One of the key reasons for the stock market to fall or rise is the earnings growth of its stocks. In this video, I’m going to discuss five to six companies where the earnings growth has been excellent in the last few quarters. Just a disclaimer that these companies are not buy or sell recommendations, as anyways I’m not doing a full deep-dive analysis here, so please take this video only for educational purposes.
Now, before I start, a very, very big announcement: I’ve launched my brand new Hindi podcast channel called “Good to Great.” On this channel, you are going to listen to guests from all streams, including finance, sports, and fitness—all in Hindi. And the best part about this channel is going to be that if you have a story to tell to the world, then you can appear on this channel as a guest. Simply go to this channel, subscribe to it, and wait for further announcements to happen. I’m eagerly waiting for your support. With that, let me come back to our main topic, which is discussing five to six companies where the earnings growth has been excellent.
Company 1: Lupin (Pharmaceutical Sector)
The first company that I’m going to discuss is Lupin, which is a pharma company. Now, I’m not going to go into details of what this company does, but if you look at the recent quarterly results of this company, what you will note is that the top line of the company has grown by around 26% year-on-year basis. If you look at the EBITDA, there is around 62% growth rate on a Y-o-Y basis. If you look at the net income or the profit after tax (PAT), there is 38% growth on a Y-o-Y basis. If you look at the segment-wise performance, North America, which is their largest business segment, has grown by around 52% year-on-year. So, overall very, very good growth rate. Their API business has been down with 24% degrowth. That’s what we have seen in pharma companies a lot—that the API businesses have been down.
But if I talk about the company’s last few quarters—let’s say the last five quarters—look at the sales number and look at the EBITDA margin in terms of the trend here. Sales have been going up continuously, but Q2 and Q3 have been quite outstanding if you compare the five quarters. You can see the numbers here yourself. If you look at the EBITDA margin of this company, they have expanded. It used to be 24.3% back in Q3 FY25, and it’s gone now to 31.1%. Can they sustain these EBITDA margins? I don’t know, that is for the future. Of course, I’m not doing a deep-dive analysis here to look at what their future outlook is; I’m just going to talk about the past performance of this company as of now.
Coming to the 9-month performance of this company, if you look at it on a 9-month basis, the net sales have gone up by around 20%, which is very, very healthy in my view. If you look at the net income, which is the profit after tax, it shows around 54.3% year-on-year growth. So far, FY26 for Lupin has been very, very good in terms of the P&L. Now, if you look at this company’s capex, you will note that over the last five quarters, the company has been doing a lot of capex. In fact, Q2 FY26 was the highest in terms of capex at 3,474 million INR. The net debt to equity is actually in the minus at -0.14, which means it’s a totally debt-free company.
Of course, you can go and explore what the risks are in this particular company because I have not talked about the headwinds that this company might be facing. But if I look at the valuations very, very quickly, currently it is trading at around 20 PE, and the PEG ratio of this company is 0.35. Now, this low PEG ratio means that the earnings growth is very high as compared to the PE ratio. Because PEG is what? PE divided by the earnings growth rate. Since the company is delivering a very high earnings growth rate, the PE has compressed, and also the PEG ratio is very, very low. The moment earnings growth stops or earnings growth is not there, the PE might shoot up. This is how you’ve got to look at the PE ratio as well, in the context that why it is low—because the earnings growth is very, very high as of now.
If I talk about the past trend of this company and if you look at the PE ratio and how this has contracted, it used to be at around 108 back in July 2023 because the earnings were not there. As you can see, the earnings per ratio here—these bars are down. Since the earnings growth started to go up, the PE started to contract, and that’s the logic essentially I was trying to sort of explain to you. It’s at around 20 now. If you look at the EV multiples, that has also contracted. It’s at around 13.1 as compared to a median of 21.1. And if you look at the price-to-book ratio as well, it is slightly elevated compared to the median one. The median has been 4.2 in the last 5 years, and it is slightly elevated as of now at 5.2. Overall, the company has delivered a very, very good earnings growth rate, but please go and do some deep-dive analysis of Lupin so that you understand what this company does, where the headwinds are, and where the tailwinds are. Do a complete analysis before you take any investment bets here. My intent was to bring you some insights about their recent earnings growth rate as well as their sales growth rate. If you like that, I request you to hit the like button and let me know in the comments. A simple thank you motivates me to bring such content to you at zero cost.
