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After heavily offloading equities till the March 2025 quarter, Foreign Institutional Investors (FIIs) finally turned net buyers in the June 2025 quarter.
They invested a net of ₹38,668 crore in Indian equities during this quarter; however, this time, they sold their debt holdings massively. The overall net FII investments stood at ₹3,197 crore at the end of June 2025. (Source: NSDL)
Given the geopolitical factors at play during the June quarter, FIIs returning to the Indian equity market perhaps shows faith in the Indian economy and India’s Growth Story.
During the quarter, FIIs bought select stocks at a breathtaking pace, taking the overall FII stakes above 20% in these stocks. Let’s try to explore these stocks and see what is driving the FIIs.
#1 Embassy Developments Limited (EMBDL)
Embassy Developments Ltd. is a real estate giant offering both affordable and premium luxury residential properties across the Indian metro cities. It also engages in commercial and Special economic zone (SEZ) properties construction and development. The key regions where the Embassy’s projects are concentrated include Bangalore (23%), Mumbai Metropolitan Area (MMR) (9.4%), and Indore Region (2.1%).
During the June 2025 quarter, FIIs increased their stake in Embassy Developments by an astounding 12.20% points, taking the overall holding to 28.13% at the end of Q1FY26.
This significant rise in FII holdings is perhaps a result of the massive upcoming projects of Embassy Developments. The estimated Gross Development Value (GDV) of upcoming projects planned for the next three fiscal years is over ₹48,000 crore. Only for FY26, the anticipated GDV of residential and commercial project launches is above ₹22,000 crore.
The company is anticipating a 150% jump in its pre-sales target up to ₹5,000 crore in FY26, compared to FY25’s pre-sales level. During this April–June Quarter, this realty giant also closed a ₹1,125 Crore deal with a Global Semiconductor Firm, to sub-lease or divest around 25 acres of land in Whitefield, Bangalore.
Coming to the financials…
The sales of Embassy Developments grew from ₹380 crore in Q4FY24 to ₹889 crore in Q4FY25, registering a 134% Year-on-Year (YoY) growth.
The net profit turned positive in Q4FY25 and grew from a loss of ₹99 crore recorded in Q4FY24 to a positive ₹123 crore in Q4FY25. As the profit grew, the Earnings Per Share (EPS) also increased from a negative ₹1.83 per share in Q4FY24 to ₹1.06 per share in the March quarter.
The company’s Q1FY26 numbers are still not available.
The stock is trading at a Price/Earnings (PE) ratio of 93.5x, which is more than double the industry median of 42.4x. The 10-year median PE of the stock is 13.7x, though, which is cheaper than the industry number of 25.7x. However, the Price Earnings to Growth Ratio (PEG) of the stock is higher at 1.99 compared to the industry median of 0.48.
The top three FIIs holding stake in Embassy Developments Ltd. at the end of Q1FY26 are –
- Florence Investment Ltd. holds a 6.10% stake
- NCL SG Holdings Pte Ltd. holds an 8.11% stake
- Baillie Gifford Pacific Fund A Sub Fund of Baillie holding 2.95% stake
#2 Advanced Enzyme Technologies Limited (ADVENZYMES)
Advanced Enzyme Technologies Ltd. is the first Indian Enzymes Company, and currently it has the 2nd highest market share in India. With over 8 manufacturing units in India, it has a production portfolio of 400-plus proprietary products as of May 2025, over 700 customers across the globe, presence in more than 45 countries, over 17 patents, and a solid 25 plus years of experience.
FIIs increased their stake in this company by 11.55% points during Q1FY26, taking the overall holding to 23.45% at the end of the quarter.
And again, the most probable reason for FIIs increasing stakes in this Enzymes producer is the plethora of opportunities lying ahead of the company. The global human nutrition market is expected to grow up to ₹3,461 crore by 2030, and out of that, Advanced Enzyme is expected to have a half share that is over ₹1,700 crore.
The probiotics market, which can increase to over ₹600 crore by 2030, is majorly untapped, and Advanced Enzyme sees a huge opportunity in this segment as well. Apart from these, the company expects to increase its market share in the Bio-catalyst segment, the Baking and Animal nutrition segments as well.
