Tale of the Tape 

Hola Amigos. Happy Friday, you’ve earned this one!

Nifty (-0.8%) and Sensex (-0.7%) declined for a second day in a row, hurt by a pharma sell-off. FYI - this means markets have closed down for a fifth consecutive week, making it their worst run in nearly two years! Yikes. Broader markets were hit even worse today, with Midcaps (-1.3%) and Smallcaps (-1.7%) seeing deeper cuts. A whopping 402 stocks in the NSE 500 ended in the red.

Among sectors, FMCG (+0.7%) was the only one to buck the market trend. Metals (-2%) and IT (-1.9%) saw the greatest selling pressure.

In today’s issue of the Daily Rip, we cover PNB Housing Finance’s CEO crisis, Suzlon’s big order win, GSK Pharma’s tough Q1, why Swiggy’s losses nearly doubled YoY, trading charts, and more.

Honourable mentions: Adani Power’s board approved a stock split in the ratio of 1:5.

Check out the NSE 500 heatmap:

Earnings
Earnings Roundup

Swiggy (-3%) posted a meh set of Q1 numbers. Losses nearly doubled YoY and missed analyst expectations by a decent margin. This was due to higher ad expenses & discounts in the quick commerce vertical, which more than doubled YoY to Rs 1,036 cr.

But on the topline front, things don’t look too bad. Food delivery GOV grew ~19% YoY, in line with its guidance. Instamart popped off too, with GOV growth coming in at +108% YoY. The segment's average order value jumped +26% YoY to hit Rs 612 (vs Blinkit’s Rs 669). Stiff competition naturally led to higher losses (Rs 896 cr), but the company’s adjusted EBITDA margin did improve QoQ (-15.8% vs -18%). This is because it’s adding fewer dark stores now (41 new stores in Q1 vs 316 in Q4FY25).

Here are its key stats:

• Revenue: Rs 4,961 cr; +54% YoY

• Net loss: Rs 1,197 cr vs Rs 611 cr last year (vs Est: Loss of Rs 932 cr)

Big Picture: Swiggy is on the same trajectory as Zomato. Insane competition over the last six months has delayed the road to profitability. But for both companies it looks like cash burn may have bottomed out in Q4FY25. The only reason the market is reacting worse to Swiggy’s Q1 is because losses were slightly higher than expected. FWIW -  Jefferies upgraded Swiggy today and said it sees a 26% upside from current levels.

GlaxoSmithKline Pharma (-8%) tanked after a weak Q1.The pharma firm’s topline fell for the first time in more than two years due to sluggish demand for its general medicines portfolio. FYI - GSK says it still made market share gains in key brands but admitted its performance was “below anticipated levels” and impacted by “external factors such as seasonal disruptions”.

On the flipside, tight cost controls led to expenses falling -5% YoY, which in turn still boosted profits. But this silver lining didn’t cheer investors up too much.

Here are its key stats:

• Revenue: Rs 805 cr; -2% YoY

• EBITDA: Rs 251 cr; +9% YoY

• EBITDA Margin: 31% vs 28% last year

• PAT: Rs 205 cr; +13% YoY

Big Picture: The pharma sector has had a bit of a mixed Q1. And tbh, GSK’s results here aren’t super awful. The stock is up +32% YTD, so there’s some profit-booking going on. We’ll have to see how the next few quarters pan out.