3 Stocks with Strong Growth Plans and Expanding Margins 

At the same time, rising operating and net margins indicate that a larger portion of revenue is translating into profits. 

This combination of revenue growth and margin expansion can provide a strong foundation for future earnings. 

Investors, however, need to examine whether margin improvement is sustainable and supported by healthy demand, efficient operations and manageable debt. 

With that in mind, here are a few growth stocks with strong growth plans and expanding margins.

#1 Hindustan Copper 

First on the list is Hindustan Copper’s stock. 

Hindustan Copper Limited (HCL) is a Government of India-owned copper mining company under the Ministry of Mines. It is a Schedule A, Mini-Ratna Category-I CPSE, and the government owns 66.14%.

The company is particularly important because it is India’s only company engaged in copper-ore mining, with all operating copper-mining leases in the country.

Financial Highlights – Hindustan Copper

Year Ending	March 2024	March 2025	March 2026
Net Sales (m)	17,170	20,710	30,779
Operating Margin	35.1%	39.4%	49.9%
Operating Profit	6,022	8,157	15,345
Net Profit	2,957	4,674	9,207

Source: Equitymaster

Hindustan Copper’s operating margins jumped from 35.1% in FY24 to 49.9% in FY26. The sharp rally is on the back of a rally in global copper prices.

The trend of good performance of the last few years continued into Q1FY27. Revenue of Hindustan Copper was up 82% YoY at Rs 9.37 bn. Net profit rose 63% YoY to Rs 3.53 bn. EBITDA was up 173% to Rs 4.71 bn. 

Hindustan Copper has a strong roadmap for the future. The company is targeting a major expansion in copper mining capacity, from around 4 MTPA currently to 12.2 MTPA by FY31, potentially more than tripling volumes. 

Key projects include expansion at Malanjkhand, development of Khetri in Rajasthan, and expansion of the Ghatsila/Indian Copper Complex in Jharkhand.

#2 Garden Reach Shipbuilders and Engineers 

Next on the list is the stock of Garden Reach Shipbuilders and Engineers. 

Garden Reach Shipbuilders & Engineers (GRSE) is one of India’s leading defence shipyards under the Ministry of Defence. 

Based in Kolkata, it primarily designs and builds warships for the Indian Navy and Coast Guard, while also manufacturing marine equipment, portable steel bridges, and undertaking ship repairs. 

Financial Highlights of Garden Reach Shipbuilders and Engineers

Rs m	FY24	FY25	FY26
Net Sales	35,926	50,757	70,022
Operating Profit Margin %	15	15	15.4
Net Profit Margin (%)	9.9	10.4	10.7
Profit After Tax	3,573	5,274	7,479

Source: Equitymaster

Over the years, the company has seen steady growth in both operating margins and net profit margins. This has also been supported by a solid increase in revenues. 

Q1FY27 has again been a strong quarter for the company. Total income stood at Rs 19.14 bn, up 38% year on year from Q1 FY26. Profit after tax rose 44% from Rs 1.2 bn to Rs 1.73 bn during the period. 

The company is undertaking both brownfield and greenfield capacity expansion initiatives to strengthen its shipbuilding capabilities, support future growth, and enhance its ability to execute larger and more complex projects. 

In West Bengal, GRSE already has 4 facilities, three dedicated to shipbuilding and one for ship repair.

In addition, it has taken two more premises on a long-term lease basis from Syama Prasad Mookerjee Port, and the expansion and revitalization project for these facilities has already commenced. 

The company is also setting up a shipyard in West Bengal, Raichak, which is closer to the sea, and is expecting the necessary approvals to be accorded during the current calendar year.

Similarly, on the western seaboard, GRSE is setting up a full-fledged total ship solution facility.

GRSE is now focusing on new technology adoption and maximizing the use of robotics in its production processes, both in core shipbuilding as well as in bailey bridge fabrication. 

#3 Laurus Labs

Next on the list is Laurus Labs.

Laurus Labs has built a diversified business spanning CDMO, affordable medicines, and emerging technologies, positioning itself at the intersection of chemistry, biology, and next-generation therapeutics. 

Particulars	FY24	FY25	FY26
Net Sales (Rs m)	50,408	55,540	68,129
Operating Profit (Rs m)	8,038	11,304	18,327
Operating Margin (%)	15.9	20.4	26.9
Net Profit (Rs m)	1,682	3,544	8,899
Net Profit Margin (%)	3.3	6.4	13.1

Source: Equitymaster

Its operating margin expanded from 15.9% in FY24 to 20.4% in FY25 and 26.9% in FY26, reflecting improved operating efficiency and a stronger business mix. Meanwhile, its net profit margin rose from 3.3% to 6.4% and 13.1% over the same period.

In Q1FY27, Laurus maintained its strong growth momentum, delivering highest quarterly revenue, EBITDA and profits during the first quarter. 

The company’s revenues were Rs 20.26 bn, showing a 29% growth. This was mainly driven by the growing contribution of commercial supplies in the CDMO segment and continued strength in the affordable medicine portfolio. 

Gross margins were also very healthy, holding around 62.7%, and EBITDA margins expanded by 7 percentage points from the previous quarter to 31.8%. 

On growth plans, Laurus Labs is continuing to invest in capacity creation at its Vizag site and is also advancing commercial-scale peptide capacities based on customer demand. 

Construction of the commercial-scale fermentation facility and strengthening of its downstream processing infrastructure are progressing in line with the plan, and the company expects Phase 1 of this capacity, a little over 400 kiloliters, to be operational toward the end of this year. 

Conclusion

Growth stocks with expanding margins can offer attractive long-term opportunities, as improving profitability can support stronger earnings and cash flows. 

However, investors should not assume that recent margin expansion will continue indefinitely. Rising competition, higher input costs, weaker demand, execution challenges or increased capital requirements can quickly affect profitability. 

Valuations also need careful consideration, as high-growth companies often command premium multiples that leave less room for disappointment. 

Investors should therefore examine revenue quality, balance-sheet strength, cash generation, return ratios, and the sustainability of margin improvement. Past growth and margin expansion is not a guarantee of future performance.

Happy investing.

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