The domestic equity market has been highly volatile in the past year, especially the broader markets. The Nifty smallcap 250 index’s movement can testify to the same.

The index tanked from an all-time high of around 18,500 in September 2024 to around 13,300 in February 2025. After that, it again surged close to the all-time high in mid July 2025, and is currently trading around the 16,000 level.

Owing to the volatility and other factors at play, the 1-year return of the index stood at around 13% (as of 18 February 2026).

However, there are a few smallcap stocks that have not only beaten the index return by big margins but have been rallying up steadily over the years. In this article, we will cover 5 such smallcap stocks with a 1-year return above 100%.

#1 Force Motors: The Defence Order Powering a 292% Smallcap Rally

Force Motors Ltd., a leading commercial vehicle (CVs) manufacturer, is at the top of the list with a 292% rally in the past year.

Force Motors holds a 70% market share in the light commercial vehicles segment it operates in. It also specialises in multi-utility vehicles with a supply chain across different continents, including America, Africa, Asia, the Middle East, and Latin America.

At the beginning of FY26, the company received a huge defence order to supply 2,978 units of Force Gorkha over three years in multiple tranches. This has boosted the revenue visibility for upcoming three years. This development was perhaps one of the reasons behind this 292% rally.

ALSO READ

Sales jumped from ₹1,889 crore in Q3FY25 to ₹2,129 crore in Q3FY26, logging a 12.7% YoY growth. Net profit surged around 123% YoY from ₹110 crore to ₹245 crore during the period.

Return on capital employed (ROCE) stood at 30% compared to the industry median 20.2%, indicating management’s efficiency.

Coming to valuations, the stock is trading at a price/earnings (PE) of 35.6x, slightly higher than the industry median of 33.8x.

However, price/earnings to growth (PEG) ratio stood at 0.4x, lower than the industry median of 0.5x, suggesting that adjusted for growth, the stock is marginally cheaper than the industry median.

1-Year Share Price Chart of Force Motors Ltd.

#2 Hindustan Copper: A Mining Monopoly Capitalising on the EV Boom

Hindustan Copper Ltd., the only vertically integrated refined copper producer in India, rallied 157.5% in the past year. This ‘Miniratna’ CPSE owns each and every operating mining lease of copper ore, with access to over 45% of entire copper ore reserves in India.

There are probably different factors working behind this massive price rally. From increasing global demand for copper, to increasing number of renewable energy projects, electric vehicle production, where copper is one of crucial raw materials, and more.

That said, the company’s primary benefit is the near-monopoly it holds when it comes to copper mining in India. While there are other producers of refined copper, such as Hindalco Industries Ltd. or Adani Group, these companies have to import copper ore for production.

The October-December quarter witnessed a massive growth as sales almost doubled YoY from ₹328 crore in Q3FY25 to ₹687 crore in Q3FY26, logging a 110% YoY growth. Net profit grew 149% YoY from ₹63 crore to ₹156 crore during the period. This massive surge in profit is perhaps another reason behind the stock price rally.

The ROCE is 23.8%, which is slightly higher than the industry median of 23.2%, indicating operational efficiencies.

The stock is trading at a PE of 82.2x, which is lower than the industry median of 90.3x, indicating a relatively cheaper valuation. However, the PEG ratio is 11x, way above the industry median of 4.5x.

1-Year Share Price Chart of Hindustan Copper Ltd.

#3 Netweb Technologies: The AI-Infrastructure Play with a ₹4,270 Crore Pipeline

Netweb Technologies India Ltd., India’s leading high-end computing solutions provider, rallied 131.2% in the past year.

The company offers an entire range of products and solutions for designing, developing, implementing, and integrating high-performance computing solutions. As of 31st December 2025, the company installed over 600 supercomputing systems, more than 7,000 accelerator or GPU-based AI systems, and more.

A primary reason behind the rally could be its excellent topline visibility with a pipeline worth ₹4,270 crore. The company also executed a large order worth ₹450 crore during Q3FY26, which further strengthened its position as the largest Original Equipment Manufacturer (OEM) in the high-end computing solutions arena.

The management is anticipating the revenue to grow at around 30% to 40% compound annual growth rate (CAGR) for the next fiscal year.

