With an estimated GDP growth of about 6.5 per cent in 2024-2025, India is one of the world’s fastest-growing major economies, and it is at a turning point in its history.
Due to favourable government policies (like production-linked incentives and infrastructure spending), robust domestic demand, and the changing global supply chain landscape, industries are showing strong potential to outperform. These include various sectors that have a huge potential for growth along with the Indian market, and within it lie stocks that are either sector leaders or have a high growth trajectory in their particular segment.
This article provides a path for investors looking to take advantage of India’s upcoming growth journey by highlighting five of these high-growth industries and identifying the top stocks that have the potential to lead the sector in terms of share price growth or business growth.
1. Semiconductor industry.
India, wanting to be a part of the global semiconductor market, initiated a mission called ISM, the India Semiconductor Mission (ISM), that aims to build a strong semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design, while serving as the nodal agency for the efficient and seamless implementation of semiconductor and display schemes. This showcases the growth trajectory of the Indian semiconductor industry, and the stock in focus here would be:
Kaynes Technology India Ltd
Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer space, nuclear, medical, railway, Internet of Things (“IoT”), information technology (“IT”), and other segments.
With a market cap of Rs 39,440 crore, the shares of Kaynes Technology Ltd are trading at a price of Rs 5,883.65 and have given a return of about 700 per cent over the last 5 years. The shares are trading at a PE of 104, whereas its industry PE is 34.8
Kaynes Semiconductor
Kaynes Semicon’s Sanand facility marks a significant stride in advancing India’s semiconductor manufacturing ecosystem. It supports diverse packaging technologies from legacy (QFN, TO) to advanced and semi-advanced (BGA, flip chip, 2D–3D, and co-packaged optics). Aligned with the India Semiconductor Mission (ISM), the plant focuses on power electronics for automotive, healthcare, industrial, consumer, and IoT applications, driving self-reliance, innovation, and global competitiveness in semiconductor design and production.
Kaynes Circuits
Kaynes Circuits’ Chennai facility plays a key role in India’s drive for PCB manufacturing self-reliance. With a capacity of 5 million sq. MT annually, it produces multilayer rigid, rigid-flex, HDI, and flexible PCBs up to 16 and 74 layers, respectively. Serving sectors like telecom, medical, EVs, defence, smartphones, and more.
2. Defence sector
India has one of the world’s strongest military forces and a strategically vital defence sector. The major segments include military aircraft, naval vessels, and missile systems, followed by rotorcraft, submarines, artillery, communications, and electronic warfare. Leading defence manufacturers include Bharat Electronics Ltd. (BEL), Hindustan Aeronautics Ltd. (HAL), and Bharat Earth Movers Ltd. (BEML).
In the FY26 Union Budget, the Ministry of Defence received Rs 6.81 lakh crore (US$78.7 billion), which is a 9.5 per cent YoY increase. Of this, Rs 1.8 lakh crore (US$20.8 billion) is for capital spending on new weapons, aircraft, and warships, while Rs 7,146 crore (US$825.7 million) is marked for the Border Roads Organization (BRO).
BEL – Bharat Electronics Ltd
Bharat Electronics Ltd manufactures and supplies electronic equipment and systems to the defence sector, and the company also has a limited presence in the civilian market. Its portfolio includes radar and fire control systems, weapon systems, communication, network-centric systems (C4I) and more.
With a market cap of Rs 3,04,232 crore, the shares of Bharat Electronics Ltd have given a return of more than 1000 per cent over the last 5 years. The shares are trading at a PE of 53.4, whereas its industry PE is 66.3
Capacity Expansion and Capex
The Defence System Integration Complex (DSIC) in Andhra Pradesh spans approximately 920 acres and involves an initial capital expenditure of around Rs 1,400 crore over the next 3 to 4 years. The facility is primarily focused on the QRSAM programme, encompassing system integration, testing, validation, and qualification activities. Additionally, the complex will support the development of unmanned systems, missile systems, and military radars. As advanced defence programmes like Kusha progress, the site offers significant scalability for future investments and expansion.
As of 31 October 2025, the order book stands at Rs 75,600 crore, with an order inflow of Rs 14,750 crore, along with “R&D investments of more than Rs 1,600 crore, and capex is more than Rs 1,000 crore with a defence and non-defence business ratio of 90 per cent to 10 per cent.” Such capital expenditure (capex) and research and development (R&D) plans will be beneficial for the company’s growth in defence and help it continue its lead in the segment.
3. Transformer industry
The India Transformer Market is projected to grow from USD 3 billion in 2025 to USD 4.47 billion by 2030, reflecting a CAGR of 8.33 per cent during 2025-2030. This growth is driven by rapid grid modernisation, rising power demand, and strong government investments. Around Rs 17 lakh crore has been invested in transmission infrastructure between 2016 and 2024, with similar projects underway. Peak electricity demand has increased from 130 GW in 2014 to 243 GW in 2024 and is expected to surpass 400 GW by 2030.
