01 — At a Glance
The Bajaj Family’s Portfolio in a Stock Wrapper
- 52-Week High / Low₹14,873 / ₹10,400
- TTM Revenue₹1,154 Cr
- TTM PAT₹7,355 Cr
- Full-Year EPS (TTM)₹790.00
- Q3 FY26 EPS₹181.16
- Book Value₹6,095
- Price to Book1.73x
- Dividend Yield0.88%
- Debt / Equity0.00x
- Return (1-Year)-10.3%
Auditor’s Opening Note: Bajaj Holdings is less a company and more a holding company masquerading as one. TTM PAT of ₹7,355 crore includes ₹8,599 crore in “other income” — the investment portfolio’s gains, dividends, and mark-to-market adjustments. Strip that out, and operating profit is barely ₹987 crore. The Q3 result showed ₹2,018 crore PAT with exceptional gain of ₹1,983 crore from selling 1.04 crore Bajaj Finserv shares. This is a portfolio company that happens to be listed. P/E of 16x is fair only if you’re confident the portfolio keeps printing gains. If not, you’re paying for a holding company earning 9.8% ROCE.
02 — Introduction
The Bajaj Family’s Greatest Hit: Owning Other Bajaj Companies
In December 2024, the Bajaj family did something mathematically clever and operationally bizarre — they demerged Bajaj Auto Limited. The manufacturing arm (vehicles, two-wheelers, three-wheelers) went to a new Bajaj Auto. The financial services (Bajaj Finserv, Bajaj Finance, wind farms) went to Bajaj Finserv. Everything else — the family’s historical investments, real estate, cash, and strategic positions — stayed in Bajaj Holdings & Investment Ltd.
Why? Because Bajaj Holdings now owns 36.68% of Bajaj Auto and 41.53% of Bajaj Finserv. It’s a holding company that collects dividends from subsidiaries and occasionally sells equity to fund new acquisitions. Think of it as the Bajaj family’s personal investment portfolio, except it’s traded on the stock exchange and taxed as a company.
The Q3 FY26 results (ended December 31, 2025) dropped in February 2026, and they were a study in calculated portfolio management. Profit of ₹2,018 crore, but ₹1,983 crore came from selling Bajaj Finserv shares. Meanwhile, the board approved acquisition of 17.56% stakes in Bajaj General Insurance and Bajaj Life Insurance for ₹16,330 crore, with completion by July 31, 2026. The Allianz exit. The Bajaj consolidation. It’s chess, played very slowly.
The Demerger Setup (Dec 2024): BHIL holds 36.68% of BAL, 41.53% of BFS, and 51% of Maharashtra Scooters. This is not operating leverage. This is portfolio concentration with style.
03 — Business Model: We Own Stuff. That’s It.
A Holding Company That Forgot to Operate
Bajaj Holdings does not make two-wheelers. Does not provide insurance or fintech. Does not run wind farms. Instead, it holds equity stakes in companies that do all of the above, collects dividends from those stakes, invests the proceeds in fixed income securities, and occasionally realizes capital gains by selling portions of those stakes.
Revenue is dominated by “other income” — a euphemism for investment returns. TTM revenue of ₹1,154 crore breaks down as: ~18% interest income (from bonds and debentures), ~10% dividend income (from subsidiary stakes), ~65% profit on buyback of equity shares (from selling portions of holdings), and ~2% net gain on fair value changes. Translation: BHIL makes money by holding, not by doing.
Its investment portfolio stands at ~₹73,808 crore at market value (as of Sept 2025). Bajaj Auto alone (at current market cap) represents ~₹77,000 crore of value, and BHIL owns 36.68% of it. Bajaj Finserv adds another ~₹297,000 crore market cap, with BHIL at 41.53%. The portfolio is concentrated, illiquid in some portions, and entirely dependent on the continued success of group companies.
The real question: Is BHIL a wealth manager charging itself a fee, or a strategic holding company? Management’s answer is both. Investors are unsure.
04 — Financials Overview: Q3 FY26
The Exceptional Gains, The Real Numbers, And The Lies We Tell Ourselves
Result type: Quarterly Results (Q3 FY26) | Q3 FY26 EPS: ₹181.16 | Annualised EPS (Q3×4): ₹724.64 | TTM EPS: ₹789.55
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue (Other Income) | 1,846 | 1,694 | 1,630 | +9.0% | +13.2% |
| Operating Profit | 247 | 96 | 353 | +157.3% | -30.0% |
| OPM % | 13.4% | 5.7% | 21.7% | +770 bps | -830 bps |
| PAT (incl. Exceptional) | 2,018 | 1,750 | 3,504 | +15.3% | -42.4% |
| Exceptional Items | ~1,846 | ~1,694 | ~3,150 | — | — |
| PAT (Normalized) | ~172 | ~56 | ~354 | — | — |
| EPS (₹) | 181.16 | 157.09 | 313.27 | +15.3% | -42.2% |
The Exceptional Elephant in the Room: Q3 included a gain of ₹1,983 crore from selling 1.04 crore Bajaj Finserv shares at ₹1,906 per share. Q2 included ₹3,150 crore exceptional gains (FX-related and investment profits). Strip out exceptional items, and normalized PAT is ₹172 crore (Q3) and ₹354 crore (Q2). The normalized operating margin is struggling — between 3-4% of other income. This is not a growth story. This is a sale story. Management is systematically pruning the investment portfolio to fund the Allianz acquisition.
05 — Valuation Discussion: The Holding Company Discount
What’s A Portfolio Company Worth When It Mostly Sells Its Holdings?
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