Snowball Effect 📈

Pine Labs Q2FY27 Results Q2FY27 Financial Performance - REV🔼24% YOY - Rs. 806 CR EBITDA🔼27% YOY - Rs. 155 CR EBITDA margin: 19.2% vs 18.8% in Q2FY26 PAT grew by 6x - Rs. 39 CR Contribution margin 🔼18% YOY - Rs. 587 CR Pine Labs operates across two broad platforms: Digital Infrastructure & Transaction Platform (DITP) => In-store and online payment acceptance => Flow, affordability and transaction processing => Fintech infrastructure and data APIs Issuing & Acquiring Platform (IAP) => Prepaid and other card issuance => Processing and distribution => Corporate gifting, employee benefits and mobility Q2FY27 Revenue Mix - => DITP: Rs. 532 CR; +21% YOY => IAP: Rs. 275 CR; +31% YOY DITP contributes approximately 66% of revenue, while IAP is growing faster. The combination gives Pine Labs exposure to both merchant payment infrastructure and expanding prepaid/issuing use cases. Pine Labs reported: => 22.3 lakh Digital Checkout Points (+17% YoY) => 11.6 lakh merchants (+13% YOY) => Mid-market DCP growth of 49% YOY => Subscription revenue at 27% of total revenue => 29%+ of DITP GTV monetised through Flow, Affordability and Online Payments, versus 18% a year ago 👉The strategy is moving beyond installing payment terminals. It is about generating more revenue from each merchant through additional services. Platform GTV reached approximately Rs. 4.45 lakh CR but overall GTV grew only around 5% YOY. However, excluding Fintech Infrastructure, GTV reached Rs. 2.66 lakh CR, growing 31%. Fintech Infrastructure GTV was Rs. 1.79 lakh CR, while transactions in that business grew 33%. UPI Is a Major Growth Engine UPI-related metrics: • Over 70% of DCP transactions are UPI-led. • UPI GTV grew 77%+ YOY. • Monthly UPI GTV was approximately Rs. 20,000 CR. • Management targets Rs. 33,000–34,000 CR monthly UPI GTV in FY28 Pine Labs is also planning approximately 10 lakh QR soundbox deployments over the medium term. Management sees an opportunity from the proposed MDR framework for eligible UPI merchant transactions above Rs. 2,000. Over 65% of Pine Labs' UPI GTV comes from transactions above Rs. 2,000. The company expects to earn its share through acquiring-bank partners if the framework is implemented. Online Payments Is Scaling Rapidly Online payments delivered revenue growth of 45% and GTV of 140% YOY. Growth opportunities include: • Cross-border payments • SMB commerce • Government payment corridors • Agentic commerce International Expansion Pine Labs operates across 22+ markets. Key Highlights: => Southeast Asia revenue grew approximately 40% YOY. => International DCPs in Southeast Asia increased 2.7x. => UAE daily transactions crossed approximately one lakh. => Credit processing operates across 17+ markets. AI and Agentic Commerce Pine Labs is investing in AI-led commerce infrastructure. 👉Key developments - => A live autonomous agentic transaction demonstrated on BigBasket. => An Agent Toolkit for automating merchant workflows. => Cross-border import payment capabilities. => AI adoption across internal engineering and operations. Management says approximately 89% of code changes are contributed by AI agents. More importantly, 14% of quarterly revenue came from products launched within the previous two years. Cash Flow and Balance Sheet Operating cash flow reached Rs. 350 CR, versus Rs. 152 CR a year ago. Management attributed the improvement to working-capital discipline and favourable early-settlement balances. 👉Other highlights: => Net working capital stood at 14% of annualised revenue. => Management targets a 13–15% range. => Net cash stood at approximately Rs. 2,345 CR. => Pine Labs acquired Shopflo for Rs. 88 CR, including deferred consideration Pine Labs is evolving from a payment acceptance and issuing platform into a broader commerce infrastructure business. The next phase of the investment story depends on converting transaction growth, new products and merchant relationships into durable earnings and cash flow. 🟥Disclaimer: Invested. This post is for informational and educational purposes only.

