Gensol Engineering Share Price in Focus on Sale of US Subsidiary

Shares of Gensol Engineering Limited, a key player in the EV and solar energy sectors, were in focus as the stock saw a slight uptick of 0.05% at 10:07 AM. The movement followed management’s clarity on pledged shares and debt reduction, reassuring investors about the company’s financial position.

Promoter Share Sale to Reduce Pledged Holdings

In a strategic move towards financial stability, Managing Director Anmol Singh Jaggi sold 2,15,000 shares—less than 1% of the total promoter holding—to long-term investors. The proceeds from this sale have been entirely allocated towards releasing pledged shares and repaying associated loans.

As of December 31, 2024, 81.7% of promoter shares were pledged, primarily as collateral for loans secured from Power Finance Corporation (PFC) and IREDA for the company’s EV leasing business. Management clarified that Gensol has already deleveraged ₹300 crore, which will lead to a corresponding reduction in pledged shares upon the completion of the Refex transaction.

Additionally, the company is exploring similar transactions in the coming quarters, which will further reduce the promoter pledge and strengthen financial flexibility.

Sale of US Subsidiary 

Gensol Engineering Limited has entered into a strategic transaction worth ₹350 crore, involving the sale of its US subsidiary, Scorpius Trackers Inc., to a prominent renewable energy solutions provider in the United States. 

This deal includes the transfer of global intellectual property rights, excluding India, for Scorpius Trackers’ advanced solar tracking technology. The transaction will be executed in two phases, with completion expected by March 2026, subject to due diligence and regulatory approvals. 

The proceeds will be reinvested into Gensol’s expansion in India’s renewable energy market, bolstering its solar EPC business and advancing its clean energy initiatives. Retaining ownership of Scorpius Trackers’ Indian operations, Gensol aims to enhance its market position and accelerate its leadership in the solar sector.

Financial Performance: Steady Growth Despite Margin Pressure

Gensol Engineering’s Q3 FY25 financial results reflect steady growth:

  • Total Revenue: ₹345 crore, a 30% increase from ₹266 crore in Q3 FY24.
  • EBITDA: ₹63 crore, up 19% from ₹53 crore in Q3 FY24.
  • EBITDA Margin: Declined 180 basis points to 18.3% in Q3 FY25, compared to 20.1% in Q3 FY24.
  • Profit After Tax (PAT): ₹18 crore, growing 6% from ₹17 crore in Q3 FY24.

While revenue and EBITDA posted healthy growth, the decline in EBITDA margin suggests increased costs or competitive pricing pressures in the sector.

Major Solar EPC Project Secured

Strengthening its position in the renewable energy space, Gensol recently won a significant EPC contract from a well-known Public Sector Undertaking (PSU) for the development of a 275 MW Solar PV Project at RE Solar Park, Khavda Rann of Kutch, Gujarat.

  • Total contract value: ₹1,061.97 crore (including GST).
  • Scope of work: Includes a 3-year operation and maintenance (O&M) contract.

This project further solidifies Gensol’s role in advancing India’s solar energy infrastructure.

EV Leasing Business: Strategic Partnership with Refex Green Mobility

Gensol Engineering has partnered with Refex Green Mobility (Refex eVeelz) for the transfer of 2,997 electric four-wheelers (e4Ws). This collaboration is expected to boost sustainable mobility in India.

  • Refex eVeelz will take over Gensol’s ₹315 crore loan, helping streamline operations.
  • The partnership will expand EV adoption across key cities, including Chennai, Bengaluru, Hyderabad, Mumbai, and Pune.

This strategic realignment aims to enhance operational efficiency while contributing to the broader push towards electric mobility in India.

Conclusion 

With clarity on pledged shares, a strong financial performance, a major solar EPC project, and a strategic EV partnership, Gensol Engineering remains focused on financial stability and sustainable growth. The company’s ongoing efforts to reduce pledged shares and deleverage debt highlight its commitment to strengthening its balance sheet and supporting India’s renewable energy and electric mobility transition.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SIP Dilemma: Should You Pause, Restart, or Continue Amid Market Volatility?

Systematic Investment Plans (SIPs) have long been favoured for wealth creation, but some investors argue they become riskier when market valuations are stretched. The concern arises from investing a fixed sum regularly, even when stock prices are high, potentially leading to suboptimal returns.

Does this mean pausing or restarting SIPs at different market cycles is the answer? Or is consistency the key to long-term gains?

