Newsletter
Tata Comm bets on AI, Paytm swings into profit, and Ajio joins the Q-comm race.
š Morning, folks!
Markets see-sawed through Tuesday before ending slightly in the red. Both the Nifty and Sensex swung back and forth but couldnāt hold onto early gains.
Broader markets took a bigger hit, underperforming the benchmarks. Weak market breadth and muted global cues kept investors on edge all day.
š” Spotlight: Batteries could soon back up coal, not just solar
In a major shift, the government is now planning to use battery storage systems for thermal power plants, not just renewables like solar and wind.
The problem: Solar power floods the grid during the day, forcing coal plants to scale down, only to ramp up again in the evening when solar drops off. But thermal plants arenāt built for that kind of start-stop cycle, it kills efficiency and raises costs.
By deploying battery storage, the grid could smooth out this volatility, letting solar store excess power during peak hours, and easing the burden on thermal plants later in the day.
This move could mark a new phase in Indiaās power strategy, one where batteries balance clean and conventional energy.
1 Big thing: Tata Comm, AWS to build AI network š
Tata Communications teamed up with Amazon Web Services (AWS) to build one of Indiaās largest AI-ready networks, with 7.2 Tbps firepower.
To put that in perspective: 7.2 Tbps is fast enough to stream 2 million HD videos at once, lag-free.
The deets: the ā¹430 crore project will roll out a high-capacity, long-distance fiber network connecting AWS infrastructure across Mumbai, Hyderabad, and Chennai. Stretching 18,000 km, the system is built to support AI, ML, and cloud workloads with low latency and ultra-high bandwidth.
The buildout is expected to wrap by the end of FY26.
Why it matters: this is more than a speed upgrade, itās a digital backbone for Indiaās fast-scaling AI economy. From model training to real-time deployment, AI needs faster, more stable networks. This partnership ensures Indiaās infrastructure can keep up with enterprise, startup, and government AI ambitions.
Big picture: Indiaās AI and cloud boom is just getting started. The public cloud market is set to jump from $2.8B in 2024 to $25.5B by 2028. Even bigger? The combined cloud + AI market is projected to cross $100B by 2033, growing at 45%+ annually.
2. Costco to open tech hub in Hyderabad š
U.S. retailer Costco Wholesale Corp is set to open its first technology centre in Hyderabad.
Costco Wholesale is a membership-based retailer known for offering bulk products at low prices, with a strong focus on groceries, electronics, household goods, and services such as pharmacy and travel.
Whatās cooking: Costcoās new Global Capability Centre (GCC) in Hyderabad will handle technology and research operations. Working alongside global teams, the centre will initially employ 1,000 people, with plans to scale up.
Why it matters: India is already home to 1,600+ GCCs, and the sector added 600,000 jobs between 2019 and 2024. Total GCC employment is expected to hit 2.8ā4 million by 2030.
3. Titan buys Damas Jewellery š
Titan shares gained after its wholly-owned subsidiary Titan Holdings International FZCO, acquired a majority 67% stake in UAE-based Damas Jewellery in an all-cash deal.
Whatās happening: the consideration for the proposed transaction is nearly ā¹2,438 crore.
Founded in 1907, Damas Jewellery has a network presence of 146 stores across six GCC countries.
The why: the deal is significant for Titanās jewellery business as it will facilitate the expansion across the six GCC countries, including UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.
For Titan, this acquisition is more than just a financial transaction. The Gulf Cooperation Council (GCC) luxury jewellery market is projected to reach $3.61 billion by 2025, growing at a CAGR of 16.9% through 2030.
Titanās acquisition of Damas gives it immediate access to 10% of the GCCās $24 billion overall jewellery market. By integrating Damasā extensive retail footprint with its own Tanishq brand and digital platforms like CaratLane, Titan is building a āhub-and-spokeā model.
While, we are on acquisitions,
Drugmaker Cipla will acquire a 20% stake in Bengaluru-based iCaltech Innovations.
iCaltech is engaged in the design, development, and commercialisation of diagnostic medical equipment and apparatus, with a core focus on respiratory care.