Aeroflex Industries Q2FY27 Results - Aeroflex Industries manufactures metallic flexible flow solutions used to safely transfer liquids and gases across industrial applications. Its products are used in oil & gas, chemicals, pharmaceuticals, bulk terminals, fire protection, HVAC, defence and data centres. Aeroflex earns revenue by manufacturing and selling four broad product categories: => Stainless-steel flexible hoses => Hose assemblies and fittings => Liquid-cooling skid assemblies => Metal bellows Its competitive positioning relies on engineering expertise, product quality, customisation and customer relationships rather than simply selling standard commodity products. Q2FY27 Financial Numbers - REV 🔼87% - Rs. 207.36 CR EBITDA🔼94.49% - Rs. 50.34 CR EBITDA margins: 24.27% vs 23.3% in Q2FY26 PAT🔼156.85% - Rs. 36.56 CR PAT margins: 17.60% vs 12.82% in Q2FY26 H1FY27 Numbers - REV 🔼80% - Rs. 352 CR EBITDA🔼102.68% - Rs. 83.83 CR EBITDA margins: 23.77% vs 21.19% in H2FY26 PAT🔼158.65% - Rs. 55.35 CR PAT margins: 15.65% vs 10.93% in H2FY26 👉Aeroflex changed its depreciation method from Written Down Value (WDV) to Straight Line Method (SLM), effective April 1, 2026. The company says the change reduced H1FY27 depreciation expense by Rs. 8.41 CR. Its illustrative comparison shows: => Reported H1 PAT under SLM: Rs. 55.35 CR => Illustrative H1 PAT under WDV: Rs. 47.12 CR The change does not affect EBITDA. Therefore, the improvement in operating profit and EBITDA margin is more informative than the headline PAT growth alone. Product mix: A diversified revenue base Aeroflex's Q2FY27 product mix: => Assemblies and others: 41% => Stainless-steel flexible hoses: 35% => SFN liquid-cooling skid assemblies: 24% Company is adding a new growth vertical alongside established industrial application Domestic vs Exports Domestic revenue grew 178% YOY in Q2FY27 and 52% growth in exports. The export share of revenue declined from 74% to 60%. Management highlighted encouraging demand in the US and Europe, with ports and terminals emerging as important contributors. Liquid-cooling skid sales are scaling rapidly Reported liquid-cooling skid assembly sales: => Q3FY26: Rs. 2.29 CR => Q4FY26: Rs. 18.94 CR => Q1FY27: Rs. 32.39 CR => Q2FY27: Rs. 50.03 CR Volume increased from 1,040 skids to 1,475 skids, while average realisation increased from ₹3.11 lakh to ₹3.39 lakh per skid. Aeroflex describes its liquid-cooling solutions as compact, engineered assemblies designed for coolant distribution within data-centre environments. The product proposition includes: • Plug-and-play installation • Reliable, leak-resistant operation • Efficient heat dissipation • Space-efficient layouts The business can benefit from rising cooling infrastructure requirements as AI and high-performance computing expand. Capacity expansion: Preparing for demand Aeroflex has completed expansion to: => 20 million metres per year of SS flexible hoses => 12,000 liquid-cooling skids per year Skid capacity is targeted to reach 15,000 pieces annually by December 2026. By March 2028, the company plans to reach: => 30 million metres of flexible hoses => 30,000 liquid-cooling skids annually 👉The plan aims to accommodate higher volumes and a richer value-added product mix. Capex Opportunity The next expansion phase involves approximately Rs. 202 CR of capex. Management estimates potential incremental peak revenue of ₹500–550 Cr from the expanded capacity. 👉Need to monitor commissioning, utilisation, margins, customer demand and returns on capital Hyd-Air Engineering merger Aeroflex has announced the proposed merger of Hyd-Air Engineering with itself, subject to necessary approvals. The stated objectives include: • Better utilisation of infrastructure • Reduced operational overlaps • Lower administrative and compliance costs • Improved resource allocation • Greater in-house engineering flexibility 👉The merger could improve efficiency, but should monitor approval timelines, integration costs and measurable financial benefits. The company has also received an Indian patent for a system that automatically generates 3D CAD models of braided hose assemblies. This supports its engineering and product-development capabilities, although the presentation does not quantify the patent's direct financial contribution. Risks to monitor => Working-capital absorption and cash conversion. => Execution and utilisation of the Rs. 202 CR expansion plan. => Sustainability of liquid-cooling demand and customer orders. => The impact of depreciation methodology on reported earnings. => Export demand, customer concentration and the ability to maintain margins as volumes scale. Aeroflex is showing strong operating momentum, improving EBITDA margins and a rapidly scaling liquid-cooling business. The next phase depends on disciplined capex execution, customer demand, cash conversion and sustainable returns on capital. 🟥Disclaimer: This post is for informational and educational purposes only.

