Markets Will Reward Growth Beyond Pure Size, Says Helios Capital's Dinshaw Irani

India’s long-term economic growth story remains intact despite near-term volatility, according to Dinshaw Irani, MD and CEO of Helios Capital Asset Management. In an interview discussing the current market environment, Irani noted that the country can sustain nominal GDP growth of around 10 percent or more over the long term, supported by a young workforce, rising digital adoption, and strong economic foundations.

Highlighting the drivers of this trajectory, Irani pointed to the JAM trinity—Jan Dhan, Aadhaar, and mobile connectivity—which has transformed economic participation by providing near-universal access to banking, a robust digital identity framework, and inexpensive data.

Addressing investor concerns regarding employment and inequality, Irani emphasized that job creation must primarily come from private-sector capex. While government spending on infrastructure improves productivity, private-sector investments lead to the emergence of entire ecosystems around factories and manufacturing hubs. He noted that many companies are currently discussing capacity expansion.

Discussing the recent correction in mid- and small-cap stocks, Irani maintained that their growth story remains intact. He stated that markets ultimately reward growth, with many mid- and small-cap companies operating in sectors such as platform businesses, auto components, precision engineering, and consumer discretionary, where growth rates remain stronger than traditional large-cap sectors.

According to Irani, foreign investors have broadened their investment universe rather than retreating. While their focus was previously concentrated on a handful of large-cap companies, they are now discovering a wider set of opportunities across mid- and small-caps, increasingly investing in businesses that offer superior growth rather than simply buying size and liquidity.

On portfolio management, Irani detailed Helios Capital's 'elimination investing' philosophy. Instead of actively selecting stocks, the firm rejects companies based on eight factors covering industry structure, management quality, governance, accounting quality, and valuation, leaving behind an investible universe that offers growth, quality, and value simultaneously.

Regarding foreign portfolio flows, Irani suggested that India consider a temporary moratorium on capital gains taxes for new foreign inflows to improve the market's attractiveness. On technology trends, he commented that the artificial intelligence boom is not a bubble in the traditional sense, as investments are funded largely by corporates and private capital, though AI will act as a major disruptor for traditional large-cap IT service players.

Finally, Irani advised retail investors who wish to invest on their own to treat it as a full-time job rather than a hobby or a pastime.

"Dinshaw Irani's insights highlight the resilience of the Indian market and the shift in investor focus toward fundamental growth rather than sheer size. For entrepreneurs and businesses, this underscores the importance of strong governance, transparent accounting, and scalable models. As private-sector capex picks up and investors look beyond traditional large-caps, companies that demonstrate genuine operational efficiency and long-term value creation will naturally attract capital in a competitive ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes