Retailer said Music Magpie is now “run rate profitable” following its £35m acquisition

AO World has reported profits more than doubling as it defended its acquisition of online trade-in platform Music Magpie, which had been weighing on growth.

The electrical retailer posted rising profits and revenue, announcing that Music Magpie is now “run rate profitable”.

The pre-owned online marketplace had been recording a £6m loss and citing a “challenging” economic environment when it was acquired by AO World for £35m in December 2024.

Music Magpie added £3.5m in advertising costs, £7.3m in warehouse fees and £11m in administrative spending to its new parent company’s balance sheet in the year to March. But AO World credited its new acquisition with driving “the majority” of its 181 per cent surge in revenue within the second-hand commerce market, reaching £120m.

The FTSE 250 retailer’s revival of Music Magpie was achieved through withdrawing from its loss-making US operations and consolidating its warehouse network, it said, as reported by City AM.

AO revealed it has outsourced most of its inbound sales operations to a third-party firm in South Africa to avoid “ongoing inflationary pressure, and particularly rising employment costs”.

Retailers have intensified pressure on the Government in recent weeks over its increases to national insurance contributions and minimum wages, cautioning that escalating employment costs risk aggravating the youth unemployment crisis. This initiative “maintained service quality” and delivered savings of £2m this year, with anticipated annual savings of £4m in future years, the company said.

Pre-tax profit across the AO World group surged by 145 per cent to £51m, while turnover rose 11 per cent to £1.3bn.

The group recorded total liquidity of £201m at the financial year end, with profit conversion to cash generating free cash flow of £66m, up 152 per cent year-on-year.

AO World unveiled a new £10m special dividend alongside a separate £10m share buyback programme, underlining its “strong cash generation” over the past year.

The firm celebrated its status as the UK’s “most trusted electrical retailer” after becoming the first retailer worldwide to surpass one million Trustpilot reviews, maintaining a 4.9-star rating.

AO’s founder and chief executive, John Roberts, said: “In a category as demanding as ours, that trust is hard-won and almost impossible to copy. It sits nowhere on our balance sheet, yet it’s among the most valuable things we own.”

The group said it is responding to declining demand for phone contracts by restructuring its post-pay mobile business. This division had been loss-making, but AO said on Wednesday that it is now profitable.

The retailer said it is “confident in its ability to grow revenue,” but acknowledged the uncertainty created by “geopolitical volatility, cost inflation, shifts in consumer demand and rapid technological change”.

Chris Beauchamp, chief market analyst at stockbroker IG, said AO World is “swimming in cash” and is well placed to capitalise should inflation start to ease in the months ahead.

“A turnaround in its debt position and a surge in pre-tax profit is great news for shareholders, and news of more largesse in the form of dividends and buybacks should provide the fuel for a further recovery in the shares after a tough first half of 2026,” he added.

AO World, established as Appliances Online in 2000 and headquartered in Bolton, saw its shares climb 2.6 per cent to 98.5p on Wednesday.

Shares of CarTrade Tech surged 9.67% to Rs 2,614.50 during Wednesday’s trading session, extending gains for a second straight day after the company unveiled CarTrade Used Auto, its ambitious new platform aimed at transforming India’s fragmented used-car market. The stock has gained nearly 12% over the last two trading sessions, reflecting strong investor enthusiasm for the initiative.

The launch marks a significant strategic move for CarTrade Tech, one of India’s largest digital automotive marketplaces. The company is bringing together the strengths of CarWale and OLX India to create a unified, technology-driven and asset-light ecosystem covering the entire used-car journey, from buying, selling and exchanging vehicles to financing and ownership transfer.

According to the company, CarTrade Used Auto will cater to all transaction formats, including B2C, C2B and C2C, while also offering financing solutions. The platform has introduced SuperDost, an AI-powered suite featuring services such as vehicle matchmaking, pricing assistance and condition assessment to simplify the customer experience.

India’s used-car market is entering a high-growth phase. Annual used-car transactions have already crossed approximately 5.9 million units and are projected to reach 9.5–10 million by 2030. With the average transaction value estimated at Rs 5–6 lakh per vehicle, the market currently represents a gross merchandise value (GMV) opportunity of over Rs 3 lakh crore, which could potentially expand to Rs 5–6 lakh crore by the end of the decade.

CarTrade Tech already attracts around 65 million monthly automotive users across its platforms and engages with nearly 3 million used-car sellers and 20 million buyers every year. The company aims for CarTrade Used Auto to facilitate nearly 2 million used-car transactions annually, translating into a potential transaction value of around Rs 1.2 lakh crore per year.

The company is also eyeing India’s rapidly expanding used-car financing segment. Through CarTrade Used Auto Finance, it plans to offer customers multiple loan options via partnerships with leading banks and NBFCs, while maintaining its asset-light business model.
Commenting on the launch, Aneesha Bhandary, Executive Director and CFO, said the used-car market remains fragmented across discovery, pricing, financing and ownership transfer. She added that the new platform aims to create a seamless transaction infrastructure by combining the reach of CarWale and OLX India with technology-led solutions.CarTrade Tech’s rally has been nothing short of remarkable. The stock has soared about 37% in the last one month and delivered an eye-catching 410% return over the past three years. The company currently commands a market capitalisation of approximately Rs 11,413 crore, while its 52-week high stands at Rs 3,290.