Market Timing: A Difficult Balancing Act

Most investors follow goal-based investing with long-term financial objectives. Attempting to time the market for multiple goals can be both time-consuming and mentally exhausting. Moreover, frequent entry and exit decisions can increase the risk of making emotional and miscalculated investment choices.

SIPs eliminate this burden by ensuring disciplined investing. A passive equity fund SIP should align with your life goal’s timeframe, whereas an active fund SIP is best structured for a 12-month cycle. This systematic approach removes the complexity of market timing and ensures that investments happen automatically, avoiding the pitfalls of forgetfulness and hesitation.

However, the rigidity of SIPs raises another question—what happens when the market is on an extended uptrend?

Value Averaging vs SIPs: Addressing Market Swings

Consider a scenario where you invest ₹20,000 every month through an SIP. This investment continues regardless of whether the market is climbing, correcting, or consolidating. Critics argue that consistently investing in a rising market increases exposure to potential downturns, as high valuations may eventually correct.

An alternative approach—value averaging—attempts to mitigate this risk by adjusting investment amounts based on market conditions. When the market declines, you invest more; when it rises, you invest less. While this strategy sounds appealing, it demands continuous monitoring and decision-making, making it impractical for most investors.

SIPs, on the other hand, function as a volatility-averaging tool. They buy fewer units when prices are high and more when prices dip, leading to cost efficiency over time without requiring constant market analysis.

The Market Timing Trap: What Studies Reveal

Historical studies indicate that missing just ten of the best trading days in a year can significantly lower portfolio returns. Conversely, avoiding the ten worst days can enhance returns. However, the challenge lies in accurately identifying these days in advance—something even professional fund managers struggle with.

Stopping and restarting SIPs based on short-term market fluctuations assumes one can predict market peaks and troughs with precision. But in reality, reacting to short-term volatility often leads to mistimed decisions and missed opportunities.

Final Thoughts: Should You Pause or Continue?

Despite inherent risks, continuing SIPs remains the most practical and disciplined investment approach for most investors. While short-term market swings may create anxiety, SIPs help ride out volatility and smoothen returns over the long run.

That said, as you approach the final 5 years of your financial goal, gradually reducing equity exposure can help preserve gains and limit downside risk. Rather than attempting to time the market, aligning your investment strategy with your risk tolerance and time horizon ensures a more stable financial journey.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bharti Airtel Shares Rise 2.6% on Ericsson 5G Deal

Bharti Airtel Ltd’s shares rose 2.6% today,  on Tuesday, hitting an intraday high of ₹1,643 per share on the BSE. By 1:26 PM, it was trading at ₹1,640, up 2.42%, while the BSE Sensex was up 0.27% at 74,657.18. The company’s market capitalisation stood at ₹9.33 lakh crore. The stock’s 52-week high is ₹1,778.95, and its 52-week low is ₹1,098.1.

The company’s shares have risen 2.33% in the past month, 47.74% over the past year, and 8,305.95% since its all-time listing.

Airtel’s Transition to 5G Standalone 

Bharti Airtel has partnered with Ericsson to roll out 5G Core technology, which will allow the telecom operator to transition to a 5G Standalone (SA) network over time. As per the filing, this network is expected to boost connectivity and improve service quality for both consumers and enterprises.

Technology Deployment

As part of this partnership, Ericsson will introduce its Signaling Controller solution and 5G Standalone-enabled Charging and Policy solution to Airtel’s network. These additions are to play a role in improving Airtel’s network capacity and offering new digital services.

Airtel – Ericsson Association

Ericsson has been a technology provider for Airtel for over 25 years, supplying equipment across multiple generations of mobile networks. The company was also awarded Airtel’s first 5G contract in India, strengthening their long-standing collaboration.

Additional Agreements

Apart from its 5G expansion, Airtel has also entered into a deal with Apple to offer Apple TV+ and Apple Music to its users. This service is available for Airtel Xstream Fiber Home Wi-Fi customers with plans starting at ₹999.

Conclusion

Bharti Airtel’s partnership with Ericsson adds to its ongoing network developments. Alongside its stock movement and new service agreements, the company continues its expansion in the telecom sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Power Mech Secures ₹164.63 Crore Order from BHEL

Power Mech Projects Limited has secured a significant order worth ₹164.63 crore (excluding GST) from Bharat Heavy Electricals Limited (BHEL). The contract entails the Main Supply, Design & Engineering, Mandatory Spares, and Civil Works, including Erection & Commissioning (E&C) for the 2 x 800 MW DVC Koderma Thermal Power Station (TPS) Phase-II – EPC project.

