Four fast-growing smallcap companies to keep on your watchlist
Among these, smallcap companies defined as firms with a market capitalization below ₹5,000 crore, are garnering attention for their agility, innovation, and explosive growth potential.
These businesses often operate in niche sectors or emerging industries, and are high-risk; they also offer the possibility of outsized returns, especially for investors with a long-term horizon.
Over the last few years, the Indian smallcap space has witnessed a remarkable transformation, fuelled by structural reforms, digital adoption, expanding domestic consumption, and growing global demand for Indian products and services.
In this context, we bring you a curated list of the four fastest growing smallcap companies in India that deserve a spot on your watchlist.
#1 SG Mart
SG Mart is a tech-enabled B2B company that offers a range of products in over 27 categories and over 2,500 SKUs.
These categories include steel construction products like TMT rebars, HR sheet, welding rod, binding wire, mesh net, tapping screw and barbed wire, tiles, cement, bath fittings, laminates and paints.
Additionally, the company has expanded into categories like tiles, cement, bath fittings, laminates and paints, catering to a wide spectrum of construction needs.
The company has warehouses across India, some of which are located at Pune, Bangalore, Dujana and Raipur.
It has an extensive network, ensuring easy accessibility and efficient distribution. The company has established strong partnerships with over 75 suppliers and serves top-tier EPC companies, real estate developers, OEMs, traders, dealers, and retailers across 24 states.
SG Mart has a well-diversified and top-rated clientele, including NMDC, JSW Steel, Jindal Steel & Power, Hindustan Zinc, Godawari Power & Ispat, Havells, Triveni Enterprises, and Kajaria.
SG Mart reported stellar revenue growth of 118.3% in FY25 and Ebitda growth of 66.8%. However, Ebitda margins fell yearly. Profit after tax grew by a solid 69.7% YoY.
Going forward, the management is confident of doubling Ebitda to ₹200 crore in FY26 and ₹400 crore in FY27, maintaining a minimum 25% ROCE.
#2 Eureka Forbes
Eureka Forbes Ltd (EFL) is part of the private equity firm Advent, which was bought from Shapoorji Pallonji group company, Forbes Ltd.
The company is engaged in the health and hygiene segment, with product profiles comprising water purifiers, vacuum cleaners, air purifiers, and home security systems.
Aquaguard is Eureka Forbes's award-winning water purifier brand, and the Forbes vacuum cleaners are the company's market leaders.
As the largest direct-selling company in the world, its direct sales force has over 21,000 dealers across 10,000 cities and towns in India. It alsooperates from 150+ customer response centres in over 120 cities and towns across the country.
The company has more than 20 million customers in over 1,500 cities across 35 countries. Almost 80% of customers have service centres within a 5 km radius, and over 8,000 trained technicians.
While traditionally seen as a consumer brand, the company is now investing heavily in smart technologies, product innovation, and premium positioning with an eye on long-term EMS-adjacent scale in connected devices.
The company recorded revenue growth of 11.3% for FY25. Ebitda, however, has grown 35.1%, thanks to a substantial jump in margins, which were 10.9% for FY25 from 9.1% in FY24.
Going ahead, the management is confident of further improvement in performance with a disciplined execution of the strategic agenda.
#3 Waaree Renewable Technologies
Incorporated in 1999, Waaree Renewables Technologies Ltd is engaged in the business of generation of power through renewable energy sources and also provides consultancy services in this regard.
It's one of India's largest vertically integrated new energy companies. It has India's largest solar panel manufacturing capacity of 12 GW at its plants in Chikhli, Surat, and Umbergaon in Gujarat.
The company is a subsidiary of Waaree Group and is spearheading the solar EPC business.
Waaree Group is a leading renewable energy company that caters to individual, industrial, and commercial customers. The group has installed 10,000+ solar projects with a cumulative installation of over 1.9+ GW.
