Sectoral updates - Newspaper Summary

 The sources provide detailed sectoral updates across several key segments of the Indian business and economy landscape as of October 2025. These updates highlight financial performance, major investment inflows, regulatory challenges, and strategic shifts occurring within sectors ranging from pharmaceuticals and finance to auto, metals, and consumer goods.

Here is a discussion of the major sectoral updates:

I. Financial Services and Banking

The financial sector remains a high-growth area, marked by significant Foreign Direct Investment (FDI) and evolving regulatory dynamics.

• Foreign Investment in Banking: Blackstone, described as the biggest global investor in India managing assets of $50 billion, is making its maiden investment in the Indian banking sector. An affiliate of Blackstone approved a preferential issue of warrants aggregating ₹6,196.51 crore in Federal Bank, which, upon exercise, will grant them a 9.99 per cent minority stake and the right to nominate one non-executive director once the stake hits 5%. This deal follows Emirates NDB Bank's acquisition of a 60% stake in RBL Bank for ₹26,850 crore (the largest foreign direct investment in India’s banking sector) and Abu Dhabi-based Avenir Investment RSC's agreement to acquire a 43.46% stake in Sammaan Capital for $1 billion. Analysts expect more such deals involving smaller and mid-sized banks seeking capital and expertise.
• RBI Regulation: The Reserve Bank of India (RBI) is active in risk management, having released a draft circular proposing limits on banks’ total direct capital market and acquisition exposure. The RBI also decided to enlist the SWAMIH (Special Window for Affordable and Mid-Income Housing) Investment Fund-I under a specified exemption category, encouraging inflows from regulated entities (REs) such as banks.
• NBFC Performance and Policy: Non-Banking Financial Companies (NBFCs) are projected to outperform banks, with an expected 16% Compound Annual Growth Rate (CAGR) in profits through FY30, compared to 11% for banks. To encourage infrastructure financing, the RBI proposed lowering the risk weight on loans for "high-quality infrastructure projects" financed by NBFCs (to 50% or 75%, down from 100%).
• Public Sector Banks: Punjab National Bank (PNB) reported a 5 per cent PAT beat in Q2 FY26 at ₹4,900 crore, supported by a shift to the new tax regime, which reduced the effective tax rate and helped the Return on Assets (RoA) rebound to above 1%. The bank expects credit growth of around 11-12% in FY26.

II. Pharmaceuticals and Healthcare

The pharmaceutical sector shows strong Q2 results for key players but faces regulatory uncertainties related to trade and GST.

• Dr Reddy’s Laboratories (DRL): DRL reported a 14 per cent increase in consolidated net profit to ₹1,437 crore in Q2 (ending September 30, 2025), with revenue growing by 9.8 per cent to ₹8,805 crore. This performance was driven by branded markets and contributions from its Nicotine Replacement Therapy (NRT) portfolio, particularly strong revenue growth in Europe (up 138% y-o-y). The company is focusing on acquisitions and in-licensing deals for future growth.
• Regulatory Context: DRL noted that there has been no impact of the US tariffs on pharmaceuticals so far. However, the company submitted a representation to the government seeking a reduction in the inverted duty structure on Active Pharmaceutical Ingredients (API), aligning it with the recent Goods and Services Tax (GST) reduction.
• Healthcare Investment: Max Healthcare (Max HE) stock saw a decline of 4.36% on the day of reporting. Apollo Hospitals also experienced a decline of 2.89%. Karnataka approved a large investment project from SFX India Mfg Pvt Ltd worth ₹9,298 crore, expected to create 806 jobs.

III. Consumer Goods, Retail, and Hospitality

These sectors reflect mixed performance, with localized growth strategies, strong tourism-driven investment, and transitional impacts from GST reforms.

• Life Insurance: SBI Life’s Q2 profit dipped 6.6% y-o-y, primarily due to the "transitional impact of revised GST rate on life insurance premium," which led to increased GST expenses and margin pressure. However, net premium income grew 18.81% in H1 FY26, and the company is optimistic that the GST reform will ultimately boost the protection segment and long-term growth potential.
• Fast-Moving Consumer Goods (FMCG) and Food:
  • Orkla India (MTR/Eastern Condiments): The company, heading for public listing, employs a strategy to "go deep, not wide" (deepen penetration where it is strongest, primarily South India, which accounted for 70% of FY25 revenue). The company posted ₹2,455 crore in revenue and generates substantial internal cash, enabling a pure offer-for-sale IPO.
  • Hindustan Coca-Cola Beverages (HCCB): HCCB’s consolidated net profit dropped steeply by 73 per cent to ₹756.64 crore in FY25 (down from ₹2,808.31 crore in FY24), with revenue falling 9 per cent to ₹12,751.29 crore. The decline is attributed to an asset-light strategy involving the divestment of company-owned bottling operations through slump sales and refranchising. Coca-Cola expects the sale of a 40% stake in HCCB Holdings to the Jubilant Bhartia Group to "unlock growth in India" due to the market's "huge potential".
  • Hindustan Unilever (HUL): HUL stock declined significantly, falling 16.48 points or 3.33 per cent. This contrasts with the FMCG sector being impacted by "continued softness in FMCG spending" (as noted in the Zee Entertainment Q2 report).
• Hospitality: The sector showed resilience despite seasonal softness due to heavy monsoons in July and August.
  • ITC Hotels: Reported a major 74% jump in Q2 net profit to ₹133.29 crore. The company launched a new premium brand, Epiq Collection—Member ITC Hotels Group, focused on accelerating its premiumization strategy through conversion of high-quality hotels.
  • Brigade Hotel Ventures Ltd. (BHVL): Recorded a 58 per cent jump in Profit After Tax (PAT) in Q2 FY26, rising from ₹7 crore to ₹11 crore. BHVL plans a total investment of around ₹3,600 crore to double its portfolio to 18 hotels (around 3,300 keys) by FY30.

