Foreign investors stocked up on these three mid caps in Q1. Should you?
Foreign flows into the Indian market often signal confidence in the country's long-term growth. What's particularly noteworthy is that FIIs invested in diverse sectors including renewable energy, defence, shipbuilding and financial services in Q1.
In this piece, we'll dive into three mid cap stocks that saw notable FII buying during the quarter.
#1 Premier Energies Ltd
Premier Energies is a solar manufacturing powerhouse that's been quietly building its empire since 1995. What makes it stand out is its scale and focus on technology. With a massive 2 GW of capacity for solar cells and 5.1 GW for solar modules, it is equipped to handle high volume. The company's automated production lines achieve an impressive 23.2% cell efficiency. It is also future-ready, planning to introduce advanced TOPCon cell technology.
Most of the company's revenue comes from India's booming domestic solar market, which fits perfectly with the government's ambitious renewable energy targets.
FIIs' shareholding jumped from about 3% in March to 4.38% in June – a 46% increase in just one quarter. This isn't just a random buying; it shows the company's strong financial performance and expansion plans caught investors' attention.
Another important aspect of Premier Energy is its backwards integration strategy. It's setting up a 2-GW solar wafer plant through a joint venture, essentially controlling more of its supply chain.
The company's revenue increased 109.76% in FY25 and net profit surged 305%. The Ebidta margin expanded to 28.78% from 15.93% in FY24. This performance was due to India's booming solar demand and the company's growing manufacturing capacity.
The company also has a massive order book worth ₹84,456 crore (5.303 MW of capacity), mainly comprising domestic orders, which provides strong revenue visibility.
#2 Indian Renewable Energy Development Agency Ltd
IREDA is a financial institution focussed on India's clean-energy transition. Established in 1987 as a non-banking financial Institution under the ministry of new and renewable energy, IREDA has spent more than three decades funding renewable energy projects across India.
What makes IREDA attractive is its position as the government's primary vehicle for financing India's ambitious renewable energy goals. The company recently achieved a significant milestone in operational autonomy, giving it more freedom to take strategic decisions and expand operations.
Foreign investors clearly see IREDA's long-term potential. Their shareholding jumped from 1.75% in March to 2.04% in June – a 38.80% increase – despite weak financials. This suggests FIIs are looking beyond quarterly fluctuations and focusing on IREDA's strategic importance.
A key factor that boosted investors' confidence was the recent policy support for IREDA's bonds. The government granted tax-saving status to IREDA bonds under Section 54EC, making them attractive for investors looking to save on capital gains tax.
This regulatory backing not only broadens IREDA's investor base but also ensures more consistent and lower-cost capital inflows, strengthening its ability to fund renewable energy projects efficiently.
IREDA reported mixed financial results in Q1FY26, with revenue from operations growing 29% year-on-year but net profit declining 36% year-on-year, reflecting operational challenges. IREDA's outstanding loan book grew 26%, while new sanctions jumped 36%.
Other key developments, such as ₹2,010-crore fundraise through a qualified institutional placement (QIP), the launch of perpetual bonds worth ₹1,270 crore, and maintaining a healthy margin with a 9.95% yield on loan assets and a 3.60% net interest margin, underscored its role as India's premier renewable-energy financier.
#3 Garden Reach Shipbuilders & Engineers Ltd
Garden Reach has over six decades of experience in building naval and commercial vessels. Based in Kolkata, It's a government-owned company that has been the backbone of India's maritime defence capabilities since it was nationalised in 1960. It holds the distinction of being the first Indian shipyard to build 100 warships. In 2006 GRSE received Miniratna status, which enhanced its financial and operational autonomy.
The company's portfolio spans guided-missile frigates, corvettes, fleet tankers, fast patrol vessels, amphibious warfare vessels for naval applications, and commercial vessels such as research ships, dredgers and tugboats. Beyond shipbuilding, the company also operates engineering and engine divisions, positioning itself as a comprehensive maritime solutions provider in India's expanding defence sectors.
Foreign investors seem bullish about GRSE's long-term prospects, with their shareholding increasing 46% from 3.84% in March to 5.33% in June.
