May 13, 2026 | Mumbai

India’s passenger vehicle (PV) industry is set to see overall sales volume accelerate 5-7% to ~5.9 million units—its highest ever level—this fiscal, riding on the reduction in the goods and services tax (GST) last September and sustained consumer preference for utility vehicles.

But the operating environment is changing. While the GST tailwind continues, utility vehicles share has risen to 67% last fiscal and further gains are expected to be gradual. Rising input costs due to the West Asia conflict and expanding regulatory compliance requirements are factors to watch even as domestic demand stays healthy.

Our analysis of passenger vehicle makers accounting for about 94% of the wholesale volume indicates as much. For the record, domestic volume forms ~86% of the output and exports the rest.

The GST rate cut transformed demand for passenger vehicles last fiscal, propelling volume by 16.7% in the second half, reversing a 1.4% decline in the first half and lifting the full-year domestic growth to 7.9%.

Says Anuj Sethi, Senior Director, Crisil Ratings, “The GST tailwind will continue in fiscal 2027, though its intensity will moderate gradually. The small car segment, at ~30% of domestic volume, is expected to grow 2-4% on improved affordability and renewed first-time buyer interest amid a stable interest rate environment. Utility vehicles will continue to lead with 7-9% growth driven by a structural consumer preference for larger feature-rich vehicles and a widening model range across price points. We expect their share in the overall volume mix to continue rising from 67% last fiscal to 69% in fiscal 2027.”

The West Asia situation, however, bears watching on two counts. First, any meaningful rise in fuel prices could dampen demand as conventional fuel1 based vehicles still dominate the domestic market. Second, after a strong 17.5% uptick in fiscal 2026 to 0.9 million units, with West Asia accounting for about 25% of the total export volume, export growth is set to slow to 6-8% this fiscal, on account of the ongoing conflict impacting demand and a sharp rise in transportation costs.

Says Poonam Upadhyay, Director, Crisil Ratings, “The West Asia conflict has pushed up commodity prices and freight costs sharply. Most manufacturers have taken calibrated price hikes of 1-3% so far this fiscal, passing on only a part of cost increase to protect volume momentum. The GST cut of September 2025 had reduced prices by 11-13% on sub-4 metre vehicles, forming little over half of the total volumes. With prices in this segment still well below pre-reform levels, demand impact is expected to remain limited and volume momentum likely to hold, provided there is no significant rise in fuel prices.”

The industry is simultaneously entering a transformative regulatory phase. The Corporate Average Fuel Efficiency (CAFE)-III norms take effect from April 1, 2027 through fiscal 2032, Bharat Stage VII emission standards are also on the anvil, and the government is also considering higher ethanol blending targets. Together, these will progressively add to manufacturers costs and investment requirements.

Electric vehicles, at ~5% of the passenger vehicle volume, stand to benefit from this regulatory push over time. Charging infrastructure, however, remains the critical enabler and its pace of development will determine how quickly penetration can scale. The pace of cost pass-through to buyers will remain a key monitorable as the regulatory cycle unfolds.

Revenue is expected to grow 9-10% this fiscal, largely volume-led, with incremental support from calibrated price hikes. However, rising costs of steel, aluminium, copper and platinum group metals, compounded by elevated shipping costs, will compress operating margins by 50-80 basis points to 9.7-10% (~10.5% last fiscal). Despite this, near debt-free balancesheets and robust liquidity will keep credit profiles healthy even as these cost pressure persists.

The West Asia developments and their impact on commodity prices, fuel prices and supply chains, implementation of new regulations, and consumer response to further price increases will be the key factors to watch as fiscal 2027 unfolds.

Our Bureau
Mumbai

India’s jewellery sector has called for a structured gold monetisation scheme and urged consumers to exchange old ornaments for new pieces, after the government raised import duty on gold and other precious metals in a move set to push up costs nationwide.

Calls for a structured gold monetisation scheme reflect a growing consensus that mobilising domestic holdings could ease pressure on imports and strengthen the trade.

“We believe this is the right moment for the industry and the government to come together and formalise a robust gold monetisation scheme. India holds an estimated 25,000 tonne of gold sitting idle in homes,” Raghav Dhir of Dhirsons Jewellers (Dhiraj Dhir Group) said.

Unlocking even a fraction of that through a credible, consumer-friendly programme would reduce India’s dependence on imports, ease forex pressure, and fuel domestic trade.

“The policy intent is clear; what we need now is a structured mechanism that gives consumers the confidence to participate,” he added.

Talking about the hike in import duties on precious metals, he added, it was a significant policy shift and will inevitably push up costs. However, this is also an “timely opportunity” for consumers to rethink how they engage with gold.

“We strongly encourage our customers to bring in their old gold and exchange it for new jewellery. This is one of the smartest ways to stay ahead of rising prices while refreshing your collection,” Dhir added.

India has sharply raised customs duties on imports of gold, silver and platinum in a bid to safeguard foreign exchange reserves, heightened by the global uncertainty stemming from the West Asia crisis. The Ministry of Finance announced late Tuesday that the effective import tax on gold and silver has been hiked to 15%, and that of platinum to 15.4%.

India hikes import duties on precious metals amidst West Asia crisis

Industry backs government

The All-India Gem and Jewellery Domestic Council (GJC) also backed the government’s decision, describing the increase in customs duty as a temporary measure taken in the national interest.

“GJC and the entire gems and jewellery industry stand firmly with the nation and respect the Government’s policy decisions taken in the larger national interest. We believe the increase in customs duty is a temporary and calibrated measure in the present economic scenario,” GJC Chairman Rajesh Rokde said.

He urged the industry to remain calm, noting that India’s jewellery sector had consistently demonstrated resilience and adaptability during challenging times. Rokde pledged that GJC would continue to work closely with the government and stakeholders to ensure stability, consumer confidence and sustained growth.

Earlier on Tuesday, Jefferies said in a report that customs duty on gold, which was reduced to 6% from the earlier 15%, could be increased again.

India may hike customs duty on gold: Jefferies

“Gold and jewellery are deeply connected with India’s economy, traditions, and savings culture. At this juncture, it is important for the trade fraternity to avoid panic and continue business with confidence and responsibility,” Avinash Gupta, Vice Chairman of GJC, said.

Gupta added that GJC fully supported the nation’s broader economic priorities and remained committed to constructive engagement with policymakers to safeguard the interests of artisans, traders and consumers, while ensuring long-term growth and stability of the sector.

India is the world’s second-largest consumer of gold, with imports meeting most of its demand. Higher duties typically raise costs for jewellers and can dampen consumer sentiment, particularly during peak buying seasons such as weddings and festivals.

In an address earlier, PM Modi urged households to adopt austerity measures and avoid buying gold jewellery for one year.

By Our IT Bureau
Bengaluru, May 11, 2026

Nascent Information Technology Employees Senate (NITES), an IT employee’s union, has asked the Indian government to issue an advisory for mandatory work-from-home (WFH), triggered by the Prime Minister’s appeal for fuel conservation.

In a letter addressed to the Minister for Labour and Employment, Mansukh Mandaviya, the union argued that such a move is a “responsible economic and national-support measure” aligned with broader national interests.

The union urged the ministry to direct IT companies to implement mandatory WFH “wherever operationally feasible” to help the nation respond “intelligently and responsibly to global challenges through technology-driven governance”.

NITES, a representative body for employees in India’s IT and IT-enabled services, highlighted that the IT sector has already proven its ability to function effectively without physical offices during the COVID-19 pandemic.

The “mandatory WFH in suitable IT and digitally deliverable roles is practical, technologically feasible, and operationally sustainable”, it said.

The union also stated that that requiring hundreds of thousands of employees to undertake long daily commutes places “unnecessary pressure on fuel consumption, urban infrastructure, public transport systems, road congestion, and employee well-being”.

Prime Minister’s Call

The call for remote work follows a recent appeal by Prime Minister Narendra Modi, who urged citizens and business establishments to adopt measures such as virtual meetings and WFH work-from-home arrangements. The Prime Minister’s appeal was a strategic response to the current global geopolitical climate, intended to drive fuel conservation and address the larger economic situation.

