invest India, the Production-Linked Incentive (PLI) schemes across 14 sectors are estimated to attract over $25 billion in manufacturing investments by FY27. With the PM Gati Shakti infrastructure initiative, India is building the physical and digital logistics backbone required for large-scale manufacturing.

3. Demographic and Consumption Edge

India’s demographic dividend offers a dual benefit: a skilled labor pool and a massive consumption base. Domestic demand has cushioned India’s manufacturing sector from global volatility. India’s Index of Industrial Production (IIP) grew 5.4% YoY in February 2025, led by consumer durables and capital goods.

Challenges for India

1. Logistics and Regulatory Bottlenecks

India still ranks 38th in the World Bank’s Logistics Performance Index (2023), behind Vietnam and Malaysia. Bureaucratic red tape, delayed land acquisitions, and inconsistent state-level policies remain hurdles to scaling manufacturing ecosystems rapidly.

2. Export Dependence on Vulnerable Markets

Nearly 40% of India’s manufacturing exports go to the U.S. and EU, both of which are currently slowing. Without broader diversification to Africa, Southeast Asia, and Latin America, India remains exposed to Western economic cycles.

3. Energy and ESG Compliance

As global buyers tighten environmental and social compliance norms, Indian exporters must accelerate ESG alignment. Failing to meet green sourcing standards could hinder market access, especially to Europe.

The Way Forward

To capitalize on the shift in global manufacturing dynamics, India must:

• Accelerate infrastructure upgrades with last-mile connectivity. 
• Simplify compliance through single-window clearances and reduce policy unpredictability. 
• Incentivize R&D and tech integration in MSMEs to boost value-added exports.
• Forge FTAs with African and ASEAN blocs to diversify trade risk.

Moreover, India must be a factory alternative and a hub of advanced and sustainable manufacturing.

Final Thought

The contraction in global factory activity is more than a monthly blip; it reflects deeper fractures in international trade, geopolitical trust, and industrial confidence. For India, this is a test of its preparedness to lead the next manufacturing era, not by chance but by design. 

India must strengthen its manufacturing capabilities by investing in infrastructure, streamlining regulations, and fostering innovation. Collaborations between the government and the private sector can drive sustainable growth. Expanding trade partnerships and exploring new markets will also be vital in navigating the evolving global economic 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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

India’s smartphone market has solidified its position as a global powerhouse, ranking as the second-largest by unit volume and the third-largest by value in Q3 2024. During this period, India accounted for 15.5% of global smartphone shipments, trailing only behind China’s 22% share. In terms of shipment value, Apple led the Indian smartphone market with a commanding 23% share. (Source: IBEF)

Fast forward to the first quarter of 2025, Apple has already captured 19% of the global smartphone market, largely driven by surging sales in India and Japan. Riding this momentum, Apple is now poised to hit a record milestone: generating $15 billion in annual revenue from its India operations.

What’s fueling this growth? What strategies are helping Apple gain ground in one of the world’s most competitive markets? Let’s decode the key drivers behind Apple’s record-setting trajectory in India. 

Apple’s Progress In India

The company is valued at over $3.47 trillion as of November 2024 and has steadily evolved from a niche brand in India to a leading market player. Its journey began in the early 1990s via third-party retailers, but high import duties and regulatory hurdles made early progress difficult in the price-sensitive Indian market.

The turning point came with the launch of Apple’s online store in 2020 and the opening of flagship retail outlets in Mumbai and Delhi in 2023, marking a significant expansion of its retail presence. Its commitment to local manufacturing has also played a vital role in reshaping its India strategy.

Since 2017, when it began assembling iPhones in India through Wistron, the company has significantly expanded its production capabilities. Today, through partnerships with Foxconn and the Tata Group, the company is producing its latest iPhone models domestically, aligning closely with India’s “Make in India” vision and mitigating cost pressures associated with imports. 

These efforts have not only laid a strong foundation for Apple in India but have also positioned the company to capitalize on the growing demand for its products. The results of this long-term commitment are now becoming visible, as Apple gears up for a record-breaking year in India.

