Promoter Increasing Stake: 5 Stocks Where Promoters Have Increased Their Stake; What it Means for Investors?

When promoters put their own money back into the business, it tends to catch the market’s attention and for good reason. In an environment where quarterly numbers can be volatile and narratives change overnight, promoter stake increases stand out as a quieter, more deliberate signal. Unlike buybacks or headline-grabbing announcements, this is a decision made with full visibility into the company’s long-term prospects. Promoters are rarely sentimental buyers; when they increase their holding, it usually reflects conviction that the business is undervalued or that the next phase of growth is being underestimated by the market.

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Why Promoters Increase Their Stake Matter to Investors?

Because promoter buying aligns interests. A higher promoter stake means greater skin in the game, tighter control over capital allocation and a stronger incentive to drive sustainable earnings growth rather than short-term optics.

Historically, many stocks that delivered meaningful wealth creation did so after a period when promoters quietly raised their ownership, well before the broader market caught on. That said, promoter buying is not a guarantee of returns, it is a starting point. The real edge comes from identifying why the stake is being increased, whether it is backed by improving fundamentals, and whether minority shareholders stand to benefit from the same growth runway.

Against this backdrop, tracking changes in promoter shareholding on a quarter-on-quarter basis becomes a useful exercise. These incremental increases often disclosed quietly in shareholding patterns can offer early clues into how insiders are positioning themselves.

In this blog, we look at stocks where promoters have raised their stake in the latest quarter, indicating a higher level of commitment at current valuations and providing investors with a focused starting point for deeper fundamental analysis.

Here’s is the list of stocks where promoters have increased their stake:

Overview of Companies Where Promoters Have Increased Their Stake on QoQ Basis

Nazara Technologies

Nazara Technologies Limited is a listed gaming company, with a growing presence across North America, the UK, Europe, and the Middle East. The Company operates high quality IPs across online and offline gaming catering to millions of users across age groups and geographies, along with presence in Sports Media, eSports and Adtech. With a portfolio of marquee brands, including Kiddopia, Animal Jam, World Cricket Championship, Sportskeeda, and Nodwin Gaming, and recent acquisitions such as Fusebox Games, Funky Monkeys, Curve Games and Smaaash, Nazara continues to scale its global capabilities. It operates through wholly owned and strategically aligned entities, creating opportunities for cross-platform growth, operational synergies, and sustained innovation across both digital and experiential gaming formats.

As per September 2025, shareholding pattern, promoter holding has increased to 35.45% from 8.30% in June 2025. The surge in promoter holding could be attributed to the fact that there was a reclassification of certain shareholders as "promoters." Strategic investors or certain holding entities (e.g. Plutus Wealth, Axana Estates etc.) have been re-classified into promoter groups in the shareholding pattern.

SML Mahindra

SML Mahindra Limited (formerly SML Isuzu Limited) is a commercial vehicle OEM with a healthy market position in the school bus segment. It operates in the LCV and medium CV (MCV) segments of the automobile industry and has a product portfolio of buses, trucks (including tippers) and specific application vehicles. The company has a manufacturing facility at Nawanshahar, Punjab, with a production capacity of around 24,000 units per annum.

In the year 2025, M&M has acquired a controlling stake of 58.96% in SML through share purchase agreements. This includes the transfer of 43.96% equity from Sumitomo, Japan, and 15% from Isuzu, Japan, making SML a subsidiary of M&M, with effect from August 1, 2025. As a result, the promoter stake as per quarter ended September 2025, increased to 58.96% from 43.96% in the previous quarter.

Piramal Finance

Founded by Mr Ajay Piramal, Piramal Finance Limited (PFL), identified as an Upper Layer NBFC, had the housing finance company licence earlier. It had sought conversion of its HFC licence into a non-banking financial institution–investment and credit company licence from the Reserve Bank of India. On April 04, 2025, PFL received certificate of registration to commence the business of NBFC-ICC without accepting public deposits. PFL thereafter continued to operate as an NBFC.

In the financial services business, the company focuses on providing retail loan products such as home loans, loans against property, used car loans, personal loans and small business loans. It also provides wholesale loans with focus on both real estate and non-real estate sectors.

Cupid

Established in 1993, Cupid Limited, India's premier manufacturer and brand of male and female condoms, water based personal lubricants, IVD kits, deodorants, perfumes, almond hair oil, body oils, petroleum jelly and other FMCG Products. The company operates with a strong commitment to public health and well being, maintaining ethical business practices aligned with international standards. In alignment with its strategic growth plans, the company has recently expanded its product offerings to include Fast-Moving Consumer Goods (FMCG) such as fragrance products (Eau De Perfumes, Deodorants, Pocket Perfumes), personal care items (Toilet Sanitizers, Hair & Body Oils, Hair Removal Sprays, Face Wash), and other wellness solutions.

Cupid currently exports its products to over 110 countries, with a substantial portion of its revenue generated from international markets. Promoters have increased their stake from 42.51% as of quarter ended June 2025 to 45.56% as of quarter ended September 2025.

Poonawalla Fincorp

Incorporated as Magma Leasing Ltd, the company commenced its operations in 1989. The company was renamed to Magma Fincorp Limited in 2008 and Poonawalla Fincorp (PFL) in 2021 post the acquisition by Rising Sun Holdings Private Limited (an entity owned and controlled by Mr. Adar Poonawalla). PFL's financial services offerings include preowned car finance, personal loans, loans for professionals, business loans, loans against property, machinery loans, education loans, commercial vehicle loans, shopkeeper loans, gold loans, and Consumer durable loans.

As per the shareholding pattern of September 2025, promoters held 63.96% up from 62.46% as of the quarter ended June 2025.

Conclusion: Read the Reason, Not Just the Surge in Stake

An increase in promoter stake is often seen as a positive signal, yes, it is a positive signal, but the real insight lies in understanding why the stake has gone up. Not every rise in promoter holding reflects fresh conviction or open-market buying. In several cases, the change is driven by reclassification of shareholders into the promoter group, etc.

This distinction matters. A reclassification-led increase may improve ownership clarity or consolidate control, but it does not automatically imply that promoters are deploying fresh capital at current market prices. On the other hand, open-market purchases or preferential allotments funded by promoters reflect a far stronger signal of confidence in the company’s future prospects.

For market participants, the takeaway is simple: look beyond the headline number. Read exchange disclosures, scheme documents, and shareholding notes to identify whether the increase stems from structural changes or genuine buying intent. Only then can promoter stake movement be interpreted correctly as a governance-led reshuffle or as a conviction-driven bet on long-term growth.