Corporate and Sectoral updates - Newspaper Summary

 The sources provide a comprehensive snapshot of corporate and sectoral performance in October 2025, heavily influenced by key global pressures (US trade tariffs, geopolitical conflict, and visa restrictions) and domestic policy levers (GST cuts and government stimulus).

Here is a discussion of the major corporate and sectoral updates:

I. Automobile Sector: Demand Surge from Fiscal Stimulus

The automobile sector experienced a significant demand boost in September 2025, driven primarily by the government's Goods and Services Tax (GST) rate rationalization (GST 2.0) and the onset of the festive season.

• Sales Performance: Manufacturers reported their best monthly numbers, showcasing a sharp rise in bookings and inquiries.

  • Tata Motors Ltd, Mahindra and Mahindra Ltd, and Maruti Suzuki India Ltd reported their best monthly figures. Tata Motors saw the highest sales growth of 45% to 59,667 units, beating Hyundai and Mahindra to become the second-largest carmaker. Mahindra saw a 10% surge in sales to 56,233 units.
  • Maruti Suzuki recorded its best retail sales of 173,500 cars, up 27.5% from a year earlier. However, its wholesale dispatches fell by 8% due to logistics constraints.
  • Hyundai’s top-selling SUV, Creta, recorded its highest ever monthly sales of 18,861 units, though its overall wholesale sales in India were muted (1% growth).
  • The GST cut saw the tax rate on large SUVs reduced from 45-50% to a flat 40%.

• Logistics Constraints: Despite soaring demand, both Maruti and Mahindra highlighted limited availability of trailers to ship cars from factories to dealerships as a key problem.

• Outlook: The tax cut has raised expectations that the industry will see growth above the previously predicted 1-2% for the financial year. Analysts noted that demand momentum is expected to continue.

II. Technology, AI, and Semiconductors: Talent and Geopolitical Shifts

The technology and semiconductor sectors are characterized by aggressive talent wars in India and regulatory headwinds in the US.

A. Semiconductor Industry and Talent Acquisition (India & US)

• India’s Talent Demand: Chip giants, including Nvidia Corp., Intel Corp., and Arm Holdings Plc., are aggressively recruiting at India’s elite engineering schools to acquire top talent for the age of artificial intelligence (AI).
  • Demand is focused on students with an aptitude for chip design.
  • Companies like Intel and Nvidia are offering compensation packages well above the campus median, ranging from ₹15 lakh to high-end profiles commanding ₹30-35 lakh.
  • The demand surge provides a crucial buffer for colleges amidst a generally weak job market.
  • The hiring urgency reflects a rapid shift, with the sector expected to nearly double its workforce from 120,000 engineers in 2024 to 275,000 by 2030.
  • Tata Electronics is also approaching institutions for chip talent as it works to establish India’s first major commercial chip fab unit in Gujarat.
• US Visa Restrictions and Talent Loss: Semiconductor industry leaders in the US are warning the Trump administration that proposed tightening of F-1 student visa rules and new fees on H-1B visa applications risk shrinking a vital talent pool.
  • The H-1B policy changes, including a fee of $100,000 for most new applications, pose a risk of millions in added fees for major chip companies.
  • The proposed F-1 visa changes, such as imposing a four-year time limit, are especially troubling as technology graduate students often require longer periods for study and practical training.
  • Skilled workers and foreign students are essential to fill a widening talent gap in the US tech workforce, especially in building advanced chip fabrication plants.

B. Software/IT Services and Telecom

• Capgemini India: Capgemini announced a leadership transition in India, with Ashwin Yardi set to retire as CEO in January 2026, succeeded by Sanjay Chalke. Yardi oversaw the India business grow from 105,500 to almost 180,000 employees during his tenure.
• HCL Technologies: HCL issued a warning of a tepid first quarter (July-September), citing a decision to write down $20 million related to work for a client. Revenue growth for the quarter is now expected to be lower, between 0.9-1.4%, after accounting for adverse currency movements.
• TCS: The IT employees’ body NITES alleged that Tata Consultancy Services (TCS) has forced around 2,500 employees in Pune to resign in recent weeks. TCS countered that this "misinformation" is inaccurate and that only a limited number of employees were affected by a skill realignment initiative.
• Vodafone Idea Ltd (VIL): The Supreme Court is scheduled to hear VIL’s plea on 6 October, seeking to quash additional adjusted gross revenue (AGR) demands of ₹5,606 crore from the Department of Telecommunications (DoT).

III. Consumer Products and Services

A. Paint Industry Competition

The paint industry is facing a challenging festive season (Q3 FY26), characterized by soft demand and intense competition.

• Competition and Margins: The focus has shifted from capacity races to distribution muscle, brand pull, and dealer stickiness.
• New Entrants: Grasim Industries Ltd’s Birla Opus is aggressively expanding its reach to 50,000 dealers and aiming for ₹10,000 crore revenue by 2027-28. The company has shown notable market share gains since its launch.
• M&A Activity: JSW Paints is attempting scale through its proposed acquisition of Akzo Nobel India Ltd. Potential synergies include cross-selling products through merged dealer networks and sourcing benefits.
• Profitability Squeeze: The competition is intensifying, leading to a margin squeeze from potentially higher input costs and escalating advertising battles, rebates, and dealer incentives. Incumbents like Asian Paints and Berger Paints may have to compromise profitability to defend market share.

