Kotak Mahindra Bank Q3FY26 Results: Profit Up 4%, NII Rises 5%

Kotak Mahindra Bank Q3FY26 Results: Standalone Profit Rises 4%, NII Grows 5%

Kotak Mahindra Bank delivered a steady financial performance in the third quarter of FY26, supported by consistent growth in its core lending operations, improving asset quality, and healthy balance sheet metrics. The private sector lender reported moderate profit growth amid stable margins and robust expansion in advances and deposits.

Profit Performance

For Q3FY26, Kotak Mahindra Bank posted a standalone net profit of Rs 3,446 crore, registering a 4% year-on-year (YoY) increase compared with Rs 3,305 crore in the corresponding quarter last year.

On a consolidated basis, profit after tax (PAT) stood at Rs 4,924 crore, reflecting a 5% YoY growth and a 10% sequential rise over Rs 4,468 crore reported in Q2FY26.

Net Interest Income and Margins

The bank’s core income remained resilient during the quarter. Net interest income (NII) rose 5% YoY to Rs 7,565 crore, compared with Rs 7,196 crore in Q3FY25. On a quarter-on-quarter basis, NII increased by 3% from Rs 7,311 crore.

Net interest margin (NIM) for the quarter stood at 4.54%. While this was lower than 4.93% recorded a year earlier, margins remained flat sequentially, indicating stability despite a changing interest rate environment.

Asset Quality Improves Further

Kotak Mahindra Bank continued to strengthen its asset quality metrics. As of December 31, 2025:

• Gross NPA ratio improved to 1.30% from 1.50% a year ago
• Net NPA declined to 0.31% from 0.41%
• Provision Coverage Ratio (PCR) stood at 76%

Provisions for the quarter amounted to Rs 810 crore, lower than Rs 947 crore in the previous quarter. The annualised credit cost reduced to 0.63%, reflecting better credit performance.

Advances, Deposits, and CASA

Net advances grew strongly by 16% YoY to Rs 4,80,673 crore. Customer assets, including advances and credit substitutes, increased 15% YoY to Rs 5,29,455 crore.

Total deposits stood at Rs 5,42,638 crore, marking a 15% YoY growth. Average deposits also rose 15% to Rs 5,26,025 crore.

• Average current deposits grew 14% YoY to Rs 75,596 crore
• Average savings deposits increased 12% YoY to Rs 1,18,505 crore
• Average term deposits surged 19% YoY to Rs 3,18,070 crore

The CASA ratio as of December 31, 2025, stood at a healthy 41.3%.

Capital Position and Returns

The bank maintained a strong capital buffer, with a Capital Adequacy Ratio of 22.6% under Basel III norms. The CET1 ratio stood at 21.5%, including unaudited profits.

For the quarter, Kotak Mahindra Bank reported an annualised Return on Assets (ROA) of 1.89% and a Return on Equity (ROE) of 10.68%.

Fund Raising Plan

In a strategic move to strengthen its funding base, the bank’s board approved a proposal to raise up to Rs 15,000 crore through the issuance of unsecured, redeemable, non-convertible debentures (NCDs) via private placement during FY27, subject to necessary approvals.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Dr Reddy’s Gets Approval for Generic Ozempic in India, Targets 12 Million Pens

Dr Reddy’s Wins Approval for Generic Ozempic in India, Targets 12 Million Pens in First Year

Regulatory clearance marks a major step into the booming diabetes and weight-loss drug market

Dr Reddy’s Laboratories has received regulatory approval in India to manufacture and sell a generic version of Ozempic, a widely used diabetes medication based on the active ingredient Semaglutide. The approval positions the company to tap into one of the fastest-growing therapeutic segments, with management targeting sales of 12 million injectable pens in the first year of launch.

The clearance from India’s drug regulator allows Dr Reddy’s to introduce the generic product for diabetes treatment. However, the company is still awaiting approval for the obesity-focused version, commonly associated with the weight-loss therapy Wegovy.

Semaglutide Patent Expiry Opens New Opportunities

The approval comes ahead of the global patent expiry for Semaglutide, scheduled for March 2026. Once the patent protection ends, Indian pharmaceutical companies are expected to intensify competition in both diabetes and weight-management therapies.

Semaglutide has gained significant attention globally not only for diabetes management but also for its appetite-suppressing properties, which have driven strong off-label use for weight loss. This dual demand has made the molecule a strategic growth driver for generic drugmakers.

