In a week packed with corporate developments and regulatory shifts, market participants are weighing the implications of Sun Pharmaceutical Industries’ latest acquisition move, fresh concerns around Paytm Payments Bank, and the broader outlook for banks and NBFCs.

Speaking to ET Now, market expert Amit Khurana from Dolat Capital offered a measured take—highlighting opportunity, but not without caution.

Sun Pharma’s Big Bet: Strategic Fit, Debt a Watchpoint

Sun Pharma’s all-cash acquisition, priced at $14 per share, has drawn attention for both its scale and strategic intent. Khurana acknowledged the inherent difficulty in judging whether the price is “right,” noting that execution will ultimately determine success.

“Well, yes, I mean that is always the tough one to answer because ultimately the integration issues, the whole synergies and the positioning over a period of time will determine whether this was a fair price or not.”

He pointed out that the acquisition strengthens Sun Pharma’s portfolio, particularly in biosimilars, while also opening room for operational improvements.

“But on the face of it, it does look like a pretty reasonably well justified acquisition on what it adds to the portfolio for Sun Pharma, especially on the biosimilars front and also on the other side Organon did not have that much of R&D and therefore Sun’s capability will add to their ability to ramp up the products. Equity valuation seems pretty reasonable.”
However, the deal’s nearly $10 billion debt component remains a key concern. “Slight concern if one were to highlight is more on the debt side of it and how will that essentially get addressed, that will be one sort of joker in the pack that the management will have to navigate very-very carefully and the markets will probably take a cue on that.”

Still, Khurana maintained that the move is directionally sound.

“But overall, pretty good structurally and strategically a very good acquisition for an Indian entity and Sun has been on the lookout for such buyouts to scale up the business over a long term. So directionally, yes, the right move. The debt is the only sort of caveat. Otherwise, we are in good shape overall.”

Is the Debt Manageable?

Despite the size of the borrowing, Khurana does not see it as alarming—provided execution stays on track.

“Based on what the management is guiding seems manageable.”

He emphasized that integration speed and product scalability will be critical in determining how comfortably the company handles its obligations.

“Now Sun’s capability to scale it up further over the next few years will be the large determinant of how the cash flows work out and then, of course, you have the overall market environment which if it does not deteriorate then obviously there will be a lot of support on that front. So, I would say largely manageable. It is not as if it is a situation of a SOS, but it will have to be navigated very carefully.”

Paytm Payments Bank: Limited Damage to the Core Story

On the regulatory front, the cancellation of Reserve Bank of India license for Paytm Payments Bank raised concerns. However, Khurana downplayed its long-term impact on Paytm’s listed entity.

“Well, small impact here or there, but I do not think it really makes a change in our view on the stock per se.”

He highlighted that Paytm’s core business fundamentals remain intact.

“In our view, the overall core business profitability seems to be pretty much on track and the scalability is really playing out and, of course, over the last few quarters we have seen a significant cost control measures that have been playing out on Paytm and that will continue to be the driver in our view.”

While sentiment may take a short-term hit, the broader outlook remains unchanged.

“There is maybe a small damper, but I do not think it changes the longer-term story in any manner.”

Banking Sector: Stable, With Upside Potential

Turning to the banking space, Khurana noted a broadly stable earnings season with no major surprises.

“No significant deviation that as far as we have seen in the earnings season till date. Most of the vectors are pointing out towards a demand for credit.”

However, global uncertainties—particularly geopolitical tensions—are prompting caution.

“There is a sort of a, shall I say, guarded view, a cautious view on as to how the impact of the US-Iran conflict will play out on corporate balance sheets.”

Even so, he remains constructive on the sector.

“Overall numbers look pretty healthy. The valuations have corrected very reasonably across the board and therefore that gives a lot of comfort… I think banking at large will continue to be in a good shape and therefore our view is slightly more constructive than what was the case six months back.”

Among large-cap lenders, ICICI Bank stands out as a preferred pick.

NBFCs vs Banks: A Shift in Preference

Khurana struck a more cautious tone on NBFCs, citing stretched valuations in segments like gold and auto financing.

“So, I would probably put it more in the neutral zone right now on overall NBFC space.”

Instead, he favors banks due to better risk-reward dynamics.

“In fact, I would probably prefer banks from here on versus the NBFC space given the valuations being far more attractive and the risk return profile being far more attractive.”

Where Is the Opportunity Now?

Looking beyond the sectors discussed, Khurana remains focused on India’s consumption story.

“We are playing to the… and essentially wanted to play out on the consumption theme in India largely and discretionary consumption which remains one of our favourite themes.”

He also highlighted selective, bottom-up opportunities rather than broad sector bets. Among them:

He also pointed to stronger interest in domestic internet themes and defence-related plays.

The Bottom Line

From a blockbuster pharma deal to regulatory shocks and sectoral shifts, Khurana’s outlook reflects cautious optimism. While risks—from debt to geopolitics—remain, the underlying tone is clear: India’s structural growth story, particularly in consumption and banking, continues to hold firm.

SYDNEY — Australia’s fuel supply situation showed modest signs of stabilization Monday as national petrol reserves reached 46 days — the highest level since the current crisis began — while diesel shortages at service stations continued to decline, though high prices and supply chain vulnerabilities persist due to disruptions in the Middle East.