Company 2: DLF Limited (Real Estate Sector)
With that, let’s move to company number two. The second company that I’m going to pick is from the real estate sector, a company that all of us know: DLF Limited. If you look at the recent quarterly performance of DLF in Q3 FY26, they have delivered a PAT of around 1,252 crores, which is 29% higher on a year-on-year basis. This is before exceptional items. So, if you look at their P&L account, you will find that in Q3 FY26 they had around 45 crores of exceptional items, which have taken their PAT slightly down—overall PAT growth is only 14% if you remove these exceptional items. But to be honest, that is a one-off, and that’s why the company is delivering both these numbers, which is before exceptional items or after exceptional items.
Now, if you look at the last 3 to 4 years of growth rate for DLF from a revenue perspective, if you look at FY23, FY24, and FY25, steady growth rate in their revenues has been there. If you compare the 9 months of FY26—the green here you see, 7,722 cr versus 5,649 cr—it is giving you a 9-month comparison between FY25 and FY26. From that comparison perspective, the 9 months have been very, very good from a revenue growth perspective, from an EBITDA perspective as well, and from a PAT perspective as well. As you can see, overall there has been growth. Now, DLF has two entities: DLF Limited and DCCDL, which I’m not going into details here, but I’m going to talk about DLF numbers as such.
If I show you the valuations of DLF as of now, and if you look at the PE ratio of DLF, it has contracted massively. It used to be at around 94, and it has come down to almost like 37 when I’m recording this video. If you look at the EV multiples, that used to be almost 101, and it’s now contracted to almost 44 at the time of recording this video. If you look at the price-to-book as well, it’s come down from 6 to almost the median, which is around 3.7.
Why has there been a contraction in the valuations? See, one of the reasons that you need to know about DLF is this data point here, which is the bookings—new sales bookings. If you look at the last 9 months of FY26, how much of new sales bookings have they got? 16,176 crores. In the previous year, if you go back to the FY25 9-month period, the new sales booking was how much? 19,000—19,187 cr to be precise. So, there has been a decline in the new sales bookings in the last 9 months, and this is what the market is spooked about when it comes to real estate businesses. There is a fear about real estate businesses slowing down in India, especially where the entry ticket size is, let’s say, 70 to 80 lakh rupees. That’s where the market is slowing down definitely. This is a risk that you need to note. I don’t know how the real estate market will play out in the next few years or quarters, but as of now, that’s the picture about DLF. Go and explore, for example, companies like Lodha, or Brigade Enterprises. I’ve talked about some of these companies in a previous video on the real estate sector. If you want to explore the real estate sector, go and watch that video; that is going to help you. So far, DLF in 9 months has shown a good growth rate from a PAT perspective. I don’t know what the future will look like, so don’t take this as a recommendation.
Company 3: State Bank of India (Banking Sector)
With that, let’s go to stock number three. The third company that I want to speak about is from the banking sector: State Bank of India. Have a look at how State Bank of India has been performing in Q3 FY26—highest ever quarterly net profit of around 21,000 cr with a year-on-year growth of almost 25%. You can read the numbers here. More importantly, if you look at SBI’s credit growth rate, it’s up 15.14% year-on-year. This is a very, very good growth rate in credit, and what it is telling me is that underneath the banking sector, the Indian economy seems to be picking up. Because if banks like SBI are doing well from a credit growth rate perspective, chances are that the economy is doing pretty well in Q3.
