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Mint
12 hours ago
- Mint
Wit and Chai bets on ambitious ramp-up to hit ₹200 crore revenue
MUMBAI : In a category crowded with pitch decks and posturing, Pune-based creative agency Wit and Chai is choosing to do things differently. Started six years ago by three friends with no formal advertising background, the company is now scripting an ambitious growth story, with eyes set on a ₹200 crore revenue target. 'We're not advertisers running an agency—we're businessmen running an advertising business," says co-founder Mohit Ghate, who previously built and exited a med-tech startup. What began with a simple Facebook campaign for a café in Pune has grown into a 100-member operation with offices in Pune, Mumbai, and London. The agency services marquee clients such as Coca-Cola, Starbucks, Amul, Kotak, Chitale Bandhu, and Hindustan Pencils. No legacy, no funding, no pitch frills Wit and Chai was founded by Ghate, Nahush Gulawani, and Nihar Kolapkar, three friends with unconventional backgrounds for the advertising world. Mohit, an engineering dropout; Nahush, a chartered accountant, was previously with EY; and Nihar brought creative sensibilities from his early stint in Mumbai's ad industry. The trio credits their lack of legacy baggage for shaping a results-first mindset that puts client outcomes ahead of industry jargon. Wit and Chai has stayed entirely bootstrapped so far. 'We've never raised external capital. Our first client paid for our second," Ghate told Mint in an exclusive interview. A formal fundraise is not on the table yet, though the company is evaluating it as it scales internationally. Also Read: Fixderma's low-key, high-growth strategy defies D2C playbook The business posted a 2.5x year-on-year growth in FY25 and is on track to close this fiscal at ₹40 crore in topline. Internal projections expect another 3x growth, after which Ghate anticipates a steady 2x curve as they chase scale. A third-party valuation, commissioned for internal use, pegs the company's worth at ₹40–45 crore. Built for outcomes, not applause Unlike many independent agencies that bank on creative flair or network shops focused on scale, Wit and Chai positions itself around execution, efficiency, and business results. It competes with new-age firms like Schbang, Spring Marketing Capital, Talented, and Creativeland Asia, and Wondrlab. 'Most agencies chase likes. We chase outcomes," says Ghate. 'We beat Ogilvy for the global Hindustan Pencils mandate not because we were louder, but because we were focused," he claimed. Client retention is unusually high in an industry marked by short tenures. Long-term relationships with brands like Amul, Haldiram, and Kotak have allowed the agency to grow without aggressive pitching. 'Retained clients expand their mandates, which leads to better work and better visibility," he says. This consistent demand has led Wit and Chai to build a house-of-brands structure. It has acquired or taken stakes in three firms over the past 18 months: LMN Communications (for social), Pratisad (for BTL and traditional marketing), Yellout Media (an influencer agency managing talent like Danny and Atharva) and a fourth entity, OPQ Studios, which functions as its in-house production studio. All entities are now being merged under a new private limited structure, with Wit and Chai operating as the strategic comms core and other brands focusing on execution layers. 'It was getting too complicated as an LLP," says Ghate. 'Now everything is being brought under one roof." Talent, tech and the trust factor The agency claims to attract talent disillusioned by the image–driven world of legacy networks. 'People from Schbang, FCB and others have joined us not for bean bags but because they saw value," Ghate says. 'Our office has IKEA furniture, not a podcast studio. But the work is meaningful." Also Read: RCB dethrones CSK as most valuable IPL franchise; league value jumps to $18.5 bn Their business-first DNA also influences how they adopt technology. Ghate says martech has become a buzzword often misunderstood by both clients and agencies. 'Performance marketing is mathematics. But we're also exploring AI-led creativity where a system can understand a brand's voice and generate content accordingly," he says. In-house tools are built for scheduling and qualitative analysis, while complex tech is outsourced through partnerships. 'Tech has to be useful—not just cool." On the creative front, the agency is mindful of chasing virality. 'Too many brands want memes and AI content without understanding why. A hospital doesn't need to trend—it needs trust," Ghate says. For clients like Kotak or security solutions firms, the messaging is tuned accordingly. Scaling abroad, thinking long term The company is also deliberate in its expansion bets. While many Indian agencies head to the Middle East or Southeast Asia, Wit and Chai has picked the UK as its first global outpost. 'The UK has strong Indian business diaspora, better pricing leverage, and is insulated from EU turbulence," says Ghate. London operations are currently being built out to cater to Indian-origin businesses and local UK SMEs. Back home, Wit and Chai is setting up satellite offices in Delhi, Hyderabad and Bangalore, but no full-fledged offices beyond Pune and Mumbai for now. 