Foreign Institutional Investors trimmed holdings across several Indian companies in the June 2026 quarter, even as domestic institutional investors continued to provide steady support. Domestic institutional investors have net bought roughly ₹4.16 lakh crore of Indian equities in calendar year 2026 through late June, against approximately ₹2.7 lakh crore of net FII selling over the same period. Mutual fund SIP inflows stood at ₹31,115 crore in April 2026, down marginally from March's all-time high of ₹32,087 crore, but still 18% higher than April 2025's ₹26,400 crore. This steady domestic flow has helped broad indices stay comparatively resilient despite stock-specific FII exits.
The quarter witnessed significant FII stake reductions across multiple companies, with Piramal Pharma recording the largest decline at -17.7 percentage points, falling from 30.2% to 12.5%. RBL Bank saw the sharpest single-quarter dilution at -11.4 percentage points, dropping from 20.2% to 8.8% following Emirates NBD's ₹26,015-crore promoter infusion. Indraprastha Gas declined 6.9 percentage points from 17.1% to 10.2%, while Rail Vikas Nigam fell 2.5 percentage points from 4.9% to 2.4%. At least three of the top five declines trace to identifiable corporate events - promoter capital infusions, reported PE block-deal sales, and anchor lock-in expiries - rather than open-market selling alone. As reported by The Financial Express, these concentrated investments reflect institutional confidence in companies with distinct business drivers.
Several companies delivered impressive Q1FY27 results that attracted FII attention. Aeroflex Industries reported its highest-ever quarterly revenue of ₹1.46 billion, up 72% YoY, with EBITDA rising 116% YoY to ₹335 million and margins expanding by 468 basis points to 23.04%. Sky Gold & Diamonds delivered strong quarterly revenue of ₹19.1 billion, up 81% YoY, with EBITDA rising 123% YoY to ₹1.44 billion and net profit growing 137% YoY to ₹907 million. CORONA Remedies showed robust performance with revenue up 21.9% YoY to ₹4.2 billion and EBITDA growing 33.5% YoY to ₹931 million. The ten stocks span banking, pharma, auto, gas utilities, railways, technology and metals, suggesting stock-specific triggers rather than one common macro theme driving the quarter's FII activity.
Companies are positioning for significant expansion in the coming years. Sky Gold & Diamonds has revised FY27 revenue guidance upward to around ₹81 billion with EBITDA margin guidance of 7-7.5%. JSW Infrastructure targets consolidated FY27 operating revenue of ₹68.5 billion and EBITDA of ₹30 billion, scaling to ₹108 billion and ₹50 billion by FY28. SML Mahindra is targeting market share growth from around 6% to 10-12% by FY31 and 20%+ by FY36, with FY31 revenue guided at ₹125 billion. These expansion plans, combined with strong Q1FY27 performance, have contributed to the increased FII interest across these companies. The September-quarter shareholding disclosures, due around mid-October 2026, will be closely watched to determine whether these declines were one-off events or the start of a broader trend.