The share price of Power Mech Projects was trading with marginal losses at 1:16 PM. 

Scope of Work and Project Details

The contract involves multiple components, including:

  • Design & Engineering for the project
  • Supply of mandatory spares
  • Civil works, erection, and commissioning of the thermal power station

The execution of this order is expected to take 30 months from the date of the Letter of Award (LOA).

A Domestic Partnership for Energy Infrastructure

This order has been awarded by BHEL, a leading public sector enterprise in India, reinforcing Power Mech’s strong presence in the energy and infrastructure sector. The project falls within the domestic market, with no promoter or related party involvement in the awarding of the contract.

Significance of the Koderma TPS Phase-II Project

The Koderma Thermal Power Station is an important power infrastructure project under the Damodar Valley Corporation (DVC). With a capacity of 2 x 800 MW, the expansion under Phase II will further strengthen power generation capacity in the region.

About the Company

Incorporated in 1999, Power Mech Projects Limited (PMPL) is a Hyderabad-based company. The company is primarily engaged in providing engineering and construction services with a focus on the power and infrastructure sectors. PMPL has diversified its operations across a range of sectors such as railways, transmission & distribution (electrical), FGD, mining, steel and process industry refinery, hydro projects, manufacturing, cross country pipe laying civil works, and operations & maintenance of power plants, among others. 

PMPL has executed major projects across India for clients such as BHEL, NTPC Limited, independent power producers (IPPs), and state generation utilities. The company also has a presence in the Middle East, South Asia and Africa via subsidiaries, and joint ventures.

Conclusion 

With India’s continued emphasis on power sector expansion and infrastructure development, Power Mech’s involvement in projects like Koderma TPS Phase-II underscores its role as a key player in the industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Tata Capital to Become Next Tata Company to Launch IPO After 15 Months: Rights Issue of ₹1,504 Crore Approved

Tata Capital, an unlisted entity of the Tata Group, is gearing up for its stock market debut. According to reports, the company’s board has approved an Initial Public Offering (IPO), making it the first Tata Group IPO in over 15 months.

IPO Structure: Fresh Issue and Offer for Sale (OFS)

The IPO will consist of two components:

  1. Fresh Issue of Shares: Tata Capital will issue new shares worth ₹23 crore, each carrying a face value of ₹10.
  2. Offer for Sale (OFS): Certain existing shareholders will sell a portion of their holdings. However, the exact size of the OFS and details regarding the selling shareholders have not yet been disclosed.

According to reports, the OFS will be subject to market conditions, regulatory approvals, and other necessary clearances before moving forward.

Largest Shareholder of Tata Capital 

The largest shareholder of Tata Capital, Tata Sons, which currently holds a 93% stake in the company, is expected to remain a key stakeholder even after the listing

₹1,504 Crore Rights Issue Also Approved

In addition to the IPO, the board has given the green light to a ₹1,504 crore rights issue for existing shareholders. The record date for this offering has been set as February 25, 2025. However, Tata Capital has yet to reveal the rights issue price and entitlement ratio.

First Tata IPO Since Tata Technologies

Tata Capital’s IPO marks a significant moment for the Tata Group, as it will be the first company from the conglomerate to go public since Tata Technologies‘ IPO in November 2023. That listing was historic as it was the first Tata Group IPO in nearly 2 decades, following Tata Consultancy Services (TCS).

Regulatory Requirement: Deadline for Listing by September 2025

Recently, Tata Capital was included in the upper-layer Non-Banking Financial Companies (NBFCs) by the Reserve Bank of India (RBI) for the financial year 2024-25. As per RBI regulations, the company is mandated to list by September 2025 to comply with regulatory guidelines.

Conclusion

Tata Capital’s IPO, coupled with a ₹1,504 crore rights issue, marks a major development for the Tata Group’s financial arm. While finer details regarding the OFS and rights issue pricing are awaited, this move aligns with regulatory mandates and signals a significant expansion in the group’s financial services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Blue Star Expands AC Portfolio with 150 New Models, Strengthening Smart WiFi and Heavy-Duty Segments

A New Era of Cooling Solutions

Blue Star Limited has unveiled a comprehensive lineup of 150 room air conditioner (AC) models, catering to the diverse needs of Indian consumers. This new range includes premium inverter, fixed-speed, and window ACs, ensuring options for every budget and requirement. With the Indian AC industry projected to double by FY30, Blue Star aims to strengthen its foothold, particularly in the Smart WiFi and Heavy-Duty AC segments.

