Earnings growth is one of the most important drivers of stock performance. When a company’s profits grow steadily, it often signals improving business fundamentals—be it better margins, rising demand, or operational efficiency. Over time, this can lead to a re-rating of the stock as investor confidence builds.
In FY25, a few small-cap companies delivered extraordinary profit growth, over 500% year-on-year. While such spikes raise questions about sustainability, they also warrant a closer look. We’ve identified three such companies that posted standout earnings growth this year. Whether these stocks deserve a spot on your watchlist.
Let’s have a look.
#1 Tejas Networks
Tejas Networks is a part of the Tata group and a subsidiary of Tata Sons.
It designs and manufactures wireline and wireless networking equipment used by telecommunications operators, utilities, governments and defence networks in more than 75 countries.
One-Off Boost from BSNL Deal
The company posted a sharp financial growth in FY25. Revenue rose 261% from last year to ₹89 billion, while net profit surged 609% to ₹4.5 billion. A ₹74.9 billion deal with BSNL to set up 1 lakh sites for 4/5G services in August 2023 boosted its financials.
However, with the BSNL order now largely executed, growth momentum is likely to taper off. A high base from FY25 further adds to the challenge.
Weak Order Book and Cash Flow Stress Cloud Near-Term Outlook
The outlook for FY26 appears weak. Tejas’ order book of ₹10.2 billion as of Q4FY25 is barely 10% of its FY25 revenue. On top of that, its lower gross margin and high fixed costs could impact profitability if order inflows remain muted.
That said, Tejas expects inventory worth ₹23.7 billion to be converted into finished goods and shipped in the coming months, which may offer some support to near-term revenue.
Working capital stress is another concern. Receivables stood at ₹48.8 billion as of Q4FY25, following a spike in shipments in Q4. Of this, just ₹19 billion has been collected so far. Tejas also has borrowings of ₹32.7 billion, well-above its cash and cash equivalent of ₹8.3 billion.
Nevertheless, management remains optimistic about order flow from both domestic and international customers, for wireless and wireline products. But, it remains to be seen how this plays out.
In terms of valuation, it is trading at a price-to-equity multiple of 28x, well above the 7-year average of 21x.

#2 Signature Global
Signature Global is a Delhi-NCR-based real estate company focused on the mid-income housing market since 2017. It holds a 13% market share in NCR and 27% in Gurugram in terms of absorption of housing units priced between ₹8-50 million, according to the company.
Its operations are concentrated in three core regions of Delhi NCR—Dwarka Expressway, Sohna Elevated Corridor, and Gurugram.
Strong Sales Momentum in FY25
Signature Global posted a strong performance in FY25. It sold over 4,100 units at an average ticket size of ₹25 million, with sales rising 42% from last year to ₹102.9 billion. This was driven by 34% volume growth and improved realisation. Net profit increased by a massive 531% to ₹1.0 billion.
Sales realisation grew by nearly 6% to ₹12,457 per sq. ft, indicating price appreciation across all major markets. Collections also rose 41% to ₹31.1 billion—its best annual figure so far.
Robust Launch Pipeline and Growth Guidance
Looking ahead, the company has a pipeline of 49.7 million sq ft of saleable area, to be launched over the next 2-3 years. This includes 10.4 million sq ft of ongoing projects, 14.8 million sq ft is recent launches, and 24.6 million sq ft is yet to be launched.
The ongoing project with a total sold value of ₹97.9 billion is expected to be delivered in the next 5-6 quarters. For FY26, the company has guided for 25% increases in project launches, totaling ₹170 billion, across its micro markets. It aims to grow sales by 20% in FY26 and maintain this pace over the long term.
Collections are also projected to grow by 35% in FY26, with the company expecting an operating surplus of over 40% of collections.
Valuation Still Rich Despite Growth Visibility
With limited trading history, long-term valuation assessment is challenging. It currently trades at a P/E ratio of 181x, well above the sectoral median and established peers.

#3 Multi-Commodity Exchange of India
MCX Maintains Dominance in Commodity Derivatives
Multi Commodity Exchange (MCX) is India’s leading stock exchange offering commodity derivatives, holding a 98.1% market share. It operates a digital trading platform covering derivative trading in multiple commodities (base metals, bullion) and indices.
Globally, MCX is the third-largest commodity options exchange, and the seventh-largest in commodity derivatives contracts traded in 2023. In India, it enjoys a near-total monopoly, with 100% share in precious metals, base metals, and index futures, and 99.99% in energy derivatives.
Volumes Surge on the Back of Precious Metals
The company’s average daily turnover more than doubled to ₹1.9 trillion in FY25, from ₹0.9 trillion in FY24. Precious metals and stones led the pack, contributing 64.6% of volumes, followed by energy (23.8%), base metals (11.5%), and others.
Participation has also broadened meaningfully. Foreign portfolio investor participation in the commodity derivatives market, starting from FY24, has resulted in a steady increase in volumes. Retail participation is also driving growth; the trading client base reached 1.3 million, with robust activity across all segments.
Financial Performance Reflects Operating Leverage
MCX revenue surged 59% from last year to ₹12.1 billion, driven by record turnover. As the network effect kicked in, the margin expanded from 18% (in FY24) to 63% in FY25. As a result, net profit rose 575% to ₹1.1 billion.
Looking ahead, MCX is awaiting regulatory approvals for a range of products, including silver micro options (30 Kg, 5 kg, and 1kg). It has received approval to launch electricity futures this month only. These are expected to make a significant contribution once launched.
It is worth noting that Gold Ten Futures, launched in April 2025, has already seen a strong start. It also plans to strengthen its technology stack to ensure scalability and faster time-to-market for new products
The company also plans to expand participation base across retail, commercial, and FPI segments. It estimates that participation will pick up pace as clients increase their exposure to commodity derivatives through mutual funds and portfolio managers.
Valuation Still Rich Despite Growth Visibility
The stock currently trades at a P/E of 70x, significantly above its sectoral 10-year median of 44x, leaving little room for error, especially given a high base.

Conclusion
While all three companies, Tejas Networks, Signature Global, and MCX, have posted exceptional profit growth in FY25, their paths forward vary in visibility and risk. Tejas Networks faces growth headwinds after the BSNL-led boost, with concerns around order visibility and balance sheet stress.
Signature Global continues to ride a structural real estate upcycle, but valuations appear stretched. MCX, on the other hand, benefits from near-monopoly status and rising participation, though much of its growth seems priced in.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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