4 High-Growth Smallcaps with Aggressive Capacity Expansion Plans for FY26

Small-cap companies in India are driving growth through strategic investments, capacity expansions, and entry into high-growth sectors. Here are four stocks with significant expansion plans for FY26 that are worth adding to your watchlist.

Smallcap StocksCapacity ExpansionIndian CompaniesMarket GrowthStrategic InvestmentsReal EstateOct 04, 2025

4 High-Growth Smallcaps with Aggressive Capacity Expansion Plans for FY26

Real Estate:Small-cap stocks in India are increasingly gaining investor attention as companies focus on capacity expansion to meet rising demand and diversify revenue streams. Recent developments in strategic investments, manufacturing scale-ups, and entry into high-growth sectors are driving long-term growth prospects. Investors are optimistic about these companies’ ability to enhance cash flows, strengthen market positioning, and deliver consistent returns over the next few years.

We have highlighted the net block metric in our analysis to capture the tangible asset growth and long-term investment in infrastructure across these companies. Net block refers to the value of a company’s fixed assets, such as plants, machinery, and equipment, after accounting for depreciation. Comparing the net block over a three-year period allows us to gauge how aggressively a company is investing in expanding capacity, modernizing assets, and supporting sustainable growth.

1. Lloyds Enterprises Ltd

Lloyds Enterprises Limited, along with its subsidiaries, operates in the iron and steel industry in India, and also has diversified interests in real estate, engineering, electrical, and mining segments. The company is involved in residential, commercial, and plot-driven real estate projects, as well as gold and iron mining operations. Beyond core operations, Lloyds manages a portfolio of financial investments and strategic business initiatives.

The company has a market cap of Rs. 9,528.28 crore with a current market price of Rs. 66.23. Its net block stands at Rs. 253.90 crore, up from Rs. 13.95 crore three years ago, reflecting a compounded sales growth of 214.54 percent over the same period. Lloyds has delivered a six-month return of 66.60 percent, underscoring its strong investor appeal.

Post-Q1FY26, Lloyds Enterprises strategically invested in Geomysore Services India Pvt. Ltd (GMSI), acquiring a stake in India’s first privately operated gold mine since Independence. With a mine life extending to 2043, peak revenue visibility of around Rs. 950 crore per annum, and expected EBITDA of Rs. 700 crore, this investment positions the company for significant long-term cash flows.

Additionally, Lloyds Realty (its real estate subsidiary) signed a non-binding MoU for a warehousing and logistics project on ~99 acres in Navi Mumbai, potentially generating over Rs. 1,250 crore in revenue over three to four years. The Board has also approved a Rights Issue to raise approximately Rs. 992.26 crore, demonstrating a strategic approach to fund these high-growth expansions.

2. Senores Pharmaceuticals Ltd

Senores Pharmaceuticals Limited develops, manufactures, and markets pharmaceutical and allied products across India, the US, the UK, Canada, and other international markets. The company offers a broad range of solutions including critical care medicines, analgesics, antibiotics, antiviral, antifungal, antineoplastic, cardiovascular, neurology, and vitamin and mineral preparations, along with management and consultancy services for healthcare providers.

Senores Pharmaceuticals has a market cap of Rs. 3,288.22 crore with a CMP of Rs. 714. Its net block is Rs. 300.69 crore, rising from Rs. 6.90 crore three years ago, reflecting a three-year compounded sales growth of 204.04 percent. The company’s six-month return stands at 20.26 percent.

The company is scaling up its operations to meet growing global demand. In FY26, it plans to launch 15–16 ANDA products, primarily in H2. Its CDMO-CMO segment has expanded with 5 new products in Q1, taking the portfolio to 27 products, with over 50 in the pipeline as of June 2025.

Expansion of the US manufacturing facility from 1.2 billion to nearly 2 billion units, alongside tentative capex of INR 100–150 crore this year, underscores its aggressive capacity augmentation strategy. Additionally, the CDMO-CMO order book of US$ 23 million reflects strong demand visibility driving the need for increased production capacity.

3. Servotech Renewable Power System Ltd

Servotech Renewable Power System Limited manufactures and sells LED lighting, EV chargers, and solar energy products domestically and internationally. Its offerings include LED tube lights, streetlights, floodlights, oxygen concentrators, solar inverters, panels, batteries, tubular batteries, and servo stabilizers, catering to both commercial and industrial applications.

The company has a market cap of Rs. 2,936.46 crore and a CMP of Rs. 130.02. Its net block has increased to Rs. 71.77 crore from Rs. 11.80 crore three years ago, reflecting a three-year compounded sales growth of 67.44 percent, with a six-month return of 6.10 percent.

Servotech has expanded capacity strategically through a 27 percent stake acquisition in Rhine Solar for panel manufacturing, ensuring DCR compliance and margin improvement. The company is also focusing on EV on-board chargers targeting OEM supply, planning a subsidiary in the UAE to access GCC and African markets, and aggressively expanding its distribution network by adding approximately two channel partners daily. These measures highlight its strategic approach to scaling capacity to meet market opportunities.

4. Hariom Pipe Ltd

Hariom Pipe Industries Limited manufactures iron and steel products, including mild steel pipes, tubes, billets, galvanized pipes, pre-galvanized products, and scaffolding solutions. The company serves both industrial and construction sectors, offering a comprehensive range of products from square and rectangular pipes to adjustable props and clamps.

The company has a market cap of Rs. 1,585.66 crore and a CMP of Rs. 512.05. Its net block currently stands at Rs. 423.83 crore, up from Rs. 53.56 crore three years ago, reflecting a three-year compounded sales growth of 55.02 percent. Hariom Pipe has delivered a six-month return of 61.25 percent.

At the start of FY26, the company set a target of 30 percent year-on-year volume growth and exceeded it with Q1 volumes at 78,221 metric tons, marking a 35 percent increase versus Q1FY25. The company has leased Ultra Pipes assets for 99 years, adding 84,000 MTPA capacity.

Total capacity in FY25 was 701,232 metric tons and has risen to 785,232 metric tons in FY26 on an annualized basis as of June 2025, reflecting a clear commitment to expand production and meet growing demand.

Frequently Asked Questions

What is the net block metric and why is it important?

The net block metric refers to the value of a company’s fixed assets, such as plants, machinery, and equipment, after accounting for depreciation. It is important because it helps gauge how aggressively a company is investing in expanding capacity, modernizing assets, and supporting sustainable growth.

Which company is planning to launch the most ANDA products in FY26?

Senores Pharmaceuticals Ltd is planning to launch 15–16 ANDA products in FY26, primarily in the second half of the fiscal year.

What significant real estate project is Lloyds Realty involved in?

Lloyds Realty has signed a non-binding MoU for a warehousing and logistics project on approximately 99 acres in Navi Mumbai, which is expected to generate over Rs. 1,250 crore in revenue over three to four years.

How much has Hariom Pipe Ltd's capacity increased in FY26?

Hariom Pipe Ltd's total capacity has increased from 701,232 metric tons in FY25 to 785,232 metric tons in FY26, reflecting a clear commitment to expand production and meet growing demand.

What is Servotech Renewable Power System Ltd's strategy for expanding its distribution network?

Servotech is aggressively expanding its distribution network by adding approximately two channel partners daily, focusing on EV on-board chargers targeting OEM supply, and planning a subsidiary in the UAE to access GCC and African markets.