NewsletterMahindra’s super May, Udaan’s fundraise & IRCON’s rail deal
🗓 Morning, folks!
Markets shook off a sluggish start to stage a sharp intraday recovery, with both Sensex and Nifty ending flat.
Metal stocks, though, stayed under pressure after Trump threatened to double US tariffs on steel and aluminium to 50%, reviving trade war jitters.
Spotlight: Construction and professional services now contribute more than ever to India’s growth engine.
India’s GDP grew 7.4% in Q4FY25, hitting a four-quarter high thanks largely to a surge in investment demand and strong tax collections. But the real story lies in the sectoral shifts.
Construction’s share in GDP hit a 12-year high of 8.4%, driven by 9.4% growth in FY25.
Professional services, think finance, law, tech, also climbed to a record 21.7% share, the highest since FY12.
With rural demand steady and government capex pushing capital formation, India’s economy is increasingly leaning on real assets and white-collar engines.
Overall an easy news day today, lets’s get through it and leave you to better things.
1 Big thing: India opens doors for global EVs 🚗
India has officially notified the new EV car manufacturing scheme, laying out the fine print to attract global players.
The deets: the policy, now formally titled the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), was first cleared in March and targets high-end EV makers like Tesla, Mercedes-Benz, and Hyundai.
To qualify, companies must invest at least ₹4,150 crore in India. In return, they can import up to 8,000 fully-built EVs per year priced above $35,000 at a slashed 15% customs duty for 5 years.
Companies must also submit a bank guarantee equal to either the minimum investment or the total duty saved, whichever is higher as a safeguard.
The how: automakers will need to localise at least 25% components in 3 years, and 50% in 5 years, benchmarked against the PLI Auto scheme. The benefits under the scheme are capped at ₹6,484 crore, or the committed investment, whichever is lower.
Who can apply: only serious contenders. Eligible companies must show global revenue of at least ₹10,000 crore and fixed assets worth ₹3,000 crore. Land costs are excluded, and EV charging infra can’t exceed 5% of the capex.
Zoom out: Tesla’s still quiet, but Mercedes, Kia, VW, and others have already expressed interest. India isn’t just opening its doors for EV sales—it wants global giants to make in India. And with this, it’s raising the bar for who gets to play.
2. KKR pumps $600M into Manipal 💰
KKR invested $600 million in Manipal Group via its private credit and insurance arms.
The deets: it’s one of India’s largest healthcare and education empires, with 29 hospitals and 50+ academic institutions, including Manipal Hospitals and the renowned Manipal Academy of Higher Education. It has been scaling rapidly with past acquisitions like Columbia Asia and Vikram Hospital.
Zoom out: this deal highlights how global investment giants like KKR are turning to private credit to back India’s healthcare bets. KKR has previously backed Max Healthcare, Reliance Retail, and Avendus Capital.
Why it matters: private credit is booming as an alternative to traditional bank lending, faster, flexible, and increasingly attractive for large Indian businesses. Healthcare, with its steady cash flows and long-term growth story, is a natural magnet.
Manipal gets scale capital without giving up equity. KKR gets solid exposure to India’s healthcare engine. Win-win.
While we are on fundraises,
B2B e-commerce firm Udaan has raised $114 million in an extended Series G round led by M&G Investments and Lightspeed Venture Partners.
The why: the capital will be used to expand Udaan’s reach in fast-moving consumer goods, and private label staples. It will also go toward strengthening its balance sheet as the company eyes an IPO in late 2025 or early 2026.
3. Mahindra rides high on SUVs and tractors 🚜
M&M shares gained nearly 2% after strong May sales numbers, driven by robust SUV and tractor demand.
The deets: Mahindra reported a 17% YoY rise in total vehicle sales for May 2025, selling 84,110 units across domestic and export markets.
SUVs led the charge, with domestic sales jumping 21% YoY to over 52,000 units. Including exports, total SUV sales stood at 54,819 units.
Commercial vehicles were a mixed bag, light CVs rose 14%, but the sub-2 tonne category fell 18%.
Tractor sales were solid, with domestic sales climbing 10% YoY to 38,914 units, lifted by early monsoons and upbeat rural sentiment. Including exports, total tractor sales hit 40,643 units, up from 37,109 last year.
Zoom out: with kharif sowing season approaching, Mahindra expects rural demand to stay strong, supported by higher MSPs, full reservoirs, and continued policy tailwinds. Meanwhile, SUVs remain a hot favourite as Indian buyers gravitate toward bigger, feature-packed rides.
4. Stocks that kept us interested 🚀
1. IRCON’s rail bridge project across Ganga 🚧
IRCON bagged a ₹1,068 crore EPC contract from Indian Railways for construction of a new broad-gauge rail bridge across the Ganga river, featuring a double-line track substructure and single-line track superstructure, between Bikramshila and Katareah.
- The upcoming rail bridge will essentially connect the south and north banks of the Ganga in Bhagalpur, enhancing rail access across the river in this key region of Bihar.
Why it matters: the bridge will cut travel time boosting regional freight movement across the Ganga. Bhagalpur is a major hub in Bihar’s silk and agriculture economy, and better rail links here are crucial for supply chain efficiency.
This project also feeds into Indian Railways’ ₹2.5 lakh crore capital outlay for FY25, where bridge and connectivity upgrades are a core focus.
What else are we snackin’ 🍿
⚡️ e-race tightens: TVS led May’s E2W sales with 24.5K units, up 107% YoY, while Bajaj zipped in close with 21.7K units. Ola dropped 51% but still held 18% share.
📲 Digital boom: UPI transactions hit an all-time high in May with 18.7 billion payments worth ₹25.2 trillion.
🌍 Sky squad: IndiGo teamed up with Delta, Air France-KLM & Virgin Atlantic to boost India–Europe–US air links amid rising global travel demand.
🚆 MMT forecast: MakeMyTrip launched a Seat Availability Forecast tool to help users predict when train seats might sell out.
That’s a wrap! Don’t let the weekday blues get to you.
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