Shares of drone manufacturer ideaForge Technology extended its post-earnings slump, falling 9.5% over two days to trade at Rs 809.10 on the BSE on Wednesday. The stock fell after the company reported a 49% decline in its Q1 profit margin, despite positive earnings for the June quarter.

Citing strong prospects but a risk of order delays, domestic brokerage firm JM Financial downgraded its rating on the stock from Buy to Add, with a target price of Rs 905 (previously Rs 875), due to the strong run-up in the stock, i.e. 100% in the last six months.

Ministry of Defence’s Drone Procurement Programme

The Indian Ministry of Defence (MoD) has planned a Rs 20,000-crore drone procurement programme, largely focused on tactical and surveillance UAVs. These are expected to be procured through the fast-track procurement route, with an 18–24-month delivery timeline. However, other opportunities under the programme are at various stages of approval, which could defer project awards to FY28/29.

JM Financial’s outlook

According to JM Financial, the company’s Q1 results were strong on execution but weak on order inflows and profitability. Order book at the end of this quarter stood at Rs 257 crore, implying order inflows of Rs 11.2 crore for the quarter, which is significantly lower both year-on-year as well as quarter-on-quarter, as per the brokerage’s note.
While order prospects remain strong with strong policy thrust on procurement of tactical drones, most of the tenders are in the approval phases, which may push the translation of these prospects to inflows to FY28–29. JM Financial expects order inflows to weaken YoY in FY27 and pick up in FY28 and FY29, with inflow estimates aggregating to Rs 1,500 crore over the next two years.

JM Financial expects execution momentum to remain strong in the coming quarters. Management has guided for gross margins to remain at 50–55% in FY27, supported by the execution of high-margin orders. The brokerage estimates revenue to grow at a CAGR of around 47% over FY26–29E as order inflows pick up in FY28/29. It expects operating leverage to drive EBITDA margins from 2% in FY26 to around 30% in FY29, with profit after tax estimated to rise to Rs 27.6 crore in FY28 and Rs 170 crore in FY29.

ideaForge Technology Q1 results

ideaForge Technology reported a gross profit of Rs 33.6 crore, up from Rs 7.9 crore in the year-ago quarter. However, gross profit margin declined to 49% from 62% in the same quarter last year. Revenue from operations stood at Rs 68.6 crore during this June quarter, with the company executing over 20% of its opening FY27 order book, according to a regulatory filing released after market hours on Monday.According to the company’s statement, global supply chain disruptions and component availability continue to pose challenges since the March quarter of FY26. However, the company remains focused on completing delivery of the opening order book of FY27 by Q3 as per customer timelines.

Also read | ideaForge Technology shares slide 5% after Q1 gross profit margin falls 49%

On order book visibility for FY27, co-founder and CEO Ankit Mehta said that the higher operational procurement limits for field commanders of Indian Defence Forces under DFPDS 2026 would accelerate procurement activities in Q3 and Q4, and that the company continues to see regular cycles on the civil side of the business that lean towards Q3 and Q4.

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

Franchising can be an exciting way for a successful business to expand its reach, increase brand awareness and enter new markets without relying entirely on company-owned locations.

However, not every successful small business is automatically ready to become a franchise. Turning an established operation into a franchise requires careful planning, reliable systems and a business model that can be successfully replicated by other people. Before deciding to franchise, business owners should take an honest look at their performance, processes, finances and ability to support franchisees.

Is Your Business Proven?

One of the first questions to ask is whether your business has a proven track record. While there is no universal definition of a successful franchise-ready business, evidence of consistent demand, profitability and customer satisfaction can provide an important foundation.

A business that is still experimenting with its products, pricing or basic operating procedures may not be ready to franchise. Franchisees are investing their own money and will expect to receive a business model that has already been tested. Ideally, the original business should have demonstrated that its products or services can generate sustainable demand rather than relying on a short-term trend.

Researching The Franchise Model

Before taking the next step, business owners should learn as much as possible about franchising. Websites such as UK Franchise Opportunities can provide useful information for entrepreneurs researching the franchise business model, including guidance about franchising, franchise opportunities and the considerations involved in becoming a franchisor.

Online resources can help business owners understand the terminology and basic principles of franchising before they begin developing their own franchise strategy. This research can also help clarify the differences between simply expanding a business and creating a structured franchise system that independent franchisees can operate.

Can Your Business Be Replicated?