NITES described this statement as “a national call for collective responsibility during a sensitive period where reducing fuel dependency, traffic burden, and unnecessary consumption becomes part of contributing towards national interest”.

NITES emphasised that its objective is not to create a confrontation with employers but to foster “collective national cooperation”.

The letter, signed by NITES President Harpreet Singh Saluja, concluded with a request for “kind and urgent consideration” to balance economic growth with environmental responsibility.

Our Bureau
Mumbai, May 9, 2026

India’s telecom sector is expected to maintain a comfortable credit profile as subscriber growth and broadband penetration continue to rise, India Ratings and Research (Ind-Ra) said. 

Further, continued rise in data usage and 5G adoption would support higher realisations for telecom operators. 

“The growing industry subscriber base (both overall and active subscriber base) and consistently increasing data penetration are likely to continue to support revenue and profitability growth for telecom companies (telcos) over the near to medium term,” said Priyanka Bansal, Director, Corporates, Ind-Ra. 

The total subscriber base increased to 1.331 billion in March 2026 from 1.321 billion in February, largely driven by wireless additions. Bharti Limited led with 5.2 million new subscribers, followed by Reliance Jio Infocomm Limited with 3.7 million. Vodafone Idea Limited and Bharat Sanchar Nigam Limited reported negligible growth. 

Subscriber quality also improved, with the visitor location register (VLR) rising to 93.7% in March 2026 from 90.8% two years earlier. The active subscriber base grew by 8 million month-on-month to 1.186 billion, supported by additions at Jio, Airtel and Vodafone Idea, while BSNL saw a decline. 

Broadband penetration rose to 79.5% in March 2026 from 77.6% a year earlier. Within three years of rollout, 5G adoption reached 40.3% of the subscriber base, or 434 million users. Average monthly data usage has surged to between 20GB and 62GB per user, compared with 6GB to 11GB in FY19. 

Our Bureau
Mumbai, May 7, 2026

Thailand has approved six investment projects worth a combined 958 billion baht ($29 billion), led by a massive data infrastructure expansion by TikTok, the country’s Board of Investment (BOI) said.

The approvals come as Southeast Asia’s second-largest economy moves to position itself as a regional hub for data centres, cloud services, and artificial intelligence-driven infrastructure.

TikTok System (Thailand) Co. Ltd. secured approval for the largest project, valued at 842 billion baht ($25 billion). The social media giant plans to install additional servers and expand data storage across Bangkok, Samut Prakan, and Chachoengsao provinces to meet surging demand for digital services.

“Amid continuing global volatility, investment in Thailand’s digital and advanced technology sectors continues to grow,” BOI Secretary General Narit Therdsteerasukdi said in a statement. “For Thailand to capture this new investment cycle, we must be ready not only with investment incentives, but also with sufficient power [and] clean-energy options.”

Two other significant data centre projects were approved: a 46 billion baht ($1.4 billion) investment by UAE-based DAMAC Group’s Skyline Data Center, and a 24.6 billion baht ($746 million) facility by Singapore’s Bridge Data Centres.

To support these energy-intensive industries, the BOI board, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, met with energy officials to fast-track access to clean power. Discussions included Direct Renewable Power Purchase Agreements (Direct PPA) and new green tariffs to allow private firms to buy renewable electricity directly.

Press Release: Thailand Approves $29 Billion Investment Wave as Data Center Demand Surges

The board also expanded its FastPass mechanism, adding nine projects worth 52 billion baht to a streamlined approval process designed to bypass regulatory bottlenecks.

Other approved investments included ASEAN Potash Chaiyaphum Plc (31.4 billion baht for potassium chloride production), PureCycle Thailand (8.18 billion baht for a recycled plastic pellet plant using P&G technology), Dan Khun Thot Wind One (4.7 billion baht for an 89-megawatt wind farm).

The BOI noted that TikTok has also committed to developing digital literacy and e-commerce training for Thai entrepreneurs as part of its infrastructure rollout.

