SYNOPSIS: FIIs increased their stakes in select small-cap stocks during Q4 FY26, reflecting confidence, while companies showed mixed financial performance, highlighting the need to assess fundamentals beyond ownership trends.
Strong promoter ownership combined with meaningful participation from Foreign Institutional Investors (FIIs) is often seen as a positive signal, reflecting confidence in a company’s governance standards, business model, and long-term growth potential. Such trends tend to attract investor attention, especially when institutional investors increase their exposure.
However, ownership patterns alone should not be the sole basis for making investment decisions. Sustainable long-term returns are ultimately driven by consistent earnings growth, healthy cash flows, efficient capital allocation, and reasonable valuations.
Therefore, it becomes important for investors to look beyond shareholding changes and carefully assess a company’s fundamentals, financial performance, and historical trends to better understand the risks and opportunities involved. Following are a few stocks that have witnessed an increase in FII holdings as of March 2026:
Bajaj Consumer Care Limited
Bajaj Consumer Care Limited, formerly known as Bajaj Corp Limited, is engaged in the business of cosmetics, toiletries and other personal care products. According to the March 2026 shareholding pattern, FII holdings stood at 16.59 percent, increasing by 6.89 percent from 9.7 percent in December 2025, over the same period.
On the financial front, Bajaj Consumer reported a revenue from operations of Rs. 306 crores in Q3 FY26, a significant rise of around 31 percent YoY from Rs. 234 crores in Q3 FY25, and a net profit growth of around 84 percent YoY to Rs. 46 crores from Rs. 25 crores over the same period. The company will announce its Q4 FY26 and FY26 results on 17th April 2026.
Natco Pharma Limited
NATCO Pharma Limited is engaged in the business of pharmaceuticals and agricultural chemicals, which comprises R&D, manufacturing and selling of bulk drugs, finished dosage formulations.
According to the March 2026 shareholding pattern, FII holdings stood at 17.37 percent, increasing by 2.21 percent from 15.16 percent in December 2025, over the same period.
On the financial front, Natco Pharma reported a revenue from operations of Rs. 647 crores in Q3 FY26, a rise of around 36 percent YoY from Rs. 475 crores in Q3 FY25, while net profit grew by over 14 percent YoY to Rs. 151 crores from Rs. 132 crores over the same period.
KSH International Limited
KSH International Limited is the third-largest manufacturer and the largest exporter of magnet winding wires in India. According to the March 2026 shareholding pattern, FII holdings stood at 5.05 percent, increasing by 1.33 percent from 3.72 percent in December 2025, over the same period.
On the financial front, KSH reported a revenue from operations of Rs. 818 crores in Q3 FY26, a significant rise of around 59 percent YoY from Rs. 516 crores in Q3 FY25, while net profit declined marginally by around 12 percent YoY to Rs. 23 crores from Rs. 26 crores over the same period.
Aeroflex Industries Limited
Aeroflex Industries Limited is primarily engaged in the business of manufacturing stainless-steel flexible hose with braiding and without braiding and assemblies, widely used across diverse industries including oil & gas, aerospace, petrochemicals, renewable energy, electric mobility and other critical engineering sectors.
According to the March 2026 shareholding pattern, FII holdings stood at 1.49 percent, increasing by 0.5 percent from 0.99 percent in December 2025, over the same period.
Aeroflex Industries reported a significant growth in its revenue from operations, showing an increase of around 21 percent YoY from Rs. 100 crores in Q3 FY25 to Rs. 121 crores in Q3 FY26. Likewise, its net profit increased by nearly 7 percent YoY from Rs. 15 crores to Rs. 16 crores.
During Q3 FY26, the company expanded into the high-growth data centre and AI infrastructure segment, including skid assemblies and advanced flow control components for high-performance liquid cooling applications.
Nitin Spinners Limited
Nitin Spinners Limited is engaged in the business of manufacturing cotton and blended yarn, knitted fabrics and woven fabrics. According to the March 2026 shareholding pattern, FII holdings stood at 1.1 percent, increasing by 0.17 percent from 0.93 percent in December 2025, over the same period.
On the financial front, Nitin Spinners reported a revenue from operations of Rs. 801 crores in Q3 FY26, a marginal decline of around 5 percent YoY from Rs. 839 crores in Q3 FY25, while net profit fell by around 2 percent YoY to Rs. 44 crores from Rs. 45 crores over the same period.
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