Foreign and domestic institutions look at the Indian market through different lenses.
A foreign portfolio investor compares an Indian steelmaker against one in Korea or Brazil, and factors in the rupee, US bond yields, and global commodity cycles before committing.
A domestic mutual fund manager compares that same steelmaker against other Indian companies, funded by a steady monthly stream of systematic investment plan money that has to be deployed regardless of what the dollar is doing.
Both have different information and different benchmarks plus different pressures. This is why the two groups frequently move in opposite directions.
So, when both raise their stake in the same company in the same quarter, it’s worth a look.
In the June 2026 quarter, that happened across six metal stocks.
The timing is not accidental. The Nifty Metal index has been one of the market’s strongest performers, helped by tight global supply, safeguard duties protecting domestic steelmakers, record infrastructure spending, and the intensity of India’s energy transition.
What makes this list interesting is how different the six companies are. One is a Maharatna PSU selling 20 million tonnes of steel a year. One makes wire. One digs coal.
Let’s look at each of these in detail.
#1 Steel Authority of India (SAIL)
First on the list is SAIL.
SAIL saw the largest foreign inflow of the six, with FII holding rising from 5.01% to 7.09%, an increase of over two percentage points in a single quarter.
Meanwhile, its DII holding marginally rose to 8.74%.
SAIL is a Maharatna PSU and one of India’s largest steel producers, operating integrated plants that supply the infrastructure, construction, and manufacturing sectors.
As a state-owned enterprise, it’s also a direct beneficiary of government capital expenditure on railways, roads, and housing.
FY26 was a year of genuine operational improvement for SAIL. Its standalone net profit surged 50.54% to Rs 32.3 billion (bn) from Rs 21.5 bn, on total income up 8.06% to Rs 1,119.6 bn. The March quarter alone saw profit rise 42% to Rs 16.8 bn.
The volume numbers explain a lot of it. Steel sales rose to 19.93 million tonnes (MT) from 17.89 MT, while production edged up to 19.43 MT.
Selling more from a broadly similar production base means inventory came down, which is exactly what management pointed to.
Alongside that, SAIL reduced long-term borrowings, strengthening a balance sheet that has historically been its weak point. The board recommended a final dividend of Rs 2.35 per share.
Do note some concerns though. A portion of SAIL’s revenue is recognised on a provisional pricing basis, which can be revised later, and the company continues to carry exceptional costs.
As a PSU, government policy on pricing and stake sales is a permanent overhang, and steel remains a cyclical business where today’s improved margins are not guaranteed to hold.
Financial Snapshot
| Particulars (Rs m) | FY22 | FY23 | FY24 | FY25 | FY26 |
| Revenue | 1,034,768 | 1,044,477 | 1,053,783 | 1,024,791 | 1,108,111 |
| Operating Profit | 222,001 | 89,898 | 122,163 | 115,212 | 133,844 |
| Margins | 21.5 | 8.6 | 11.6 | 11.2 | 12.1 |
| Net Profit | 122,435 | 21,765 | 30,667 | 23,718 | 42,720 |
| Net Margin | 11.8 | 2.1 | 2.9 | 2.3 | 4 |
| ROE | 22.6 | 4 | 5.4 | 4 | 6 |
| ROCE | 27.3 | 7.5 | 9.1 | 8 | 8 |
| Debt to Equity | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 |
Data Source: Equitymaster, BSE
#2 Coal India
Second is Coal India, where foreign holding rose nearly two percentage points to 10.37% and domestic funds added as well.
Coal India is the world’s largest coal producer and a Maharatna PSU under the Ministry of Coal. It supplies the overwhelming majority of India’s coal to a power sector that cannot operate without it, which makes it a near-monopoly in the truest sense.
What attracts institutional money here is the financial quality rather than the growth. Coal India has historically generated return on equity in the region of 24% and return on capital employed near 30%, distributes less than half its earnings as dividend while offering a yield above 6%, and sits on a large net cash position. It trades at a single-digit to low-teens price-to-earnings multiple.
That combination, a protected market position, exceptional returns on capital, a fortress balance sheet and a high dividend, is rare in Indian markets and explains why both institutional groups have been adding.
That said, Coal India’s profits have been declining, and its five-year growth record is weak. Debtor days have stretched, tying up cash.
And there is a longer-term structural question about a coal monopoly in a decarbonising world, even if that transition in India will take decades rather than years.
Financial Snapshot
| Particulars (Rs m) | FY22 | FY23 | FY24 | FY25 | FY26 |
| Revenue | 576,389 | 783,668 | 807,672 | 791,904 | 1,684,000 |
| Operating Profit | 285,950 | 508,000 | 559,406 | 565,331 | 407,890 |
| Margins | 49.6 | 64.8 | 69.3 | 71.4 | 26.1 |
| Net Profit | 173,784 | 317,230 | 373,691 | 353,021 | 311,866 |
| Net Margin | 30.2 | 40.5 | 46.3 | 44.6 | 19.00 |
| ROE | 40.3 | 52.1 | 45.2 | 35.6 | 29 |
| ROCE | 52 | 67.7 | 56.2 | 44.9 | 35 |
| Debt to Equity | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
Data Source: Equitymaster, BSE
#3 Bansal Wire Industries
Third on the list is Bansal Wire.
