Best of the Week: From refineries to shopping carts, India is back on alert

Dear reader,

Just when India thought the worst of the West Asia war was behind it, fresh US-Iran tensions have thrown a spanner in the works. Donald Trump's decision to walk away from the Iran peace understanding and end a sanctions waiver has cast fresh doubt over India's plans to resume Iranian crude imports, even as refiners insist supplies are secure until August. The bigger worry is what comes next. A prolonged disruption around the Strait of Hormuz could push up India's oil import bill, fuel inflation and pressure economic growth.

The ripple effects are already showing up across Dalal Street. State-run oil companies and FMCG stocks fell sharply as investors priced in the risk of costlier crude. Consumer companies, which were counting on a demand recovery this year, now face the prospect of rising packaging, freight and raw material costs. While executives say it is too early to redraw business plans, analysts warn that any sustained spike in oil prices could force companies to rethink pricing strategies and squeeze consumer spending.

For now, companies are betting that the disruption proves temporary. Consumer firms are keeping a closer eye on the monsoon than the Strait of Hormuz, hoping rural demand remains resilient enough to offset higher costs. Retailers and exporters, meanwhile, are preparing contingency plans as shipping routes and freight costs come back into focus. Read more

Also read:

US-Iran tensions rattle India's consumer firms as fears of higher oil prices return

India’s MSMEs brace for impact as US-Iran ceasefire crumbles

On to the best of Mint’s journalism from this week:

The village that took on an airport

Ekanapuram, a centuries-old village near Chennai, has become the face of a larger debate over development versus displacement. Residents protested for more than three years against the proposed Parandur airport project, arguing it would erase their village, destroy fertile farmland and damage vital water bodies. Their campaign gained momentum after actor-turned-politician Vijay backed the cause and later signalled the project could be relocated. But Tamil Nadu still urgently needs a second airport to support growth as Chennai's existing airport nears capacity. The standoff has become a test of whether India can balance infrastructure ambitions with environmental concerns and local livelihoods.

AI fuels the IT deal rush

Indian IT companies are buying, not just building, as AI reshapes the industry's business model. Recent deals such as Persistent Systems' $1.4 billion acquisition of Nagarro and Coforge's $2.35 billion purchase of Encora reflect a race to acquire AI capabilities, engineering talent and global scale. Large IT firms such as TCS and Infosys are making smaller, targeted acquisitions, while mid-sized players are betting on bigger deals to drive growth. But the strategy comes with risks, including steep valuations and integration challenges. As AI reduces reliance on mass hiring, acquisitions are becoming a shortcut to specialized talent rather than bigger workforces.

El Niño may leave India short on wind power

India's power sector could face a double blow this summer. A strengthening El Niño is expected to weaken monsoon winds, reducing wind power generation just as electricity demand is set to hit a record high. With hydropower already under pressure from poor rainfall, experts warn coal-fired plants may have to bridge the gap. Wind accounts for more than a tenth of India's installed power capacity, but the sector is also battling land, grid and project delays. While some experts caution it's too early to predict the exact impact, the combination of weaker renewables and surging demand is emerging as a key risk for the country's power supply.

Honasa beyond Mamaearth

Honasa Consumer is trying to become much more than the company behind Mamaearth. After fixing its offline distribution network, the beauty and personal care company is shifting focus to building a portfolio of brands that can sustain long-term growth. Mamaearth is facing tougher competition as consumers move from “natural” products to science-backed skincare, making The Derma Co. its biggest growth engine. Honasa is also expanding into men's grooming, oral care and nutraceuticals through acquisitions. The strategy aims to reduce dependence on a single brand and double revenue by FY31. The challenge now is proving it can repeatedly build winning brands in an increasingly crowded beauty market.

TCS's Q1 was flat, forgettable and exactly what IT feared

India's largest IT company delivered exactly what everyone feared: a flat quarter. TCS posted $7.62 billion in revenue, up just 0.04% from the previous quarter. Profits fell 1.3%. Margins slipped 130 basis points. Order book shrank from $12 billion to $9.5 billion. The CEO's message was equally sobering. “I don't know when this will change,” said K. Krithivasan, citing the West Asia war and clients deferring projects. Accenture's Julie Sweet also virtually said the same thing three weeks ago. The one bright spot was AI revenue, which hit an annualized $2.6 billion, up from $2.3 billion in April. But with Infosys, HCLTech, and Wipro still to report, and TCS shares already down 36% this year, the sector is bracing for more of the same.

Also read:

TCS shifts to outcome-based AI deals, phases savings for clients

TCS’ sparse Q1 positives won't unlock re-rating triggers

Getting an IPO mandate can now take a year

Something has shifted in India's IPO market. Investment bankers pitching for mandates are waiting significantly longer. What once took six to eight months now stretches to twelve. And some pitches have been running for eight to nine months without converting at all. Promoters have turned cautious. Volatile markets and unpredictable listing-day performance have made them pickier, demanding bankers with specific sector experience rather than just big names. Generic pitches aren't cutting it anymore. But companies are using the extra time productively, strengthening governance, tightening internal controls, and genuinely preparing for life as a listed entity. Those that do, say experts, are seeing better listing outcomes. The pipeline is being built. SBI Funds, Zepto, and Manipal Health are coming. The mandates are being won, just more slowly.

A political decision just took eggs off Kolkata's school menu

West Bengal's newly elected BJP government has handed Kolkata's school meal programme to Iskcon, no eggs, no fish, no meat, no onion, no garlic. In a state where fish and eggs are practically a cultural identity, that's a radical shift. The nutrition stakes are real. A boiled egg costs ₹10 and delivers 6.5gm of highly bioavailable protein. Paneer gives more protein per gram but at five times the cost. Soy is cheaper but absorbed less efficiently. Meanwhile, 32% of Indian children under five remain underweight, and 85% of infants don't receive an adequate diet. Southern states serving five to six eggs weekly consistently outperform others in child nutrition. For most children in government schools, the mid-day meal isn't supplementary—it's the meal.

Inside Tata's plan to power its own EVs with its own batteries

Agratas, the Tata group's two-year-old EV battery venture, has signed a $530 million, seven-year supply agreement with Jaguar Land Rover, its first major commercial contract. The deal starts this fiscal year, with roughly $42 million in revenue expected in FY27, covering NMC battery cells initially, before expanding to LFP chemistry. It's a classic Tata group playbook. Build a new business, anchor it with captive demand, then scale externally. Agratas is constructing a 20GWh plant in Gujarat and a 40GWh plant in the UK, both timed to feed JLR's upcoming EV launches, including the Range Rover Electric. The deal also matters strategically. India's automakers are actively reducing their dependence on China after Beijing restricted rare-earth magnet exports in 2025.

Adani's comeback is moving at full speed

Two months after settling its US legal battles, the Adani Group has pulled off one of India's biggest capital-raising sprints, nearly $10 billion in commitments in a single week. That's equity raises, stake sales, and strategic partnerships combined. The headline deals: a ₹15,000 crore QIP by Adani Enterprises, India's largest outside financial institutions, backed by BlackRock, Vanguard, Goldman Sachs and top Indian mutual funds; a $539 million stake sale in Vizhinjam port to MSC; and a $11.5 billion aluminium joint venture with the UAE's IHC. This is the opening chapter of Gautam Adani's $100 billion investment plan through 2030. The group needs $30 billion in equity, and it's already moving fast. With gross debt at $39.1 billion, execution discipline matters as much as fundraising firepower.