Top Manufacturing Stocks in India

India is often seen as a services-driven economy. But the truth is, manufacturing plays a far more critical role than it gets credit for. From cars and defence equipment to pharmaceuticals, energy, and steel, India’s industrial base is evolving and attracting long-term capital. 

For investors looking to tap into India’s manufacturing growth, these companies bring a mix of scale, stable revenues, and long-term potential. Many are market leaders in sectors like automobiles, steel, defence, and energy. Some are expanding into new areas such as electric mobility, clean energy, or high-tech electronics, while others are doubling down on core strengths with fresh investments and global partnerships. Collectively, they offer exposure to the key pillars of India’s industrial economy.

This article looks at some of India’s top manufacturing stocks. We’ll cover what these companies do, how their businesses are structured, recent financial performance, expansion plans, and the key risks they face.

Industry Overview

Manufacturing in India is one of the strongest pillars of the Indian economy. It contributes about 17% to the country’s GDP and employs over 27 million people. Over the next few years, this share is expected to rise further, as the government pushes for faster growth through policies like Make in India and Production-Linked Incentive (PLI) schemes.

In 2025-26, India’s manufacturing sector is projected to reach a value of nearly ₹87.6 lakh crore (US$1 trillion). States such as Gujarat, Maharashtra, and Tamil Nadu have emerged as major industrial hubs, supported by better infrastructure, higher investments, and strong export capacity.

The focus is also shifting towards high-tech and clean energy manufacturing. India now has the scale and capability to play a larger role in global supply chains. For example, it is well-positioned to supply up to 10% of the global demand for wind energy components by 2030.

With a large domestic market, improved connectivity, and rising foreign investment, India is moving closer to its goal of becoming a global manufacturing hub.

Top Manufacturing Stocks in India by Market Cap

1. Reliance Industries Ltd.

Reliance Industries is one of India’s largest companies, with a diverse presence across energy, materials, retail, and digital services. Its operations span oil and gas exploration, refining and petrochemicals, renewables like solar and hydrogen, and consumer businesses including retail and telecom. 

Its operations are grouped into four main areas. The Oil to Chemicals (O2C) segment focuses on refining, petrochemical production, fuel distribution, and manufacturing of materials like polymers, polyesters, and elastomers. The Oil and Gas division handles the exploration, development, and production of crude oil and natural gas. Its Retail business includes a wide range of consumer stores and services, supported by extensive logistics and supply chain infrastructure. Meanwhile, the Digital Services segment offers telecom and internet services through its Jio platform, reaching millions of users across India.

Reliance Industries continues to reinforce its position as India’s manufacturing leader. In the March 2025 quarter, the company reported a consolidated net profit of ₹19,407 crore, a 2.4% increase compared to the same period last year. Revenue for the quarter rose by 10.5% year-on-year to ₹2,61,388 crore, driven by steady performance across its refining, petrochemicals, retail, and digital businesses. Notably, Reliance also became the first Indian company to surpass ₹10 trillion in net worth, marking a new milestone in corporate India’s history.

2. Sun Pharmaceutical Industries Ltd.

Sun Pharma stands as one of the world’s largest speciality generic pharmaceutical manufacturers. With a global revenue of around US$5.8 billion, the company supplies high-quality medicines that are trusted by healthcare professionals and patients in over 100 countries. Its manufacturing footprint spans 41 plants across multiple regions, supporting its wide-ranging product portfolio in generics, speciality drugs, and active pharmaceutical ingredients. Sun Pharma invests about 6% of its revenues in research and development, reflecting its commitment to innovation.

Recently, Sun Pharma has taken a big step to strengthen its cancer treatment business. The company announced that it will acquire Nasdaq-listed Checkpoint Therapeutics, a US-based firm that focuses on immunotherapy and targeted cancer medicines. Sun Pharma will pay $355 million in cash for the deal. This acquisition brings an important medicine into Sun Pharma’s portfolio – UNLOXCYT (cosibelimab-ipdl). This drug is special because it is the first and only FDA-approved treatment for a type of skin cancer called metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC).