Meeting Growing Market Demand

The demand for room air conditioners in India has surged due to rising temperatures, increasing disposable incomes, and a growing middle-class population. Additionally, significant expansion in Tier 3, 4, and 5 cities is driving sales. Blue Star’s latest product range has been strategically developed to tap into this expanding market, offering energy-efficient solutions across various price points.

Innovative Features in the 2025 Range

The newly launched models come in 3-star and 5-star variants with high cooling performance, even in extreme conditions. The ACs cover capacities ranging from 0.8 TR to 4 TR, with prices starting at ₹28,990.

Smart WiFi ACs with AI Integration

Blue Star has introduced nearly 40 models of Smart WiFi ACs, equipped with advanced features such as:

  • Customised Sleep Mode – Users can preset temperature, fan speed, and operating hours for uninterrupted sleep.
  • Voice Command Technology – Operate the AC through smart assistants like Alexa and Google Home in English or Hindi.
  • Energy Management System – Monitor and control energy consumption to prevent excessive usage.

Next-Gen Cooling Innovations

The new lineup also features:

  • AI Pro+ Technology – An intelligent algorithm that adapts to surroundings for optimal cooling.
  • Defrost Clean Technology – A self-cleaning system that prevents dust accumulation and enhances efficiency.
  • Turbo Cool & Convertible 6-in-1 Cooling – Fast cooling with adjustable capacity based on user preferences.
  • Nano BluProtect & Hydrophilic Blue Fin Coating – Prevents coil corrosion and extends lifespan.
  • Advanced Filtration System – Includes HEPA filters, PM2.5 filters, and Anti-Microbial Activated Carbon to ensure clean air circulation.

Flagship Models for Enhanced Performance

Blue Star’s flagship offerings include:

  1. Super Energy-Efficient ACs – Achieve 64% higher energy efficiency with Dynamic Drive Technology, making 1 TR inverter split ACs reach a 6.25 ISEER rating.
  2. Heavy-Duty ACs – Designed for extreme temperatures, offering 55-feet air throw and full cooling at 43°C.
  3. Hot & Cold ACs – Built to function in low temperatures, with some models operating at -10°C.
  4. Anti-Virus Technology ACs – Provides air purification along with cooling, catering to health-conscious consumers.

Strengthening Manufacturing and Distribution

Blue Star has been expanding its manufacturing capabilities to meet rising demand. The company’s Sri City facility in Andhra Pradesh began operations in 2023, complementing its two Himachal Pradesh plants. The combined production capacity is currently 1.4 million ACs, with plans to scale up to 1.8 million units.

On the distribution front, the company is strengthening its e-commerce and modern trade presence while expanding its retail footprint in North India. Its ‘Gold Standard Service’ network ensures superior after-sales support with over 2,100 service centres and 150+ service vehicles.

Branding & Marketing Strategy

Brand ambassador Virat Kohli continues to reinforce Blue Star’s identity in the consumer AC segment. His promotional campaigns, personifying heat, have resonated with audiences. The company is set to launch new TV and digital commercials in March 2025, alongside an advertising investment of over ₹50 crore for the summer season.

Share Price Performance

The stock price of Blue Star was trading higher by 1.17% as of 12:46 PM on February 25, 2025. 

Conclusion

Blue Star’s latest product range reaffirms its position as an innovator in the air conditioning industry. With a diverse selection of models, cutting-edge technology, and a strong focus on quality and service, the company is well-positioned to meet the evolving needs of Indian consumers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why You Should Not Keep All Fixed Deposits in One Bank?

The recent fraud at the New India Co-operative Bank (NICB) has once again raised concerns about the security of deposits in co-operative banks. Since deposit insurance was introduced in 1962, a staggering 430 co-operative banks have failed, endangering the savings of thousands of depositors.

These crises have resulted in an insurance payout of ₹16,000 crore as of March 2024, compared to just ₹296 crore paid out for claims linked to commercial banks. One of the largest payouts occurred in 2022 when ₹3,854 crores was disbursed to 8.69 lakh depositors of the Punjab & Maharashtra Co-operative Bank.