GRSE's strategic diversification into commercial shipbuilding adds another layer of attraction. The company has secured an order from German clients and signed an MoU for India's first polar research vessel. This diversification reduces dependence on government contracts while positioning GRSE in high-margin, specialised segments with significant export potential.
The company delivered strong results in FY25, with revenue from operations increasing 41% year–on-year. Net profit surged 46% while the operating margin remained around 13%.
In Q4 FY25, revenue jumped 62% quarter-on-quarter and net profit increased 118%. A significant business development was the ₹430-crore provision write-back from the P-17 Alpha project, reflecting the company's improved cost visibility as the first ship nears delivery.
GRSE's order book stands at ₹22,860 crore, providing strong revenue visibility. The company aims to expand capacity from 24 to 28 ships this year, positioning itself for major upcoming defence contracts worth ₹40,000 crore.
Conclusion
Buying patterns show FIIs are investing in India's structural transformation and not just looking at companies' financials.
Despite the mixed quarterly results of the above companies, FII continued to increase their stakes, demonstrating their confidence in the long-term growth of sectors such as renewable energy, defence indigenisation, and financial inclusion. While short-term volatility may continue because of project execution cycles and operational adjustments, the underlying fundamentals of these companies remain robust.
For retail investors, FII activity can serve as a valuable signal about India's growth trajectory. However, success will depend on the efficient execution of expansion plans, continuing policy support, and an ability to translate strategic positioning into sustained financial performance.
Happy investing!
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
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
18 minutes ago
- Time of India
Goa stands to benefit from India-UK free trade agreement: GCCI
Panaji: The India-UK free trade agreement (FTA) will significantly benefit Goa's pharmaceutical companies, tourism sector, and feni producers, said the Goa Chamber of Commerce and Industry (GCCI) on Saturday. GCCI president Pratima Dhond said that the recent signing of the trade agreement between the two nations could provide a much-needed boost to Goa's economy. The FTA provides zero-duty access to the UK market for nearly 99% of Indian exports, including pharmaceuticals. While the UK imports nearly $30 billion worth of medicines and medical devices, India's pharma exports to the UK currently stand at under $1 billion. The bilateral agreement is anticipated to unlock major export opportunities for the sector. Goa is ranked sixth in pharmaceutical exports, with an overall share of 5.6%. 'This landmark agreement is expected to significantly enhance trade and investment opportunities between India and the UK, with far-reaching benefits for the state,' she said. The FTA could lead to increased travel and tourism opportunities between India and the UK, and this will benefit Goa's tourism industry. Dhond said that Goa's feni industry will gain recognition in the British market with geographical indication protection, opening up new export opportunities. 'This will be a major boost for govt, which is promoting exports of Indian alcoholic beverages to global markets,' she said. Meanwhile, duty-free exports of marine products to the UK, textile businesses, and IT services also stand to benefit from the trade agreement, boosting the state's economy over the long term, said GCCI. The UK imports around $5.4 billion worth of marine products such as prawns, tuna, mackerel, sardines, squid, crab, and pomfret. India's current share in the UK's marine imports is just 2.3%, but this share is projected to double after the FTA. All coastal states stand to benefit from export-led job creation. 'Indian professionals, including those from Goa, will have easier access to the UK market, with relaxed visa procedures and exemptions from UK social security contributions,' said Dhond.
Time of India
34 minutes ago
- Time of India
Indian mining seminar highlights responsible practices
Nagpur: The two-day seminar on "Indian Mining: Present Scenario and Future Perspective," organised by the Mining Engineers Association of India (MEAI), ended on Saturday with experts emphasising on responsible mining and understanding the changing landscape of the sector. Chairman-cum-managing director (CMD) of Manganese Ore India Limited (MOIL), Ajik Kumar Saxena, who was the chief guest, spoke on the timely analysis of mining leftovers for identifying the possibility of finding critical minerals from mine waste, tailings, or slags. The CMD of Mineral Exploration and Consultancy Limited (MECL), also a Nagpur-based public sector undertaking, Indra Dev Narayan was the guest of honour. He said PSUs like MECL play a crucial role in shaping the future of the country's mining sector. "We have been instrumental in discovering reserves of nearly all major minerals across the country. In recent years, MECL has expanded its role beyond traditional drilling to advanced exploration technologies, data analytics, and remote sensing. MECL is now working as a knowledge partner to both govt and the private sector in this decade of critical mineral demand and energy transition," Narayan said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play this game for 1 minute and see why everyone is addicted. Undo The controller general of the Indian Bureau of Mines (IBM), Peeyush Narayan Sharma, stressed on the need for responsible mining along with the adoption of new technology. He also said nothing can be written off as waste in the mining sector.