From a technical standpoint, momentum remains firmly positive. The stock is trading above all eight key simple moving averages (SMAs), indicating a strong bullish trend. However, caution may be warranted in the near term. The 14-day Relative Strength Index (RSI) is at 71.9, which places the stock in the overbought territory.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The shares of Vedanta Power rose 4% on Wednesday, after falling for two consecutive days following their much-awaited market debut after the mega demerger on Monday.

Vedanta Power debuted at Rs 41.80 per share on the NSE on Monday. The shares of the company fell 2% on the first day, and another 2% on Tuesday.

The shares of Vedanta Power jumped around 4% today to trade at Rs 42 apiece on the NSE, crossing its listing price. The company’s market capitalisation currently stands at more than Rs 16,126 crore.

Also read: Vedanta Power shares list at Rs 42 as mega demerger concludes

About Vedanta Power

Vedanta Power has more than 4 GW of installed capacity in four strategic assets in Punjab, Andhra Pradesh, Chhattisgarh and Odisha. It has several long-term and mid-term Power Purchase Agreements (PPAs) with state utilities.The power company aims to become one of India’s top three private thermal power players by FY33 through a combination of organic expansion and asset turnarounds. Its portfolio comprises Vedanta Power Talwandi Sabo Thermal Plant in Punjab (1,980 MW), Vedanta Power Meenakshi Energy in Andhra Pradesh (1,000 MW), Vedanta Power Sakti in Chhattisgarh (600 MW operational with another 600 MW under commissioning), and Vedanta Power Jharsuguda Thermal Plant in Odisha (600 MW).

Also read: Vedanta Aluminium vs Vedanta Power; which can give investors better wealth in Rs 2 lakh crore demerger play

About Vedanta demerger

The Anil Agarwal-led conglomerate announced in April that each of its eligible shareholders will get one share in each of the four companies, namely Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel, for every share held in Vedanta held on record date, marking one of the biggest corporate restructurings in India’s metals and mining space.

Vedanta had set May 1 as the record date for the much-awaited demerger. According to exchange notices, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel, which made their much-awaited market debut on Monday, were initially placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.

Also read: 4 new Vedanta Group stocks debut on Dalal Street. What’s ahead?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of Yes Bank gained as much as 6.5% to their day’s high of Rs 25.45 on the BSE on Wednesday, extending gains for a fourth straight session and rallying 15% over the same period. The private lender’s stock price is up 17% in 2026 and about 26% in one year.

From a fundamental perspective, the recent uptrend comes on the back of the lender announcing a strategic partnership with Northern Arc Capital aimed at expanding access to credit, scaling digital lending and offering debt investment opportunities to customers.

Also read: 5 under-the-radar stocks owned by 3 largest smallcap portfolios

For traders, here’s what technicals suggest

Ajit Mishra, Senior Vice President at Religare Broking, said Yes Bank share price has seen a healthy recovery from its crucial support zone near Rs 17 and is now moving towards a major hurdle at around Rs 26, which coincides with its 20-week exponential moving average (WEMA).

He expects the stock to face some consolidation around that level, with a decisive breakout above Rs 26 potentially triggering the next leg of the recovery. Mishra advises short-term traders to consider booking partial profits near Rs 26 and wait for sustained strength above that level before re-entering, or accumulate on dips towards the Rs 23-24 zone.

Ruchit Jain, Vice President of Technical Research at Motilal Oswal, said the banking and NBFC space has started gaining momentum and has outperformed the broader market this month. He noted that Yes Bank has broken above its key resistance level of Rs 24, supported by rising volumes over the past few sessions. According to Jain, the stock’s 200-week exponential moving average, placed around Rs 26, will be an important resistance level to watch.

Virat Jagad, Senior Technical Research Analyst at Bonanza, said the stock has delivered a decisive breakout above a long-term descending trendline resistance, backed by a strong bullish candle that cleared major overhead supply.
He noted that the RSI has moved firmly into bullish territory above 60 without any bearish divergence, signalling strong upward momentum. Jagad added that the stock’s EMAs remain aligned in a structural uptrend, supporting fresh long positions in the Rs 24.00-Rs 24.60 range, with upside targets of Rs 28.50 and Rs 31. He recommends a stop loss at Rs 22.80 for fresh positions and a trailing stop loss at Rs 21.90 for existing holdings.Read more: AI boom hands HFCL investors nearly 200% returns in just 6 months. Overheated or undervalued?

Yes Bank Q4 snapshot

The private lender reported a 45% year-on-year surge in net profit to Rs 1,068 crore for the January-March quarter of FY26, while its net interest income rose 16% YoY to Rs 2,638 crore for the quarter under review.

Net interest margin (NIM) gained 20 bps to 2.7%, while asset quality improved. Gross non-performing assets (NPA) ratio declined 30 bps YoY to 1.3%, while net NPA ratio declined 10 bps to 0.2%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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