5 Stocks with Free Cash Flow Growth of Up to 517% in FY26 to Add to Your Watchlist

Synopsis: Rising free cash flow often highlights stronger earnings quality and improved cash conversion. Schaeffler India, Atul Auto, and few other stocks registered more than 100% year-on-year growth in free cash flow during FY26.

Free cash flow (FCF) is one of the most important indicators of a company’s financial health, as it measures the cash left after meeting operating expenses and capital expenditure. A rising FCF indicates that a business is generating more cash from its core operations.

Higher free cash flow gives companies greater financial flexibility to reduce debt, invest in expansion, acquire new businesses, pay dividends, or buy back shares. Companies with consistently improving FCF are often viewed as being better positioned to create long-term shareholder value.

Atul Auto Ltd

Atul Auto Ltd is a leading manufacturer of three-wheelers in India, catering to both passenger and cargo transportation segments. The company offers vehicles powered by diesel, petrol, CNG, LPG, and electric drivetrains, serving urban and rural mobility needs. 

With a market capitalisation of Rs. 1,364 cr, the shares of Atul Auto Ltd closed at Rs. 491.60 per share, up from its previous close of Rs. 490.90 per share. Free cash flow increased from Rs. 9 crore in FY25 to Rs. 37 crore in FY26, marking a 311% YoY increase. 

Schaeffler India Ltd

Schaeffler India Ltd is a leading supplier of precision engineering components, manufacturing bearings, automotive components, and industrial solutions under globally recognised brands such as FAG, INA, and LuK. The company serves automotive OEMs, industrial machinery manufacturers, railways, wind energy, and aftermarket customers. 

With a market capitalisation of Rs. 63,882 cr, the shares of Schaeffler India Ltd closed at Rs. 4087.05 per share, up from its previous close of Rs. 4,046.70 per share. Free cash flow increased from Rs. 144 crore in FY25 to Rs. 888 crore in FY26, marking a 517% YoY increase.  

Hero MotoCorp Ltd

Hero MotoCorp Ltd is India’s largest manufacturer of motorcycles and scooters, with a strong presence in the commuter two-wheeler segment. The company has an extensive domestic distribution network and exports its products to several international markets. 

With a market capitalisation of Rs. 98,865 cr, the shares of Hero MotoCorp Ltd closed at Rs. 4941 per share, up from its previous close of Rs. 4,898.30 per share. Free cash flow increased from Rs. 3,463 crore in FY25 to Rs. 7,227 crore in FY26, marking a 109% YoY increase. 

Larsen & Toubro Ltd

Larsen & Toubro (L&T) is one of India’s largest engineering, procurement, and construction (EPC) companies, with operations spanning infrastructure, hydrocarbon, defence, heavy engineering, power, IT services, and financial services. 

With a market capitalisation of Rs. 5,42,938 cr, the shares of Larsen & Toubro Ltd closed at Rs. 3946.55 per share, up from its previous close of Rs. 3,887.30 per share. Free cash flow increased from Rs. 5,611 crore in FY25 to Rs. 12,272 crore in FY26, marking a 119% YoY increase. 

Supreme Industries Ltd

Supreme Industries Ltd is India’s largest plastic products manufacturer, offering a diversified portfolio that includes plastic piping systems, packaging products, industrial moulded components, furniture, and composite LPG cylinders. The company serves sectors such as agriculture, construction, infrastructure, packaging, and consumer goods. 

With a market capitalisation of Rs. 42,223 cr, the shares of Supreme Industries Ltd closed at Rs. 3324 per share, up from its previous close of Rs. 3,222.35 per share. Free cash flow increased from Rs. 116 crore in FY25 to Rs. 416 crore in FY26, marking a 259% YoY increase. 

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