Encouraged by Q2's healthy performance and expectations of a GST 2.0-led festive lift in Q3, full-year earnings estimates have been revised upward by 50–60 basis points. After several quarters of disappointment and downgrades, this marks a welcome turnaround.

Amid this show of strength, some businesses have shined particularly bright. Let us look at three of the companies which have doubled their profits over the past year.

Will this translate into multibagger returns for investors, or will risks outweigh sentiment?

Navin Fluorine forms fresh lifetime highs

Navin Fluorine surprised investors in the September quarter with standout performance.

The specialty chemicals manufacturer clocked 46% year-on-year increase in revenue to ₹760 crore on broad-based growth across segments, a massive Ebitda margin expansion from 20.7% in Q2FY25 to 32.5% in Q2FY26, and over 150% growth in profit after tax (PAT) to ₹150 crore.

The market reaction was immediate. The stock rallied 14% on 31 October, breaking above ₹5,000 apiece, and has gained another 6% since. After three years of muted performance, Navin Fluorine has sharply outpaced the sector. But can the rally sustain?

The outlook appears encouraging. Strong purchase orders for H2, capacity expansion, and debottlenecking initiatives support its long-term trajectory. Profitability is also set to benefit from higher-margin exports, particularly as CDMO gains scale. The company reiterated its $100 million CDMO revenue target for FY27.

Prabhudas Lilladher recently raised its target price to ₹6,441—a 7% upside—valuing the stock at 46x September 2027 earnings. Of course, this prices in a bunch of "ifs" – extension of contracts with Honeywell and Chemours, timely commissioning of a recently announced expansion, and accelerated growth in CDMO on the back of near-to-market or commercial products.

CDMO currently accounts for 15% of the company's revenues. Negative surprises on any of these fronts could lead to a correction in the stock that appears priced to perfection.

Waaree Renewable Technologies: Bumper growth in an evolving landscape

Listed in April 2025, Waaree Renewable Technologies posted another strong showing in Q2. Net profit for the solar EPC firm more than doubled year-on-year to ₹116 crore. The stock initially jumped 9% on 13 October following the earnings announcement, but later gave up all gains. Why?

The company remains in a nascent stage, which makes it prone to earnings variability. Elevated EPC contract costs had compressed margins by 412 bps in FY25. Policy and technology risks in a fast-changing renewable sector, intensifying competition from larger players, supply-chain risks on imported components, and delayed receivables from DISCOMs have kept sentiment cautious. Even two consecutive quarters of strong profit growth were met with scepticism.

Still, its structural drivers remain intact. Waaree has a 15-year execution track record with nationwide reach via a growing franchise network—well positioned to capture clean-energy tailwinds. Its diversified portfolio across large ground-mounted and distributed projects reduces vulnerability to policy shifts.

Meanwhile, as its projects mature, operations and maintenance (O&M) is expected to grow into a larger component of the business. Being margin-accretive, this, along with operating leverage, should help support margins. Margins should also continue to benefit from backward integration with its parent, Waaree Energies, which is India's largest solar module manufacturer.

ACC: A multi-fold profit jump that didn't move the stock

The company's PAT went from being slightly shy of ₹200 crore in Q2FY25 to more than ₹1,100 crore in Q2FY26. While revenue-growth came in at 30% year-on-year on 16% higher volumes and aided by higher realizations on a better product-mix, Ebitda margin expanded by 470 bps on lower fuel and freight costs, improved procurement synergies, and higher operating leverage.

Demand from housing and infrastructure, along with ongoing capex, should drive volume growth ahead. Margins may benefit from higher use of renewable power, improved product-mix and operating leverage. A debt-free balance sheet adds comfort.

So, why is it that despite a multifold jump in profits as well as promising prospects, the stock has corrected by 2.5% since the earnings announcement on 31 October? For one, the five-fold year-on-year profit jump is not reflective of the true picture. Adjusted for tax-reversal and interest income, ACC's PAT increased by a much less eye-catching 37%.

Even if we look at a longer horizon, say one year, ACC has underperformed the pack. Valuation is not to blame— following 16% correction over the past one year, ACC is trading at just about 10 times its trailing twelve-month earnings, a significant discount to the sector's 45.4x P/E.

Then, what explains ACC's persistent lag?

You see, ACC is part of the Adani group, and so is Ambuja Cements. The strong parentage and cement ecosystem within the group is one of ACC's biggest strengths, but also a weakness.

While in the September quarter, ACC benefited from procurement synergies within the group, there have been several quarters where its margins have contracted due to unfavourable master-supply agreements with group companies. The 470 bps Ebitda margin expansion in Q2FY26 also comes off a low base, while the more telling metric — the adjusted PAT margin — remained flat. Governance concerns around the Adani Group and its promoters have also kept the stock under pressure.

This is to say that the synergies cut both ways, and the latest quarter's benefits cannot be extrapolated into the future. Furthermore, Motilal Oswal's channel checks suggest that an impending merger of ACC and Ambuja Cements into "Adani Cement" can also limit upside in the stock.

Ultimately, one strong quarter doesn't make a trend. Investors should focus on profit quality — adjusting for one-offs — and remember that past growth is already in the price. What matters now is the company's ability to deliver sustainable gains in the quarters ahead.

For more such analysis, read Profit Pulse.

Ananya Roy is the founder of Credibull Capital, a SEBI-registered investment adviser. X: @ananyaroycfa

Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.