The July-September 2025 quarter was a rollercoaster ride for the Indian equity markets. While Foreign Institutional Investors (FIIs) were offloading domestic equities heavily, the domestic institutional investors (DIIs), including Mutual funds, were continuing with their buying spree.

During the quarter, the mutual funds cumulatively invested around ₹1.64 lakh crore in the Indian equities, and this has minimized the gap in shareholding in NSE-listed companies to the least in the last two years. (Source: SEBI)

The continuous flow of funds via Systematic Investment Plans (SIPs) to the mutual fund houses has been one of the prime reasons for their continuous investments in the markets. Moreover, as FIIs are selling heavily, it has created a lot of opportunities in the market, which the DIIs are making the most of.

Even though the domestic equity valuations are still relatively high, this resilient DII behavior indicates their confidence in the long-term growth prospects of the economy.

In this article, we will try to explore the top three stocks in which DIIs invested the most during the July-September quarter. We will also see the stocks where DIIs increased their stake at least by 5%, taking the total holding, in some cases, even above 25% in certain companies.

#1 Clean Science & Technology Limited (CLEAN)

Clean Science & Technology Ltd., one of the leading global chemical manufacturers, is the company where DIIs invested the most during Q2FY26. They increased their stake by a whopping 13.05% points, taking the overall holding to 18.97% at the end of the quarter.

Clean Science is engaged in manufacturing critical specialty chemicals, which include MEHQ, BHA, and AP, which are categorized as performance chemicals. The company also offers chemicals used as pharmaceutical intermediates, such as Guaiacol and DCC, and also deals in FMCG chemicals like Anisole and 4-MAP.

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Unparalleled Manufacturing Capacities  

One of the key factors that makes Clean Science stand out is its enormous manufacturing capacities for the flagship products it has. MEHQ, which is used as a polymerization inhibitor in acrylic acids and other similar products, and also a precursor for the agro-chemical industry, ranks number 1 globally as per production. Similarly, BHA, AP, HALs, Anisole, and 4-MAP are at the top of the list globally.

They have 4 manufacturing units with state-of-the-art pilot facilities and completely equipped laboratories.

Innovation and research

In making these products stand out, innovation plays a crucial role, which is another USP of the company apart from large-scale production. The company keeps coming up with new products, variants that increase their market dominance. The company has 16 accreditations and certificates, 4 research and development facilities (R&D), and over 90 scientists working daily to make the products better.

Clean Science has a strong hold on more than 15 chemistries, which include hydroxylation, chlorination, oxidation, alkylation, Grignard Reaction, Hydrogenation, catalysis, and others. They also have a solid, diversified technology to back their research and manufacturing facilities.  

As per the management, they are also expecting to get multiple major approvals globally for their products by the end of FY26, which can potentially boost their business further.

Sluggish financials

Coming to the financials of the company, the sales dropped in Q2FY26 by 7.34% Year-on-Year (YoY) to ₹211 crore from ₹228 crore in the corresponding quarter last year. This also pulled the net profit down from ₹67 crore to ₹65 crore, declining 4% YoY.

Valuation

The stock is trading at a price/earnings (PE) of 33.6x, which is slightly higher than the industry median of 32x, indicating that, the company is valued in line with the industry.

Top DIIs who bought/increased their stake in the company during Q2FY26

1-year Share Price Chart of Clean Science & Technology Ltd.

#2 Sammaan Capital Limited (SAMMAANCAP)

Sammaan Capital Ltd., formerly known as Indiabulls Housing Finance Ltd., is the second stock where DIIs poured the most money during the September quarter. DIIs raised their stake by 10.87% points, taking the total holding to 16.83% at the end of the July-September quarter.

Sammaan Capital mainly offers a wide variety of home loans, where the loan value ranges between ₹15 lakh to ₹30 lakh. It also deals in Loan against property (LAP) and offers corporate mortgage loans, lease rental discounting, and residential construction finance as well.