The federal government confirmed the country remains at Level 2 of its National Fuel Security Plan, with Energy Minister Chris Bowen announcing additional diesel cargoes secured from South Korea, Brunei and Malaysia expected to arrive in late May or early June. Prime Minister Anthony Albanese said after a National Cabinet meeting that forward shipping programs are strengthening, but warned Australians to remain vigilant as the situation evolves.

As of late April, roughly 5% of Australia’s 8,300 service stations are experiencing some level of fuel shortage, with diesel outages dropping to around 2.5% nationally. However, regional and rural areas continue facing more acute pressures, with some truck stops and remote communities reporting empty pumps.

Prices Begin to Moderate

Average unleaded petrol prices have fallen to around 192.7 cents per litre nationally — down significantly from peaks above 240 cents in March — though still elevated compared to pre-crisis levels. Diesel remains a major concern at an average of 275.8 cents per litre, up sharply from pre-crisis figures and threatening higher costs for freight, agriculture and everyday goods.

The government’s temporary halving of the fuel excise (from 52.6 cents to 20.6 cents per litre) has helped blunt some pain at the pump, saving motorists roughly 26 cents per litre for three months. Additional relief measures for heavy vehicles and interest-free loans for fuel-intensive businesses are also in effect.

Root Causes and Global Context

The crisis stems primarily from disruptions linked to conflict in the Middle East, particularly tensions affecting the Strait of Hormuz — a critical chokepoint for global oil shipments. Australia imports about 90% of its refined fuel, leaving it highly exposed to international shocks. A recent fire at the Geelong refinery added further pressure on domestic processing capacity, as the country now operates with only two major refineries.

International Energy Agency chief Fatih Birol described the situation as one of the worst fuel crises in history and has been in discussions with Australian officials about coordinated responses, including releases from global stockpiles.

Impact on Australians

Many households and businesses have adjusted behaviors in response. Long-distance travel plans, including Easter trips, were scaled back or canceled in some cases. Truck drivers and farmers report significantly higher operating costs, with warnings of potential flow-on effects to food prices. Some commuters have turned to carpooling, public transport or working from home where possible.

Regional areas and industries reliant on diesel — mining, agriculture and logistics — face the greatest strain. The National Farmers’ Federation has expressed concern about rising input costs potentially driving up grocery prices by as much as 50% in extreme scenarios.

Government and Industry Response

Beyond excise relief and new import deals, authorities are considering longer-term measures such as building strategic fuel stockpiles, encouraging new refinery investments and accelerating the transition to alternatives like electric vehicles and hydrogen. Opposition figures and industry groups have called for faster action on domestic production and refining capacity.

The government has extended allowances for higher-sulphur petrol blending until the end of 2026 to maximize available supply. Public campaigns encourage conservation without panic buying, which has largely been avoided so far.

Economic and Political Ramifications

The fuel crisis has contributed to inflationary pressures, with experts forecasting Australia’s inflation rate could outpace other developed nations in coming months. It has also become a political flashpoint, with One Nation and other parties gaining traction in polls amid cost-of-living concerns.

Analysts warn the vulnerability exposed by the crisis highlights Australia’s heavy reliance on imported refined fuel and the need for greater energy resilience. Proposals include tax incentives for new refineries, expanded storage facilities and accelerated renewable adoption to reduce oil dependence.

Outlook for Coming Weeks

With new shipments en route and reserves improving, officials express cautious optimism that the worst of the shortages may be easing. However, diesel prices and freight costs remain elevated, and any further disruption in global supply chains could quickly reverse recent gains.

Motorists are advised to shop around for the best prices using apps and websites, fill up during off-peak times and avoid unnecessary trips. Businesses, particularly in transport and agriculture, are urged to review fuel management strategies, including on-site storage where feasible.

As Australia navigates this challenge, the crisis serves as a wake-up call about energy security in an increasingly volatile world. While short-term measures have helped stabilize supply, longer-term reforms will be essential to protect households, businesses and the broader economy from future shocks.

Satoshi Arai
President, Group CEO, Executive Officer & Representative Director

This is Arai, I thank you very much for joining our financial results briefing for the fiscal year ended in March 31, 2026. Given the interest of time, I will go straight into my presentation. Please proceed to Page 4 of the results presentation material.

For FY March ’26, operating revenue was JPY 942.5 billion with JPY 147.3 billion of business profit and JPY 82.8 billion of profit attributable to owners of parent. We were able to achieve record highs for growth operating revenue in each profit items. Business profit was well above the 8% growth target set forth in the management plan announced last year. Net profit also achieved a significant increase despite the extraordinary loss related to the demolition of Hamamatsucho building during FY March 2026. ROA and ROE was 5.4% and 10.7%, respectively, as shown on a different page, achieving high asset and capital efficiency. In sum, we evaluate that we have made good progress in the first year of the 3-year business plan.

Next, performance by segment. Please proceed to Page 5. By segment, the domestic business performed well. The top line and profit growth was driven primarily by the Housing Sales Business under Residential Development segment and Property Sales Business under the Commercial Real Estate segment. The Investment Management business, a property brokerage and CRE business as well as property and facility management achieved operating revenue and business profit growth. On the other hand, the Overseas segment posted declines in both operating revenue and business profit due to a lower housing units sold in Vietnam.