'Clients don't care where we sit, as long as the work gets done," he says. The agency has also begun exploring new acquisition targets in performance marketing, particularly firms that use AI to optimise campaigns instead of relying purely on headcount. Regional agencies may also be on the radar, especially to meet rising client demand for vernacular storytelling. Future trends According to GroupM's TYNY 2025 report, India's total advertising market is projected to grow to ₹1.64 trillion this year, with digital media accounting for over 60% of the spend. As marketers increasingly prioritise performance, content, and commerce-led strategies, independent agencies operating at the intersection of creative and martech are well-positioned to capture this shift. Ghate believes this will lead to two parallel trends: consolidation by large groups and the rise of 5–10 person specialist shops powered by AI. Also Read: Fast fashion, slower thinking: Myntra's mugshot ad is dressed up with no insight 'There will be a senior talent crunch in the industry within a few years," he says. 'Anyone who's put in the grunt work will suddenly become rare and valuable." When asked what surprises outsiders most about building a creative agency, Ghate says: 'Cash flow. That's true for any business. But also the fact that a place like ours—with no fancy chairs or award shelves—is building serious brands." The short-term goal is to win big at global award shows like Cannes or Kyoorius. But the long-term plan remains rooted in business fundamentals. 'We're not married to advertising. We're here to build impact. That might mean building brands—or acquiring them," Ghate says. 'And if someone makes a good offer to buy us out? I have a few more names for the next agency ready."
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Business Standard
3 days ago
- Business Standard
HCL Tech Q1 preview: What to expect amid tariff jitters, seasonal weakness
Technology giant HCL Technologies is likely to see a sequential dip in its revenue and net profit, weighed by the services and products segments amid a seasonal weakness. The information technology (IT) firm will report its earnings for the quarter ended June on Monday, July 14. HCL Technologies' revenue is expected to fall by 0.02 per cent quarter-on-quarter (Q-o-Q) to ₹30,240.28 crore, according to analysts tracked by Business Standard. Seasonal pass-through of productivity benefits is likely to drag down sequential services revenue growth in Q1, analysts said. However, the company is expected to post a 3.76 per cent decline in net profit for the first quarter sequentially to ₹4,145.13 crore. Even on a year-on-year (Y-o-Y) basis, the net profit is expected to fall at an average of 2.65 per cent. Margins for the IT bellwether will likely decline sequentially, in sync with the decline in the services business and the usual productivity pass resets, analysts said. Here's how analysts of various brokerages expect HCL Technologies to fare in Q1: Kotak Securities: The brokerage expects HCL Technologies to report a sequential decline of 0.8 per cent in constant currency revenue for the June quarter, weighed by seasonal weakness in its IT services business. Revenue from both the Services and Products segments is likely to contract 0.8 per cent on a Q-o-Q basis. Cross-currency tailwinds of around 214 basis points are expected to partly offset the topline weakness. However, operating margins may come under slight pressure. Kotak sees Ebit margins declining 60 basis points sequentially, reflecting the impact of lower services revenue and typical resets in productivity gains. Despite the soft quarter, the brokerage anticipates healthy deal wins in the range of $2 billion to $2.5 billion. Kotak expects the company to maintain its full-year guidance of 2-5 per cent revenue growth and 18-19 per cent Ebit margin. ICICI Securities: HCL Technologies will likely post muted performance in the June quarter, with revenue likely to grow 1.3 per cent in US dollar terms but decline 0.4 per cent on a constant currency basis. The sequential softness is attributed to the anniversary impact of large deals, with weak demand persisting in the auto segment within manufacturing. In contrast, demand remains steady in the banking, financial services and insurance (BFSI), energy, and utilities verticals. The brokerage noted that overall demand conditions remain largely unchanged, with cost optimisation and vendor consolidation driving deal activity. However, discretionary spending continues to stay subdued. ICICI Securities expects Ebit margins to decline by around 100 basis points Q-o-Q to 17 per cent, citing pressure from revenue softness and the appreciation of the Indian Rupee against the US Dollar. Motilal Oswal: Analysts expect HCL Technologies to report a 1.2 per cent sequential decline in revenue for the June quarter, citing seasonal weakness. The Services segment is likely to contract 1.2 per cent in constant currency terms. Among verticals, the brokerage expects relatively better performance from the BFSI and hi-tech segments. However, pressure is likely to persist in manufacturing, particularly in the auto sector, although some signs of stabilisation are emerging. Operating margins are projected to shrink by 50 basis points Q-o-Q, reflecting the typical seasonal reset seen in first quarters over previous years.
