Sparkling quarter for HUL
Google’s Data Centre India bet, Swiggy bleeds more, & Maruti’s bumpy Q1 ride
🗓 Morning, folks!
Markets ended in the red on Thursday, giving up early gains as selling in metal and financial stocks dragged both the Sensex and Nifty down.
Investor sentiment took a hit after the U.S. announced fresh tariffs on Indian goods, along with penalties tied to India’s energy and defence trade with Russia.
FMCG was the lone bright spot, rallying 1.4%, while oil & gas, capital markets, and pharma stocks slipped over 1%, adding to the day’s pressure.
Let’s hit it!
1 Big thing: Google bets big on India💰
Google will invest $6 billion to develop a 1-gigawatt data centre and its power infrastructure in Andhra Pradesh.
The deets: according to government sources, this marks Alphabet’s first such investment in India. The facility will come up in the port city of Visakhapatnam and includes $2 billion in renewable energy capacity to power the centre.
The data centre will be the largest in Asia, both in capacity and investment size, and is part of Google’s broader expansion across countries like Singapore, Malaysia, and Thailand.
The why: Alphabet has reaffirmed its plan to spend $85 billion this year to scale up data centre capacity globally, even as tariff tensions and trade uncertainty continue to swirl.
Meanwhile, Andhra Pradesh has already secured investments for 1.6 GW worth of data centres and plans to scale that up to 6 GW over the next five years.
Why it matters: the GenAI boom has kicked off a new wave of infrastructure investment. Microsoft has pledged $3 billion for cloud and AI infra in India, while Amazon plans to invest nearly $13 billion by 2030. Google’s entry deepens India’s position in the global AI and cloud value chain.
2. Aurobindo expands US footprint with Lannett acquisition 🤝
Aurobindo Pharma’s wholly-owned subsidiary, Aurobindo Pharma USA, has entered into a definitive agreement to acquire Lannett Company LLC from Lannett Seller Holdco.
The deets: the deal is valued at $250 million on a cash-free, debt-free basis. Lannett is a U.S.-based manufacturer and supplier of complex generic pharmaceuticals. The company specialises in non-opioid controlled substances, particularly treatments for ADHD, and has launched several generic liquid formulations in the market.
The why: this strategic acquisition provides Aurobindo with:
a complementary portfolio of profitable products
a growing Contract Development and Manufacturing Organisation (CDMO) business
a U.S.-based manufacturing facility with significant excess capacity and room for future expansion
Why it matters: Aurobindo currently has limited exposure in the ADHD therapeutics space, and this acquisition offers strategic diversification into a high-value segment.
3. HUL Q1 profit rises 5.5% on steady demand
Hindustan Unilever’s June quarter results left the street smiling, with both top line and bottom line washing up stronger than expected. The stock gained 4% post-results in a weak market.
By the numbers:
Revenue: ₹16,323 crore, up 5% YoY
Net profit: ₹2,756 crore, up 5.5% YoY
Segment wise earnings data:
Home Care grew 4%, led by Surf Excel in fabric wash and strong volume in household liquids.
Beauty & Wellbeing rose 7%, with mid-single digit growth in hair care and modest gains in skincare and cosmetics.
Personal Care was up 6%, driven by premium soaps, bodywash, and mid-single digit growth in oral care (Closeup).
Foods & Refreshment grew 5%, powered by double-digit gains in tea & coffee and steady performance in packaged foods, despite weather impacting ice cream sales.
While HUL has not broken out exact numbers for Minimalist’s contribution in Q1 FY26, the early integration clearly supported better-than-expected growth in skincare and premium beauty categories. The brand's performance underscores HUL’s strategy to fast-track transformation using acquisitions.
Moreover, HUL had to pay less tax this time because of a one-time adjustment, which gave its profit an extra 12% boost.
CEO Rohit Jawa says FMCG demand is stable with a gentle upward curve. HUL is stepping up investments to push portfolio transformation, betting on its ASPIRE strategy to keep growth bubbling through innovation, digital, and next-gen channels.
Zoom out: markets concern with old school FMCG giants like HUL was that they may be decaying in the quick commerce and D2C era. While that may be partly true, management is recognizing damage, and change is in motion. Investors loved seeing signs of that recovery play out.
