In April 2025, in spite of all the geopolitical concerns, Domestic Institutional Investors (DIIs), which includes Mutual Funds (MFs), were net buyers of stocks with a net investment of ₹18,063 crore. As the quarter progressed, DIIs started buying equities at a significantly faster pace. In May 2025, net equity purchases by DIIs leaped to ₹55,411 crore.
In June 2025, the monthly net equity purchases dipped marginally to ₹43,496 crore, which was still a solid number.
The overall quarterly net equity purchase stood at ₹1,16,970 crore at the end of the June quarter, marginally up from ₹1,16,082 crore recorded for the March quarter. (Source: SEBI)
Today, in this article, we will be discussing three such stocks where DIIs invested heavily during the June quarter. The stocks we are focusing on drew significant interest from DIIs. So much so that the buying interest took the overall DIIs’ shareholding in these companies exceeds 15%.
Let’s begin…
#1 Vishal Mega Mart Limited (VMM)
Vishal Mega Mart Ltd. is a hypermarket chain selling an array of products ranging from daily groceries to apparel and electronics as well. It is one of the top three offline-first diversified retailers in India. Vishal Mega Mart has 696 stores (as of 31 March 2025) in 458 different cities in India, especially targeting the middle-income group and lower-middle income group of people, which constitute around 66% of the Indian household population.
The DII holding in Vishal Mega Market increased by 15.1% points during the June quarter, taking the total DII holding to 27.3% at the end of the Q1FY26. The DIIs bought this stake from the promoters of the company.
The continuous expansion of the retail giant might be one of the reasons why DIIs are pouring their money into this company. During FY25, it added around 90 more stores in different cities.
Another factor which is perhaps pulling DIIs to invest more in this retail giant is the increasing popularity of its own brands. Vishal Mega Mart has a portfolio of 26 own brands, and sales from these brands are continuously growing. During FY25, sales from these brands went up to ₹7,839 crore from FY24’s ₹6,399 crore. These own brands contributed to 73.1% of total sales generated by the firm during FY25, higher than 71.8% recorded during FY24.
As Vishal Mega Mart primarily targets the Tier II cities, the growth in per-capita income and spending can also be one of the reasons for DIIs investing their money in.
Coming to the financials….
The sales of Vishal Mega Mart increased from ₹2,069 crore in Q4FY24 to ₹2,548 crore in Q4FY25, logging a 23.2% growth. The net profit during the period went up from ₹61 crore in Q4FY24 to ₹115 crore in Q4FY25, registering a whopping 88% growth. This also led to an increase in earnings per share (EPS) from ₹0.14 per share in Q4FY24 to ₹0.25 per share during Q4FY25.
The latest results for Q1FY26 are yet to be published.
The stock is trading at a Price/Earnings (PE) ratio of 102.2x, which is quite high compared to the industry median of 63.4x. However, the Price/Earnings to Growth (PEG) ratio is marginally higher at 2.17 compared to the industry median figure of 2.09.
The top three DIIs holding stake in Vishal Mega Mart at the end of Q1FY26 include –
- HDFC Business Cycle Fund holding 5.92% stake
- SBI Equity Hybrid Fund holding 4.49% stake
- Kotak Pioneer Fund holding 3.79% stake
#2 Marathon Nextgen Realty Limited (MARATHON)
Marathon Nextgen Realty Ltd. is engaged in the construction, development, and sale of both residential and commercial properties. From townships to properties in the hospitality sector, Special Economic Zone development projects, and infrastructure development projects, Marathon Nextgen engages in all. From luxury properties to affordable residential properties, this company offers it all.
The DII holding in this company went up by 14.23% points during the Q1FY26, taking the overall DII holding in the company to 16.66% at the end of the June quarter. The DIIs bought this stake as part of a QIP issue by the company.
This increased interest from DIIs is perhaps a result of the plethora of ongoing and upcoming properties of Marathon Nextgen.
Some of the significant ongoing projects that will be launched soon include –
- Monte South in Mumbai, which will be a 4-tower residential complex of 64 storeys each, along with 1 proposed commercial tower. The total land proposed for this project is 12.2 acres.
- Marathon Neopark and Neosquare are two projects launched in a cluster that will offer affordable studio apartments, 1 and 2 BHK apartments in the Bhandup West Area of Mumbai.
- Apart from residential projects, Marathon has ongoing projects in the commercial space as well, which include Millennium, a metro-adjacent commercial property with offices. It is getting built on LBS Road, Mulund.
- Another commercial property in the pipeline is Futurex, which is getting built in the Lower Parel Area. It will offer office spaces starting from 800 square feet to 2 lakh square feet.