Strong Demand Expected in Domestic and Overseas Markets

Dr Reddy’s management has indicated that the company has adequate manufacturing capacity to meet anticipated demand. The firm plans to collaborate with local partners in India to support distribution and market penetration.

Beyond the domestic market, Dr Reddy’s also plans to launch Semaglutide in Canada later this year, followed by other emerging markets. These launches are expected to strengthen the company’s branded generics portfolio and support long-term revenue growth.

India Business Shows Solid Growth Momentum

Semaglutide is expected to play a key role in accelerating Dr Reddy’s India business, which has been expanding through new product launches and strategic acquisitions. During the latest quarter, revenue from the company’s India operations rose 19% year-on-year to ₹16.03 billion.

This growth was supported by selective price increases and contributions from recently acquired brands, including an anti-vertigo therapy added to its domestic portfolio in September.

Quarterly Financial Performance Beats Expectations

For the quarter ended December 31, Dr Reddy’s reported a 14.4% decline in consolidated net profit to ₹12.1 billion. Despite the drop, the result exceeded market expectations, which had projected a sharper fall.

Total revenue from operations increased 4.4% year-on-year to ₹87.53 billion, comfortably ahead of estimates. The profit decline marked the company’s first quarterly contraction in five quarters.

Key Headwinds Impacting Profitability

• Slower sales of Lenalidomide, a generic cancer drug, in the US market
• Increased pricing pressure due to heightened competition
• Normalization of earnings following earlier high-margin periods

Outlook: Semaglutide as a Long-Term Growth Engine

While near-term earnings faced pressure, the approval for generic Ozempic significantly strengthens Dr Reddy’s medium- to long-term outlook. With diabetes and obesity rates rising steadily in India and abroad, Semaglutide-based therapies are expected to remain in high demand.

The company’s early regulatory clearance, manufacturing readiness, and international expansion plans could provide a meaningful boost to revenues once large-scale launches commence.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Sun Pharma Explores $10-Billion Organon Acquisition to Boost US Presence

Sun Pharma Eyes $10-Billion Organon Acquisition to Strengthen US Market Presence

Sun Pharmaceutical Industries Ltd, India’s largest pharmaceutical company by market value, is reportedly evaluating a major acquisition that could significantly reshape its global footprint. The company is exploring the purchase of US-based Organon, a women’s health-focused drugmaker with an expanding biosimilars portfolio, in a deal estimated at around $10 billion including debt.

If executed, this transaction would mark the largest cross-border acquisition ever undertaken by an Indian pharmaceutical firm and could be among the most ambitious moves by Sun Pharma’s founder, Dilip Shanghvi. Market participants view the potential deal as a strategic effort to deepen Sun Pharma’s presence in the lucrative US pharmaceutical market.

Deal Structure and Strategic Intent

According to reports, Sun Pharma has appointed a European investment bank to advise on structuring a detailed financial proposal that may eventually be placed before Organon’s board. While discussions are ongoing, sources caution that there is no certainty of a final agreement and that competing bidders could also emerge.

Organon was spun off from a global pharmaceutical major in 2021, inheriting a sizeable debt burden of about $9.5 billion at inception. Despite efforts to rebalance its finances through asset sales and acquisitions, the company’s debt stood at approximately $8.9 billion as of the second quarter of 2025. This leverage has been a key factor influencing its valuation and strategic options.

Why Organon Matters to Sun Pharma

The proposed acquisition is seen as a potential gateway for Sun Pharma to scale up in two high-growth segments:

• Women’s healthcare, including contraception and fertility treatments
• Biosimilars, a segment offering long-term growth and relatively high margins

Organon’s portfolio includes established women’s health brands and a biosimilars business that contributed roughly $660 million in annual revenue. Analysts believe these assets could neatly complement Sun Pharma’s existing US product lineup.

Financial Snapshot of Both Companies

Organon currently has a market capitalisation of about $2.3 billion on the New York Stock Exchange, with its share price well below last year’s highs. For FY24, the company reported revenue of $6.4 billion and EBITDA of around $1.95 billion. However, margins have come under pressure due to higher costs and debt servicing.

