New-Age Tech Stocks Face Bearish Week Amid Q2 Earnings Season; Market Cap Declines

New-age technology stocks endured a bearish week, with 32 out of 42 companies under coverage experiencing stock declines ranging from 0.12% to over 14%. This resulted in a cumulative market capitalization fall to $106.42 billion from $109.15 billion a week prior, marking the second consecutive week of decline for the sector. The Q2 earnings season dictated much of the stock-specific action.

Biggest losers included BlueStone, which saw its shares drop 14.13% despite cutting its net loss, Ola Electric (down 6.96% after cutting FY26 revenue estimates), and Urban Company (down 9.71% after reporting a net loss). Conversely, travel tech firm TBO Tek was a top gainer, rising 7.84% after reporting a 13% YoY profit increase and a 26% revenue jump, leading to a 'Buy' upgrade from JM Financial. RateGain, ixigo, Paytm, EaseMyTrip, ArisInfra, and Go Digit were among other gainers.

Paytm's shares rose 3.4% to a new all-time high, cheered by strong operating performance with revenue up 24% YoY and EBITDA turning positive. However, its net profit declined significantly due to one-time items. Delhivery's shares fell 7.76% after reporting a net loss of INR 50.4 Cr due to integration costs, despite a 17% revenue increase. Nykaa saw a 2.5X YoY profit jump but its shares ended slightly lower.

Four companies — Paytm, Smartworks, WeWork India, and Zelio E-Mobility — touched fresh 52-week highs, while EaseMyTrip, Tracxn, and Urban Company hit fresh lows. Zomato's parent, Eternal, received a GST demand notice. Swiggy's board approved a INR 10,000 Cr fundraise plan.

In the broader market, the Indian equity market declined as Sensex and Nifty 50 slipped due to FII outflows and subdued global cues. Three new-age tech IPOs saw activity: Lenskart and Groww closed with strong interest, while Pine Labs opened to a muted response. PhysicsWallah's IPO is set to open soon.

Impact: This news significantly impacts the Indian stock market, particularly the new-age tech sector, by highlighting performance trends, earnings sensitivity, and investor sentiment. It provides crucial insights for investors tracking these growth stocks, informing decisions on risk and opportunity. The broader market context of FII outflows and global sentiment also adds to the overall investment landscape. Rating: 7/10.

Difficult terms: * **Bearish**: A market or stock that is moving downwards. * **Q2 earnings season**: A period when companies report their financial results for the second quarter of the fiscal year. * **Market cap (Market Capitalization)**: The total value of a company's outstanding shares of stock. * **YoY (Year-over-Year)**: A comparison of a company's performance over a period with the same period in the previous year. * **QoQ (Quarter-over-Quarter)**: A comparison of a company's performance in a quarter with its performance in the preceding quarter. * **Net loss**: When a company's expenses exceed its revenues over a period, resulting in a negative profit. * **Operating revenue**: The income a company generates from its primary business activities. * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)**: A measure of a company's operating performance, excluding financing and accounting decisions. * **Input tax credit**: A tax reduction available to businesses for taxes already paid on inputs used in production or services. * **QIP (Qualified Institutional Placement)**: A method by which listed companies can raise capital by issuing securities to qualified institutional buyers. * **FII outflows**: When foreign institutional investors sell their investments in a country's stock market, leading to a withdrawal of capital. * **52-week high/low**: The highest or lowest price a stock has traded at during the past 52 weeks. * **IPO (Initial Public Offering)**: The process by which a private company first sells shares of stock to the public. * **GST (Goods and Services Tax)**: An indirect tax levied on the supply of goods and services. * **Acquisition**: The act of one company buying another company. * **Express Parcel (EP)**: A specific business segment of a logistics company dealing with fast parcel delivery. * **Part-truckload (PTL)**: A logistics service for shipments that do not fill an entire truck. * **Muted investor response**: Low participation or interest from investors. * **Monetisation**: The process of generating revenue from an asset or business. * **Lending traction**: Growth or success in a company's lending or loan business. * **Cost optimisation**: Efforts made by a company to reduce its operational costs. * **Payments aggregator**: A service that collects and processes payment transactions for e-commerce businesses. * **Exceptional item**: A significant, unusual, and infrequent event that affects a company's financial results. * **GST revisions**: Changes or updates to the Goods and Services Tax regulations.