Thursday's close
The Nifty Smallcap 250 closed at 14,753.25 on Thursday, 19 March 2026, at a price-to-earnings ratio of 24.29. Its price-to-book ratio was 3.15 and its dividend yield 0.78%.
The index ended 2025 at 16,684.75 and is down 11.6% this year. The Nifty 50 is down 12.0% over the same sessions, so small caps have not fallen further than large caps. This month alone, from 15,881.05 at the end of February, the index is down 7.1%.
The longer drawdown is deeper. The record close is 18,623.15, set on 23 September 2024, and the index is 20.8% below it.
All three figures are NSE's published end-of-day numbers, charted on the Smallcap 250 valuation page.
Below the middle on earnings and book
The comparisons start on 31 March 2021, when NSE moved its index P/Es to consolidated earnings. That gives 1,229 sessions to 19 March 2026.
| P/E | P/B | Dividend yield | |
|---|---|---|---|
| 19 Mar 2026 | 24.29 | 3.15 | 0.78% |
| Lowest since Mar 2021 | 16.90 | 2.52 | 0.59% |
| Median since Mar 2021 | 28.38 | 3.58 | 0.88% |
| Highest since Mar 2021 | 48.15 | 4.66 | 1.38% |
- P/E: 347 of 1,229 sessions closed lower, about the 28th percentile. The low was 16.90 on 28 March 2023, the high 48.15 on 29 April 2021.
- P/B: 234 sessions closed lower, about the 19th percentile. The low was 2.52 on 31 March 2023, the high 4.66 on 5 September 2024.
- Dividend yield: this one disagrees. At 0.78% it is below its 0.88% median, and 894 sessions offered more.
Two measures say cheaper than usual. The dividend yield says the companies pay out less, relative to price, than they typically have.
The price fell, the profits rose
From 31 December 2025 to 19 March 2026:
- The index fell 11.6%.
- The P/E fell 17.3%, from 29.38 to 24.29.
- Dividing one by the other, the earnings behind the index rose about 7%.
Much of that came in one session. On 4 February the index rose 0.8% while the P/E fell from 27.50 to 26.71. Overnight, the earnings figure NSE divides by rose about 3.7%. We can see the step in NSE's numbers, not what caused it.
Over twelve months the effect is larger. On 19 March 2025 the index closed at 14,807.00 at a P/E of 27.90. A year later the price is 0.4% lower and the P/E is 12.9% lower, which implies earnings up about 14%. The index has gone nowhere in a year while the profits behind it grew.
Against the Nifty 50 and the Midcap 150
On 19 March the Nifty 50's P/E was 20.13, so the Smallcap 250's was 1.21 times it. Since March 2021 that multiple has ranged from 0.83 (23 December 2022) to 1.59 (1 January 2025), with a median of 1.24. It was lower than that on 562 of 1,229 sessions, about 46%. Against large caps, small caps are priced about as usual.
The Midcap 150 closed the same day at a P/E of 29.96. Two days ago we found mid caps near the middle of their own range but dearer than usual against large caps. Small caps, on these numbers, are the cheaper of the two.
The 2021 switch barely touched the P/E
On 31 March 2021, NSE's move to consolidated earnings cut the Nifty 50's P/E from 40.43 to 33.20 and the Midcap 150's from 73.56 to 40.58. The Smallcap 250's went the other way, slightly: 42.54 to 43.30.
Its dividend yield did move, from 1.32% to 0.67% the same day, so older yields are a different yardstick. Our P/E history for this index starts in April 2016, and the standalone readings before the switch were erratic: 54.62 at the end of March 2020, with the index at 3,201.60.
What this does not tell you
A P/E below its median is not a buy signal. Earnings that rose can fall back, and the ratio would rise without the price moving.
Small-cap earnings are noisy. Many of the 250 companies report small or swinging profits, and a few large changes move the total, as the 4 February step shows.
The basket changes twice a year. NSE reviews the members in March and September, and a new set of companies brings a new earnings figure.
It is not your small-cap fund. Funds choose their own stocks and weights, and many hold mid caps and cash too.
Where to go from here
The Smallcap 250 valuation page has the full daily series. For how funds in the category fared this month, see small-cap funds in the March 2026 fall and the small cap fund rankings.
The guide on whether the market is expensive covers what valuation can and cannot tell you.
Frequently asked questions
What is the Nifty Smallcap 250 P/E ratio in March 2026?
The Nifty Smallcap 250 closed at a P/E of 24.29 on 19 March 2026, with the index at 14,753.25. Its price-to-book ratio was 3.15 and its dividend yield 0.78%.
Are small caps cheap after the 2026 fall?
On earnings and book value they are below the middle of their own record. Since 31 March 2021 the Smallcap 250's median P/E is 28.38, and only 347 of 1,229 sessions closed below 24.29. Against the Nifty 50 they are about normal: the P/E is 1.21 times the large-cap index's, close to the median of 1.24 times.
Why did the Smallcap 250 P/E fall more than the index in 2026?
Because the earnings behind it rose. From 31 December 2025 to 19 March 2026 the index fell 11.6% and its P/E fell 17.3%, from 29.38 to 24.29, which implies earnings about 7% higher.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
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