1. At a Glance – The Comeback Kid With a Dividend Cannon
Majestic Auto Ltd is currently trading at ₹437, commanding a market cap of ₹455 crore. In the last 3 months, the stock is up 25.7% — not bad for a company whose quarterly sales just crashed 80% YoY. Yes, you read that right.
Q3 FY26 numbers show sales of ₹3.40 crore, but PAT came in at ₹5.45 crore. How? Welcome to the land of “Other Income”.
The company declared a special interim dividend of ₹35 per share after posting Q3 results. ROCE stands at 4.05%, ROE at a sleepy 1.11%, but debt-to-equity is just 0.02. Almost debt-free. And it’s trading at 0.64x book value.
Oh, and consolidated TTM EPS is ₹83.2. But wait till you see how much of that is rental business and how much is financial fireworks.
Curious? Good. Let’s open the file.
2. Introduction – From Mopeds to Office Leases
Majestic Auto was born in 1973 making mopeds. Somewhere along the way, it looked at the two-wheeler business and said, “Nope. Too much hard work.”
Today, it is officially in the business of leasing commercial real estate and providing facility management services.
Translation: They own properties. They rent them out. They collect rent. They also manage facilities — cleaning, maintenance, workplace management — the boring but stable stuff.
But here’s the twist.
A big chunk of earnings in recent years hasn’t come from rental operations alone. It has come from:
- Selling subsidiaries
- Selling property
- Other income
- Investments
This is not a pure rental REIT-style machine. It’s more like a real estate landlord who occasionally sells a building and celebrates like he won a lottery.
So the big question is:
Are we looking at a steady rental income story… or a one-time monetisation cycle?
Let’s dig.
3. Business Model – WTF Do They Even Do?
Originally an automobile component manufacturer, Majestic Auto reinvented itself.
Current Revenue Mix (FY23)
- Rental Income ~55%
- Real estate & management services ~26%
- Dividend income ~14%
- Interest income ~3%
- Others ~2%
So half the income is rental. The rest is financial juggling.
They operated through a subsidiary, Emirates Technologies Pvt Ltd (ETPL), which developed IT parks in Noida under “Knowledge Boulevard”. In 2025, they sold 80% stake in ETPL for ₹196 crore.
Cash came in. EPS exploded.
They also entered agreements to sell properties — including Ludhiana land for ₹2,500 lakhs.
So what’s the core business?
Owning commercial property.
Leasing it.
Managing it.
Occasionally selling it.
Simple model.
But revenue consistency? That’s another story.
If sales are just ₹3.4 crore in Q3… is this a rental machine or a dividend-distribution machine?
4. Financials Overview – Q3 FY26
EPS Data
