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Times of Oman
18-07-2025
- Business
- Times of Oman
Smaller FMCG players in India growing faster than big FMCG companies: Report
New Delhi: Smaller FMCG (Fast Moving Consumer Goods) companies in India are growing faster than their larger competitors, according to a recent report by Emkay Research. This trend is mainly due to their quicker innovation and better product alignment with changing youth preferences. The report stated "A quick comparison of growth trends across company sizes..... indicates that smaller FMCG players are outpacing larger peers". The report mentioned that the ability of smaller companies to adapt faster and offer products that connect well with the younger generation has helped them take the lead. A key reason behind this shift pointed out by the report is the rise of modern trade and e-commerce, including quick commerce, which now makes up around 20 per cent of the FMCG sector. These platforms have given new brands equal access to consumers, making the market more competitive. On the other hand, large FMCG companies are seeing slower growth. One reason is the continuous price hikes they have made, which have affected the value-for-money perception among consumers. Another challenge is their continued dependence on general trade, where traditional, broad-based products dominate. This has limited their ability to adapt to the fast-changing demands of consumers. The report also said that while modern retail channels are growing well, there are still gaps in meeting the needs of new-age customers. In particular, big supply chain players in e-commerce and modern trade are lagging behind quick commerce platforms in offering a wide variety of products, especially those from new and digital-first brands. As more consumers shift to new platforms, the traditional strengths of large FMCG companies are weakening. These new platforms not only provide better consumer insights and engagement, but also push their own private label products. Although the report highlighted that the growth outlook for the FMCG sector is improving, it also warned that established players must speed up their efforts, especially in product innovation, channel strategy, and staying relevant to today's consumers.
Entrepreneur
08-07-2025
- Business
- Entrepreneur
IT Firms to Report Soft Growth in Q1, BFSI Continues to Shine
Investors and analysts will closely watch out for the FY26 revenue/margin guidance; CY25 IT budget and impact on client spending behavior amid macro uncertainties; recovery in discretionary spending; deal intake and pipeline, among others. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Indian IT services firms are likely to post another soft quarter, with continued caution around discretionary spending, delayed decision-making, and tighter project scrutiny weighing on deal ramp-ups and execution, according to a pre-earnings report by Emkay Research. Reported USD revenue may see modest QoQ growth, supported by currency tailwinds from a weakening USD against major global currencies such as the EUR, GBP, and Rupee. Tier-I companies, except Infosys and LTIMindtree, are expected to report muted constant currency sequential revenue growth in Q1. Tier-I players are expected to post constant currency revenue growth of -2 to 2 per cent, while reported USD revenue growth would be aided by 90–220 basis point cross-currency tailwinds. Tier-II companies may see constant currency revenue growth of -2.5 to 7 per cent, with tailwinds of 40–210 basis points on reported USD revenue. Among verticals, BFSI continues to show encouraging signs, while Communication and Manufacturing (particularly Auto) remain weak. Growth trends continue to be mixed across all other verticals like Hi-tech, Retail, and Healthcare, the brokerage firm said. Performance of ER&D companies is likely to be impacted by the slowdown in Auto and the tariff-related uncertainties. Emkay expects Infosys and HCLTech to narrow their FY26 revenue growth guidance to 1-3 per cent and 3.5 per cent respectively on an annual basis in constant currency, while retaining their EBIT margin guidance of 20-22 per cent and 18-19 per cent, respectively. It expects Wipro to give guidance of -1 to +1 per cent growth for Q2FY26. Key Monitorables Investors and analysts will closely watch out for the FY26 revenue/margin guidance; CY25 IT budget and impact on client spending behavior amid macro uncertainties; recovery in discretionary spending; deal intake and pipeline; pace of decision-making, project deferment/cancellation, and any client specific ramp-downs. Other factors to monitor include demand trends in key verticals like BFSI, Retail, Manufacturing, Hi-Tech, Communications; pricing environment; headcount change owing to constrained macro indicators and productivity gains from AI; and adoption and integration of GenAI. According to Emkay Research, deal intake is expected to remain