Vijay Kedia’s FY26 Scorecard: Losses Dominate with 14 Stocks Falling up to 68%; SME Multibagger Shines

Why It Matters

The results underscore the vulnerability of small‑cap portfolios to macro‑headwinds, highlighting the need for disciplined risk management. For investors tracking star pickers like Kedia, the mixed outcomes illustrate that even seasoned investors can face steep drawdowns, reinforcing the importance of temperament over short‑term performance.

Key Takeaways

• 14 of 17 holdings posted losses, many over 40%.
• Tac Infosec and Affordable Robotic fell >68%.
• TechD Cybersecurity delivered 159% gain, top performer.
• Advait Energy and Yatharth Hospital outperformed with >45% returns.
• Kedia urges long‑term discipline, ignoring paper losses.

Pulse Analysis

The FY26 fiscal year proved especially harsh for India’s mid‑ and small‑cap segments, as tariff disputes, sluggish earnings growth, and persistent foreign institutional outflows sapped liquidity. Adding to the strain, the Iran‑Israel conflict and rising energy prices stoked inflation fears, delaying expectations of U.S. Federal Reserve rate cuts. These macro forces created a volatile backdrop that amplified price swings in lower‑cap stocks, making it difficult for even seasoned investors to generate consistent returns.

Within this turbulent environment, Vijay Kedia’s 17‑stock portfolio reflected the broader market pain, with 14 positions posting double‑digit declines and two tumbling more than 68%. The standout was TechD Cybersecurity, a freshly listed SME that delivered a 159% surge, underscoring the outsized upside potential of early‑stage listings. Adjacent winners such as Advait Energy and Yatharth Hospital posted 57% and 45% gains, respectively, showing that selective bets can still thrive amid a down‑trend. However, the concentration of losses in names like Tac Infosec and Affordable Robotic highlights the inherent risk of a high‑conviction, small‑cap strategy during macro‑driven sell‑offs.

For investors, Kedia’s mixed results reinforce two timeless lessons: temperament and horizon matter more than headline returns. Treating paper losses as notional until realized helps avoid emotional selling, while a disciplined allocation to high‑conviction ideas can capture multibagger opportunities when the market stabilizes. As U.S. investors eye emerging‑market small caps for diversification, they should weigh the heightened volatility against the potential for outsized upside, employing risk controls and a long‑term perspective to navigate cycles similar to FY26’s challenging landscape.