Retail investors trim stakes in 12 small-cap stocks for 3 straight quarters; 3 surge over 100% in FY26

Contradictory Retail Investor Trends in Small-Cap Stocks

As the December-quarter shareholding data for small-cap companies begins to roll out, early disclosures reveal an interesting market contradiction.

Decline in Retail Investor Stakes

Retail investors, defined as resident individuals holding nominal share capital up to Rs 2 lakhs, have steadily reduced their stakes for three consecutive quarters in FY26 across 68 small-cap stocks.

Puzzling Price Action

• More than half of these stocks (35 out of 68) have delivered double-digit returns in FY26 so far.
• Despite this, retail participation continued to decline.
• This raises questions about whether retail investors are prematurely stepping aside and missing the next leg of upside.

12 Small-Cap Stocks with Double-Digit Returns

These stocks surged between 40% and 130% during FY26, including three multibaggers, highlighting a growing disconnect between ownership trends and market performance.

Stock Performance Examples

• Stock 1: Has gained 102% in FY26 so far, moving up from Rs 60 to Rs 122.
  • Retail shareholding declined from 37.63% in June ’25 to 34.85% in December ’25.
• Stock 2: Has surged 67% in FY26 so far, climbing from Rs 2,778 to Rs 4,633.
  • Retail shareholding slipped from 5.82% in June ’25 to 5.36% in December ’25.