According to a report by JM Financial, promoter ownership increased in four large-cap companies, one mid-cap company and 14 small-cap companies during the quarter ended June 2026. The brokerage considered companies with a market capitalisation of more than ₹4,500 crore and included those that recorded a change of more than 0.5% in promoter shareholding during the quarter. Among mid-cap companies, GMR Airports was the only stock to see an increase in promoter holding, with ownership rising by 0.83 percentage points to 67.16%. RBL Bank, Manappuram Finance, Sammaan Capital, Paisalo Digital, Gabriel India, iDream Film Infrastructure Company, Garware Technical Fibres, SG Mart, Hindustan Foods, Neogen Chemicals, Stylam Industries, Thomas Cook, IOL Chemicals & Pharmaceuticals, and SG Finserve were among the prominent small-cap companies that recorded increases of more than 0.5% in promoter holding during Q1FY27.
In the small-cap segment, RBL Bank recorded the sharpest increase in promoter holding, with ownership rising 60% during the quarter, primarily on account of a preferential issue. Manappuram Finance saw a 9.9% increase in promoter holding, also driven by a preferential issue. Other prominent small-cap companies that recorded an increase of more than 0.5% in promoter holding in Q1FY27 included Sammaan Capital (28.3%), Gabriel India (8.5%), iDream Film Infrastructure Company (13.7%), Garware Technical Fibres (0.9%), SG Mart (21.6%), Hindustan Foods (0.5%), Neogen Chemicals (1.8%), Stylam Industries (2.8%), Paisalo Digital (5%), Thomas Cook (0.9%), IOL Chemicals & Pharmaceuticals (4.8%) and SG Finserve (3.9%), as reported by JM Financial.
On the other hand, promoter ownership declined in seven large-cap, 12 mid-cap and 34 small-cap companies during the quarter. Among small-cap stocks, notable declines of more than 0.5% in promoter holding were seen in PhysicsWallah, where promoter ownership fell 1%; ACME Solar Holdings, which saw an 11.8% decline following a QIP in June 2026; Bandhan Bank, where promoter holding declined 1.4%; and DOMS Industries, which recorded a 7% decline.
According to JM Financial, promoter ownership of Indian equities has steadily moderated over the past 12 years, falling to 50.3% in June 2026 from 53.4% in June 2014. The gradual decline has coincided with sustained activity through offers for sale (OFS), qualified institutional placements (QIPs) and bulk and block deals. The ownership structure of the Indian equity market has also undergone a significant shift, with domestic institutional investor (DII) ownership nearly doubling over the past 12 years, rising to 18.9% in June 2026 from 10% in June 2014, while foreign institutional investor (FII) ownership declined to 14.2% from 19% during the same period. As per JM Financial, the crossover highlights a structural shift in market ownership towards domestic pools of capital, aided by rising household financialisation, sustained SIP inflows and deeper institutional participation.
The brokerage attributed the moderation in FII ownership to elevated Indian valuations and global market uncertainty. Over the past decade, DII allocations have steadily increased towards banking, financial services and insurance (BFSI), capital goods and pharmaceuticals, while exposure to oil and gas and IT services has moderated. IT services has seen a notable decline in institutional allocations, with FII exposure to the sector falling sharply to 4.9% in June 2026 from 13.9% in June 2014, and DII exposure moderating to 7% in June 2026 from a peak of 11.9% in FY21. Both DIIs and FIIs have steadily increased their exposure to capital goods and pharmaceuticals, reflecting stronger institutional preference for domestic capex and healthcare-led growth themes.