Why Deposit Diversification is Essential?

While higher interest rates may seem appealing, safeguarding your savings should take precedence. Diversifying fixed deposits across multiple banks mitigates risk and ensures that your funds remain secure in case of a bank failure.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, insures deposits of up to ₹5 lakh per depositor per bank, covering both the principal and interest. Keeping balances below this threshold across multiple banks ensures maximum coverage and financial security.

Choosing the Right Banks for Safety

To protect savings effectively, individuals should distribute their deposits strategically among:

  • Public sector banks: These banks are backed by the government, making them the safest choice for holding the bulk of savings.
  • Large private banks: These provide a secure alternative for diversification while offering competitive services.
  • Small finance banks (SFBs): While they offer higher interest rates, careful selection is necessary to ensure financial stability.
  • Co-operative banks (if necessary): If one must deposit funds in a co-operative bank, the amount should be kept to the bare minimum. While deposits up to ₹5 lakh are insured, withdrawals can be delayed in case of a bank crisis.

Additionally, it is advisable to periodically reassess bank choices based on their financial performance and regulatory standing.

Understanding Deposit Insurance Coverage

DICGC insurance covers deposits across various accounts, including:

  • Fixed deposits (FDs)
  • Savings accounts
  • Recurring deposits (RDs)
  • Current accounts

The insurance becomes effective if a bank is liquidated or placed under RBI’s all-inclusive directions. In such cases, depositors receive compensation within 2 months from the submission of the claim list. To avoid unnecessary delays, account holders should ensure their account details and KYC information remain up to date.

What NICB Customers Should Do Now

For NICB customers affected by the crisis, taking prompt action can help minimise disruptions:

  • Update bank mandates: Ensure payment instructions for automatic debits, such as utility bills, EMIs, and systematic investment plans (SIPs), are transferred to another bank. Each organisation may require separate paperwork.
  • Transfer outstanding loans: Borrowers with existing loans at NICB should transfer their balances to a different lender to avoid repayment issues.
  • Update employer and pension details: Salary and pension recipients should provide their new bank account details to their employers and the Employees’ Provident Fund Organisation (EPFO).
  • Ensure adequate funds in the new account: This prevents failed transactions and disruptions to essential payments.

Conclusion 

The NICB fraud is a stark reminder that bank failures can have serious financial consequences. While deposit insurance provides some protection, the best approach is to diversify savings across multiple banks and ensure balances do not exceed ₹5 lakh per institution. By taking these precautions, depositors can safeguard their funds and maintain financial stability even in times of banking distress.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Check Gold and Silver Prices in Your City on February 25, 2025

In the international market, the spot gold price has dropped by 0.36% to $2,935.23 per ounce as of 12:15 PM on February 25.

In India, gold prices have risen by ₹20 per 10 grams in major cities.

  • Mumbai: 24-carat gold is priced at ₹8,630 per gram, while 22-carat gold costs ₹7,911 per gram. The 24-carat gold price stands at ₹86,300 per 10 grams as of 12:15 PM.
  • Delhi: 22-carat gold is priced at ₹78,971 per 10 grams, while 24-carat gold is trading at ₹86,150 per 10 grams.

Gold Prices Across Major Indian Cities (February 25, 2025)

Here is a detailed breakdown of gold prices as of February 25, 2025:

City 24 Carat Gold (per 10gm in ₹) 22 Carat Gold (per 10gm in ₹)
Chennai 86,550 79,338
Hyderabad 86,440 79,237
Delhi 86,150 78,971
Mumbai 86,300 79,108
Bangalore 86,370 79,173

Silver Prices in India on February 25, 2025

The international silver price remains flat at $32.28 per ounce as of 12:15 PM. In India, silver prices have increased marginally by ₹310 per kg.

Silver Prices Across Major Indian Cities

 

City Silver Rate in ₹/KG 
Mumbai 95,770
Delhi 95,600
Kolkata 95,640
Chennai 96,050

Key Takeaways

Gold Prices: 22-carat and 24-carat gold prices have increased across major Indian cities, while international prices have declined.

Silver Prices: Silver prices remain unchanged in international markets but have risen slightly in the domestic market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

UPL’s Step-Down Subsidiary Increases Investment in Brazil’s Origeo JV

UPL Ltd, a major player in the agrochemicals sector, announced on February 24, 2025, that its step-down subsidiary, UPL Global Ltd, UK, has injected an additional $53.85 million into Origeo Comercio de Produtos Agropecuarios S.A. (Origeo), a joint venture in Brazil. This investment is aimed at meeting Origeo’s working capital needs and ensuring its continued business expansion.