Now, if we dig slightly deeper into their P&L account, there are a couple of red flags. The net interest margin has been down two basis points and three basis points, while the credit cost also has been up around five basis points. However, the good thing is the gross NPAs and net NPAs have come down massively. Gross NPAs are 50 basis points down, and net NPAs are down by almost 14 basis points. The return on assets for this bank has been very, very good—it has gone up by around 7 basis points to around 1.16. How about the last 9 months? If you look at the last 9 months’ performance in FY26 versus the previous year, the company’s profits have grown by around 15.48% cumulatively, which is very, very good again. From a NIMs perspective, there has been a contraction here of 17 basis points at the whole bank level as well as the domestic level; that potentially is a red signal for investors.
Now, if you look at SBI’s valuations, the price-to-book of this company is now trading at around 1.9 when I’m recording this video. The last 5 years’ median has been around 1.5, so this has been rerated in my view, right? Because maybe the profits have been very, very good, that’s how the market is looking at it. Again, not a recommendation here that you go and buy. Slightly higher valuations are what we are seeing, maybe because the profitability has been on the higher side and there have been some bold statements made by the chairman of State Bank of India. Go and listen to his interviews as well; you will come to know how the overall industry is doing and how the bank is leading the industry’s growth.
Company 4: Apollo Hospitals (Healthcare Sector)
With that, let’s move to company number four, and this company is from hospitals: Apollo Hospitals. Have a look at the Q3 performance of Apollo Hospitals. The company’s consolidated revenues have grown by around 17% year-on-year basis, their EBITDA has gone up by around 27% year-on-year basis, and their PAT has gone up by around 35% year-on-year basis. This is a very, very good growth rate that we have seen in Q3 FY26. What about the 9 months of FY26? Have a look at this data here, and what you note is the consolidated sales have gone up around 15%, slightly lower than the Q3 performance. If you look at EBITDA, it shows around 22% growth on a Y-o-Y basis, and if you look at the PAT, it is around 34% year-on-year basis. So clearly, Q3 has been a better quarter for Apollo Hospitals as compared to the 9 months, but overall the 9-month performance has been rock-solid for Apollo Healthcare.
Now, in terms of the valuations of Apollo Hospitals, if you look at it, the PE ratio has been coming down consistently. It is now at around 60, whereas the median has been around 86 in the last 5 years. We know that hospitals have been trading at very, very high PE multiples. The price-to-book, if you look at it, is at around 12 at the time of recording this video; the median in the last 5 years has been around 12.9. And if you look at the EV multiples as well, it’s been around 30—almost 30 at the time of recording this video, whereas the median has been around 35. So, there have been some valuation corrections in the hospital themes. Again, go and explore, look at this particular theme. There is a new index as well, the BSE Hospital Index—go and explore that as well, you will learn a lot about hospitals.
Company 5: Eicher Motors (Auto Sector)
In the interest of time, let’s move to stock number five. The next company is from the auto sector: Eicher Motors. If you look at Eicher Motors’ Q3 FY26 results, total volumes—because in auto we look at volumes first—are up 21% year-on-year basis. If you look at the revenues from operations, they are up by around 22.9%, EBITDA is 29.6% up, and PAT is also showing 21.4% growth rate. If you look at the last 9 months, the 9-month numbers are looking extremely, extremely good here. Although there is one more quarter to go, they are looking like full-year FY24 numbers already, with 912–914 in terms of sales volume. If you look at the total revenues here, 16,535 cr vs 17,327 cr has already exceeded the FY24 number just in the 9 months. If you look at the profit after tax here, it was 4,000 cr in FY24, and in the 9 months of FY26, it’s already crossed 4,000 crores. By the time we get their last quarterly number, it’s going to cross definitely FY25 and show some healthy growth rate in Eicher Motors.
