Small-cap earnings crisis deepens: Rs 4 lakh crore market loss looms

India’s small-cap stocks face deep earnings misses and Rs 4 lakh crore of market-value erosion in 2025.

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Small-cap earnings crisis deepens: Rs 4 lakh crore market loss looms

Small-cap earnings crisis deepens: Rs 4 lakh crore market loss looms
Q2 earnings in India reveal that small-cap companies are under significant stress: missing estimates at the highest rate among market segments and generating a combined market-value loss of roughly Rs 4 lakh crore in 2025 so far. While large cap firms posted modest growth, analysts say this divergence may widen if macro conditions weaken and earnings momentum falters. 
The BSE SmallCap index is down over 4% this year, and nearly half of the stocks are down at least 20%. 
Tags:
  • stocks
  • India