Here are some midcap stocks bought by FIIs in Q2. Should investors follow?
Midcap stocks typically deliver higher earnings growth than large caps, especially during expansionary cycles in the economy. Here is a list of such stocks bought by FIIs in Q2.
Foreign Institutional Investors (FIIs) are drawn to mid-cap stocks because they offer a compelling combination of market dynamism, capital efficiency, and growth potential that larger, more crowded companies may struggle to match.
Midcap stocks typically deliver higher earnings growth than large caps, especially during expansionary cycles in the economy. According to reports, in recent quarters, this segment recorded earnings growth significantly higher than large caps, attracting FIIs seeking superior returns.
FIIs tend to diversify away from an overabundance of large-cap stocks and industries that might experience valuation ceilings or cyclical slowdowns by increasing their exposure to midcaps.
In any case, here is a list of midcap stocks where FIIs have hiked their stake in the quarter ended September 2025.
Before we get into the list, please note this is not an exhaustive list. There are plenty of other stocks that can be added, but it may not be possible to include them all.
For determining midcaps, we have considered a market cap between ₹5,000 crore and ₹20,000 crore. When we use the term "bought", it largely means where FII stake has increased.
A Select List of Midcap Stocks Bought by FIIs In Q2
| Name of Company | FII Holdings in June 2025 | FII Holdings in Sept 2025 | Change in FII Holding (%) |
| Ashapura Minechem | 16.42% | 18.02% | 1.61 |
| Skipper | 5.42% | 6.55% | 1.13 |
| Indo Count Industries | 9.89% | 9.98% | 0.09 |
| Thangamayil Jewellery | 4.49% | 4.61% | 0.12 |
| Healthcare Global | 2.16% | 3.59% | 1.43 |
| Olectra Greentech | 5.66% | 7.04% | 1.38 |
| HEG | 7.29% | 7.97% | 0.68 |
| South Indian Bank | 17.58% | 17.91% | 0.33 |
| Gabriel India | 5.97% | 6.50% | 0.53 |
| Great Eastern Shipping | 24.64% | 24.88% | 0.24 |
PCBL Chemical
| 5.53% | 6.08% | 0.55 |
| Reliance Power | 12.93% | 13.09% | 0.16 |
| Lumax Auto Technologies | 7.04% | 7.33% | 0.29% |
Source: Screener
Let’s take a look at some of the companies in detail where FIIs have increased their stake. This is just a few companies, as it is not possible to cover all companies. The selection is not based on any criteria. Also, this is not a fundamental analysis or recommendation, but only provides select details on the company, financials and future plans.
#1 Ashapura Minechem
Ashapura Minechem is a diversified mining and mineral solutions company with a global presence. Ashapura Minechem primarily mines and processes bauxite, bentonite, and other minerals such as bleaching clay and calcium carbonate.
FIIs have hiked their stake in the company from 16.42% in the quarter ending June 2025 to 18.02% in the quarter ending September 2025. Their stake in the company has now increased by a good 1.61%.
Ashapura Minechem Financial Snapshot (FY23 to FY25)
| ₹m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 18,308 | 26,538 | 27,389 |
| Sales Growth % | 43.3 | 44.9 | 3.2 |
| Net Profit | 1,097 | 2,817 | 2,891 |
| ROCE | 16.5 | 23.9 | 19.1 |
Source: Equitymaster
Ashapura Minechem reported net sales of ₹1355 crore in Q1 FY26, as against ₹714 crore, a year ago. Net profits of the company rose to ₹107 crore from ₹52 crore a year ago, more than doubling during the period.
The bauxite export business from Guinea performed well resulting in higher volumes, and revenues with good margin for Ashapura Minechem on a consolidated basis. The company exported 2.05 MMT during Q1 of FY25-26 which is the highest in a quarter of the company’s history, compared to 3.37 MMT during entire FY24-25.
Going forward, there is a great deal of room for new coal, bauxite, and iron ore mining operations as well as a great deal of potential for future subsurface deposit discoveries.
Ashapura Minechem anticipates growth across all business verticals, driven by ongoing demand from the automotive industry, renewable energy sector, and infrastructure development.
As aluminium becomes more widely used in global carbon reduction initiatives, such as electric vehicles and solar energy projects, steady and growing demand from China is anticipated to continue, especially helping the company's bauxite operations.
Just 52 kilometres from the Boffa Mines, the third captive port in the region, the sophisticated ABB Boffa Port in Guinea, has been put into service to enhance its export capabilities. It can load 25,000 tonnes per day. Furthermore, the company has signed a long-term contract with a top Chinese company to provide end-to-end mining, transportation, and marine logistics services.
With growing demand for the company's minerals, including bauxite, silica, kaolin, and bentonite, due to rapid infrastructure development and accelerating industrialisation, Ashapura Minechem is well-positioned to benefit from strong industry momentum. The company is improving its export capabilities with strategic advancements like fully functional ports in Guinea, a global alliance with China Railway, and strong domestic performance across core minerals.