By Our Bureau
Mumbai, May 7, 2026

Karnataka’s tech startups raised $868 million through 117 funding rounds in the first quarter of 2026, with Bengaluru capturing 98% of funding at $848 million, according to a report by data intelligence platform Tracxn Technologies Ltd.

Karnataka Tech’s $868M Quarter: Bigger Bets, Earlier Stages, Bolder Exits

The top funding rounds of the period were led by Zetwerk’s $53 million Series F, backed by Pantomath Group, followed by Ultrahuman’s $48 million Series C and Cult.fit’s $47 million Series G backed by Temasek.

Porter rounded out the top four with a $47 million Series F from Wellington and Kedaara. All four of the largest rounds went to companies founded before 2020, a testimony that mature businesses continue to scale rather than new entrants breaking through.

The top business model by capital deployed was On-Demand Manufacturing Services ($52.8 million), with DTC Fitness Tracker Brands ($48 million) and Employee Healthcare Services ($47 million) close behind.

The number of funding rounds fell 38% to 117 from 188, but investors wrote larger cheques, signalling conviction at earlier stages.

“Seed stage funding reached $137 million, up 51% from the previous quarter,” Tracxn said, even as late-stage capital plunged 43% to $317 million.

A cluster of Series A rounds between $13 million and $30 million reflected broad early-stage deployment across sectors including fintech (Juspay, Stable Money, Olyv), B2B payments (XFlow), aerospace (Bellatrix Aerospace), and AI infrastructure (Portkey, Nurix). The Fitness & Wellness Tech feed attracted $97.1 million in total — the highest of any thematic feed — while Employee Health IT drew $67.5 million and Payments $61.1 million, underscoring the continued institutional interest in health and financial infrastructure plays.

Soonicorn Club

Despite the slowdown, two firms – Supertails and Assiduus – joined Karnataka’s “Soonicorn Club”, bringing the tally to 120.

Enterprise Applications led sectoral funding with $331 million, followed by Retail at $275 million and FinTech at $152 million. Retail’s 130% surge was the sharpest swing of the quarter, driven by renewed appetite for consumer commerce platforms.

Three companies – Amagi, Shadowfax and e2E Rail – got listed in January, compressing what is usually a spread-out exit window, Tracxn said, adding that the cluster of IPOs did not necessarily reflect a broad reopening of public markets.

Bengaluru remained the state’s tech capital, capturing 98% of funding at $848 million. Tiptur accounted for the remaining 2%, entirely from Akshayakalpa’s $19.3 million Series D.

On exits, six acquisitions were recorded, down from 20 a year earlier. Marico’s $24.9 million purchase of Cosmix was the only deal with a disclosed value. Edtech consolidation continued with upGrad acquiring Unacademy.

Tracxn tracks over 7.5 million entities globally and publishes quarterly reports on India’s regional startup ecosystems.

By Our Bureau
Mumbai, May 5, 2026

Ambuja Cements Ltd, part of the Adani Group, is resetting its strategy to prioritise profitability and return on equity, with capital expenditure plans scaled back, brokerage Nuvama Institutional Equities said in a report on Tuesday.

The company’s capital expenditure for the financial year ending March 2027 has been cut to ₹6,000–6,500 crore, down from ₹7,500 crore in FY26. The firm had earlier targeted cement capacity of 117 million tonnes per annum (MTPA) by FY26 and 155 MTPA by FY28, with annual spending of about ₹8,000 crore. Management now expects capacity to reach 119 MTPA by FY27, compared with 109 MTPA at end-FY26, Nuvama said following an earnings call.

Some efficiency-related projects have been delayed by three to six months. Ambuja believes that without stronger profitability, fresh capital expenditure would dilute returns, and is instead focusing on improving margins through better distribution networks and lower raw material and energy costs.

Sales volumes rose 9% year-on-year to 19.9 million tonnes, but profitability per unit weakened. Earnings before interest, tax, depreciation and amortisation (EBITDA) per tonne fell 28% to ₹736, hit by a 7% rise in operating costs. The company’s long-term capacity goal of 140 MTPA has been pushed back by one to two years, with a new target of FY30, it said, adding, the management is concentrating on stabilising recently acquired assets, including Sanghi and Penna, rather than pursuing further large-scale acquisitions, Nuvama added.

