ECONOMY | PAGE 3 THE BIG IDEA | PAGE 19 Rentomojo: The business of opposite things INTERNATIONAL | PAGE 11 Operations resume at Delhi airport'sTerminal 2 Russia tests Burevestnik cruise missile BENGALURU, MONDAY, OCTOBER 27, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XXXVIII 162, 26 PAGES, `12 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 FESTIVAL OF SAVINGS, SEASON OF JOY GST relief for beneficiaries of PM Awas Yojana (Urban) Infra status for aircraft making on the cards THE GOVERNMENT IS considering granting “infrastructure status” for aircraft manufacturing, in a bid to create a domestic production base for the sector, which is heavily import-dependent, reports Prasanta Sahu. ■ PAGE 2 Goyal's Brussels visit to help in FTA talks conclusion TO PROVIDE POLITICAL impetus and strategic direction to the negotiations on India-EU for the FTA, commerce and industry minister Piyush Goyal would be in Brussels from Monday for a series of meetings, reports FE Bureau. ■ PAGE 2 M&A financing norms empower banks, with riders RBI'S DRAFT GUIDELINES permitting banks to offer acquisition financing could be a game-changer, believe some PSBs, as they gear up to leverage international presence to actively participate in large-ticket M&A deals, reports Mahesh Nayak. ■ PAGE 6 Lenskart IPO to open on Oct 31, listing on Nov 10 URVI MALVANIA Mumbai, October 26 OVERSEAS DEALS DELAYED THE CONTINUING SHUTDOWN of the US government is having a ripple effect on corporate activity for Indian companies with American exposure, as curtailed operations at agencies delay clearances and filings required for cross-border actions. Infosys and Hindalco are among those now facing procedural holdups as the Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS) are operating with limited staff. Infosys,which announced an `18,000-crore share buyback in early September, has yet to declare a record date for the exercise, though both shareholder approval and the SEC’s exemptive relief were obtained by mid-month. The board cleared the buy- ■ Hindalco’s `18,000- $125-mn crore buyback yet to declare record date AluChem acquisition also delayed by CFIUS shutdown ■ Market impact limited, procedural timelines affected but transactions remain valid back on September 11, and the SEC granted procedural exemptions the following day. According to industry experts, the ongoing shutdown will not derail the process but could stretch timelines. “The US government shutdown will not derail Infosys’ buyback, but it may slow the process,”Phil Fersht, New company registrations % chg, y-o-y Sept 2021 16,570 -0.4 Sept 2022 13,542 -18.3 Sept 2023 15,603 15.2 Sept 2024 11,110 -28.8 Sept 2025 23,113 108.0 Source: Ministry of Corporate Affairs ter-than-expected GDP growth in the first quarter of the current fiscal, a revival of consumption,especiallyin the rural sector,and vote of confidence on the Indian economy by various global rating agencies, including S&P, have boosted investor confidence, and triggered incorporation of more companies. Sources said a significant section of the newlyregistered companies involved investmentsfromoverseasinvestors, in a sign that the current slowdown in foreign direct investments might get reversed over the medium term. Continued on Page 11 founder and chief executive of global tech advisory HFS Research, told FE. “The company’s filings with the SEC are procedural, not approval-based, so any delay will be about timing rather than regulatory risk. However, this includes tender-offer documentation and clarifications needed for American Depositary Receipt (ADR) participation, extending timelines for companies such as Infosys that need coordination with the SEC before announcing investorfacing steps like record dates. “The real governance lies under Sebi, and that process remains unaffected,” he added. Continued on Page 3 VCstightenfilters onAIinvestments S SHANTHI Bengaluru, October 26 ARTIFICIAL INTELLIGENCE (AI) STARTUPS may be the brightest stars in the venture capital universe these days, but the glow is beginning to blind some investors. Even as early-stage funds continue to pour record amounts into the sector, several venture capitalists (VCs) are quietly stepping back, wary of inflated valuations, weak monetisation plans,and untested business models. “Many AI companies are putting forward high valuations, yet in several cases, their strategies