Current Sales Trend Of Apple In India:

Apple has been riding a remarkable growth wave in India, clocking its 11th consecutive quarterly revenue record in the October–December 2024 period. While the company does not officially disclose India-specific numbers, it is estimated that iPhone sales alone contributed nearly $10 billion in revenue in 2024, highlighting India’s growing significance in Apple’s global strategy. (source: Mint)

Despite iPhones being priced more than three times the average smartphone in India, Apple’s volumes have soared—shipments jumped from 2.7 million units in 2020 to around 12.5 million in 2024. During the 2024 festive season, Apple broke into India’s top five smartphone brands for the first time, capturing an 11% market share and leading the market in value terms with a 23% share. 

Apple CEO Tim Cook emphasized the country’s strategic importance during a recent earnings call, describing India as a “huge market” with immense growth potential. He revealed that the iPhone was the top-selling model in India for the December quarter and announced plans to open four new Apple Stores to strengthen its retail presence further. (Source: Mint)

Meanwhile, MacBooks have also gained popularity, particularly since the pandemic boosted demand for high-performance laptops. While Apple still commands a relatively niche share in the broader PC market, MacBook sales in India have tripled since 2020, fueled by growing interest from enterprise users and premium consumers.

With strong gains across its product lines, Apple’s momentum in India is unmistakable. But what exactly is fueling this surge?

Drivers Of The Sales Growth

Apple’s increased sales and projected revenue growth in India can be attributed to several contributing factors reflecting both internal strategies and evolving market conditions.

Shifts in Smartphone and Laptop Market Dynamics:

India’s smartphone market saw shipments of approximately 151–153 million units in 2024, marking a 4% year-on-year growth. Within this steady expansion, a noticeable trend toward 5G adoption and a gradual shift toward higher-priced smartphones is evident. This shift is aligned with Apple’s positioning in the premium segment.

The laptop market, meanwhile, is projected to grow at a compound annual growth rate (CAGR) of 6.65% from 2025 to 2033. Demand is being driven by the increased adoption of hybrid work models, the expansion of digital learning platforms, and a greater reliance on performance-focused devices, collectively contributing to a broader market opportunity.

Increased Brand Recognition and Consumer Interest:

Apple’s brand visibility in India has grown in recent years, particularly among consumers with higher discretionary spending. The company’s product offerings are often associated with reliability, design quality, and integration across devices. As a result, Apple has expanded its presence, with India becoming its fourth-largest market by shipments in 2024, experiencing a 35% year-over-year growth rate.

Changing Consumer Spending Patterns:

Rising disposable incomes and the expansion of India’s middle-income demographic have influenced consumer behavior. There is an observable increase in spending on high-end electronics, including smartphones and laptops. Market studies have indicated that the luxury retail sector in India is expected to grow significantly, potentially impacting demand across several categories, including technology.

Supportive Policy Environment and Manufacturing Initiatives:

Government-led initiatives such as “Make in India” and the Production Linked Incentive (PLI) scheme have contributed to the growth of electronics manufacturing in India. These programs offer incentives designed to enhance domestic production capacity. Apple’s partners have increased local assembly of devices, which aligns with broader industry trends toward localization. Additionally, the relaxation of foreign direct investment (FDI) rules has enabled Apple to expand its direct retail operations in the country.

Bottomline:

Apple’s focus on India, through investments in manufacturing, retail expansion, and local partnerships, positions the company for continued growth. The $15 billion revenue goal reflects Apple’s commitment to leveraging India’s growing consumer base, rising incomes, and favorable policies.

For investors, Apple’s success in India could significantly influence future earnings and market strategies. However, challenges like price sensitivity, competition, and regulatory changes will play a key role in determining the company’s trajectory in this dynamic market.

As India’s demand for premium technology products rises, Apple’s continued expansion will likely be an essential part of its global growth story. However, the way forward depends on how the company adapts to these evolving factors and plans for its long-term success in the region. 

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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

On April 21, 2025, shares of Housing and Urban Development Corporation Limited (HUDCO) closed at ₹234.90, marking a 2.62% increase from the previous close of ₹228.90. This uptick followed the Central Board of Direct Taxes (CBDT) approving HUDCO’s request to raise ₹5,000 crore through the issuance of Zero-Coupon Bonds.​

What Are Zero-Coupon Bonds?

