Daily Brief India: SBI Cards & Payment Services, Ola Electric, Yes Bank, JSW Energy Ltd, Tata Consultancy Svcs, HBL Power Systems, Delhivery , Apollo Hospitals Enterprise and more

• Q2 FY26 showed healthy spend growth but structurally weak profitability, with yield compression, elevated credit costs, and higher OpEx offsetting sharp funding-cost relief
• Portfolio mix skewed toward transactors and EMI-led spends drove lower interest-earning assets, capping NIM at 11.2% despite a 69 bps QoQ drop in cost of funds.
• Credit costs remain materially above historical levels, with heavy write-offs keeping ROE anchored in the low-teens and limiting near-term earnings recovery.

• Ola Electric (OLAELEC IN) since its IPO has been under scanner. The management presented a very optimistic narrative in Q1FY26, hoping to turn tides, increase volumes, along with better profitability.
• As things stand, volumes continue to hit new lows, market share continues to tumble and the new narrative of Auto EBITDA positive could possibly be an eye wash.
• The company’s strategic mismanagement is unmasked and and with internal controls disappearing . Ultimately, the promoter sell off could be a final nail in the coffin.

• Context: The Yes Bank (YES IN) vs. IDFC First Bank (IDFCFB IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Yes Bank (YES IN) and short IDFC First Bank (IDFCFB IN) targets a 6% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Ola Electric saw a sharp sales collapse, lost its E2W leadership to TVS Motor, and witnessed founder Bhavish Aggarwal selling 1.54% stake worth INR 234 crore across two sessions.
• The combination of a ~50–70% sales decline, market share erosion, guidance cuts, and promoter stake sales raises concerns around demand sustainability, execution gaps, and balance-sheet stress at the promoter level.
• Despite selective operational improvements, Ola Electric’s weakening sales momentum and promoter de-risking signal a shift from aggressive growth to damage control, warranting a cautious stance until demand visibility stabilises.

• JSW Energy is aggressively expanding its power generation capacity with a target of 30 GW by 2030, focusing heavily on renewable energy sources, which positions it well to capitalize on India’s energy transition.
• The company’s financials are stretched due to significant capital expenditures for growth projects, with a high Net Debt to EBITDA ratio, posing a considerable financial risk.
• While the company’s strategic pivot to renewables and ventures into energy storage and green hydrogen are forward-looking, successful and timely execution of its massive project pipeline remains a critical uncertainty.

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• TCS achieved $1.5 billion in annualised AI revenue with 16.3% QoQ growth, significantly outperforming traditional service segments and signaling a successful transition to AI-led growth.
• The company implemented a five-level “Human + AI” service autonomy model, progressing from simple tools to self-learning “Agentic Enterprises” to modernize global service delivery.
• TCS launched HyperVault for gigawatt-scale AI data centers and reskilled 580,000+ employees, positioning itself as a full-stack orchestrator in the global AI ecosystem.

• HBL Power Systems (renamed HBL Engineering) has secured the first RDSO approval for Kavach 4.0, propelling its order book to over INR 4,000 crore as of December 2025. 
• HBL is entering its most intensive execution phase to date, with a revenue guidance of INR 3,000 crore for FY26 (a ~55% jump YoY).
• The Railway Board has cancelled approximately 7,000 undelivered units industry-wide, effectively weeding out underperforming vendors and preparing for a massive 18,429-unit re-tender cycle.

• Delhivery is India’s largest fully integrated logistics provider, well-positioned to capitalize on the country’s rapidly expanding e-commerce and manufacturing sectors. Its tech-driven, asset-light model provides a scalable platform for growth.
• The recent acquisition of Ecom Express solidifies its market leadership in the express parcel segment. Synergies from this integration are expected to drive margin improvement and enhance its rural delivery network.
• After a period of significant investment and losses, the company has demonstrated a strong turnaround to profitability in FY25. However, it trades at a premium valuation and faces key risks from high revenue concentration and intense competition.

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• Recent results are disappointing and point to slower organic growth especially in the much higher margin Healthcare Services division.
• The recent results also provide further evidence revealing the difficulty in expanding the network outside of management contracts.
• Apollo is the cheapest of the three main listed hospital groups. At 48 forward PE & 26 forward EV/EBITDA, we expect the core division to be growing faster (9%, Sept-25,Q2-results).