highlights
- New-age companies are growing rapidly on the basis of technology, digital platforms and new business models.
- Shares of these companies offer investors the opportunity of high returns, but they also come with risks.
But what makes these companies special, and more importantly…how are these new age companies performing, how is their balance sheet, are they just a bogeyman in the market or do they actually have any substance, and also how can you choose the best companies for your portfolio?
What are New Age Companies?
New age companies use technology to grow faster and change things. Unlike older businesses, which often had physical stores or workshops or factories, these companies operate mostly through apps, websites and digital tools. Think of companies like Zomato, Paytm, Swiggy and Ola Electric in India. These new-age companies focus on making everything convenient for you, be it delivering food, enabling online payments, or booking vehicles for you.
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New age companies often work with a lean, tech-focused model, which allows them to grow faster. But they do not always aim at making quick profits. Instead, they focus more on building a strong customer base and gaining visibility first.
These companies reach out to customers with the help of the Internet and their services are also based on the Internet, hence they are often called ‘Internet Stocks’.
Famous new age companies listed in the market
The number of new age companies is increasing in the Indian stock market. Five of the 12 new-age listed companies will make their stock market debut in 2025. The main famous companies listed in the market are-
How is the performance of these companies?
New-age companies have shown that digital and tech-based business models are expanding rapidly, but maintaining the balance of growth and profits amid intense competition will be the biggest challenge in the times to come.
India’s new-age companies performed strongly in the October–December quarter 2025-26. 9 out of the top 12 companies registered revenue growth of 25% or more. The main reasons for this were the increasing demand for digital services, expansion of quick commerce and strong domestic consumption during the festival season. Although the earnings of all the companies increased, the picture of profits and losses remained different.
Food delivery company Eternal had the strongest performance. It is the parent company of Zomato and Blinkit. The company’s revenue tripled. Blinkit benefited from changing its business model from a marketplace to an inventory-based model. Company profits soared 73% and Blinkit reached break-even operating level. Despite this, management has indicated that it may sacrifice short-term profits if necessary to maintain market leadership.
Its rival Swiggy recorded 54% revenue growth, but its losses widened. The company had to face pressure in the Instamart business due to tough competition in Quick Commerce. BrokerageMotilal Oswal believes that growth may be a little slow in the short term, but there is a possibility of margin improvement due to average order value and better store utilization.
- Electric two-wheeler maker Ather Energy reduced losses by 50% and recorded growth in income.
- Eyeglasses retailer Lenskart, insurance platform PB Fintech, edtech company PhysicsWallah and e-commerce company Meesho recorded growth between 31% and 38%.
- Beauty and fashion retailer Nykaa reported 27% revenue growth and two-and-a-half times profit.
- Investment platform Groww’s revenue rose 25%, but profit declined 27%.
- Even though the overall growth of Go Digit General Insurance was 4%, two-wheeler insurance saw a growth of 47%.
- Logistics company Delhivery recorded nearly 20% revenue growth and 56% profit growth, albeit on a low base.
Mention of Paytm is also important
The story of new-age companies is going to be incomplete without the mention of Paytm, a company that has revolutionized the fintech environment of the country by introducing digital payments. After falling below Rs 500 at one time, Paytm shares have gained almost 60 percent in a year.
Paytm came out of losses and returned to profit. The company’s founder Vijay Shekhar Sharma has talked about increasing its share in the payments market again, where it is facing tough competition from PhonePe, which is targeting to go public this year. Brokerages like Bernstein, Jefferies and Morgan Stanley have cited steady growth in payment volumes and financial discipline as positive indicators for Paytm.
How to Pick Good New Age Stocks
Investing in new-age companies can be a profitable deal, but how do you choose the right companies?
Step 1: What is the business model?
See how the company makes money. Is there anything unique or different about it?
Step 2: See growth
Growth is important for every company. See if the company is growing steadily. See how fast it is gaining customers or increasing its revenue. Never take growth lightly when looking at stocks.
Step 3: Check leverage
- Does the company have a lot of debt?
- Review debt-to-equity ratio
- Check Interest Coverage Ratio
- Explore Cash Reserves
- Study Working Capital Management
It is important to note that while borrowing is normal for growing companies, high leverage can be particularly risky for new-age companies as their revenue streams tend to be volatile.
Step 4: Who is invested in the stock?
See who else has invested in the company. If mutual funds or large investors have stakes, it could mean they have confidence in the company’s potential.
Step 5: Avoid buying expensive shares
Growth is good, but not at any cost. Even if a company looks good, the stock may not be very expensive. It would be wise to wait for a better entry point.
New Age Stocks: What to keep in mind while investing
While investing in New Age companies, one should not take decisions based only on buzz and popularity. Here are some important things to keep in mind for long-term success:
market size
Choose companies that are targeting a large and fast-growing market. Bigger market means more opportunities to grow.
technical lead
The company should have such special technology or platform that makes it different from other companies. See how well the company is using its technology.
management
Strong and experienced leadership is the key to the success of the company. Management’s vision and ability to implement it matter a lot.
financial position
View company figures like profit, loss, debt and cash flow. Is the company handling its money properly?
Ability to adapt to changing environment
The tech and digital sectors change rapidly. How quickly a company can adapt to new regulations and market conditions is very important.
Internet Stocks: Investment Risks
In the poetry of the new age, the opportunities are big, but the risks are also not less. It is important to understand these things before investing-
ups and downs
The price of these shares can change rapidly. Sometimes a sharp rise and sometimes a big fall.
danger of over valuation
If the stock price is based on very high expectations and the company does not live up to those expectations, a huge decline can occur.
The picture of the business model is not clear
The business model of many new companies is not yet fully proven. There may be difficulty in earning profits.
Effect of change in rules
Changes in government rules may affect the functioning and profits of tech and e-commerce companies.
tough competition
There is tough competition in these sectors from both new and old companies. Many times it is easier to enter the market, which increases competition.
market sentiment
The prices of these shares are quickly affected by investor sentiments and news, due to which rapid fluctuations are seen.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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