Latest news with #FY26
Business Recorder
4 hours ago
- Business
- Business Recorder
Monetary policy poll: 50-100bps cut expected
KARACHI: As per the market expectations, the State Bank of Pakistan (SBP) is likely to cut the key policy rate in its Monetary Policy Committee (MPC) meeting to be held on July 30, 2025. In a poll conducted by Topline Securities, 56 percent of the market participants expect a 50-100bps cut in upcoming monetary policy meeting compared to 44 percent in last poll. While 37 percent are expecting no change compared to 56 percent in last MPS. In last MPC meeting, majority was not sure about the rate cut as federal budget announcement was ahead and Iran Israel conflict was leading the surge in oil prices. In line with these concerns, state bank also maintained status quo and kept the rate unchanged at 11 percent. In Topline view, the SBP has further room of around 100bps cut as FY26 inflation is expected to be average between 5-7 percent, translating into real rate of 400-600bps (Policy Rate: 11 percent), higher than historical real rate of 200-300bps. Analysts believed, the left-over room is quite notional and will be gradual. 'We expect central bank to announce cut of 50bps in upcoming MPC meeting,' they said. FY26 inflation is expected to average 5-7 percent with July inflation expected in the vrange of 3-3.5 percent. The inflation is expected to remain in range of 3-5 percent till Jan 2026 and in range of 6-8 percent from Feb 2026 to Jun suggests real rate of 400-600bps based on average FY26 inflation of 5-7 percent. The secondary market yields have come down by 10-39bps on KIBOR and T-bills. The 6M KIBOR is currently at 10.99 percent while T-bill is at 10.75 percent. On question related to interest rate target for Dec 2025, 51 percent believed that policy rate will come down to 10 percent by Dec 2025, while 32 percent believe it will be 9 percent by Dec 2025. In line with market participants, Topline also expect interest rate falling to and bottom out at 10 percent by Dec 2025. On currency side, 51 percent participants are expecting currency in range of Rs285-290 by Dec 2025 and while 15 percent each believes that exchange rate will remain in range of 290-295, 295-300, and over 300, respectively. Meanwhile, in T-Bill auction held on Wednesday, participation of Rs1,058 billion was seen with government raising Rs409 billion against a target of Rs200 billion and maturity of Rs361 billion. Yields decreased by 10-39bps, with the current yields standing at 10.85 percent for the 1-month T-Bill, 10.71 percent for the 3-month T-Bill, 10.71 percent for the 6-month T-Bill, and 10.70 percent for the 12-month T-Bill. Copyright Business Recorder, 2025
The Star
7 hours ago
- Business
- The Star
Alliance poised to ramp up customer acquisition
Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10%. PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise. Kenanga Research told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts. It has cut its financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins from the recent 25 basis points (bps) overnight policy rate cut and aligned its credit cost assumptions to 35 bps from 31, being the upper range of guidance. Citing a recent meeting with the lender, Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10% which is below the 12% achieved in FY25. The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance. The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies. 'We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market. 'Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises which are 34% of its loan book.'
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Business Standard
2 days ago
- Business
- Business Standard
India's core sector growth in June tepid at 1.7%, shows govt data
The growth in the output of India's eight key infrastructure industries remained subdued in June, even as it accelerated to a three-month-high at 1.7 per cent year-on-year, compared to a revised 1.2 per cent in May, data released by the Department for Promotion of Industry and Internal Trade (DPIIT) on Monday showed. The provisional estimate for May was 0.7 per cent. In June last year, the core sector grew at 5 per cent. With the core sector accounting for 40 per cent of the index of industrial production (IIP) growth, the slowdown may weigh on overall industrial growth as well. During the first quarter of the financial year 2025-26 (FY26), core sector comprising of eight sectors- coal, steel, cement, fertilisers, electricity, natural gas, refinery products, and crude oil- grew at a measly 1.3 per cent, compared to a robust 6.2 per cent during the same quarter a year ago. During June, five out of the eight sectors witnessed contraction – coal (-6.8 per cent), crude oil (-1.2 per cent), natural gas (-2.8 per cent), fertiliser (-1.2 per cent) and electricity (-2.8 per cent). On the other hand, production of refinery products, steel, and cement witnessed robust growth of 3.4 per cent, 9.3 per cent and 9.2 per cent, respectively in June, compared to the same period a year ago. Aditi Nayar, chief economist at Icra, said that while an elevated base weighed upon coal output, excess rains in the latter half of June impacted electricity generation. 'Encouragingly, the output of the cement and steel sectors rose by a robust 9.2-9.3 per cent in June, although this was supported by a favourable base in the case of the former. The growth in volumes of these segments has been quite healthy in Q1FY26, which implies that the construction sector is poised to record a robust GVA growth in the quarter. Given the subdued growth in core output, Icra expects the IIP growth to print at 1.5-2.5 per cent in June 2025,' Nayar said.