The company's outlook is further strengthened by rising demand in the housing, transportation, and construction industries.
#2 Skipper Ltd
Skipper is the most integrated and among the largest and most competitive transmission tower and pole manufacturers globally.
The company is India’s largest manufacturer of integrated transmission and distribution (T&D) structures and ranks amongst the top 5 transmission tower manufacturers in the world.
It is a prominent player in the engineering products segment and a respected brand in the polymer sector, especially known for its premium quality polymer pipes and fittings used in plumbing, sewage, agriculture, and borewell sectors.
FIIs have hiked their stake in Skipper Ltd from 5.42% in the quarter ending June 2025 to 6.55% in the quarter ending September 2025.
Skipper Ltd Financial Snapshot (FY23 to FY25)
| ₹m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 19,803 | 32,820 | 46,245 |
| Sales Growth % | 16.0 | 65.7 | 40.9 |
| Net Profit | 356 | 817 | 1,493 |
| ROCE | 16.1 | 23.7 | 29.0 |
Source: equitymaster
On the financial front, Skipper Ltd has reported sales growth of a solid 65.7% in FY23-24 and 40.9% in FY24-25. Net profits have surged 319% in just two years.
For Q1 FY26, the company reported net sales of ₹1,253 crore from ₹1,091 crore YoY. The net profits for Q1 FY26 were placed at ₹44 crore as against ₹31 crore YoY.
Moving ahead, the company management believes that the increase in renewable energy companies will warrant the award of ₹9 trillion (tn) in transmission projects between 2024 and 2030.
Apart from this, the company management has noted that the existing transmission grid is not designed to handle fluctuations throughout the day, which reduces its efficiency. This sectorial landscape coupled with the company’s proactive business-strengthening initiatives should propel the company’s revenues from ₹4,625 crore in the last financial year to a projected ₹10,000 crore by 2030.
Sajan Kumar Bansal, chairman and managing director of the company, has noted that the growth that the company achieved in 44 years of its existence is likely to be more than replicated in a fraction of that time.
With robust demand driven by India’s ₹9,150 crore transmission investment outlook and a global energy transition underway, the company remains positioned for sustained growth.
#3 PCBL Chemical (Carbon Black/Other Chemicals)
PCBL Chemical is a part of the RP-Sanjiv Goenka Group. The company has built deep capabilities across carbon black, specialty blacks, and performance chemicals, and is now rapidly expanding into green chemistries and next-generation materials.
PCBL Chemical saw FII stake go up from 5.53% in the June 2025 quarter to 6.08% by the end of the September 2025 quarter.
PCBL Chemical Financial Snapshot (FY23 to FY25)
| ₹m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 57,741 | 64,198 | 84,043 |
| Sales Growth % | 29.9 | 11.2 | 30.9 |
| Net Profit | 4,422 | 4,911 | 4,347 |
| ROCE | 19.6 | 12.2 | 14.4 |
Source: equitymaster
On the financial front, PCBL Chemical reported net sales of ₹2163 crore in Q2 FY26, as against ₹2163 crore YoY. Despite the flat revenues at the company, net profits fell to ₹61 crore in Q2 FY26 from ₹123 crore.
In Q2 FY26, carbon black sales volume increased by 9% YoY. On the other hand, in Q2 FY26, power generation increased by 7% YoY and sales volume by 9% YoY.
Moving ahead, PCBL Chemical’s operations are underpinned by five manufacturing facilities across India: in Durgapur, Kochi, Palej, Mundra, and Chennai (through its wholly owned subsidiary – PCBL (TN) Ltd, with a consolidated carbon black capacity of 790,000 MTPA.
With the help of a brownfield expansion at the Tamil Nadu plant, capacity is anticipated to increase to 880,000 MTPA by FY2025–2026. PCBL (TN) Ltd is moving closer to its target of surpassing 1 million MTPA by FY2027-28 after securing 116 acres of land in Andhra Pradesh for a greenfield unit that will house its sixth manufacturing facility.
In the power space, PCBL Chemical’s total co-generation power capacity stands at 122 MW, including PCBL (TN), which is set to increase to 134 MW through waste heat recovery and sustainable energy investments.
The company plans to expand its speciality chemical portfolio towards high-margin products by developing newer grades with varied applications in speciality blacks, including super-conductive grades and battery chemicals.
PCBL Chemical plans to stay focused on optimising processes, managing costs, improving operations and strengthening overall competitiveness
All of these initiatives are likely to lead to growth at the company in the coming years.
Should investors follow FIIs’ buying trends in midcap stocks?
Many investors seeking risk-adjusted returns and steady capital appreciation find midcap stocks to be an appealing segment, as they are thought to strike a balance between the stability of large caps and the potential for rapid growth of small caps.
For FIIs seeking a balance of growth and stability with a somewhat lower risk profile than small caps and higher potential returns than large caps, midcap stocks offer a "sweet spot." A carefully considered midcap allocation can increase long-term returns, diversify investments, and seize opportunities that are missed in the crowded large-cap market.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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