India’s merchandise trade deficit widened by $1.5 billion to $32 billion in July, as higher gold and core imports offset a decline in the oil deficit.
The oil trade deficit narrowed by around $3 billion during the month, but this was fully offset by a widening gold deficit. The core trade deficit, excluding oil and gold, increased to a record $16 billion, partly driven by higher commodity prices.
On a three-month moving average basis, non-oil exports grew 12-14% year-on-year over the past two months, compared with 3-4% growth during the preceding 12 months. Core imports also accelerated, rising 19-20% year-on-year on a trend basis, compared with around 10-11% previously.
Meanwhile, corporate earnings presented a mixed picture.
Solar Industries India reported nearly double year-on-year growth in profit after tax for Q1 FY27, supported by a 70% increase in execution. Domestic explosives revenue grew 52%, while exports and overseas operations increased 65%. Defence revenue surged 123%. Its EBITDA margin expanded by 290 basis points to 27.7%. The company’s order backlog stood at Rs 21,350 crore, including Rs 18,000 crore in defence orders.
Tata Motors’ passenger vehicle business saw India PV EBITDA rise 74% to Rs 760 crore, although the figure was below expectations because of higher staff and other costs. Jaguar Land Rover’s EBITDA fell 22% to £481 million but came in ahead of estimates. Analysts have lowered their consolidated EBITDA estimates for FY27 and FY28 by 3%.
Apollo Hospitals Enterprise reported revenue, EBITDA and profit above market expectations, helped by a 22% rise in its hospital business. HealthCo grew 20%, while inpatient volumes increased 13%.
LG Electronics India reported a strong quarter, with revenue, EBITDA and adjusted profit rising 15%, 26% and 28%, respectively. Premium televisions supported growth in its home entertainment business, while strong demand for air conditioners and other appliances boosted its consumer electronics segment.