A franchise needs to be repeatable. If the success of your company depends entirely on your personal involvement, knowledge or relationships, it may be difficult to turn it into a franchise.

Consider whether another entrepreneur could follow your processes and achieve comparable results with appropriate training and support. Your products or services should ideally be delivered through clear procedures rather than relying solely on intuition or individual expertise.

This does not mean every aspect of the business must be rigidly controlled. However, the essential elements responsible for delivering the customer experience and generating revenue should be clearly understood and capable of being taught.

Do You Have Documented Systems?

If you are thinking, franchise my business, one of the most important questions to ask is whether your existing systems are sufficiently documented. Franchisees need clear guidance on how to operate the business, from opening procedures and customer service to stock management, sales processes and marketing.

Creating detailed operational manuals can help transform the knowledge contained within the original business into a system that can be followed by franchisees. Documentation can also make training more effective and provide franchisees with a reference point when questions arise.

If most of your processes exist only in your head or are understood by a small number of employees, more preparation may be required before franchising.

Is Your Brand Strong Enough?

A recognisable and trusted brand can be a significant asset when developing a franchise. Franchisees are not simply buying instructions for running a business; they are also investing in the reputation, identity and customer proposition associated with the brand.

Before franchising, consider whether customers recognise what makes your business different from competitors. You should have a clear understanding of your target market and the reasons customers choose your products or services.

A strong brand proposition can make the franchise opportunity more attractive while providing a consistent foundation for future locations.

Can You Support Franchisees?

Franchising changes the role of the business owner. Instead of focusing solely on customers and employees within your own operation, you will also need to support independent business owners operating under your brand.

This can involve initial training, ongoing advice, marketing support, operational guidance and regular communication. If you do not have the time, resources or infrastructure to provide this support, rapid franchise expansion could create problems.

Consider what a new franchisee would need during their first few months and whether your business is equipped to provide it. Building a suitable support structure before recruiting franchisees can make the transition considerably smoother.

Are Your Finances Ready?

Franchising can reduce some of the capital required for opening company-owned locations, but creating a franchise system still involves costs. Legal advice, franchise documentation, training, marketing, recruitment and operational development can all require investment.

Business owners should therefore have realistic financial expectations and a clear understanding of how the franchisor will generate revenue. Franchise fees and ongoing payments should be structured carefully, while the underlying franchise model needs to provide a worthwhile opportunity for franchisees.

The financial performance of the existing business should also be sufficiently stable to support the transition into franchising without placing unnecessary pressure on the company.

Can You Let Go Of Some Control?

Becoming a franchisor requires a different mindset. You will no longer be the only person making decisions about how each location operates. Franchisees will be independent business owners with their own ideas, management styles and local knowledge.

Although franchise agreements and operational standards provide important controls, successful franchising also requires trust. You need to be comfortable delegating responsibility while ensuring franchisees follow the essential elements of your business model.

If you find it difficult to accept other people making decisions within your brand, franchising may present particular challenges.

Do You Have A Clear Growth Strategy?

Being ready to franchise means having a realistic plan for where and how the franchise network should grow. Rather than attempting to recruit as many franchisees as possible, it is generally more sensible to consider which markets, territories and franchisee profiles are most appropriate.

A measured expansion strategy can help protect the quality of the network. The first franchisees can also provide valuable feedback about training, systems and support, allowing the franchisor to improve the model before expanding further.

Getting Professional Guidance

Even if your business appears ready to franchise, obtaining specialist advice can help identify issues that may otherwise be overlooked. Experienced franchise consultants can assess your business model, help develop franchise systems and provide guidance on areas such as recruitment, marketing and network development.

Professional advice should complement, rather than replace, your own research. Business owners should take time to understand the financial, legal and operational commitments involved before proceeding with a franchise launch.

Conclusion

Knowing whether you are ready to franchise your business requires more than simply having a successful company. You need a proven and repeatable business model, strong systems, a compelling brand and the resources to support independent franchisees. Financial stability and a willingness to delegate are equally important.

Franchising can provide a powerful route to growth when the foundations are right, but rushing into the process can create unnecessary risks for both the franchisor and its franchisees. By researching the franchise model, documenting operations, developing a robust support structure and seeking appropriate professional guidance, business owners can make a more informed decision about whether the time is right to take their company to the next level.

