Avenue E-commerce loss increases to 306.53 crore rupees in FY2026 due to network expansion

Fractal Analytics reported an almost twofold increase in consolidated profit in the first quarter of the current fiscal year, reaching 74.2 crore rupees. This growth occurred amid a 20% increase in revenue, driven by rising enterprise spending on artificial intelligence, as well as strong growth in the healthcare and BFSI sectors.

Financial Performance and Revenue Growth

According to regulatory filings, Fractal Analytics' consolidated revenue increased by approximately 20% to 912.5 crore rupees in the reporting quarter, compared to 760.5 crore rupees in the quarter ending June 2025. Previously, a year earlier, the company reported a profit of 37.5 crore rupees attributable to the parent company owners.

Management Commentary on the Market

Shrikant Velamakanni, CEO and Executive Vice Chairman of Fractal Analytics Group, noted that enterprises are now allocating significant budgets for AI-driven transformation, which directly reflects in the size of deals being closed. He added that the TMT sector slowed overall growth in this quarter. However, excluding TMT, the business grew by 35% year-on-year, providing a more accurate picture of underlying demand.

Velamakanni explained the slowdown in the TMT segment due to higher capital expenditure by players in the US and Asia-Pacific, but also pointed to signs that these companies are beginning to focus on reducing operational and capital expenditures.

Geography and Revenue Segments

In terms of geographical distribution, America accounted for 67.4% of the company's total revenue in the reporting quarter, while Europe contributed 21.4%. The remainder of the revenue came from the Asia-Pacific region and other territories.

The CPGR (Consumer Packaged Goods and Retail) segment contributed the largest share to Fractal's revenue at 37.8%. This was followed by HLS (Healthcare and Life Sciences) with 23.5%, TMT (Technology, Media, and Telecommunications) with 18%, and BFSI (Banking, Financial Services, and Insurance) with 13%.

Key Sector Dynamics

Shrikant Velamakanni stated that the CPGR segment showed growth of about 19%. He emphasized that the growth rates in the banking and financial sector, as well as healthcare and life sciences, were significantly higher. Specifically, healthcare and life sciences grew by 69%, and BFSI by 35%.

He concluded that all industries are showing growing demand as AI-related spending increases. Velamakanni also noted that the company's financial results reflect not only market conditions but also the effectiveness of team performance. He specifically highlighted positive factors in the healthcare and life sciences sector, as these are complex, resource-intensive industries where AI is a powerful tool for increasing profitability, growth, and improving patient care.

Personnel Changes and Locations

Speaking about personnel, Velamakanni stressed that artificial intelligence requires a highly skilled workforce, and Fractal continues to develop this aspect. The company's employee count was 5,200 last year. This figure reached 6,000 employees this year. Approximately 85–90% of them work in India, and a small portion is located in Ukraine. The remaining employees are distributed across the US, Europe, Australia, the Middle East, and other regions.

BNP Paribas Cardif announced its intention to acquire a 26% stake in IndiaFirst Life Insurance from Warburg Pincus, subject to obtaining necessary regulatory approvals.

Shareholding Structure

Following the completion of the deal, the shareholder structure of IndiaFirst Life will consist of a 65% stake held by Bank of Baroda, a 26% stake held by BNP Paribas Cardif, and a 9% stake held by Union Bank of India.

Goals of Shareholder Cooperation

According to the companies' statement, the shareholders' goal is to accelerate the next stage of IndiaFirst Life's development. This will be achieved through a combination of Bank of Baroda's strong branch network, IndiaFirst Life's multi-channel distribution capabilities, and BNP Paribas Cardif's global expertise in bancassurance, product innovation, and insurance competencies.

Management Comments

Pauline Leclerc-Glorieux, CEO of BNP Paribas Cardif, emphasized that this transaction aligns with the company's strategy for international growth through partnerships with strong institutions in high-potential markets. She added that the company leverages its global experience in bancassurance and partnerships to support IndiaFirst Life's development in India, with a particular focus on increasing the accessibility of insurance products for the Indian population.

The press release also noted that for BNP Paribas Cardif, this deal strengthens its presence in Asia, particularly in India, which is viewed as a strategic market with attractive long-term growth opportunities, thereby reinforcing the company's partnership business model in the dynamic insurance market.

IndiaFirst Life Management View

Debadatta Chand, Chairman and Managing Director and CEO of Bank of Baroda, stated that the deal is a significant step in IndiaFirst Life's long-term strategy and reflects the shareholders' reinforced commitment to the company's continued growth. He noted that BNP Paribas Cardif's joining as a partner expands already successful relationships established through a joint venture in asset management, and they expect to utilize BNP Paribas Cardif's global insurance expertise alongside Bank of Baroda's extensive distribution franchise and deep local market knowledge to expand customer access across India to quality protection and savings solutions.