Ather Energy: Q2FY27 Key Insights Ather has turned profitable, but the bigger investment story is whether it can sustain profitability while aggressively expanding capacity in an increasingly competitive electric two-wheeler market. Revenue growth, improving operating leverage and aggressive capacity expansion are creating a potential growth opportunity. However, rising input costs and intensifying competition remain key challenges. Ather reported a net profit of Rs. 1.26 CR in Q2FY27 against a loss of Rs. 15 CR in Q2FY26. Revenue grew 63% YoY to Rs. 1,464 CR, while EBITDA reached Rs. 74.2 CR. The turnaround reflects better pricing, improved product mix and operating leverage. Vehicle sales increased 23% YoY to 93,000 units, while revenue grew 63%. Revenue is therefore growing significantly faster than volumes, pointing towards the contribution of pricing and product mix. Customer enquiries reportedly increased 109% YoY, while monthly pre-orders reached approximately 1.8 lakh during the quarter. Ather plans to increase annual installed capacity to approximately 11.4 lakh units by FY28. Key facilities include: • Hosur: 4.95 lakh units annually • Existing Maharashtra facility: 1.5 lakh units annually • Factory 3.0 in Maharashtra: 4.95 lakh units annually The expansion could improve availability, support higher deliveries and create operating leverage. Competition is intensifying Rivals are expanding aggressively: • TVS Motor is targeting monthly EV production capacity above 50,000 units. • Bajaj Auto is working towards 60,000 units per month for Chetak. • Hero MotoCorp is targeting EV capacity of 45,000 units per month by FY27-end. Commodity inflation is the margin risk Memory chips, aluminium, copper, plastics and energy costs are putting pressure on manufacturing economics. Management indicated that commodity cost increases have been more severe than anticipated. Ather has benefited from price increases and a higher share of value-added products. The challenge now is to protect margins without pricing itself out of the market. Key Things to monitor: => EBITDA margin sustainability => New plant commissioning and utilisation => Deliveries versus pre-orders => Market-share recovery => Capital expenditure, debt and cash flow Investment Takeaway: Ather's growth thesis rests on three pillars: => Strong demand translating into actual deliveries. => Capacity expansion executed on time. => Sustainable profitability despite rising input cost Disclaimer: This post is for informational and educational purposes only. @vishan_29 @Dynamicinvstr

IDFC FIRST Bank Q2FY27: Key insights Loans & advances grew 30.1% YoY to Rs. 3.47 lakh CR. Total deposits increased 25.9% YoY to Rs. 3.49 lakh CR. The key positive is that IDFC FIRST Bank is scaling both sides of its balance sheet rather than relying entirely on credit growth. One of the most important developments was the mobilisation of over Rs. 34,000 CR in FCNR(B) deposits. These foreign-currency deposits can provide structural liquidity over a 3–5-year period, according to management. • Greater visibility on funding tenure. • Diversification of the deposit base. • Potential funding-cost advantages. • Support for balance-sheet growth. Management indicated that the fully loaded cost of FCNR(B) deposits, including priority-sector lending benefits, was approximately 1 percentage point lower than comparable domestic fixed deposits. However, the actual benefit depends on currency-hedging costs, deposit pricing, regulatory requirements and renewal economics. Net interest income (NII) increased 21% YoY to Rs. 5,113 CR. However, net interest margin (NIM) moderated to 5.58% from 5.90% in the previous quarter. Core operating profit, excluding trading gains, grew 38.5% YoY to Rs. 2,527 CR. Core profit growth can provide a better picture of business performance than headline net profit alone, which may be influenced by provisions, recoveries, taxation and exceptional items. Asset Quality Remains Comfortable - GNPA at 1.32% & NNPA 0.40% Four key factors will determine the sustainability of earnings growth: • Continued healthy loan growth. • Stable or improving NIM. • Lower operating costs relative to revenue. • Contained credit costs and asset-quality deterioration. The operating momentum is encouraging, but the next leg of the story depends on converting balance-sheet growth into sustainable earnings and stronger return ratios. 🟥Disclaimer: This post is for informational and educational purposes only.

