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What is the story about?
Dear Reader,
The week wound down much the way it began, with two of the market's most closely watched companies saving their numbers for the evening.
Maruti Suzuki's quarter was a study in contrasts. Profit beat Street estimates and net sales surged 36% to ₹49,959 crore, yet the operating picture was less encouraging. EBITDA and margins missed expectations by a wide margin as raw material costs, already climbing through the quarter, were further aggravated by the conflict in the Middle East.
ITC's quarter leaned the other way. Standalone profit fell 27.1% to ₹3,578.8 crore, while revenue declined over 14% and EBITDA margin narrowed to 26.7% from 31.7% a year ago. Its FMCG business proved more resilient, growing 12%, though even that landed at the softer end of what the Street had been looking for.
Indian Oil Corporation closed out the day's biggest earnings with a reminder of how quickly geopolitics can reshape a quarter. The oil marketing major swung to a ₹2,661 crore loss as higher crude prices during the West Asia conflict crushed refining margins. Government compensation for LPG under-recoveries softened the blow, but not enough to prevent profitability from slipping well below Street expectations.
A big quarter, and an even bigger shift in the pecking order
Bajaj Finserv's numbers were strong on their own merits, with consolidated profit rising 18% to ₹6,297 crore and net interest income climbing 20% to ₹14,528 crore. The board also approved plans to pursue a reinsurance business, subject to regulatory approval.
But the more compelling story sat one layer beneath the parent. Bajaj Finance, which reported a day earlier, delivered a 28% jump in profit, added 5.1 million customers and disbursed over 16 million new loans during the quarter. Bajaj Allianz General Insurance grew gross written premium by 11%, while Bajaj Allianz Life's value of new business surged 87%, signalling an improving product mix.
Taken together, the performance across the group was enough to propel the Bajaj Group past the HDFC Group in market capitalisation, a notable reshuffle in India's corporate hierarchy that says as much about where investors are placing their confidence as any single quarter's earnings.
Stock movers: Markets saw more than the headline
Strides Pharma reported a 57% rise in profit and 13% revenue growth, driven by strong momentum in Ex-US markets. Yet the stock still slipped more than 5%, as higher operating and freight costs linked to ongoing geopolitical tensions weighed on margins, which narrowed to 18% from 19.5% a year earlier.
ESAF Small Finance Bank had the opposite experience. Its shares rallied as much as 10%after the lender returned to profit, supported by stronger net interest income, improving asset quality and an operating profit before provisions that nearly tripled from a year ago.
Aditya Birla Capital gained close to 4%after reporting a 40% rise in profit, with its lending book expanding 32% and assets under management crossing ₹7.5 lakh crore across its core businesses.
Sun Pharma, meanwhile, gave back early gains, slipping as much as 3% from the day's highsafter US sales came in well below Street expectations, even as profit rose 27% year on year.
Dixon Technologies rounded off the day with one of the more puzzling market reactions. Revenue comfortably beat estimates, but softer-than-expected EBITDA overshadowed the strong top line, sending the stock down as much as 5%.
What we heard beyond the results
A few boardroom conversations from companies that reported on Thursday but continued shaping Friday's narrative.
Tata Steel cautioned that margins in its India business could soften in the second quarter as steel realisations ease and coking coal costs rise, although management expects higher volumes to partly offset the pressure. In Europe, it sees operations turning EBITDA-positive as the Netherlands recovers and the UK business moves closer to break-even.
Vedanta's CFO Ajay Goelsaid aluminium is expected to emerge as one of the company's biggest earnings drivers over the next few years, supported by firm global prices and improving margins as the Lanjigarh refinery ramps up. He also projected combined EBITDA of $4 billion for FY27.
At M&M, Group CEO and MD Anish Shahsaid the auto business should strengthen further as electric vehicle scale improves and new capacity comes on stream, while commodity-led margin pressures begin to ease. He also highlighted commercial vehicles, real estate and logistics as increasingly important growth engines alongside the group's core auto and farm equipment businesses.
That's the week, wrapped up. Follow all the live updates on Q1 earnings and everything else moving the market here.
Have a good weekend, and we'll see you on Monday.