The company’s Chairman, Dilip Shanghvi, said that with this new drug and Sun’s global presence, patients with this form of skin cancer could soon get access to a valuable new treatment. The deal also helps Sun Pharma grow its presence in the fast-expanding field of cancer care.

In the fourth quarter of FY25, Sun Pharma reported a consolidated net profit of ₹2,154 crore, marking a 19% decline from the same period last year when it earned ₹2,659 crore. Despite the fall in profit, the company’s revenue from operations grew 8% year-on-year to ₹12,959 crore. Its India formulation business continued to perform strongly, with sales rising 13.6% to ₹4,213 crore in Q4FY25. However, sales in the US, its largest overseas market, saw a slight dip of 2.5% during the quarter, coming in at $464 million. 

3. Indian Oil Corporation Ltd.

Indian Oil Corporation is one of India’s most important and diversified energy companies, with operations spanning oil, gas, petrochemicals, and newer forms of energy. It holds a key position among India’s public sector giants and ranks at 116 on the Fortune Global 500 list.

IndianOil has set itself an ambitious target of achieving net-zero operational emissions by 2046, supporting India’s broader goal of net-zero by 2070. This commitment highlights its focus on building a cleaner, more sustainable future while continuing to meet the country’s growing energy needs. As part of its long-term vision, the company aims to become a one-trillion-dollar enterprise by 2047, aligning with India’s goal of becoming a $30 trillion economy.

Today, IndianOil meets about one-eighth of India’s energy needs and plans to maintain this share as the country advances towards 2050. Every day, IndianOil processes more than 1.6 million barrels of crude oil and reaches over 30 million Indians through its vast network of more than 61,000 customer points, including over 37,500 fuel stations. It supplies over 2.6 million LPG cylinders daily, ensuring clean cooking fuel even in remote areas, and fuels more than half of the flights in Indian skies. Its pipeline network, now close to 20,000 kilometres, handles record volumes. With a market share of over 45% and more than 150 million customers, IndianOil remains central to India’s push for cleaner energy, particularly through schemes like the Pradhan Mantri Ujjwala Yojana.

The company reported a strong performance in the fourth quarter of FY25, with its standalone net profit rising 50% year-on-year to ₹7,265 crore. This sharp increase was largely driven by inventory gains and healthy domestic demand. In the same quarter last year, the company had posted a net profit of ₹4,838 crore. While revenue from operations for the quarter came in at ₹2.18 lakh crore, slightly lower than the ₹2.20 lakh crore recorded a year earlier, refinery throughput rose to 18.55 million metric tonnes from 18.28 million metric tonnes. 

4. Hindustan Zinc Ltd.

Hindustan Zinc is the world’s top integrated zinc producer and the third-largest producer of silver. Its key mines are located across Rajasthan at sites like Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar, and Kayad. The company’s total ore production capacity stands at 18.25 million tonnes per year. The Rampura Agucha mine alone, with a capacity of 5.4 million tonnes per year, is recognised as the world’s largest underground zinc mining operation.

Since its disinvestment in 2002, Hindustan Zinc has expanded its production capacity impressively. From 204,000 tonnes of metal production annually back then, it has grown nearly fivefold to 1.123 million tonnes per year today. As of the end of FY2025, the company produced 827 kilotonnes of zinc, 225 kilotonnes of lead, and 687 metric tonnes of silver. Hindustan Zinc is a subsidiary of Vedanta Limited, which holds a 63.42% stake, while the Government of India continues to own 27.92%. 

Hindustan Zinc delivered its best-ever performance for a January-March quarter in FY25, posting a net profit of ₹3,003 crore. This represents a growth of over 47% compared to ₹2,038 crore in the same period last year. The company’s revenue from operations also hit a new high for the fourth quarter, rising more than 20% year-on-year to ₹9,087 crore. Most of this was driven by strong performance in its zinc, lead, and silver business, which brought in ₹8,806 crore, an increase of over 21% from the previous year.

