5 Stocks Bought by FIIs in Latest Quarter That are Down by 30%

Foreign Institutional Investors (FIIs) have sold about Rs 1.4 trillion (tn) worth of equities year-to-date in FY26, till 9 December 2026.

However, domestic investors fully absorbed the selling by buying shares worth Rs 5.4 tn.

Despite that, FIIs' consistent selling has left a scar on the market, with a weak broader market amid a period of consolidation.

The mood is still not upbeat as US tariffs, a depreciating rupee, and high valuations have pushed foreign money toward safer assets.

And through this period, the market has begun to show wider divergences. The frontline indices are holding their ground, but broader markets, especially smallcaps, are under severe pressure. Against this backdrop, an interesting pattern emerged in the latest shareholding data.

Even as FIIs became aggressive sellers overall, they quietly increased stakes in a few companies that have fallen more than 30% from their highs. And all these companies are looking to achieve faster growth through capacity expansion.

Let's take a look at five such companies...

#1 HBL Engineering

First on the list is HBL Engineering.

HBL Engineering is an engineering and manufacturing firm focused on developing in-house technologies to gain a consistent competitive advantage.

The company's operations are divided into three business segments: the Industrial Battery Segment (Lead, Lithium, and Nickel Cadmium Batteries) and the Defence and Industrial Electronics Segment.

The defence segment manufactures specialised products, including batteries for aircraft, missiles, torpedoes, and submarines, as well as electronic fuses for ammunition.

In the Industrial Segment, it focuses on rail signaling, including the KAVACH system.

FIIs increased their shareholding to 7.1% in the quarter ending 30 September, from 4.91% in Q2 of FY25 and 4.83% in Q1 of FY26.

Shareholding Pattern

Source: Screener

From a financial perspective, revenue rose 134.7% year-on-year (YoY) to Rs 12.2 bn in Q2 of FY26, driven by execution of the order book. Operating profit margin doubled to 44%, leading to a 4.4x increase in profit to Rs 3.9 bn.

Looking ahead, HBL projects that rail signaling will be the largest business segment by FY30, with Kavach sales anticipated to stabilise at about Rs 13-15 bn per year during FY26-28.

The electronic fuse business is expected to be the second largest contributor by FY30. Furthermore, sales of the Torpedo motor are expected to commence in FY28.

The company has shifted its focus from building prototypes for smaller trucks to larger vehicles (55-ton and 35-ton trucks). This business is expected to generate total sales of Rs 45 bn in FY30.

Check out HBL's 5-year financial factsheet and quarterly results to know more.

#2 JK Cement

Second on the list is JK Cement.

The company manufactures and sells cement and cement-related products.

Product categories include gray and white cement, as well as value-added products (VAP) such as wall putty, gypsum plaster, tile adhesive, grouts, and paints.

The capacity for Grey cement is 26.3 MTPA, and for white cement and wall putty is 3.1 MTPA. MTPA is metric tonnes per annum.

FIIs increased their shareholding to 18.57% in the quarter ending 30 September, up from 17.55% in Q2 of FY25 and 17.56% in Q1 of FY26.

Shareholding Pattern

Source: Screener

Revenue rose 19% YoY to Rs 63.7 bn in the first half of FY26, driven by broad-based volume growth. Margins expanded by 360 bps to 18.3%, while PAT rose by 51% to Rs 4.8 bn.

Looking ahead, there are several earnings triggers that may have led FIIs to increase their stake.

JK Cement will increase its grey cement capacity from 24.34 MTPA in FY25 to 30 MTPA by FY26 and 50 MTPA by 2030. This expansion will be achieved through a mix of greenfield and brownfield projects.

Construction of the 6 MTPA Panna Grey Clinker Capacity is in the advanced stage of completion. The 1 MTPA grinding unit at Prayagraj was commissioned on 25 October 2025. The 3 MTPA split grinding unit at Bihar is expected to be commissioned in Q4 FY26.

A 6 lakh-tonne wall putty capacity in Rajasthan is planned to be commissioned in Q2 FY27. The company has also commenced work on the Jaisalmer Integrated Project. This new facility is planned to have a clinker capacity of 4 MT and a grinding capacity of 3 MT, with scheduled commissioning in H1 FY28.

JK Cement aims to grow volumes faster than the market growth rate. It also plans expansion in Central and East India to strengthen its market position in these high-potential regions.

The company is diversifying its product ecosystem into VAP, such as paints, tile adhesives, and grouts. The revenue target for both businesses is projected to increase to Rs 12-15 bn by FY30.

Check out JK Cement's 5-year financial factsheet and quarterly results to know more.

#3 KRN Heat Exchanger and Refrigeration

Third on the list is the KRN Heat Exchanger (KRN).

KRN specialises in manufacturing fin-and-tube heat exchangers for the heating, ventilation, and air conditioning (HVAC) and refrigeration industries.

The company uses non-ferrous metals, like copper and aluminum, to produce various products. These products are used in critical applications, including air conditioning, refrigeration, and process cooling.

FIIs increased their shareholding to 5.46% in the September quarter, up from 4.05% in Q2 FY25 and 2.25% in Q1 of FY26.

Shareholding Pattern

Source: Screener

From a financial perspective, revenue rose 72.9% YoY to Rs 3.4 bn in H1 FY26, while margin declined 300 bps to 14.62%. However, net profit surged 65.7% to Rs 393.3 million (m).