Another factor that perhaps the FIIs are looking at is the high entry barrier in the business segments that Advanced Enzyme operates in. This enzyme developer is one of the lowest-cost manufacturers globally, increasing its global competitiveness.
Coming to the financials…
The sales grew marginally from ₹158 crore in Q4FY24 to ₹167 ₹Q4FY25, registering a 5.93% growth. However, the net profit dropped from ₹30 crore in Q4FY24 to ₹27 crore in Q4FY25. Correspondingly, the EPS also dropped from ₹2.53 per share to ₹2.37 per share during the period.
The company’s Q1FY26 numbers are still not available.
The stock is trading at a PE of 27.8x, significantly lower than the industry median PE of 55.5x. The 10-year median PE of the stock is at 28.6x, also significantly lower than the industry median of 62.4x. The PEG ratio is slightly lower than the industry median, as it stood at 8.42 while that of the industry is 9.66.
The top two FIIs holding stake in Advanced Enzyme at the end of Q1FY26 include –
- Orbimed Asia III Mauritius FVCI Limited holding 12.07% stake
- Nalanda India Equity fund Limited holding 8.46% stake
#3 Zinca Logistics Solutions Limited (BLACKCUCK)
Zinca Logistics Solutions Ltd., which operates under the name of BlackBuck, is the largest digital trucking platform in India. It offers digital trucking solutions for payments, vehicle financing, telematics, and other services. Apart from these, the firm also offers fastags, a GPS tracking facility on a subscription basis, and loyalty cards to truck operators. At the end of FY25, Zinca Logistics held 45.5% of the market share in the Indian trucking market.
The FIIs increased their stakes by 8.93% points during the June quarter, raising the overall holding to 20.52% at the end of the quarter.
During Q4FY25, the company received in-principle approval for Prepaid Payment Instrument (PPI) License, which can be one probable reason for FIIs raising their stakes in this logistics firm. This license will help the company have end-to-end ownership of the payments stack and deliver a better experience to the customer.
Another development that might have caught the eyes of FIIs is a new hardware, ICAT-certified, that Zinca Logistics developed during the March 2025 quarter. This can help in building an end-to-end supply chain and improve customer experience, along with offering a price advantage.
Talking about the financials, Zinca Logistics witnessed a rise in its sales from ₹93 crore in Q4FY24 to ₹120 crore in Q4FY25, which is a 29.08% growth. The company went from a net loss of ₹91 crore recorded in Q4FY24 to a significant net profit of ₹281 crore in Q4FY25.
The company’s Q1FY26 numbers are still not available.
The stock of Zinca Logistics is currently trading at a PE of 24.9x, which is marginally lower than the industry median of 29.9x. However, the 10-year median PE is at 23.4x, which is marginally higher than the industry figure of 17.3x. The PEG ratio stands at 0.54, which is also slightly higher than the industry median of 0.49.
The top three FIIs holding stakes in Zinca Logistics at the end of Q1FY26 include –
- Hornbill Orchid India Fund holding 2.51% stake
- Streadview Capital Mauritius Limited holds a 1.87% stake
- The Nomura Trust and Banking Co. Ltd. as the Trust holds 1.64% stakes.
Next Five Companies with the Highest Increase in FII Holding
- RACL Geartech Ltd.: FII holding increased by 8.73% point, taking the overall stake to 8.73%.
- Marathon Nextgen Realty Ltd.: FII holding increased by 7.62% point, taking the overall holding to 9.90%.
- Paradeep Phosphates Ltd.: It witnessed a 6.80% point increase in FII holding, which took the total FII stake to 13.97%.
- Veranda Learning Solutions Ltd.: FIIs increased stakes by a 6.44% point, taking the overall holding to 7.16%.
- Cartrade Tech Ltd.: It witnessed a 6.34%-point rise in FII’s stake, which took the overall FII holding to 67.30%.
Wrapping up
So, the first quarter of FY26 witnessed positive sentiments from FIIs, and significant amounts were invested across the Indian equities. These select stocks witnessed the highest FII money flowing into them owing to their solid growth plans for the upcoming fiscal/s years and strong fundamentals.
Disclaimer
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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