Mutual fund holding jumped from 13.21% to 15.16%, the largest DII increase of the six, while FIIs more than doubled their stake from 0.88% to 1.99%.
Bansal Wire is India’s largest stainless steel wire manufacturer by volume and the second-largest steel wire manufacturer overall. Its products go into automotive components, construction, infrastructure and general engineering.
The growth record is what stands out for it. Its gross sales have risen 172% over five years, from Rs 14.8 bn in FY21 to Rs 40.1 bn in FY26, while profit after tax grew 221% over the same period.
FY26 delivered consolidated revenue of Rs 41.7 bn, up 18.67%, with EBITDA of Rs 3.2 bn and profit after tax of Rs 1.6 bn.
The standout operational number was sales volume, which grew 33% year-on-year (YoY) to 458,055 tonnes. The March quarter saw revenue up 20.9% and net profit up 21%.
The company is also moving up the value chain, expanding into induction hardened tempered wire, launching a low relaxation prestressed concrete wire business, and developing a steel cord project.
The FY26 net profit growth of 10% lagged revenue growth of 18.67%, so margins compressed. The company also dealt with a fire incident at its Dadri unit, with the insurance claim still being finalised. The management has flagged gas shortages and weak demand in some end-user industries.
Financial Snapshot
| Particulars (Rs m) | FY22 | FY23 | FY24 | FY25 | FY26 |
| Revenue | 21,984 | 24,130 | 24,660 | 35,072 | 41,600 |
| Operating Profit | 1,131 | 1,147 | 1,493 | 2,782 | 2,950 |
| Margins | 5.1 | 4.8 | 6.1 | 7.9 | 7.1 |
| Net Profit | 573 | 599 | 752 | 1,464 | 1,420 |
| Net Margin | 2.6 | 2.5 | 3.1 | 4.2 | 3.20 |
| ROE | 25.7 | 21.2 | 17.8 | 11.5 | 12 |
| ROCE | 30.3 | 22 | 19.1 | 17.7 | 14 |
| Debt to Equity | 0.6 | 0.7 | 0.7 | 0.1 | 0.1 |
Data Source: Equitymaster, BSE
#4 JSW Steel
Fourth on the list is JSW Steel.
Foreign investors already owned nearly a quarter of the company and still added more, taking their stake from 25.37% to 25.91%. At the same time, DIIs also added more than half a percentage stake.
JSW Steel is India’s largest steelmaker by capacity and the flagship of the US$ 23 bn JSW Group.
It has expanded aggressively through acquisitions, most recently absorbing the Bhushan Power and Steel business through a joint venture with Japan’s JFE Steel.
For the company, FY26 was a transformative year. Its net profit jumped to Rs 255.1 bn, while operating profit rose to Rs 294.6 bn from Rs 227.3 bn and margins improved from 13% to 16%.
The June 2026 quarter delivered a 20% operating margin, the best in several years. The balance sheet also strengthened materially.
Investors should note an important caveat on those earnings. FY26 profit includes roughly Rs 184.9 bn of other income, an exceptional item.
The company’s 3-year average return on equity is around 9%. It trades above three times book value.
Financial Snapshot
| Particulars (Rs m) | FY22 | FY23 | FY24 | FY25 | FY26 |
| Revenue | 1,463,710 | 1,659,600 | 1,750,060 | 1,688,240 | 1,854,700 |
| Operating Profit | 405,380 | 195,770 | 292,400 | 235,980 | 310,690 |
| Margins | 27.7 | 11.8 | 16.7 | 14 | 16.8 |
| Net Profit | 209,380 | 41,390 | 89,730 | 34,910 | 255,080 |
| Net Margin | 14.3 | 2.5 | 5.1 | 2.1 | 13.80 |
| ROE | 31.2 | 6.3 | 11.6 | 4.4 | 26 |
| ROCE | 27.8 | 9.9 | 14.9 | 8.4 | 22 |
| Debt to Equity | 0.9 | 0.9 | 0.9 | 1 | 0.8 |
Data Source: Equitymaster, BSE
#5 Godawari Power & Ispat
Fifth is Godawari Power & Ispat, where domestic funds added 0.57 percentage points and foreign holding edged up to 6%.
Godawari is a Raipur-based integrated steel manufacturer and part of the Hira Group.
What differentiates it from most peers is captive iron ore mines, which insulate it from raw material price swings that hurt competitors buying ore on the open market.
FY26 showed that advantage working. Its standalone revenue was Rs 47.1 bn, up 1.13%, with profit rising 19.46% to Rs 9.2 bn.
