Shares of spend management solutions provider Zaggle Prepaid Ocean Services tanked 20% to Rs 160.45, hitting the lower circuit on the BSE on Monday, after the company reported a 32.9% year-on-year decline in profit after tax to Rs 17.53 crore for the June quarter of FY27, from Rs 26.11 crore in the corresponding quarter of the previous year.

Revenue from operations rose 27.5% year-on-year to Rs 423.27 crore from Rs 331.97 crore in the same quarter last year, according to a regulatory filing. Adjusted EBITDA rose 4% YoY to Rs 34.74 crore from Rs 33.42 crore in the June quarter of FY26.

However, the adjusted EBITDA margin declined to 8.2% in Q1FY27 from 10.1% in the corresponding quarter of FY26. The company attributed the decline to expenses related to the Dice acquisition, including transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals. Revenue from Dice contracts was not captured in Q1FY27 and will start reflecting from Q2FY27 onwards.

Propel margins surged on the back of a strong performance from Greenedge as well as overriding commissions received during the quarter, according to the company.

Commenting on the Q1 performance, Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services, said, “Q1 FY27 marks an important inflection point for Zaggle as we move from a decade of profitable growth into a phase of transformation through consolidation.”

He added that the company’s focus is now firmly on optimising core operations, scaling AI across its platforms and integrating its recent acquisitions, while calibrating its capitalisation and instilling greater cash flow discipline to position the company for higher-margin growth in the years ahead.
The company has completed an investment of Rs 8 crore in Unobanc Private Limited, a subsidiary of Hop Financial Solutions Limited, which holds an Authorised Dealer Category II licence from the RBI. The investment strengthens Zaggle’s capabilities in cross-border payments, forex cards and remittances, enabling it to expand its financial solutions for both corporate and retail customers.Following the acquisition of Dice, the company has brought marquee enterprise clients including Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, Nephroplus and XpressBees into its fold. Beyond expanding its client base, Dice’s technical expertise is accelerating Zaggle’s AI roadmap across Save and Zoyer, strengthening automated spend analytics, approval workflows and predictive expense management and creating a strong launchpad for its overseas growth.

“Looking ahead, our various acquisitions alongside our card initiatives and international foray all strengthen our platform for the next phase of scale,” the Founder and Executive Chairman said.

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

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SYDNEY — Shares in Mesoblast Ltd surged 8.82% on the Australian Securities Exchange, climbing 19.5 cents to close at $2.405, as the Melbourne-based regenerative medicine company clawed back a significant portion of the losses it suffered at the end of last week following a securities filing that had briefly rattled investors.

The rebound came just one trading session after Mesoblast shares were the worst performer on the ASX 200 on Friday, tumbling 7.14% to $2.21. That decline followed a substantial holder notice disclosing that U.S. custodian bank State Street Corporation had accumulated a 5.1% stake in the company. According to reporting on the filing, the position was largely attributable to routine stock-borrowing and securities-lending activity rather than a conventional long-term investment, a detail that appeared to unsettle some investors before the stock steadied and reversed course Monday.

Friday’s pullback marked a sharp reversal for a stock that had been trading roughly 6.73% higher in the week leading into that session, according to market data. Even with Monday’s gain, Mesoblast shares remain down significantly for the year, having traded as much as 20% below their starting point in 2026 at the low point of Friday’s slide.

The volatility has been a recurring theme for Mesoblast in recent months. Shares reached a four-year high of $3.37 in early January after the company secured U.S. Food and Drug Administration approval in December for its flagship cell therapy Ryoncil, known generically as remestemcel-L, to treat steroid-refractory acute graft-versus-host disease in children. The drug has been commercially available in the United States since March. Since that January peak, the stock has traded in a wide and often unpredictable band, at times moving more than 10% in a single session on relatively thin trading volume.

Mesoblast’s underlying business has shown improving, if still early-stage, financial results. The company reported first-half fiscal 2026 revenue of $51.3 million, driven largely by a $49 million contribution from Ryoncil sales and a gross margin of roughly 93%. Net loss for the period narrowed to $40.2 million, an improvement of $7.8 million from the prior year, even as the company increased spending on research and development to $46.1 million and saw selling, general and administrative expenses rise 58% to $28.5 million. Mesoblast has guided investors to expect full-year fiscal 2026 Ryoncil net revenue of between $110 million and $120 million.

The company also moved to shore up its balance sheet earlier this year, securing a $125 million credit facility aimed at supporting commercialization efforts and continued research spending, following an earlier drawdown of a separate $50 million facility from an existing shareholder used to retire higher-cost debt. Mesoblast, founded in 2004 by chief executive Silviu Itescu and now led alongside chair Jane Bell, employed 81 people as of its most recent annual report and posted full-year 2025 revenue of $17.2 million, up 191% from the prior year, though its net loss for that period widened 16% to $102.1 million.

