The September 2025 quarter marked a notable shift in the corporate financial performance, with double-digit profit growth returning after several subdued quarters. At the beginning of the year, macro conditions appeared challenging—global trade resets and domestic uncertainties had resulted in nearly eight quarters of muted, single-digit corporate growth. However, the resilience of local policy and corporate adaptability has been a defining theme. Domestic-focused measures, including consumption-oriented tax adjustments and improved liquidity, have helped maintain GDP growth above the 6% mark. Corporates, too, displayed strong agility by diversifying markets, managing working capital efficiently, and preponing export cycles wherever required. While the outlook for the remainder of the financial year remains broadly constructive, valuations in certain pockets have begun to narrow. Despite headline indices remaining firm, market breadth has weakened, with more stocks delivering negative returns over the quarter—particularly in the small and mid-cap segments.
| From | 27-Sep-24 Members | Advance | To Decline | 30-Nov-25 Closing | % Change |
|---|---|---|---|---|---|
| NIFTY INDEX | 50 | 26 | 24 | 26,203 | 0% |
| BSE500 INDEX | 501 | 175 | 326 | 37,536 | -3% |
| NSEMCAP INDEX | 100 | 49 | 51 | 61,043 | 1% |
| BSESML INDEX | 1,226 | 330 | 896 | 52,054 | -9% |
The second quarter earnings season (Q2FY26) marked the seventh consecutive period of modest profitability growth for corporate India. Although the trajectory improved, progress remains subdued. Meanwhile, broader indices have stayed range-bound for over 14 months, and market performance has become increasingly narrow.
Despite this, the operating performance of our underlying portfolio businesses continues to demonstrate resilience—even in an environment where sentiment has often dictated near-term market direction.
Forward Outlook – H2FY26As we step into the second half of FY26, several policy and liquidity measures implemented in recent months are expected to gain traction. These include consumption-boosting tax cuts, GST reductions, liquidity infusion via rate cuts and CRR adjustments, and reforms aimed at improving credit supply. Much of the negative sentiment around global trade has already been digested by markets. As visibility improves, the drag from uncertainty is expected to fade. A favourable low base over the coming quarters further strengthens the case for an improvement in profitability. However, elevated valuations across several segments suggest that the coming period will be a stock picker’s market, where disciplined capital allocation remains key.
Portfolio PerspectiveAcross our holdings, operating momentum has remained healthy despite a challenging macro backdrop. We see several common structural themes in the portfolio: completion of capex cycles, recovery from difficult business cycles, and businesses consolidating on prior momentum. From our vantage point, the underlying growth trends within our investee universe remained stronger than the broader benchmark, despite several one-off factors inflating headline EBITDA and PAT numbers for the index.
| Operating Metrics (% growth, YoY – Q2FY26) | |||
|---|---|---|---|
| Name | Revenue | EBITDA | PAT |
| BSE500^ | 8% | 18% | 58% |
| BSE500*^ | 9% | 12% | 14% |
| Portfolio stock of Old Bridge Focused Fund# | 13% | 23% | 29% |
#Excludes Financial Services,
*Excludes Financial Services, 5 Oil Marketing Companies (OMC’s) and Tata Motors Passenger Vehicles Ltd (TMPVL) For a coherent comparison of YoY growth for the manufacturing universe. Profitability of OMC’s and TMPVL were positively impacted by one-time non-recurring events in Q2FY26.
Source – Ambit Institutional Equities, Old Bridge, ACE Equity
We maintain a consistent investment philosophy anchored in competitive advantage at scale, industry leadership or challenger positioning, strong operating cash cycles, and long-term structural relevance. Areas where challenges persist are under review, and we will proactively re-configure select parts of the portfolio where required.
While valuations remain elevated and selective froth persists—particularly in IPO markets—such phases often create opportunities. Market dislocation or narrow breadth provides the right backdrop to rotate capital toward businesses closer to their cyclical bottoms and more attractive risk-reward dynamics.
Investment Approach & PositioningWe maintain a consistent investment philosophy anchored in competitive advantage at scale, industry leadership or challenger positioning, strong operating cash cycles, and long-term structural relevance. Areas where challenges persist are under review, and we will proactively re-configure select parts of the portfolio where required.
While valuations remain elevated and selective froth persists—particularly in IPO markets—such phases often create opportunities. Market dislocation or narrow breadth provides the right backdrop to rotate capital toward businesses closer to their cyclical bottoms and more attractive risk-reward dynamics.
ConclusionThe near-term outlook appears reasonably supported by improving domestic demand, supportive policy conditions, and easing global uncertainties. While medium-term visibility remains mixed, the environment is conducive for selective deployment and portfolio optimisation.
As active managers, we will use this period of market dispersion to strengthen the portfolio construct. If operating performance continues to hold up, we expect market narratives to realign with the underlying fundamentals.
It has come to our notice that some unscrupulous persons are passing themselves off as or being affiliated with Mr. Kenneth Andrade, Founder of Old Bridge Capital Management Private Limited and Director & Chief Investment Officer of Old Bridge Asset Management Private Limited. They have been appropriating parts of his identity and photograph(s) with the intent to defraud unsuspecting members of the public. We have learnt that some of the platforms being used by these impostors are as follows:
and or any other channel / platform we are not aware of to lure members of public in investment and or trading activity for their unlawful gains promising huge returns on their money.
Kenneth Andrade, Old Bridge Group or any of its entities are in no way associated with these fake social media accounts / posts / Whatsapp group / Whatsapp numbers and shall not be responsible for, and expressly disclaims all liabilities for, damages of any kind arising out of the use of, reference to, or reliance on any information contained on the such social media platform, Whatsapp groups, and or any other channel / platform we are not aware of by impostors.
We advise then investors not to fall prey to these fake groups / phishing websites and stay vigilant of such scams.