5 Tariff-Free Stocks to Safeguard Your Portfolio from Tariff Risks

Trump has been flip-flopping on tariffs so often that trying to base your investment strategy on his latest comments is like building on wet sand.

One week, he's threatening new duties, the next he's walking them back, and markets swing in both directions.

What this really means is simple: tying your portfolio to tariff announcements is a recipe for frustration and probably losses.

The smarter move is to look for companies whose business models sidestep tariff risks entirely.

Here are 5 stocks that do exactly that.

Take a look...

#1 Bharti Airtel

First on the list is Bharti Airtel, a global telecommunications solutions provider, deeply entrenched across 17 countries in both Asia and Africa, connecting over 590 million (m) customers.

In India, it offers a broad range of services including 2G, 4G, and 5G wireless connectivity, mobile commerce, fixed line services, home broadband, direct-to-home (DTH), and comprehensive enterprise solutions.

Beyond India, Airtel operates in 14 African countries, where it maintains a position among the top three mobile operators in most of those markets.

India's mobile segment contributes between 55% and 65% of its consolidated revenue, while the Africa business accounts for 20% to 25%, and the recently consolidated Indus Towers business adds another 15% to 20%.

The enterprise solutions business makes up 10% to 15%, with the remainder coming from home broadband services and digital TV.

This diversified approach helps Airtel mitigate any potential negative impacts from a slowdown in any single business segment.

Since the company doesn't have any exposure to the US in terms of export of any goods, it's immune to Trump's tariffs.

Coming to its financial performance, the company has delivered a top-line growth of 14% compounded annual growth rate (CAGR) over a 3-year period and a net profit CAGR of 83%.

The last 3-year return on equity (ROE) has been 17%.

Looking ahead, revenue and profits are expected to continue their strong trajectory. India's economy is projected to grow consistently and Airtel will benefit from the growth.

The Africa business continues to deliver strong constant currency growth, which is a significant part of its diversification.

In the home broadband segment, it sees the market doubling in the medium term, from 45 m to 80-90 m homes, and it's pushing hard to capture that by expanding fixed wireless access and fibre-to-the-home aggressively.

When it comes to margins and profitability, the focus is on driving absolute profit growth rather than just singular margin percentages, particularly in the B2B segment where newer digital services have faster growth but slightly lower margins.

However, the overall earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are expected to improve.

For its mobile business, average revenue per user (ARPU) continues to be an industry leader, but management firmly believes further ARPU growth is essential for the industry's financial stability and to achieve respectable returns on capital.

It is aiming for an ARPU of Rs 300. The underlying drivers for ARPU growth, like feature phone to smartphone upgrades and prepaid to postpaid shifts, remain intact.

Capex is guided to be lower in FY26 than FY25, continuing a moderation trend seen after significant 5G rollouts.

For more details, check out Bharti Airtel's financial factsheet.

#2 Apollo Hospitals Enterprise

Coming second on the list is Apollo Hospitals, a healthcare service provider in India.

It began in 1983 as India's first corporate hospital, and since then, it has grown into a vast network.

The company now offers a full spectrum of healthcare services, including a large chain of hospitals, pharmacies, primary care clinics, and diagnostic centres across India.

Apollo's business is primarily domestic. It's about providing healthcare services within India. Its contribution from exports is very small, less than 1% of its total turnover.

This means the company isn't vulnerable to tariffs imposed on cross-border trade.

Coming to its financial performance, the company has delivered a top-line growth of 14% CAGR over a 3-year period and a net profit CAGR of 20%.

The last 3-year ROE has been 16%.

Looking ahead, the company is confident in sustaining a strong growth trajectory in FY26.

It plans to continue focusing on volume growth while strengthening high-end specialties like Cardiac Sciences, Oncology, and Neurosciences, which is expected to enhance revenue growth and margin profiles.

The Healthcare Services business is expected to achieve low-to-mid-teen growth. Healthcare Services margins are expected to remain robust at around 24% for FY26.

Existing units are anticipated to continue generating strong cash flows and margins. A calibrated approach to opening new beds will help minimise any negative impact.

The operating margin of the healthcare services business has sustained just over 24% in the last two fiscals and is expected to largely continue at these levels.

The company plans to add approximately 3,600-3,700 beds over the next 3-4 years, alongside annual maintenance capital expenditure of Rs 4-5 billion (bn).

This means a capital expenditure of Rs 13-15 bn per annum in the near to medium term.

The Average Revenue Per Occupied Bed (ARPOB) is expected to grow at a CAGR of 6-7% going forward, driven by increased surgical volumes, a higher complexity case mix, and incremental improvements in the payer mix.

The company aims to improve group-wide occupancy to 72-73% before the new beds become fully operational.

For more details, check out Apollo Hospitals Enterprise's financial factsheet.

#3 Central Depository Services (India)

At number three comes CDSL, or Central Depository Services (India), which operates as a core market infrastructure institution in India, dedicated to providing convenient, dependable, and secure depository services to everyone participating in the market.

CDSL makes it possible to hold securities electronically, or in a "dematerialized" form, and facilitates security transactions through simple book entries via its Depository Participants, who act on behalf of investors.

The company's platform allows investors to hold a wide range of assets, like equities, bonds, mutual fund units, and government securities, all in electronic format.

CDSL serves a diverse set of market players, including depository participants, investors, companies issuing securities, asset management companies, and clearing corporations.

