Whirlpool Of India Shares Slide Over 11%, Block Deal Of 1.5 Crore Shares Sparks Sharp Market Reaction

Mumbai: Whirlpool of India saw its shares drop sharply by 11 percent on Thursday, November 27, after a massive 1.5 crore shares—equal to 11.8 percent of the company’s equity—were traded through a block deal. The stock fell to around Rs 1,076.8 in early trade. This decline follows a month in which the stock has already lost 22.6 percent, and a year where the total fall now stands at over 40 percent.

Promoter Stake Strategy Fuels Uncertainty

The block deal comes at a time when Whirlpool Mauritius, the promoter entity, has been consistently reducing its stake. At the end of the September quarter, the promoter held 51 percent, after selling 24 percent in a large Rs 5,000-crore block deal in February 2024. Earlier this year, the parent company announced a long-term plan to cut its holding from 51 percent to about 20 percent.

In its latest corporate update, the parent confirmed that this stake reduction will likely be completed by the first half of 2026. Investors worry that repeated stake sales indicate a long-term shift in the promoter’s commitment, adding pressure to the stock.

Weak Earnings Add to Selling Pressure

The company’s recent financial performance has not helped sentiment. Whirlpool of India reported a 20.6 percent drop in net profit for the September quarter, falling from Rs 52 crore last year to Rs 41 crore. Revenue also slipped 3.8 percent to Rs 1,647 crore. Operational performance weakened further, with EBITDA plunging 33.8 percent to Rs 57.6 crore versus Rs 87 crore a year earlier. The EBITDA margin contracted to just 3.5 percent, down from 5 percent, reflecting higher costs and weaker demand.

With a major block deal, declining promoter stake, and subdued quarterly numbers, investors reacted strongly, leading to a sharp fall in share price despite the company’s efforts to stabilise performance.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investments in stocks carry risks. Please consult a qualified financial advisor before making any investment or trading decisions.