4 Smallcaps Where FIIs Have Increased Stake Stake in June Quarter

#2 Ola Electric Mobility

Next on the list is Ola Electric Mobility.

Ola Electric manufactures electric scooter and motorcycles for the Indian market. The company also develops battery cells and energy storage solutions through its integrated Gigafactory.

Its business is increasingly driven by vertical integration, in-house battery manufacturing, AI-powered operations, and software-enabled vehicle technologies. These capabilities are expected to improve operating efficiency, strengthen margins, and support long-term growth.

FIIs increased their stake in Ola Electric during the latest quarter, reflecting renewed institutional interest despite the company's ongoing turnaround.

FY26 was a year of operational reset for Ola Electric. The company focused on improving product quality, reducing operating costs, strengthening its service network, and improving cash flows. While deliveries remained under pressure, the business became operationally stronger during the year.

The company reported consolidated revenue of Rs 22.5 bn during FY26 and delivered 1.74 lakh electric vehicles. Gross margin improved to 30.6%, reflecting better product mix, vertical integration, and improved manufacturing efficiency.

Another key highlight was the sharp improvement in profitability. Ola reported its first operating cash flow positive quarter in Q4FY26. It's also reduced operating expenses significantly through tighter cost control and improved operating efficiency.

The company's service network also showed meaningful improvement. Average service turnaround time reduce sharply, warranty costs declined, and customer service metrics improved across the country. These improvements have started supporting a recovery in vehicle registration and demand.

Looking ahead, Ola Electric is expanding beyond electric scooters. The Roadster motorcycle platform is emerging as a new growth driver, while the Gigafactory is expected to strengthen battery localisation and improve long-term margins.

The company also plans to transition its entire vehicle portfolio to in-house battery cells by September 2026.

For more details, see the Ola Electric Mobility fact sheet and quarterly results.

#3 Chennai Petroleum Corporation

Next on the list is Chennai Petroleum Corporation.

Chennai Petroleum Corporation is one of India's leading refining companies and a subsidiary of Indian Oil Corporation.

The company refines crude oil into petroleum products such as diesel, petrol, LPG, aviation turbine fuel (ATF), naphtha, lubricants, and other specialty products. It also focuses on improving refinery efficiency and expanding its portfolio of value-added products.

For the June 2026 quarter, the company has seen an increase in FIIs holding.

Chennai Petroleum delivered a record operating performance in FY26. The company achieved its highest-ever crude throughput of 11.71 million (m) tonnes, operating at 112% of its installed capacity. It also reported record production of diesel, petrol, LPG, and other value-added products during the year.

The company outperformed industry benchmarks on profitability. Gross Refining Margin (GRM) stood at US$ 9.2 per barrel in FY26, compared to the Singapore benchmark of US$ 5.8 per barrel.

Chennai Petroleum also strengthened its balance sheet during the year. Net debt remained below Rs 10 bn, while the debt-to-equity ratio improved significantly.

The company rewarded shareholders with its highest-ever dividend of Rs 62 per share, including both internal and final dividend.

Looking ahead, Chennai Petroleum is investing in higher-value products to improve profitability. The company has started work on its Group II and Group III base oil project, which is expected to replace imports and improve product realisation.

The company also expanding its retail fuel network and continues to evaluate low-cost debottlenecking projects to increase refinery capacity and efficiency.

For more details, the Chennai Petroleum Corporation fact sheet and quarterly results.

#4 Anand Rathi Wealth

Next on the list is Anand Rathi Wealth.

Anand Rathi Wealth is one of India's leading non-bank wealth management companies, focused on serving high-net-worth (HNI) and ultra-high-net-worth (UHNI) families.

The company offers comprehensive wealth management solutions, including mutual funds, structured products, debt instruments, portfolio advisory services, digital wealth solutions, and a SaaS platform for independent financial advisors.

FIIs increased their stake in Anand Rathi Wealth during the latest quarter.

Anand Rathi delivered another strong quarter despite volatile equity markets. The company reported its 18th consecutive quarter of more than 20% YoY profit growth, highlighting the strength of its client-centric and market-agnostic business model.

FY26, revenue grew 22% to Rs 12 bn, while PAT increased 28% to Rs 3.9 bn. The company also maintained an industry-leading ROE of 46%, reflecting its asset-light business model and disciplined capital allocation.

Assets Under Management (AUM) reached Rs 930 bn at the end of FY26 and subsequently crossed the important Rs 1 trillion milestone after the financial year ended.

Net flows remained healthy at Rs 134 bn, while client attention stayed low at 0.54%, highlighting strong client trust and long-term relationship.

The company continued to strengthen its distribution franchise. Active client families increased to 13,395, while relationship managers handled higher average AUM, reflecting improving productivity rather than aggressive hiring.

Management reiterated that wealth management is a people-driven business where trust, transparency, and long-term relationships create a stronger competitive advantage than capital alone.

The company expects another year of healthy growth. The company has guided for Rs 14 bn revenue, Rs 4.6 bn PAT, and Rs 1.2 trillion AUM in FY27.

It declared a 1:1 bonus issue and final dividend of Rs 7 per share.

For more details, the Anand Rathi Wealth fact sheet and quarterly results.

Conclusion

The latest quarter highlights a clear shift in institutional investing. Despite overall FII outflows from Indian equities, a select group of smallcap companies continued to attract higher foreign ownership.

These companies operate across different industries but share common strengths such as improving fundamentals, consistent execution, and growth visibility.

Rising FII ownership reflects growing institutional interest, but it should not be viewed as a stand-alone investment signal.

A company's business quality, financial performance, management execution, and valuation remain the key factors to evaluate before drawing any investment conclusions.

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