Ace investor Madhusudan Kela, celebrated for his sharp eye in identifying emerging businesses, faced a steep markdown in his listed-equity portfolio during the September 2025 quarter. Latest exchange disclosures show his public holdings dropping 39% in value, from about INR 4,073 crore in June 2025 to INR 2,494 crore by September 2025.
However, a mild recovery in mid-cap counters lifted his portfolio nearly 12% to INR 2,793 crore by November 2025, signalling early stabilisation after one of his sharpest drawdowns in recent years.
A Tumultuous Year for Kela
Kela’s portfolio trajectory through FY25-26 has mirrored the volatility of India’s mid-cap universe. After starting modestly at INR 1,195 crore in December 2023, his portfolio nearly tripled by June 2024 amid a roaring mid-cap rally. By June 2025, it hit a record INR 4,073 crore, up 45% in that quarter alone. Then came the jolt: a near-vertical correction in September as risk-averse investors fled smaller companies, foreign portfolio outflows intensified, and geopolitical concerns rattled sentiment.
| Quarter | Portfolio Value (INR Cr) | QoQ Change (%) |
|---|---|---|
| Mar 2024 | 1,435.82 | +20.2 |
| Jun 2024 | 2,494.54 | +73.7 |
| Sep 2024 | 2,312.68 | (7.3) |
| Dec 2024 | 2,307.86 | (0.2) |
| Mar 2025 | 2,810.97 | +21.8 |
| Jun 2025 | 4,072.91 | +44.9 |
| Sep 2025 | 2,494.59 | (38.8) |
| Nov 2025 | 2,793.29 | +12 |
Madhusudan Kela Portfolio Update: Stocks Behind the 39% Fall
The September crash was primarily stock-specific, with several mid- and small-cap names erasing a year’s worth of gains:
- Indostar Capital Finance – Indostar fell nearly 31% QoQ amid credit-quality concerns.
- Nazara Technologies – down 22%, hurt by tepid gaming revenues.
- MK Ventures Capital – slid 18%, tracking weakness in financial holdings.
- Windsor Machines – declined 10% amid capital-goods slowdown.
- Niyogin Fintech and IRIS Business Services also traded weak.
The decline came while the Sensex and Nifty slipped 3-4% in the same period, but the BSE MidCap and SmallCap indices fell about 4-4.5%, magnifying losses for concentrated investors like Kela.
Madhusudan Kela Latest Stocks: Core Holdings Stay Intact
Despite the turmoil, the Kela family’s core positions remained unchanged, reflecting their trademark long-term stance. Choice International, the financial-services group, continues to dominate with a holding worth INR 1,538 crore (8.9 %), accounting for over half of total portfolio value. Other key stakes include:
| Company | Stake (%) | Value (INR Cr) | Note |
|---|---|---|---|
| MK Ventures Capital | 74.4 | 384 | Promoter stake; flagship venture arm |
| Windsor Machines | 7.7 | 188 | Industrial manufacturing |
| Prataap Snacks | 4.6 | 119 | New entry in Sep 2025 |
| Nazara Technologies | 1.2 | 119 | Digital gaming |
| Sangam Industries | 4.9 | 109 | Textiles and infra |
| Indostar Capital Finance | 2.5 | 83 | NBFC exposure |
Madhusudan Kela New Bet: Prataap Snacks
Even as markets turned choppy, Kela initiated a fresh position in Prataap Snacks, buying roughly 11 lakh shares worth INR 115 crore. The consumer-goods counter marked his re-entry into the packaged-foods segment—signalling a gradual pivot towards defensive consumption themes after years of financial-sector dominance.
FY26: Mixed Performance So Far
In Madhusudan Kela portfolio update, seven out of fifteen public holdings have delivered double-digit gains in FY26 so far, led by:
- Choice International (+67 %)
- Repro India (+39 %)
- Niyogin Fintech (+37 %)
- Bombay Dyeing (+26 %)
- Rashi Peripherals (+16 %)
- Nazara Technologies (+13 %)
- Unicommerce eSolutions (+10 %)
Even after September’s drawdown, these outperformers helped cushion overall losses and supported the subsequent November bounce.
Long-Term View Intact
Kela, who founded MK Ventures Capital in 2018 and manages Invexa Capital, has long advocated “patient investing through cycles.” Associates say the latest markdown won’t alter his core philosophy of backing scalable, growth-oriented businesses. “The recent correction is painful but healthy,” said a market watcher familiar with his strategy. “He has seen many cycles—this is a portfolio reset, not a reversal.”
The Road Ahead
Analysts believe the September slump offers perspective on concentration risks in mid-caps, even for seasoned investors. Yet, Kela’s disciplined exposure and limited churn underscore his conviction-led approach. With markets stabilising and earnings visibility improving across consumption, financials, and niche manufacturing, the veteran investor’s portfolio appears positioned for a steadier second half of FY26.
From a 39% crash in September to a 12% rebound by November, Madhusudan Kela’s portfolio journey epitomises the turbulence—and resilience—of India’s mid-cap market cycle.
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