The company is engaged in two business segments, namely the EPC which derives 98% of revenues and power sale which constitute 2% of the revenues.
The company is a leading Indian module manufacturer and a Tier 1 solar module manufacturer. Waaree Renewable has a distinguished clientele – Adani, Arcelor Mittal, Aditya Birla group, Bharat Petroleum, Larsen & Toubro, Mumbai metro, MMRDA, Mondelez International, NTPC, Reliance, etc.
The company has over 1,400 authorized sale points and franchises in India and has commissioned projects across 13 states.
The company has an energy generation site located in Maharashtra, India. It has a 12 GW module capacity & it has a plan to expand 5.4 GW cell capacity by FY25.
Coming to the financials, Waaree reported a strong growth of 82.3% in revenue from operations for FY25 over FY24. Ebitda and profit after tax jumped 50.1% and 57.6% respectively with Ebitda margins coming in at 20.4% versus 24.1% in FY24.
Going ahead, the management is confident about the long-term growth of India's renewable energy market, driven by supportive policies, advancing technologies, and the increasing use of solutions like BESS, hybrid projects, and data centres.
#4 Swan Energy
Swan Energy Ltd (SEL) was incorporated in 1909 as Swan Mills Ltd (SML), a manufacturer and marketer of cotton and polyester textile products in India.
Over the years, it has diversified into real estate and is developing a floating storage and regasification units-based liquid natural gas (LNG) import terminal at Jafrabad in Gujarat.
The wind beneath Swan Energy's wings came from acquiring Veritas India in FY23 for ₹260 crore. VIL trades and distributes chemicals and petrochemical products used in paint, oil refining, etc. It operates a terminal in Hamriyah, UAE, with a capacity of 170,000 MT.
The company is setting up India's first greenfield LNG port terminal at Jafrabad Port, Gujarat, with a total capacity of 10 mtpa, through its subsidiaries Swan LNG and Triumph Offshore. The project operates on a 'tolling terminal' business model, with 4.5 mtpa of throughput capacity booked on a 20-year 'use or pay' basis by state and central PSU companies.
The company has executed over 26.16 lakh sq. ft. of commercial & residential projects in Mumbai, Bangalore, and Hyderabad. It is also exploring new opportunities in Mumbai and Bengaluru and plans to capitalize on its land assets in Mangalore and Bengaluru.
Swan Energy owns warehouses spanning approximately 600,000 sq. ft, across Mumbai, Bangalore, and Delhi, through the Veritas Logistics business.
The company offers cotton fabrics, polyester cotton, rayon, cotton linen, lycra, non-lycra, etc. It operates a textile processing unit in Ahmedabad, Gujarat, with a production capacity of 1 lakh meters per day.
Swan Energy saw remarkable growth in its consolidated revenue for the full financial year after suffering back-to-back losses in the previous four years.
Swan Energy reported a 1.6% decline in its revenue from operations for FY25; however, profit after tax jumped 49.2% YoY on the back of strong other income.
Conclusion
India's smallcap landscape is evolving rapidly, powered by structural reforms, technological advancement, and growing investor appetite for high-growth businesses operating in niche and emerging sectors.
As investors increasingly look beyond bluechip stocks, smallcap companies—often agile, entrepreneurial, and deeply rooted in high-growth sectors—are capturing attention for their ability to deliver outsized returns.
For investors, the key lies in identifying companies with strong fundamentals, consistent execution, scalable business models, and a clear growth trajectory.
While due diligence and a long-term mindset are essential, those willing to navigate short-term volatility may find significant value in this segment.
Keeping a curated watchlist of high-potential smallcaps could be a smart strategy for investors aiming to align with the next wave of economic growth.
With the right research and a balanced approach, smallcaps may offer unique growth opportunities and substantial potential.
As always, investing decisions should be guided by individual risk tolerance, financial goals, and proper due diligence.
Remember the challenges before diving headfirst.
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
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