Several new-age companies came with ambitious growth stories to the Indian stock market, but even their path has not been smooth. Some encountered high cash burn, extended losses, and fluctuating investor expectations post-listing.
Nevertheless, some are now demonstrating signs of better execution, increasing profitability or stronger operating performance. This has caused investors to pay more attention to the businesses behind the stocks, and not so much to the initial hype. Let us explore some of these new-age stocks providing better returns to investors.
What are new-age companies?
New-age companies are businesses that are based on technology-driven models, digital platforms, consumer behavioural shifts, or new industries. They span industries like food delivery, quick commerce, fintech, beauty, EV and online retail.
Compared to traditional businesses, many of these companies focused their attention on expansion and acquiring customers in their first few years. As they grow, investors start to seek sustainable revenue growth with growing margins, profitability and capital efficiency.
Some new-age stocks in India
There are several listed companies that symbolise India’s new-age business ecosystem. Let us discuss some of them.
Eternal
Eternal, which was earlier called Zomato, has businesses such as food delivery, quick commerce platform Blinkit, District, and Hyperpure. Its consolidated adjusted revenue rose 173% year-on-year to ₹20,648 crore in Q1 FY27, while the adjusted EBITDA jumped 223% to ₹555 crore.
Since its listing, investors have closely tracked the company’s business performance alongside movements in the Zomato share price. With the company’s transition to Eternal and expansion beyond food delivery, its valuation is now influenced by a broader set of businesses.
Nykaa
FSN E-Commerce Ventures, the parent of Nykaa, delivered a better Q1 FY27. The revenue went up by 29 per cent year-on-year to ₹2,782 crore, with a more than three-fold jump in net profit to ₹79.76 crore. EBITDA grew by 68% year-on-year as well. These figures demonstrate both a constant growth in business and an increase in profitability.
Paytm
One97 Communications, the parent company of Paytm, posted an operating revenue of ₹2,448 crores and a consolidated net profit of ₹220 crores in Q1 FY27. Profit increased 79% year-on-year, making it another example of a new-age business showing a significant shift in its financial performance.
Why invest in new-age tech stocks?
New-age companies can offer exposure to businesses in dynamic consumer markets and in fast-changing industries. They may offer a lot of growth potential, but they also present significant business and valuation risks.
Investors should therefore not focus only on recent share-price action. They should also assess revenue growth, profitability, cash generation, competitive risk, valuation, and the sustainability of the business model. Also, having a long-term view is crucial in order to build wealth over time.
Bottom line
Investing in new-age stocks is not just about chasing growth. It is about striving to get ahead of trends. If one assesses business models, growth, and financials carefully, it can help them make more informed decisions. For patient investors, the key is not simply waiting for a stock to rise.
It is understanding whether the underlying business is becoming stronger over time. The key for patient investors is not to just sit around and wait for a stock to turn around. It’s knowing if the business is strengthening over time or not.
