Turnaround stocks investing is gaining renewed relevance in India as multiple sectors emerge from prolonged stress cycles. Companies that were loss-making just a few years ago are now delivering consistent profits, stronger cash flows, and balance sheet stability. Companies in India that are losing money are increasingly being tracked as fundamentally strong stocks, offering opportunities across both short-term stocks to buy and long-term growth stocks in India.
With 2026 approaching, investors looking at mid-price stocks in India, particularly stocks above 500 rupees and stocks between 500 and 1000, should focus on sectors where profitability improvement is structural rather than cyclical.
Stock Market Sectors
Automobiles & EVs – Margin Expansion and Balance Sheet Repair
Tata Motors represents one of the most visible turnaround stories in the Indian market. After several years of losses driven by high leverage at Jaguar Land Rover (JLR) and weak domestic margins, the company has returned to profitability through aggressive cost control, improved product mix, and strong EV penetration. JLR’s margin recovery and debt reduction have materially strengthened consolidated financials, positioning Tata Motors as a fundamentally strong company and a credible growth stock for next 5 years. Given its earnings momentum, it also fits the category of stocks for short term buying and stocks to buy now.
Hospitality & Consumption – Demand-Led Earnings Revival
Indian Hotels Company
Capital Goods & Infrastructure – Operating Leverage Kicking In
Bharat Heavy Electricals Limited
BHEL’s transition from losses to profitability reflects a broader revival in India’s power and infrastructure capex cycle. Improved order inflows across thermal power, renewables, defense manufacturing, and railways have supported revenue visibility. Cost rationalization and better execution have translated into margin improvement. Given its high operating leverage, BHEL is best viewed as one of the stocks for short term buying and short term stocks to buy during capex-led earnings upgrades, while remaining a tactical exposure rather than a pure long-term compounder.
Financial Services – Balance Sheet Clean-Up Driving Profits
L&T Finance has successfully transitioned from a loss-making phase caused by stressed wholesale lending to a more stable, retail-focused business model. Improved asset quality, controlled credit costs, and digital-led disbursements have driven profitability recovery. The company now qualifies as a fundamentally strong stock within NBFCs and is increasingly tracked among stocks to buy now for investors seeking financial-sector exposure with improving return ratios. Over the medium term, it also fits the profile of long term growth stocks India as retail lending scales.
Metals & Cyclicals: Profitability Through Cost Discipline
Steel Authority of India
SAIL’s turnaround has been driven by better steel pricing, operational efficiency, and debt reduction after years of losses during downcycles. While inherently cyclical, improved cost structures and infrastructure-led steel demand have supported profitability. SAIL is better suited for short term investment stocks and tactical allocations among stocks between 500 and 1000, particularly during government-led infrastructure expansion phases. Investors should, however, remain cautious of commodity price volatility.
Technology & Services: Structural Business Model Shifts
First Source Solutions
First source Solutions represents a quieter but structurally important turnaround within IT services. After margin pressure and inconsistent earnings, the company shifted toward digital transformation, automation, and healthcare-focused outsourcing. This transition has restored profitability and improved revenue visibility. Trading as a mid-price stock India, First source fits both stocks for short term buying on earnings upgrades and growth stocks for next 5 years as digital adoption accelerates globally.