Voltamp Transformers
Voltamp Transformers Ltd is a Baroda-based company and is mainly into the manufacturing of various types of oil-filled power & distribution transformers of various classes.
With a market cap of Rs 8,178 crore, the shares of Voltamp Transformers Ltd are trading at a price of Rs 8,083 and have given a return of 616 per cent over the last 5 years. The shares are trading at a PE of 25, whereas its industry PE is 47.5 The revenue from operations for the company stood at Rs 483 crore in Q2 FY26 when compared to Rs 398 crore in Q2 FY25, increasing by about 21.33 per cent YoY. .
The net profit remained almost the same on a YoY basis and gave a growth rate of 4 per cent when you compare the Q2 FY26 profit at Rs 79 crore to Rs 76 crore in Q2 FY25.
The company holds a healthy order book of Rs 1,129 crores supported by a capacity which is equivalent to 9,856 MVA, along with an installed capacity of 14,000 MVA, and the company has also stated that “Sufficient market demand exists to support full capacity utilisation in FY 2025–26, and the Company will continue to pursue only profitable growth opportunities, with a strong emphasis on maintaining a healthy balance sheet.”
4. Healthcare industry
Over the past few decades, India’s healthcare sector has seen major progress driven by improvements in infrastructure, technology, and accessibility. Guided by the Sustainable Development Goals (SDGs) and a strong focus on strengthening public health systems, the country has made notable strides in expanding healthcare reach and quality. Despite ongoing challenges such as fragmented healthcare delivery, coordinated initiatives by the Government of India, along with state governments and key stakeholders, have helped overcome many of these issues and continue to advance the nation’s healthcare landscape.
Apollo Hospitals Ltd
Apollo Hospitals is the nation’s first corporate hospital and is acclaimed for pioneering the private healthcare revolution in the country. The company has emerged as Asia’s foremost integrated healthcare services provider and has a robust presence across the healthcare ecosystem, including hospitals, pharmacies, primary care & diagnostic clinics and several retail health models.
With a market cap of Rs 1,06,299 crore, the shares of Apollo Hospitals Enterprise Ltd have given a return of 215 per cent over the last 5 years. The shares are trading at a PE of 63.5, whereas its industry PE is 55.2
Apollo Hospitals has outlined a strong growth outlook driven by both its existing network and new capacity additions. The hospital segment is expected to grow by 13 to 14 per cent from the current network, with an additional 10 per cent growth from new beds over the next 2 to 3 years. Margins are projected to expand to 25 per cent plus, with a temporary 100 bps dip anticipated during the ramp-up of new hospitals in FY27, followed by a quick breakeven within 12 months.
Average revenue per patient (ARPP) is likely to benefit from 4 to 5 per cent tariff hikes and a richer case mix from international patients, particularly from regions like Congo. The share of international revenue is expected to rise from 5 per cent in FY25 to 7 per cent in FY26 and 10 per cent in FY27, supported by higher patient inflow and payer diversification.
5. Green energy sector
India stands at a pivotal moment in its journey toward a sustainable and inclusive energy future. As the world’s most populous nation and a rapidly expanding economy, the goal of reaching net-zero emissions by 2070 demands swift action through supportive policies, technological innovation, and systemic reforms. With an installed power capacity of 462 GW as of December 2024, nearly 45 per cent derived from renewable sources, India’s energy transition is vital for enhancing energy security, reducing climate risks, and driving economic growth, positioning it as a global frontrunner in green energy development.
Waaree Energies
Waaree Energies Limited is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 18.7 GW and 5.4 GW of cell capacity. It also undertakes EPC projects through its group companies. With a growing global presence, Waaree plays a major role in accelerating clean energy adoption.
With a market cap of Rs 91,651 crore, the shares of Waaree Energies Ltd are trading at Rs 3,186 and have given a return of 17 per cent over the last 1 year. The shares are trading at a PE of 63.5, whereas its industry PE is 55.2
The company remains confident about its FY26 outlook, supported by strong performance and steady progress on its expansion plans. It delivered a record quarterly production of 2.64 GW in Q2 and expects the second half of the year to be even stronger. Revenue for the quarter touched Rs 6,226 crore, while EBITDA came in at Rs 1,567 crore, helped by a solid order book of around Rs 47,000 crore and a promising pipeline of over 100 GW, along with a Rs 25,000 crore-plus capex in segments like storage cell, BESS, inverter, electrolyser and more.
On the execution side, work on ingot-wafer, cell, and module facilities is moving as planned, with cell production set to ramp up further in the coming months. New areas such as inverters, BESS, and green hydrogen are also progressing well. With a large part of its remaining module capacity expected to be operational by early 2026, the company has reaffirmed its FY26 EBITDA guidance of Rs 5,500–6,000 crore, reflecting confidence in its growth momentum.
Written by Leon Mendonca
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