- Vodafone Idea trimmed its quarterly loss by 20% while ARPU rose 7% YoY.
- Vedanta’s OFS of Hindustan Zinc is priced at Rs 685 – a price that could set a new valuation floor for the metal sector.
- Marico and Vishal Mega Mart posted double‑digit profit growth, outpacing many FMCG peers.
- Analysts expect Maruti Suzuki’s profit to jump 24‑35% YoY, signaling a resurgence in auto demand.
- L&T’s order book and operating leverage point to a 20‑35% profit surge in the coming quarter.
- Financials, IT and metals powered the Nifty higher, while auto and FMCG weighed on the Sensex.
You’re overlooking a catalyst that could reshape India’s market momentum.
Why Vodafone Idea’s Loss Narrowing Could Ignite a Turnaround
Vodafone Idea (Vi) reported a consolidated loss of Rs 5,286 crore in Q3FY26, a 20% improvement over the Rs 6,609 crore loss a year ago. The revenue from operations rose 2% to Rs 11,323 crore, and the average revenue per user (ARPU) jumped to Rs 186, up 7.3% YoY, driven largely by customer upgrades. The subscriber base now sits at 192.9 million, edging closer to the 200‑million threshold that many analysts view as a tipping point for scale economies. Historically, Indian telecoms that managed to lift ARPU while stabilising churn have seen a re‑rating of their equity – think of the post‑re‑entry rally of Idea Cellular in 2015. If Vi can sustain the ARPU momentum and continue subscriber growth, the loss‑reduction trend could translate into a higher EBITDA margin, making the stock a potential value play amid a sector that has been punished for high capex and debt.
What the Hindustan Zinc OFS Means for Vedanta’s Portfolio Exposure
Vedanta Limited announced an offer‑for‑sale (OFS) of up to 1.59% of its subsidiary Hindustan Zinc Limited (HZL), amounting to 6.7 crore shares at a floor price of Rs 685 per share. The two‑day OFS opens on Jan 28 for non‑retail investors and on Jan 29 for retail participants. An OFS is a mechanism for existing shareholders to divest a stake without a full‑blown secondary offering. The floor price is typically set close to the prevailing market level, providing a ceiling for downside risk. For Vedanta, the sale can improve its balance sheet by raising cash while retaining majority control of HZL, a key zinc miner that benefits from global metal price rallies. From a sector perspective, zinc prices have been on an upward trajectory due to supply constraints in China and rising demand from the automotive and construction industries. Investors who view metals as a hedge against inflation may find the OFS price attractive, especially if they anticipate a 10‑15% upside in zinc premiums over the next 12 months.
Marico & Vishal Mega Mart: FMCG Momentum in a Stressed Consumer Cycle
Marico posted a Q3FY26 profit of Rs 447 crore, up 12% YoY, with revenue soaring 27% to Rs 3,537 crore. The growth was led by strong demand for its health‑and‑wellness brands, which have outperformed traditional staples. Vishal Mega Mart, a retail chain, posted a net profit of Rs 313 crore, up 19% YoY, with revenue increasing 17% to Rs 3,670 crore. The chain’s aggressive expansion into tier‑2 and tier‑3 cities is paying off as consumer spending shifts from metros to smaller towns. Both companies are beating peers such as Hindustan Unilever and Dabur, whose Q3 growth was more modest (5‑8%). The divergence highlights a broader trend: value‑priced, health‑focused FMCG products are gaining market share as inflation squeezes discretionary spend. Investors should watch margin trajectories – Marico’s operating margin expanded to 15.6%, while Vishal Mega Mart’s EBITDA margin improved to 9.2%.
Maruti Suzuki’s Expected Double‑Digit Profit Surge – Is the Auto Rally Safe?
Brokerages project Maruti Suzuki’s net profit to rise 24‑35% YoY for the Dec‑quarter, targeting Rs 4,540‑5,696 crore. Revenue is expected to grow 32‑37% to Rs 50,765‑52,706 crore. The upside is anchored on robust volume growth, a refreshed product mix (including the newly launched Baleno and Grand Vitara) and operating leverage from higher capacity utilisation. Compared with Tata Motors, which is grappling with a slower EV rollout, Maruti’s internal combustion engine (ICE) sales remain resilient, supported by affordable pricing and an extensive dealer network. However, the auto sector faces headwinds: raw‑material cost inflation, stricter emission norms and the gradual shift toward electric vehicles. A bearish view hinges on a potential slowdown in credit availability and a dip in consumer confidence. Keep an eye on Maruti’s margin guidance – a decline below 8% could signal pressure.
L&T’s Order Book Strength – Construction Giant Poised for Growth
Larsen & Toubro (L&T) is projected to post a net profit increase of 20‑35% (Rs 4,038‑4,548 crore) in the December quarter, alongside double‑digit revenue and EBITDA growth. The catalyst is a robust order book exceeding Rs 2 trillion, driven by infrastructure spend under the national highway and metro projects, as well as a resurgence in oil‑&‑gas EPC contracts. Operating leverage is expected to improve as fixed‑cost absorption rises. Competitor Reliance Infrastructure has seen a 12% profit dip due to project delays, making L&T the preferred beneficiary of government capex. Investors should monitor the order‑to‑cash conversion cycle – a shortening cycle would validate the bullish profit outlook.
Sector Pulse: Financials, IT and Metals Outperform While Auto and FMCG Falter
The Nifty closed at 25,175.40, up 0.51%, led by buying in financials, IT and metal stocks. The Sensex rose 0.39% to 81,857.48, though auto and FMCG lagged. Financials benefited from higher loan growth and stable net interest margins, while IT firms rode strong export demand and renewed client spending. Metals, buoyed by zinc and copper price gains, added to the upside. Conversely, auto stocks faced pressure from inventory build‑up, and FMCG names were weighed down by input‑cost inflation. The divergence suggests a rotation toward sectors with clearer earnings visibility.
Investor Playbook: Bull vs Bear Cases Across the Spotlighted Names
Vodafone Idea
Bull: Continued ARPU lift, subscriber base nearing 200 million, loss narrowing – potential upside to Rs 200 per share.
Bear: High debt, regulatory risks, competitive pricing pressure could stall margin improvement.
Hindustan Zinc (via Vedanta OFS)
Bull: Floor price below intrinsic value, zinc price rally – upside to Rs 800‑850.
Bear: Limited free‑float, OFS could trigger short‑covering sell‑off, metal price volatility.
Marico
Bull: Strong revenue growth, margin expansion, health‑focus brands – target price +15%.
Bear: Input‑cost inflation eroding margins, competition from larger FMCG players.
Vishal Mega Mart
Bull: Aggressive store rollout, tier‑2/3 upside, improving EBITDA margin.
Bear: Retail inventory risk, slower footfall in post‑pandemic environment.
Maruti Suzuki
Bull: Double‑digit profit growth, strong volume, leading market share – upside to Rs 3,800.
Bear: Credit squeeze, raw‑material cost pressure, EV transition risk.
L&T
Bull: Robust order book, operating leverage, infrastructure tailwinds – target price +12%.
Bear: Project delays, margin compression from rising labor costs.
Stay disciplined, weigh the catalysts, and align your portfolio with the sectoral tailwinds that are shaping India’s market narrative.