Tale of the Tape 

Hi ya’ll. Markets had a pretty boring day.

Nifty (-0.1%) and Sensex (-0.2%) ended with minor cuts after failing to hold onto early morning gains. Midcaps and Smallcaps closed flat. The advance-decline ratio was in favour of the bears (3:2).

It was a mixed-bag kinda day for sectors. Metals (+1.2%) and PSU Banks (+1.2%) were the top gainers. Real Estate (-1.1%) and FMCG (-0.6%) witnessed selling pressure.

In today’s issue of the Daily Rip, we cover Cartrade Tech and Bata’s Q2 results, the Orkla India IPO, Indian refiners’ Russia problem, Zerodha’s new US foray and more.

Honourable Mentions:

MCX (-2%) was down after a technical glitch took its trading services offline for a whopping four hours today. TTK Prestige jumped +9% after its Q2 profits jumped +22% YoY.

Check out the NSE 500 heatmap:

Earnings
Earnings Roundup

Bata India (-4%) fell after a weak Q2 show. Disruptions due to the GST cuts + temporary warehouse closure led to a dip in its topline. ICYMI - many companies have been hurt because distributors refused to order new stock before the reduced taxes kicked in. Margins fell on higher festive-related marketing expenses. All this + a one-off hit led to Bata’s third straight quarterly profit drop.

Here are its key stats:

• Revenue: Rs 801 cr; -4% YoY

• EBITDA: Rs 145 cr; -17% YoY

• EBITDA Margin: 18.1% vs 20.8% last year

• PAT: Rs 14 cr; -73% YoY

Zooming out: GST chaos was expected. But unlike many other consumer stocks, festive demand didn’t help cushion the blow which is why investors were jittery today. FWIW - analysts say things should turn around from Q3 but remember the footwear sector is in a bit of a funk now.

Bata India is -20% YTD.

Cartrade Tech (+17%) hit an all-time high after blockbuster Q2 results! Insane demand across all key verticals helped the firm post its highest-ever quarterly revenue. Its core ‘consumer group’ division -- aka Bikewale and Carwale -- grew +37% YoY. The ‘remarketing’ and OLX verticals were no slouch either; both posting solid double-digit growth. Careful cost control measures + better operational synergies helped juice up margins which boosted the bottomline.

Here is its Q2 report card:

• Revenue: Rs 193 cr; +25% YoY

• EBITDA: Rs 64 cr; +2x

• EBITDA Margin: 33% vs 21% last year 

• PAT: Rs 60 cr; +2x

A crazy Q2 that comes after a solid 2025 overall so far. The company is small, yes, but it’s firing on all cylinders. PS - what helps is that ~95% of its traffic is organic, which means it’s doing something right.

Cartrade Tech is +2x YTD