Sun Pharma, on the other hand, closed FY25 with consolidated revenue of Rs 52,041 crore (approximately $6.19 billion) and EBITDA of Rs 15,300 crore, reflecting a growth of over 17% year-on-year. Its balance sheet remains relatively strong, with minimal standalone debt and cash reserves estimated at around Rs 20,000 crore.

Potential Impact on the US Business

The US market is already Sun Pharma’s largest revenue contributor, driven by its growing portfolio of branded and specialty products. In FY25, revenue from innovative products in the US reached $1.21 billion, supported by strong performance from dermatology and specialty therapies.

An Organon acquisition could accelerate this momentum by adding scale, diversifying revenue streams, and enhancing Sun Pharma’s reach in women’s health and biosimilars—areas where competition is limited to a handful of global players.

Risks and Market Watchpoints

While the strategic logic appears sound, investors will closely monitor key risks such as integration challenges, leverage levels post-acquisition, and regulatory approvals. Pro forma leverage is estimated to rise to around 2.5 times net debt to EBITDA, which remains manageable but higher than Sun Pharma’s current levels.

At present, both companies have declined to comment on market speculation. As negotiations evolve, the proposed transaction is expected to remain a major focus for investors tracking consolidation trends in the global pharmaceutical industry.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Steel Prices Rise on Safeguard Duty and Export Demand | Market Outlook

Steel Prices Rise as Safeguard Duty and Export Demand Push Rates Higher

Domestic steel prices have started moving upward after remaining under pressure for most of calendar year 2025. The recent increase has been supported by the imposition of safeguard duty on imports, stronger export demand, and rising raw material costs, prompting steelmakers to raise prices. However, analysts remain cautious about the sustainability of the current uptrend.

Latest HRC Price Hike Signals Firming Trend

Steel producers recently announced another round of price increases, with several mills raising hot rolled coil (HRC) prices by ₹500–₹750 per tonne. This marked the second hike in the current month, and market participants expect other producers to follow suit in the coming days.

As a result, list prices of HRC have climbed by ₹3,000–₹5,250 per tonne since mid-December, reaching around ₹50,500–₹51,750 per tonne across major mills. At the trade level, distributor-to-dealer prices have increased by nearly ₹6,000 per tonne to approximately ₹52,000 per tonne.

Key Factors Driving Steel Prices Higher

Multiple structural and cost-related factors are contributing to the upward movement in steel prices:

• Safeguard duty support: Import curbs have reduced low-priced overseas supplies, improving pricing power for domestic producers.
• Higher input costs: Imported met coke prices have risen sharply, while rupee depreciation has further inflated costs.
• Tight availability: Certain long products are witnessing supply constraints, supporting overall steel prices.
• Improved exports: Strong overseas orders have helped absorb excess domestic capacity.

Industry executives believe the recent price rise could mark a turning point after a prolonged period of subdued pricing.

Export Momentum Provides Additional Support

Steel exports from India have seen a notable improvement, aided by advance buying from overseas markets. During April–November 2025, total steel exports, including stainless steel, rose 31% year-on-year to 5.77 million tonnes.

Finished flat steel exports to the European Union surged 45% year-on-year to 2.46 million tonnes during the same period. This growth was largely driven by pre-buying ahead of the phased implementation of carbon-related trade regulations in Europe.

For the full calendar year 2025, India’s steel exports stood at 8.48 million tonnes, while imports declined to 9.56 million tonnes, reflecting improved trade balance dynamics for the sector.

Can the Price Uptrend Sustain?

Despite the recent improvement, analysts warn that supply-side pressures could resurface. The domestic steel industry has added nearly 15 million tonnes of capacity over the past few quarters, with an additional 5 million tonnes expected by the end of FY26.

This rapid expansion created temporary oversupply and capped prices earlier. Looking ahead, demand is expected to improve in FY27, with incremental consumption projected at 11–12 million tonnes. With limited new capacity additions in early FY27, the impact of overcapacity on prices may gradually ease.

However, some analysts caution that commissioning of new blast furnaces and a potential slowdown in demand growth could limit further price increases. On a cumulative basis, flat steel HRC prices are expected to be only 1–2% higher in FY27 compared to FY26, while increased competition may push long steel prices lower by 3–5%.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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HDFC Bank Q3 Results: Net Profit Jumps 11% YoY to Rs 18,654 Crore, NII Up 6.4%

HDFC Bank Q3 Results: Net Profit Rises 11% YoY to Rs 18,654 Crore, NII Grows 6.4%

HDFC Bank delivered a steady financial performance in the December quarter of FY26, reporting an 11% year-on-year increase in net profit that exceeded market expectations. India’s largest private sector lender continued to show resilience in earnings despite margin pressures and a moderated growth environment.

