THE BIG IDEA | PAGE 18 COMPANIES | PAGE 4 Scapia:Travel dividend — from idea to impact BACK PAGE | PAGE 18 Dark patterns trigger govt action on e-comm firms Virat breaks Sachin’s world record with Ranchi ton NEW DELHI, MONDAY, DECEMBER 1, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L1 NO. 233, 18 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E CHINAFACTORYSLUMP HITS RECORD STRETCH PAGE 11 OPINION PAGE 8 RATE CUT POSSIBLE AMID HIGH REAL RATES, STABLE INFLATION, WRITES UPASNA BHARDWAJ 50% 60% Cigars, cheroots, cigarillos Non-filter cigarettes ≤65 mm KULDEEP SINGH New Delhi, November 30 THE GOVERNMENT PROPOSES to increase the central excise dutyontobaccoanditsproducts with sharper tax hikes for cigarettes containing tobacco and smokingmixturesforpipesand cigarettes. The move will ensure that oncetheGoodsandServicesTax compensation cess outlives its utility and is scrapped in a month ortwo,the tax incidence on these products remains the same, and that revenues don’t fall.To this end,the ministry of finance will introduce the Central Excise (Amendment) Bill 2025 in the Lok Sabha on Monday,sourcessaid. 12.5% or 25% or ₹4,006 per ₹5,000 per thousand thousand ₹200 per thousand Funding trends ($ bn) ₹2,700 per thousand Separately,thegovernment willalsotablethe“HealthSecurity se National Security Cess Bill, 2025, in the Lok Sabha on Monday to levy a cess on the machines installed or processes undertaken bysome specified goods.These include pan masala manufactured or produced,whethermanuallyor through hybrid processes.The twin objectives of the cess are to enable targeted utilisation for public health as well as national security. AsperthenewExciseBill,the governmenthasproposedarate of `11,000 per thousand sticks forfiltercigarettesabove75mm lengthfromtheexisting`735. Continued on Page 11 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2024 2025 Most active VCs Top deals ($ mn) Square Yards 35.0 AgniKul 17.0 TractorJunction 17.0 Wealthy Pidge Agraga 12.0 ■ pi Ventures 2 rounds: immunitoAI, LightSpeed Photonics Only tech companies in India are considered 25 bps cut IDFC First Pause CareEdge Ratings 25 bps cut ICRA Pause Crisil 25 bps cut L&T Finance Pause HDFC Bank 25 bps cut ECONOMISTS ARE SHARPLY divided on whether the Monetary Policy Committee (MPC), slated to meet on December 5, will decide to lower the policy repo rate from the current 5.5%. Of the 15 economists polled, eight are not expecting a cut while the others anticipate a reduction of 25 basis points (bps). Interestingly, two economists changed their views from a cut to a pause after the GDP growth for the September quarter came in at a strongerthan-expected 8.2%. Economists leaning towards a pause cite strong GDP data,external pressures, and the need to preserve policy space. Those calling for a cut argue that subdued inflation, running below the Reserve Bank of India’s forecasts, and slowing nominal growth justify a cut. RBL Bank Pause Kotak Bank 25 bps cut State Bank of India Pause Union Bank 25 bps cut Pause The RBI’s communication on the stance and liquidity management is keenly awaited as is the central bank’s communication on Open Market Operations. MadanSabnavis,chiefeconomistatBankofBaroda,seesno reasonforaratecut.“Weneedto preserve a 1.5% real rate futuristically.If inflation next year is above 4%, which it will be, we can'tloweritnowandincreaseit later. Besides, 25 bps will make no difference to investment decisions,” Sabnavis opined. Gaura Sengupta, chief economist at IDFC First Bank, cited the limited policy space as reason for the pause. “It’s betterto utilise itwhen downside risks to growth materialise,”Sengupta added. She pointed to high-frequency indicators showing a broad-based recovery in rural demand in Q2FY26 and urban consumption picking up in Q3FY26 following GST cuts. Rajni Thakur, chief economist at L&T Finance, also expectsapauselargelybecause the expected overshoot in growth and undershoot on inflation,shefeels,don’tjustify a rate cut. “There is a small probability of a rate cut if aspirational growth levels are invoked.Thestanceisexpected