B. Home Appliances (LG Electronics India IPO)

LG Electronics India Ltd is planning an Initial Public Offering (IPO) to raise ₹11,607 crore through an Offer for Sale (OFS) of 101.8 million shares, scheduled from 7–9 October.

• Strategic Goals: The IPO is coupled with plans to double manufacturing capacity and a $600 million (₹5,001 crore) investment in a third plant in Sri City, Andhra Pradesh, starting operations by 2026.
• India as Global Hub: LG aims to position India as a "global production pool" as part of its parent company's "Global South strategy". The new plant is expected to boost exports, which currently account for about 6% of India’s business.
• Premium Focus: The company is expanding its portfolio of premium products (e.g., side-by-side refrigerators) to meet growing domestic and international demand, thereby achieving economies of scale.

C. E-Waste Recycling

Ecoreco Recycling Limited is promoting a "Nationwide E-waste Disposal Campaign" from October 2nd to October 31st, 2025, to encourage the recycling of items like chargers, remote controls, cables, old phones, and laptops. The campaign emphasizes "Driving Sustainability, Securing Critical Minerals" and treating forgotten gadgets as a hidden national treasure.

IV. Startups and Funding

A. Ola Electric’s Sustainability Concerns (EV Sector)

Ola Electric Mobility Ltd is facing significant operational and financial challenges:

• Sales Decline: The company’s Q2 FY26 electric scooter sales dropped 47% year-on-year to 50,279 units.
• Market Share Loss: Ola Electric ceded market share, falling to fourth place among Indian electric two-wheeler makers, behind TVS Motor Co., Ather Energy, and Bajaj Auto. September sales of 13,371 units were the lowest since its IPO in August 2024.
• Financial Health: The company missed its sales targets for achieving profitability for the seventh consecutive month. Losses jumped to ₹2,276 crore in FY25, up from ₹1,584 crore a year prior, while revenue fell.
• Funding Pressure: Ola’s total debt and interest obligations stand at ₹2,114 crore through 2029–30. Analysts and credit agencies warn that if sales do not improve, the company will be compelled to explore more capital-raising options, posing a "funding risk".

B. Pocket FM’s Global Expansion Funding

Audio streaming platform Pocket FM has appointed Goldman Sachs to raise $100–150 million. The funds will be used to support its global expansion and strengthen its technology. The company, which leverages AI for content curation and personalization, aims to bolster its presence in the US, Europe, and Latin America.

C. Infra.Market IPO

Construction material supply firm Infra.Market, backed by Tiger Global, has filed for an IPO worth between ₹4,500 crore and ₹5,500 crore using the confidential pre-filing route with SEBI.

V. Infrastructure and Communications

A. Satellite Communications Reselling (Nelco)

Tata Group-owned Nelco Ltd received preliminary government approval (a Letter of Intent) to resell satellite internet services to consumers by partnering with third-party satellite companies like Starlink, OneWeb, and Amazon’s Kuiper.

• Market Opportunity: This virtual network operator licence positions Nelco to capitalize on India’s satellite communications market, which is estimated to reach $20 billion by 2028.
• Strategy: This resale model allows Nelco to offer multimodal services (LEO, GEO, MEO) without the high capital expenditure of owning satellite infrastructure.

B. Dispute Resolution in PSUs

Public Sector Undertakings (PSUs), particularly in the infrastructure sector (such as NHAI), are moving away from sole reliance on arbitration and are increasingly adopting mediation clauses in contracts. This shift is aimed at achieving quicker, less expensive, and more amicable resolution of commercial disputes.

VI. Cross-Cutting Regulatory and Policy Developments

These sectoral updates occur against the backdrop of critical policy shifts:

1. Global Trade Headwinds (US Tariffs): The overall economic outlook is clouded by the US’s steep tariffs (50% on Indian merchandise exports). The RBI lowered its GDP growth estimate for the second half of FY26, indicating that the external risk of tariffs will outweigh domestic policy positives like GST cuts. Success in ongoing negotiations for a Bilateral Trade Agreement (BTA) is crucial, with both India and the US aiming to finalize a comprehensive deal to cover key sectors like defense, energy, and services.
2. Domestic Fiscal Stimulus: Government measures, including the ₹1.2 trillion festive season push (DA hike and MSP increase) and the ₹2 trillion consumption stimulus from GST rate rationalization, are expected to fuel consumer demand and growth, largely benefiting sectors like automobiles and consumer durables.
3. Monetary Policy Context: The RBI maintained status quo on rates to preserve "firepower", but relaxed banking norms to bolster credit flow to corporates and capital markets. These changes include allowing banks to finance corporate acquisitions and withdrawing previous caps on large corporate lending, which could inject liquidity into large-ticket Mergers & Acquisitions (M&A).
4. Pharma Sector Geopolitics: While Chinese pharmaceutical companies are largely exempt from Trump’s new 100% levy on patented drugs, the sector faces persistent regulatory risk from the US, which has a track record of closing its market to Chinese challengers, often citing national security. This impacts global biotech supply chains.