Nifty Microcap 250 P/E at 27.3, below the Smallcap 250's

The reading

The Nifty Microcap 250 closed at 26,254.45 on Tuesday, 6 October 2026, at a price-to-earnings ratio of 27.28. Its price-to-book ratio was 3.13 and its dividend yield 0.45%.

These are NSE's published end-of-day ratios, and the daily history is on the Nifty Microcap 250 valuation page. The index holds 250 companies from below the small-cap band, roughly beyond the 500th listed company by size.

A record price, a below-median P/E

Our daily series for this index starts on 11 May 2021, with two missing days in its first weeks (25 May and 18 June 2021). That gives 1,335 sessions to 6 October, a little shorter than the usual window from 31 March 2021.

The three ratios point different ways. The P/E is in its bottom quarter, about the 25th percentile. The P/B is in the upper third. The yield is near the bottom of its record: only 4 sessions yielded less, with the low of 0.43% on 8 September 2026.

The P/E has ranged from 65.46 on 13 July 2021, when the earnings under the index were thin, to 20.32 on 22 May 2023. The P/B has ranged from 1.59 on 14 May 2021 to 3.89 on 5 September 2024.

Price and earnings rose together

Dividing the index by its P/E gives a rough earnings figure per index unit:

The index is up 16.4% in 2026 and the earnings figure 17.6%, so the P/E has hardly moved. From the 30 March low the index has gained 39.0%. Its record close, 26,794.10, came on 23 September, and it is 2.0% below that now. Over the same nine months the Nifty 50 fell 12.8%.

The longer view tells the same story. Since 1 October 2024 the index is up only 1.5%, while the earnings figure is up 38.1%. That is how the P/E came down from 37.11 to 27.28 without a fall in price.

Cheaper than the small caps

The Smallcap 250 rose this year while its earnings figure fell, so its P/E went up. The Microcap 250 rose with its earnings. The result is a microcap P/E 0.79 times the Smallcap 250's.

That is a reversal. At the end of June 2022 the microcap P/E was 2.11 times the small-cap one, and from May 2021 to the end of 2023 it was higher on all but one session. Since 1 April 2025 it has been lower on 365 of 374 sessions, and on every one of the last 220, since 14 November 2025. The widest gap was 0.72 times, on 27 June 2025.

The yield

The 0.45% yield is half its 0.91% of 30 March, and the price rise explains only part of that. Had the dividends behind the index stayed the same, a 39.0% rise would have taken the yield to about 0.65%. Instead the dividend figure per index unit is about 31% lower. The published numbers do not say whether that is lower payouts or a change in the index's members.

What this does not tell you

The record is short. Five and a half years covers one cycle for this index, and its P/E has run from above 65 to near 20 inside it. A median from such a window is a weak anchor.

Micro-cap earnings are lumpy. With 250 small companies, a handful of large results, losses or index changes can move the earnings figure sharply, and the published ratios cannot separate them.

An index price is not a fund's price. Micro-cap stocks can trade thinly, and a fund cannot always buy or sell them at the quoted close. The guide to micro-cap funds covers what that means for an investor.

Where to go from here

For the next size band up, see the Nifty Smallcap 250 P/E post for October, and for how the size bands have compared over time, mid and small caps vs the Nifty 50, every year since 2017. Funds in the space are in the small cap fund rankings, and the guide to reading an index P/E explains the measure.