Shares of Senco Gold cracked 8.16% to Rs 368.50 on Wednesday on the NSE. The stock came under pressure after the company reported mixed results for the first quarter ended June 30, 2026.

While consolidated revenue from operations surged 67% year-on-year (YoY) to Rs 3,056 crore, from Rs 1,826 crore in Q1 FY26, profitability came under pressure. Consolidated Profit After Tax (PAT) declined 3% YoY to Rs 101 crore, from Rs 105 crore in the year-ago period. Margins also weakened, with the PAT margin contracting 240 basis points to 3.3%, from 5.7% a year earlier.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew 16% YoY to Rs 213 crore, from Rs 184 crore in Q1 FY26. However, the EBITDA margin contracted 310 basis points to 7%, from 10% a year earlier, due to promotional discounting, lower gold prices and changes in customs duty.

Strong operational growth across retail network

Despite margin pressures, Senco Gold maintained operational momentum across retail operations. Retail sales grew 50% YoY to Rs 2,651.5 crore, supported by robust same-store sales growth of 39%.
The company’s performance was boosted by key festive and wedding occasions in the early part of the quarter, including Poila Boishakh, Akshaya Tritiya, Baisakhi, and Bihu. Old jewellery exchange played a crucial role in maintaining sales momentum amid high gold prices, accounting for 43% of total sales quantity.

Diamond jewellery also posted strong growth, expanding 43% YoY in value terms and 18% in volume terms. This expansion was largely driven by demand for lower-ticket offerings priced below Rs 50,000 under the Everlite collection.

Showroom expansion and subsidiary impact

During the April-June period, Senco Gold expanded its network by adding eight net new showrooms, taking its total count from 201 stores as of March 31 to 209 showrooms by June 30. The group remains on track to add another 12-15 showrooms during the rest of FY27, focusing on Tier-2 and Tier-3 cities and franchise partners.Subsidiary performance weighed on consolidated results. While Senco Global Apparel turned a profit, losses at Senco Gold Fine Jewellery LLC and Dubai-based SGJTL weighed on overall group profitability amid geopolitical uncertainties and the war.

Management commentary on performance and outlook

Suvankar Sen, Managing Director & CEO of Senco Gold, expressed confidence in the company’s underlying growth trajectory.

“We are pleased to begin FY27 with a strong Q1 performance, building on the momentum achieved in FY26. Consolidated revenue from operations increased 67% YoY, reflecting the continued trust of our customers in Brand Senco and broad-based demand during the festive and summer wedding seasons,” Sen said.

Looking forward, Sen noted that while Q2 is seasonally softer, Senco Gold remains focused on new design launches, store productivity, and margin protection. “We remain focused on achieving 20%+ value growth in FY27 while strengthening Brand Senco across the country,” he added.

Sanjay Banka, Group CFO & Head IR, highlighted that the company reduced quarterly inventory by Rs 300 crore to optimize efficiency and inventory days.

“We remain committed to FY27 value growth of 20%+ and EBITDA margin of 7.5%-7.8%, while working towards a sustainable PAT margin of 4%-4.5% with a sharp focus on Return on Capital Employed,” Banka added.

The Food and Drink Federation has warned that grocery prices will continue rising into 2027, with the possibility of shortages, as one of the UK’s hottest and driest summers on record cuts supplies of fruit, vegetables and grain.

The trade body, which represents food and drink manufacturers, said the lack of rainfall and arid conditions were likely to lead to higher prices and lower supplies of fruit and vegetables, putting upward pressure on food inflation into next year.

The supply of a number of UK-grown crops, including broccoli and cherries, has already come under pressure, while poor grain harvests are driving up the cost of animal feed, which could lead to more expensive meat.

The warning comes as Britain braces for the fifth heatwave of the summer, with temperatures expected to reach as high as 38C on Thursday. More than two thirds of England has been declared to be in drought this week.

Dr Liliana Danila, chief economist at the FDF, said: “Not only is the UK experiencing one of its hottest and driest summers on record, but across most of Europe heatwaves and severe droughts are impacting fruit, vegetable and grain supply.

“Competition for fewer resources will in turn push up the price of ingredients for manufacturers. The UK’s food and drink manufacturers work hard to absorb costs where they can, but are already grappling with rising costs as a result of war in Ukraine and in Iran, so we expect the additional upward pressure of reduced crops will be reflected in retail prices into next year.”