to stay neutral. It’s prudent to keep options open,”she said. Continued on Page 11 Allcarriersupdatesoftware ontheirA320-familyplanes UNDER CONTROL ■ 323 A320-family aircraft belonging to IndiGo, Air India, Air India Express have been upgraded ■ The DGCAordered upgrades afterAirbus cautioned that solar radiation may spoil data ■ It followed EASA emergency airworthiness directive issued on Friday while assessing an incident involving an A320-family aircraft, on Friday cautioned that intense solar radiation may corrupt data critical to the functioning of flight controls. In a statement onXon Sunday, Air India Express said it hadcompletedtheprecautionary safety checks across its A320 fleet within the required timelines, ensuring minimal disruption to operations. IndiGo stated that it had finished the mandatoryAirbus systemenhancementacrossits A320-familyfleet,with all 200 aircraft now fully updated and compliant.“With the completion of this technical requirement,every aircraft now operates with the latest approved configuration, and we continue to monitor performance closely as part of our routine safetyprocedures,”Indigo said. The DGCA’s directive followed the European UnionAviation Safety Agency’s (EASA) emergencyairworthinessdirective issued on Friday, which temporarily grounded up to 6,000 Airbus A320 aircraft worldwide until critical flightcontrol fixes are completed. In India,thedirectivecovered338 aircraft,allbelongingtoIndiGo, AirIndia,andAirIndia Express. Continued on Page 11 Source: Traxcn OlaElectriccrasherodes Bhavish’s`5K-crwealth CREDIT TO THE agriculture sector by commercial banks and regional rural banks is projected to cross `32.5 lakh crore in FY26, setting a new record, driven by increased formalisation of the rural credit system, expanding agricultural activities, and rising financing demand from the farm sector, Nabard said. ■ PAGE 2 ■ Artha Venture Fund 2 rounds: AgniKul, Tribe 13.5 Canara Bank YES Bank View Farm credit to touch `32.5 lakh cr in FY26 Ventures 13.5 3evi ■ Inflection Point 2 rounds: Hoopr, Batterypool 14.5 Pause the software upgrades on their active Airbus A320 family aircrafttoaddresspotentialissues relatedtosolarradiationaffecting flight-control data, the DirectorateGeneralofCivilAviation (DGCA) said on Sunday. In a statement,the regulator said that a total of 323 operational A320-family aircraft belonging to IndiGo,Air India, and Air India Express have been upgraded. “IndiGo has completed modifications on all 200 of its 200 aircraft. Air India has upgraded 100 of its 113 aircraft,withfourcurrentlyinbase maintenance and nine not requiring any modification. Air India Express has completed work on 23 of its 25 aircraft,while the remaining two are undermaintenance as they are scheduled to be redelivered to lessors,”DGCA said. The DGCA on Saturday ordered upgrades afterAirbus, 0.40 Tobacco refuse Barclays ALL AIRLINES HAVE completed 1.14 70% 0.65 64% 0.65 New Rate Unmanufactured tobacco 25 bps cut NITIN KUMAR New Delhi, November 30 THE FUNDINGWINTER for tech startups doesn’t quite seem to be overwith investments in November slowing sharply to their lowest levels in the past 12 months. With this, 2025 is likely to close with investments smaller than in 2024,when $11.1 billionwas invested, according to Tracxn data. Investors remain cautious and focused on profitability, compelling firms to cut costs and reduce cash burn.While more companies are going public, several are yet to provide investorswith an exit. 0.67 Existing rate Axis Bank THE STEEP decline in Ola Electric’s shares has erased more than half of founder Bhavish Aggarwal’s public-market net worth, wiping out over `5,000 crore in value just a year after the company’s blockbuster IPO. Aggarwal’s 1.32 billion shares are now valued at `5,428 crore, based on Friday’s NSE closing price of `41.38. ■ PAGE 4 Challenger brands are able to price their products below the generally accepted price points SmallbrandsscorebigasFMCGgiantspaduptotakethemon VIVEAT SUSAN PINTO Mumbai, November 30 SMALL CONSUMER BRANDS continue to grow faster than their larger peers