There is a buzz of activity in India’s large-cap sector. The second fiscal quarter of 2026 has seen a distinct uptick in institutional interest, especially from foreign investors. This shift includes numerous sectors such as banking, infrastructure, and industrial. Selected large-cap stocks are witnessing a noticeable change in their ownership structures, with foreign institutional investment (FII) stakes rising sharply. These transitions coincide with India’s steady macroeconomic environment, robust earnings momentum, and optimized global fund allocation due to an uncertain business climate in China and the United States’ consistent interest rates.
Additionally, these foreign investors are strategically investing in sizable, highly liquid firms marked by predictable earnings, operational advantages, and Chasing potential for substantial capital expenditure (capex). From capital goods to renewable energy and few public sector banks, the investment landscape is quite diverse. We highlight five large companies that have witnessed a significant rise in FII share in the second quarter of 2026.
Waaree Energies occupies a prime position on the list. This leading solar module manufacturer, with its fully integrated capabilities spanning the entirety of the green transition value chain, posted impressive figures for the fiscal year 2025. The company’s revenue and Ebitda saw a year-on-year growth of 27% and 73%, respectively, and its net profit more than doubled. Key to this performance was the expansion of solar module manufacturing and the commissioning of a new facility for cell production.
Moreover, Waaree initiated manufacturing activities at its first US-based facility and completed its first year of operations at IndoSolar post-acquisition, thus broadening its global footprint. The rise in FII shareholding from 0.7% in March 2025 to 2.68% in June 2025 amplifies the escalating institutional interest in the company. With its expansion plans spread across multiple verticals, the company’s promising future has attracted many foreign investors.
Hitachi Energy India ranks second among these companies. As a power technology firm, Hitachi offers advanced energy and grid solutions for utilities, renewables, railways, and data centers among others. The fiscal year 2025 was pivotal for the firm with an impressive growth in revenue, operating Ebitda, and order backlog. An interesting catalyst for this growth was the ?5,500 crore order for a high voltage direct current (HVDC) link from Khavda to Nagpur.
The surge in FII ownership to 7.2% in the second quarter of 2025, up from 4.96% in the first quarter, signals increasing investor confidence. Hitachi is focusing on margin growth, execution efficiency, and exploring new demand realms. The company’s expansion plans include launching a comprehensive service division, scaling up manufacturing activities, and venturing into new segments, all under the consolidated ‘One Hitachi’ banner.
Another distinguished entrant is AWL Agri Business, a renowned brand in the food and agriculture sector, previously known as Adani Wilmar. The company has a diverse portfolio encompassing edible oils, wheat flour, rice, pulses, and other essential commodities. Fiscal 2025 marked a record year for the firm, with revenue, Ebitda, and net profit all experiencing substantial growth. This upward trajectory has certainly captured the attention of foreign institutional investors as their holdings moved northwards from 1.2% in the first quarter of 2025 to 4.31% in the second.
AWL has ambitious plans for the future, including scaling up food revenue to ?10,000 crore by FY27 and improving margins through a focused product mix. The recent acquisition of GD Foods, aimed at diversifying into adjacent kitchen essentials, and the upcoming Gohana food complex are part of this strategic roadmap. The company’s extensive rural distribution network and its increasing focus on quick commerce and AI-backed demand planning are poised to strengthen its market position further.
Garden Reach Shipbuilders & Engineers (GRSE) is another noteworthy entity experiencing an uptick in FII interest. As a major defense public sector firm, GRSE specializes in building warships, patrol vessels, and ferries. The company registered an impressive 41% jump in revenue in FY25, reaching the ?5,000 crore revenue milestone for the first time. This, closely followed by a 46% rise in net profit and a near doubling of operational profit, signals a healthy financial outlook.
During this period, GRSE maintained a sizeable order book volume at ?22,680 crores, despite strong billing momentum, due to new contract wins. The rise in FII stake from 3.9% in the first quarter of 2025 to 5.3% in the second confirms the growing institutional interest. The company’s future prospects remain bright with bids for major projects such as Next-Gen Corvette and Fast Patrol Vessel on the anvil. Furthermore, GRSE aims to scale up its shipyard capacity and explore new technologies to stay at the forefront of the defense sector.
The final standout company is the Indian Renewable Energy Development Agency (IREDA), a government-owned financial institute focused on financing renewable energy and energy efficiency initiatives. With a 29% increase in its revenue from operation in FY25, IREDA has been on an upward trajectory, despite a slight dip in net profit due to higher provisions. An increase in loan sanctions and disbursements pushed the loan book volume up by 27%, indicating healthy business activities.
The leap in FII stake from 1.7% in December 2024 to 3.3% by June 2025 demonstrates heightened interest from foreign institutions. IREDA’s efforts to diversify its funding sources are worth noting. Recent initiatives include raising funds through QIP, issuing its first perpetual bonds, and securing external commercial borrowings from SBI Tokyo. The firm was also elevated to ‘Navratna CPSE’ status, and a subsidiary was incorporated in GIFT City.
Looking ahead, IREDA’s roadmap involves supporting emerging sectors such as green hydrogen, electric vehicle infrastructure, smart meters, and energy storage. Its emphasis on quality control and financial diversification will foster sustainable growth, keep it on track, and facilitate progress in the renewable energy sector. Overall, these success stories underscore the momentum in India’s large-cap space, spurred on by increasing foreign institutional interest, and paint a bright outlook for these companies.
The post India’s Large-Cap Stocks See Rising Foreign Institutional Interest appeared first on Real News Now.
About Author