Beyond Ryoncil, Mesoblast’s pipeline includes Revascor, also known as rexlemestrocel-L, which the company is developing for advanced chronic heart failure and, separately, for high-risk patients with left ventricular assist devices. The FDA granted the therapy regenerative medicine advanced therapy designation in December for its heart failure indication. The company is also advancing a Phase 3 trial of rexlemestrocel-L for chronic low back pain caused by inflammatory degenerative disc disease, a program that began patient enrollment in mid-2024.

Analyst sentiment on the stock has remained broadly positive despite the recent swings. Data compiled by Investing.com shows Mesoblast carrying a “Strong Buy” consensus rating from covering analysts, with an average 12-month price target well above current trading levels, reflecting expectations that continued Ryoncil sales growth and progress in the company’s late-stage pipeline could support a re-rating of the stock over time. Simply Wall St’s tracking of analyst estimates shows a broadly unchanged consensus price target in recent weeks even as the shares have whipsawed on lighter, event-driven trading.

Monday’s gain also outpaced the broader Australian market. The S&P/ASX 200 Health Care index and the benchmark S&P/ASX 200 index had both posted more modest single-session moves in recent sessions, underscoring that Mesoblast’s swings — in both directions — have been driven primarily by company-specific developments rather than broader sector or market sentiment.

The company’s next scheduled earnings report is expected in early September, when investors will be watching for updated guidance on Ryoncil sales trajectory, further detail on cash burn following the company’s recent debt refinancing, and any updates on the progress of its heart failure and back pain clinical programs.

Market commentators have cautioned that daily price swings of the magnitude Mesoblast has experienced over the past week — first a steep decline tied to a technical filing, followed by a substantial rebound — do not necessarily reflect a change in the company’s underlying commercial or clinical trajectory. Analysts covering the stock have previously noted that single-day price movements, particularly those linked to substantial holder notices explained by securities-lending mechanics rather than active buying or selling decisions, can create outsized short-term volatility without corresponding changes to a company’s fundamentals.

For now, Mesoblast shares remain among the more actively watched names on the ASX health care boards, with investors weighing the company’s improving underlying revenue growth and narrowing losses against a stock price that has shown a pattern of sharp, sometimes unexplained single-session moves throughout 2026. Trading volumes on Monday were consistent with recent sessions, suggesting the rebound reflected a broad-based recovery in buying interest rather than a single large, concentrated trade.

U.S. manufacturing is booming thanks to AI

data centers, and industrial companies such as Caterpillar

CAT

0.23%

increase; up pointing triangle, Eaton ETN -0.40%

decrease; down pointing triangle and Ford Motor F 3.46%increase; up pointing triangle are pivoting their business to seize the moment.

Manufacturing last month rose to its highest level since 2022, when the recovery from the Covid-19 pandemic fueled a factory-production frenzy. Today, data centers and a handful of AI-related industries are driving the manufacturing sector, and companies in that sector are investing hundreds of millions of dollars to expand their lineups to capitalize on the opportunity.

The much-awaited Lalithaa Jewellery Mart IPO opened for subscription on August 17, 2026, giving investors a three-day window to bid for shares of the Chennai-based jewellery retailer. With the issue already commanding a 15% premium in the grey market, investor interest is expected to remain strong.

Lalithaa Jewellery Mart has fixed the IPO price band at Rs 190–Rs 201 per share. The Rs 1,700-crore issue comprises a fresh issue of Rs 1,200 crore and an offer for sale (OFS) of Rs 500 crore by promoter and founder Kiran Kumar Jain.

The IPO will open on August 17 and close on August 19, 2026. The share allotment is expected to be finalised on August 20, while the company’s shares are likely to make their debut on the NSE and BSE on August 24, subject to applicable timelines.

Anand Rathi Investment Banking and Equirus are the book-running lead managers for the issue, while MUFG has been appointed as the registrar.

Analysts believe the Lalithaa Jewellery Mart IPO could offer a potential long-term investment opportunity, given the company’s strong FY26 financial performance, attractive valuation and expansion plans

Lalithaa Jewellery secures Rs 508 crore from anchor investors

Lalithaa Jewellery Mart Limited has raised Rs 508.20 crore from anchor investors ahead of its IPO. The company informed the stock exchanges that it allotted 2,52,83,581 equity shares at Rs 201 apiece to 22 anchor investors. The anchor book saw participation from several prominent institutions, including Goldman Sachs Bank Europe SE – ODI, Morgan Stanley India Investment Fund Inc., Morgan Stanley Investment Funds Indian Equity Fund, Kotak Mahindra Life Insurance Company Limited, Bajaj Life Insurance Limited, Greater India Portfolio and Sanshi Fund-I.