Market Investment Context

Previously, BNP Paribas Cardif exited its joint venture with State Bank of India (SBI) in SBI Life Insurance. The company's last investment in the Indian market occurred amid reforms in the insurance sector and the government's decision to allow 100% foreign direct investment (FDI) in the industry.

IndiaFirst Life Insurance is a private life insurance company that filed draft documents with the Securities and Exchange Board of India (Sebi) for an Initial Public Offering (IPO) in October 2022 and received regulatory approval in March 2023.

Welspun Corp Ltd, the flagship company of Welspun World, presented its first-quarter results for the fiscal year 27. The company demonstrated robust financial performance, attributed to effective execution across core business segments, a stable inflow of orders, and sustained demand in both domestic and international markets.

First Quarter Financial Results

The company's consolidated EBITDA for the period April-June reached ₹756 crore, representing a 35 percent increase compared to the same period last year. Furthermore, Net Profit After Tax (PAT) increased nearly threefold to ₹1,046 crore. Excluding exceptional items, PAT grew by 42 percentage points year-on-year to ₹499 crore, indicating excellent operational results.

Additionally, the Return on Capital Employed (ROCE) improved to 23.1 percent. Despite capital expenditures of ₹834 crore during the quarter, the company's net cash position strengthened to ₹2,336 crore. Welspun's total global order book stands at ₹24,750 crore.

Investments and International Projects

Welspun partnered with the Government of Odisha to invest ₹13,500 crore in the development of two clean energy projects in the state: a 1,200 MW pumped storage hydroelectric power plant project and a 1,000 MW floating solar power project. Moreover, a textile manufacturing and warehousing complex valued at ₹3,000 crore is planned.

Its associate company, East Pipes Integrated Company (EPIC), based in Saudi Arabia, also showed double-digit growth in revenue, EBITDA, and profit in the first quarter. Expansion projects in the USA and Saudi Arabia remain on schedule for commissioning during fiscal year 27.

Management Comments and Outlook

Vipul Mathur, Managing Director & CEO of Welspun Corp, noted that the company began fiscal year 27 on a strong note, achieving record quarterly EBITDA, significant net profit growth, and a solid balance sheet. He emphasized that the balance sheet remains healthy, the net cash position has improved, and ROCE exceeded 23 percent, while a robust order book provides medium-term and long-term visibility.

Mathur also stated that strategic expansions in the USA and Saudi Arabia are planned for commissioning within fiscal year 27.

Key Market Forecasts

Welspun Corp anticipates maintaining business momentum in key markets. In the United States, the company sees long-term opportunities related to the growth of liquefied natural gas (LNG) exports, the expansion of domestic energy infrastructure stimulated by AI-based data centers, and the resumption of pipeline infrastructure investments.

In Saudi Arabia, investments in oil and gas projects, water infrastructure, hydrogen energy initiatives, and carbon capture are expected to support stable demand for pipeline products. In India, the company forecasts continued growth in linear pipes, supported by government backing for the National Gas Grid, urban gas distribution projects, refinery expansions, irrigation systems, river linking projects, and the Jal Jeevan mission. The plastic pipe business has expanded its reach to 11 states, and approvals and accreditations for OPVC pipes are gaining momentum across all states.

The company also highlighted strong export opportunities for cast iron pipes in Europe, the Middle East, and Africa, as well as expanding cast iron exports amid a relatively weak domestic market. Demand for steel rods and seamless pipes is also expected to remain high due to increased investment in defense, aerospace, nuclear, thermal energy, and petrochemical industries under the Make in India initiative.

Consumer Segment Development and Sustainability

The company's consumer business is also maintaining a strong pace. The Sintex water storage tank brand continues to strengthen its market position through premiumization and expansion into the economic segment. The plastic pipe business has extended its coverage to 11 states, and the process of obtaining permits and accreditations for OPVC pipes is actively progressing, opening a new path for growth.

Mathur added that despite geopolitical uncertainty, the company is confident in its ability to sustain growth through prudent capital allocation, innovation, strong customer relationships, and continuous investment in personnel and sustainability.

Welspun Corp, which operates manufacturing facilities in India, the USA, and Saudi Arabia, serves customers in over 50 countries. The company also reported that its sustainability program is gaining traction: the Bhopal facility received a 'Platinum Category' certification for 'Zero Waste to Landfill' for the fiscal year 2025-26, confirming its commitment to responsible manufacturing and creating long-term value.