4 Smallcap Improving Quarterly Operating Margin Stocks to Watch for Future Multibagger Potential: Kajaria Ceramics, Sumitomo Chemical, Sarda Energy and ICRA

Improving quarterly operating margin stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Kajaria Ceramics, Sumitomo Chemical, Sarda Energy and ICRA meet that test, with market caps from Rs 4,361 crore to Rs 18,318 crore and Kajaria Ceramics offering the strongest latest-quarter profit growth at 55.04%. Each of these companies has a market capitalisation below Rs 30,000 crore and a latest quarter operating margin at least 2 percentage points above the FY26 operating margin, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a market capitalisation below Rs 30,000 crore and a latest quarter operating margin at least 2 percentage points above the FY26 operating margin, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening improving quarterly operating margin stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 28 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Improving Quarterly Operating Margin Stocks and Why Do They Attract Multibagger Interest?

Improving quarterly operating margin stocks are shares of smaller companies whose operating margin in the latest quarter is clearly higher than the margin for the full financial year, a sign that profitability is improving. The four here cover agrochemicals, steel and power, credit ratings and ceramic tiles.

A higher operating margin in the latest quarter means the company keeps more from each rupee of sales, and continued profit growth shows that the gain is real and not a one-off. For improving quarterly operating margin stocks, both FY26 and the latest quarter showed growth. A sensible way to study improving quarterly operating margin stocks is to look at profit growth, returns and valuation side by side. Below, each of improving quarterly operating margin stocks gets its own breakdown of growth, returns and valuation. Treat improving quarterly operating margin stocks as a research list, since share prices and rankings change with every earnings season.

Improving Quarterly Operating Margin Stocks at a Glance: Price, Market Cap, PE and ROE

Prices are closing prices as of 28 October 2026. Sarda Energy has the lowest PE of the group at 13.83, while Sumitomo Chemical posts the highest return on equity at 16.02%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
Kajaria Ceramics	1,103.70	18,318	33.45	30.35	15.83%	0.07	869.60 to 1,293.80
Sumitomo Chemical India	335.45	18,246	31.49	23.42	16.02%	0.02	335.45 to 572.05
Sarda Energy and Minerals	455.20	15,917	13.83	22.42	15.00%	0.36	443.95 to 624.00
ICRA	4,463.50	4,361	22.22	33.26	15.37%	0.02	4,198.20 to 6,620.00

Kajaria Ceramics: Debt-to-Equity of 0.07

Kajaria Ceramics is the largest tile maker in India by capacity, selling ceramic and vitrified tiles across the country. It reported FY26 revenue of Rs 4,883.22 crore, up 4.39% year on year, and net profit of Rs 490.06 crore, up 40.70%. Net profit has compounded at 6.37% a year since FY22, while revenue has grown 6.95% a year. Operating margin was 18.05% in FY26. The debt-to-equity ratio is 0.07, which keeps interest costs low.

In the June 2026 quarter, revenue rose 20.54% to Rs 1,345.22 crore and net profit grew 55.04% to Rs 171.03 crore. The stock trades at a PE of 33.45 against an industry PE of 30.35, with a return on equity of 15.83%.

Sumitomo Chemical: Debt-to-Equity of 0.02

Sumitomo Chemical India sells crop protection, household insecticides and crop nutrition products, backed by its Japanese parent. It reported FY26 revenue of Rs 3,385.04 crore, up 3.56% year on year, and net profit of Rs 542.98 crore, up 7.22%. Net profit has compounded at 6.41% a year since FY22, while revenue has grown 2.32% a year. Operating margin was 24.77% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.

The stock trades at a PE of 31.49 against an industry PE of 23.42, with a return on equity of 16.02%. In the June 2026 quarter, revenue rose 1.37% to Rs 1,110.63 crore and net profit grew 20.44% to Rs 214.51 crore. Domestic institutions raised their holding from 8.47% in September 2025 to 9.69% in September 2026.

Sarda Energy: Revenue Up 23.10% in FY26

Sarda Energy and Minerals makes sponge iron, steel products and ferro alloys, mines iron ore and coal, and generates power for captive use and sale. It reported FY26 revenue of Rs 5,927.54 crore, up 23.10% year on year, and net profit of Rs 1,063.30 crore, up 56.09%. Net profit has compounded at 7.10% a year since FY22, while revenue has grown 10.58% a year. Operating margin was 35.76% in FY26. The debt-to-equity ratio is 0.36.

In the June 2026 quarter, revenue rose 0.22% to Rs 1,716.53 crore and net profit grew 9.39% to Rs 462.81 crore. The share price has gained 472.57% over five years. Promoters hold 73.16%, which keeps ownership stable. The stock trades at a PE of 13.83 against an industry PE of 22.42, below the sector average, with a return on equity of 15.00%.

ICRA: Debt-to-Equity of 0.02

ICRA is a credit rating and research company promoted by Moody’s, and it also offers analytics, consulting and risk management services. It reported FY26 revenue of Rs 674.53 crore, up 17.22% year on year, and net profit of Rs 182.53 crore, up 6.62%. Net profit has compounded at 12.60% a year since FY22, while revenue has grown 15.15% a year. Operating margin was 47.23% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.

The stock trades at a PE of 22.22 against an industry PE of 33.26, below the sector average, with a return on equity of 15.37%. The dividend yield is 2.32%. In the June 2026 quarter, revenue rose 28.32% to Rs 191 crore and net profit grew 32.04% to Rs 56.46 crore. Foreign investors raised their holding from 6.87% in September 2025 to 8.00% in September 2026.

