Growth Stocks to Watch in India for 2026
As India progresses towards 2026, the investment landscape is evolving. The stock market is becoming more discerning, and the era of easy capital is fading. Investors should now look beyond mere growth figures to assess the sustainability of companies' performance. Six growth stocks have emerged as potential leaders in this new environment, each showcasing strong fundamentals and the ability to adapt to changing market dynamics.
State Bank of India (SBI) has transformed from a traditional banking giant to a robust player in the financial sector. With a reported income of over ₹4.9 trillion and a net profit exceeding ₹80,000 crore in FY25, SBI has made significant strides. Its focus on improving asset quality and operational efficiency has resulted in a decline in net NPAs to around 0.6%, showcasing resilience and stability.
Meanwhile, HCL Technologies stands strong in the global IT services sector. Despite challenges like slowing client spending, HCL has maintained margins between 18-19%. The company's strategy of integrating AI into service delivery has improved productivity while ensuring client value remains intact. With a revenue of ₹1.2 trillion, HCL's solid order book suggests stability, making it a stock to watch.
Bharti Airtel has also turned the corner after years of struggle. Reporting consolidated revenue of ₹1.7 trillion in FY25, the company is witnessing impressive growth driven by tariff hikes and increasing data consumption. With EBITDA margins approaching 50%, Airtel's transformation into a competitive player in telecommunications is noteworthy.
Affle has carved a niche in digital advertising, demonstrating consistent profitability and strong cash flows. With a focus on mobile-first consumer intelligence and an asset-light model, the company has reported impressive growth rates, making it an attractive investment option.
Manufacturing is often a slow-burn sector, but PG Electroplast is showing promise. Its revenue growth of ₹4900 crore in FY25, coupled with increased operational efficiencies, places it in a favorable position as demand for domestic manufacturing rises.
Lastly, ICICI Prudential AMC is benefiting from India’s changing savings behavior. With robust growth in equity-oriented assets and strong operating leverage, it stands to gain from the ongoing shift towards financial instruments as households move away from physical assets.
These six stocks, with their unique strengths and market adaptations, present promising opportunities for investors as India’s economy continues to evolve. As the market landscape shifts, tracking these companies could lead to significant investment rewards in the coming years.
