Triple Booster - Smallcaps Where Promoters, FIIs, and DIIs All Raised Their Stakes

When insiders and institutions move in the same direction, markets tend to take notice.

Promoters increasing their stake reflects confidence from within, while higher holdings by FIIs and DIIs often indicate growing institutional conviction in the company's fundamentals.

Together, these signals suggest alignment between management and professional investors - a rare and meaningful convergence in the small-cap space.

The September quarter saw this trend quietly unfold across several smallcaps. We cover five such companies, in this editorial.

All five are pursuing expansion through new capacities, diversified product lines, or fresh market entries. This suggests that rising ownership aligns with visible growth execution on the ground.

#1 Krishna Defence and Allied Industries

First on the list is Krishna Defence.

Krishna Defence is a rapidly growing defence company primarily focused on providing critical, indigenous components and engineering solutions.

About 95% of the revenue came from the defence segment. Additionally, the company operates in the traditional dairy equipment segment.

Its product portfolio includes shipbuilding steel sections, weld consumables, armored steel profiles, and an improved space heading device. Clients include Cochin Shipyard, Mazagon Dock, and Garden Reach.

Promoters increased their stake by 6 basis points (bps) to 60.02%, while FIIs' shareholding grew by 20 bps to 0.24%, and DIIs entered the company with a 68 bps stake. 100 basis points is 1%.

Shareholding Pattern

Source: Screener

The revenue rose 83% year-on-year (YoY) to Rs 1.9 billion (bn), driven by strong demand in the defence segment. Margins expanded by 105 bps to 15%.6%, leading to a 124% surge in profit after tax (PAT) to Rs 219 million (m).

The company's order book stood at Rs 2.7 bn (as of 31 March 2025), providing revenue visibility of 1.4 years. Krishna Defence reports financials on a half-yearly basis.

Looking ahead, it aims to grow at 30-40% CAGR (Compounded Annual Growth Rate) over the next 3-5 years. The company plans to reach a revenue of Rs 5 bn within the next three to four years.

To achieve growth, it has doubled its capacity at the Halol plant, which was commissioned in April 2025. This expansion has a maximum revenue potential of around Rs 4 bn.

Additionally, it signed a Memorandum of Understanding (MoU) with VABO Composite (Netherlands) to manufacture composite doors, hatches, and superstructures for the Indian Navy.

The company is also entering new product lines, such as armored vehicle components and commercial shipbuilding, to expand its market.

Check out Krishna Defence factsheet and quarterly results to know more.

#2 Spandan Sphoorty Financial

Second on the list is Spandan Sphoorty Financial.

Spandana is engaged in lending, providing small-value unsecured loans to low-income customers in semi-urban and rural areas. These loans usually carry a tenure of 1-2 years. The company also extends loans against property, business loans, and personal loans.

The company is experiencing stress in the microfinance segment which has impacted its performance. As a result, its share price is down 80% from its high of Rs 1,153 touched in January 2024.

In Q2 FY26, Spandana's assets under management (AUM) dropped 61% YoY to Rs 40.9 bn, as disbursements plunged 38% to just Rs 9.3 bn. This sharp curtailment in lending had a significant impact on its financials.

Total income was down 66% to Rs 2.4 bn, while net interest income declined 73% to Rs 91 m. As a result, it swung to a pre-provision operating loss of Rs 40 m, from a profit of Rs 2.7 bn a year ago.

The strain was most visible in asset quality. Operating weakness and higher provisioning led to a net loss of Rs 2.5 bn, compared to Rs 2.1 bn a year ago. However, the company is now eyeing a recovery.

Promoters increased their stake by 3 bps to 48.16%, while FIIs' shareholding grew by 46 bps to 20.26%, and DIIs skate rose by 47 bps to 6.12%.

Shareholding Pattern

Source: Screener

Looking ahead, Spandana expects to accelerate disbursements, targeting a run rate of over Rs 5 bn in Q3 FY26 and more than Rs 7 bn per month the next quarter.

The AUM is likely to improve sequentially from Q3 onwards. For FY27, the company aims to achieve around 20% growth.

Spandana is now revamping its business model with a stronger focus on building a more secure loan portfolio. The company raised Rs 4 bn through a rights issue, with participation from both promoters and institutional investors.

Check out Spandan Sphoorty's factsheet and quarterly results to know more.

#3 Ashapura Minechem

Third on the list is Ashapura Minechem.

Ashapura Minechem's core business is the mining, manufacturing, and trading of various minerals and their derivatives, as well as related services.

Its operations span a wide range of minerals, including bauxite, bentonite, kaolin, bleaching clay, silica and iron ore. Bentonite contributed 45.2% to revenue in FY25, followed by bleaching (28.3%), bauxite (7.3%), and calcined China clay (7.9%).