Improving Quarterly Operating Margin Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these improving quarterly operating margin stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.

Stock	Revenue (Rs Cr)	Net Profit (Rs Cr)	Revenue Growth (YoY)	4-Year Revenue CAGR	4-Year Net Profit CAGR	Operating Margin (Latest Quarter)
Kajaria Ceramics	4,883.22	490.06	4.39%	6.95%	6.37%	20.98%
Sumitomo Chemical	3,385.04	542.98	3.56%	2.32%	6.41%	28.92%
Sarda Energy	5,927.54	1,063.30	23.10%	10.58%	7.10%	47.94%
ICRA	674.53	182.53	17.22%	15.15%	12.60%	53.32%

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Institutional Holding in Kajaria Ceramics, Sumitomo Chemical, Sarda Energy and ICRA

Institutional holding shows who is backing these improving quarterly operating margin stocks alongside the promoter. The table uses the latest reported quarter for each. Kajaria Ceramics has the deepest institutional backing, with FII and DII together holding 37.83% as of June 2026. Domestic institutions increased their holding over the past year in Sumitomo Chemical (from 8.47% to 9.69%).

Stock	Promoter	FII	DII	Public	Quarter
Kajaria Ceramics	47.69%	11.58%	26.25%	14.48%	June 2026
Sumitomo Chemical	75.00%	2.89%	9.69%	12.42%	September 2026
Sarda Energy	73.16%	3.52%	3.48%	19.85%	June 2026
ICRA	51.87%	8.00%	20.12%	20.01%	September 2026

Risks to Weigh in Improving Quarterly Operating Margin Stocks

Being careful with improving quarterly operating margin stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:

• Past growth may not repeat.
• Share prices can move sharply in either direction.
• Valuation: Sumitomo Chemical trades at a PE of 31.49 against an industry PE of 23.42, so earnings need to keep growing to support the price.
• Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.

How to Choose Between Improving Quarterly Operating Margin Stocks

Picking from improving quarterly operating margin stocks comes down to four checks, applied in order.

1. Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
2. Compare each PE with the industry PE (22.42 to 33.26) and ask whether the growth rate justifies any gap.
3. Track net profit growth, the operating margin and the return on equity in every quarterly result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among improving quarterly operating margin stocks, Kajaria Ceramics stands out for the strongest latest-quarter profit growth at 55.04%, Sumitomo Chemical for the highest return on equity at 16.02%, Sarda Energy for the biggest five-year price gain at 472.57% and ICRA for the fastest profit growth, 12.60% a year since FY22. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing improving quarterly operating margin stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.

Frequently Asked Questions on Improving Quarterly Operating Margin Stocks to Watch

Which are the best improving quarterly operating margin stocks to watch for multibagger potential?

Ans. Kajaria Ceramics, Sumitomo Chemical, Sarda Energy and ICRA are the 4 names this list highlights, with market caps of Rs 18,318 crore, Rs 18,246 crore, Rs 15,917 crore and Rs 4,361 crore respectively. Kajaria Ceramics is notable for the strongest latest-quarter profit growth at 55.04%. Sumitomo Chemical stands out for the highest return on equity at 16.02%. Sarda Energy offers the biggest five-year price gain at 472.57%. ICRA brings the fastest profit growth, 12.60% a year since FY22. These are watchlist names for improving quarterly operating margin stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Sumitomo Chemical a good stock for long-term investors?

Ans. Sumitomo Chemical has a return on equity of 16.02%, a PE of 31.49 against an industry PE of 23.42 and a market cap of Rs 18,246 crore. Net profit has compounded at 6.41% a year since FY22, and FY26 revenue rose 3.56% while June 2026 quarter net profit grew 20.44%. Long-term returns in improving quarterly operating margin stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can ICRA become a multibagger from here?

Ans. ICRA has a market cap of Rs 4,361 crore. A multibagger outcome in improving quarterly operating margin stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 12.60% a year since FY22, and FY26 revenue rose 17.22%. At a PE of 22.22 against an industry PE of 33.26, valuation should be checked against that growth before investing.

What is the market cap of Kajaria Ceramics, Sumitomo Chemical, Sarda Energy and ICRA?

Ans. As of 28 October 2026, Kajaria Ceramics has a market cap of Rs 18,318 crore, Sumitomo Chemical has a market cap of Rs 18,246 crore, Sarda Energy has a market cap of Rs 15,917 crore and ICRA has a market cap of Rs 4,361 crore. All of them qualify as smallcaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on improving quarterly operating margin stocks.

What are the risks of investing in improving quarterly operating margin stocks?

Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Sumitomo Chemical trades at a PE of 31.49 against an industry PE of 23.42, so earnings growth needs to hold up.

Why is Sumitomo Chemical trading at a PE of 31.49?

Ans. Sumitomo Chemical’s PE of 31.49 compares with an industry PE of 23.42. The market is paying a premium for a return on equity of 16.02% and latest-quarter profit growth of 20.44%, which also means the stock is more sensitive if growth slows. Investors in improving quarterly operating margin stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.

How much do institutions hold in Kajaria Ceramics, Sumitomo Chemical, Sarda Energy and ICRA?

Ans. As of the latest reported quarter, FII and DII together hold 37.83% of Kajaria Ceramics (11.58% and 26.25%), 12.58% of Sumitomo Chemical (2.89% and 9.69%), 7.00% of Sarda Energy (3.52% and 3.48%) and 28.12% of ICRA (8.00% and 20.12%). Rising institutional holding is a useful signal in improving quarterly operating margin stocks, though it should be read with earnings trends rather than on its own.