Time of India
4 days ago
- Time of India
Auto industry likely to post weak Q1 FY26 results amid global headwinds
India's automobile industry is headed for a modest Q1 FY26 earnings season, weighed down by global volatility, rising commodity costs, and geopolitical disruptions, according to a recent analysis by Kotak Institutional Equities, reports Financial Express. Automakers and component manufacturers are expected to report sluggish revenue growth and margin compression, with the overall outlook marked by weak exports, elevated discounts, and uncertainty over rare earth material supplies from China. Muted growth for OEMs, JLR faces steep decline Kotak estimates auto companies under its coverage will post just 1 per cent YoY revenue growth in Q1 FY26. Excluding Tata Motors, that figure improves slightly to 6 per cent. Production volumes remained largely flat across the PV, 2W, CV, and tractor segments. Higher average selling prices (ASPs) offered some cushion, but steep discounts and weak global demand undermined profitability. Original Equipment Manufacturers (OEMs) are likely to see EBITDA margins shrink by 260 basis points YoY, though the impact narrows to 80 bps without Tata Motors. The sharp decline is attributed to rising marketing spends, input costs—especially tyres—and pricing pressures. Jaguar Land Rover (JLR) is expected to bear the brunt, with EBITDA likely plunging over 50 per cent YoY, hurt by U.S. tariffs, poor demand in Europe and North America, and a strategic halt in U.S. shipments. JLR's wholesale volumes dropped 10.7 per cent YoY, with retail sales slipping 15.1 per cent. Mixed fortunes for domestic players and auto component makers While JLR struggles, Tata's domestic PV business may log 9 per cent YoY EBITDA growth, supported by Production Linked Incentive (PLI) schemes. Mahindra & Mahindra could post a robust 24 per cent YoY growth, driven by solid SUV and tractor sales. In contrast, Maruti Suzuki's margins may shrink due to discounting and higher operational costs. Among two-wheeler makers, TVS Motor stands out with an expected 31 per cent jump in EBITDA, benefiting from a strong product mix and operating leverage. Hero MotoCorp and Bajaj Auto are expected to show marginal declines or flat earnings amid input cost pressures. The auto components sector may post 6.6 per cent revenue growth, but face margin compression of 60 basis points. Tyre companies like Apollo Tyres could report a 9 per cent earnings decline, while MRF and CEAT may log marginal gains. Bearing manufacturers are expected to perform better on the back of industrial demand. Global component players such as Bharat Forge and Sona Comstar face a rough quarter, with expected revenue dips of 5 per cent and 3 per cent, respectively, due to lower exports and EV-related uncertainties. With China's export restrictions on rare earths and rising global protectionism, India's auto sector must navigate uncertain terrain. Kotak warns that gross margins across OEMs will remain under pressure, though currency tailwinds and selective policy support could offer partial relief. While the first quarter signals caution, resilient domestic demand and policy-driven momentum may offer hope for a recovery in the second half.
