Synopsis:
The articles focus on large-cap stocks with a debt-to-equity ratio below 1 across various sectors, including IT, FMCG, cables, and automobiles.
A debt-to-equity ratio below 1 indicates a company primarily uses its own funds rather than debt, signalling financial stability and lower risk. Large-cap firms with low debt relative to equity are generally considered secure, relying on internal capital to support sustainable long-term growth.
The stocks listed below have a debt-to-equity ratio of less than 1:
1. Tata Consultancy Services Limited
Tata Consultancy Services, a member of the Tata Group, provides IT services, consulting, and business solutions. It offers an integrated, consulting-driven portfolio of business, technology, and engineering services powered by cognitive technologies. It operates across multiple regions, including North America, Latin America, the United Kingdom, Continental Europe, Asia-Pacific, India, and the Middle East & Africa.
With a market capitalization of Rs. 10,72,039 crores, the shares of Tata Consultancy Services Limited closed at Rs. 2,963, down by 0.26 percent from its previous day closing price of Rs. 2,970.70.
In Q2FY26, the company’s revenue rose marginally to Rs.65,799 crore from Rs.64,259 crore in Q1 FY25, and net profit rose to Rs.12,131 crore from Rs.11,955 crore. It has a return on equity of 52.4 percent and return on capital employed of 64.6 percent. With a P/E ratio of 21.30 versus the industry average of 29.96 and a debt-to-equity ratio of 0.10.
2. ABB India Limited
ABB India Limited is among the world’s top engineering companies, helping customers optimize electrical power usage and enhance industrial productivity. The company has a large installed manufacturing base and a nationwide marketing and service network. It provides utility and industrial clients with a comprehensive range of engineering products, solutions, and services in Automation and Power Technology.
With a market capitalization of Rs. 1,10,192 crores, the shares of ABB India Limited closed at Rs. 5,200, down by 0.23 percent from its previous day closing price of Rs. 5,212.
In Q1FY26, the company’s revenue rose to Rs.3,175 crore from Rs.2,831 crore in Q1FY25, and net profit declined to Rs.352 crore from Rs.443 crore for the same period. It has a return on equity of 28.8 percent and return on capital employed of 38.6 percent. With a P/E ratio of 61.67 versus the industry average of 50.17, and a debt-to-equity ratio of 0.01.
3. Hero MotoCorp Limited
Hero MotoCorp Limited is the world’s largest two-wheeler manufacturer. The company is involved in producing and selling motorized two-wheelers, spare parts, and related services. Its bike lineup includes models such as CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG, Passion, and Passion Pro.
With a market capitalization of Rs. 1,11,937 crores, the shares of Hero MotoCorp Limited closed at Rs. 5,595, up by 0.28 percent from its previous day closing price of Rs. 5,579.5.
In Q1FY26, the company’s revenue declined to Rs.9,728 crore from Rs.10,211 crore in Q1FY25, and net profit rose to Rs.1,706 crore from Rs.1,032 crore for the same time period. It has a return on equity of 23 percent and a return on capital employed of 30.3 percent. With a P/E ratio of 22.18 versus the industry average of 33.09 , and a debt-to-equity ratio of 0.04.
4. Polycab India Limited
Polycab India Limited is India’s largest manufacturer of wires and cables and a rapidly growing player in the fast-moving electrical goods sector. It is also involved in engineering, procurement, and construction projects. The company operates approximately 25 manufacturing plants across Gujarat, Maharashtra, Uttarakhand, and Tamil Nadu.
With a market capitalization of Rs. 1,12,146 crores, the shares of Polycab India Limited closed at Rs. 7,450, down by 1.69 percent from its previous day closing price of Rs. 7,578.
In Q1FY26, the company’s revenue rose to Rs.5,906 crore from Rs.4,698 crore in Q1FY25, and net profit rose to Rs.600 crore from Rs.402 crore. It has a return on equity of 21.4 percent and return on capital employed of 29.7 percent. With a P/E ratio of 51.68 versus the industry average of 23.56 and a debt-to-equity ratio of 0.02.
5. Varun Beverages Limited
Varun Beverages Limited, a diversified conglomerate with businesses in beverages, quick-service restaurants, dairy, and healthcare, is the world’s second-largest PepsiCo franchisee outside the US. The company manufactures and distributes a variety of carbonated soft drinks and non-carbonated beverages, including packaged drinking water.
With a market capitalization of Rs. 1,56,212 crores, the shares of Varun Beverages Limited closed at Rs. 461.90, up by 0.13 percent from its previous day closing price of Rs. 461.30.
In Q1FY26, the company’s revenue decreased to Rs.7,017 crore from Rs.7,197 crore in Q1FY25, and net profit rose to Rs.1,325 crore from Rs.1,262 crore for the same period. It has a return on equity of 22.5 percent and a return on capital employed of 24.8 percent. With a P/E ratio of 53.82 versus the industry average of 87.30, and a debt-to-equity ratio of 0.12.
Written by Jhanavi Sivakumar
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