Tariff man strikes again
Tata Motor's acquisition, LG wins Tesla contract, and Axiscades takes off
🗓 Morning, folks!
Markets extended gains for the second straight session on Wednesday, with the Sensex and Nifty edging higher and outperforming broader indices.
Cautious global cues and nerves ahead of the August 1 U.S. tariff deadline kept investor sentiment on edge.
💡 Spotlight: just hours after announcing a 25% tariff on Indian imports starting Friday, Trump walked it back, slightly. He told reporters talks are still ongoing and hinted India may cut its “very high” tariffs.
The penalty, still vague, is tied to India’s Russian oil buys, military deals, and BRICS alignment, what Trump called “obnoxious trade behavior.”
India responded cautiously, saying it's reviewing the announcement but remains committed to a fair, balanced agreement.
The 25% tariff, steeper than for other nations, would hit Indian exporters hard, especially in textiles, furniture, and pharma, sectors where margins are thin.
Analysts warn the move could unravel months of trade talks and strain one of Washington’s key strategic partnerships.
India is now racing against the Friday deadline to avoid what could be its most serious trade blow in years.
Let’s hit it!
1 Big thing: IndiGo expands capacity but profits take a hit ✈️
InterGlobe Aviation, which operates the low-cost carrier IndiGo, posted its Q1 results, missing market estimates as net profit declined 20% YoY.
By the numbers:
Net Profit down 20.2% at ₹2,176 cr
Revenue up 4.7% at ₹20,496 cr
EBITDA up 1.3% at ₹5,226 cr
The airline carried over 31 million passengers during the quarter, marking a 12% YoY increase. Capacity also rose 16.4% to 4,230 crore, reflecting continued network expansion.
What led to the revenue growth: rise in domestic travel during the quarter, as demand for domestic travel in India has continued to surge for the past six quarters.
Air passenger traffic rose 4.4% on year in Q1FY26 to 419.8 lakh passengers carried during the quarter.
Zoom out: IndiGo remains the dominant player in Indian aviation. But Q1 results hint at a normalising post-COVID surge, and the road ahead may be more competitive. Fuel costs, forex volatility, and international expansion will be key factors shaping profitability in the quarters to come.
2. Tata Motors eyes Iveco in $4.5 billion deal 🤝
Tata Motors shares fell over 3% after reports emerged that the company may acquire Italy-based Iveco Group’s truck business for $4.5 billion from the Agnelli family.
Iveco is an Italian multinational transport vehicle manufacturing company with headquarters in Turin, Italy. It designs and builds light, medium, and heavy commercial vehicles.
The deets: Iveco Group confirmed that it is in talks to sell its defence and commercial truck manufacturing business.
If completed, the transaction would mark Tata Group’s second-largest acquisition ever, after its Corus buyout, and Tata Motors’ biggest deal since acquiring Jaguar Land Rover for $2.3 billion.
Why it matters: this strategic acquisition is expected to significantly bolster Tata Motors’ presence in Europe and enhance its commercial vehicle manufacturing capabilities. It would also provide a substantial upgrade to the company’s design and technological offerings in the commercial vehicle segment, increasing its appeal among European customers.
While, we are on acquisitions,
Zaggle has acquired a 100% stake in fintech startup Rivpe Technologies, popularly known as Rio.Money, in a cash deal worth ₹22 crore.
What’s brewing: founded in 2023, Rio Money offers a cutting-edge UPI app that seamlessly integrates credit into UPI transactions. The deal will help Zaggle diversify its fintech portfolio and strengthen product offerings in both UPI and credit cards.
This will also leverage Rio.Money’s capabilities to target a wider consumer base and tap into the growing digital payments and credit markets in India.
Worth noting: this is the fifth acquisition for Zaggle in 2025, last month it acquired a 100% stake in Dice and GreenEdge Enterprises for ₹150 crore.
3. LG Energy wins $4.3 billion Tesla contract 🔋
LG Energy Solution (LGES) has signed a $4.3 billion deal to supply energy storage system (ESS) batteries to Tesla, in a move that strengthens both companies’ positions amid growing US-China trade tensions.
The deets: the lithium iron phosphate (LFP) batteries will be produced at LGES’s Michigan facility, helping Tesla reduce its reliance on Chinese imports. LGES already supplies lithium-ion batteries for Tesla’s Model 3 and Model Y vehicles made in China and Europe.
Why it matters: LFP batteries have been dominated by Chinese players, but LGES is one of the few producing them in the U.S., making this a strategic win. The deal gives Tesla supply chain security, and helps LGES tap into the surging demand for grid-scale storage as AI-fueled data centres drive up electricity consumption globally.
Zoom out: with EV sales softening, LGES is doubling down on energy storage, where the growth curve is only getting steeper.
4. Stocks that kept us interested 🚀
1. Axiscades bags ₹600 Cr defence electronics orders
Axiscades Technologies’ shares jumped 5% to hit the upper circuit on Wednesday after its defence subsidiaries secured orders worth ₹600 crore.
The deets: the order is for defence electronics across airborne, naval, and radar projects from top Indian defence laboratories.
The contracts involve designing and delivering advanced sub-systems for key indigenous platforms built by DRDO and Defence PSUs.
Key wins from the new orders include:
Build components for VIRUPAKSHA (AESA) Radar to replace Russian systems on Su-30 jets
Deliver TR Modules to boost long-range S-Band radar performance
Develop core units for KUSHA, India’s 500+ km range battle management radar
Make Homing Receivers for next-gen submarine-launched torpedoes
Supply sub-systems for Sonar Systems to strengthen undersea warfare
Zoom out: the global defence electronics market was worth $175 billion in 2024 and is growing at a nearly 6% rate. In India, the broader defence market is valued at about $30.5 billion in 2025 and it is expected to grow to $37.6 billion by 2030.
2. KEC International wins ₹1,509 cr global orders
KEC International rose nearly 2% after announcing fresh orders worth ₹1,509 crore across its core infrastructure segments.
The company, which builds and supplies infrastructure for power transmission, cables, railways, and civil projects, said the new orders span Transmission & Distribution (T&D), cables & conductors, and transportation.
In power transmission, KEC bagged a 400 kV quad line project in India and high-voltage 500/400/220 kV projects overseas. It will also supply towers, fittings, and poles to customers in the Americas and Middle East.
For context: a 400 kV quad line is a high-capacity transmission line that delivers large volumes of electricity across long distances, essential for powering cities and industrial zones.
What else are we snackin’ 🍿
🚀 Liftoff mode: ISRO in partnership with NASA successfully launched NISAR, a radar imaging satellite from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh.
🤳 Telecom trends: in June, Reliance Jio gained over twice the wireless subscribers compared to Airtel, while Vodafone Idea & BSNL continued to lose ground in the telecom market.
❌ Tariff war: China & the US to extend tariff pauses after “constructive” talks, with duties staying at 30% on Chinese goods & 10% on US products.
That’s a wrap! Don’t let the weekday blues get to you.
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