healthy on the back of cost takeouts, legacy modernization, and vendor consolidation. Such deals are being prioritized, as enterprises aim to save costs and reallocate budgets toward RoI-justified outcomes. The deal pipeline remains healthy across companies. "Pace of decision making, revival in discretionary spending, and timely ramp up of signed deals could lead to better correlation between revenue and deal intake, thereby driving uptick in revenue growth," the report said. AI continues to gain strong momentum within the Indian IT services sector, influencing both internal operations and client engagements. "With the rapid evolution of Gen AI, Indian IT companies are intensifying their focus on AI-readiness. This includes strategic investments in talent acquisition, large-scale reskilling and upskilling programs, and the integration of AI into existing service offerings," the report said. A step ahead from the past, the nature of AI engagements is shifting – moving beyond POC (proof-of-concept) work and toward scaled implementations, particularly in areas like customer service, software development automation, and enterprise productivity tools. However, despite the rising interest and an expanding pipeline of Gen AI opportunities, AI's direct contribution to revenue remains limited at this stage. Most AI-related spending continues to come from reallocations within existing IT budgets rather than incremental budget expansion, indicating that AI spend is currently replacing, albiet not yet adding to, the overall tech spend. "Looking ahead, as clients gain more clarity on Gen AI's business impact and use cases mature, we expect AI monetization to improve gradually. Indian IT firms, which can effectively scale up Gen AI offerings, link such offerings to measurable business outcomes, and differentiation through domain expertise will be better positioned to capture the long-term value," the report said.
India Gazette
19-06-2025
- Business
- India Gazette
Brent crude prices to remain at USD 70/bbl in FY26 despite Israel-Iran conflict: Report
New Delhi [India], June 19 (ANI): Despite recent volatility and rising conflicts between Israel and Iran, Brent crude oil prices are expected to average around USD 70 per barrel in FY26, according to a report by Emkay Research. The report stated that the oil markets remain fundamentally well supplied, with rising production levels from both OPEC+ and non-OPEC+ countries. It said 'we continue to assume Brent price at USD70/bbl for FY26. Fundamentally, oil markets are well supplied with rising production.' This steady supply is expected to help stabilise prices in the coming weeks, even though geopolitical risks may cause short-term volatility. The report noted that Israel's attack on Iranian nuclear sites and personnel had initially triggered a sharp 12-13 per cent jump in oil prices, with Brent reaching close to USD 80/bbl. Since then, prices have settled around USD 75/bbl, despite ongoing attacks from both sides. Iran has responded by hitting Israeli cities with missiles, and Israel has intensified its strikes on Iran. Signals from the US administration regarding a ceasefire remain unclear. According to the report, unless there is lasting damage to oil and gas infrastructure, similar to earlier patterns seen during the Russia-Ukraine conflict, oil prices are likely to stabilise. A ceasefire could even bring Brent prices down below USD 70/bbl. The report also highlighted that Iran has partially shut its South Pars gas field following Israeli attacks. A major fuel depot and a gas refinery were hit, but the impact seems limited to domestic markets. Israel has suspended operations in two of its gas fields that export to Egypt and Jordan. As a result, spot LNG prices have increased to around USD 13.5/mmbtu, compared to USD 12/mmbtu before the conflict. The report further noted that oil markets in 2025 have remained well supplied with rising inventories. Although near-term volatility may continue, the average Brent crude price for the year is still expected to be around USD 70/bbl. At this price level, both upstream oil players and oil marketing companies (OMCs) are in a safe zone. However, the report believed OMCs offer a more attractive valuation and better risk-reward profile. The report also flagged concerns over the gas market, as the early onset of monsoons has impacted demand, making the gas outlook uncertain. (ANI)
Mint
19-06-2025
- Business
- Mint
Brent crude prices to remain at USD 70/bbl in FY26 despite Israel-Iran conflict: Report
