In Q1FY26, DIIs significantly raised stakes in select small-cap stocks, reflecting growing confidence. Notable increases were seen in Aether Industries, RBL Bank, and PG Electroplast, signaling strong institutional interest in specialty chemicals, banking, and consumer electronics manufacturing segments.
Domestic Institutional Investors (DIIs) have been steadily increasing their stake in Indian equities, reflecting growing confidence in the country’s economic and corporate fundamentals. Their consistent inflows act as a stabilizing force amid global volatility. The rise in DII participation highlights strong domestic sentiment, especially in sectors showing long-term potential such as infrastructure, manufacturing, and capital goods.
Here are small-cap stocks in which DII increased its stake up to 13.58% in Q1FY26;
1. Aether Industries Ltd.
Aether Industries Limited is focused on producing advanced intermediates and specialty chemicals involving differentiated chemistry and technology. The Company is also a provider of Contract Research and Manufacturing Services (CRAMS) and contract / exclusive manufacturing services, built upon technology, research and development (R&D), and Pilot Plant facilities.
With a market capitalization of Rs 10,865.11 crore, the shares closed at Rs 819.45 per share, decreased around 0.10 percent as compared to the previous closing price. The domestic institutional investors of the company increased their stake by 1.98 percent,from 11.43 percent in Q4FY25 to 13.41 percent in June 2025. Additionally, 6.55 percent is owned by retail investors, 5.03 percent is held by foreign institutional investors, and 74.99 percent is owned by promoters.
2. RBL Bank Ltd
RBL Bank Limited specializes in services under five business verticals: Corporate Banking (C&IB), Commercial Banking (CB), Branch and Business Banking (BBB), Retail Assets, and Treasury and Financial Markets Operations.
With a market capitalization of Rs 16,030.65 crore, the shares closed at Rs 263.15 per share, decreased around 2.07 percent as compared to the previous closing price. The domestic institutional investors of the company increased their stake by 13.58 percent, from 20.79 percent in Q4FY25 to 34.37 percent in June 2025. Additionally, 47.67 percent is owned by retail investors, and 17.56 percent is held by foreign institutional investors.
3. PG Electroplast Ltd
PG Electroplast Limited is an electronic manufacturing services (EMS) provider for original equipment manufacturers (OEMs) of consumer electronic products in India. The Company is engaged in the manufacturing of consumer durables, which comprises of molding division, an electronics division, complete products, a paint shop, a thermoset division, and a tooling division.
With a market capitalization of Rs 22,825.51 crore, the shares closed at Rs 805.50 per share, decreased around 2.58 percent as compared to the previous closing price. The domestic institutional investors of the company increased their stake by 1.72 percent, from 16.37 percent in Q4FY25 to 18.09 percent in June 2025. Additionally, 25.11 percent is owned by retail investors, 13.02 percent is held by foreign institutional investors, and 43.72 percent is owned by promoters.
Written by Abhishek Singh
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