3 Profitable Stocks to Watch: Vedanta, Hindustan Zinc & Tech Mahindra Lead with High Operating Margins
3 Profitable Stocks : In a market clouded by uncertainty and global economic turbulence, a few Indian companies are standing tall—powered by their robust operating profit margins. Investors looking for resilient businesses that perform well even in volatile times would do well to keep an eye on Vedanta, Hindustan Zinc, and Tech Mahindra. These three companies have posted impressive quarterly results in Q4 FY25, indicating solid profitability and operational efficiency.
Let’s dive deeper into how these companies are excelling, what’s fueling their margins, and why they deserve a spot on your watchlist.
1. Hindustan Zinc: Shining with a 53% Operating Profit Margin
Hindustan Zinc Limited, a key player in the mining and metals space, has set a new benchmark in profitability. The company recorded an astounding 53% operating profit margin in Q4 FY25, up from 48% in the previous year. This is one of the highest margins in the Indian corporate landscape, signaling efficient operations and strong demand for its products.
The company’s Q4 FY25 revenue stood at Rs 9,041 crore, a 19.75% rise from Rs 7,550 crore in Q4 FY24. More impressively, its net profit surged by 46% to Rs 2,976 crore. With strong global and domestic demand for zinc, lead, and silver, Hindustan Zinc is positioned well to maintain momentum.
2. Tech Mahindra: A Tech Titan with Expanding Margins
Tech Mahindra has shown that even in a highly competitive IT services industry, consistent profitability is possible. The company improved its operating margin from 9% in Q4 FY24 to 14% in Q4 FY25, thanks to digital transformation initiatives, cost efficiencies, and robust demand for cloud, AI, and cybersecurity services.
Its revenue for Q4 FY25 was Rs 13,384 crore, up 4% YoY, while net profit jumped 72% to Rs 1,142 crore. These figures underline the company’s strong execution and margin expansion, even in a low-growth environment. Tech Mahindra’s strategic focus on automation, AI, and enterprise digitalization is clearly paying off.
3. Vedanta: Diversified Growth with 28% Margin
Vedanta Limited, a diversified natural resources powerhouse, posted an impressive 28% operating profit margin in Q4 FY25—up from 25% in Q4 FY24. This improvement comes on the back of strong commodity prices, operational improvements, and its focus on cost discipline across verticals.
With Rs 40,455 crore in revenue, a 14% increase YoY, Vedanta’s net profit more than doubled to Rs 4,961 crore in Q4 FY25. Its extensive portfolio—including zinc, copper, aluminum, and oil & gas—makes Vedanta a strong bet for those looking to invest in India’s growing infrastructure and energy sectors.
Financial Snapshot: Operating Profit Margin Leaders – Q4 FY25
| Company | Revenue (Q4 FY25) | Net Profit (Q4 FY25) | Operating Profit Margin (Q4 FY25) | YoY Margin Change |
|---|---|---|---|---|
| Hindustan Zinc | ₹9,041 Cr | ₹2,976 Cr | 53% | ↑ from 48% |
| Tech Mahindra | ₹13,384 Cr | ₹1,142 Cr | 14% | ↑ from 9% |
| Vedanta | ₹40,455 Cr | ₹4,961 Cr | 28% | ↑ from 25% |
Why Do Operating Margins Matter?
Operating profit margin is a key indicator of a company’s efficiency and ability to convert sales into profits. Higher margins often reflect better cost control, pricing power, and overall business strength. Companies with strong and rising operating margins tend to be more resilient during downturns and more rewarding for long-term investors.
What’s Driving These Margins?
- Hindustan Zinc is benefiting from firm commodity prices, particularly in zinc and silver, and efficient mining operations.
- Tech Mahindra is leveraging the digital wave—riding high on AI, automation, and enterprise digital transformation.
- Vedanta continues to benefit from its diversified resource base and cost rationalization across segments.
Q&A: Quick Insights for Readers
Q1: Which stock posted the highest operating profit margin in Q4 FY25?
A: Hindustan Zinc, with a 53% operating margin.
Q2: How much did Vedanta’s net profit grow in Q4 FY25?
A: Vedanta’s net profit grew by 118% YoY to ₹4,961 crore.
Q3: Why is Tech Mahindra’s margin improvement significant?
A: It improved from 9% to 14%, driven by better digital solutions demand and operational efficiency.
Q4: What makes these companies attractive in volatile markets?
A: Strong operating margins indicate robust financial health and the ability to withstand market fluctuations.
Q5: Are these stocks suitable for long-term investment?
A: Yes, companies with rising margins and strong fundamentals often deliver solid long-term returns.
Final Thoughts
If you’re scanning the market for high-quality stocks with strong profit-making ability, Vedanta, Hindustan Zinc, and Tech Mahindra should be on your radar. With soaring operating margins, consistent growth, and strategic execution, these companies offer a mix of stability and potential for wealth creation. Keep them on your watchlist—these may be the steady performers in your portfolio amid a volatile market.
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