Investment Tactics of Foreign Institutional Investors: Notable Acquisitions and Significant Divestments
In the bustling world of technology, Indian companies are making their mark, especially in the financial and healthcare sectors. Let's take a look at how some of these companies have been faring recently.
Sagility India Ltd. has been making waves in the IT sector, winning a total of 22 new projects during the June 2025 quarter. This includes 18 expansion projects from existing clients and 4 new clients. With a potential annual contract value of around ₹282 crore, Sagility is poised for growth. Interestingly, Sagility is a new entrant in the Indian IT sector, offering tech-enabled solutions and services for the US healthcare market.
Sagility's AI-led Advancements Sagility has deployed 18 AI-based use-cases for 8 different clients, and another 15 are in the pipeline. This focus on AI is paying off, with the firm's sales increasing from ₹2,357 crore in Q1FY25 to a whopping ₹3,689 crore in Q1FY26, a 56% rise. The net profit for the period grew by a massive 88% YoY, from ₹139 crore in Q1FY25 to ₹356 crore. The EPS also went up from ₹3.99 to ₹9.49 during the period.
Coforge Ltd. is another top 20 software exporter in India, boasting a solid clientele that includes British Airways, SEI Investments, SITA, ING Group, and more. However, the company's stock is trading at a PE of 62.3x, which is way higher than the industry median of 32.7x. Even the PEG ratio is at 9.54, while the industry figure is just 0.92.
Tanla Platforms Ltd., a leading Communication Platform as a Service (CPaaS) business with a 35% market share in India, has seen a more modest growth. Sales increased marginally from ₹1,002 crore in Q1FY25 to ₹1,041 crore in Q1FY26, growing 3.8% YoY. However, the net profit fell from ₹141 crore in Q1FY25 to ₹118 crore in this June quarter, declining by 16% YoY.
Despite these fluctuations, Tanla's stock is trading at a relatively low PE of 19.9x, while the industry median is 33.2x, indicating a cheap valuation of the stock.
Intellect Design Arena Ltd., another financial technology company, has been making strides with its enterprise Connected Intelligence Platform, eMACH.ai. This innovative platform has been a game-changer for the company, now used by 70% of the top banks in the world.
Shifting Investment Focus Foreign Institutional Investors (FIIs) have been net sellers of IT sector stocks, selling ₹16,483 crore worth of stocks in the June 2025 quarter and ₹33,200 crore in the current quarter. However, despite a net reduction in the broader IT sector, FIIs invested in leading IT firms because these companies are key players in cloud services and AI-optimized technologies, which are expected to significantly grow given the $200B+ data center build-out and 15-20% annual spending increases in these areas.
Tanla's Business Breakdown Tanla's enterprise communications business declined by 7.5% YoY from ₹184 crore in Q1FY25 to ₹170 crore in Q1FY26. However, its digital platforms business grew by 5.8% YoY from ₹86 crore to ₹91 crore during the period.
Stock Market Trends In a surprising turn of events, FIIs increased their stake in Intellect Design Arena Ltd. by 2.97%, taking their total holding to 27.83%. On the other hand, during the June 2025 quarter, FIIs reduced their stakes in Coforge Ltd. by 2.79% points, which took the total holding down to 37.42%, still one of the highest in the IT sector.
During the same quarter, FIIs increased their stake in Sagility India Ltd. by 2.6%, taking their total holding to 6%. Despite offloading Tanla Platforms Ltd. stock, decreasing their stakes by 3.08% points, FIIs still held 7.31% of the company at the end of Q1FY26.
In the dynamic world of technology, these companies continue to push boundaries and adapt to the ever-changing market conditions. As they innovate and grow, they are shaping the future of the IT sector in India.
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