Zero-Coupon Bonds are debt instruments sold at a discount to their face value and do not pay periodic interest. Instead, investors receive the full face value at maturity. This structure allows issuers like HUDCO to raise funds without immediate interest obligations, providing flexibility in managing cash flows.​

Understanding the Fundraising Mechanism & the CBDT Approval

HUDCO plans to raise ₹5,000 crore through zero-coupon bonds, for which the approval of the CBDT is crucial, as it ensures the tax-exempt status of these bonds, making them more attractive to investors. Source: The Mint

The CBDT, under the Ministry of Finance, issued Notification No. S.O. 1744(E) dated April 17, 2025, permitting HUDCO to issue five lakh Zero Coupon Bonds with a tenure of ten years and one month. These bonds will be redeemed at ₹5,000 each upon maturity. ​

HUDCO’s Financial Strategy

HUDCO has outlined a clear roadmap for increasing its funding capabilities in FY 2025–26. Earlier in April, the company’s board approved a substantial annual borrowing plan amounting to ₹65,000 crore. This figure reflects a significant scale-up compared to previous years, indicating HUDCO’s commitment to fueling its housing and urban development agenda more aggressively.

To facilitate this enhanced borrowing, HUDCO also raised its overall borrowing ceiling from ₹1.5 lakh crore to ₹2.5 lakh crore. This step isn’t just a procedural update—it signals a stronger push towards long-term financing of projects that align with national development priorities, including affordable housing, smart cities, and infrastructure initiatives across states.

In effect, this move gives HUDCO more flexibility to maneuver, allowing it to tap into various funding channels as opportunities arise. The higher limit also provides flexibility to respond quickly to emerging project needs or shifts in the credit environment without waiting for further board approvals. Source: The Mint

Strategic Borrowing Plans

In the current financial year, HUDCO has already been executing a multi-pronged approach to funding. In addition to the ₹5,000 crore being raised through zero-coupon bonds, the company has been working on mobilizing up to ₹23,000 crore by the end of March 2024. This capital is being raised through a mix of instruments, including:

• Medium-term loans
• Short-term credit
• Taxable bonds

The goal here is diversification — not relying solely on one kind of borrowing product, but tapping into multiple sources to optimize interest rates, repayment schedules, and risk exposure. As of December 2023, HUDCO had already raised approximately ₹12,000 crore out of its ₹23,000 crore target, indicating good traction with lenders and investors.

This blend of borrowing tools enables HUDCO to maintain a balance between its immediate liquidity needs and long-term funding requirements. It also reflects a disciplined approach to financial planning, allowing the institution to meet current commitments while being prepared for future, larger-scale investments. Source: Business Finance

Market Response and Share Performance

The market responded positively to the CBDT’s approval, with HUDCO’s share price rising by 2.5%. This increase reflects investor confidence in the company’s financial strategies and its role in supporting government-backed housing and infrastructure initiatives.

Over the past five years, HUDCO shares have delivered a robust return of over 990% to investors. In the last one year alone, the stock has gained more than 20%. Despite this long-term growth, the stock has slipped slightly in 2025, down by over 1% year-to-date.

According to NSE data, HUDCO touched its 52-week high of ₹353.95 on July 12, 2024, and hit a 52-week low of ₹158.90 on March 3, 2025. More recently, the stock has shown strong momentum, rising 15.83% over the past month and nearly 9% in just the last five trading sessions. As of Monday’s market close, HUDCO’s market capitalisation stood at ₹47,024.63 crore.

Implications of the Fundraising

The green signal from the CBDT to raise ₹5,000 crore via zero-coupon bonds marks an essential milestone in HUDCO’s financing roadmap. Zero-coupon bonds provide a tax-efficient means of raising funds, particularly when backed by CBDT approval. They are issued at a discount and redeemed at face value, which lowers upfront costs for the company and enhances its appeal for investors who can benefit from tax exemptions under Section 10(15)(iv)(h) of the Income Tax Act.

From HUDCO’s perspective, this infusion of ₹5,000 crore serves as additional working capital to support the increasing demand for housing finance and urban development. Whether it’s infrastructure projects in tier-2 and tier-3 cities or state-led housing initiatives, this funding will be used to scale operations and accelerate project timelines.

More broadly, this move aligns with HUDCO’s goal of strengthening its capital structure, reducing borrowing costs, and expanding its lending capacity. It is also a reflection of the government’s broader focus on infrastructure-led growth, making HUDCO a key enabler in achieving these targets. Source: The Mint

Conclusion

HUDCO’s recent share price increase reflects investor confidence following the CBDT’s approval for a significant capital raise. The company’s proactive financial strategies, including the issuance of Zero Coupon Bonds and the expansion of its borrowing limits, position it to effectively support housing and urban development initiatives in the coming years.

