3 Under the Radar ASX Growth Stocks To Watch Now

Some growth stories aren’t exactly hidden—they’re just overlooked. While investors often crowd into the big names on the ASX, a number of smaller players are quietly building businesses, compounding returns, and setting themselves up for strong years ahead.

In this piece, we look at three such companies that may not get the same airtime as the market darlings, but are quietly executing well. They operate in very different sectors—construction services, audio-visual technology, and gold mining—but they share one key trait: each is positioned for growth in FY26 and beyond.

Let’s break down why Shape Australia (ASX: SHA), Audinate Group (ASX: AD8), and Capricorn Metals (ASX: CMM) deserve a closer look.

Shape Australia (ASX: SHA): Backlog, Margins, and a Bigger Dividend

When people think of growth stocks, they often picture tech platforms or mining explorers. But sometimes, a steady industrial business quietly delivers impressive compounding—and that’s exactly what Shape is doing.

The company provides interior fit-out and refurbishment services with a national footprint across Australia. It has built a strong reputation in resilient sectors such as healthcare, education, and government, where demand tends to hold steady regardless of the broader construction cycle.

In FY25, Shape turned this backlog of projects into earnings, cash, and a bigger dividend.

1. Dividend declared: 12.5 cents per share fully franked (on top of a 10c interim earlier in FY25).
2. Why it matters: At current prices, Shape offers an attractive yield while still growing, a rare combination for investors who want both income and upside.

The company isn’t chasing hyper-growth—it’s focused on disciplined execution, cost control, and leveraging its national presence. That stability is its strength.

Why it’s under the radar: Shape sits outside the large-cap screens that dominate analyst coverage. But with backlog in defensive sectors and an improving dividend profile, it has a lot to offer investors who dig a little deeper.

Audinate Group (ASX: AD8): Software Mix Expanding, Growth Reset

If you’ve ever been to a concert, sporting event, or corporate conference, there’s a good chance the audio ran on Audinate’s Dante technology. The company has become the global standard for networked audio-visual (AV), with a vast ecosystem of manufacturers using its solutions.

FY25 was a reset year. Demand from original equipment manufacturer (OEM) customers softened as they cleared excess inventory, but the second half showed signs of re-acceleration. Importantly, Audinate’s software and cloud-based products grew strongly, which lifted margins.

FY25 revenue: $62.07 million

Operating cash flow: $7.5 million

Gross margin: Expanded to 82% thanks to higher software mix

Design wins: 129 new ones, up 12% year-on-year

Competitive edge: Dante-enabled products are now 14x more numerous than the nearest rival

The company also acquired Iris Technologies, which accelerated its video roadmap and further strengthened its offering. With a strong cash balance, Audinate enters FY26 ready to benefit as pro AV demand normalises and OEM reorders pick up.

Why it’s under the radar: The near-term revenue dip overshadowed the long-term strategic progress. With software driving margins higher and a large pipeline of design wins, Audinate looks well positioned for operating leverage as growth returns.

Capricorn Metals (ASX: CMM): Record Profit, Cash Tsunami, Expansion Funded

Capricorn is one of those rare gold producers that combines operational excellence with balance sheet strength. The company’s Karlawinda Gold Project has been firing on all cylinders, delivering record numbers across the board in FY25.

Revenue: $505.9 million

EBITDA: $276.4 million

Operating cash flow: $259.3 million

Net profit after tax (NPAT): $150.3 million

Gold sold: 118,223 ounces at $4,463/oz

All-in sustaining cost (AISC): $1,468/oz

Net cash position: $356 million after repaying all debt

These results allowed Capricorn to not only close its hedge book but also fund expansion entirely from internal cash flows. The company secured regulatory approval for the Karlawinda Expansion Project (KEP), which will lift production toward ~150,000 ounces per year, while its Mt Gibson project is steadily advancing toward development.

Why it’s under the radar: Despite executing like a mid-tier miner, Capricorn still flies under the radar compared to larger gold names. With a fortress balance sheet, low costs, and multiple growth projects funded internally, it offers a compelling mix of stability and upside.

What to Watch Next

1. SHA (Shape Australia): Conversion of backlog in healthcare, education, and government; maintaining margin discipline; dividend cadence through FY26.
2. AD8 (Audinate): Speed of OEM reorders, adoption of new software products like Dante Director, and overall revenue re-acceleration.
3. CMM (Capricorn Metals): Smooth execution of Karlawinda expansion, maintaining low costs, and progress on Mt Gibson.

The Bottom Line

Growth doesn’t always mean chasing the hottest tech names or the biggest miners. Sometimes, real opportunities lie in companies quietly compounding cash, expanding margins, or funding growth internally.

1. Shape Australia offers dependable growth plus income with a growing fully franked dividend.
2. Audinate is transforming into a software-driven platform with huge long-term potential.
3. Capricorn Metals is executing like a larger miner, turning record profits into self-funded growth.

Together, they show that under-owned doesn’t mean underperforming—it just means the market hasn’t caught on yet. For investors willing to look beyond the headlines, these three stocks could be among the most rewarding growth stories in the years ahead.

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