Sterlite Technologies Q2FY27 Concall Updates - Sterlite Technologies is transitioning from a traditional optical fibre and cable manufacturer into a higher-value optical connectivity solutions provider. The Q2FY27 concall highlighted 5 major growth drivers: • AI data centres • Higher connectivity attach rates • Long-term customer contracts • Next-generation optical technologies • Capacity expansion 1/ Revenue Mix Transformation STL is deliberately shifting towards high-value-added integrated connectivity solutions instead of standalone fibre and cable products. Why does this matter? • Data-centre products carry better margins than traditional telecom products. • Connectivity accessories increase value per customer. • Integrated solutions improve customer relationships. • A richer product mix can support structurally higher profitability. 2/ Data centres are becoming a major growth engine Data centres contributed 33% of STL's H1FY27 revenue. Management is targeting a 50% contribution in FY27, with a longer-term ambition to maintain a 50–60% share while preserving customer and geographic diversity. North America accounted for 61% of H1FY27 revenue, reflecting strong exposure to AI and cloud infrastructure. 3/ AI data centres need more fibre AI infrastructure is increasing optical connectivity requirements across three dimensions: => Scale-out: Connecting GPU racks and switches inside data centres. => Scale-across: Linking multiple data centres into unified AI clusters. => Scale-up: Supporting higher transmission speeds as networks transition from 400G to 800G and eventually 1.6T. Management highlighted that fibre requirements per switch rack have risen from around 500 fibres in the cloud era to 12,000 in current 72-GPU AI nodes, with 16,000 possible in future architectures. AI is increasing fibre intensity, not merely the number of data centres. 4/ Opportunity extends beyond data-centre buildings STL can benefit from optical connectivity across: => AI server racks and data halls. => Data-centre interconnect (DCI). => Metro fibre networks. => Long-haul networks connecting multiple facilities. => Telecom infrastructure supporting cloud and AI traffic. Management cited global data-centre capacity rising from approximately 82 GW to 219 GW by 2030. India's live data-centre capacity was cited at approximately 1.8 GW, with a projection of nearly 10.5 GW by 2031. The potential beneficiaries for STL are not limited to fibre installed inside the data-centre building. The opportunity also includes metro networks, data-centre interconnect (DCI) and long-haul optical networks linking facilities. 5/ Order book provides multi-year visibility STL reported a record open order book of Rs. 35,274 CR, with H1FY27 order intake of Rs. 32,000 CR. Two major hyperscaler announcements stand out: • A five-year agreement with potential value of $1.2 billion for AI-ready optical solutions. • A previously announced $1.11 billion product award letter for optical connectivity. STL has also secured multi-year agreements with telecom operators, neutral fibre providers and an Indian telecom customer. The strategic shift: moving away from short-cycle spot orders towards scheduled execution under long-term contracts. Historically, a meaningful portion of STL's revenue came from orders won and delivered within the same quarter. Management now says spot business has become negligible as multi-year contracts scale up. Benefits include: • Better demand visibility. • More predictable production planning. • Improved capacity utilisation. • Greater stability in product realisation However, a large order book creates value only when orders are executed on schedule and converted into cash. 6/ Connectivity attach rate: A critical growth lever STL's connectivity attach rate increased to 24% in H1FY27, from 20% in H1FY26. Management wants to exceed 25% in FY27 and continue increasing the rate thereafter. Instead of selling only optical fibre cable, STL increasingly sells accessories, terminations and integrated connectivity solutions alongside it. This can increase revenue per cable deployment and improve the overall product mix. Importantly, management clarified that connectivity accessory revenue is included in the reported order book. Global peers have substantially more established connectivity businesses. Management acknowledged that catching up requires more than expanding manufacturing capacity. STL needs to invest in product innovation, customer specific co-development, termination and assembly capabilities, and Next-generation connectivity platforms. The company is building a new greenfield facility for pre-terminated solutions to strengthen these capabilities. 7/ Next-generation optical technologies STL is investing in technology beyond conventional optical fibre and cable. Its Neuralis portfolio is designed for AI data-centre connectivity and high-speed interconnects. • G654E fibre: Fully commercialised; management cites approximately 30% lower signal loss. • Hollow-core fibre: In the first commercial-pilot phase; designed to reduce latency. • Multicore fibre: Designed to deliver 4–7 times the data capacity within the same footprint Management estimated that the scale of hollow-core and multicore technologies could begin improving over the next 1.5–2 years. Manufacturing, installation and maintenance challenges still need to be addressed before deployment can scale materially. These should be viewed as future growth opportunities, not yet as established large-scale revenue drivers. 