in India's fast-moving consumer goods (FMCG) market. Aided by strong rural demand and easing inflation, small FMCG companies, with an annual turnover of under `100 crore, reported their highest value and volume growth forthe July-September period at 20.4% and 12.5% each, according to NielsenIQ. That’s the best in five quarters. Mid-sized FMCG players, with a turnover of between `100-1,000 crore too have reported strong double-digit value growth for four straight quarters, with volume growth between 6.8% and 9.7% during the period. In contrast, FMCG leaders, defined as those with an annual topline exceeding `5,000 crore, grew 8.8% and 6.2% in value and volume terms during the July-September period. While September quarter volume growth for FMCG giants was the highest in five quarters as urban markets revived,value growth was lower than in the June quarter (10.1%) due to GST-led price cuts and transition issues. EvenasFMCGgiantslookto abettersecondhalfofFY26,on improved demand conditions and a stronger economic outlook, NielsenIQ believes small brands may not give up their SMALL VERSUS BIG: HOW THEY COMPARE Small players FMCG giants (figures in %) (Annual topline under ` 100 cr) Price growth Value growth Volume growth (in %) (Annual topline above `5,000 cr) Price growth Value growth Volume growth 4.5 11.9 16 20 20.4 3.4 7 Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep 2024 2025 6.8 10.1 8.8 6.2 2.6 MUMBAI PROPERTYMARKET HITS RECORD NOV PAGE 4 TAKE YOUR LAST PUFF Pause 3.2 6.9 » INSIDE « Steep excise hike Acold November on tobacco items on the cards View Bank of Baroda 1.9 4.9 ■ PAGE 4 Continued on Page 11 Bank/Organisation 4.2 2.8 HOME AND FURNISHINGS company Wakefit Innovations is gearing up to launch its IPO on December 8 to raise around `1,400 crore. The firm's maiden public offering is a combination of a fresh issue of shares aggregating up to `377.1 crore and an offer-for-sale by the selling shareholders. aroundtreatmentoffractional rights,and applicabilityacross classes of companies. It can unlockwiderretail capital participation and foster a more inclusive equity market structure," said Kalpit Khandelwal, partner at Aekom Legal. Individual investors, through direct holdings and via mutual funds,own nearlya fifth of the market now, the highest level in over two decades. Retail investors also account for more than half of daily trades on both the NSE and BSE. 0.4 Wakefit to float IPO on Dec 8; eyes `1,400 cr appointed by the issuing company's board, holds these shares and sells them at an appropriatetimeinthemarket. The proceeds from such sales are then distributed in proportion of the entitlement.“Since fractional shares are already being created,the government felt that it's appropriate to legalise them,"said the official. Experts said that the move will lower entry barriers for retail investors and bring India's company-law framework closer to that of mature markets. “From a legal standpoint, clarity will be key, particularly 3 THE ELECTION Commission on Sunday extended the deadline for electors to submit enumeration forms in the ongoing Special Intensive Revision (SIR) in nine states and three Union Territories from December 4 to December 11. ■ GIFT City already permits the trading of fractional shares through the NSE IFSC exchange 12.5 7.9 EC extends SIR form submission deadline to Dec 11 entry barriers for retail investors 0.96 To woo Gen Z consumers, brands will need to lead with experience and communitydriven strategies ■ The move will lower 0.72 Marketing to the always-on generation shares are already being created, govt felt that it's appropriate to legalise them domestic brokers can only act as agents of clients and not the principal,they can't offer fractional investing. The Bill will propose provisions in the Companies Act to enable holding and fresh issuances of fractional shares in certain classes of companies.Forlistedcompanies,similar modifications are likely to be made in consultation with the markets regulator Securities and Exchange Board of India (Sebi),an official told FE. Currently, even when fractional