Net Profit CAGR tells us how much a company’s profit grows each year on average. It shows steady growth over time, instead of just one good year. A high CAGR means the company is strong and growing consistently, helping investors find reliable stocks with good potential.

The top companies delivering high net profit CAGR are:

1. Vishal Mega Mart Limited

Vishal Mega Mart Limited is a large retail chain that provides a variety of products, from apparel and groceries to electronics and home necessities.The company has a market capitalization of Rs.71,230.23 crore, and closed at Rs.152.55, up by 1.40 percent from the previous close of Rs.150.45.

In Q1FY26, the company’s revenue from operations grew to Rs.3,140 crore from Rs.2,596 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.206 crore from Rs.150 crore in Q1FY25. The 3-year net profit CAGR is 47 percent.

Its return on equity is 10.5 percent, and return on capital employed is 13.1 percent. The company’s PE ratio stands at 103; the industry average is 77.95, which is expensive compared to its peer companies.

2. Lemon Tree Hotels Limited 

Lemon Tree Hotels Ltd is one of India’s leading hotel chains, ranking as the largest in the mid-priced segment and third overall. The company has a market capitalization of Rs.13,872.24 crore, and closed at Rs.175.10, up by 0.14 percent from the previous close of Rs.174.85.

In Q1FY26, the company’s revenue from operations grew to Rs.315.7 crore from Rs.268 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.48  crore from Rs.20 crore in Q1FY25. The 3-year net profit CAGR is 62 percent.

Its return on equity is 18.4 percent, and return on capital employed is 12.7 percent. The company’s PE ratio stands at 65.51; the industry average is 38.07, which is expensive compared to its peer companies.

3. Texmaco Rail & Engineering Limited 

Texmaco Rail & Engineering Limited is an engineering and infrastructure company. It manufactures rolling stock, hydro-mechanical equipment, and steel castings, and is also engaged in building railways, bridges, and other steel structures.

The company has a market capitalization of Rs.5,532.62 crore, and closed at Rs.138.50, down by 0.11 percent from the previous close of Rs.138.65. In Q1FY26, the company’s revenue from operations fell to Rs. 911 crore from Rs.1,088 crore in Q1FY25, and in Q1FY26, net profit decreased to Rs.29  crore from Rs. 59 crore in Q1FY25. The 3-year net profit CAGR is 128 percent.

Its return on equity is 9.09 percent, and return on capital employed is 13.6 percent. The company’s PE ratio stands at 25.46; the industry average is 36.80, which is cheaper compared to its peer companies.

4. Ashoka Buildcon Limited

Ashoka Buildcon Limited is a company that builds infrastructure projects on EPC and BOT models.Also, the company produces and sells ready-mix concrete. The company has a market capitalization of Rs.5,242.51 crore, and closed at Rs.186.75, up by 0.57 percent from the previous close of Rs.185.70.

In Q1FY26, the company’s revenue from operations decreased to Rs.1,887 crore from Rs.2,465 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.226.7  crore from Rs.157.9 crore in Q1FY25. The 3-year net profit CAGR is 50 percent.

Its return on equity is 55.2 percent, and return on capital employed is 39.9 percent. The company’s PE ratio stands at 2.97; the industry average is 20.72, which is cheaper compared to its peer companies.

5. Jamna Auto

Founded in 2008, Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC), registered with the National Housing Bank (NHB) since 2015, and engaged in offering a wide range of mortgage loan solutions.

The company has a market capitalization of Rs.4,303 crore, and closed at Rs.107.58, up by 0.37 percent from the previous close of Rs.107.45. In Q1FY26, the company’s revenue from operations grew to Rs. 2,616 crore from Rs. 2,209 crore in Q1FY25, and in Q1FY26, net profit increased to Rs. 583 Crore from Rs. 483 Crore. The 3-year net profit CAGR is 45 percent.

Its return on equity is 13.50 percent, and return on capital employed is 9.55 percent. The company’s PE ratio stands at 41.20; the industry average is 20, which is expensive compared to its peer companies.

Written by Jhanavi Sivakumar

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