Tobacco’s getting a tax makeover

India’s Q2 GDP strengthens, Lenskart tops ₹2,000 crore revenue, and Apple readies fifth store.

🗓 Morning, folks and a Happy Monday!☀️

Welcome to December, the final lap of a year that has thrown just about everything at us

To start with,

The government is working on two new tax bills that will change how cigarettes and pan masala are taxed.

Right now, they fall under the 28% GST slab plus a compensation cess, a cess that’s expiring soon because it was originally created to pay off Covid-era loans.

So here’s what’s coming:

The Central Excise Amendment Bill, 2025 — this replaces the outgoing cess on tobacco with a new tax framework.
The Health Security se National Security Cess Bill, 2025 — this replaces the cess on pan masala and channels the money toward national security and public health.

Onto the big story…

💡 Spotlight: UPI volumes hit new highs 📈

NPCI data shows it has crossed 19 billion transactions worth ₹24.5 lakh crore as of November 28 — a reminder of just how fast India is moving to digital payments.

In the last two years alone, UPI volumes are up nearly 70%, and values have climbed 41%.

The five-year story is even more striking. In November 2021, UPI handled 4.1 billion transactions worth ₹7.6 lakh crore. By November 2022, those numbers had almost doubled.

From 2021 to 2025, UPI’s transaction count has grown more than fourfold, while total transaction value has increased over threefold.

Let’s hit it!

1 Big Thing: India’s Q2 GDP grows 8.2% ⬆️

The Indian economy grew faster than expected, expanding at an annual rate of 8.2% in Q2 of FY 2025-26, adding yet another chapter to the country’s strong growth run.

Key numbers worth noting:

Nominal GDP stood at 8.7%
Agriculture rose 3.5% on an annual basis, lower than last year’s 4.1%
Manufacturing surged 9.1%, a big jump from 2.2% last year

The how: this momentum was led by resilient rural demand and a healthy rise in government spending, even as private capital expenditure remained subdued and lagged behind the broader recovery.

Growth also picked up from the 7.8% seen in the previous quarter, helped partly by lower inflation, which made the real GDP figure look stronger.

A rebound in manufacturing and construction activity, paired with stronger domestic spending, added further fuel.

Bottomline: the IMF expects India’s GDP to grow 6.6% in FY 2026 and then slow slightly to 6.2% in FY 2027, assuming the US-India trade deal takes longer to finalise.

2. Lenskart shines in Q2 💪🏻

Lenskart posted its first Q2 results after its IPO, and the numbers beat expectations.

The financials:

Net profit: up 19.7% YoY at ₹102.2 cr vs ₹85.4 cr
Revenue: up 20.8% YoY at ₹2,096 crore

The company said that in the first half of FY26, its India business grew strongly with revenue rising 24.7% year-on-year.

Its international business also increased 26.1% and delivered an 18.2% EBITDA margin, showing that the company is growing well in both Indian and overseas markets.

The company added that it plans to open more than 450 new stores in India in FY26, compared to 282 stores added in FY25.

What’s the hype: brokerage firm Jefferies highlighted that Lenskart’s fully integrated online and offline model helps the company keep its costs low and deliver products quickly.

It also noted that this model allows Lenskart to offer a better overall customer experience, which is a major strength for the company.

3. Adani Defence eyes one-stop aviation hub ✈️

Adani Defence Systems and Technologies, along with Prime Aero Services has signed an agreement to acquire a 72.8% stake in Flight Simulation Technique Simulator (FSTC) for ₹820 crore.

FSTC is India’s largest flight training and simulation provider. It is the only organisation in the country that independently owns and operates a flying school and an Approved Training Organisation (ATO).

What will the deal do: with the acquisition, Adani Defence aims to create a one-stop aviation hub that handles aircraft repairs, flight simulators, and full pilot training.

Looking ahead: FSTC now joins other aviation companies like Air Works and Indamer Technics where Adani Defence holds a majority stake.

With these strategic acquisitions, the company wants to build an aviation services platform and support customers across all areas of commercial, private and defence aviation.

Zoom out: globally, the pilot training industry is expanding rapidly at 12.7% a year and is expected to hit $24.8 billion by 2032. This partnership positions Adani to tap into that growth and strengthen India’s presence on the global aviation training map.

4. What’s Venture street brewing? 🧐

Fast fashion brand Newme has raised ₹108.6 crore in its Series B round, co-led by existing investors Accel India and Fireside Ventures.

Newme offers Gen Z–centric women’s fashion across online channels and offline stores. The brand operates 16 offline outlets across major cities including Bengaluru, Mumbai and New Delhi.

Worth noting: the D2C firm’s valuation is set to rise by about 41% to ₹988 crore, compared to its earlier valuation of ₹700 crore during the Series A funding round.

Big theme: India’s fast fashion scene is exploding. The segment grew 30-40% in 2023-24, and what is today a $10 billion market is set to hit $50 billion in just seven years.

This booming wave spans value players like Zudio, premium names like Zara, and mid-range brands such as H&M and Snitch.

More on fund raises 💸,

Ripplr has just topped up its war chest with $45 million in a Series C round from its existing investors.

Ripplr uses an app-based system to track inventory, offer real-time data and finally give brands a crystal-clear view of their supply chain.

Worth noting: Ripplr is already preparing for a potential IPO in the next 18-24 months as it pushes toward sustainable profitability.

1. Refex gains on ₹100 crore order win 💵

Refex Industries has bagged an order worth ₹100 crore for pond and bottom ash management from a large conglomerate. The stock gained 8.8% on the back of this news.

Refex Industries works in the sectors of refrigerant gases, coal and ash management, and power trading. It serves industries like clean mobility and wind energy.

The deets: this is a multi-month engagement and Refex Industries will overlook the complete scope of services, including excavation, loading, and transportation of pond ash/bottom ash.

Pond ash and bottom ash are both by-products of coal-fired power plants and are used as raw materials in brick manufacturing, road construction, and other masonry equipment.

2. Dilip Buildcon gets big Tamil Nadu highway boost 🏗️

Dilip Buildcon has received a Letter of Acceptance from the National Highways Authority of India (NHAI) for a ₹879.3 crore road project in Tamil Nadu. The stock ended the last trading session with gains.

Dilip Buildcon builds roads, highways, bridges, tunnels and other major infrastructure projects, and also undertakes mining, irrigation and urban development work across India.

Breaking it down: the new project involves converting a 46.6 km stretch of NH-49 (new NH-87) between Paramakudi and Ramanathapuram into a four-lane highway. It will be built under the Hybrid Annuity Model, which combines government and private funding.

FYI: this is the company’s second major win this month. Recently, it also secured a ₹5,000 crore contract from NALCO to develop and operate a bauxite mine for the next 25 years.

What else are we snackin’ 🍿

📱Expansion spree: Apple is set to open its fifth India store on December 11 at DLF Mall of India in Noida, expanding its retail footprint.

✅ AI bet: Adani Group plans to invest up to $5 billion in Google’s upcoming AI infrastructure hub, signaling rising interest in India’s fast-growing data center sector.

That’s a wrap! Don’t let the Monday blues get to you.

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