The April–June 2025 quarter (Q1 FY26) witnessed selective accumulation by both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) amid a backdrop of market volatility. While FIIs as a whole remained net sellers, the trend of increased holdings in specific fundamentally strong companies highlighted their confidence in India’s growth story. DIIs, led by mutual funds and insurance companies, also added to positions in select names. This dual institutional buying is seen as a positive indicator of long-term upside, supported by robust corporate earnings, favorable sectoral dynamics, and macroeconomic resilience.
Based on shareholding data from stock exchanges and analyst reports, here are the notable stocks where both FIIs and DIIs increased their stakes during Q1 FY26.
RBL Bank
FIIs raised their stake by 1.0% to 14.4%, while DIIs sharply increased holdings by 3.1% to 20.8%. The optimism stems from strong Q1 loan growth of 15% year-on-year and improving asset quality. Mutual funds led the accumulation, betting on the bank’s recovery trajectory. RBL Bank currently commands a market capitalization of about Rs 45,000 crore, with a year-to-date (YTD) return of 12% as of September 2025.
Vishal Mega Mart
Retail major Vishal Mega Mart attracted significant institutional interest, with FIIs upping their stake by 5.2% to 8.5% and DIIs by 9.1% to 14.3%. The company’s aggressive expansion plan, targeting 200 stores by FY26, along with 25% revenue growth in Q1, has made it a key beneficiary of the consumer spending revival. The company has a market cap of Rs 35,000 crore and has delivered a robust 28% YTD return.
BSE Ltd.
The stock exchange operator saw FIIs increase their holding by 2.1% to 16.8% and DIIs by 0.5% to 10.2%. The buying momentum is linked to record trading volumes and consistent growth in digital infrastructure services. This marks the third consecutive quarter of FII accumulation. With a market cap of Rs 85,000 crore, BSE shares have risen 35% YTD, reflecting investor conviction in India’s financial market boom.
Azad Engineering
In the industrials and aerospace space, Azad Engineering witnessed a 4.3% rise in FII stake to 14.2% and a 1.6% increase in DII stake to 8.2%. The company’s strong defense order book worth Rs 1,500 crore and new tie-ups for FY26 launches are driving confidence, particularly in exports. Its market cap stands at Rs 12,000 crore, and the stock has surged 45% YTD, making it one of the top performers in the sector.
OneSource Specialty Pharma
FIIs increased their stake by 1.1% to 18.5%, while DIIs boosted theirs by 5.4% to 18.0%. The pharma company announced a massive Rs 50 billion capex over five years to strengthen its contract development and manufacturing (CDMO) capabilities. A strong Q1 EBITDA performance and upcoming molecule launches for FY26 further support the bullish outlook. With a market cap of Rs 8,500 crore, the stock has delivered a 22% YTD return.
Aditya Vision
Retail and consumer durables player Aditya Vision recorded a 2.8% increase in FII holdings to 16.6% and a 1.2% rise in DII holdings to 9.9%. Institutions are optimistic about its strategy of adding 25 new stores annually and its turnover target of Rs 100 billion by FY26, with a focus on value-driven consumers. The company has a market cap of Rs 6,000 crore and has returned 18% YTD.
The Anup Engineering
Engineering and capital goods firm The Anup Engineering attracted FII stake growth of 1.5% to 7.2% and DII stake growth of 2.3% to 12.5%. The company is set to commission its Phase 2A facility in October 2025 and is diversifying into futuristic product categories. With a market cap of Rs 4,200 crore, the stock has delivered an impressive 32% YTD return.
Conclusion
The Q1 FY26 shareholding patterns highlight that despite broad market uncertainty and overall FII outflows, selective bets by both FIIs and DIIs underline confidence in India’s growth trajectory. Companies showing strong earnings, sector tailwinds, and long-term expansion plans are emerging as institutional favorites. Analysts suggest that such dual institutional buying not only boosts near-term sentiment but also signals strong long-term potential in these counters.
