Midcap Stocks Kalpataru, ITC Hotels, Waaree Eye Strong Growth

Three midcap companies, Kalpataru Projects International, ITC Hotels, and Waaree Energies, are positioning themselves for significant growth through capacity expansion, market entry, and strong order inflows. Their efforts highlight the ongoing momentum in India's midcap sector as investors look towards firms with solid growth trajectories and improving earnings prospects.

Kalpataru Projects International operates across multiple infrastructure segments including power transmission, buildings, water systems, railways, oil and gas pipelines, urban mobility, and highways. It maintains a global footprint, undertaking projects in various countries. The firm recently reported a record order book valued at ₹66,607 crore at the end of the first quarter of fiscal year 2027 (Q1FY27), signaling a strong pipeline of work ahead.

For Q1FY27, the company's consolidated revenue reached ₹6,408 crore, reflecting a 9% year-on-year increase after adjusting for specific business segments. Its earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 7% to ₹562 crore. Profit before tax surged 45% to ₹420 crore, while net profit climbed 46% to ₹312 crore. Management anticipates revenue growth of at least 15% for FY27, alongside an improvement in profit-before-tax margins by over 75 basis points.

Kalpataru plans to carefully pursue opportunities in metro rail, tunneling, pumped storage, nuclear power, and international roads and highways. Despite challenges such as geopolitical tensions in the Middle East and labor availability issues earlier in the fiscal year, project execution remained steady. The company expects to meet its order inflow target of ₹30,000 crore for FY27, driven by sustained demand in energy security and infrastructure development.

ITC Hotels recently spun off from ITC Ltd and became a separately listed entity in January 2025. It currently manages a portfolio of 156 hotels across more than 90 locations. ITC Hotels is pursuing an asset-light growth strategy primarily through management contracts and franchising rather than heavy capital investment in owned properties.

The company aims to expand its operational hotels to over 251 by 2031, increasing the number of available rooms from approximately 14,300 to 22,000. Within this, owned rooms are projected to grow from 5,700 to 7,500, while managed rooms will rise significantly from 8,600 to 15,000. This strategy is expected to fuel revenue growth while maintaining capital efficiency.

In Q1FY27, ITC Hotels’ consolidated revenue rose 15% year-on-year to ₹936 crore. Net profit advanced 36% to ₹182 crore. During this period, the company completed the acquisition of the Kumarakom resort and began extensive upgrades. Additionally, it signed eight new hotel contracts, expanding its managed hotel pipeline to 74 properties with over 7,200 rooms. Execution of this rapid expansion will be a key factor for investors to watch.

Waaree Energies is expanding manufacturing capacity throughout the solar energy supply chain. With approximately 26 gigawatts of module manufacturing capacity, Waaree positions itself as the largest non-Chinese solar module manufacturer globally. The company is scaling up its cell manufacturing at its Unn facility, expected to become fully operational within the current financial year, which will triple its cell-to-module integration and improve profitability.

Waaree is also extending upstream operations into ingots and wafers and increasing manufacturing capacity in the United States. Its new production lines in the US are set to begin commercial operations soon. Facilities producing transformers, electrolysers, and inverters are progressing as planned. The company anticipates that growing integration across the energy value chain and expanding structural demand will double the total addressable market from roughly $1 trillion today to about $2 trillion by 2030.

In Q1FY27, Waaree reported revenue of ₹7,932 crore, a 79.2% increase year-on-year. Operating Ebitda rose 44.4% to ₹1,440 crore with an 18.2% margin, while profit after tax grew 15.4% to ₹892 crore, maintaining an 11% margin.

Investor considerations for these midcap stocks include monitoring whether revenue growth leads to sustainable earnings and cash flow. While strong order books and expansion plans provide visibility, factors such as debt levels, competitive pressures, execution capability, and corporate governance also play critical roles in long-term performance. Valuations should be assessed carefully to ensure alignment with growth prospects.

These companies reflect broader trends in infrastructure development, hospitality sector expansion, and renewable energy manufacturing in India. Their growth ambitions coincide with increasing government focus on infrastructure investment, tourism development, and clean energy, which are expected to drive demand in these sectors over coming years.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.