Lalithaa Jewellery Mart IPO Lot Size and Valuation

At the upper end of the price band, investors will need to pay Rs 14,874 for one lot of 74 shares. Bids can be placed in multiples of 74 shares thereafter.Of the net issue, excluding the employee portion, 50% has been reserved for qualified institutional buyers (QIBs). Up to 60% of the QIB allocation can be made available to anchor investors.

Retail investors have been allocated 35%, while 15% has been reserved for non-institutional investors.

One of the key attractions of the issue is its valuation. At the upper end of the price band, Lalithaa Jewellery Mart’s price-to-earnings (P/E) ratio based on diluted FY26 EPS stands at 9.95 times. At the lower end, the P/E works out to 9.41 times.

That compares favourably with the average industry peer-group P/E of 29.69 times for FY26, suggesting that the IPO is being offered at a relatively modest valuation compared with the broader industry. The floor price represents 38 times the face value, while the cap price represents 40.20 times the face value.

Lalithaa Jewellery IPO use of proceeds

Lalithaa Jewellery plans to deploy the net proceeds from its IPO primarily towards an ambitious retail expansion, earmarking funds to set up 10 new stores. Of the total Rs 1,033.23 crore proposed to be utilised, Rs 34.55 crore will go towards capital expenditure, including store fit-outs, furniture and fixtures, equipment, and IT hardware and software. The bulk of the proceeds—Rs 998.68 crore—will be invested in inventory required to launch and stock these new outlets.

The IPO proceeds therefore underline Lalithaa Jewellery’s strategy of strengthening its physical retail footprint and building inventory capacity to support future growth. While the lion’s share of the funds is directed towards inventory for the new stores, the remaining amount will be used for general corporate purposes, giving the company some flexibility to meet broader business requirements as it expands.

Strong FY26 financial performance

Lalithaa Jewellery Mart enters the IPO market after reporting a sharp improvement in its financial performance. The company’s total income jumped 48% year-on-year, rising from Rs 16,907.88 crore in FY25 to Rs 25,039.80 crore in FY26. Profitability saw an even stronger acceleration. Profit after tax (PAT) surged 177%, from Rs 364.73 crore in FY25 to Rs 1,009.82 crore in FY26.

About Lalithaa Jewellery Mart

The retailer sells gold, silver and diamond jewellery under the Lalithaa brand, with products tailored to regional preferences across southern India. It operates 61 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and the Union Territory of Puducherry.

Tier II and Tier III cities account for 45 of its stores and contributed 60.25% of the company’s revenue in FY26.

Should you subscribe to the Lalithaa Jewellery Mart IPO?

According to brokerage firm Master Capital Services, India’s gold jewellery retail industry was valued at Rs 10,619 billion in Fiscal 2026, clocking an impressive ~20% CAGR between Fiscal 2022 and Fiscal 2026. However, with gold prices remaining elevated and volatile, growth is expected to moderate to 3–5% CAGR through Fiscal 2030.

The industry is also witnessing a clear shift towards organised retail. Regulatory tailwinds such as GST, hallmarking and HUID, coupled with evolving consumer preferences, are expected to accelerate the transition from unorganised to organised jewellery retail. Organised chains could capture 45–50% of the market by Fiscal 2030, while online jewellery is projected to contribute 9–11% of industry revenues.

South India continues to be the jewel in India’s jewellery consumption crown, accounting for nearly 40% of total demand. The regional market stood at approximately Rs 5,026 billion in Fiscal 2026 and is expected to grow at 6–7% CAGR, reaching Rs 6,200–6,600 billion by Fiscal 2030. Andhra Pradesh and Telangana are likely to emerge as key growth markets, gradually gaining share.

Against this backdrop, Lalithaa Jewellery Mart Limited appears well placed to capitalise on the next phase of organised jewellery retail. Its strong South India footprint, particularly across Tier II and Tier III cities, gives it access to a large and evolving customer base. The company’s 61-store network, in-house manufacturing capabilities, large-format outlets, wide jewellery assortment and customer-focused schemes provide multiple levers for growth.

With favourable industry dynamics, rising organised retail penetration and a strong regional presence, the Lalithaa Jewellery Mart IPO could offer investors an interesting long-term opportunity to participate in India’s evolving jewellery consumption story.

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