Bajaj Holdings & Investment Ltd Q2 FY26 – ₹1,690 Cr Profit, ₹1,982 Cr Exceptional Gain, ₹65 Dividend: The Bajaj Family ATM Keeps Dispensing
1. At a Glance
When most investors pray for multibagger miracles, the Bajaj family simply collects dividends like clockwork. Bajaj Holdings & Investment Ltd (BHIL) — the parent, the patriarch, the vault — just pulled another classic power move in Q2 FY26 (Sep 2025). The company reported a consolidated net profit of ₹1,690 crore, cushioned by an exceptional gain of ₹1,982.99 crore earlier in H1 from selling part of its Bajaj Finserv (BFS) stake. If corporate India had an ATM machine, this one would have “Jamnalal Sons Pvt Ltd” engraved on it.
At a market cap of ₹1.40 lakh crore and a current price of ₹12,570, the stock trades at a P/E of 19.7 with a book value of ₹6,095 — a fair deal for what’s essentially a ₹14,000+ crore investment chest. Over the last three months, the stock has fallen 11.1%, reminding us of the Biblical line: “The Lord giveth, and the market taketh away.” Or as the Rigveda might phrase it, “That which yields steady dividends is not shaken by quarterly storms.”
Return on Equity stands at 11%, and BHIL remains virtually debt-free (₹14.6 crore). It recently paid an interim dividend of ₹65/share (650%). While the world debates AI and semiconductors, the Bajaj family quietly collects dividend cheques from their own empire.
2. Introduction
Imagine being paid billions just for being the family elder. That’s essentially Bajaj Holdings’ business model. Incorporated after the Bajaj Auto demerger, BHIL is the investment mothership of India’s Bajaj dynasty — owning 36.68% of Bajaj Auto, 41.56% of Bajaj Finserv, and 51% of Maharashtra Scooters Ltd (MSL).
This is not your typical NBFC hustling for NIMs. BHIL’s biggest challenge isn’t credit risk — it’s deciding whether to invest in its cousin’s IPO or buy more blue-chip family stock. Its quarterly reports read more like a family group chat than a financial statement: “Auto’s up, Finserv’s booming, dividend incoming, God bless us all.”
But don’t mistake it for lazy money. The company is a Systemically Important Non-Deposit NBFC, registered under RBI and compliant enough to make auditors blush. Over time, it has increased its holdings strategically, turning ₹100 in 2008 into the kind of portfolio that makes sovereign funds jealous.
In short — BHIL is the spiritual opposite of a startup. No chaos, no pivots, no funding winters. Just decades of patient compounding, family trust, and tax-efficient dividend collection.
3. Business Model – WTF Do They Even Do?
At its core, BHIL is an investment holding company. It doesn’t manufacture motorcycles, sell loans, or run hospitals — it owns the people who do. It’s like a royal landlord collecting rent from an empire of subsidiaries.
Its revenue comes primarily from:
Dividend income (~10%) – courtesy of Bajaj Auto, Bajaj Finserv, and others.
Interest income (~18%) – on treasury and debt instruments.
Profit on buyback (~65%) – a one-time booster from Bajaj Finserv share transactions.
Net gain on fair value (~2%) – marking its investments to market.
Rental & Other income (~5%) – because every balance sheet deserves pocket change.
Basically, BHIL’s operating income is pocket-sized (₹993 crore FY25), but its net profit (₹7,087 crore FY25) is skyscraper-tall — all thanks to dividends and fair value gains. It’s the rare Indian company where other income is the main income.
Or as one might joke: BHIL’s office probably has one Excel file, two coffee machines, and three billion in dividends.
4. Financials Overview
Source table
Metric (₹ Cr)
Q2 FY26 (Sep 2025)
Q2 FY25 (Sep 2024)
Q1 FY26 (Jun 2025)
YoY %
QoQ %
Revenue
397
279
325
42.2%
22.2%
EBITDA
353
233
284
51.5%
24.3%
PAT
1,690
1,510
3,504*
11.9%
-51.8%
EPS (₹)
140.08
129.06
313.27
8.6%
-55.3%
*Includes exceptional gain of ₹1,982.99 crore from Bajaj Finserv share sale.
Not bad for a company whose main business is “being related to Bajaj Auto.” YoY growth looks strong because dividend inflows and treasury gains hit rhythmically. QoQ decline is just the post-exceptional hangover.
5. Valuation Discussion – Fair Value Range (Educational)
Method 1: P/E Approach
Current EPS (TTM): ₹765 Industry P/E: 20.4 Fair Value = ₹765 × (18–22) = ₹13,770 – ₹16,830
Method 2: EV/EBITDA
EV = ₹1,38,968 Cr; EBITDA (TTM) = ₹7,776 Cr (approx.) EV/EBITDA = 17.9x Fair Range using 16–20x multiples → ₹12,400 – ₹15,500 per share
→ Educational Fair Value Range: ₹12,000–₹16,800 per share
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Q2 FY26 wasn’t just about numbers; it was a family soap opera in Excel sheets.
Exceptional Gain ₹1,982.99 Cr: BHIL booked this in H1 FY26 from selling a part of its Bajaj Finserv stake. Basically, selling shares to your cousin made you billions — relatable? Not quite.
RBI Re-categorisation: The company applied for reclassification from NBFC–Investment & Credit to Core Investment Company (CIC). Translation: “We’re done pretending to lend; we just want to hold.”
Dividend Bonanza: ₹65/share interim dividend (record date: 22 Sep 2025, paid 14 Oct 2025). If you blinked, you missed a small fortune.
Auditor Change: M/s Kalyaniwalla & Mistry LLP resigned; replaced by M/s P G Bhagwat LLP (April 2024). Every CA in Pune nodded knowingly.
Corporate Changes: Appointment of new Company Secretary from Oct 2025, ensuring compliance and coffee supply both remain uninterrupted.
Meanwhile, the passing of Madhur Bajaj (April 2025) marked the end of an era for the group’s senior leadership. The empire remains firmly in control under Rajivnayan, Sanjivnayan, and Niraj Bajaj — each with their own trusts and holdings that could confuse even SEBI’s ownership charts.