Ambuja Cements Ltd has set capital expenditure for FY27 at ₹6,000–6,500 crore, with most of the allocation directed towards ongoing projects such as capacity expansion, waste heat recovery systems, fly ash handling, debottlenecking and routine maintenance, according to brokerage Motilal Oswal.

The firm reported consolidated revenue of ₹10,920 crore in the year to March, up 9% from a year earlier, but earnings before interest, tax, depreciation and amortisation (EBITDA) fell 22% to ₹1,460 crore. Analysts attributed the shortfall to higher operating costs.

The firm’s management has adopted a cautious stance on the sector, projecting industry demand growth to ease to about 5% in FY27. Despite this, Ambuja is targeting an 8% rise in consolidated volumes, aiming to outpace the broader market.

According to HDFC Securities Institutional Equities (HSIE), the company has guided for an 8% annual growth in volumes, with lower capex for FY27. Ambuja’s management has chosen to slow expansion and concentrate on operating expenditure reduction, aiming for savings of ₹500 per tonne between FY26 and FY28, following a weak cost performance in the second half of FY26.

In the March quarter of FY26, total volumes rose 8% while like-for-like volumes slipped 1%. Unit EBITDA was steady at ₹728 per tonne, reflecting limited pricing gains and higher operating costs. HSIEhas retained its “buy” rating with a target price of ₹580 per share, valuing the company at 15.5 times its consolidated FY28 estimated EBITDA.

In its report, brokerage Systematix Institutional Equities said that the reduction in capex reflects a more disciplined approach to capital allocation and optimisation of existing assets. Of the total capex of ₹6,000–6,500 crore, about ₹400 crore is earmarked for ongoing projects and the balance directed towards debottlenecking and maintenance. The company is targeting an internal rate of return of 18% on these projects. 

For Ambuja Cements, organic growth remains the priority, with new clinker lines planned at Mundra and Assam, each of 2 million tonnes per annum, alongside grinding units closer to demand centres such as Bihar. Ambuja expects to reach 119 MTPA by end-FY27, supported by 10 million tonnes of new grinding capacity, Systematix said.

On costs, the management in the earnings call highlighted delays in fly ash infrastructure, which have kept raw material expenses elevated. Savings of ₹150–200 per tonne are anticipated once systems are operational, aided by green energy initiatives. Freight costs rose in the March quarter due to longer transport leads and higher packing expenses, partly linked to disruptions from the West Asia conflict. 

The ramp-up of Sanghi’s utilisation is tied to marine infrastructure, with seven vessels ordered for phased delivery from next year. During FY26, Ambuja expanded total cement capacity to 109 MTPA, driven by 10.7 MTPA of new grinding units and 7 MTPA of clinker additions at Jodhpur and Bhatapara. Further additions are planned in H1FY27, including a clinker unit at Maratha, taking capacity to about 119 MTPA. 

Ambuja Cements reported a subdued March quarter, with revenue broadly in line but earnings before interest, tax, depreciation and amortisation (EBITDA) falling short of expectations due to lower volumes, weaker realisations and persistent cost inflation, brokerage Centrum Institutional Research said. 

Ambuja Cements Q4 cons net rises 37% to ₹1,857.43 crore

Centrum highlighted multiple cost headwinds, including higher kiln fuel expenses, clinker inventory build-up, longer transport leads during plant shutdowns, and elevated branding, packaging and tax costs. Additional pressures stemmed from supply constraints in packaging and labour migration during state elections. 

Centrum said Ambuja’s strategic shift towards ramping up utilisation before fresh capacity additions underscores disciplined capital allocation and a focus on maximising return on capital employed. Over the medium term, benefits from ongoing expansions, better use of acquired assets, merger synergies, premiumisation and cost optimisation are expected to support earnings. 

By Our Bureau
Mumbai, May 4, 2026

Global investment firm Carlyle acquired majority stakes in Knack RCM and EqualizeRCM, two leading U.S. healthcare revenue cycle management (RCM) providers, aiming to create an AI-native, global, multi-specialty RCM platform. The financial terms of the transactions were not disclosed.