5. Divi’s Laboratories Ltd. 

Divi’s Laboratories, founded in 1990, is a leading manufacturer of active pharmaceutical ingredients (APIs). The company supplies high-quality products to more than 95 countries. Divi’s makes generic APIs, ingredients for nutraceuticals, and also works with major pharmaceutical companies to develop custom APIs across the full product lifecycle.

The company runs three research centres and three manufacturing sites. Its R&D team focuses on creating cost-effective, non-infringing processes while constantly improving production methods. The company’s two main manufacturing units meet strict global standards and are equipped to produce quantities ranging from small batches to thousands of tonnes each year.

Divi’s Laboratories has signed a major long-term deal with a global pharmaceutical company for the manufacturing and supply of advanced intermediates, strengthening its custom synthesis business. While the partner’s name and deal details are confidential, Divi’s confirmed that the agreement is significant and will have a positive impact on its revenue. To support this growth, the company plans to invest ₹650–700 crore to expand capacity at its existing plants. The partnership ensures a reliable supply for the customer and helps Divi’s grow further in the custom synthesis space.

In the fourth quarter of FY25, Divi’s Laboratories reported a consolidated net profit of ₹662 crore, marking a 23% increase from ₹538 crore in the same period last year. Revenue from operations rose 12% year-on-year to ₹2,585 crore, compared to ₹2,303 crore a year ago, reflecting steady growth across its businesses.

Key Factors & Risks to Consider

India’s top manufacturing companies are set to play a big part in the country’s growth in the years ahead. Firms like Reliance, Indian Oil, Hindustan Zinc, Sun Pharma, Divi’s Labs, and Solar Industries are growing their core businesses while also investing in new areas like clean energy, advanced medicines, and defence equipment. Government schemes such as Make in India and the push for net-zero emissions are giving them more opportunities to expand. 

But there are challenges too. These companies must deal with changes in commodity prices, government rules, and global economic conditions. For energy and metal businesses, moving towards sustainable manufacturing in India will require a lot of investment and careful planning. Pharma companies will need to manage strict regulations and pricing pressure, especially in the US market. In the end, staying efficient, flexible, and focused on innovation will be key as they look to build on their strong foundations and lead India’s industrial growth story.

Conclusion

India’s manufacturing sector is undergoing a major transformation. The companies we’ve explored reflect the country’s industrial strength and its readiness to take on new challenges. They are expanding beyond traditional industries, investing in cleaner technologies, advanced medicines, and new materials, while continuing to power the economy. For investors, these businesses offer not just solid scale and presence, but also a chance to be part of India’s next phase of industrial growth.

FAQs

1. Why is manufacturing important to India’s economy?

Manufacturing contributes about 17% to India’s GDP and provides jobs to over 27 million people. It helps drive exports, build industrial strength, and reduce reliance on imports.

2. What are some government initiatives supporting manufacturing in India?

Schemes like Make in India, Production-Linked Incentive (PLI) schemes, and the push for net-zero emissions are key drivers helping companies scale up and innovate.

3. Are these manufacturing companies good long-term investments?

These firms have strong market positions, steady revenues, and growth plans in areas like clean energy, advanced medicines, and technology. But investors should also consider risks like commodity price swings, regulation changes, and global economic shifts.

4. What are the main risks for India’s manufacturing companies?

Key risks include volatility in raw material prices, strict global and local regulations, currency fluctuations, and the need for large amounts.

Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Registration granted by SEBI, enlistment as a Research Analyst with the Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities are quoted as an example and not as a recommendation.

This is for informational purposes and should not be considered as recommendations. Kindly refer to  https://share.market/ for more details. PhonePe Wealth Broking Private Limited, Research Analyst with SEBI Regn No: INH000013387, BSE RA Enlistment Number: 5887.