Retailers have already reported food prices rising this summer as hot weather reduced harvest yields. Food inflation climbed to a peak of 19.2 per cent in 2023, and household bills rose rapidly after Russia’s invasion of Ukraine four years ago.

At its interest rate meeting last month, the Bank of England warned that an especially strong El Niño weather phenomenon, as has been predicted this year, would lead to “hotter and drier conditions across several major agricultural-exporting regions [which] could reduce crop yields and put upward pressure on global food prices”.

The Agriculture and Horticulture Development Board said milk production has already been affected by the extreme heat, with yields hit by heat-stressed cows and poor conditions for grass grazing.

NatWest has drawn up plans to offer loan repayment holidays and overdrafts to its more than 40,000 farming borrowers, who face the prospect of lower crop yields. The bank warned that the impact could outlast the immediate heatwave, with warmer weather increasing the risks of disease outbreaks and damaging livestock productivity.

Ian Burrow, head of agriculture at NatWest, said: “British farmers are increasingly being forced to manage the consequences of weather extremes, from flooding one season to drought the next. The challenge for many businesses is no longer simply recovering from a single event but building resilience for a future where these conditions are becoming more frequent.

“With harvests progressing earlier than usual in some areas and livestock farmers already relying on winter feed stocks due to poor grass growth, cashflow and feed availability could become increasingly challenging.”

Analysts at Shore Capital have warned that Britain faces its worst food security crisis in decades as repeated heatwaves risk ruining farmers’ harvests.

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Shares of Multi Commodity Exchange (MCX) rose more than 2% on Wednesday as international brokerages issued bullish calls on the stock after market regulator Sebi proposed to allow foreign portfolio investors (FPIs) to participate in non-agricultural commodity derivative contracts, which are physically settled on domestic exchanges.

In a consultation paper issued on Tuesday, the Securities and Exchange Board of India (Sebi) listed proposals aimed at widening the scope of FPI participation in commodity derivatives. At present, overseas investors can trade in non-agricultural commodity derivative contracts that are only cash-settled. For commodity index derivatives, FPIs currently can participate only where the index and its underlying contracts are cash-settled.

The market regulator has now proposed removing this restriction as index derivatives are always cash-settled irrespective of whether their underlying contracts are cash-settled. “It would also facilitate greater integration of India’s commodity derivatives market with international commodity markets and support the development of Indian commodity contracts as credible price discovery venues,” said Sebi, which has invited comments on the proposals.

Also read | Sebi proposes to allow FPIs to participate in physically settled commodity derivatives

JPMorgan on MCX share price

JPMorgan upgraded its rating on the shares of MCX to ‘Overweight’ from ‘Neutral’, and hiked its target price to Rs 3,500 apiece from Rs 2,560 apiece. The latest target price implies 21% upside potential from the stock’s previous closing price of Rs 2,895 apiece on NSE.

It noted that Sebi’s new consultation paper proposes to admit FPIs into non-agri commodity index derivatives, and more materially into physically-settled non-agri contracts, marking the deepest structural widening of the foreign investor base in Indian exchange-traded commodity derivatives (ETCDs) since FPIs were first onboarded in 2022.
JPMorgan reads this as a structural volume catalyst for MCX, with bullion as the primary beneficiary.

Jefferies on MCX share price

Jefferies has a ‘Buy’ call on the shares of MCX, with a target price of Rs 3,600 apiece. This implies more than 24% upside potential.

The international brokerage noted that the FPI participation in cash-settled commodity F&O is 5-6% currently. Similar participation in physically settled non-agricultural contracts could add 3% to MCX’s profit, it added.

A deepening of commodity index options, which currently have no volumes, could add 10% to MCX’s profits, should they become 10% of monthly equity ADTO in three years, Jefferies further said.

Morgan Stanley on Sebi proposal

Morgan Stanley noted that FPIs contributed to approximately 4% of total notional turnover in FY26 and around 2% in Q1 FY27, as per Sebi data. The share from FPIs is likely to be higher when based on cash-settled contracts notional turnover, where FPIs are currently allowed to participate, it added.

MCX share price

MCX shares have gained around 13% in a week and 6% in a month, with the stock overall being up more than 33% in 2026 so far. It has overall gained more than 79% in one year.

In the longer term, MCX shares have delivered stellar returns of more than 828% in three years and 868% in five years. The company currently has a market capitalisation of over Rs 73,968 crore.

Also read | Sebi proposes to expand FPI play in commodities

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