Economic Times
3 days ago
- Business
- Economic Times
Difficult to project FY26 disinvestment mop-up at the moment: MoS for finance
ANI Minister of state for finance Pankaj Chaudhary The government on Monday said it is 'difficult' to anticipate the precise amount of its disinvestment proceeds this fiscal, as the process hinges on a number of factors, such as administrative feasibility, market conditions, economic outlook and investor interest. In a written reply in the Lok Sabha, minister of state for finance Pankaj Chaudhary said the FY26 budget estimate of Rs 47,000 crore under miscellaneous capital receipts indicates total mop-up from the government's management of equity investments and public assets through various mechanisms, and not just disinvestment. Chaudhary also said the strategic sale process of IDBI Bank with management control transfer is in progress. For other state-run firms and banks, disinvestment through minority stake sale is carried out via methods approved by capital markets regulator Sebi from time to methods are based on prevailing market conditions 'in order to unlock the value, promote public ownership and meet the minimum public shareholding to ensure higher degree of accountability'.'Profit or loss no criterion in divestment' The minister also said the profitability or loss of a state-run company is 'not among the relevant criteria' for its privatization or strategic said, 'The policy on strategic disinvestment/privatization is based on the economic principle that government should minimize presence in sectors, where competitive private sector has come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological upgrade, efficient management practices, etc.'
Entrepreneur
3 days ago
- Business
- Entrepreneur
Zomato Parent Eternal's Profit Tanks 90% as Expenses Take a Big Bite
Eternal's expenses stood at INR 7,433 crore, up by 77 per cent. The company's revenue from operations for Q1 of FY26 stood at INR 7,167 crore, up by 70.4 per cent from INR 4,206 crore in the corresponding quarter. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Zomato's parent company, Eternal, on Monday, reported a steep 90 per cent fall in its net profit, a YoY INR 25 crore compared to the INR 253 crore reported a year ago for the same period. The company's revenue from operations for Q1 of FY26 stood at INR 7,167 crore, up by 70.4 per cent from INR 4,206 crore in the corresponding quarter. Eternal's expenses stood at INR 7,433 crore, up by 77 per cent. Eternal's quick-commerce company Blinkit's revenue stood at INR 2,400 crore for Q1, recording an uptick of nearly 154 per cent from INR 942 crore announced in Q1FY25. The food delivery arm's revenue saw a rise of 16 per cent to INR 2,261 crore. Eternal's B2B business, Hyperpure's Revenue grew 89 per cent YoY (25 per cent QoQ). Eternal has also said that it will transition its quick commerce business from a marketplace model to inventory ownership over the next 2-3 quarters. "Our teams are well prepared for this transition, and we expect to start working with brands directly without any disruption to the business. Control over inventory gives us more leverage on margins in the business, plus allows us to push harder and faster on assortment 6 expansion. We expect to see about a 1 percentage point margin expansion over time as a result of this transition. As an outcome of this transition, we will also see shrinkage in Hyperpure's non-restaurant business, as most of the B2B buyers in that business were sellers on our quick commerce platform," said Akshant Goyal, CFO, Zomato. Eternal has also announced that its board has approved the incorporation process of Blinkit Foods, its wholly-owned subsidiary, with a proposed share capital of INR 10 lakh. The company said, "Blinkit Foods is proposed to be incorporated as a wholly owned subsidiary and would inter alia engage in the business of providing food services (including innovation, preparation, sourcing, sale and delivery of food to customers)." Earlier this month, the company announced the appointment of Aditya Mangla as the CEO of the Food ordering and delivery business and SMP at Eternal. Deepinder Goyal, Founder, Managing Director & Chief Executive Officer, Eternal, said that the decision comes from its operational model that they call "Rotational Leadership," where the CEO role of each business is time-bound, typically for a two-year term. "Rotational Leadership is not about changing faces; it changes how decisions get made. Leaders move with urgency, knowing their window to create impact is finite. It reduces complacency, accelerates execution, and allows more diverse leadership styles to emerge. Over time, it also builds organisational muscle memory, as teams learn to operate independently of any one person, making us more resilient and adaptable as we grow," said Goyal. Eternal's shares on Monday were listed at INR 271.20, on BSE, up by 5.38 per cent despite the announcement of a steep decline in profits.
