Budget-to-Budget Performance of the Small-Cap Index: Top 3 Performers From Union Budget 2025 to 2026

The Union Budget 2025-26 was presented on 1 February 2025 by Finance Minister Nirmala Sitharaman for the fiscal year 2025-26. As markets approach the 2026-27 Budget scheduled on 1 February 2026, it helps to assess how different market segments have fared over the last year.

Broad benchmarks saw muted performance overall across 2025-26. Market moves in 2025 reflected global volatility, foreign outflows, and cautious sentiment before the 2026 Budget, with Nifty 50 and Sensex slipping in late January 2026. Though some rallies were seen (e.g., in metals and financials at times), overall returns were modest relative to many previous years.

The benchmark index Nifty 50 has gained 7.75 per cent since the last budget of FY2025-26, where Sensex has surged by 6.01 per cent. The broader market index, Nifty 500, has given returns of 6.89 per cent since last budget.

Nifty Small Cap 100 saw sharp volatility in 2025, with early-year corrections and selective mid-year outperformance. Overall, the Nifty Smallcap Index closed the period almost flat, down a marginal 0.38 per cent, while its long-term trend remains intact.

Top Performers Since Last Budget

Despite broader small-cap weakness, some individual stocks delivered stellar returns from Budget 2025 to the run-up to Budget 2026.

Hindustan Copper Ltd - 207 per cent Return

Hindustan Copper Limited (HCL), incorporated in 1967, is India’s only vertically integrated copper producer, operating across the entire value chain-from mining to producing copper concentrate, cathodes, and rods. With assets in Rajasthan, Madhya Pradesh, and Jharkhand, the PSU is executing a clear growth roadmap to scale ore production to ~12.2 mtpa by FY31, led by Malanjkhand’s expansion and the revival of long-stalled Jharkhand mines after key regulatory clearances. Its competitive cost structure and improving operational visibility have strengthened the long-term outlook.

The stock’s sharp rally has been driven by record global copper prices, tight supply expectations, and strong energy-transition demand, alongside company-specific triggers such as regulatory breakthroughs, mine restarts, and a new copper block win in Madhya Pradesh. A broader metals upcycle and investor rotation into commodity stocks have further lifted valuations, positioning Hindustan Copper as a standout performer among small- and mid-cap metal stocks.

Multi-Commodity Exchange of India Ltd (MCX) - 125 per cent Return

Multi Commodity Exchange of India Ltd (MCX), operational since November 2003, is India’s leading commodity derivatives exchange and the country’s first listed, national-level electronic commodity exchange, regulated by SEBI. MCX provides a transparent platform for price discovery and risk management across bullion, energy, and base metals, commanding over 99 per cent market share in key non-agricultural commodities. Gold and silver dominate volumes, accounting for nearly 78 per cent of futures turnover, while options-led growth has significantly expanded market depth and participation across retail and institutional investors.

MCX’s strong performance in Q3 FY26 and 9M FY26 was driven by a sharp surge in trading volumes, especially in bullion and energy options. Q3 FY26 saw total income rise 115 per cent YoY and PAT jump 151 per cent YoY, supported by operating leverage and industry-leading EBITDA margins of 76 per cent. Structural tailwinds such as regulatory support for institutional participation, new Service launches (including index and electricity derivatives), rising commodity volatility, and rapid growth in options trading continue to strengthen MCX’s earnings visibility and reinforce its dominant position in India’s commodity markets.

Garden Reach Shipbuilders & Engineers Ltd (GRSE) - 75 per cent Return

Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a premier defence PSU shipyard under the Ministry of Defence, primarily serving the Indian Navy and Indian Coast Guard. It has a strong legacy as the first Indian shipyard to export warships and the only one to have delivered over 100 warships to India’s maritime forces. GRSE has consistently remained profitable, backed by a robust order book and rising defence indigenisation, positioning it as a key beneficiary of India’s long-term naval modernisation drive.

GRSE’s shares rallied sharply after a strong Q3 FY26 performance, where total income rose 46 per cent YoY to Rs 1,958 crore and PAT surged 74 per cent YoY to Rs 171 crore, driven by faster execution and operating leverage. EBITDA jumped 59 per cent YoY, lifting margins and EPS to Rs 14.91. Positive sentiment was further supported by a new MoU with K2 Cranes & Components to strengthen defence and shipyard equipment capabilities, along with the announcement of a Rs 7.15 per share second interim dividend for FY26, with February 3, 2026 set as the record date.

Disclaimer: The article is for informational purposes only and not investment advice.