8/ Capacity expansion and raw materials STL is planning a 50% expansion in preform fibre and cable capacities, alongside a new greenfield facility for pre-terminated solutions. The company has committed around ₹1,000 crore of annual capex through FY29 and plans to invest 2% of annual revenue in R&D. Meanwhile, management reported improving availability of critical raw materials such as germanium and helium, alongside greater supplier diversification. Capacity utilisation is also improving quarter on quarter, although management did not disclose the exact utilisation percentage. The challenge is to ramp existing capacity while commissioning new facilities without creating execution bottlenecks. 9/Working capital and receivables need monitoring Management said net working-capital days increased slightly in Q2, while its objective is to maintain a net working-capital cycle of around 45–50 days. Payable days have fallen because the supply-constrained market has changed payment terms for certain materials and expects payable days to normalize. Management is working to improve receivables and inventory levels, with the expected improvement to be reflected from the next quarter. Management attributed the increase in finance costs to prepayment of certain loans ahead of their scheduled maturity, which resulted in prepayment penalties. It said that most of the tariff refund process had been completed, with a small additional amount still subject to the ongoing process. Management expects net finance costs to decline from Q3FY27 onwards. 10/ Key risks to monitor => Hyperscaler capex slowdown => Raw material constraints => Working capital pressure => Capacity execution => Margin sustainability => New Technology adoption Management acknowledged that hyperscaler projects can encounter delays arising from financing costs, land, power, water and local execution issues. 11/ Bigger Picture STL's investment story is evolving across three layers: => Core business: Optical fibre and cable demand supported by telecom and broadband networks. => Higher-value growth: AI data-centre connectivity, pre-terminated solutions and rising attach rates. => Future optionality: Hollow-core fibre, multicore fibre and next-generation optical platforms. Project Lakshya targets ₹20,000 crore in FY29 revenue, with the EBITDA margin ambition upgraded to above 30%. The key question is whether STL can convert that demand into higher-value contracts, sustained margins and strong cash generation Watch the data-centre mix, attach rate, order-book execution, capacity utilisation and working-capital discipline. 🟥Disclaimer: This post is for informational and educational purposes only. Source: @concall_in @vishan_29 @Dynamicinvstr

Fedbank Financial Services Q2FY27 Concall Updates – 1/ Gold loans – Growth Engine Management acknowledged that competition in gold loans intensified in Q2, with lenders using different pricing, yield and lending strategies across geographies. Management said the company was among the few gold-loan players whose yield had fallen by only around 10 basis points across Q1 and Q2, although it did not provide a full peer-comparison table on the call. The company intends to use multiple levers like yields, LTV, customer segment and geographical mix instead of commenting to a flat yield outlook. It explicitly declined to guarantee that yields would remain unchanged in Q3 and Q4. FEDFINA reported an average LTV of 68%. Management said it varies lending practices by geography and competition, sometimes operating at lower LTVs where market conditions allow it 2/ Gold Loan – Asset Quality Management attributed the rise in early-stage delinquencies to the shift from the earlier bullet-repayment structure towards a periodic interest-payment model. Customers accustomed to pay at the end of the loan cycle are now being asked to make regular interest payments. The behavioural adjustment could take another one or two quarters. It warned that Stage II numbers could fluctuate as business volumes and customer behaviour change. Management emphasised that it had not incurred an auction loss on principal or interest in the preceding six years and said it intended to preserve that record. It also said gold loans are collateralised and recoverable through the auction process 3/ Mortgage Business – Early signs of Turnaround Management said the company had spent the previous three to four quarters strengthening underwriting, changing manpower and tightening its business rules engine. Credit costs in small-ticket LAP have normalised sufficiently to allow it to push for growth in Q3 and Q4. A decline in small-ticket LAP origination yields from 16.1% to 14.9% over the previous five to six quarters which the company attributed the Q2 yield mix partly to a higher contribution from lower-yield states, rather than solely to higher ticket sizes. Management indicated that approval rates had recovered from around 30% to the low-to-mid-40% range. The expected disbursements and yields to improve in Q3FY27 and anticipates one of the segment’s strongest quarters in around 8-9 quarters Management also said it had moved away from very small loans and was no longer doing loans below Rs. 8 lakh in this small-ticket LAP