5 Small-Cap Stocks with Increased FII Stake in Q2: A Closer Look

During the second quarter of the fiscal year 2026, a few small-cap stocks have been the focus of Foreign Institutional Investors (FIIs) with their increased investments. These are essentially bets on the expansion and the profitability of the companies that mostly represent good business fundamentals, strategic moves, or market positioning that attract global investors.

The increasing share of FIIs in small-cap stocks is also a powerful psychological factor that can attract the attention of local investors who then look at these stocks as potential investment opportunities.

Marathon Nextgen Realty

With a market capitalization of Rs. 3,823 crore, the shares of Marathon Nextgen Realty Limited are trading at Rs. 567. FII has increased its stake in the company from just 0.94 percent in the June quarter of 2025 to a staggering 6.89 percent in the September quarter of 2025, an increase of 5.95 percent.

Marathon Nextgen Realty is a real estate developer based in Mumbai with a rich experience of more than 54 years and has completed 100+ projects. The firm exclusively develops townships, affordable housing, luxury towers, and commercial spaces all over the Mumbai Metropolitan Region (MMR). It has established a reputation for providing quality projects that meet the needs of buyers from all segments.

Shyam Metalics & Energy

With a market capitalization of Rs. 23,825 crore, the shares of Shyam Metalics & Energy Limited are trading at Rs. 854. FII has increased its stake in the company from 3.21 percent in the June quarter of 2025 to 3.65 percent in the September quarter of 2025, an increase of 0.44 percent.

Shyam Metalics and Energy Limited is a major steel and ferro-alloys producing company that has its significant operations in West Bengal and Odisha. The company produces TMT bars, billets, and wire rods under the brand “S-E-L Tiger” and is well-equipped with two robust, fully integrated plants, which enable it to keep its profits and growth at a stable level.

Fiem Industries

With a market capitalization of Rs. 5,893 crore, the shares of Fiem Industries Limited are trading at Rs. 2,238. FII has increased its stake in the company from 4.68 percent in the June quarter of 2025 to 7.19 percent in the September quarter of 2025, an increase of 2.51 percent.

Fiem Industries Limited is a leading manufacturer of automotive lighting, mirrors, and plastic components for two, three, and four-wheelers. The company also offers LED lighting solutions for indoor and outdoor use, along with display and passenger information systems.

Power Mech Projects

With a market capitalization of Rs. 7,611 crore, the shares of Power Mech Projects Limited are trading at Rs. 2,407. FII has increased its stake in the company from 5.07 percent in the June quarter of 2025 to 7.01 percent in the September quarter of 2025, an increase of 1.94 percent.

Power Mech Projects Limited, established in 1999 and headquartered in Hyderabad, provides comprehensive services across the power and infrastructure sectors in India and abroad. The company specializes in the erection, testing, and commissioning of power plant equipment, civil works, balance of plant, and operation and maintenance services.

Apollo Micro Systems

With a market capitalization of Rs. 9,519 crore, the shares of Apollo Micro Systems Limited are trading at Rs. 284. FII has increased its stake in the company from 7.16 percent in the June quarter of 2025 to 8.94 percent in the September quarter of 2025, an increase of 1.78 percent.

Apollo Micro Systems Limited is an Indian-based company that designs, develops, and assembles high-technology electronic and electro-mechanical systems ranging from defence to aerospace applications. The product range includes avionics modules, missile simulators, seeker electronics, launch controllers, and data acquisition, as well as electronic systems for surveillance, public transport and safety, communication, and command control systems for railways and civil aviation.

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