Small-cap stocks cutting debt by up to 58% in a year show signs of improved financial discipline and focus on stability. For investors, this lowers risk and boosts long-term growth potential. It also suggests that companies are preparing for tougher market conditions by strengthening their balance sheets and reducing interest burden. Following is a list of 4 Companies to look out for.
1. Gala Precision Engineering
Manufactures springs and precision components for global OEMs across 25+ countries, focusing on sustainability. Serves renewable energy, industrial, and mobility sectors. Gala Precision Engineering Limited’s stock, with a market capitalisation of Rs. 1,107 crores, fell to Rs. 867 , hitting a low of up to 2.16 percent from its previous closing price of Rs. 886.15.
In Q4FY25, the company posted strong revenue growth, rising 31.2 percent YoY to Rs. 75.31 crore from Rs. 57.40 crore in Q4FY24, and up 29.6 percent QoQ from Rs. 58.12 crore in Q3FY25. Net profit jumped 50.5 percent YoY to Rs. 9.99 crore from Rs. 6.64 crore, and surged 89.2 percent QoQ from Rs. 5.28 crore, reflecting improved operational efficiency.
The company also made significant progress in strengthening its balance sheet, reducing debt by 57.9 percent YoY, from Rs. 57 crore in FY24 to Rs. 24 crore in FY25. This sharp decline in debt signals improved financial health and positions the company well for future growth.
2. Vimta Labs
Leading Indian research and testing firm with 35+ years of experience. Offers clinical, analytical, and environmental services for pharma, food, and biotech. Vimta Labs Limited’s stock, with a market capitalisation of Rs. 485.14 crores, rose to Rs. 545, hitting a high of up to 16.96 percent from its previous closing price of Rs. 465.95.
In Q4FY25, the company reported a 28.8 percent YoY rise in revenue to Rs. 94 crore from Rs. 73 crore, and a 4.4 percent QoQ increase from Rs. 90 crore in Q3FY25. Net profit grew 50 percent YoY to Rs. 18 crore from Rs. 12 crore, though it declined 18.2 percent QoQ from Rs. 22 crore.
The company also improved its balance sheet, cutting debt by 52.6 percent YoY, from Rs. 19 crore in FY24 to Rs. 9 crore in FY25. This significant reduction strengthens its financial position and enhances its ability to fund future growth with lower leverage.
3. Epigral
Produces speciality chemicals like CPVC resins and caustic soda. Caters to construction, agriculture, and textile industries in domestic and global markets. Epigral Limited’s stock, with a market capitalisation of Rs. 7,753 crores, fell to Rs. 1,794, hitting a high of low of 0.43 percent from its previous closing price of Rs. 1,802.50.
In Q4FY25, the company recorded revenue of Rs. 628 crore, up 19.6 percent YoY from Rs. 525 crore but down 2.6 percent QoQ from Rs. 645 crore. Net profit rose 13 percent YoY to Rs. 87 crore from Rs. 77 crore, though it declined 16.3 percent QoQ from Rs. 104 crore, indicating some margin pressure during the quarter.
The company made strong progress in deleveraging, reducing its debt by 38.5 percent YoY, from Rs. 964 crore in FY24 to Rs. 593 crore in FY25. This substantial reduction enhances its financial stability and provides greater flexibility for future expansion and operational resilience.
4. R R Kabel
Manufactures cables, wires, switches, fans, and lighting products. Serves residential, commercial, and industrial needs with global safety standards. R R Kabel Limited’s stock, with a market capitalisation of Rs. 16,569 crores, rose to Rs. 1,522, hitting a high of up to 4.11 percent from its previous closing price of Rs. 1,461.80.
In Q4FY25, the company posted revenue of Rs. 2,218 crore, marking a 26.5 percent YoY increase from Rs. 1,754 crore and a 24.4 percent QoQ rise from Rs. 1,782 crore. Net profit surged 63.3 percent YoY to Rs. 129 crore from Rs. 79 crore and jumped 87 percent QoQ from Rs. 69 crore, driven by strong operational performance and improved margins.
The company also strengthened its balance sheet by reducing debt by 19.4 percent YoY, from Rs. 360 crore in FY24 to Rs. 290 crore in FY25. This reduction reflects better cash flow management and positions the company for sustainable growth with improved financial stability.
Written By Fazal Ul Vahab C H
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