Despite the small-cap segment's toughest phase in years, some stocks have bucked the trend, delivering extraordinary returns in 2025. The broader small-cap universe has struggled, with the Nifty Smallcap 100 slipping more than 9% year-to-date. However, experts believe that the space will likely recover in 2026.
Expert Insights
According to experts, the probability of a cyclical revival in 2026 is high if earnings in the broader market stabilize, domestic SIP flows remain sticky, and global rates peak out. However, leadership within small caps is likely to be narrower, with the quality-led small/mid segment expected to recover first.
Top Performing Small-Cap Stocks
Here are 5 small-cap stocks that have delivered returns over 150% in 2025:
- Cupid: The stock rallied over 490% in 2025, driven by its expansion into health and diagnostic segments.
- Indo Thai Securities: The stock logged multi-fold returns in 2025, driven partly by strong retail participation and corporate actions.
- Force Motors: The stock gained 175% in 2025 YTD, highlighting its ability to garner investor confidence despite the overall small-cap struggles.
- NACL Industries: The stock delivered 174% returns in 2025 YTD, driven by steady fundamentals and resilient demand for its chemical products.
- SML Mahindra: The stock rallied 162% in 2025, driven by renewed focus on commercial vehicle demand and its strategic backing from Mahindra & Mahindra.
These stocks have demonstrated remarkable resilience and growth potential, despite the challenging market conditions. However, it's essential to remember that investment decisions should be made after thorough research and consultation with certified experts.