About Origeo and Its Role in the Agribusiness Sector

Origeo, established on July 29, 2021, operates as an integrated agricultural solutions provider in Brazil. It offers a range of services, including agricultural inputs, financing solutions, technical support, and advisory services for farmers. The joint venture is a collaboration between UPL and Bunge, a globally recognised agribusiness company, and plays a crucial role in advancing agricultural practices in the region.

Regulatory Aspects and Transaction Details

As per UPL’s regulatory filing, this transaction falls under related party investments due to its joint venture structure. The acquisition was executed via UPL Global and did not require any additional regulatory approvals. The move aligns with UPL’s broader strategy to strengthen its presence in the agribusiness sector and optimise its operations in key international markets.

Financial Performance and Market Response

The announcement comes at a time when UPL has returned to profitability after reporting a net loss in the same quarter last year. For the latest quarter, the company reported a net profit of ₹828 crore, a significant improvement from a ₹1,217 crore loss in the corresponding period of the previous year. This recovery was supported by lower finance costs and a reduction in the cost of materials consumed.

UPL’s revenue rose by 10% to ₹10,907 crore, driven by a 9% growth in volume and a 5% price increase. However, foreign exchange-related issues, particularly in Brazil, partially offset these gains. The company’s EBITDA surged to ₹2,162 crore from ₹416 crore in the previous year, with margins expanding from 4.2% to 19.8%.

Following the announcement, UPL’s share price saw a modest rise of 0.74% as of 11:05 AM on February 25, 2025.

Conclusion

UPL’s additional investment in Origeo highlights its commitment to strengthening its agribusiness footprint in Brazil. The move is expected to support Origeo’s operational growth while aligning with UPL’s long-term expansion strategy in key agricultural markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Government’s Gold Bond Liabilities: ₹1.12 Lakh Crore at Risk as 61 Tranches Await Redemption

Budget 2025 has underscored the government’s evolving stance on Sovereign Gold Bonds (SGBs). Unlike previous years, the government has chosen not to raise any debt via SGBs, revising its earlier ₹15,000 crore borrowing estimate for FY25 to zero. Consequently, there have been no fresh issuances of SGBs in FY25, making the February 2024 tranche the most recent.

The shift in strategy signals the government’s intent to focus on redeeming existing gold bonds rather than adding new liabilities. This change is evident in the budget allocation, which projects SGB redemptions amounting to ₹8,040 crore in FY25— the highest redemption figure recorded so far. However, for FY26, the government has lowered this estimate to ₹5,510 crore.

Government’s SGB Liabilities: A Shrinking but Significant Burden

The accumulated liabilities from past SGB issuances have been a growing concern. In the July 2024 Budget, the government estimated its gold bond obligations would reach ₹85,000 crore by the end of FY25, nearly nine times the FY20 figure. However, in the revised estimates presented in February 2025, this projection was significantly reduced.

With no new issuances and a focus solely on repayments, the government now expects its SGB liabilities to drop to ₹60,565 crore by the end of FY25 and further decline to ₹55,000 crore in FY26. Despite this reduction, the burden remains substantial, as the liabilities are still over 5 times the FY20 level.

Long Road Ahead: 61 Tranches Yet to be Redeemed

Although the government has successfully redeemed six tranches of SGBs, 61 tranches remain outstanding, with the final redemption scheduled for February 2032.

The Reserve Bank of India’s (RBI) annual report for FY24 highlights that since the launch of the SGB scheme in November 2015, a total of ₹72,274 crore (146.96 tonnes of gold) has been raised through 67 tranches. As of 14 February 2025, Indian investors still hold gold bonds equivalent to 132 tonnes, estimated to be worth ₹1.12 lakh crore at current market prices.

Rising Gold Prices Could Increase Redemption Costs

The ₹55,000 crore liability estimate for FY26 appears conservative, as it does not fully account for fluctuations in gold prices at the time of redemption. Between 2015 and July 2024, average gold prices have surged by 171%, and the trend has continued upward. Given this trajectory, the actual redemption cost for the government could be significantly higher than current projections.

Conclusion

With a long redemption timeline stretching to 2032 and continued gold price appreciation, the government’s strategy for managing SGB liabilities will be crucial in the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.