5 Fastest Growing Fundamentally Strong Stocks in India for 2025

India is one of the best markets for growth investing thanks to its robust economic fundamentals and consistent domestic inflows. This combination creates a fertile ground for investors looking to compound wealth over the long term.

However, chasing growth blindly-without accounting for fundamentals-can be risky.

That's why we've screened for high-growth stocks using Equitymaster's Top Growth Stocks screener, and then applied a strict filter to eliminate all companies with a debt-to-equity ratio above 0.1 and return on equity (ROE) less than 12%.

The result?

A powerful shortlist of companies that combine strong growth potential with clean balance sheets.

Take a look...

#1 Trent

First on the list is Trent, having retail operations covering both the fashion and grocery sectors.

Its fashion segment features prominently owned brands such as Westside, which serves as its flagship store, alongside Zudio, Utsa, and Samoh, and it also collaborates through alliances with international brands like Zara and Massimo Dutti.

Within grocery retailing, Trent operates Star Stores via its joint venture Trent Hypermarket (THPL) and manages Booker wholesale.

As of March 2025, the company has expanded its retail footprint to over 1,000 stores across more than 242 cities in India, offering a broad spectrum of products including apparel, footwear, accessories, groceries, and beauty items.

Westside focuses on providing branded aspirational to mid-premium fashion and home furnishings. Zudio targets the value fashion market with exclusively private label brands.

Coming to its financial performance, the company has delivered a top-line growth of 38% compounded annual growth rate (CAGR) over a 5-year period and a net profit CAGR of 72%.

The last 5-year return on equity (ROE) has been 17%.

During FY25, Trent continued its expansion strategy by adding 295 new stores, bringing its total store count to 1,043.

Looking ahead, the company management expects Trent to continue experiencing healthy revenue growth, driven by sustained store expansion and strong like-to-like (LTL) sales growth across its key formats, such as Westside and Zudio.

The company plans for continued annual capital expenditure (capex) of approximately Rs 12-13 bn for store expansions.

For more details, check out Trent's financial factsheet.

#2 LTIMindtree

Coming second on the list is LTIMindtree a global technology consulting and digital solutions company.

It helps enterprises across various industries reimagine business models, accelerate innovation, and maximize growth by leveraging digital technologies.

Coming to its financial performance, the company has delivered a top-line growth of 28% CAGR over a 5-year period and a net profit CAGR of 25%.

The last 5-year average ROE has been 27%.

FY25 was a period of consolidation with growth in key verticals, top customers, and significant progress in AI-leveraged deals.

However, momentum slowed in the second half of the year due to macro uncertainties. Specifically, for Q4 FY25, while there was anticipation for continued growth based on healthy order books from Q2 and Q3, ramp-ups for many deals were delayed, and some expected deals shifted to Q1 FY26.

Additionally, the company had to pass on productivity benefits to a specific client, an initiative that was completed in Q4 FY25 and will not impact Q1 FY26.

Despite the sequential revenue decline in Q4, LTIMindtree was able to maintain its margins due to improved operational efficiencies.

The current demand environment is primarily driven by clients seeking cost savings, vendor consolidation, and tech modernisation, especially in light of the AI economy.

Looking ahead, LTIMindtree's management is "reasonably confident" of achieving growth in Q1 FY26.

For FY26, the endeavour is to achieve "industry-leading growth," although specific numerical guidance is not provided due to ongoing macro uncertainties, and management prefers to comment on a quarter-by-quarter basis for now.

Regarding the order book, LTIMindtree recorded a robust total order inflow of US$ 6 bn for FY25, marking a 6.1% YoY increase, and it's confident that the order book will be higher in FY26 than in FY25.

It anticipates announcing new large deals, particularly in the retail sector, which will contribute to its confidence for Q1 FY26. The company notes a shift in demand towards cost savings, vendor consolidation, and tech modernisation, particularly driven by the evolving AI economy.

For more details, check out LTIMindtree's financial factsheet.

#3 Varun Beverages

On number three comes Varun Beverages, a key player in the beverage industry and the second-largest franchisee of PepsiCo globally, outside of the US.

The company is responsible for producing and distributing a wide range of carbonated soft drinks (CSDs), along with a large selection of non-carbonated beverages (NCBs), and packaged drinking water, all sold under trademarks owned by PepsiCo.

Its extensive portfolio includes well-known PepsiCo brands such as Pepsi, Sting, Mountain Dew, 7UP, Mirinda, Slice, Tropicana Juices, Gatorade, and Aquafina.

Coming to its financial performance, the company has delivered a top-line growth of 23% CAGR over 5 years and a net profit CAGR of 41%.

The last 5-year average ROE has been 25%.

The strong volume growth, particularly the organic growth in India and the successful integration and growth in South Africa, which achieved 141 m cases over the trailing four quarters, helped in achieving this growth.