The why: Cipla aims to strengthen its presence in the respiratory care space, particularly in the diagnostics market. Also, to develop integrated healthcare solutions and leverage synergies between pharma expertise and advanced medical device technologies.
4. Paytm rebounds with Q1 š„
One97 Communications, the parent of Paytm, reported its first-ever net & EBITDA profit in its Q1 results. The stock ended 3% higher on the back of the results.
By the numbers:
- Net profit: ā¹122.5 cr vs loss of ā¹839 cr same time last year
- Revenue: ā¹1,917.5 cr vs ā¹1,501.6 cr, up 27.7% YoY
The deets: the net profit came in at ā¹123 crore, compared to a net loss of ā¹839 crore a year ago, driven by a strong lending business and tight control over expenses.
In addition to the jump in revenue, total expenses dropped 18% to ā¹2,061 crore from ā¹2,467 crore in the same quarter last year, contributing further to the fintech firmās profitability.
The company added that its Q1 net payment revenue rose, supported by growth in high-quality subscription merchants and improved payment processing margins.
Zoom out: Paytmās turnaround comes at a time when Indian fintechs are under pressure to shift focus from growth to profitability. Regulatory scrutiny, intense competition, and evolving digital payment norms have pushed players to optimise costs and double down on core revenue drivers.
Paytmās return to profitability could signal renewed investor confidence, not just in the company, but in the broader fintech sector.
5. Milky Mist is churning more than butter with its upcoming IPO š§
Milky Mist Dairy Food has filed for a ā¹2,035 crore IPO, combining a ā¹1,785 crore fresh issue and a ā¹250 crore offer for sale by promoters.
What they do: Milky Mist is a Tamil Nadu-based dairy company focused solely on value-added products like cheese, paneer, and yogurt - not liquid milk.
The deets: also, they already pulled in ā¹357 crore in a pre-IPO round before this move.
Zoom out: by skipping the low-margin liquid milk segment, Milky Mist operates more like an FMCG brand than a traditional dairy. It clocked ā¹2,349 crore in revenue in FY25, up from ā¹1,907 crore in FY24, as it ramps up its portfolio across sub-brands like Asal and Capella.
With end-to-end control of sourcing and logistics, itās built one of the most tech-led dairy supply chains in India. This IPO could give it the capital to scale aggressively in a market dominated by legacy players.
6. Stocks that kept us interested š
1. Afcons Infra bags ā¹6,800 crore Croatia rail project
Shapoorji Pallonji groupās Afcons Infrastructure has won a ā¹6,800 crore contract from HŽ Infrastructure for a railway rehab and construction project in Croatia. The order helped stock gain more than 2%.
Afcons Infrastructure is a construction and engineering company specializing in large-scale infrastructure projects like transportation, marine, and industrial works.
This is the company's 3rd big order in a week. Moreover, earlier in May, Afcons had bagged a ā¹175 crore civil works contract from Reliance Industries for its Jamnagar facility in Gujarat.
Whatās next: Afcons expects 20ā25% revenue growth in FY26, bouncing back from a weak FY25. Backed by a strong order book, Afcons is targeting ā¹30,000ā35,000 crore in orders for FY26 and is also bidding for a major project in Dubai.
2. Godavari Biorefineries bags China cancer patent
Godavari Biorefineries hit 5% upper circuit after its biotech arm bagged a key China patent for a novel anticancer compound.
Godavari Biorefineries manufactures ethanol-based chemicals and operates one of Indiaās largest integrated bio-refineries.
Whatās up: the companyās biotech division, Sathgen Therapeutics, secured a patent from Chinaās China National Intellectual Property Administration (CNIPA) for its new class of anticancer compounds. These molecules have shown strong cancer-fighting activity in lab studies, including on breast and prostate cancer cells.
Worth noting: the company had already received a European patent earlier this month for the same molecule.
What else are we snackinā
ā”Quick commerce race: Reliance Retail launched Ajio Rush, a 4-hour delivery platform catering to urban consumers in six cities.
š Health boost: Govt has approved an allocation of ā¹33,081 crore to states & UTs for improving health infrastructure under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission.
Thatās a wrap! Donāt let the weekday blues get to you.
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