A select group of Indian midcap companies delivered a sharp improvement in operating profitability during the June 2026 quarter, with eight stocks recording EBITDA growth of more than 80% year-on-year. The performance comes as corporate earnings showed signs of improvement after a relatively subdued period. 

Why EBITDA growth matters

EBITDA, or earnings before interest, tax, depreciation and amortisation, is widely used to assess a company's underlying operating performance. A sharp increase can indicate stronger sales, better margins, improved capacity utilisation, lower operating costs or a favourable change in product mix.

However, investors should not consider EBITDA growth alone when evaluating a stock. Debt levels, cash flow, valuation, margins and the sustainability of earnings growth also need to be examined.

Lloyds Metals stands out

Lloyds Metals and Energy was among the notable performers in the June quarter. The company reported consolidated revenue of about ₹7,354 crore for Q1 FY27, compared with ₹2,384 crore a year earlier. Consolidated profit also rose sharply to around ₹1,734 crore. 

On a standalone basis, Lloyds Metals reported EBITDA of ₹2,120 crore, representing approximately 172% year-on-year growth. The company attributed the strong performance to higher iron-ore production, increased pellet-plant utilisation and logistics efficiencies. 

HFCL also delivered a dramatic improvement

HFCL reported a major turnaround in Q1 FY27. Its EBITDA increased from ₹42.93 crore in the June 2025 quarter to ₹445.27 crore in June 2026, while revenue more than doubled to ₹1,915 crore. 

The company said demand across optical connectivity, telecom and defence businesses supported the quarter's performance.

Earnings recovery in focus

The broader June-quarter earnings season has shown improvement in corporate operating performance. Ambit Capital's analysis estimated that EBITDA growth for the NSE100, excluding oil and gas, could reach around 7% in the June quarter, while profit growth was expected at 10%. 

For investors, the bigger question is whether the strong quarterly numbers represent a temporary improvement or the beginning of a sustained earnings cycle.

Midcap stocks can offer significant growth opportunities, but they can also experience larger price swings than large-cap companies. Investors should therefore examine valuations and future earnings prospects rather than buying purely on the basis of one quarter's EBITDA growth.

Bottom line: The eight stocks highlighted for more than 80% EBITDA growth have attracted attention because of their strong June-quarter operating performance. But high EBITDA growth does not automatically mean a stock is undervalued or a “buy”; investors should assess the complete financial picture before taking a position.