for monetisation and long-term sustainability remain unclear,”Milan Sharma,founder and managing director of 35North Ventures, told FE. While he agreed that AI has the potential to redefine the future, he said survival will depend on fundamentals like strong technical talent, ethical governance, and a clear roadmap for scaling. The caution stems from a growing sense of deja vu in globaltechcircles,withparallels beingdrawntothedotcombub- CAUTIOUS CAPITAL ■ Concerns rising over weak monetisation and unclear business models ■ Investors compare AI boom to early2000s dotcom bubble pattern ■ AI startups have captured over 50% of global VC funding ■ Among the notable fundraises are those by UnifyApps, Composio, Spyne, Netrasemi and Beacon ble of the early2000s. AndrejKarpathy,afounding member of OpenAI, recently notedinapodcastthatartificial general intelligence (AGI) remains at least a decade away, despite rapid progress in large language models. Continued on Page 11 CBC 15502/13/0043/2526 earths,fentanyl and TikTok XINGHUI KOK Kuala Lumpur, October 26 TOP CHINESE AND US economic officials agreed on the frameworkforatradeagreement on Sundayas US President DonaldTrumpsaidhewasconfident of hashing out a deal with Chinese President Xi Jinping when theymeetinthecomingdays. Scott Bessent, US treasury secretary and Jamieson Greer, trade representative met with He Lifeng,Chinese vice premier and top trade negotiator Li »INSIDE« Chenggangon TRUMP STRIKES US thesidelinesof DEALS ON the ASEAN CRITICAL summit in MINERALS Kuala Lumpur PAGE 11 for a fifth round of inpersondiscussionssinceMay. “I think we have a very successful framework for the leaders to discuss on Thursday," Bessent told reporters. Bessent told NBC's "Meet the Press" that he anticipated the agreement would defer China's expanded export controls on rare earth minerals and magnets. US President Donald Trump joins the performers in a dance after arriving for ASEAN summit, in Kuala Lumpur on Sunday REUTERS To work withAsean for development goals: PM FE BUREAU New Delhi, October 26 “The 21st century is our century,the century of India andAsean.Iamconfidentthat theAsean CommunityVision 2045 and the goal of Viksit Bharat2047willbuildabright future forall of humanity,” he saidinhisaddresstothe22nd Asean-India Summit deliveredvirtually. INDIA IS COMMITTED to working together with the Association of Southeast Asian Nations ( ASEAN) as both sides pursue their long-term development plans for greater prosperity, Prime Minister Narendra Modi said on Sunday. Continued on Page 3 Continued on Page 3 »INSIDE« PM FOR EARLY REVIEW OF INDIA-ASEAN FTA P2 HULwalks the tightrope: Volumewith fewerbets VIVEAT SUSAN PINTO Mumbai, October 26 HINDUSTAN UNILEVER (HUL) will double down on highgrowth demand spaces, as the firm eyes fewer,but biggerbets, undertheleadershipofCEOand MD Priya Nair.The focuswill be onemergingnichecategoriesor “market makers”as consumers increasinglypremiumise. HUL is also bringing its focus back on volume growth, as commodity prices remain soft and GST cuts reduce prices on 40% of its portfolio. WhileNair,whotookoverin August, is going back to the company's well-documented playbook of tapping both mass and premium consumers with a portfolio that “straddles the pricepyramid”,analystssayshe may have to make a choice in the current environment.That is,eithergomasstoensurecon- CONSUMER SHIFT HUL's volume growth in 6 quarters (in %) 0 Registrationofnew firmssurges108% REGISTRATION OF NEW companies grew 108% onyear to 23,113 in September, which was the second-highest ever in absolute terms, and the highest annual increase in at least 60 months, as per official data. The first half of FY26 witnessed a 38.4% jump in new company registrations, the highest in at least five years, going by the ministry of corporate affairs (MCA) figures. April 2025 had seen all-time high registration of companies (23,776) in any month. . Officials said that the bet- limited staff, slowing filings ■ Infosys’ BUSINESS MOMENTUM ACCELERATES MANU KAUSHIK New Delhi, October 26 ■ SEC and CFIUS operating with ● Talks cover rare 2 0 3 4 Q3 FY 25 Q2 FY2 5 5 FE S P EC I A L S US shutdown casts its shadow on Indian firms US and China agree on trade deal framework 2 FY Q4 EYEWEAR MANUFACTURER AND retailer Lenskart Solutions is preparing to launch its initial public offering (IPO) on October 31, with the issue expected to