The Indian small-cap segment is demonstrating notable resilience as of February 2026, navigating a landscape of selective optimism. While the BSE Smallcap index recently experienced a 0.63% dip, the broader market sentiment is buoyed by a robust Q3 earnings season. Recent trade agreements with the US and EU have further stabilized global trade sentiment, turning Foreign Institutional Investors into net buyers in early February. Craftsman Automation has emerged as a standout performer in the automotive components space. For the quarter ended December 2025, the company reported a massive 728% year-on-year surge in consolidated net profit, reaching 107.11 crore. Revenue climbed 30.5% to hit a record 2,057 crore, driven by sustained demand in high-end manufacturing. Operating margins also saw a healthy expansion to 15.18%, signaling improved efficiency despite capital-intensive expansion phases. The logistics sector is witnessing a significant turnaround, led by Delhivery. The company reported a 59% jump in net profit to 40 crore for the December quarter, a sharp recovery from the 50 crore loss recorded in the previous period. Revenue from operations grew 18% to 2,805 crore, fueled by a record 500,000 metric tonne milestone in its Part Truck Load business. Operational leverage from the festive season helped expand operating margins by 481 basis points to 7.44%. In the specialty chemicals arena, Navin Fluorine International continues its aggressive growth trajectory. The company posted a 122% increase in net profit to 185.40 crore for Q3 FY26, significantly beating market estimates. Revenue rose 47% to 892 crore, with its high-performance products and specialty chemicals divisions growing 35% and 60% respectively. The commissioning of new hydrofluorocarbon capacity is expected to drive further volume gains through 2027. Broader economic indicators suggest a strengthening manufacturing core. India's manufacturing GVA growth reached 9.13% in the second quarter, and the Union Budget 2026-27 has introduced a 10,000 crore SME Growth Fund to support high-growth small-cap firms. While market breadth remains sensitive, with 387 stocks advancing against 813 declining in recent sessions, the fundamental strength of these sector leaders points to a decoupling of earnings performance from general market volatility. Investors are increasingly focusing on stock-specific fundamentals as valuation gaps narrow. Nearly a third of the small-cap universe, representing approximately 16 lakh crore in market capitalization, is currently viewed as trading at fair value. This environment favors companies with high capacity utilization and clear order visibility, particularly in the chemicals and auto-component sectors which are benefiting from global supply chain realignments.