segment. Management described medium-ticket LAP as a profitable, partner-driven business with yields of approximately 11.5–12.5%, a stable delinquency profile and a mature operating team 4/ Funding Costs & Balance Sheet The weighted-average borrowing cost remained around 7.8% for three consecutive quarters. Borrowing mix: • Fixed rate: 33% • MCLR-linked: 24% • EBLR-linked: 43% Management believes this mix provides some protection from changes in interest rates. It also noted that around 58% of the loan book consists of short-tenor gold loans, which can be repriced when they mature Management acknowledged that higher funding costs cannot always be fully passed on to customers. It plans to offset pressure through operating efficiency, product mix, credit-cost management and pricing. Q2 direct assignments of around Rs. 700 CR in gold loans also supported balance-sheet efficiency, with debt/equity declining to 4.6x from 4.9x and CRAR improving to 21% from 20.7%. 5/ Management Guidance Management reiterated its existing annual guidance of growing AUM at 20-25% despite the flat gold-price environment. It indicated that performance could be better if gold prices rise. The aim is to reach ROA of 3% & ROE of 18% and then sustain a predictable return profile. It suggested Q1 and Q2 performance could create upside to its earlier ROE guidance, but it did not formally revise the guidance. Credit Cost will be below 1% & GNPA below 2% acknowledging that Stage II and Stage III indicators could fluctuate as gold-loan customers adjust to the new repayment structure. Management expects the second half to be seasonally stronger for gold-loan tonnage and plans to accelerate small-ticket LAP disbursements 6/ Risks => Gold-loan yield compression amid competition. => Persistent Stage II/Stage III deterioration. => Higher operating costs from rapid branch expansion. => Funding-cost pressure on spreads => A slower-than-expected small-ticket LAP recovery => Dependence on direct assignments to manage leverage 7/ Final Takeaway Fedbank Financials’ Q2FY27 performance shows strong growth momentum and improving profitability. The positives are rapid gold-loan expansion, 40.9% YoY core NII growth, 63.1% PAT growth and lower sequential credit costs. But the next phase depends on three things: 1. Sustaining gold-loan growth without sacrificing yields. 2. Proving that rising delinquencies are manageable. 3. Converting small-ticket LAP recovery and branch expansion into profitable growth The key metric to watch is whether Fedbank can reach its 3% ROA and 18% ROE targets while keeping credit costs under control. The next two quarters should be particularly informative: they will show whether the gold-loan delinquency changes remain largely technical, whether small-ticket LAP delivers its expected recovery 🟥Disclaimer: This post is for informational and educational purposes only.

India’s Data Centre Boom Could Be a Structural Optical Fibre Tailwind India’s live data-centre capacity at roughly 1.8 GW, following a record 258 MW addition in H1FY27. This capacity is expected to reach 10.5 GW from 1.8 GW by 2031 i.e., 6x expansion in capacity. A hyperscale data centre doesn't operate in isolation, and it requires enormous amounts of high-speed connectivity between: 🔹 Data centre ↔ Data centre 🔹 Data centre ↔ Cloud regions 🔹 Data centre ↔ Enterprise networks 🔹 Metro ↔ Metro 🔹 Metro ↔ International connectivity Higher DC Capex = Higher Fibre Intensity Across: => DCI Links => Metro Fibre => Long-haul backbone India's expansion isn't being driven by just one company and a substantial pipeline of announced projects from hyperscalers, cloud providers and domestic data-centre operators. => AirTrunk: 5 GW+ / $30 Bn, including a 3 GW Raigad campus => Reliance: 3 GW Jamnagar + 168 MW Meta AI DC => AWS: ~3 GW / $21 Bn Hyderabad => Microsoft: ~2 GW / $17.5 Bn across India => Google: $15 Bn in Vizag & across India => CoreWeave + AdaniConneX: 240 MW + 240 MW option in Navi Mumbai => CtrlS: 60 MW Kolkata => Sify: 50 MW Vizag => TCS: 1 GW+ across India Data centres concentrated around multiple hubs need connectivity within the hub and between hubs. That potentially creates two distinct fibre opportunities: Within cities: Metro fibre + DCI Between cities: Long-haul backbone fibre The deeper proposition is that a multi-year data-centre capex cycle increases the fibre intensity of India's entire digital infrastructure ecosystem. As capacity scales from the 1.8 GW base toward the 10.5 GW shown for 2031, connectivity needs could expand across several layers simultaneously. That creates a potential structural demand tailwind for optical-fibre ecosystem participants such as STL. A multi-year increase in Indian data-centre capacity could create a disproportionately large requirement for high-capacity fibre infrastructure because each new DC requires intra-campus, inter-data-centre, metro and long-haul connectivity