Promoters increased their stake by 3 bps to 47.79%, while FIIs' shareholding grew by 160 bps to 18.02%, and DIIs by 9 bps to 0.35%.

Shareholding Pattern

Source: Screener

In international operations, the company has substantial reserves in Guinea, which include bauxite - 700 million metric tonne (MMT) and iron ore - 300 MMT. Guinea contributes more than 70% of the company's top line and bottom line. For Ashapura, Guinea could be a key driver of its future growth.

Its growth prospects are closely tied to bauxite, which is emerging as a key mineral globally. With aluminum consumption rising by nearly 5-6% annually, demand for bauxite is set to remain strong.

As of 4 September 2025, the company has invested US$ 135 million (m) in its Guinea operations. The company said that the bulk of the required captive expenditure is complete.

The long-term target is to export 15 MMT of bauxite by FY28, up from the current 3.4 MMT. The Guinea iron ore project is nearing production and could add to profits soon.

It also has three captive ports in Guinea, notable among them the newly commissioned ABB Bofa port, all of which are fully operational. The company aims to expand its port capacity to 16 MMT by Q1FY27.

In contrast, Indian operations focus on value-added mineral products, including Bentonite, Kaolin, and Bleaching Clay. This region exports processed minerals to more than 80 countries.

The revenue rose 90% YoY to Rs 13.6 bn in Q1FY26, driven by the scaling up of the Guinea business. PAT almost doubled to Rs 1.1 bn, from Rs 6 bn in the same quarter last year.

Check out Ashapura Minechem's factsheet and quarterly results to know more.

#4 Eveready Industries

Fourth on the list is Eveready Industries.

Eveready Industries has a legacy spanning over 100 years. It is a household name and the undisputed market leader in dry cell batteries and flashlights, with a continually developing presence in lighting.

The company commands a 53% market share (by value) in the Indian dry cell battery segment. Batteries accounted for 64% of its revenue (FY25), followed by flashlights (13%), and lighting and electricals (23%).

Promoter holding rose marginally by 2 bps to 43.21%, alongside a 25 bps increase by FIIs to 5.21% and a 19 bps rise by DIIs to 2.7%.

Shareholding Pattern

Source: Screener

Revenue increased 7% YoY to Rs 3.7 bn, driven by the flashlights and batteries segment. Margins were flat, while PAT increased 2.8% to Rs 302 m.

Looking ahead, a new greenfield facility for alkaline battery manufacturing under the 'Make in India' initiative is expected to be commissioned by FY26 end. The project, with an annual capacity of 360 million units, entails an investment of Rs 1.8 bn.

The alkaline segment is expected to be a key growth driver, driven by increasing penetration and wider usage across applications. The expansion is likely to lift Eveready's market share in the alkaline segment from the current 15.3%.

With a shift towards rechargeable offerings, management expects double-digit growth for rechargeable flashlights in the medium term.

New product lines, such as insulation tapes and USB-chargeable fans, are also planned to diversify the portfolio and create new revenue streams.

Check out Eveready Industries' factsheet and quarterly results to know more.

#5 Healthcare Global Enterprises

Fifth on the list is Healthcare Global.

HealthCare Global is India's largest pan-India oncology hospital chain, operating 25 centres in 19 cities across 10 states. It had a capacity of over 2,500 beds in Q1 FY26, of which 2,189 beds were operational.

Promoter holding rose by 132 bps to 63.78%, alongside a 143 bps increase by FIIs to 3.59% and a 514 bps rise by DIIs to 18.36%.

Shareholding Pattern

Source: Screener

The revenue rose 17% YoY to Rs 6.1 bn. Adjusted EBITDA grew by 20% to Rs 1.1 bn, while margin expanded by 57 bps to 18.2%.

However, PAT fell 56% to Rs 58.9 m due to an increase in finance cost and depreciation. The hospital's average revenue per occupied bed rose only 0.9% to Rs 44,751. The total occupancy rate increased by 150 bps to 67.1%.

Looking ahead, HCG's strategy is to expand footprint and medical bandwidth with planned expansions.

Its new center in North Bengaluru, with an outlay of Rs 900 m, is scheduled to become operational in the second half of FY26. Another extension project at Whitefield, with an investment of Rs 290 m, was also expected to go live in the second half.

Its return on capital employed will also improve as these new centres gradually increase occupancy.

Check out Healthcare Global's factsheet and quarterly results to know more.

Should You Consider These Stocks?

The concurrent rise in promoter and institutional holdings points to growing confidence in the earnings trajectory of these companies.

With expansion plans underway and balance sheets gradually improving, the focus will shift to execution and margin stability.

If operating performance continues to strengthen over the next few quarters, these companies could see a healthy rise in cash flow.

However, instead of relying only on hype, it is necessary to carefully analyse the company's fundamentals, including financial performance, corporate governance practices, and growth prospects.

Happy investing.

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