Top 3 Nifty Midcap Stocks That Delivered Over 15 per cent Returns in 2025 – Hottest Midcap Stocks

Despite a broader market selloff, these midcap stocks have outperformed with double-digit gains—driven by strong financials and sectoral growth

Despite volatility in the broader markets, some midcap stocks have stood out with strong returns in 2025. While the Nifty Midcap 100 has faced a sharp correction, three stocks—SRF Ltd, UPL Ltd, and SBI Cards & Payment Services Ltd—have defied the trend, delivering over 15 per cent returns on a year-to-date basis. These companies have benefited from sectoral tailwinds, robust financial performance, and strategic growth initiatives, making them the Top Gainers in the Nifty Midcap index this year. Let’s take a closer look at what’s driving their outperformance.

Performance of Midcaps and Smallcaps

Mid and smallcap stocks in India have witnessed a sharper decline compared to large caps this year. The Nifty Midcap 100 has dropped 11.29 per cent, while the Nifty Smallcap 100 is down 14.6 per cent, significantly underperforming the Nifty 50, which has fallen 2.91 per cent. Nearly 30 per cent of these stocks are nearing their 52-week lows, with some losing up to 60 per cent from their peaks. Additionally, around 70 per cent have declined more than 30 per cent from their recent highs, highlighting the depth of the correction.

The broader market selloff deepened on Tuesday as investors grew cautious over high valuations, weak earnings, and global uncertainties. The Nifty Midcap 100 and Nifty Smallcap 100 indices have dropped 6 per cent in the last two sessions, reflecting increased selling pressure.

SRF Ltd

SRF Ltd manufactures technical textiles, chemicals, packaging films, aluminum foils, and polymers. In 2025, the stock delivered a 25 per cent return on a year-to-date basis, making it the top gainer in the Nifty Midcap index. It trades at a P/E of 70.7, significantly higher than the industry P/E of 30.5, with a ROCE of 12.7 per cent and an ROE of 12.2 per cent. The company's debt-to-equity ratio stands at 0.44, indicating a balanced financial position.

The company reported a 14 per cent year-on-year revenue growth in Q3 FY25 at Rs 3,491 crore, with PAT rising 7 per cent to Rs 271 crore. Specialty chemicals showed strong demand recovery, while fluorochemicals saw record domestic refrigerant gas sales. Packaging films grew 27 per cent, despite margin pressures from Chinese imports. Technical textiles achieved record capacity utilization, and the coated fabric segment remained stable. A second interim dividend of Rs 3.6 per share was approved. Management remains optimistic about FY26, despite geopolitical uncertainties, expecting demand recovery in specialty chemicals and fluorochemicals.

UPL Ltd

UPL operates in agrochemicals, industrial chemicals, specialty chemicals, and seed production. In 2025, the stock has delivered a 22 per cent return on a year-to-date basis, making it the second-highest gainer in the Nifty Midcap index. The company has a market capitalization of Rs 45,806 crore, with a sales-to-price ratio of 1.01.

UPL Limited held its Q3 FY25 earnings call on January 31, 2025, with key executives discussing market recovery, financial performance, and strategic actions. The global crop protection market is rebounding, supported by demand growth and channel destocking. UPL raised US$100 million through an oversubscribed rights issue, while Advanta secured a US$350 million investment. Q3 revenue grew 10 per cent to Rs 10,907 crore, with EBITDA surging fourfold to Rs 2,163 crore. Working capital improved significantly, reducing net debt by US$745 million. Management remains optimistic about maintaining FY25 guidance, leveraging new product launches and operational efficiencies.

SBI Cards & Payment Services Ltd

SBI Cards is a non-deposit NBFC registered with RBI, engaged in credit card issuance, and is a subsidiary of SBI. In 2025, the stock delivered a 17 per cent YTD return, ranking as the third-highest gainer in the Nifty Midcap index. It has a market cap of Rs 74,637 crore and trades at a P/E of 36.5, well above the industry P/E of 21.6. The company reports a ROCE of 12.5 per cent and an ROE of 22 per cent, reflecting strong financial performance.

India’s digital economy is set to reach 20 per cent of GDP by 2026, with UPI transactions hitting a record 16.73 billion in December 2024. SBI Card, holding an 18.7 per cent market share, crossed 2 crore cards-in-force, driven by strong customer acquisition. In Q3 FY25, total revenue rose to Rs 4,767 crore, though PAT declined 30 per cent YoY to Rs 383 crore. Asset quality remained stable with GNPA at 3.24 per cent, while credit costs rose to 9.4 per cent. Management remains optimistic about long-term growth, focusing on selective acquisitions and operational efficiencies.

Disclaimer: The article is for informational purposes only and not investment advice.