Profit Performance Beats Estimates

The bank’s standalone profit after tax (PAT) stood at Rs 18,654 crore for the quarter ended December 31, 2025, compared with Rs 16,735 crore in the same period last year. This was higher than Street expectations of around Rs 18,473 crore.

On a sequential basis, profit remained largely flat compared to Rs 18,641 crore reported in the September 2025 quarter, reflecting stable operating performance.

Net Interest Income and Margins

HDFC Bank’s net interest income (NII) increased by 6.4% year-on-year to Rs 32,620 crore, up from Rs 30,650 crore in the corresponding quarter of the previous year.

During the quarter:

• Interest income rose marginally by 1% YoY to Rs 76,751 crore.
• Interest expenses declined nearly 3% YoY to Rs 44,136 crore.

The core net interest margin (NIM) stood at 3.35% on total assets and 3.51% on interest-earning assets, indicating stable margins despite competitive pressures.

Operating Efficiency

Operating expenses for Q3FY26 were reported at Rs 18,770 crore. Excluding the estimated Rs 800 crore impact from employee benefits under the New Labour Code, expenses were Rs 17,970 crore, compared with Rs 17,110 crore in the year-ago quarter.

The core cost-to-income ratio for the quarter stood at 39.2%, reflecting disciplined cost management amid network expansion.

Balance Sheet and Deposit Growth

The bank’s balance sheet continued to expand steadily. As of December 31, 2025, total balance sheet size stood at Rs 40.89 lakh crore, compared with Rs 37.59 lakh crore a year earlier.

Key balance sheet highlights include:

• Average deposits rose 12.2% YoY to Rs 27.52 lakh crore.
• Average CASA deposits grew 9.9% YoY to Rs 8.98 lakh crore.
• Sequential growth in deposits remained healthy during the quarter.

Advances and Loan Mix

Gross advances increased by 11.9% year-on-year to Rs 28.45 lakh crore. Growth was driven primarily by:

• Retail loans rising 6.9%
• Small and mid-market enterprise loans growing 17.2%
• Corporate and wholesale loans expanding 10.3%

Overseas advances accounted for a modest 1.7% of total advances, keeping the loan book largely domestically focused.

Asset Quality Remains Stable

Asset quality indicators remained steady during the quarter. Gross non-performing assets (GNPA) stood at 1.24% of gross advances as of December 31, 2025, unchanged sequentially and improved from 1.42% a year ago.

Net NPAs were reported at 0.42%, reflecting controlled credit costs and prudent risk management.

Expanding Network and Workforce

As of December 31, 2025, HDFC Bank operated 9,616 branches and 21,176 ATMs across 4,170 cities and towns. Around 50% of branches are located in semi-urban and rural areas, supporting financial inclusion.

The bank’s workforce stood at 2,15,739 employees, underscoring continued investment in human capital to support long-term growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India Trade Deficit Widens to $25 Billion as Imports Rise 9% in December

India’s Trade Deficit Widens to $25 Billion as Imports Surge 9% in December

India’s trade deficit expanded sharply to $25 billion in December as a faster rise in imports outpaced modest export growth. Latest data released by the commerce department shows that total imports increased 9% year-on-year to $63.6 billion, driven mainly by higher shipments of electronics, fertilisers, silver, and crude oil.

On the other hand, exports recorded a relatively muted rise of 1.9% to $38.5 billion, reflecting uneven global demand and persistent trade-related challenges in key overseas markets.

Imports Rise on Electronics, Fertilisers, and Oil

The sharp expansion in the trade gap was largely due to a strong pickup in imports. Electronics imports remained robust as domestic demand for consumer devices and components stayed firm. Fertiliser imports also rose significantly amid seasonal agricultural requirements.

A notable contributor was crude oil, with oil shipments registering a 40–50% jump in value terms. Overall imports from the United States were estimated at $4 billion, marking a 7.6% increase compared with the same period last year.

Exports to the US Remain Flat Amid Tariff Pressures

Exports to the United States, one of India’s largest trading partners, remained largely unchanged in December. Shipments were valued at around $6.9 billion, marginally lower than $7 billion recorded a year earlier.