shares are created, the shareholdersdon'tusuallyhold them. Instead, a trustee POLL ON MPC MEET CHRISTINA TITUS, KSHIPRA PETKAR & MAHESH NAYAK Mumbai, November 30 ■ Since fractional 12.3 7.7 ■ BRANDWAGON, P9 fractional shares is not permitted under the Companies Act but some companies do issue such shares 0.86 FE S P E C I A L ■ Holding 1.96 OPEC+ is expected to maintain its current oil production levels at meetings scheduled for Sunday, as the alliance weighs the risks of an emerging supply glut against ongoing geopolitical uncertainty, four OPEC+ sources said. The move reflects concerns that ramping up supply may deepen the price slump. Agencies out of 15 expect pause,rest see 25 bps rate cut ■ Automatic recognition to non-monetary employee benefit schemes on the cards 11.2 4.8 OPEC+ MAY HOLD OIL OUTPUT POLICY STEADY THE GOVERNMENTISconsidering a host of steps to boost participationofretailinvestors inequitymarketsandenhance the use of employee stock options (ESOPs). According to official sources, the Corporate Laws (Amendments) Bill, to be tabled in Parliament in the Winter Session, will seek to amend the Companies Act to give legal sanction to transfer, issuance and holding of “fractionalshares.”Alsoonthecards is automatic recognition to non-monetary employee benefit schemes like restricted stock units (RSUs) and stock appreciation rights (SARs). Fractional shares are shares splitintosmallerunits.Theycan make high-value stocks accessibletosmallinvestors,without leaving any uninvested cash. Such shares are also often an offshootofstocksplits,issuance of bonus shares and mergers and acquisitions (M&As). At present, holding of fractional shares is not expressly permitted under the Companies Act but some companies do issue such shares. As per brokerage firm Zerodha, since ● 8 economists INCLUSIVE MARKET 0.64 INTERNATIONAL PAGE 11 MANU KAUSHIK New Delhi, November 30 0.95 The Centre may take up about a dozen bills in the Winter session of Parliament, starting on Monday, including key economic Bills on insurance reforms and fast-tracking of the insolvency resolution process. fe Bureau Splitverdictonrateaction Big equity boost coming for retail investors, employees 6.3 5.6 GOVTTO PUSH ABOUT 12 BILLS IN PARLIAMENT 0.95 PAGE 2 4.6 ECONOMY FRACTIONALSHARESTO HAVE LEGALSTATUS,ESOPsTOWIDEN -0.1 IN THE NEWS Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep 2024 2025 Source: NielsenIQ, Value growth= Volume growth+price growth gains anytime soon.A key reason for this is not just the propensity of small players to undercut larger brands, but alsotheirabilitytoaddresslocal needs,theresearchagencysaid. This has ensured stickiness by consumers for small brands, even as FMCG giants concentrateonimprovingdirectreach in both urban and rural areas, increase brand-building, promotions and push hard on innovation to excite consumers. The second half is likely to see these efforts gain momentum as large players plough back savings made on gross margins to fight competition,experts said. Mohit Malhotra, CEO, Dabur India,pointed out that in food and beverages, for instance, challenger brands are able to price their products below the generally accepted price points.“If it is `20, small brands may price at `10 or if it is `10,they may price at `5. “What helps them undercut is also their micro-focus. This micro-focus brings with it a deep understanding of the local consumer and trade," Malhotra explained. Tarun Arora, CEO and whole-time director, Zydus New Delhi Wellness, said that the consumer today is also far more experimental than he or she was earlier, which has helped small brands and D2C brands proliferate. "Consumer loyalty today is shifting and small brands are capitalising on this trend.The agility they bring to the table because they operate within a smaller radius or target specific product segments works to their advantage,"Arora told FE. GST tailwinds, Arora says, will benefit both small and large branded players, implying that large brands mayneed to look beyond price if they have to deal with competition from small brands. Continued on Page 11