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Midcap stocks are drawing investor attention as companies expand into new markets, add capacity and build larger order books, setting the stage for potentially stronger earnings in the years ahead.
Kalpataru Projects International is benefiting from a record order book, ITC Hotels is pursuing an aggressive asset-light expansion, while Waaree Energies is expanding manufacturing capacity across the solar value chain.
Here are three midcap stocks with significant growth plans.
Kalpataru Projects is a diversified infrastructure engineering, procurement and construction company with operations spanning power transmission and distribution, buildings, water, railways, oil and gas pipelines, urban mobility and highways. It has an international presence and executes projects across several countries.
The company closed Q1FY27 with a record order book of ₹66,607 crore. Management has guided for 15% revenue growth in FY27 and an improvement in its profit-before-tax margin.
Consolidated revenue was ₹6,408 crore in Q1FY27. On a comparable basis, after adjusting for the base effect of its Brazilian business and road special-purpose vehicles, revenue increased 9% year-on-year.
Consolidated Ebitda rose 7% to ₹562 crore, while profit before tax increased 45% to ₹420 crore. Net profit rose 46% to ₹312 crore.
The company plans to selectively pursue opportunities in metro rail, tunnelling, pumped storage, nuclear power and international roads and highways.
Management said project execution remained resilient during the first four months of FY27 despite the Middle East conflict and initial labour-availability constraints. It also said demand across its end markets remains supported by spending on energy security, infrastructure and industrial development.
That has helped accelerate order intake, keeping the company on track to meet its ₹30,000 crore order-inflow target for FY27, management said.
The company has retained its guidance for at least 15% annualized revenue growth and more than 75 basis points of improvement in its profit-before-tax margin.
ITC Hotels operates 156 hotels across more than 90 destinations. The company was demerged from ITC Ltd and separately listed in January 2025.
Its expansion strategy is focused on an asset-light model, with growth coming largely through management contracts and franchising.
The company expects its number of operational hotels to increase from 156 currently to more than 251 by 2031. Operational rooms are expected to rise from about 14,300 to 22,000.
Within that portfolio, owned rooms are projected to increase from 5,700 to 7,500, while the managed portfolio is expected to reach 15,000 rooms from 8,600 currently.
ITC Hotels reported consolidated revenue of ₹936 crore in Q1FY27, up 15% year-on-year. Net profit rose 36% to ₹182 crore.
During the quarter, the company completed the acquisition of the Kumarakom resort, where a full-scale upgrade is underway. It also signed eight new hotels, taking its managed pipeline to 74 hotels with more than 7,200 rooms.
The pace of expansion makes execution a key factor for investors to monitor, particularly as the company scales its managed and owned portfolios.
Waaree Energies is expanding manufacturing capacity as it increases its presence across the solar and broader energy value chain.
The company has about 26 gigawatts of module manufacturing capacity and describes itself as the world's largest non-Chinese module manufacturer.
Its new cell manufacturing capacity at Unn is ramping up as planned and is expected to become operational during the current financial year. The company expects cell-to-module integration to increase roughly threefold, which it says should contribute to profitability in the coming quarters.
Waaree is also moving further upstream into ingots and wafers, while adding manufacturing capacity in the US. New US lines are expected to begin commercial production in the next few months, while its transformer, electrolyser and inverter facilities remain on track, the company said.
Management expects greater integration across the energy value chain, alongside structural demand growth, to expand the total addressable market from about $1 trillion currently to roughly $2 trillion by 2030.
Waaree Energies reported revenue from operations of ₹7,932 crore in Q1FY27, up 79.2% year-on-year. Operating Ebitda rose 44.4% to ₹1,440 crore, with a margin of 18.2%. Profit after tax increased 15.4% to ₹892 crore, with a margin of 11%.
Expansion plans and strong order books can improve visibility on future growth, but they do not by themselves guarantee higher shareholder returns.
Investors need to assess whether revenue growth translates into sustainable earnings and cash generation, while keeping an eye on debt, execution, competition and valuations. Corporate governance and the quality of management execution are also important considerations when evaluating individual stocks.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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