Time of India
an hour ago
- Time of India
What happened to UAE's Iceberg Project? The ambitious plan to haul a colossal Antarctic iceberg to the coast of Fujairah
The UAE Iceberg Project planned to tow a massive Antarctic iceberg 6,480 nautical miles to Fujairah but faced major challenges and remains unfulfilled/ Representative Image In a region where rain is rare and water more precious than oil, the United Arab Emirates once had its sights set on an audacious engineering marvel: towing a gigantic Antarctic iceberg to its sun-baked coast to quench thirst, summon clouds, and maybe even reshape climate patterns. But as of 2025, the only glacier ice that has made it to Dubai is not floating off the coast but chilling highball glasses in rooftop bars, courtesy of a boutique Greenland startup. The UAE Iceberg Project : Cold Ambitions in a Hot Desert Launched in 2017 by the National Advisor Bureau Limited, a private Abu Dhabi-based company, the UAE Iceberg Project sought to tow a massive tabular iceberg, measuring roughly 2 kilometers long by 500 meters wide, from Antarctica to Fujairah, a coastal emirate on the Gulf of Oman. 3D concept of the iceberg stationed roughly 3 kilometers off the coast of Fujairah for harvesting/ Image: National Advisor Bureau Ltd. The logic, according to Abdulla Alshehi, the firm's managing director and the project's chief architect, was straightforward: an average iceberg holds over 20 billion gallons of fresh water, enough to supply 1 million people for five years. 'This is the purest water in the world,' he told Gulf News in 2017. And the UAE, consuming 15% of the world's desalinated water and facing depleting groundwater within 15 years, was in no position to ignore unconventional ideas. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Premium 1 BHK at Mahindra Citadel – Coming Soon! Mahindra Citadel Enquire Now Undo The iceberg, selected via satellite near Heard Island in the Southern Ocean, would undertake a 12,000-kilometer (≈6,480 nautical miles), 10-month journey across the Southern, Indian, and Arabian Seas to reach the coast of Fujairah in the UAE. Towed by large ocean-going vessels, it would travel northward through the Indian Ocean before entering the Gulf of Oman. Upon arrival, it would be stationed roughly 3 kilometers off Fujairah's coast. Harvesting would begin immediately, with the aim of extracting potable water within two to three months before significant melting occurs. Computer simulations commissioned by the company projected that up to 30% of the iceberg's mass could be lost during the journey, a challenge the team hopes to mitigate by timing its arrival during the UAE's winter season, when sea temperatures are lower and melting would slow. To prevent breakup during the long journey, Alshehi's firm developed a patent-pending metal belt, a kind of reinforced corset designed to hold the iceberg intact against wave stress and temperature gradients. In 2020, the UK Intellectual Property Office granted Alshehi a patent for his invention, called the "Iceberg Reservoirs" system. The patent was promoted as a credibility boost to attract investment and reinforce the project's technical feasibility. In 2020, the UAE Iceberg Project's 'Iceberg Reservoirs' system was patented by the UK Intellectual Property Office/ Image: National Advisor Bureau Limited A pilot project, costed between $60–80 million, was announced for 2019. A smaller iceberg was to be towed to Cape Town or Perth as proof of concept. The full UAE project carried a price tag of $100–150 million. Despite a splashy website launch ( promises of scientific panels, and a vision of global humanitarian water relief, no trial was ever confirmed to have taken place. As of 2025, there's been no operational progress, no updated logistics, and no official cancellation, just prolonged silence. The Rainmaker Fantasy What made the proposal especially memorable was its near-mystical secondary goal: climate engineering. Alshehi claimed that the presence of a colossal iceberg floating off the UAE coast could induce localized weather changes. 