The upcoming projects include –
- Monte South Phase 3 Residential Properties at Byculla
- Monte South Phase 3 Commercial Properties at Byculla
- Nexzone Phase 3 Residential and Commercial
- NeoPark Phases
- NeoValley Phases
Another factor that might have caught DII’s attention is the huge land bank that this company has. It has over 205 acres in Panvel area, 130 acres in Bhandup, and 83 acres in Dombivli.
Coming to the financials…
The sales of Marathon Nextgen dipped marginally during Q4FY25 by ₹19 crore from Q4FY24’s ₹155 crore, down by 4.4%. However, the net profit grew from ₹40 crore in Q4FY24 to ₹54 crore in Q4FY25, logging a 34% Year-on-year (YoY) growth. The EPS also went up from ₹7.78 per share in Q4FY24 to ₹10.41 per share in Q4FY25.
The latest results are yet to be published.
The valuation of Marathon Nextgen looks relatively attractive as it is trading at a PE of 24x, lower than the industry median PE of 41.4x. At the same time, the 10-year median PE of the firm is at 13.9x, lower than the industry figure of 25.7x. Even the PEG ratio is at 0.35, lower than that of the industry, which is 0.48.
The top three DIIs having stakes in Marathon Nextgen at the end of Q1FY26 include –
- Quant Small Cap Fund holding 9.49% stake
- Buoyant Opportunities Strategy holding 2% stake
- Samco Special Opportunities Fund holding 1.64% stake
#3 RBL Bank Limited (RBLBANK)
RBL Bank Ltd. is a private sector bank in India, incorporated in 1943. It offers corporate banking, commercial banking, brand and business banking services, retail asset and treasury facility, and financial market operations.
The DIIs increased their stakes in RBL Bank by 13.58% points during Q1FY26, taking the total DII holding to 34.37% at the end of the quarter.
The solid performance of the private sector bank during the quarter is perhaps the reason for this increase in investments by DIIs. During the quarter, advances grew by 9% YoY to ₹94,431 crore. While the secured retail advances grew by 23% YoY, the unsecured retail advances dipped 10% YoY.
The commercial banking segment also witnessed a robust growth of 32% YoY, and the wholesale advanced grew by 15% YoY.
The overall deposits increased by 11% YoY to ₹1,12,734 crore. Granular deposits also grew by 16% YoY to ₹57934 crore.
The asset quality improved as the Net Non-Performing Assets (NNPA) reduced by 28 basis points (bps) to 0.45% during the June quarter.
Net Interest Income (NII), however, dropped by 13% YoY to ₹1,481 crore.
Coming to the financials…
The revenue of the bank marginally reduced by 1.58% YoY from ₹3,496 crore in Q1FY25 to ₹3,441 crore in Q1FY26. The net profit dipped significantly from ₹372 crore in Q1FY25 to ₹200 crore in Q1FY26, falling by 46% YoY. This took a toll on the EPS too, which dropped from ₹6.13 per share recorded in Q1FY25 to ₹3.29 per share in this June quarter.
The stock is trading at a PE of 29.7x, quite higher than the industry median of 12.5x. Similarly, its 10-year median PE is also higher at 20.6x, compared to the industry figure of 16.5x. The PEG ratio, however, is at 0.24, lower than the industry median of 0.38.
The top DIIs having the highest stakes in RBL Bank at the end of Q1FY26 include –
- Quant Mutual Fund holds 6.64% stake
- Nippon Life India Trustee Ltd. holds 4.26% stake
- SBI Banking and Financial Services Fund holds 3.27% stake
Next Five Companies with Highest DII Holdings
- SAI Life Science Ltd.: Here, DIIs increased holding by 8.38% points during Q1FY26, taking total holding to 21.64%.
- Ujjivan Small Finance Bank Ltd.: Here, DIIs increased holding by 8.35% points during Q1FY26, taking total holding to 16.85%.
- PNB Housing Finance Ltd.: Here, DIIs increased holding by 8.11% points during Q1FY26, taking total holding to 37.99%.
- Biocon Ltd.: Here, DIIs increased holding by 7.1% points during Q1FY26, taking total holding to 22.83%.
- Sagility India Ltd.: Here, DIIs increased holding by 6.6% points during Q1FY26, taking total holding to 14.07%.
Wrapping up
Domestic Institutional Investors’ increasing interest in these select companies shows that DIIs are perhaps looking for strong fundamental growth, with a strong orderbook, and upcoming projects. It will be interesting to see whether DIIs continue to invest in these stocks, or hold them for the long-term, or not.
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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