3 Healthcare Stocks Where Mutual Funds Increased Their Stake
3 Healthcare Stocks Seeing Rising Mutual Fund Interest: Metropolis, Aster DM & Zydus
Mutual fund allocation to the healthcare sector increased for the fourth consecutive month in August 2026, rising by 30 basis points month-on-month and 80 basis points year-on-year to 8.4%, according to Motilal Oswal Financial Services data reported by Economic Times.
The broader mutual-fund industry also witnessed strong inflows during August. Equity mutual fund inflows increased 18.8% month-on-month to Rs. 29,329 crore, while SIP contributions reached a record Rs. 32,297 crore, according to AMFI data reported by Reuters. Here are three healthcare companies that have seen increased mutual-fund participation.
1. Metropolis Healthcare
Metropolis Healthcare has seen fresh buying from Franklin Templeton Mutual Fund. The fund increased its holding in the company from 4.742% to 5.10% after acquiring 7,42,409 shares through open-market transactions. The transaction was disclosed in September 2026.
The shares of Metropolis Healthcare closed at Rs. 580.00, registering a rise by 1.31%. The company has a market capitalization of Rs. 12,046.11 crore. The stock’s 52 week high is Rs. 609.05 and its 52 week low is Rs. 412.25 . In the past 6 months the stick has delivered a return of 26.13%.
The increased institutional interest comes alongside a strong operating performance. Metropolis Healthcare reported revenue from operations of Rs. 450.2 crore in Q1 FY27, up 16.6% year-on-year from Rs. 386.1 crore. EBITDA increased 27.1% to Rs. 113.2 crore, while profit after tax rose 25.8% to Rs. 56.9 crore. EBITDA margin also expanded by 210 basis points to 25.2%.
The company said growth was driven by higher patient and test volumes, with specialty diagnostics and wellness also supporting the performance. Management has maintained a 14–15% revenue growth outlook for FY27, while targeting further improvement in EBITDA margins.
2. Aster DM Quality Care
Aster DM Quality Care has also seen substantial purchases by mutual funds. For example, in August 2026, there were 59 mutual funds that purchased stocks worth 1.11 crore and reduced the number of shares held by 16 mutual funds, making an overall net purchase of 3.86 crore shares. HDFC Focused Fund purchased 1.11 crore shares, which is equal to 1.28% of the paid up capital.
The shares of Aster DM Quality Care closed at Rs 741.20 ., registering a down by 0.01%. The company has a market capitalization of Rs. 64,608.36 crore. The stock’s 52 week high is Rs. 891.30 and its 52 week low is Rs. 519.10 .In the past 6 months the stick has delivered a return of 14.29%.
The buying followed a major transaction in August, when HDFC Mutual Fund acquired an additional 1.72% stake in Aster DM Quality Care as TPG reduced its holding.
From an operational perspective, the integrated healthcare platform recorded combined pro forma revenues of Rs. 2,597 crores for Q1 FY27, registering a 20% YoY increase. The operating EBITDA stood at Rs. 576 crores with a 30% YoY growth rate. The EBITDA margin improved by 170 basis points to reach 22.2%. The number of patients served was over 2 million, witnessing a 13% YoY
The merger of Aster DM Healthcare and Quality Care became effective on July 1, 2026, creating a larger hospital platform with more than 10,800 beds across 28 cities.
3. Zydus Lifesciences
Zydus Lifesciences has also witnessed a rise in mutual-fund ownership. Mutual-fund holding increased from 4.71% in December 2025 to 4.88% in March 2026 and further to 5.12% by June 2026.
The shares of Zydus Lifesciences closed at Rs. 1,107.50, registering a rise by 0.77%. The company has a market capitalization of Rs. 1,10,473.55 crore. The stock’s 52 week high is Rs. 1,205.00 and its 52 week low is Rs. 835.50 . In the past 6 months the stick has delivered a return of 24.24%.
The increase in institutional ownership comes despite a mixed quarterly earnings performance. Zydus Lifesciences reported Q1 FY27 revenue from operations of Rs. 8,017 crore, up 21.95% year-on-year from Rs. 6,573.7 crore. However, consolidated net profit attributable to owners declined 36% to Rs. 939.8 crore from Rs. 1,466.8 crore.
The company continued to invest heavily in future growth, spending Rs. 642 crore on research and development during the quarter and Rs. 585 crore on organic capital expenditure. Its India formulations business grew 20%, while consumer wellness revenue increased 67% year-on-year.
Why Are Mutual Funds Increasing Healthcare Exposure?
The rising allocation suggests that healthcare is receiving greater attention within institutional portfolios. The sector combines relatively defensive demand characteristics with growth opportunities from increasing healthcare spending, diagnostics penetration, hospital capacity expansion and pharmaceutical innovation.
However, high ownership of mutual funds does not necessarily signify that there will be higher returns in stocks. The fund managers can re-allocate investments according to the valuations and strategies for the companies.
For investors tracking these stocks, the key factors remain earnings growth, margins, capacity expansion, regulatory developments, valuations and the sustainability of institutional ownership.