February 2026 is showing early signs of a recovery after a tough 2025 for smallcap investors. However, the gains are uneven. Some smallcap stocks fell steeply this week, with losses reaching up to 23%. Spicejet, a low-cost airline, was the biggest loser, dropping 23.29% as per ACE Equity data. Other notable smallcap stocks also faced sharp declines. Ecos (India) Mobility & Hospitality fell 17.19%. Safari Industries, known for luggage manufacturing, dropped 16.82%. Jyoti Resins & Adhesives decreased by 16.62% throughout the week. CarTrade Tech, a digital vehicle trading platform, slipped 14.33% according to IANS. Ceinsys Tech, a geospatial tech company, lost 13.65%. Pearl Global Industries, a major textile exporter, declined 13.47%. HLE Glascoat, which makes specialized process equipment for pharma and chemical sectors, fell 13.40%. Foods & Inns, known for tropical fruit products exports, dropped 13.18%. Lastly, Reliance Infrastructure, part of the Reliance Group, decreased 13.16%. Experts suggest the smallcap segment might see a turnaround soon, but some stocks are still under heavy pressure. The losses remind investors to stay cautious amid the mixed market signals. (Disclaimer: Expert opinions cited here are their own and do not represent The Economic Times views.)