Press Release: Carlyle Acquires Knack RCM, EqualizeRCM to Create an AI-Native, Global Multi-Specialty Healthcare RCM Platform

Carlyle will fund the investment from funds affiliated with Carlyle Asia Partners VI and Carlyle Asia Partners Growth II. The founders of both US-based companies, Rajiv Sharma of Knack RCM and Nagi Rao of EqualizeRCM, will remain invested in the platform through a reinvestment of a portion of their proceeds, it said in a release.

 “One of the core tenets of this investment is to build a scaled, strategically attractive physician and rural hospital RCM platform in a fragmented industry. Carlyle has a track record of executing similar strategies in sectors such as auto components and pharmaceuticals,” Amit Jain, Partner and Head of Carlyle India Advisors, said.

The companies are considered complementary providers serving physician groups, durable medical equipment (DME) providers, rural hospitals, and other specialty segments. Together, they offer expertise across anaesthesia, eyecare, behavioural health, and urgent care.

“The U.S. healthcare revenue cycle market is growing rapidly, driven by margin compression, workforce shortages, and the shift to value-based care,” said Kapil Modi, Partner at Carlyle India Advisors. “Carlyle has significant experience in scaling RCM platforms to achieve market leadership and we believe Knack and Equalize stand out as leaders with their AI-native, specialty‑focused, and outcomes‑driven approach, which aligns well with the growing needs and demand in healthcare RCM.”

The strategy builds on Carlyle’s experience in the healthcare technology sector, where it has previously invested in platforms such as Indegene and CorroHealth.

The transactions would enhance operational scale and broaden the delivery footprint for both entities. Knack RCM operates a global delivery model across the U.S., India, and the Philippines, powered by its orchestration platform, Workmate. EqualizeRCM features established U.S. and India-based delivery alongside AI-driven tools like Bill Smart, which is designed for denial prediction and avoidance.

“Our clients, particularly rural hospitals and behavioural health providers, face immense pressure in sustaining margins and ensuring access to care,” said Nagi Rao, Founder of EqualizeRCM. “Partnering with Knack enables us to integrate our advisory expertise with their advanced analytics and global operations, to deliver more robust and tailored solutions. We are excited to work with Knack and Carlyle to drive wider adoption of our AI-native platform to support healthcare providers.”

New Jersey-headquartered Knack RCM has over 8,000 employees across 10 delivery centres in India, the Philippines and the United States, while EqualizeRCM is a U.S.‑based revenue cycle management company serving physicians, hospitals, ambulatory surgery centres, laboratories and rural providers.

Our Correspondent
Mumbai, May 4, 2026

Associated Alcohols & Breweries Limited (AABL) has received bankruptcy court’s approval to acquire SDF Industries for ₹30.85 crore, a move that will help the company start bottling operations in Keralam.

The firm received approvals from the National Company Law Tribunal’s Kochi bench for the acquisition of SDF, which operates a distillery and bottling plant in Thrissur. Upon completion, SDF Industries will become a wholly-owned subsidiary of AABL, the company said on Monday.

Press Release: AABL Strengthens Position in Keralam, Receives NCLT Approval to Acquire SDF Industries

The move marks a strategic shift for the Madhya Pradesh-based distiller, which has operated in Kerala since 2018 through third-party bottling arrangements. AABL currently ranks among the top three private players in the state, with monthly sales of about 1.50 lakh cases.

“We aim to further solidify this position with the help of this acquisition, thereby enhancing operational control and efficiency,” Prasann Kedia, Managing Director of AABL, said.

Kedia added that the acquisition would facilitate the launch of new products in Kerala and neighbouring states, as well as support international exports.

AABL plans to shift the production of brands including Lemount White Brandy and Jamaican Magic Rum to the Thrissur facility. The company expects to upgrade the 10-acre site with new technology and targets the commencement of operations by September 2026.

The SDF facility currently holds a bottling capacity of 3.60 lakh cases per month and a licence for 7.5 million litres of Extra Neutral Alcohol (ENA) per year. The group’s portfolio includes premium spirits such as Nicobar Gin and Hillfort Whisky.