Looking ahead, KRN has an annual production capacity of 1 m units, which is expected to grow 6-fold.

The existing facility is operating at almost full utilisation. The new capacity is expected to achieve 20% utilisation in FY26 and 50% the next financial year.

KRN also aims to achieve an export revenue share of 50% in the next three years for the finned and tube-type heat exchanger segment.

KRN is also targeting fast-growing areas like data center cooling and estimates an addressable market of around Rs 15 bn for heat exchange in projects such as the Google data center investment in Visakhapatnam.

Check out KRN's 5-year financial factsheet and quarterly results to know more.

#4 Ratnaveer Precision Engineering

Fourth on the list is Ratnaveer Precision Engineering.

Ratnaveer specialises in manufacturing and supplying a wide range of stainless steel (SS) products, including fasteners, tubes and pipes, and finishing sheets.

Its operational strength is vertical integrated operation, where SS scrap is melted in-house to produce ingots and sheets, which are then used to manufacture finished products.

This approach helps with material availability, cost control, process stability, and sustainability through recycling. It has a total capacity of 30,000 MTPA.

As of December 2025, FIIs increased their shareholding to 20.05%, up from 1.32% in Q2 FY26 and 0.73% in Q2FY25.

Shareholding Pattern

Source: Screener

For the first half of FY26, the company's revenue rose 27% YoY to Rs 5.5 bn. Operating profit margins were 10%, while PAT surged by 20% to Rs 300 m.

Looking ahead, Ratnaveer has set aggressive financial targets based on planned capacity expansions. The company aims to reach Rs 15 bn in revenue by FY27 and further grow to Rs 18 bn by FY28. Profitability is also expected to increase, with a 13.5% margin, driven by operating leverage.

The core of the expansion strategy includes two major expansion initiatives, targeted for completion by mid-2026. Capacity expansion of tube, circlip, fastener, and solar plants is expected to go live by July 2026.

The company plans to start a copper-clad Laminates (CCL) project, with completion expected by July 2026. This project is strategic because CCL is a key raw material for Printed Circuit Board makers and is currently fully imported into India, giving Ratnaveer a first-mover advantage.

This is expected to generate annual revenue of Rs 1.1 bn, with a 20% margin. Additionally, the mix of high-margin VAP is expected to increase to around Rs 2 bn, out of the topline target of Rs 15 bn.

Check out Ratneveer's 5-year financial factsheet and quarterly results to know more.

#5 Waaree Energies

Fifth on the list is Waaree Energies.

Waaree Energies is primarily engaged in the manufacturing of solar photovoltaic (PV) cells and modules. It's India's largest solar module and cell player, with 14.1% market share in India's module shipments.

It has 5.4 gigawatt (GW) of operational solar cells and 18.7 GW of module manufacturing capacity. It has a solar power capacity of over 105 GW and is expected to reach 280 GW by 2030.

The company also provides EPC services for solar power plants and trades other solar-related products, including solar water heaters and solar water pumps.

Geographically, it's well-diversified, with manufacturing facilities in Gujarat, Uttar Pradesh, and the US.

FIIs increased their shareholding from 0.7% and 2.68% in the previous two quarters to 6.35% in the quarter ended 30 September.

Shareholding Pattern

Source: Screener

From a financial perspective, revenue in the first half of FY26 grew 51.2% YoY to Rs 108.2 bn, driven by strong execution of the order book. The margins also expanded aided by operating leverage. The net profit grew 112.6% to Rs 16.5 bn.

As of Q2FY26, its order book stood at Rs 470 bn, with 53% from India and 57% from overseas. The order book provides over three years of revenue visibility, based on FY25 revenue.

Looking ahead, Waaree expects cell manufacturing to grow at an annual growth rate of over 30% over the next 5 years. To capitalise on the demand, Waaree is expanding its capacity by investing Rs 250 bn.

The company aims to operationalise the remaining module capacity expansion to reach a total of 26.7 GW (including 6 GW PLI capacity) by early 2026.

The 5.4 GW cell manufacturing capacity is being ramped up and is expected to be 80-85% utilised in the current quarter. Additionally, expansion targets planned for FY27 include increasing cell capacity to 15.4 GW and ingot-wafer capacity to 10 GW.

Lithium-ion storage cell and BESS capacity is being expanded from 3.5 GWh to 20 GWh. Phase I of 3.5 GWh is expected to be commercialised by FY27, and the remaining 3.5 GWh by FY28. It's also diversifying into battery energy storage systems (BESS), electrolysers, and inverters with a capex of Rs 81.8 bn.

Electrolyzer capacity (green hydrogen) is being scaled up from 300 MW to 1 GW, with commissioning expected by FY27. Inverters are following a similar path.

The current 3 GW capacity will increase to 4 GW, with 3 GW scheduled to go live in FY26 and the remaining 1 GW in the next year.

Check out Waaree Energies' 5-year financial factsheet and quarterly results to know more.

Bottomline

Even in a year dominated by foreign selling and broader market weakness, institutional investors are positioning themselves ahead of the next earnings cycle.

Each of these companies is entering a phase of capacity-led growth, which could boost profitability.

While price corrections have been steep, the underlying fundamentals remain on an upward curve, suggesting that institutional accumulation may be a precursor to a more sustained recovery.

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

Happy investing.

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