Highest Return Stocks in India: Last 1 Year

Over the 12 months to November 2025, a number of Indian small- and mid-cap stocks delivered eye-catching returns as investors rotated into businesses with strong earnings momentum, cyclical tailwinds, favourable corporate actions and improving balance sheets.

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Below I profile ten of the best performers — Apollo Micro Systems, Gabriel India, CarTrade Tech, Force Motors, Shaily Engineering Plastics, L&T Finance, Laurus Labs, RBL Bank, Allied Blenders & Distillers and Garden Reach Shipbuilders & Engineers — explain briefly what each company does, why it likely rose sharply over the past year, and what investors should keep an eye on going forward.

Apollo Micro Systems Ltd — Defence Electronics Specialist (1 Year Return- 196.34%)

Apollo Micro Systems designs and manufactures embedded computing systems, mission computers, and rugged electronics used in defence and space applications. Over the past year the stock has been one of the market’s standouts, supported by strong order wins and rising revenues as India expands defence procurement and pushes import substitution in strategic electronics. Improved margins from scale, the company’s focus on higher value-added systems and steady export enquiries have helped convert contract awards into measurable profit growth and investor interest.

Why it performed well: orderbook expansion, higher EBITDA on project execution and increased investor appetite for defence suppliers.

Watch-list: order conversion, working-capital cycles and any large contract disclosures.

Gabriel India Ltd — Auto Components Rebound (1 Year Return- 190.5%)

Gabriel India is a longtime maker of shock absorbers and ride-control systems for two- and four-wheelers. The cyclical recovery in auto volumes, rising replacement demand and margin improvement from price realisation and mix have supported the stock’s surge over the year. Additionally, stability in raw-material procurement and gains from aftermarket sales have cushioned near-term volatility.

Why it performed well: auto demand recovery, product mix improvement and better export traction.

Watch-list: commodity inflation, OEM order momentum and capex plans.

CarTrade Tech Ltd — Digital Automotive Marketplace (1 Year Return- 168.61%)

CarTrade operates online marketplaces and tech platforms for used and new vehicles, vehicle inspections and related services. The company’s strong revenue and profit growth, near-debt-free balance sheet and accelerating monetisation of digital services attracted investors seeking high-quality platform growth in India’s large second-hand car market. Continued expansion into value-added services, profitable scaling of auctions and a rebound in vehicle transactions explain much of the stock’s gains.

Why it performed well: robust GMV (Gross Merchandise Value- which represents the total value of vehicles sold through its platforms over a period) growth, margin leverage and low leverage.

Watch-list: user retention metrics, market share and the pace of profitability in new verticals.

Force Motors Ltd — Commercial And Specialty Vehicles(1 Year Return- 146.99%)

Force Motors manufactures light commercial vehicles, multi-axle special purpose vehicles and engines. The stock’s rally reflects a combination of cyclical recovery in CV demand, margin recovery through operating improvements and a cleaner balance sheet after debt reduction. The company’s niche presence in ambulances, defence and high-horsepower diesel sectors provided resilient demand even when other segments softened.

Why it performed well: improving CV volumes, focus on higher-margin special vehicles and lower leverage.

Watch-list: commodity costs, OEM supply disruptions and product mix shifts.

Shaily Engineering Plastics Ltd — Specialty Plastics Manufacturer (1 Year Return- 129.06%)

Shaily makes engineered polymer components and precision injection-moulded parts for pharma, FMCG, consumer appliances and auto sectors. The company benefited from strong end-market demand, price realisation and new product wins for global clients. Corporate actions such as ESOP grants and consistent quarterly upgrades to guidance also reinforced investor confidence in the business’s growth trajectory.

Why it performed well: steady order flow from pharma and FMCG customers and margin expansion from scale.

Watch-list: customer concentration, raw-material volatility and new capacity utilisation.

L&T Finance Ltd — NBFC Recovery Story (1 Year Return- 112.57%)

L&T Finance, a non-banking finance company that lends across rural, housing and corporate segments, benefited from a broader recovery in credit demand, improving asset quality and falling incremental credit costs. A better-than-expected collection cycle and stabilisation in credit costs lifted profitability, drawing value-seeking investors back to NBFC names that had de-rated earlier in the credit cycle.

Why it performed well: improved asset quality, normalising credit costs and renewed loan growth.

Watch-list: GNPA trends, cost of funds and the pace of new business origination.

Laurus Labs Ltd — Pharma And Active Pharmaceutical Ingredients (APIs) (1 Year Return- 105.25%)

Laurus Labs is a vertically integrated API and formulation manufacturer with exposure to generics, contract manufacturing and nutraceuticals. The company’s one-year outperformance can be traced to robust order flows in APIs, margin relief from benign input costs, and progress on capacity expansion that improved revenue visibility. Its diversified revenue streams and increasing share of higher-margin contract work appealed to growth-oriented investors.

Why it performed well: strong API demand, capacity upgrades and healthier margins.

Watch-list: regulatory inspections, contract renewals and China-linked raw-material pricing.

RBL Bank Ltd — Turnaround And Strategic Interest (1 Year Return- 103.51%)

RBL Bank’s share price strength over the past year reflects a mix of operational recovery, capital market transactions and notable strategic interest from large investors. High-profile stake movements in 2025 made headlines and helped re-rate the stock as confidence about governance and capital support improved. The bank’s progress on asset quality and loan growth has underpinned sentiment.

Why it performed well: governance improvements, capital-raising/strategic stake activity and improving credit metrics.

Watch-list: large shareholder actions, deposit growth and credit cost trajectory.

Allied Blenders & Distillers Ltd — Consumer Spirits Momentum (1 Year Return- 98.08%)

Allied Blenders & Distillers (ABDL) is a fast-growing player in the Indian IMFL (Indian-made foreign liquor) market. The sharp rise likely reflects sustained volume growth, premiumisation trends in urban markets, and an expanding distribution footprint that pushed revenue and margins higher. Strong cash flows and steady market share gains in key states made the stock appealing to consumption-themed investors.

Why it performed well: premiumisation, distribution expansion and stable cash conversion.

Watch-list: state excise policies, competition from incumbents and input cost swings.

Garden Reach Shipbuilders & Engineers Ltd (GRSE) — Defence Shipbuilding Uptick (1 Year Return- 95.88%)

GRSE is a public sector shipyard that builds naval vessels, patrol craft and offshore support ships. The company has enjoyed a favourable order book and improved profitability from execution of defence contracts, fuelling recent share price strength amid rising defence spending and order awards. Strong quarterly performance and delivery milestones have reinforced investor confidence.

Why it performed well: robust defence order backlog, contract execution and sectoral capex tailwinds.

Watch-list: contract timelines, margin stickiness and working capital needs.

Conclusion

The common drivers across these ten winners are clear: strong order books or sector tailwinds, improving margins, balance-sheet repair and a return of investor appetite for quality mid-caps. While short-term momentum has rewarded shareholders, investors should balance enthusiasm with due diligence — check valuation multiples, the sustainability of earnings, customer concentration, and any one-off items that may have temporarily inflated profits.

These names illustrate how selective exposure to cyclical recovery, defence and infra spending, digital platform leadership and consumer premiumisation can generate outsized returns — but the same exposure brings volatility. For long-term positions, focus on businesses with durable competitive advantages, conservative capital allocation and transparent corporate governance.