Corporate News and Sector Trends - Newspaper Summary

 The sources provide extensive information on Corporate News and Sector Trends in India in October 2025, heavily influenced by the Global Economic and Technology Landscape, particularly surrounding Artificial Intelligence (AI), geopolitical trade tensions, shifting consumer demands, and cybersecurity risks.

Technology and IT Services Sector

The biggest corporate and sector trend involves the massive shift toward AI-driven digital transformation, positioning Indian IT firms both as primary service providers and participants in a global AI infrastructure race.

• AI-Driven Legacy Modernization: India’s four largest offshore services providers (Tata Consultancy Services Ltd (TCS), Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd) reported a significant uptick in software modernization deals. This trend is driven by Fortune 500 clients preparing their systems and data to handle AI applications, including Generative AI (GenAI). AI-related tools are critically reducing the cost and time required for legacy modernization, thereby boosting the Return on Investment (ROI) for clients.
  • TCS and Infosys are noted as having the highest exposure by volume to these deals, particularly in sectors like banking, insurance, and healthcare.
  • HCL Tech is seeing rising demand for non-essential IT services tied to technology overhaul projects, noting that clients previously skeptical of deploying funds on such projects are now more keen.
• TCS’s Unique AI Infrastructure Bet: TCS stands out as the "lone ranger" among its peers by charting an asset-heavy AI strategy. TCS plans to invest upwards of $6.5 billion over five to seven years to build a 1 gigawatt AI data center. This pivot aims to position TCS across the entire AI technology stack, selling solutions to pure-play AI providers, deep tech firms, hyperscalers, and the Indian government.
  • Analysts are divided on this move; some note concerns about limited technological overlap with TCS’s core services and a potential negative impact on operating margins. Meanwhile, rivals like Infosys are "comfortable" sticking to their software services model.
• Venture Capital and AI Startups: Investment activity reflects the dominance of AI trends. Enterprise AI startup UnifyApps raised $50 million in a Series B round, demonstrating continued venture capital appetite for AI-driven platforms. Furthermore, reports of Anthropic PBC being in discussions with Google for a multibillion-dollar cloud deal involving Tensor Processing Units (TPUs) underscore the massive global investment pouring into AI infrastructure.

Automotive Sector: Trade, Tariffs, and Domestic Demand

The automotive sector in India is experiencing a dual impact from both positive domestic policies (GST cuts) and ongoing global trade friction (US tariffs).

• Cyberattack Impact (JLR): Tata Motors-owned Jaguar Land Rover (JLR) is projected to incur a massive £540 million (₹6,300 crore) hit due to the September cyberattack, approximately one-third of its expected FY25 profit. This disruption, which affected manufacturing facilities globally including Pune, India, halted production for five weeks. Full production is expected to resume by January 2026.
  • The estimated financial impact of the cyberattack is comparable to, or may exceed, the previously anticipated loss from increased US tariffs.
• US Tariffs and Response (Ceat): India's fourth-largest tyre maker, Ceat Ltd, plans to fully pass on the entire price hike resulting from higher US tariffs to its customers in the US market, setting a potential precedent for other Indian auto ancillary exporters.
  • Ceat's revenue exposure to the US is primarily through its recently acquired Canadian brand, Camso, with most exports originating from Sri Lankan facilities. The smooth integration of the Camso acquisition, tied to a jump in net debt to ₹2,944 crore, remains critical for Ceat's future margins.
• Domestic Sales Boom: Domestic carmakers saw double-digit growth following GST rate cuts late in September, coinciding with the Navratri to Diwali festive season. This momentum is expected to be sustained through the rest of the financial year. Carmakers like Tata Motors and Maruti Suzuki expect passenger vehicle sales growth of 7-8% and 7%, respectively, between October and March. Sales surged 33% for Tata Motors Passenger Vehicles between Navratri and Diwali compared to the year prior.

Consumption, Retail, and FMCG

Shifting consumer trends, characterized by premiumization and a focus on essential goods, are shaping the performance of major Fast-Moving Consumer Goods (FMCG) and retail corporations.

• Nestle India's Performance: Nestle India Ltd returned to double-digit growth in Q2FY26, with total operating revenue rising 10.6% year-on-year.
  • Growth was broad-based (prepared dishes, confectionery, beverages), partly driven by anticipation of GST 2.0 (simplifying rates and lowering levies on packaged foods).
  • However, margins were squeezed due to elevated input costs and a lack of price hikes, with Gross margin slipping to 54.3% from 56.6% in the previous year. Future growth relies heavily on volume rather than price increases.
  • The company is focusing on affordability and premiumization, targeting rural markets with smaller packs and urban demand with digital-first and premium offerings (like Nescafe Gold).
• Shoppers Stop's Premiumization Strategy: Multi-brand retailer Shoppers Stop is experiencing a recovery fueled by premiumization, exclusive brand tie-ups, and enhanced in-store experiences. Sales grew 10% year-on-year in Q2, with premiumization contributing 69% of the quarter’s sales. The company is investing ₹160-200 crore for 2025-26 in its value and beauty formats, suggesting an aggressive strategy to compete against rival formats like Zudio (Tata-backed Trent Ltd) and global fast-fashion brands.

Financial and Infrastructure Sectors

Corporate credit demand is showing early signs of revival, particularly linked to major infrastructure and renewable energy goals.

• Corporate Credit Uptick: Banks are increasing lending to companies, with a strong credit pipeline raising hopes for a robust turnaround in the second half of the fiscal year. While current demand is mostly for working capital, companies in infrastructure, renewables, and manufacturing are starting to consider capital expenditure (capex).
  • The rise in benchmark 10-year government bond yields (up 20 basis points to 6.5% in the September quarter) makes traditional bank loans comparatively more attractive for corporates.
  • Public sector banks like PNB and Bank of India (BoI) are reporting robust corporate loan book growth and significant disbursement pipelines, particularly in road projects, infrastructure, and renewable energy.
• Clean Energy Transition: The infrastructure sector, particularly renewables, is poised for expansion. India’s non-fossil fuel based power generation capacity is expected to soon reach 300 GW, with over 40 GW of projects in advanced stages of signing power purchase agreements. This demand fuels corporate lending trends noted above.
• Electric Mobility Challenges: India's largest e-bus tender (for 10,900 e-buses) under the PM E-Drive scheme is facing delays due to concerns from companies and states over lack of adequate charging infrastructure and the high cost/stringent conditions for tender participation. The scheme's deadline has been extended to March 2028.

Media, Entertainment, and Digital Content

The shift in content consumption habits and tightening budgets among major OTT platforms are creating opportunities for platforms like YouTube and specialized content models like micro dramas.

• OTT Platforms vs. YouTube: Major Over-The-Top (OTT) platforms (Netflix, Prime Video, JioHotstar) have slowed commissioning of original content due to plateauing paid subscriptions and margin pressure. This has negatively impacted small and mid-budget content studios and regional filmmakers.
  • In response, YouTube is emerging as a critical alternative, especially for smaller production houses, because it allows creators to retain Intellectual Property (IP) rights and build their own audience without needing green-lighting approvals.
  • YouTube is experiencing a countertrend in India: long-form video consumption on connected TVs is surging, even as short-form videos dominate smartphones.
• Micro Dramas and Advertising: Social media app ShareChat is betting on "micro dramas" (serialized short episodes for mobile-first consumption) to reverse a dip in advertising revenue. This strategy is aimed at capturing highly engaged audiences and aligns with the booming digital ad market, which breached ₹1 trillion during March 2025. The ad revenue dip followed a 2023 tax hike on real-money gaming apps, which were major advertisers.