4 Small Cap Stocks Betting on New Capacity and Building New Businesses to Keep on Your Radar
Small-cap companies often reach an inflection point when they move beyond their traditional operations and start investing in larger capacities, new products and adjacent businesses. Such moves can change their revenue mix and expand their addressable markets over time. In this list, we look at five small caps undertaking meaningful business expansion, with investments aimed at increasing manufacturing capabilities, entering new segments and creating additional avenues for long-term business scale.
1. Viviana Power Tech
Viviana Power Tech has moved beyond the ₹500 crore revenue mark, reporting ₹531 crore consolidated turnover in FY26. More importantly, the company is transitioning from a pure-play EPC business towards a vertically integrated Power T&D platform.
It has approved nearly ₹100 crore capex for a greenfield multi-product transformer and equipment facility near Vadodara. The plant is planned to manufacture transformers up to 400 kV initially and 765 kV in a later phase, along with shunt reactors and other equipment. The company also had an order book above ₹950 crore.
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2. Universal Cables
Universal Cables is expanding its power cables segment by investing ₹550 crore in a massive capacity expansion programme. Of the four CCV lines being built for medium voltage (MV) and high voltage (HV) cables, two lines were completed by Q2 FY26 and operated at near-full capacity by Q3, while the remaining two lines will be operational in August and September 2026.
New LV cable facilities have been set up at Satna, while Universal Cables has also upgraded its existing wires and flexible cables facility in Goa. Moreover, Universal Cables intends to upgrade its EHV cable facility at Satna at an investment of ₹73 crore.
3. Epigral
Epigral is expanding beyond its existing chemical portfolio by entering Epoxy Resin and Multi-Purpose Plant (MPP) businesses. The company has approved an estimated ₹600 crore investment for the new facilities at Dahej, with the epoxy resin plant planned for 125,000 tonnes per annum capacity.
The projects are targeted for commissioning by H2 FY28 and are intended to broaden the company's product portfolio and address demand from areas including infrastructure, electronics and renewable energy.
4. Venus Pipes & Tubes
Venus Pipes & Tubes is scaling through both capacity expansion and forward integration. Its current installed capacity stands at 27,600 MTPA for welded pipes and 20,400 MTPA for seamless pipes, apart from fittings.
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The company has also added backward integration for seamless pipes and entered the fittings segment. Beyond its traditional markets, management has highlighted opportunities from data centres, semiconductor manufacturing and solar manufacturing, while it is also setting up a spooling and fabrication facility.