Coming to the Q3FY26 performance, the company witnessed one of the best quarters, with an astounding rise in sales and profit alike. Sales in Q3FY26 stood at ₹805 crore, up from ₹334 crore in Q3FY25, growing at 141% YoY. Net profit for the period surged from ₹30 crore to ₹73 crore, logging a 147% YoY growth.

Return ratios also dictate the massive growth in the business, as Return on Equity (ROE) is at 23.9%, double the industry median of 12.7%. Similarly, the ROCE is at 32.5%, 2x of the industry median 16.4%.

However, the valuation seems to be pretty extended owing to the massive rally, as the stock is currently trading at a PE of 110.3x compared to the industry median of 26.8x. Even the PEG ratio is way higher at 1.5x, compared to industry median of 0.6x, which suggests that even if adjusted for growth, the stock is trading at a premium.

1-year Share Price Chart Netweb Technologies India Ltd.

#4 Kirloskar Oil: B2B Industrial Growth Sets a $2 Billion Revenue Horizon

Kirloskar Oil Engines Ltd. (KOEL) is a leading manufacturer and service provider for diesel engines and diesel generators. This stock rallied 130% in the last year, mostly driven by stellar performance in Q2 and Q3 FY26, followed by strategic restructuring and more.

During Q3FY26, the company transferred its B2C operations to a wholly owned subsidiary – KOEL Fluid Dynamics Private Limited via a slump sale. The topline growth of the B2C segment stood at 18% YoY and witnessed a significant rise in export business.

In the B2B segment, during Q3, KOEL witnessed the highest-ever quarterly sales from Industrial orders. Domestic industrial business grew at 41% YoY, and the distribution business offered another 14% YoY growth.

Overall sales grew from ₹1,454 crore in Q3FY25 to ₹1,873 crore in Q3FY26, growing at 28.8% YoY. Net profit grew from ₹68 crore to ₹109 crore, logging an 80% YoY growth.

The management is strategizing to become a $2 billion company by FY30 and expects the margins to improve accordingly over the years. Currently, ROCE is at 16.7%, while the ROE is at 15.4%, lower than the industry median of 25.7%, and 20.6% respectively.

Coming to the valuation, the stock is trading at a PE of 38.5x, slightly above the industry median of 38.1x; the PEG ratio is 1x, lower than the industry median of 1.4x.

1-Year Share Price Chart of Kirloskar Oil Engines Ltd.

#5 RBL Bank: Capital Infusion and Bottom-Line Recovery Spark a 555% Profit Surge

RBL Bank Ltd., a private sector bank offering full-fledged banking products and services, witnessed a massive 113.2% rally in the past year. This rally might have been a result of Emirates NBD infusing around ₹27,000 crore ($3 billion) in the bank via a preferential issue in a strategic investment move acquiring 60% stake in the company.

Amidst sluggish annual business growth, during the October-December quarter, the revenue went up to ₹3,667 crore, compared to ₹3,536 crore in Q3FY25, logging a 3.7% YoY rise. However, net profit jumped from mere ₹33 crore to ₹214 crore during the period, growing at 555% YoY. This could be another trigger for the stock rally witnessed in the past year.

Currently, ROE is at 4.6%, way lower than the industry median of 13.2%. However, the management suggests that ROE will go down further due to the capital infusion, which is in the pipeline. However, they are positive about the return on assets (ROA) increasing significantly in FY27 and FY28.

ALSO READ

The stock is currently trading at a PE of 30.4x, way higher than its industry median of 16.3x, indicating a premium valuation.

1-Year Share Price Chart of RBL Bank Ltd.

Other stocks that rallied over 100% in the past year

Wrapping Up

These smallcap stocks once again proved that volatility doesn’t kill opportunity in the stock market. Even though the broader market remained rough during the past year, above-mentioned stocks offered breathtaking returns to the investors amidst all the volatility, primarily owing to strong fundamentals, solid topline visibility, capital infusion, business restructuring, and increasing global demand.

So, if you want to know whether these stocks continue to pour in such big returns in the future or not, you need to add them to your watchlist and keep a close eye on them.

Disclaimer:

We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information. 

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only. 

Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible. 

Disclosure: The writer and her dependents do not hold the stocks discussed in this article. 

The website managers, their employees (s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein.  The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors.  Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.