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When it comes to investing, blue-chip stocks are often associated with established companies that have built a strong track record over the years. These companies typically have a large market presence, established businesses and a history of steady performance.
There is no fixed definition of a blue-chip stock, but the term generally refers to well-established companies that lead their respective industries.
However, even among large, established businesses, improving profitability can make a difference in their financial performance.
Here are four blue-chip stocks in India that have been expanding their margins.
It is one of the world's leading steel producers. The company has a diversified presence across the steel value chain and serves customers across several industries.
In India, Tata Steel’s product portfolio is divided into four broad segments: Automotive and Special Products; Industrial Products, Projects and Exports; Branded Products and Retail; and Services and Solutions.
The company offers a wide range of products, including hot-rolled, cold-rolled and galvanised steel, along with branded and value-added solutions for different end-use industries.
Over the past three years, Tata Steel has improved both its operating and net profit margins. Its operating profit margin rose from 10.5% in FY24 to 12.3% in FY25 and 15.4% in FY26. Meanwhile, its net profit margin improved from -2.1% in FY24 to 1.5% in FY25 and 4.7% in FY26.
It is one of the leading manufacturers of diesel and natural gas engines in the country. The company is one of the seven legal entities of the Cummins Group in India and operates across three key business segments: Engine, Power Systems and Distribution.
The Engine business manufactures engines ranging from 125 HP to 400 HP for on-highway commercial vehicles, as well as off-highway applications such as construction and compressors.
Its Power Systems business caters to a wider range of applications, with engines ranging from 700 HP to 4,500 HP for sectors including marine, railways, defence and mining.
Over the past three years, Cummins India has also improved both its operating and net profit margins. This indicates the company has strengthened its profitability during the period.
Its operating profit margin increased from 23.9% in FY24 to 24.3% in FY25 and 25.6% in FY26. Net profit margin also edged up from 19.1% to 19.2% and 19.4% over the same period.
Hindustan Aeronautics Ltd (HAL) is engaged in the design, development, manufacturing, repair, overhaul, upgrade, and servicing of a wide range of aerospace products. These include aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures.
The company primarily caters to the requirements of India's defence forces, including the Indian Air Force, Indian Army, Indian Navy, and Indian Coast Guard.
HAL's ongoing manufacturing programs include Su-30 MKI, LCA, and Do-228 aircraft, as well as ALH-Dhruv, Chetak, Cheetal, and LCH helicopters. The company also undertakes extensive repair and overhaul (ROH) programs for multiple aircraft platforms.
Over the past three years, HAL has also improved both its operating and net profit margins. Its operating profit margin rose from 38.3% in FY24 to 39.3% in FY25 and 40.8% in FY26. Net profit margin also increased from 25.1% to 27% and 27.5% over the same period.
In addition, HAL provides maintenance and lifecycle support services, currently overhauling 13 types of aircraft, helicopters, and engines.
Lupin is a leading pharmaceutical company with a strong presence in both the Indian and global markets. The company operates across the generics space and has a diversified portfolio covering branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs).
Lupin has a strong presence across several therapeutic areas, including cardiovascular, diabetes, respiratory, paediatric, gastrointestinal and anti-infective medicines.
The company operates across more than 100 countries, with key markets including the US, India, Europe and other emerging markets.
Over the past three years, Lupin has improved both its operating and net profit margins. Its operating profit margin rose sharply from 19.6% in FY24 to 24.1% in FY25 and 33.1% in FY26. Net profit margin also increased from 9.7% to 14.6% and 19.2% over the same period.
For these companies, the key factor to watch from here is whether margin improvement translates into stronger earnings over the coming quarters. Sustaining margins while continuing to grow revenue will be important for maintaining profitability.
Apart from margin trends, investors should also keep an eye on valuations, debt levels, cash flows and the broader outlook for each company’s business. These factors can provide a more complete picture as companies' financial performance evolves.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
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
Equitymaster is India's leading independent equity research platform, providing in-depth research and analysis on BSE- and NSE-listed companies since 1996. As a SEBI-registered Research Analyst [Registration No. INH000021128], Equitymaster covers the full spectrum of Indian equities — bluechip stocks, midcap stocks, smallcap stocks, and microcap stocks.<br><br> At the heart of Equitymaster's research philosophy are the principles of value investing — particularly the margin of safety and the primacy of investment over speculation. All research is produced by an independent team of SEBI-registered research analysts with vast experience in Indian financial markets, using detailed systems and processes developed entirely in-house.<br><br> With over 17 lakh readers across 72 countries, Equitymaster is one of India's leading equity research publications. Since 1996, the goal has remained the same — to deliver honest, unbiased, and credible equity research that helps Indian investors make better, more informed decisions.
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