The March quarter was particularly strong, with net profit up 26% YoY to Rs 2.8 bn, revenue up 10% to Rs 16.1 bn, and EBITDA up 38% to Rs 4.4 bn. The stock hit an all-time high on those results.
Margins held up impressively despite softer steel realisations, with EBITDA margins at 23% and PAT margins at 15%, and the company maintains a net cash position.
The forward-looking piece is the diversification into energy storage. Through subsidiary Godawari New Energy, the company is building a Battery Energy Storage System plant at Sambhajinagar in Maharashtra, with a first phase targeting 20 GWh capacity.
Total committed investment in the subsidiary has reached Rs 7 bn, and a supply agreement has been signed for balance-of-system components.
The FY26 results included exceptional items, specifically a gain on the sale of its investment in Ardent Steel and a write-off of preoperative costs.
The battery storage venture is also a substantial capital commitment in a business that is quite different from steel.
Financial Snapshot
| Particulars (Rs m) | FY22 | FY23 | FY24 | FY25 | FY26 |
| Revenue | 53,992 | 57,530 | 54,554 | 53,757 | 53,810 |
| Operating Profit | 18,935 | 12,678 | 14,260 | 12,897 | 12,530 |
| Margins | 35.1 | 22 | 26.1 | 24 | 23.1 |
| Net Profit | 14,819 | 7,934 | 9,356 | 8,130 | 8,020 |
| Net Margin | 27.4 | 13.8 | 17.1 | 15.1 | 15.2 |
| ROE | 44.7 | 20.3 | 20.8 | 16.7 | 15 |
| ROCE | 58.8 | 29 | 29.2 | 23.5 | 20 |
| Debt to Equity | 0 | 0 | 0 | 0 | 0 |
Data Source: Equitymaster, BSE
#6 Maharashtra Seamless
Last on this list is Maharashtra Seamless.
The company is the flagship seamless pipe manufacturer of the DP Jindal Group, producing carbon and alloy steel seamless pipes, ERW steel, and casing pipes largely for the oil and gas sector. It also owns a windmill.
In June 2026, domestic funds raised their stake from 2.56% to 3.09%, and foreign holding edged up marginally to 9.72%.
The financials, however, went backwards. FY26 standalone net profit fell to Rs 7.2 bn from Rs 7.9 bn, with revenue declining to Rs 46.7 bn.
The March quarter was worse. Consolidated net profit fell 57.52% YoY to Rs 1 bn, and dropped 57.66% sequentially, with much of the swing attributable to volatile other income. Operating margins compressed to 18.57% from 20.11%.
So, what might institutions be seeing? Three things.
First, the valuation. The stock trades at a price-to-earnings ratio of about 10 times against an industry average near 26.
Second, it’s debt-free with a reasonable return on equity. The board also recommended a substantial dividend of Rs 10 per share.
Third, restructuring. The board approved a composite scheme of arrangement to demerge the seamless pipe manufacturing businesses into 2 entities, MSL Seamless Tubes and United Seamless. Demergers of this kind can unlock value by allowing each business to be valued on its own merits.
That said, while its five-year sales growth of 17% looks impressive but momentum has clearly stalled, with FY26 sales down 2.5%.
Financial Snapshot
| Particulars (Rs m) | FY22 | FY23 | FY24 | FY25 | FY26 |
| Revenue | 42,108 | 57,164 | 54,041 | 52,687 | 46,740 |
| Operating Profit | 7,232 | 11,291 | 13,636 | 11,175 | 6,680 |
| Margins | 17.2 | 19.8 | 25.2 | 21.2 | 14.1 |
| Net Profit | 6,916 | 7,676 | 9,517 | 7,774 | 7,010 |
| Net Margin | 16.4 | 13.4 | 17.6 | 14.8 | 15.10 |
| ROE | 17.4 | 16.1 | 16.6 | 12.3 | 11 |
| ROCE | 12.4 | 19.5 | 21.5 | 15.8 | 14 |
| Debt to Equity | 0.1 | 0 | 0 | 0 | 0 |
Data Source: Equitymaster, BSE
Conclusion
Two groups of professional investors with different mandates, benchmarks, and sources of information arrived at the same conclusion on these six companies in the same quarter. That is a signal worth noting.
The sector backdrop supports it. Metals have been among the market’s strongest performers, helped by tight global supply, safeguard duties on steel imports, record infrastructure allocations, and the intensity of India’s energy transition.
But some things deserve caution as well. The quality of these six varies enormously despite the shared institutional interest.
Moreover, metals are cyclical. These companies do not set the price of what they sell. That price is determined globally, by Chinese production, supply disruptions, and the pace of world growth.
Institutional buying near the strong end of a commodity cycle is exactly when the risk of paying too much is highest, because high current earnings make cyclical stocks look deceptively cheap.
Institutional buying data tells you where professional money has been positioned. It does not tell you whether the price paid was sensible.
Evaluate each company’s business quality, financial performance, management execution, corporate governance, and valuation as key factors before drawing any investment conclusions.
Happy investing.
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