JM Financial flags broad-based promoter selling, thin buying in Q2FY26

Broad-based promoter selling dominated the second quarter of FY26, with only a handful of companies managing to buck the trend, said JM Financial in its latest report. Within the large-cap universe, Adani Green Energy and Indus Towers were the sole exceptions, recording an uptick in promoter shareholding during the period. In sharp contrast, several marquee names such as Bharti Airtel, State Bank of India (SBI), InterGlobe Aviation, CG Power and Apollo Hospitals witnessed promoters trimming their stakes.

 

JM Financial noted that promoters typically have the strongest insight into their company’s long-term prospects. A reduction in promoter shareholding, unless driven by regulatory requirements or capital-raising plans, is often viewed negatively, while an increase is generally seen as a vote of confidence in the business outlook.

 

 

“Our thought process behind the note is that promoters know their companies best, and any increase or decrease in their holdings is a useful indicator to judge the confidence they have in the company’s prospects. We understand that changes in promoter shareholding may not necessarily be on account of buying or selling of shares and have highlighted that for select companies. The companies have been categorised as large cap, mid cap and small cap to make the data more impactful,” the brokerage said.

 

The report covers companies with a market capitalisation of over ₹4,500 crore ($500 million) and a change in promoter shareholding of more than 0.5 per cent. JM Financial pointed out that a higher proportion of promoter stake changes occurred in small-cap firms. Of the 14 companies that met the criteria and reported an increase in promoter holdings, 86 per cent were small caps. Among the 54 companies where promoters trimmed their stakes, 78 per cent were small caps.  “The fact that significantly more promoters are selling than increasing their stake suggests the market is expensive and promoters are ‘cashing in’ on years of hard work,” JM Financial observed.

Companies with rising promoter holding

Among large caps, Adani Green Energy posted a 0.5 per cent rise in promoter shareholding, while Indus Towers also recorded an increase during 2QFY26. In the small-cap segment, Nazara Technologies reported a notable jump in promoter stake following the reclassification of certain public shareholders as promoters. Poonawalla Fincorp saw a 1.5 per cent rise after issuing new shares to the promoter group, while Paradeep Phosphates registered a 1.2 per cent increase.

Companies with falling promoter holding

The report captured declines in promoter holdings across five large caps, seven mid caps and 42 small caps. In the large-cap bucket, Bharti Airtel’s promoter stake fell by 1 per cent due to a block deal. SBI recorded a 1.9 per cent decline following its July QIP, while InterGlobe Aviation saw a 2 per cent reduction, also from a block deal. CG Power reported a 1.7 per cent fall owing to its July QIP, and Apollo Hospitals posted a 1.3 per cent drop driven by a block deal.

 

Among mid caps, Polycab India saw a 1.5 per cent decline due to a block deal, Gujarat Fluoro reported a 1.2 per cent reduction following its July QIP and KPR Mill recorded a 1.2 per cent drop. In the small-cap category, several companies saw reductions exceeding 0.5 per cent, including Navin Fluorine after its July QIP and Dr Lal PathLabs with a 0.6 per cent fall. Amber Enterprises posted a 1.4 per cent decline following a September QIP, Bandhan Bank saw a 0.6 per cent drop and Bikaji Foods reported a 1 per cent reduction due to a block deal.  Further, Five-Star recorded a 2.9 per cent decline, Devyani International saw a 1.2 per cent reduction, and Anupam Rasayan’s promoter stake fell by 2.1 per cent. V-Guard posted a 1 per cent decline, while Syrma SGS saw the steepest fall at 3.5 per cent following its August QIP.

 

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