Unfortunately, there aren't any 'premium' sub-4-metre cars on sale, despite your healthy ₹40 lakh budget. You could consider the VW Taigun 1.5 DSG or Skoda Kushaq 1.5 DSG, which are as compact as your S-Cross (though not under 4 metres in length). Both vehicles offer strong performance and are fun to drive.
However, if you want something strictly smaller, the Skoda Kylaq is your best bet.