This stagnation comes at a time when certain Indian goods continue to face steep tariffs of up to 50%, impacting competitiveness. Despite these headwinds, overall exports managed to stay in positive territory.

Services Trade Shows Mixed Trend

During December, services exports were estimated to have declined 4.2% to $37 billion, while services imports edged up 2% to $17.4 billion. This moderation in services exports weighed on the overall trade balance, even as goods exports showed selective strength.

Commerce officials remain optimistic about the broader outlook. According to government estimates, India could close the financial year with total exports exceeding $850 billion. Services exports alone are expected to cross the $400 billion mark for the first time.

Sectoral Performance: Electronics and Apparel Shine

On the goods front, exports of electronics, gems and jewellery, engineering goods, and apparel recorded healthy growth during the month. In contrast, oil product exports declined due to lower global prices.

The readymade garment (RMG) sector showed resilience, with exports growing around 2.9% in December. Industry representatives highlighted that diversification, better compliance standards, and a shift towards value-added products helped exporters withstand global uncertainties.

Need for Diversification and Policy Support

Export bodies have stressed the importance of market diversification as global trade routes undergo structural changes due to geopolitical tensions, sanctions, and shipping disruptions. Industry leaders believe that while diversification has supported growth so far, continued government support will be critical to sustain momentum.

Overall, while the widening trade deficit underscores near-term pressures from rising imports, policymakers remain confident that steady services exports and diversification strategies will support India’s external trade position over the longer term.

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Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Infosys Q3 Results: Revenue Rises 3.2%, FY26 Guidance Raised

Infosys Q3 Results: Revenue Rises 3.2%, FY26 Growth Outlook Raised on Strong Deal Wins

Strong quarterly performance lifts investor sentiment

Infosys delivered a resilient performance in the December quarter, reporting better-than-expected revenue growth and raising its full-year outlook, supported by robust large deal wins and improving demand visibility. The company’s performance stood out in comparison to some of its larger peers, helping boost investor confidence.

Following the announcement, Infosys shares surged sharply in early trade on overseas exchanges, reflecting optimism around the company’s upgraded guidance and execution strength.

Revenue growth beats expectations

For the third quarter, Infosys reported revenue of $5 billion, marking a 3.2% year-on-year increase in dollar terms. On a sequential basis, revenue rose 0.5%, highlighting steady momentum despite a challenging global macro environment.

In constant currency terms, the company posted 0.6% quarter-on-quarter growth and 1.7% growth compared to the same period last year. This performance was stronger than some industry peers, underlining Infosys’ relative execution strength during the quarter.

Peer comparison

• One major peer reported 0.8% growth in constant currency terms but saw a 2.6% year-on-year decline.
• Another large IT services company delivered comparatively stronger numbers with 4.2% quarter-on-quarter and 4.8% year-on-year growth.

FY26 revenue guidance upgraded

Infosys revised its revenue growth guidance for FY26 to a range of 3%–3.5%, signaling improving confidence in demand conditions and deal execution. Earlier, the company had already raised the lower end of its growth outlook for the current financial year to 2%–3%, from the earlier 1%–3% range.

The management attributed this upward revision to better execution, strong deal momentum, and improving decision-making by clients across key sectors.

Large deal wins drive optimism

Large deal wins during the quarter stood at a solid $4.8 billion, with 57% coming from net-new deals. This indicates stronger client confidence and faster deal conversions, which are critical drivers for future revenue growth.

The company also highlighted improving traction in segments such as financial services and energy, utilities, and resources, which supported overall performance during the quarter.

Margins impacted by exceptional charge

Infosys maintained its operating margin guidance for FY26 at 20%–22%. However, margins for the December quarter came under pressure. Operating margin declined to 18.4%, down 2.6% sequentially and 2.9% year-on-year.

The decline was partly due to a one-time exceptional charge of Rs 1,289 crore, related to the implementation of the revised labour code during the quarter.

Outlook remains constructive

Management commentary pointed to increasing confidence in demand trends, supported by strong deal activity and the company’s growing role as a strategic technology and AI partner for large global clients. This positive outlook has strengthened expectations for a more stable growth trajectory heading into the next financial year.

Overall, Infosys’ Q3 performance and upgraded guidance suggest improving business momentum, positioning the company favorably amid a gradually recovering global IT spending environment.

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Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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