Debt-free companies often attract investors due to their strong balance sheets, lower risk exposure, and higher financial flexibility.
These companies can efficiently reinvest profits for growth and navigate uncertain market conditions without the burden of debt obligations.
In this article, we explore some of the best debt free stocks in September 2025.
| Name | Sub-Sector | Market Cap (₹ Cr) | PE Ratio | Debt to Equity | 5Y CAGR (%) |
| Axis Bank Ltd | Private Banks | 325,888.99 | 11.62 | 0 | 18.20 |
| HDFC Bank Ltd | Private Banks | 1,475,909.25 | 20.85 | 0 | 11.43 |
| ICICI Bank Ltd | Private Banks | 1,003,254.54 | 19.66 | 0 | 30.42 |
| IndusInd Bank Ltd | Private Banks | 58,808.55 | 22.83 | 0 | 4.14 |
| Kotak Mahindra Bank Ltd | Private Banks | 387,702.22 | 17.52 | 0 | 7.16 |
| State Bank of India | Public Banks | 747,126.19 | 9.63 | 0 | 31.40 |
| SBI Life Insurance Company Ltd | Insurance | 179,553.34 | 74.40 | 0 | 16.50 |
| Maruti Suzuki India Ltd | Four Wheelers | 460,977.05 | 31.79 | 0 | 15.32 |
| Bharat Electronics Ltd | Electronic Equipment | 272,289.26 | 51.17 | 0 | 60.07 |
| ITC Ltd | FMCG - Tobacco | 520,983.91 | 14.99 | 0 | 18.68 |
Note: The best debt free stocks listed above are from Nifty 50 stocks universe and are sorted by their debt to equity ratio as of Septemner 5, 2025.
Axis Bank reported a 4% YoY decline in Q1 FY26 net profit to ₹5,806 crore, mainly due to higher provisions arising from a one-time technical reclassification that impacted asset quality. However, operating profit grew strongly by 14% YoY, reflecting robust core performance.
Key metrics:
HDFC Bank delivered strong results for Q1 FY26, with net profit at ₹18,155 crore (+12% YoY). Net interest income (NII) surged 15% YoY to ₹24,265 crore, underscoring healthy credit growth and stable margins.
Key metrics:
ICICI Bank reported net profit of ₹12,768 crore (+15.5% YoY) in Q1 FY26. NII stood at ₹21,635 crore (+10.6%), with Gross NPA improving to 1.67%. The loan book expanded by 12%, while the net interest margin remained strong at 4.34%.
Key metrics:
For Q1 FY26, IndusInd Bank’s NII dropped to ₹4,640 crore, down from ₹5,408 crore in Q1 FY25. Fee and other income also fell to ₹2,157 crore from ₹2,442 crore last year, reflecting a challenging quarter with lower core income streams.
Key metrics:
Kotak Mahindra Bank posted a standalone net profit of ₹3,282 crore in Q1 FY26, marking a 7% YoY decline from ₹3,520 crore in Q1 FY25 (adjusted for a one-time gain). Including the ₹6,250 crore from the sale of its general insurance business, unadjusted net profit was significantly higher.
Key metrics:
Debt free companies such as Axis Bank, HDFC Bank, and ICICI Bank continue to show strong balance sheets, while public sector giant SBI and sectoral leaders like Bharat Electronics and ITC highlight the resilience of India’s financial and industrial ecosystem. With robust fundamentals, these debt free stocks are well-positioned to deliver long-term growth, though investors should weigh earnings volatility and sector specific risks before making decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 5, 2025, 8:48 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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