New Delhi [India], : Despite recent volatility and rising conflicts between Israel and Iran, Brent crude oil prices are expected to average around USD 70 per barrel in FY26, according to a report by Emkay Research. The report stated that the oil markets remain fundamentally well supplied, with rising production levels from both OPEC and non-OPEC countries. It said "we continue to assume Brent price at USD70/bbl for FY26. Fundamentally, oil markets are well supplied with rising production." This steady supply is expected to help stabilise prices in the coming weeks, even though geopolitical risks may cause short-term volatility. The report noted that Israel's attack on Iranian nuclear sites and personnel had initially triggered a sharp 12-13 per cent jump in oil prices, with Brent reaching close to USD 80/bbl. Since then, prices have settled around USD 75/bbl, despite ongoing attacks from both sides. Iran has responded by hitting Israeli cities with missiles, and Israel has intensified its strikes on Iran. Signals from the US administration regarding a ceasefire remain unclear. According to the report, unless there is lasting damage to oil and gas infrastructure, similar to earlier patterns seen during the Russia-Ukraine conflict, oil prices are likely to stabilise. A ceasefire could even bring Brent prices down below USD 70/bbl. The report also highlighted that Iran has partially shut its South Pars gas field following Israeli attacks. A major fuel depot and a gas refinery were hit, but the impact seems limited to domestic markets. Israel has suspended operations in two of its gas fields that export to Egypt and Jordan. As a result, spot LNG prices have increased to around USD 13.5/mmbtu, compared to USD 12/mmbtu before the conflict. The report further noted that oil markets in 2025 have remained well supplied with rising inventories. Although near-term volatility may continue, the average Brent crude price for the year is still expected to be around USD 70/bbl. At this price level, both upstream oil players and oil marketing companies are in a safe zone. However, the report believed OMCs offer a more attractive valuation and better risk-reward profile. The report also flagged concerns over the gas market, as the early onset of monsoons has impacted demand, making the gas outlook uncertain. This article was generated from an automated news agency feed without modifications to text.
Malaysia Sun
10-06-2025
- Automotive
- Malaysia Sun
Indian auto industry may face disruption amid China's stricter Rare Earth export controls: Report
New Delhi [India], June 10 (ANI): The Indian automobile industry is expected to face disruptions following China's decision to tighten export controls on rare earth elements (REEs), which are critical in manufacturing chips used in automobiles, according to a report by Emkay Research. The report mentioned that China, which accounts for over 70 per cent of global REE production and controls more than 90 per cent of refining capacity, imposed stricter export regulations on several REEs from April 2025, citing national security and non-proliferation concerns. The report said 'The licensing for exports has become significantly longer. These delays have led to supply uncertainty across sectors reliant on these critical inputs'. It pointed out that electric passenger vehicles (E-PVs) and internal combustion engine passenger vehicles (ICE-PVs) are the most vulnerable within the Indian auto industry. Electric vehicles (EVs), passenger vehicles (PVs), two-wheelers (2Ws), and commercial vehicles (CVs), in that order, are likely to face the maximum disruption. High-performance EV motors, teh report said, require heavy rare earth elements (HREEs) such as dysprosium and terbium to maintain efficiency at high operating temperatures. For electric two-wheelers (E-2Ws), magnets used in motors cost around Rs 150, while in PVs the cost varies from Rs 2,000 to Rs 24,000 depending on the features. However, the issue is not just about cost but the availability of these critical components and the limited options for alternative sourcing. While ICE 2Ws and 3Ws remain relatively unaffected in the short term, E-2Ws that use permanent magnet synchronous motors (PMSMs) are more vulnerable because of their limited design flexibility. As per report, while E-2Ws may undergo design changes in a short time (2-3 months), PVs and buses may require 6-12 months for complete motor redesigns due to stricter performance and space requirements. According to the Society of Indian Automobile Manufacturers (SIAM), ICE-PV production could face cuts starting July 2025, while existing E-2W inventories may last only another 1 to 1.5 months unless alternative sourcing arrangements are made. Although countries like Brazil and Australia hold substantial REE reserves, with Brazil alone having 20 per cent of global reserves, China continues to exert significant financial and operational control over many of these resources. Chinese companies also hold stakes in Brazilian mines. In addition, while Vietnam and Malaysia host some refining capacity, they largely lack access to primary raw materials and remain dependent on China. The tightening of export controls by China is likely to create ripple effects across the global supply chain, with India's auto sector bracing for a challenging period ahead. (ANI)