Change in control and business outlook

International Holding Company (IHC) announced in October 2025 that it is acquiring a 41.2% stake of Sammaan Capital on a fully diluted basis. This would be via preferential allotment. IHC is investing ₹8,850 crore in Sammaan Capital and will be regarded as the promoter of the company post the acquisition.

As this acquisition is underway, the whole company setup is changing, and the management is positive about the outcome of the acquisition. It expects the cost of funds to reduce by at least 200 bps, which can boost its business profits.

They are now focusing on asset-light business and completely on the retail segment for the near term. In the mid-term, they are looking to widen their product range apart from mortgages, though it will remain the core business.

 Post the acquisition, Sammaan Capital is expecting to scale up its disbursal run-rate from ₹15,000 crore annually to ₹35,000 crore by FY27 and beyond.

They are also planning to set up over 500 branches of the company within the next 2-3 years.

Thus, the growing interest from the DIIs can be attributed to the future prospects of the company post the acquisition.

Financials

The revenue of the company went down from ₹2,422 crore in Q2FY25 to ₹2,251 crore in Q2FY26, declining by 7.1% YoY.

During the quarter, the company generated a net profit of ₹308 crore, which was similar to the previous quarters as well. However, we cannot compare it with the net loss generated in Q2FY25, as that was mainly due to financial instruments’ impairment/ write-offs.

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Valuation

The stock is trading at a PE of 11.8x, which is significantly lower than the industry median of 17.7x, indicating a cheap valuation.

Top DIIs who bought/increased their stake in the company during Q2FY26

1-year Share Price Chart of Sammaan Capital Ltd.

#3 Aptus Value Housing Finance India Limited (APTUS)

Aptus Value Housing Finance India Ltd. is another housing finance company on the list where DIIs poured their money significantly during the Q2FY26. DIIs increased their stake by 9.83% points, which took the total holding to 25.87%.

The company mainly offers housing loans, business loans against self-occupied properties as collateral, Quasi Home loans, and insurance support for properties and credit shield insurance as well.

Aptus primarily focuses on the retail market needs and serves the lower- and middle-income groups. The company doesn’t offer any loans to any builders or real estate agents. Among the retail customers, the first-time home buyers are the prime targets of the company.

Business growth

During Q2FY26, the business of Aptus grew robustly, which can be one of the factors driving DIIs to this stock. The AUM grew by 22% YoY to ₹11,767 crore. The loans disbursed during the quarter grew by 3% YoY and 24% quarter-on-quarter (QoQ) to ₹963 crore.

The distribution network of the company also grew. Now the network has 321 branches with 20 new branches added during the quarter. The number of customers increased to 1.72 lakh, an 18% increase YoY.

Coming to the asset quality of the business, the Gross Non-Performing Assets (GNPA), however, increased by 30 basis points (bps) YoY to 1.55% while the Net Non-performing assets (NNPA) surged by 23 bps YoY to 1.17%.

Expansion plans

Aptus is not only expanding its market share in the existing markets but also exploring new markets, such as in different parts of Maharashtra and in Odisha.

The management is aiming to reach an AUM of ₹25,000 crore in the medium term, while maintaining the current momentum.

Financials

The revenue of the company grew by 29.11% YoY during the quarter, that is, from ₹421 crore in Q2FY25 to ₹544 crore in Q2FY26. The net profit also grew by 24% YoY from ₹182 crore to ₹227 crore during the period.

Valuation

The current PE of the stock is 17x, which is slightly lower than the industry median of 18.2x, indicating almost fair valuation of the stock.

Top DIIs who bought/increased their stake in the company during Q2FY26

1-year Share Price Chart of Aptus Value Housing

Other companies where DIIs increased their stake above 5% during the quarter

Wrapping up

The massive investment by the DIIs in the Indian equities during the July-September period reaffirms their faith in the growth story of India, time and again. They have even invested in businesses that haven’t performed well during the quarter but have solid future growth prospects. Now, it will be interesting to see how these bets of the DIIs turn out in the near term and whether they buy more of these stocks or not.

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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