While we are on earnings,
Maruti Suzuki’s June quarter was a mixed ride as revenue accelerated, but profit growth was modest and margins skidded.
By the numbers:
Revenue up 8% YoY at ₹38,414 crore
Net profit up 2% YoY at ₹3,712 crore
Sales volume up 1.1% at 5.28 lakh units
Domestic sales down 4.5% at 4.31 lakh units
What’s driving the numbers: weak domestic demand dented overall sales, but strong export growth especially in compact and SUV segments kept total volumes in the green.
However, higher input costs and an unfavourable sales mix weighed on profitability, trimming margins from last year’s levels.
4. Swiggy’s Q1 losses widen, Q-comm feels the heat 🌡️
Food and grocery delivery platform Swiggy’s losses deepened in Q1, with net loss widening nearly 96% to ₹1,197 crore, up from ₹611 crore in the same quarter last year. The spike in losses was largely driven by its Quick Commerce division, Instamart, where losses rose compared to the year-ago period.
The deets: Swiggy’s revenue from operations surged 54% YoY to ₹4,961 crore, up from ₹3,222 crore. The platform’s average monthly transacting users also grew 35.2% YoY to 21.6 million, reflecting healthy user engagement.
Quick Commerce Check: Instamart’s revenue more than doubled to ₹806 crore YoY. However, the company added just 41 dark stores during the quarter, taking the total to 1,062.
As long as that overall growth remains steady, investors could be forgiving of the losses. But that privilege is time bound — major share wins against Zomato and Zepto are needed.
5. Stocks that kept us interested 🚀
1. Bharat Forge teams up with Pratt & Whitney for ring mill ✅
Bharat Forge has signed a contract with aerospace manufacturer Pratt & Whitney Canada for setting up a new ring mill for aerospace applications. However, the stock slipped 2% in Thursday’s trading session.
Pratt & Whitney Canada designs, manufactures, and services aircraft engines for business, regional, helicopter, and general aviation markets globally.
What’s happening: the new ring mill will be set up as part of Bharat Forge’s ongoing expansion of its aerospace manufacturing capabilities. This facility is designed to produce high-performance aerospace products for aero-engine applications, leveraging cutting-edge technologies and adhering to the global quality standards.
Why it matters: this partnership marks a significant step in advancing India’s manufacturing capabilities in high-value aerospace components. It not only strengthens Bharat Forge’s aerospace play but also boosts India’s position in the global aerospace supply chain.
Quick bite: Pratt & Whitney supplies engines to IndiGo, which has the world’s biggest fleet of A320neo planes using these engines.
2. Orchid Pharma shares hit upper circuit as antibiotic comes home 💊
Orchid Pharma surged 5% locking in the upper circuit after the company announced that it has acquired 100% global ownership of Enmetazobactam, a novel antibiotic originally discovered and developed in-house.
The drug is marketed as EXBLIFEB in international markets by Germany-based Allecra Therapeutics, and as Orblicef in India.
Enmetazobactam is one of India’s most significant contributions to global antibiotic innovation, and Orchid’s move to reclaim it positions the company to directly benefit from its commercial success across global markets.
Orchid had out-licensed the global rights (excluding India) to Allecra back in 2013. In a major reversal, the company has now bought back all global rights from the German firm.
Why it matters: Orchid says bringing the drug back under its control means India’s first homegrown antibiotic is now fully owned again. This move is also expected to make the company’s range of infection-fighting medicines stronger.
What else are we snackin’ 🍿
🤑 IPO jackpot: the NSE is set to earn a 6,415% return on its ₹59 crore NSDL investment, now worth ₹3,840 crore. The IPO opened on July 30.
🎯 Gaming reform: Google plans to change its rules for hosting real-money gaming apps on India’s Play Store to avoid an antitrust probe.
🤖 AI push: German insurer Ergo plans to spend over €130 million in five years to build AI tools, with its India team playing a big role in the company’s global tech upgrade.
And that’s a wrap. Pour yourself an extra one this weekend.
We’ll be back like clockwork on Monday!
Hit that 💚 if you liked this issue.