IV. Automobile and Metals

These heavy industries show specific product-driven successes and structural trade challenges.

• Automotive:
  • TVS Motor Co: The company is pursuing global growth through its British marquee brand, Norton Motorcycles, backed by a ₹1,000-crore revival drive. TVS plans to launch six new models by the end of 2026, targeting annual sales of up to 20,000 units globally.
  • New Models and Performance: The sources mention the launch of the TVS Apache RTX 300 adventure tourer and the refreshed Mahindra Bolero Neo.
• Metals and Mining:
  • Structural Deficit: India's Metals & Metallurgy Industry (MMI) faces a "structural asymmetry," exporting low-value bulk materials while importing high-value niche inputs. The MMI trade deficit reached $14.15 billion in 2024. Copper shifted dramatically to an $8.36 billion deficit in 2024.
  • Market Response: Despite these structural issues, the Nifty Metal index emerged as the top sectoral gainer, rising 1.03 per cent in Friday’s session, tracking a rally in global metal prices. Hindalco led the gains, surging 4.11 per cent.
  • Future Outlook: Analysts expect copper prices to stay range-bound in 2025, supported by supply disruptions and resilient global demand. Globally, copper inventories dropped by 8.1 per cent in H1 2025.

V. Technology, IT, and Telecom

The technology space is marked by strong performance from certain IT mid-caps, major infrastructure investment in photonics, and regulatory concerns in telecom.

• IT Services:
  • Coforge Ltd: Reported the fastest growth among nine of the country's 15 largest IT services companies, marking its fifth consecutive quarter of outperformance. Its Q2 revenue was $462 million, up 4.5% sequentially and 26.6% annually, exceeding analyst expectations. Management is optimistic, citing AI as a tailwind that has "mutated" demand but keeps the addressable market growing.
  • Sector Haze: Coforge’s optimism contrasts with the "Big Five" IT outsourcers (TCS, Infosys, HCL, Wipro, Tech Mahindra), who remain uncertain about the macroeconomic environment and do not expect a clear demand revival in H2 FY26.
• Advanced Technology Investment: GX Group, a connectivity gear maker, plans to invest around ₹1,500 crore over the next four years in a new venture, GX Quantum Photonics, focused on developing advanced photonics modules and chip systems for next-generation broadband, 5G/6G, and quantum communication technologies.
• Telecom Regulatory Issues: Telecom operators are urging the Central government to seek reforms regarding power tariffs. They want the government to charge them under the industrial power tariff category and address issues of states not implementing Green Energy Open Access (GEOA) rules.

VI. Agriculture and Commodities

The agricultural sector faces significant challenges related to pricing and weather, necessitating government intervention, while export markets show potential.

• Farm Distress and MSP: The Centre is creating a contingency plan to prevent distress sales of crops, as the prices of most oilseeds and pulses have slipped below the Minimum Support Price (MSP) in many states. Officials are discussing increasing procurements and supporting exports to international markets.
• Crop and Weather Impact: The onset of the North-East monsoon and heavy rains have disrupted natural rubber production in Kerala, causing yield reduction, though prices remain stagnant due to tire companies importing cheaper rubber under the ASEAN treaty. The excess moisture from the retreating monsoon is also dampening prospects for the 2025-26 coffee crop, with estimates suggesting a 10 per cent drop in output compared to last year.
• Rice Export Focus: India has identified 26 countries as potential markets for expanding its rice exports, seeking to unlock ₹1.8 lakh crore of export orders. Memoranda of Understanding (MoUs) worth ₹25,000 crore are expected to be signed during the upcoming International Rice Conference (BRIC) 2025.

VII. Energy and Oil

The sector is grappling with geopolitical sanctions on Russian oil, impacting major domestic refiners.

• Russian Oil Sanctions: US sanctions on two major Russian oil giants, Rosneft and Lukoil, effective November 21, 2025, threaten to upend India's crude import strategy. These two companies account for over 70 per cent of Russia’s crude cargoes to India.
• Impact on Refiners: Indian refiners, who rely on Russian oil for nearly a third of their crude imports (1.7 million barrels per day in 2025), face an "economic trade-off" due to the loss of discounts, even though India’s refining system is flexible enough to switch to alternative sources. Reliance Industries (RIL) is assessing the implications and stated it will comply with guidance from the Indian government and the EU. Analysts are split on the severity of the impact on RIL's refining margins, with estimates ranging up to a $5 a barrel hit, though a boost from diesel cracks might offset some losses.
• Coal Handling: Refex Industries Ltd received a ₹300 crore order from a large mining entity in Jharkhand for Overburden Removal (OB), excavation, and transportation of coal.