Promoters Reduce Stakes in 48 NIFTY 500 Companies in Q1FY26

Summary

Promoters of 48 companies within the NIFTY 500 index have steadily reduced their shareholdings over the past four quarters, according to data from Ace Equity. Notable companies include industry giants like Reliance Industries, Mahindra & Mahindra, Bharti Airtel, Wipro, and Eicher Motors. While such reductions may raise questions about promoter confidence, experts suggest they could be part of strategic financial planning or regulatory requirements.

Promoters of 48 companies from the NIFTY 500 index have been consistently lowering their holdings in their companies since the last four quarters. | Image: Shutterstock

Key Highlights

• Reliance Industries: Promoter shareholding dipped slightly to 50.07% in Q1 FY26 from 50.11% in the prior quarter and 50.33% in Q1 FY25.

  
  

• Mahindra & Mahindra: Promoter stake fell to 18.44% in Q1 FY26, down from 18.45% in Q4 FY25 and 18.56% in Q1 FY25.

  
  

• Bharti Airtel: Promoter holding decreased to 51.25% in Q1 FY26 from 53.17% in Q1 FY25.

  
  

• Wipro: Promoter stake reduced to 72.66% in Q1 FY26 from 72.82% in Q1 FY25.

  
  

• Significant Reductions: Companies like 360 One WAM (6.27% from 15.79%) and HFCL (31.58% from 37.63%) saw sharp declines in promoter holdings compared to Q1 FY25.

  
  

Banking Sector Trends

Promoters in major banks also trimmed their stakes:

• Axis Bank: Promoter holding dropped to 8.17% in Q1 FY26 from 8.31% in Q1 FY25.

  
  

• IndusInd Bank: Promoter stake fell to 15.82% from 16.38% in the same period, amid corporate governance concerns following the resignation of its MD and CEO, Sumant Kathpalia, due to issues in the bank’s derivatives portfolio.

Analyst Insights

Shivam Verma, Head of Investment Research, notes that a reduction in promoter shareholding is not inherently negative. It may reflect strategic moves such as portfolio diversification, raising capital for new ventures, or meeting regulatory requirements. Investors should evaluate these changes in context, considering the company’s fundamentals and market conditions.

Table of Promoter Stake Changes

Company Name	Promoter Holding in Q1FY26 (%)	Promoter Holding in Q1FY25 (%)
E.I.D. - Parry (India)	41.54	42.23
HFCL	31.58	37.63
Lupin	46.90	46.98
Reliance Industries	50.07	50.33
Patanjali Foods	68.83	72.81
Mahindra & Mahindra	18.44	18.56
Zensar Technologies	49.06	49.17
Eicher Motors	49.07	49.11
Coromandel International	56.90	57.31
JB Chemicals & Pharmaceuticals	47.73	53.77
Wipro	72.66	72.82
Cholamandalam Investment	49.90	50.33
Mastek	35.95	36.25
KFin Technologies	22.90	33.06
Mphasis	40.10	40.35
Marico	59.03	59.28
IndusInd Bank	15.82	16.38
Axis Bank	8.17	8.31
Bharti Airtel	51.25	53.17
Oracle Financial Services Software	72.56	72.71
Motilal Oswal Financial Services	67.80	69.04
V-Guard Industries	54.28	54.42
Chalet Hotels	67.40	67.52
Nuvama Wealth Management	54.73	55.68
HDFC Asset Management Company	52.44	52.52
Nippon Life India Asset Management	72.25	72.66
Angel One	28.97	35.63
ICICI Prudential Life Insurance Company	72.96	73.18
Aditya Birla Fashion and Retail	46.57	51.97
Tejas Networks	53.73	55.50
Dixon Technologies (India)	28.95	33.24
Polycab India	63.01	65.02
ICICI Lombard General Insurance Company	51.46	51.81
Lodha Developers	71.90	72.13
L&T Finance	66.16	66.37
Aadhar Housing Finance	75.50	76.48
Eris Lifesciences	54.83	54.88
Kirloskar Oil Engines	41.13	41.18
360 One Wam	6.27	15.79
Affle 3i	55.00	55.14
Home First Finance Company India	12.43	23.45
Aditya Birla Capital	68.76	68.98
Tube Investments of India	44.09	45.04
Intellect Design Arena	29.87	30.26
AU Small Finance Bank	22.85	22.92
SBFC Finance	53.19	55.19
Go Digit General Insurance	73.10	73.58
Sapphire Foods India	26.07	30.82

Source: Ace Equity

Conclusion

The consistent reduction in promoter stakes across 48 NIFTY 500 companies signals a trend that investors should monitor closely. While some reductions are marginal, others, like those in 360 One WAM and HFCL, are more significant and may warrant deeper analysis. Investors are advised to assess these changes alongside other financial metrics to make informed decisions.