The Indian rupee has had a rough 2026. It's now the worst-performing currency in Asia this year, down over 6% year-to-date, and the pressure isn't letting up.
The rupee hit an all-time low of ₹95.96 to the dollar during intraday trade on Thursday, before recovering slightly to around ₹95.8 on Friday. It continued to slide on Monday, touching a fresh record low of ₹96.12 against the US dollar.
The main culprit? Oil.
Crude prices have been surging, and Indian oil marketing companies are buying dollars in bulk to pay for imports, keeping constant pressure on the rupee. India imports roughly 90% of its oil and about half its gas, which leaves the currency especially exposed if the Iran conflict drags on and keeps energy markets on edge. Rising import costs are also widening India's trade deficit, adding another layer of strain on the external account.
That said, there's a silver lining for one corner of the market. With the rupee weak, Indian exporters are cashing in: every dollar they earn translates into significantly more rupees than it did at the start of the year.
Here are the stocks worth watching as the rupee continues to slide.
#1 Aurobindo Pharma
Aurobindo Pharma is a Hyderabad-based integrated global pharmaceutical company engaged in the development, manufacturing, and commercialisation of APIs, generics, specialty products, injectables, biosimilars, vaccines, peptides, and metered dose inhalers.
The company operates in more than 150 countries, making it one of India’s major contributors to the global pharmaceutical industry.
It emerged as the third-largest Indian pharmaceutical company by revenue in FY25. In the US, it is the largest generic pharma company by prescriptions dispensed.
In Europe, it is a leading player with operations across 10 countries, including France, Spain, Portugal, Italy, Germany, the UK, the Netherlands, Belgium, and Poland. Its footprint covers 75% of the European generic market, with a large portfolio of marketed products.
According to its Q3 FY26 earnings presentation, the company derives a substantial share of its revenue from international markets.
The US, Europe, and growth markets together contributed nearly 84.5% of total revenue from operations during the quarter. These regions generated around ₹7,310 crore of the company’s total revenue of ₹8,650 crore. This makes Aurobindo Pharma a stock to watch as the rupee depreciates.
Over the past three years the company’s revenue has expanded at a 10.6% compound annual growth rate (CAGR), and net profit at a 9.6% CAGR. The three-year average return on equity (ROE) and return on capital employed (ROCE) are 9.5% and 13.6%.
#2 Tata Consultancy Services (TCS)
Tata Consultancy Services is the flagship company of the Tata group. It offers a consulting-led, cognitive-powered, and integrated portfolio spanning business, technology, and engineering services.
The company drives a major share of its revenue from international markets. TCS's financial results for the year ended March 2026 reveal that North America and Europe remain its primary markets, accounting for 48.6% and nearly 32.8% of total revenue, respectively.
Combined with other overseas regions such as Asia Pacific, Latin America, and the Middle East & Africa (MEA), international markets accounted for 94.1% of the company’s revenue mix, highlighting its export-oriented business model.
In FY26, the company reported a total contract value (TCV) order book of $40.7 billion, with North America contributing $19 billion. This translates to about 46.7% of the total TCV, reaffirming North America’s position as the single largest geography in the company’s deal pipeline.
With the rupee touching record lows, TCS remains as stock to watch as a weaker rupee tends to fatten revenue numbers and expand margins.
Over the past three years the company’s revenue growth at a 5.8% CAGR, and net profit at a 5.3% CAGR. The three-year average ROE and ROCE are 49.5% and 67.1%.
#3 Apex Frozen Foods
One of the leading exporters of processed shrimp in India, Apex Frozen Foods caters to a wide range of customers including food companies, retail chains, restaurants, club stores and distributors. Its products are exported across the world, including to the US, European Union and China.
The company is also well integrated across the value chain, spanning shrimp seed hatcheries, shrimp farming, pre-processing, processing, and logistics.
According to its Q3 investor presentation, the sales mix remains heavily export-oriented, with the US contributing 49% of revenue, followed by the European Union at 46%, with other regions accounting for the remaining 5% in 9MFY26.
This strong dependence on overseas markets makes Apex Frozen Foods a key stock to watch as the rupee depreciates.
Over the past three years the company’s revenue and net profit has seen a continuous decline. The three-year average ROE and ROCE are 3.7% and 7.3%.
#4 UPL
UPL is a leading provider of sustainable agricultural solutions and services with more than 14,000 product registrations and a presence in nearly 140 countries, or about 90% of the world’s food basket. It is among the most significant players in the agriculture industry and a leading manufacturer and distributor of natural solutions.
Its offerings span the entire agricultural value chain, including high-performance seeds, crop protection products, natural solutions, on-farm equipment and services, and post-harvest solutions.
The company derives a major portion of its revenue from international markets. In FY26, India contributed ₹6,340 crore to revenue of ₹51,840 crore, showing nearly 87.8% of revenue came from overseas markets such as Latin America, North America and Europe.
Over the past three years the company’s revenue and net profit has seen a continuous decline. The three-year average ROE and ROCE are 12.8% and 20.2%.
Conclusion
With the rupee trading near record lows, export-oriented companies are likely to remain in focus as currency depreciation can support revenue growth and improve margins.
However, investors should focus on fundamentally strong businesses with healthy growth visibility, a diversified global presence, and stable profitability rather than making investment decisions based solely on currency movements. Investors should evaluate a company's fundamentals, corporate governance, and stock valuations before making an investment decision.
Happy investing!
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com