'Cold air gushing from an iceberg close to the Arabian Sea would cause a trough and rainstorms,' he told local media. The iceberg, he argued, could 'create a vortex' that would attract clouds from across the region, generating year-round rain for the desert interior. This, he claimed, could help reverse desertification and transform arid landscapes into lush, green areas, with benefits for agriculture, biodiversity, and the broader ecosystem. Meteorologists weren't sold. While some acknowledged localized effects, like minor cloud formation due to temperature differentials, experts like Linda Lam from said sustained, regional rainstorms were unlikely due to the complex nature of atmospheric dynamics. Water Crisis and the Case for Desperation The UAE's acute water issues form the bedrock of the project's rationale. The country experiences a paltry 120 millimeters of rainfall annually, and according to a 2015 Associated Press report, its groundwater could be fully depleted within 15 years. Meanwhile, the Gulf states have among the highest water usage rates in the world: around 500 liters per person per day. Desalination, though critical, is energy-intensive, costly, and environmentally damaging. Alshehi warned of desalination plants pumping concentrated brine back into the Gulf, increasing salinity and harming marine life. His iceberg initiative, he claimed, would be not only cheaper in the long run but eco-friendlier, despite concerns about dragging a 100,000-year-old ice mass across the globe. He asserted that environmental impact assessments had been conducted, and results suggested minimal disruption to ecosystems,though no independent third-party review was ever published. Ice, Reimagined: A Greenland Startup Finds the Sweet Spot While Alshehi's Antarctic ambitions appear stalled in bureaucratic limbo, a smaller, scrappier company in Greenland has quietly realized a modest version of his vision,not as a humanitarian water source, but as luxury indulgence. Founded in 2022 by Greenlandic entrepreneurs, Arctic Ice ships ice harvested from Greenland's fjords to high-end bars and restaurants in Dubai. Their first commercial shipment, around 22 metric tonnes, arrived recently, offering the 'cleanest H₂O on Earth' to be shaved into ice cubes for cocktails, ice baths, and facial massages in Dubai's spas. Arctic Ice harvests ancient glacier fragments from Greenland's fjords, tests them, and ships purified chunks to Dubai for luxury use/ Image: Arctic Ice The process is artisanal: Using a crane-equipped boat, workers collect naturally calved icebergs from the Nuup Kangerlua fjord near Nuuk. Only the clearest, bubble-free ice, locally known as 'black ice,' is selected. These are believed to be over 100,000 years old, having never touched soil or contaminants. Each chunk is cut with sanitized chainsaws, stored in food-grade insulated crates, and sampled for lab analysis to screen for ancient microorganisms or harmful bacteria. The ice is shipped via refrigerated containers aboard cargo ships already returning empty from Greenland, minimizing additional emissions. The second leg, from Denmark to Dubai, completes the frozen supply chain. Despite the company's carbon-neutral commitment, backlash has been fierce. Critics online lambast the concept as 'climate dystopia,' arguing that glacial ice should not be commodified, especially given the accelerating melt of the Greenland Ice Sheet. Co-founder Malik V. Rasmussen says some messages have verged on death threats. Still, Arctic Ice insists it is creating economic opportunity for a financially dependent Greenland, where 55% of the budget is subsidized by Denmark. 'We make all our money from fish and tourism,' Rasmussen said. 'I've always wanted to find something else we can profit from.' The Fine Line Between Innovation and Spectacle Both projects,the giant iceberg tow from Antarctica and the boutique glacier cubes from Greenland, highlight a pressing tension: how far will humanity go to secure water, and at what cost? Alshehi's vision is bold but fraught with logistical and ethical challenges. Icebergs aren't endlessly renewable, and towing them across hemispheres feels more sci-fi than sustainable. Arctic Ice's venture, meanwhile, has found a controversial niche,combining novelty, luxury, and symbolism. In a time of climate anxiety, it offers an icy illusion of control, frozen fragments of a melting world, crafted into cocktail spheres. Whether climate solution or spectacle, these ideas raise key questions: Who owns natural ice? Can it be harvested responsibly? And as water scarcity grows, how do we balance local needs with global care? For now, the UAE's giant iceberg remains a dream deferred, and Dubai's cocktails are as cold as ever, just sourced from a little farther north, and in smaller, sparkling doses.
