The market is in the midst of a consolidation. But, Ankit Mandholia, of Motilal Oswal Financial Services Ltd, believes that this will kick off the next leg of growth.

After moving sideways for a year and entering into a more mature, earnings-driven phase, the market throws up an opportunity for startups, particularly those aiming to be projected as sustainable businesses, ready for public scrutiny.

Public market valuations aren’t a reward but a reality check, underscoring that the next wave of startup IPOs will mark a shift from the growth-at-all-costs mindset towards profitability, strong governance, and capital efficiency – qualities that will isolate enduring companies from speculative ventures, according to him.

Mandholia, who leads equity, derivatives, and wealth management at MOFSL, expects earnings to rebound meaningfully, with earnings shooting off 10% in FY26 and 14% in FY27. “The next leg of this rally will be driven not by hope but by proof – companies actually delivering on earnings,” he said.

What intrigues an observer is a decline in valuation, despite a steady rise in prices. In a fast-expanding economy like India, this correction looks sustainable, and not stretched. This creates a comfortable entry point for quality names that can derive tangible shareholder value.

“India’s growth story is maturing, and so are its markets,” Mandholia said. “The winners will be those companies and founders that can deliver earnings, not just ambition.”

It is the same filter that differentiates even startups rushing for the capital market. After the D-Street frenzy of 2020–21, the pipeline looks more balanced today, featuring firms from manufacturing, fintech, and consumer sectors alongside tech startups. Pricing has become more rational, disclosure standards more stringent, and domestic liquidity, through SIPs, pension funds, and insurance flows, stronger than ever.

Mandholia believes this combination of disciplined capital formation and robust local participation marks a structural turning point for the market. Both public and startup ecosystems are converging on this trend. Durable, well-governed, and profitable businesses will define the next decade of wealth creation.

Private Hype To Public Accountability

The age of storytelling is over – it’s the era of accountability. A public float is no longer a founder’s exit play, but has turned into a credibility test of governance, profitability, and sustainability. Investors are looking beyond narratives to assess business quality, scalability, and cash flow resilience.

“The ability of a business to sustain itself without continuous capital infusion is essential,” Mandholia said. “Companies merely burning cash without a clear path to profitability pose higher risks.” Founders who........

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