Mayur Patel forecasts strong earnings growth for Indian small-caps and Nifty 50

Mayur Patel, who leads listed-equity strategies at 360 ONE Asset, told Ananya Chaudhuri that small-cap companies are set to deliver around 30% earnings growth in FY27, markedly higher than the mid-teens expected for large-cap peers. He expects the Nifty 50’s profit after tax to rise by more than 20% year-on-year in the September quarter and anticipates a further 14% earnings increase in FY28 after a robust FY27. Patel identified three main drivers for Indian equities: strong earnings momentum, a 26% year-on-year jump in August merchandise exports with electronics nearly doubling, and potential macro relief from stabilising global yields, a resolution of the West Asia conflict, and clearer US tariff policy.

He added that sectors such as capital goods, defence, EMS and CDMO are leading small-cap growth, while valuations for the Nifty Smallcap 250 stay at a modest premium to its long-term median price-to-book. Flexi-cap fund inflows have risen over 30% in September, reflecting investor confidence in the earnings outlook across market caps.