ET Intelligence Group: Amid the broader market weakness of 2026, investor portfolios are taking a hit outside the benchmark indices. ETIG's analysis reveals that more than half of India's mid-to-large tier companies with market caps of ₹1,000 crore or more have failed to generate returns this year.
Additionally, eight companies have wiped out over half of their market capitalisation in just nine months, dragging their valuations below five-year historical averages. These companies are Rajesh Exports, KPIT Technologies, Ugro Capital, GRM Overseas, CE Info Systems, Fino Payments Bank, Ramky Infrastructure, and KEC International.
The total sample includes 920 companies with market caps of ₹1,000 crore and above that have five-year valuation data. Of this, 51% or 466 companies have nor yielded returns so far in the current year.
In addition, one out of every seven companies, 132 to be precise, has fallen by 25% or more since the beginning of the year.
Apart from macro-headwinds, company-specific factors also played a role in the sharp decline in stock prices. In the sub-sample of companies that reported 50% or more erosion in market cap, Rajesh Exports faced regulatory intervention banning its promoters from the securities market, which affected investor sentiment.
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Fino Payments Bank was another stock that suffered from governance issues. Ugro Capital, a lender to small and medium enterprises, took a hit amid escalated funding costs and high operating expenses.
KPIT Technologies, a mid-tier IT exporter, faced project delays and lower tech budgets from some of the key clients while MapmyIndia parent CE Infosystems reported lower profit margin amid write-off of a specific customer receivables. GRM Overseas, an exporter of rice and other food items, faced margin compression due to rising input costs. Infrastructure companies including Ramky Infrastructure and KEC International reported margin pressure amid high input costs and execution woes.
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The performance of the domestic benchmark equity indices has been affected by the flight of foreign investors amid geopolitical uncertainties and rising preference for themes and sectors fuelling the artificial intelligence (AI) boom. Moreover, the sustained Iran-US conflict has increased volatility in crude oil prices, which affects net energy importers such as India. FPIs have sold $27.8 billion (around ₹2.6 lakh crore) of Indian equities in the first nine months of 2026, surpassing the $18.9 billion sell-off in the entire previous year.
