India Daily Briefing

Delhivery reported a Q1 net profit collapse of 65% year-on-year to just Rs 32 crore, a number that will sting existing investors. However, the revenue line is rising, which is the thesis that growth-stage logistics investors are holding onto. The read for the broader express logistics sector — which competes in a structurally under-penetrated market — is that margin compression is real but market-share gains are continuing. Analysts who own this for the 3-5 year ecommerce compounding story will likely look through the profit miss; those watching for near-term return on capital will not.

Apollo Micro Systems delivered its best-ever June-quarter profit, riding India's accelerating defence electronics indigenization drive. The defence manufacturing sector has been a consistent outperformer in FY26 as the government's PLI-linked procurement pipeline translates into revenue recognition at component makers. Apollo Micro's record print validates the thesis that listed defence electronics plays — not just the OEM primes like HAL and BEL — are direct beneficiaries of India's 25% defence capex allocation to domestic procurement. Watch for Bharat Electronics and MTAR Technologies next week for corroborating signals.

SBI Funds Management says foreign portfolio investor (FPI) inflows into Indian government bonds are likely to remain subdued even after the recent tax relief measures, citing global risk appetite and US rate uncertainty as the primary headwinds. This is a meaningful signal for the INR and for G-Sec yields: if FII bond flows disappoint expectations set by JP Morgan GBI-EM index inclusion, domestic yield support remains with DII players. RBI's next policy meeting takes on added importance as the rate differential needed to attract foreign capital may need to widen to compensate for global risk-off episodes.