raise approximately `7,278 crore and value the company at `72,719 crore, reports FE Bureau. The stock is expected to debut on the BSE and the NSE on November 10. ■ PAGE 12 INFOSYS BUYBACK,HINDALCO DEALHITBYREGULATORYLOGJAM 6 Q2FY2 IN THE NEWS SAVINGS OF UP TO ₹600 ON SAND-LIME BRICKS WORTH ₹10,000 3 Utsav SAVINGS OF ₹30 PER CEMENT BAG 6 FY2 Q1 Bachat in addition to assistance of up to ₹2.5 lakh Now our dream of owning a home is coming true, with added savings! Q1FY25 Source: Company/analysts sistent volume growth or premiumise to improve margins. Experts also point to competition from regional, local and D2C brands. A low-inflationary environment will mean that these brands,especially local ones, will remain competitive, chipping away share from legacy players. “Though enabling factors such as income tax cuts and GST rate reductions have put more money in the hands of consumers,peopleareprioritisingpayingoffdebt,savingsand making purchases of durable items,” G Chokkalingam, founder of Mumbai-based Equinomics Research,said. Continued on Page 11 Strategy mirrors telecom playbook: Enter late but leverage scale and financial muscle to shift industry economics ■ BRANDWAGON, P9 The stuff of legends A look back at adman Piyush Pandey’s most celebrated work ■ PERSONAL FINANCE, P7 Park surplus funds in NPS Tier 2 This can help generate higher returns ■ EXPLAINER, P6 How artificial rain can clean up Delhi’s air The Delhi govt has set Oct 29 as the date for artificial rain in the city Reliance Retail’s q-commerce ace: Small-town India ANEES HUSSAIN Bengaluru, October 26 IT’S A NEWCOMER in India’s fiercely competitive quickcommerce club, but Reliance Retail has already packed a punchthatthreatenstodisrupt incumbents such as Blinkit, Swiggy Instamart and Zepto even as theyare scaling rapidly after fresh capital infusions. In its recent post-earnings commentary, Reliance said its omnichannel retail network gives it a structural edge as JioMart transitions to a halfhour delivery model, supported byan expanding grid of dark stores. What gives Reliance a distinct edge in its q-comm pivot is its presence in small-town India, unlike its competitors whicharegrapplingwithlogistics costs and limited order density.. “In most of the smaller towns, Reliance Retail is the only modern-trade retailer, and in those towns, it wouldlooktocapturethemarket before any of the other qcomm players arrive,” BNP Paribas said in a note. Reliance’s 3,000-store base and supply-chain backbone allow it to start with readymade coverage,which analysts believe could give it a faster route to viable volumes in PROFITABILITY FOCUS JioMart shifting towards sub-30-minute deliveries to boost competitiveness ■ Reliance competes directly with Blinkit, Swiggy Instamart and Zepto ■ Daily order volumes grew 42% sequentially and 200% annually ■Analysts say strategy mirrors Jio’s telecom playbook— scale reshapes competition semi-urban areas. Industry executives said this expansion could lift overall market growth, even if it raises shortterm burn rates. “Reliance’s presence will accelerate adoption in Tier II and III cities,” Nitin Jain, managing director at consultancy Protiviti Member Firm for India, said. “It forces others to expand faster, which benefits customers throughbetteraccessandpricing,”he added. According to analysts, the q-commstrategyitmirrorsthe company’s playbook in telecom – entering late but leveraging massive scale and financial muscle to shift industry economics. “Reliance can afford to be patient and aggressive at once,” a Bengaluru-based consumer internet investor, told FE.“The othersmustshowprogressonunit economics every quarter; Reliancedoesn’thavethatconstraint,”the investor added. “Weareuniquelypositioned todriveprofitablescaleinquick commerce through our physical reach and supply chain backbone,” Reliance Retail’s chief financial officer Dinesh BENGALURU Talujatoldanalysts.Hesaidthat thecompany'shybridstructure ofusingits3,000-plusphysical stores as last-mile nodes and darkstoresforrapidfulfilment, provides denser coverage than digital-onlyrivals. The company has operationalised more than 600 dark stores nationwide, supplementing its existing network thatspans5,000pincodesand over 1,000 cities. Daily order volumesrose42%sequentially and more than 200% year-onyear in the September quarter, withmostdeliveriescompleted in under 30 minutes. Continued on Page 11