The numbers landed after market close on Tuesday, but the market took its sweet time digesting them. Schaeffler India’s bottom line swelled to ₹349 crore for the September quarter, a 20.7% leap from ₹289 crore a year ago. Revenue climbed 26.9% to ₹3,089.4 crore, outpacing the previous year’s ₹2,434.6 crore. Yet, the stock didn’t celebrate. By 9:38 am on Wednesday, October 28, shares sat 0.3% in the red at ₹3,659.9 on NSE, reflecting a cautious mood among traders.
The culprit? Margins. EBITDA rose 17.8% to ₹537 crore, but the margin percentage slid to 17.4% from 18.7%. Management cited rising input costs and a weak rupee as the primary drags, noting that mitigation measures only partially offset the pressure. Despite this, the company noted strong automotive demand and double-digit growth in both exports and domestic business. It’s a classic growth-at-cost scenario that often leaves value investors scratching their heads.
There’s a bigger whale in the room, however. Promoters, who held a 74.13% stake as of end-September, hinted they might monetize a small slice of their holding. Crucially, they reiterated their intent to retain majority control, maintaining at least two-thirds ownership. This statement adds a layer of uncertainty. Will they sell? How much? And at what price? The market is watching.
Context matters. The stock is already under pressure, down 7.5% in the past month and 14.6% over six months. It sits 17% below its 52-week high of ₹4,467.7. With the promoter stake sale possibility looming, the next few weeks could be volatile. Keep an eye on any further regulatory filings or announcements from the promoter group.