Looking ahead, Varun Beverages' management expects to achieve double-digit volume growth for the current year.

The Indian beverage market is significantly under-penetrated and has immense headroom for growth, supported by rising per capita incomes, accelerating urbanization, expanding electrification, and improving cold chain infrastructure.

The guided capex spend for the current year is Rs 31 bn, with around Rs 9 bn still remaining to be spent.

New greenfield production facilities in Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh) have commenced operations, significantly enhancing capacity. Two other greenfield production facilities in Bihar and Meghalaya are on track for the 2025 season.

The company is actively increasing its go-to-market efforts and deploying significantly more visi-coolers and chilling equipment this year to expand reach to retail outlets.

For more information, check out Varun Beverage's financial factsheet.

#4 Avenue Supermarts

Fourth on the list is Avenue Supermarts, operating as DMart, is a value retail chain in India offering a wide array of products across three key categories: Foods, Non-Foods (FMCG), and General Merchandise & Apparel.

The company employs a cluster-based expansion strategy, prioritizing new store openings in existing markets but also expanding into new states. Additionally, Avenue Supermarts Limited operates an e-commerce venture named DMart Ready.

Coming to its financial performance, the company has delivered a top-line growth of 19% CAGR over 5 years and a net profit CAGR of 16%.

The last 5-year average ROE has been 22%.

Looking ahead, DMart continues to add new stores in FY25, and plans to continue opening around 40-50 stores annually, with an aspiration to increase this to 60-70 stores per year in the next two to three years.

The pace of store additions can be lumpy due to various factors including external challenges and internal bottlenecks.

Operating expenses can increase due to wage inflation and conscious investments in building talent and capabilities for the company's long-term future and to manage its growing scale.

For DMart Ready, the company consciously opted for a slower expansion strategy focusing on consolidating its model and achieving high throughputs in existing large cities, rather than rapid city additions.

The company believes its value proposition differentiates it from quick commerce players, which focus on convenience, and sees both models coexisting in the market.

For more information, check out Avenue Supermarts' financial factsheet.

#5 Mazagon Dock Shipbuilders

Fifth on the list is Mazagon Dock Shipbuilders a shipbuilding company and a PSU under the Ministry of Defence, holding the "Navratna" status.

It's the "Shipbuilders to the Nation" and is India's sole shipyard capable of constructing destroyers and conventional submarines for the Indian Navy, as well as manufacturing corvettes in India.

Beyond defence, it has diversified its operations into the offshore segment, securing significant contracts from ONGC, and is also involved in commercial shipbuilding, including multi-purpose vessels for European clients.

The company boasts a substantial infrastructure, including three dry docks, three wet basins, three big slipways, and six small slipways, with the capacity to concurrently build 11 submarines and 10 major warships.

Coming to its financial performance, the company has delivered a top-line growth of 18% CAGR over a 5-year period and a net profit CAGR of 38%.

The last 5-year average ROE has been 28%.

Looking ahead, Mazagon Dock Shipbuilders has provided a clear outlook on its future performance, expecting margins and profitability to significantly improve in the coming years as major orders materialise.

The company anticipates an annual revenue growth rate of approximately 8-10%, though it noted this might temporarily slow down as new large contracts like the P-75 and P-75(I) submarines will initially involve design and finalisation work before execution picks up.

However, it also estimates that growth could be around 10-15% and will increase as the projects progress.

Regarding profitability, while the company reported high PBT margins of 26-27% in the recent financial year. This was driven by the late-stage delivery of profitable projects like Project 15 Bravo, management cautions that this is not a sustainable standard for the shipbuilding industry worldwide, where margins typically hover around 15%.

Therefore, its guidance for PBT margins in the medium term is set at around 15%, although it's hopeful of achieving better results, especially with major upcoming orders.

The order book is projected to dramatically increase from the current Rs 320 bn to more than Rs 1.25 trillion (tn) if the P-75 additional submarines and the P-75(I) submarines contracts are signed quickly, which it expects to happen this financial year.

Furthermore, there is a theoretical possibility of reaching an order book of Rs 2-2.5 tn if it also secures upcoming competitive bids for projects like the 17 Bravo frigates and the MCMV project, for which RFPs are expected in the coming months.

For more information, check out Mazagon Dock Shipbuilders' financial factsheet.

Snapshot of Top Growth Companies on Equitymaster's Stock Screener

Here's a table that shows the top growth companies across various parameters.

Conclusion

India's growth story is just getting started and the companies on this list are prime examples of how strong fundamentals can amplify the power of compounding.

But growth investing works best when it's grounded in quality.

Therefore, it's important to conduct thorough research on financials and corporate governance before making investment decisions, ensuring they align with your financial goals and risk tolerance.

Happy investing.

Disclaimer: This article is for education purposes only. It is not a recommendation and should not be treated as such. Learn more about our recommendation services here...