Few Loss to Profit Companies in India in 2026 With a huge turnaround:
Large-Cap Stocks
| Company | MCap (Cr) | Turnaround Details | Catalysts | Risk Profile & Notes |
|---|---|---|---|---|
| Tata Steel | ~2,10,000 | FY25: Heavy losses → profit | Steel cycle recovery, cost cuts, duties | Low – Commodity volatility; strong balance sheet. Watch China demand. |
Mid-Cap Stocks
| Company | MCap (Cr) | Turnaround Details | Catalysts | Risk Profile & Notes |
|---|---|---|---|---|
| Reliance Infrastructure | ~15,000 | FY25: Large loss → profit | Infra orders, debt fixes | Medium – Leverage risk; promoter track record key. |
| IFCI | ~15,000 | Q4 FY25: Loss → profit (QoQ) | NBFC provisioning ease | Medium – Regulatory/NPA risks; improving assets. |
| Graphite India | ~15,000 | Q4 FY25: Loss → profit (QoQ) | Carbon products demand/margins | Medium – Export cyclicality; steel tie-in. |
| CreditAccess Grameen | ~10,000 | Q4 FY25: Loss → profit (QoQ) | Microfinance recovery | Medium – Rural credit cycle; asset quality focus. |
| Shree Renuka Sugars | ~10,000 | Q4 FY25: Heavy loss → profit | Ethanol/sugar prices, ops efficiency | Medium – Commodity swings; govt policy dependent. |
| Nuvoco Vistas | ~9,000 | Q4 FY25: Loss → profit (QoQ) | Cement demand, realisations | Medium – Infra boom tailwind; capacity utilisation. |
Small-Cap Stocks
| Company | MCap (Cr) | Turnaround Details | Catalysts | Risk Profile & Notes |
|---|---|---|---|---|
| PC Jeweller | ~8,000* | FY25: Multi-yr loss → profit | Retail revival, debt restructure | High – Liquidity thin; forensic audit history. |
| Kernex Microsystems | ~3,000 | FY25: Loss → profit | Electronics orders, multibagger run | High – Order dependency; volume volatility. |
| Camlin Fine Sciences | ~2,500 | FY25: Loss → profit | Debt cut, chemicals recovery | High – Niche mkt; competition risks. |
| Indokem Ltd | ~1,500 | 2025: Yr loss → profit | Specialty chems, strong returns | High – Small scale; execution unproven. |
| GHV Infra Projects | ~1,000 | FY25: First profits post-losses | Infra projects, price surge | High – Micro-cap; illiquid, pump risk. |
How Investors Should Approach Turnaround Stocks
For short term stocks to buy, investors should prioritize companies where profit recovery is already visible in quarterly results and supported by near-term sector catalysts such as capex announcements, demand revival, or margin expansion. Stocks like Tata Motors, BHEL, and SAIL fall into this category of short term investment stocks.
For longer horizons, investors should focus on businesses where turnaround reflects a structural improvement rather than cyclical recovery. Indian Hotels, L&T Finance, Tata Motors, and First source Solutions stand out as fundamentally strong companies with scalability and earnings durability, making them credible long term growth stocks India.
Conclusion
Loss-to-profit companies offer one of the most attractive risk-reward setups heading into 2026, particularly when they operate in sectors benefiting from structural tailwinds. While these stocks can deliver sharp upside, disciplined selection and continuous monitoring remain essential.
Investors evaluating stocks above 500 rupees, stocks between 500 and 1000, or low price mid cap stocks in India should balance short-term momentum with long-term fundamentals. Consulting a SEBI Registered Investment Advisor in India can help align these opportunities with portfolio goals, risk appetite, and investment timelines.
Frequently Asked Questions
1. What is turnaround stocks investing in India?
Turnaround stocks investing in India involves identifying companies that were previously loss-making but have now started to deliver consistent profits, stronger cash flows, and better financial stability, offering opportunities for both short-term and long-term investment.
2. Which sectors in India are currently showing signs of profitability improvement?
In India, sectors like automobiles & EVs, hospitality & consumption, capital goods & infrastructure, financial services, metals & cyclicals, and technology & services are showing signs of structural profitability improvement.
3. How can I identify good turnaround stocks for short-term investment?
For short-term investment, focus on companies where profit recovery is already evident from recent quarterly results and are supported by near-term sector catalysts such as capex announcements, demand revival, or margin expansion.
4. Which stocks are considered credible long term growth stocks in India?
Credible long term growth stocks in India include companies like Tata Motors, L&T Finance, Indian Hotels Company, and First Source Solutions, which show fundamental strength, scalability, and earnings durability.
5. What risks should I consider when investing in turnaround stocks?
Risks include sector-specific volatility, commodity price fluctuations, regulatory changes, leverage risks, and the need for disciplined selection and ongoing monitoring to avoid potential pitfalls associated with these stocks.