Equity: Mutual Funds Make Bold Q1 FY26 Bets on 10 Stocks

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Double-digit QoQ spike in MF shareholding across key mid-cap and sectoral plays

By S JHA

MUMBAI, August 2, 2025 — Mutual Funds have made aggressive portfolio shifts in Q1 FY26, sharply increasing their stakes in select companies across sectors, according to data shared by StockEdge on its Telegram channel. The top 10 companies with the highest quarter-on-quarter (QoQ) jump in mutual fund shareholding reflect fresh institutional bets, with Vishal Mega Mart and RBL Bank witnessing over 1300 basis points (bps) increase each.

As per the StockEdge report dated July 31, 2025:

Vishal Mega Mart saw mutual fund holdings rise from 11.35% in March 2025 to 25.69% in June 2025 — a dramatic 1434 bps jump.
RBL Bank followed closely with a 1392 bps increase, rising from 15.27% to 29.19%.
Other notable gainers included Sai Life Sciences (719 bps), Zydus Wellness (678 bps), and PNB Housing Finance (667 bps).

Market analysts interpret this pattern as mutual funds rotating capital toward consumer-facing and financial sector stocks, possibly betting on a domestic demand revival and improved credit off-take post general elections. Vishal Mega Mart is seen as a proxy for Tier 2 and Tier 3 consumption. Its sharp rise in MF shareholding signals institutional optimism about retail growth.

RBL Bank, despite past setbacks, is gaining fresh traction as asset quality improves and net interest margins stabilize.

Sai Life Sciences and Zydus Wellness reflect continued faith in India’s healthcare and pharmaceutical exports story. Other companies that saw significant upticks include: Biocon (647 bps) – likely due to renewed confidence in biosimilar pipelines, and Kaynes Technology (607 bps) – riding on the manufacturing and electronics capex wave. Jubilant Ingrevia, Aptus Value, and Niva Bupa round out the list, all showing over 500 bps QoQ gains.

The mutual fund industry reported net inflows into mid-cap and thematic funds during Q1 FY26, aligning with the surge in holdings in these names. Fund managers are gradually shifting from defensives to cyclicals and high-growth midcaps as macroeconomic visibility improves.

Shares of Vishal Mega Marts have reported 25% gains in the last one year. The stock is trading at a PE multiple of 103, suggesting a premium valuation.

Shares of Kaynes Technology have sharply risen in the last two days, tracking announcement of its Q1FY26 results. The company beat the street expectations. The stock was sharply higher by almost 4% at ₹6400 on Friday.

Shares of Sai Life Sciences have gained just about 5% in the last one year. But the stock from the April 1, 2025 low of ₹669 has risen to ₹788. The stock is trading at a PE valuation of 91.

(This article makes no recommendation for buy or sell of shares of any company)

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