Now, if you look at the valuations of Eicher Motors, looking at the PE multiples, the last 5 years’ median has been 34.9, and it is now standing at around 40.7—a slightly elevated one. One of the reasons, of course, is that if you look at the growth rate, the turnaround the company has seen from FY22 onwards is clear. See how the sales had been dropping up until FY22, and then from FY22, the sales have gone up drastically. The same is the story with profits; they were coming down from FY19 to FY22, right from 2,220 crores to 1,676 crores, and then there is a turnaround from 1,676 to almost now 4,500 crores just in the 9 months. That’s why you will see valuations as well coming down and then going back up; of course, the earnings have played a role in it. If you look at the EV multiples as well, they are slightly elevated from the median of 23 over the last 5 years, sitting at around 28. And if you look at the price-to-book, it is again very, very elevated right now at 9.9 versus a median of 7.0.
So definitely, valuations do look elevated from their median over the last 5 years, etc., but the growth has been there in the company. The question is: can this company sustain these revenue growth rates and profitability growth rates? If they can, then that’s okay, but if they can’t, there is a possible valuation correction that may happen, and that’s what you need to go and look out for.
Company 6: Titan Company (Jewelry & Lifestyle Sector)
With this, let me also try and cover one more stock so that you get a complete, rounded picture from one more sector. The sixth company that I want to cover is Titan, from the jewelry and lifestyle segment. What you note here is that their Q3 revenues have gone up by around 43%—phenomenal growth in Q3. If you look at the EBIT, it has gone up by around 63%, and their EBIT margin has also expanded by 155 basis points. Now, if you look at the last 9 months of performance, total sales of the company have gone up by around 33%, their EBIT has gone up by around 54%, and the margins have expanded by 188 basis points. Overall, Q3 has been an outstanding quarter.
Why do I say that? If I show you the trend of the last few quarters—in fact, if you look at the last almost 11 to 12 quarters—11 quarters here—and if you see in terms of the quarterly performance of the sales, looking at the income here, Q3 clearly shows 24,592 crores of revenues. That is a very huge growth rate in Q3 FY26 versus the last 10 quarters that you see here. Also, if you look at their PAT margin, the PAT margin has expanded now to 6.8%. Back in FY25, the margins were down to 5.2% and 5.8%, and it’s now going up to around 6.8%, which is very, very good. Because if you go back to FY24, the company used to report around 8.5% of PAT margin. Can it go back to that sort of level? That is the question. Clearly, the last couple of quarters have been very, very good for Titan, and therefore you can see that huge growth rate in their PAT, etc.
If I talk about the valuations of this company, if you look at the PE ratio of the company, it has contracted hugely in the last 5 years from a crazy PE of 177 and 166 to now almost around 76. It is still a very, very high multiple, okay? If you look at the EV multiples, it has come down to almost 45 now; it used to be back in like 2021 a crazy 101 EV multiple. It’s come down, but it’s still very, very high. If you look at the price-to-book ratio, it’s now trading at around 29, whereas the median has been around 26, so it is slightly elevated than the median because the last quarter has been very, very good for them.
Conclusion
Can they sustain this growth rate? Again, we don’t know; there could be headwinds as well. You have to do the deep-dive analysis here for these six stocks from six different sectors. I’ve just scratched the surface, okay? I’ve given you something that you can start working with—start looking deep into these companies and look for your opportunities. By no means am I giving you any buy or sell recommendations here; purely, I’ve talked about their fundamentals, which is their earnings growth rate and their sales growth rate.
And if you’ve liked this type of content, I request you to hit the like button and let me know in the comments. A simple thank you motivates me a lot to bring such content to you at zero cost. Also, about these six companies, if you know any potential risks or headwinds, do share that in the comments. Any views that you want to express, do share them in the comments, because as a community we can grow together and learn from each other if you’ve done some homework. The link is in the comments; go and I’ll be thrilled to welcome you. With that, I’m going to see you in my next article. Until then, keep rocking!