Its revenue primarily comes from annual charges paid by listed companies and transaction fees collected from its Depository Participants.

Beyond these core services, CDSL also offers e-voting, updates for email addresses for issuers, and e-notice solutions.

It also extends its reach through its subsidiaries: CDSL Ventures (CVL), which handles KYC and Registrar and Transfer Agent services; Centrico Insurance Repository (CIRL), focused on electronic insurance policies; and Countrywide Commodity Repository (CCRL), which deals with electronic commodity warehouse receipts.

CDSL's business model and operational focus make it very resilient. The company is fundamentally a domestic market infrastructure institution, operating entirely within the Indian capital markets and serving Indian investors and businesses.

So, its operations are not directly exposed to international trade policies or global tariff fluctuations.

Coming to its financial performance, the company has delivered a top-line growth of 25% CAGR over a 3-year period and a net profit CAGR of 19%.

The last 3-year ROE has been 30%.

Looking ahead, the company believes there's ample room for growth, given that only about 7% of the Indian population currently participates in the securities market.

The management states that the intent is not to achieve a particular EBITDA margin. Instead, the EBITDA margin is considered a "byproduct" of providing the right platform and value proposition to the market over the long term.

The trend of private limited companies dematerialising shares is expected to continue as they become eligible under Ministry of Corporate Affairs regulations.

For more information, check out Central Depository Services (India)'s financial factsheet.

#4 Dr Lal PathLabs

Fourth on the list is Dr Lal PathLabs, primarily known for its comprehensive diagnostic services.

The company, which was founded in 1949, has grown significantly over 75 years to become the largest diagnostics chain in the country based on both revenue and geographical footprint.

It conducts a wide array of pathological investigations, including biochemistry, haematology, histopathology, microbiology, and immunology, and also provide radiology and cardiology tests.

Its services cater to a diverse clientele, including individual patients, hospitals, other healthcare providers, and corporate clients.

The company's business model is overwhelmingly domestic, with exports making up a very minor portion, just 1.18% of its total turnover.

The vast majority of Dr Lal PathLabs' operations and supply chain are confined within India, making it highly resilient to international tariff disruptions or trade wars.

Coming to its financial performance, the company has delivered a top-line growth of 6% CAGR over a 3-year period and a net profit CAGR of 12%.

The last 3-year ROE has been 20%.

Looking ahead, for FY26, management projects revenue growth to be between 11% and 12%. This growth is expected to be volume-led.

The company wrapped up FY25 with an EBITDA margin of 28.3%. Looking ahead to FY26, management anticipates EBITDA margins to hover around 27%.

This slight decrease is a conscious decision. The company plans to reinvest in the business, specifically in new geographies, talent, and digital initiatives.

The management believes this investment is key for continued growth, even as operational leverage and efficiency gains are expected to come from the maturing of new centres.

The overall annual margin for FY26 could still be slightly better than initial expectations.

It's deploying AI across multiple use cases like cancer diagnostics, autoimmunity, antibiotic sensitivity, and haematology.

Maintenance capital expenditure is expected to be around Rs 600-700 m for FY26, with no plans for new reference labs in FY26.

For more information, check out Dr Lal PathLabs' financial factsheet.

#5 IndiaMART Intermesh

Fifth on the list is IndiaMART Intermesh. It's India's largest online marketplace designed to connect businesses with other businesses.

Think of it as a vast digital platform where buyers can discover products and services, and suppliers can showcase their offerings and find potential customers.

Their business model is largely based on subscriptions, giving suppliers access to a suite of digital tools like web storefronts, lead management systems, and smart, AI-driven matchmaking that helps them connect with high-intent buyers.

IndiaMART aims to make doing business easy, particularly for the millions of MSMEs across India, by bringing them online and streamlining their operations.

It serves a huge network, boasting over 211 m registered buyers and 8.4 m registered suppliers, listing 119 m products across nearly a 100,000 categories and 56 industries.

Beyond their core marketplace, they also strategically invest in various business enablement solutions like accounting software, logistics, and HR tech to create a comprehensive ecosystem for MSMEs.

As the company's primary focus is the domestic B2B market within India, and exports contribute a minimal 0.24% to their total turnover, the company is pretty stable against international trade policy shifts such as tariffs.

Coming to its financial performance, the company has delivered a top-line growth of 23% CAGR over a 3-year period and a net profit CAGR of 21%.

The last 3-year ROE has been 20%.

Looking ahead, the company aims for around 10% YoY growth for collections and revenue. While customer additions have been slower recently, all current growth is coming from an increase in ARPU.

The long-term goal is a healthy mix of 10% ARPU growth and 10% customer growth which could sustain multi-decade expansion, much like the company's past 30 years.

EBITDA margins have been elevated, hovering around 38-40%. The management expects margins to gradually normalise to a sustainable range of 32-35% once they successfully address customer churn and accelerate gross customer additions.

This anticipated normalisation accounts for increased investments in customer acquisition as they return to a growth mode.

For more information, check out IndiaMART Intermesh's financial factsheet.

Conclusion

The tariff drama will keep making headlines, and markets will keep reacting.

That's unavoidable. But what you can control is where your capital goes.

By focusing on companies with business models insulated from trade disputes, you sidestep unnecessary volatility and give your portfolio a stronger foundation.

The five stocks here aren't immune to every risk, but they're built to weather tariff shocks far better than most.

These stocks can give your portfolio breathing room from tariff shocks, but that doesn't mean you invest in these stocks blindly.

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...