ET NEWS

Mumbai: India's workforce is projected to expand 4.7 per cent in the first half of FY27, driven largely by growth in e-commerce, tech startups, healthcare, pharma and manufacturing, a report said Wednesday. This improving sentiment is most visible among large enterprises, where 74 per cent indicate expansion, compared to 57 per cent of mid-sized firms and 38 per cent of small businesses, pointing to a scale-driven recovery in employment growth, TeamLease Services projects in its Employment Outlook Report (EOR) for April- September FY27 noted that the momentum carries across sectors, with both digital and core economy industries contributing to the demand. E-commerce and tech startups led with a net employment change (NEC) of 8.9 per cent, healthcare, and pharmaceuticals at 7 per cent, followed by manufacturing, engineering and infrastructure at 6.6 per cent, said the report. It projected an NEC of 4.7 per cent during the period. The report is based on insights from 1,268 employers across 23 industries and 20 cities and was conducted between November 2025 and January 2026. "India's workforce dynamics are increasingly shaped by structural and policy-led shifts rather than cyclical demand. With the implementation of labour codes, 64 per cent of organisations report an increase in employment costs and 80 per cent are redesigning salary structures, businesses are recalibrating workforce models to align with new statutory frameworks," TeamLease Services Senior Vice President Balasubramanian A said.

Shares of Solar Industries rallied as much as 5.4% to their day’s high of Rs 13,251 on the BSE on Wednesday after domestic brokerage firm Elara Capital initiated coverage with a Buy call, citing that the company is ‘unleashing growth juggernauts’.With a target price of Rs 15,450, the brokerage implies an upside potential of 24% from the previous close of Rs 12,430 per share. Analysts said one of the world’s largest commercial explosives companies is entering its next phase of growth across the defence, explosives and mining value chain.The company is evolving from a strong industrial explosives franchise into a vertically integrated defence manufacturer, positioning itself to tap high entry barrier segments such as propellants, warheads and rocket integration, ammunition, military drones and unmanned aerial vehicles, counter-drone systems and anti-tank guided missiles. At the same time, its international non-defence explosives business is also gaining solid traction.The initiation comes at a crucial juncture for defence stocks, amid the ongoing Iran conflict and heightened geopolitical tensions. Here are the three key growth drivers for the company, according to Elara Capital.1.) Defence to fire growth: Revenue from the segment has grown sharply at a CAGR of 82% over FY21-25, increasing its contribution from just 5% of total sales in FY21 to 18% in FY25. This segment is expected to drive the next phase of strong growth, supported by India’s defence capital expenditure of Rs 2.2 lakh crore in FY27, along with rising global conflicts and higher defence spending worldwide.Modern warfare is increasingly centred around four key categories: missiles and rockets, drones, counter-drone systems and ammunition. The company remains the only player in India with a presence across all these segments, positioning it as a key beneficiary. Its in-house capabilities in defence explosives, including warheads, are likely to further accelerate growth. “We expect defence revenue to grow at a CAGR of 66% over FY25-28E, with its share in overall revenue rising to 42% by FY28E,” it said in a note.2.) Going global: Global footprint expansion continues to drive growth in the explosives segment, with the company significantly strengthening its international presence. The company now operates in more than 90 countries and has established seven overseas manufacturing facilities across Zambia, Nigeria, Turkey, South Africa, Indonesia, Tanzania and Ghana. International business already contributes about 38% of total revenue in FY25, highlighting its strong global scale. Looking ahead, further momentum is expected with new operations planned in Kazakhstan, Saudi Arabia and Thailand over the next two years. This expansion is likely to support an exports CAGR of around 19% during FY25-28.3.) Defence Capex plan: The company is stepping up its defence ambitions with a significant capital expenditure plan. The company intends to invest Rs 2,200 crore over FY26-28E to scale up existing capabilities and explore new opportunities in areas such as advanced ammunition and aerospace solutions. This capex will be funded through a mix of internal accruals and debt.The push is supported by a memorandum of understanding with the Government of Maharashtra for a large defence project worth Rs 12,700 crore over the next 10 years. The initiative aims to expand production across key segments, including drones and UAVs, counter-drone systems, energetic materials, next-generation explosives and robotics.India’s defence story is expected to benefit from increasing indigenisation and a widening global ammunition supply gap. Rising geopolitical tensions, particularly in West Asia, along with the Russia-Ukraine conflict and growing risks across maritime, aerial and land domains, have created what can be described as a “security super cycle,” driving record-high global military spending and supporting sustained growth in the defence sector.Against this backdrop, Solar Industries stands out with strong fundamentals. The company reported an EBITDA margin of 26% in FY25, along with a return on capital employed of around 37% and a return on equity of 31%, underscoring its operational strength and efficiency.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)