3 Midcap Growth Stocks with 25%+ CAGR in revenue and profit You Can’t Ignore
Meta Description: Discover 3 midcap growth stocks with 25%+ CAGR in revenue and profit, showing strong Q4 FY25 results and long-term consistency.
Short-term market noise may grab headlines, but wealth is created through long-term consistency. In both fitness and finance, this principle holds true. In this blog, we spotlight three Indian midcap companies that aren’t just riding temporary waves—they’ve been compounding steadily over the last few years. Their Q4 FY25 results prove that the momentum is far from over.
Let’s dive into these three midcap growth stocks that could be wealth-creators in your portfolio.
📈 1. Affle India (Apple 3i)
Affle is a tech-enabled marketing company with a proprietary consumer intelligence platform. It helps businesses:
- Acquire new users
- Engage through advertisements
- Retarget for conversions (even linking online ads to offline sales)
With operations in over 130 countries, Affle gets 73% of its revenue from India and emerging markets, and the rest from developed regions like the US and Europe.
🚀 Revenue Model:
Affle charges advertisers based on Cost Per Converted User (CPCU). Advertisers pay only when the platform delivers an actual conversion.
🧾 Key Financials:
- 3-Year Sales CAGR: 28%
- 3-Year Profit CAGR: 32%
- Q4FY25 YoY Profit Growth: 18%
- EBITDA Margin: Consistent at ~20%
- ROCE: >25%
🧠 Insight:
Its consistent profitability, strong margin profile, and scalable tech platform give Affle a structural advantage in the digital ad market. The digital ad industry in India is growing at 20%+ CAGR, and Affle is well-positioned to ride this growth wave, making it a standout performer among midcap growth stocks.
🏗️ 2. KFin Technologies
KFinTech is a tech-first financial services company offering transaction origination and processing services to:
- Mutual Funds
- Pension Funds
- Corporate Clients
They have over 100+ mutual fund and AMC clients, and the company is highly profitable with a capital-light business model.
💡 Moat:
KFinTech enjoys network effects. As more funds join the platform, its ability to cross-sell and retain clients increases. It also benefits from India’s rising SIP and mutual fund penetration.
📊 Key Financials:
- 3-Year Sales CAGR: 28%
- 3-Year Profit CAGR: 32%
- Q4FY25 YoY Profit Growth: 18%
- EBITDA Margin: 40%+
- ROCE: ~30%
- Zero Debt
🌐 Future Growth:
KFinTech is expanding into international markets like Malaysia while tapping into the NPS and insurance tech segments. With its asset-light scalability and compounding growth potential, it stands out as one of the promising midcap growth stocks.
🧪 3. Neogen Chemicals
Neogen Chemicals is a niche specialty chemicals manufacturer. It focuses on:
- Bromine and lithium-based compounds
- Applications in pharmaceuticals, agriculture, battery tech, and advanced intermediates
Neogen has long-term client relationships and supplies to global MNCs. It’s also part of the growing China+1 sourcing shift.
🔬 Product Edge:
The company has a strong edge in complex chemistries, giving it pricing power and entry barriers. It recently set up a new lithium battery compound plant, focusing on the future of energy tech.
🧾 Key Financials:
- 3-Year Sales CAGR: 30%
- 3-Year Profit CAGR: 25%
- Q4FY25 YoY Profit Growth: 22%
- EBITDA Margin: ~18%
- ROCE: ~20%
⚡ Trigger Ahead:
Neogen’s lithium battery play aligns with the EV and energy storage boom. This could unlock multi-year growth from FY26 onward.
📌 Final Words & Key Takeaways
Each of these midcap companies—Affle India, KFin Technologies, and Neogen Chemicals—demonstrates:
✅ Consistent double-digit growth in revenue and profit
✅ High return ratios (ROCE > 20%)
✅ Moat-based business models (tech, platform, or chemistry edge)
✅ Scalable growth opportunities aligned with long-term industry trends
Why This Matters for Investors:
These are not short-term fads. These businesses have proven fundamentals and visible triggers ahead. If you’re a long-term investor aiming for steady compounding, these midcap growth stocks deserve a close look.
📉 Pro Tip:
Watch for dips or consolidations in these midcap growth stocks to build long-term positions. These are not momentum bets but business-backed wealth creators.
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