INCOME TAX23 Sept 2026
Smallcaps have grown up, but so has the risk | Mint
Smallcap is a moving label. The Association of Mutual Funds in India (AMFI) now puts the smallcap cut-off near ₹33,500 crore, up from about ₹17,400 crore in June 2023. So a company can grow and still stay 'small'. If you hold smallcaps, look at leverage and earnings, not just the label. Smallcap profits rose 35% in Q1 FY27, beating largecaps.
Key Statutory Highlights
- AMFI's June 2026 classification puts the smallcap cut-off at roughly ₹33,500 crore, almost double the about ₹17,400 crore of June 2023.
- The largecap cut-off moved from about ₹49,700 crore to roughly ₹1.06 lakh crore, so the whole market-cap ladder shifted upward.
- The Small Cap 100 debt-equity ratio fell from 0.87 in FY13 to 0.23 in FY26, and smallcap earnings grew 35% year-on-year in Q1 FY27.
Actionable Advice for Taxpayers / Founders:Before adding smallcaps, check each company's debt levels and recent earnings trend instead of trusting the smallcap label alone, and size your positions to risks you can actually handle.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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