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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

Major cities of India were embracing the new fleet of urban mobility with BluSmart in Gurugram. However, the Indian startup that distinguished itself by operating an all-electric fleet in the ride-hailing market has recently faced a significant crisis, marked by the suspension of its cab booking services in major cities, including Delhi-NCR, Mumbai, and Bengaluru, as of April 17, 2025. This disruption is primarily attributed to the alleged financial misconduct and governance failures at Gensol Engineering. But was it the only reason? What led to the decline in this startup’s performance? Let’s decode.

Overview Of BluSmart:

BluSmart’s journey began in Gurugram, with the legal entity initially incorporated as Gensol Mobility Private Limited in October 2018, spearheaded by Anmol Singh Jaggi, Punit K. Goyal, and Puneet Singh Jaggi. The company rebranded to Blu-Smart Mobility Private Limited in 2019, setting its sights on offering the nation’s first fully electric ride-hailing service. This commitment to environmental sustainability was a core differentiator, aiming to provide a greener alternative to traditional taxi services.

1. Early Financing:

Initial financing came through an angel funding round of Rs.30 lakh, attracting investments from prominent names like Hero MotoCorp, Jito Angel Network, and Micromax. This initial backing provided crucial capital and credibility. Later, post June 2019, the company partnered with Tata Motors and Mahindra as its OEM (Original Equipment Manufacturer) partners.  (Source: Annual Report FY2023)

2. Initial Operational Model:

Before launching its independent platform, BluSmart strategically operated on Uber’s platform from March to November 2019, gaining invaluable insights into the ride-hailing market dynamics and customer needs. The company focused on electric vehicles (EVs), zero ride denials, and salaried drivers. 

3. Expansion:

Between 2020 and 2023, the company scaled rapidly, expanding to Bengaluru, forming partnerships with Tata Motors and Jio-BP, and building a network of over 3,900 charging stations. It raised over $182 million in capital and achieved an annual revenue run rate of Rs.815 crore by early 2025. However, this growth came at a cost: BluSmart reported a loss of Rs . 215.9 crore in FY23, highlighting the financial strain of its capital-heavy model.

4. Transitioning: 

As BluSmart transitioned from an asset-light leasing strategy to a vertically integrated model, with fleet ownership and infrastructure development, its operational complexity and financial vulnerability grew. This transformation, though intended to ensure quality and reliability, made the business more susceptible to governance lapses and fiscal stress—issues that have now surfaced with the service suspension linked to alleged financial irregularities at Gensol Engineering, a key partner.

What Happened With Gensol and BluSmart?

The cracks in BluSmart’s foundation began to show in early 2025, but the roots of the fallout trace back to its over-reliance on Gensol Engineering, its primary fleet provider and a company led by the same founders. Here’s how the event unfolded-

• In March 2025, Gensol’s financial troubles came to light when CARE and ICRA downgraded its credit rating to ‘D’ (default). This immediately signaled a liquidity crisis. Shortly after, BluSmart missed payments on its non-convertible debentures, raising concerns that the financial strain had spread.
• Things escalated when Gensol was accused of submitting falsified documents, including fake lender letters, to credit agencies and possibly investors. Meanwhile, promoter share pledging in Gensol soared to 85.5% by February, a sign of mounting desperation to secure funds.
• By April 2025, the situation worsened. Gensol’s EV arm laid off 50 employees, with reports of unpaid salaries dating back to February. Operationally and financially, the company was under severe pressure. For BluSmart, its largest customer and dependent partner, this meant major disruption in fleet supply and infrastructure support.

What initially appeared to be a strategic correlation between two closely held companies turned into a high-risk entanglement. As Gensol unraveled, so did the stability BluSmart had built upon it. 

How Instability Attracted SEBI’s Investigation:

The financial misconduct at Gensol Engineering came to light in mid-April 2025, leading to a swift investigation by the Securities and Exchange Board of India (SEBI). The release of SEBI’s interim order on 15th April 2025 revealed severe financial mismanagement with the following findings-

