5 Stocks That Are Expected to Deliver Better Margins in the Future to Add to Your Watchlist

Synopsis: Hero MotoCorp, Angel One and others raised margin guidance after Q4 results, supported by operational efficiency, growth expectations, product expansion, and improving profitability outlooks for FY27 across multiple sectors.

Recent quarterly updates indicate a positive shift in profitability outlook across sectors such as automotive, financial services, information technology, and consumer electronics. Companies have either raised or maintained margin guidance, supported by stronger operational execution and improving business conditions.

These developments reflect growing confidence in demand recovery, cost efficiencies, and strategic expansion initiatives. Firms across manufacturing, fintech, engineering, and IT services are focusing on sustainable growth while improving earnings quality and long-term financial stability.

Hero MotoCorp Ltd

Hero MotoCorp Ltd is one of India’s largest motorcycle and scooter manufacturers, known for its strong presence in the commuter bike segment. The company operates across domestic and international markets and focuses on innovation, fuel efficiency, and expanding its electric mobility portfolio through strategic investments and new product launches. With a market capitalisation of Rs. 1,01,066 cr, the shares of Hero MotoCorp Ltd closed at Rs. 5051 per share, down from its previous close of Rs. 5,075.65 per share.

The company stated that its EBITDA margin improved by 30 basis points to 14.7% in FY26 and reiterated its medium-term margin guidance of 14%–16%. Going forward, it plans to focus on capacity expansion, brand building, and strengthening its premium, scooter, EV, and global business segments. The company also expects the two-wheeler industry to witness high single-digit growth in the current fiscal year and aims to outperform the industry through resilient demand and new product launches.

Angel One Ltd

Angel One Ltd is a leading fintech and stockbroking platform in India offering trading, investment, and wealth management services. The company provides digital solutions across equities, derivatives, mutual funds, and advisory services, supported by a rapidly growing retail investor base and technology-driven operations. With a market capitalisation of Rs. 27,952 cr, the shares of Angel One Ltd closed at Rs. 306.50 per share, up from its previous close of Rs. 303.70 per share.

The company reported a strong improvement in profitability, with reported EBDAT margin rising to 41.7% and normalized EBDAT margin reaching 44.4% after excluding one-time and IPL-related expenses. 

For FY27, management expects further margin expansion driven by operating leverage, while retaining flexibility to reinvest in growth opportunities. The company indicated that margins seen in 2HFY26 could serve as a base for FY27 expectations and suggested that broking and distribution margins could remain above 45%, subject to reinvestment plans.

Hyundai Motor India Ltd

Hyundai Motor India Ltd is one of the country’s top passenger vehicle manufacturers and a subsidiary of Hyundai Motor Company. It offers a wide range of cars and SUVs in India while also serving as a major export hub, with increasing focus on electric vehicles and premium mobility solutions. With a market capitalisation of Rs. 1,48,349 cr, the shares of Hyundai Motor India Ltd closed at Rs. 1825.75 per share, down from its previous close of Rs. 1,842.75 per share.

The company has guided for an EBITDA margin of 11%–14% in FY27, compared to 12.2% reported in FY26, indicating expectations of stable profitability supported by operational efficiency and business growth initiatives.

GNG Electronics Ltd

GNG Electronics Ltd operates in the electronics refurbishment and lifecycle management segment, specialising in refurbished laptops, desktops, and IT equipment. The company caters to both domestic and international markets while promoting sustainable technology usage and affordable computing solutions. With a market capitalisation of Rs. 4,788 cr, the shares of GNG Electronics Ltd closed at Rs. 420 per share, down from its previous close of Rs. 429.25 per share.

For FY27, the company has guided for around 25% revenue growth along with a 50 bps improvement in PAT margin. Management indicated that EBITDA margin could improve to nearly 11.5% from 10.6% in FY26 to support this growth. 

The company maintained a conservative outlook while expressing confidence driven by structural inflation in component prices, supply constraints in new PCs, strategic inventory positioning, and increasing acceptance among distributors. Management also highlighted product quality, warranty support, and customer trust as key factors supporting long-term pricing power.

Infosys Ltd

Infosys Ltd is a global IT services and consulting company providing digital transformation, cloud computing, artificial intelligence, and business outsourcing solutions. It serves clients across multiple industries worldwide and is recognized as one of India’s leading technology exporters. With a market capitalisation of Rs. 4,53,580 cr, the shares of Infosys Ltd closed at Rs. 1118.40 per share, up from its previous close of Rs. 1,095.60 per share.

For FY27, the company has guided for constant currency revenue growth of 1.5%–3.5%, with management noting that the lower end assumes a weaker business environment while the upper end reflects improved market conditions. The company expects H1FY27 to be stronger than H2, in line with normal seasonality trends. Operating margin guidance stands at 20%–22%, compared to 21% reported in FY26.

The outlook includes contribution from the recently acquired Stratus business, which is expected to add around 25 bps to FY27 growth, while contributions from Optimum Healthcare and the Versent JV are excluded pending regulatory approvals.

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