Sterlite Technologies Q2FY27 Results - PPT highlights Sterlite Technologies has delivered its strongest quarter yet, driven by AI data-centre demand, large hyperscaler contracts and a sharp improvement in profitability. 🔶Financial Performance - 🔸REV🔼145% YOY - Rs. 2529 CR 🔸EBITDA: Rs. 685 CR vs Rs. 141 CR in Q2FY26 (excluding one-time gain of US tariff refund of Rs. 161 CR) 🔸EBITDA margin: 27% vs 14% in Q2FY26 🔸PAT: Rs. 517 CR vs Rs. 4 CR in Q2FY26 🔶Segment Analysis STL reports two operating segments: Optical Networking and Digital & Technology Solutions. 🔸Optical Networking: Revenue was up by 151% to Rs. 2,461 CR & EBITDA - Rs. 851 CR. This segment manufactures optical fibre, cables and optical interconnect products. It generated approximately 97% of consolidated revenue before inter-segment eliminations and drove virtually all the earnings improvement. The implied segment EBITDA margin increased from approximately 13.9% to 34.6%. However, the current quarter's segment profitability includes the tariff refund gain, so this is not a clean measure of recurring operating margin. 🔸Digital & Technology Solutions: Revenue grew by 32% on YOY to Rs. 86 CR and EBITDA of Rs. 2 CR. This segment provides digital transformation solutions for telecom operators and enterprises. It remains much smaller and contributes relatively little to current group earnings. 🔶Order book: The strongest forward-looking indicator STL's open order book reached Rs. 35,274 CR at the end of H1FY27 i.e., around 4.6x of FY26 revenue. The order book provides substantial multi-year revenue visibility, although conversion depends on execution schedules, customer acceptance and contract economics. Key H1FY27 wins include: • $1.2 Bn agreement with a hyperscaler: Rs. 11,500 CR • $1.11 Bn hyperscaler product award: Rs. 10,500 CR • $288 Mn hyperscaler deal: Rs. 2,700 CR • $210 Mn telecom infrastructure deal: Rs. 2,000 CR • Indian telecom operator agreement: Rs. 960 CR These agreements span multiple years and reinforce STL's position in AI-ready optical connectivity and telecom infrastructure. 🔶The AI data-centre opportunity AI infrastructure requires high-speed connectivity between GPUs, servers, racks and data-centre campuses. As GPU clusters scale, demand rises for high-density fibre cables, optical interconnects and pre-terminated connectivity solutions. The company highlights three drivers: • Scale-out: More GPU nodes and more fibre connections per rack. • Scale-across: More data-centre interconnect links between campuses and facilities. • Scale-up: Higher-speed optical connections as copper-based connections reach their practical limits. The company cites global optical cable demand of approximately 554 million fibre-kilometres in 2025, rising to 851 million by 2031, implying about 7.5% CAGR. It also highlights stronger growth in North America, where AI infrastructure investment is concentrated. The company is moving towards higher-value, integrated connectivity products through its Neuralis portfolio, which includes: => Pre-terminated fibre trunk assemblies with capacities from 48 to 6,912 fibres. => High-density cables and connectivity products designed for hyperscale installations. => Plenum-rated fibre trunks for AI data centres. => Multi-core fibre and hollow-core fibre development for next-generation networks. STL's optical connectivity attach rate reached a record 24% in H1FY27, up from 20% in H1FY26. Its optical fibre cable market share outside China increased from 7% to 9%. 👉Higher connectivity attach rates and market-share gains may improve product mix and margins. The next milestone is whether these gains persist as volumes rise and competitors expand capacity. 🔶Balance sheet gets stronger ✅STL reported a net debt-free balance sheet and net cash of Rs. 703 CR in Q2FY27 which includes Net cash of Rs. 396 CR related legal matter involving its US entity. ✅Its long-term credit rating was upgraded by CRISIL to AA/Stable from AA− ✅Short-term rating was reaffirmed at A1+ This gives the company greater financial flexibility to invest in capacity and technology. 🔶FY29 ambition and capex STL's Lakshya roadmap targets Rs. 20,000 CR revenue in FY29 and upgraded the EBITDA margin guidance from 27% to 30% by FY29. Key priorities: • Increase integrated connectivity revenue • Scale the data-centre business • Expand preform, fibre and cable capacities by 50% • Invest ~2% of annual revenue in R&D • Build a greenfield facility for pre-terminated solution Planned capex: ~₹1,000 Cr annually in FY27–FY29. 👉Execution, capacity utilisation and returns on incremental capital will determine whether it is achieved. 🔶Key Monitorable to Track • Sustainability of adjusted EBITDA margins • Conversion of the Rs. 35,274 CR order book into revenue • Continued hyperscaler spending and order intake • Growth in optical connectivity attach rates • Operating cash flow and working-capital discipline • Timely capacity expansion and capex returns STL is showing signs of moving from a cyclical recovery towards a potential structural growth story driven by AI data centres, optical connectivity and multi-year contracts. The strongest signals are the order book, underlying margin expansion and improved balance sheet. 🟥Disclaimer: This post is for informational and educational purposes only. @vishan_29 @Dynamicinvstr