1. SEBI uncovered a massive diversion of funds from government loans intended for the purchase of electric vehicles (EVs). The total loans, amounting to Rs. 978 crore, were primarily obtained from agencies such as the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). Instead of using these funds for EV procurement, Gensol allegedly routed over Rs . 200 crore through a dealership, Go-Auto Pvt Ltd, into companies linked to the Jaggi brothers.
2. Anmol Jaggi was found to have diverted Rs 25.76 crore from Gensol to his accounts and companies linked to him, including payments to the startup Third Unicorn.
3. The report revealed records of personal expenditures, including purchases of luxury properties, high-end items such as wristwatches, foreign travel, and even payments for personal spa treatments—all funded by the misappropriated loans.
4. Despite borrowing funds for the purchase of at least 6,400 electric vehicles, SEBI found that only 4,704 cars were acquired. The remaining funds were unaccounted for, adding another layer of suspicion. 
5. SEBI also flagged forged documents, such as fake conduct letters from lenders, which were used to mislead credit agencies and investors about the company’s financial health.

In response to the severity of the findings, SEBI took rapid action. It 

• Barred the Jaggi brothers from participating in the securities market 
• Prohibited them from holding any managerial roles within Gensol 
• Ordered a forensic audit of the company’s financial records to investigate the scale of the alleged fraud further. It put Gensol’s proposed stock split on hold due to concern over the company’s stability.

Impact on Gensol and BluSmart

The revelations had an immediate and dramatic effect on Gensol’s financial standing. The company’s stock price plummeted by over 80% in 2025 and dropped nearly 5% alone on April 18, 2025.

Credit rating downgrades followed, with further restrictions on Gensol’s ability to secure financing, compounding its financial distress. For BluSmart, the situation was equally dire. The intertwined leadership and business models meant that Gensol’s downfall reverberated directly to BluSmart, exposing deep risks that had been overlooked in their shared growth.

Impact Of The Investigation And BluSmart’s Response to Crisis:

A] Impact:

1. The suspension of services, announced as of April 17, 2025, impacted BluSmart’s gig economy workers—the thousands of drivers who relied on the platform for their income.
2. On 18th April 2025, just days after the SEBI order against Gensol, two Independent Directors, Harsh Singh and Kuljit Singh Popli, resigned from BluSmart’s board.
3. Uber had previously tested around 300 BluSmart EVs on its platform and was reportedly in early acquisition talks. However, following BluSmart’s operational collapse and reputational damage from the Gensol scandal, the acquisition became uncertain.
4. Even before the Gensol crisis, BluSmart was in deep financial trouble. It failed to raise the targeted $50 million, was burning over Rs 20 crore a month, and had delayed March 2025 salaries, as well as defaulted on bond payments. The scandal only exposed how fragile its finances already were.

B] BluSmart’s Action Plan:

1. The company issued generic notices, informing users that bookings were “temporarily closed” and promising refunds for unused wallet balances within 90 days. 
2. BluSmart’s shareholders had approved a shift to this new business model, in which BluSmart would provide a portion of its fleet (approximately 700-800 vehicles) to Uber’s platform. This transition had been in the works even before the crisis, but now took on an urgent tone.
3. BluSmart then sought a $15–$20 million investment from Uber to transition its electric vehicles (EVs) to Uber’s platform, signaling a shift from competitor to fleet partner.

Lessons from the Gensol-BluSmart Crisis:

• Governance Gaps Have Consequences:

Gensol’s crisis highlighted how weak board oversight and concentrated control can lead to unchecked risks. This is why it is recommended that investors seek strong governance and conduct independent checks, as they are essential indicators of long-term stability.

• Linked Entities Equal Shared Vulnerabilities:

BluSmart’s heavy reliance on Gensol exposed it to collateral damage. When companies are operationally tied, risks don’t stay contained—investors must assess group-level interdependencies.

• Fast Growth Needs Strong Foundations:

BluSmart’s rapid expansion masked deep financial strain. High cash burn, ambitious scaling, and weak fundraising traction can undermine seemingly successful ventures.

• Reputation Risks Spread Quickly:

Gensol’s misconduct damaged BluSmart’s brand and viability. In tightly linked ecosystems, reputational fallout is rarely isolated and can erode trust across companies.

Bottomline:

This case illustrates the complexity and opacity of early-stage investments. In the aftermath of such events, you may need to closely track regulatory updates, board changes, and any signs of restructuring. While the situation is still evolving, greater clarity will likely come through audits, legal actions, and official disclosures over time.

Ultimately, this crisis serves as a reminder of what early-stage investing entails: pursuing high returns comes with significant operational, financial, and governance risks. Recognizing these early can help you stay prepared for the volatility that often comes with fast-moving sectors like electric mobility.

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 & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs