Tale of the Tape 

Good evening ya’ll!

Markets closed down for a second day. Broader markets got beaten up even more as Midcaps (-1%) and Smallcaps (-1.4%) came under heavy selling pressure. A rough 406 stocks in the NSE 500 finished lower.

Except IT (+0.2%), every other sector ended lower or flat. Metals (-2.1%) were the top loser followed by Real Estate (-1.5%) and Energy (-1.2%).

In today’s issue of the Daily Rip, we cover Ola Electric and Paytm’s Q2 results, the upcoming Pine Labs IPO, the top newsmakers and more.

Honourable Mentions:

Delhivery tanked -10% after posting a Q2 net loss of Rs 50 cr. PS - JM Financial downgraded the stock and cut its target price to Rs 530 p/sh (vs Rs 560 p/sh earlier). Adani Enterprises tanked -5% after approving a Rs 25,000 cr rights issue. 

Check out the NSE 500 heatmap:

Earnings
Earnings Roundup

Paytm (+4%) was up on a solid Q2 show! Gross merchandise value (GMV) jumped +27% YoY to hit Rs 5.67 lakh cr, helped by higher UPI-based credit card transactions + EMI offers. Tbh, it was a strong performance across verticals: merchant subscriptions hit an all-time high of 1.37 cr; +22% YoY.  Its loan distribution arm also grew +63% YoY to hit Rs 611 cr.

At the other end of the balance sheet, the bottomline figures are a bit of a mess. Profits are down YoY, but that’s because of one-offs in the base quarter. But the two big takeaways are that its profitability streak continues. And that it’s able to control its costs; indirect expenses & customer acquisition costs dropped -18% YoY and -42% YoY respectively. 

Here are its key stats:

• Revenue: Rs 2,061 cr; +24% YoY

• EBITDA: Rs 141 cr

• PAT: Rs 211 cr;  -97% YoY

We’ve called out the Paytm turnaround for a while here at Stocktwits. Paytm still may not be the company it once was, but it’s slowly getting there. PS - Emkay Global has hiked its target price to Rs 1,600 p/sh; +21% upside from current levels.

Paytm is +33% YTD.

Ola Electric Mobility (-5%) fell after posting weak Q2 numbers! FYI - the big headline is the sharp cut to its FY26 revenue guidance. It now expects a topline of Rs 3,000-3,200 cr vs Rs 4,200-4,700-cr projected earlier. This is rough, but reflects how badly its sales are doing. In Q2, deliveries dropped -47% YoY to just 52.6k vehicles. 

On the flipside, its losses narrowed YoY helped by a bump in gross margins. Fun fact: its auto biz also turned EBITDA-positive for the first-time-ever! This was partly helped by strong demand for the premium Roadster models (which now accounts for ~15% of its topline). But the gloomy outlook -- which implies it will sell even fewer vehicles in Q3 & Q4 -- left investors disappointed.

Here is its Q2 report card:

• Revenue: Rs 690 cr; -43% YoY

• Net Loss: Rs 418 cr vs 495 cr last year

Big Picture: CEO Bhavish Aggarwal has tried to attribute the sales slump to two factors. Firstly, the overall market is down but competition has increased. Secondly, it’s stayed away from heavy discounts which means its volumes will fall. Fair enough. But Aggarwal’s key assumption -- that whenever the market’s next phase of growth comes, Ola will automatically start doing better, is not a given. Customers may have simply moved on from the brand.

Ola Electric is down -45% YTD.

Specials
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Wondering what stocks the pros are tracking? In our latest video, we reveal three stocks that SEBI RAs have recently added to their Stocktwits watchlist!