Ather Energy: Key Investor Insights Ather’s next growth phase will be decided by manufacturing capacity, supply-chain execution and its ability to convert rising EV demand into market share gains. Ather’s electric two-wheeler market share fell from 18.2% in January to 14.8% in September. Despite rising EV penetration, competitors are expanding capacity and intensifying competition. Ather produced 31,000 scooters in June against monthly capacity of 35,000 units. Management believes it could have sold another 13,000–15,000 scooters per month during the quarter if production had been sufficient. Dealer inventory has declined from 14 days to just 3 days. This supports the argument that supply constraints, rather than weak demand alone, have limited deliveries. Ather is expanding its manufacturing operations through its Aurangabad facility in Maharashtra, targeting total annual installed capacity of 9 lakh units. The facility is scheduled to become operational towards the end of 2026. Competitors are expanding rapidly to meet the growing demand. => TVS Motor: Increasing electric two-wheeler production capacity from around 40,000 units to more than 50,000 units per month. => Bajaj Auto: Has reached 50,000 units of monthly capacity for Chetak and is working towards 60,000 units. => Hero MotoCorp: Increased EV capacity to nearly 30,000 units per month, targeting 45,000 units by the end of FY27. Ather appears to have a capacity-constrained growth opportunity, but the window may not remain open indefinitely. With TVS, Bajaj and Hero expanding aggressively, delayed production expansion could translate into lost customers and market share. 🟥Disclaimer: This post is for informational and educational purposes only. @vishan_29 @Dynamicinvstr

ESDS Software Solution: AI chip rentals could become a major growth engine ESDS is trying to move beyond traditional data-centre and cloud services into renting high-performance GPUs used to train and run AI models. The opportunity is large, but the key question is whether it can scale GPU capacity profitably without taking excessive upfront capital risk The company is targeting to reach $5 Bn revenue in the next 5 years and is betting on renting out high-performance chips - critical to run AI. Management stated that even if the company gains 1% market share in the next 5 years it will reach the target of $5 Bn in revenue. The most important growth driver is the $1.25 billion GPU contract with Sharon AI deal. India Ratings notes that ESDS received a net customer advance of approximately ₹1,176.6 crore after adjusting for the security deposit placed with Sharon AI. This helps fund the project and reduces the risk of a cash-flow mismatch. The GPU infrastructure project is expected to be commissioned in Q3FY27, according to India Ratings. Delays could push back revenue and cash-flow generation The current business mix will indicate how the planned transformation could be - FY26 revenue mix: => Infrastructure-as-a-Service (IaaS) - 44% => Managed cloud services - 41% => Software - 15% Management expects GPU-as-a-Service to account for nearly 75% of revenue in the near term. That would make ESDS increasingly dependent on AI computing infrastructure rather than its traditional mix of managed cloud, software and data-centre services. India Ratings reported FY26 EBITDA margins of 49.6%, versus 42.9% in FY25, helped by a better mix of managed services and operating leverage Major Risk: => Power availability => Capital intensity and funding => Customer concentration => Competition ESDS is an AI infrastructure opportunity, but also an execution-heavy capital expenditure story. The strongest positive is its multi-year GPU contract, backed by customer advances and growing demand for AI computing. The critical question for the next few quarters is not simply whether AI demand rises. It is whether ESDS can convert contracted GPU capacity into recognised revenue, sustainable margins and free cash flow. 🟥Disclaimer: This post is for informational and educational purposes only. @Dynamicinvstr

Optical Fibre Exports Surge 158%: Key Investment Insights India's optical fibre and digital infrastructure supply chain could benefit from the global AI infrastructure boom. The opportunity extends beyond data centres to fibre-optic cables, telecom connectivity and high-speed data transmission. Exports are growing rapidly with 158% jump on YOY basis from April-August period to $483 Mn. US is the primary demand driver as its large share connects Indian suppliers to the expansion of American data centres and digital infrastructure. US accounted for largest exports of optical fibre exports from April to August, importing products worth $266.7 Mn followed by China $52.4 Mn, Poland $22.8 Mn, Vietnam $22.6 Mn. AI infrastructure requires more than GPUs and servers. It also needs high-capacity networking to move enormous volumes of data between servers, storage systems and data centres. Optical fibre is important because it enables high bandwidth, low signal loss over long distances and fast data transmission. AI clusters also need dense interconnections between servers, making networking infrastructure a critical part of data-centre investment. India’s position is strengthening in the global digital‑infra supply chain, alongside semiconductors and servers. Rapid build‑out of AI hyperscale data centres, 5G and fibre‑to‑home rollouts are lifting demand for cable and connectivity components. Beneficiary Companies - => Sterlite Technologies => HFCL => Finolex Cables => Vindhya Telelinks => Birla Cable The next thing to establish is whether the 158% export growth is translating into sustained order growth and stronger earnings at the company level. That is what separates a genuine earnings-compounding opportunity from a temporary industry rally. 🟥Disclaimer: This post is for informational and educational purposes only. @vishan_29 @Dynamicinvstr