Bengal & Assam Company Ltd Q2 FY26 Results – ₹642 Cr Sales, ₹219 Cr PAT, and 71.7% YoY Profit Boom: When Holding Companies Hold The Mic (And The Dividends)

1.At a Glance

If you ever wondered how “old money” compounds in India without breaking a sweat — welcome toBengal & Assam Company Ltd (BACL), the JK Group’s financial umbrella that collects dividends like Indian aunties collect Tupperware. Trading at ₹7,300 per share with a market cap of ₹8,325 crore, the company is one of India’s most stealthily powerfulCore Investment Companies (CICs)registered with the RBI.

This sleepy-looking investment vault postedQ2 FY26 revenue of ₹642 crore, up8.9% YoY, and aPAT of ₹219 crore, up a spicy71.7% YoY— proving once again that it’s not just cement, tyres, or paper that make money in the JK empire… sometimes, it’s the ones that own the owners.

Despite the sluggish 3-month price return of–10.3%, the company is sitting on a juicybook value of ₹8,954 per share, making it one of the rare Indian companiestrading below bookatP/B 0.82x. A P/E of 10.2 only makes it more interesting for value nerds.

And here’s the kicker — BACL is almostdebt-free (Debt/Equity 0.05). So yes, they’re basically a big fat dividend and investment cheque collector. But make no mistake, when your holdings includeJK Lakshmi Cement,JK Tyre, andJK Paper, your “dividend income” can look like a medium-sized PSU’s entire P&L.

2.Introduction

In a market obsessed with flashy “AI for chai” startups,Bengal & Assam Company Ltdstands like a conservative Marwari uncle — rich, calm, and utterly allergic to FOMO. This is not a company that launches new apps or burns cash. It sits on ₹10,000 crore worth of group investments and quietly collects its returns.

As aCore Investment Company (CIC)under RBI regulations, it can’t run a lending business or go YOLO into crypto. Its sole job is to hold, nurture, and occasionally reshuffle investments in its sprawling family tree of JK Group firms. Think of it as theholding company equivalent of a joint family’s HUF account— but with real money and dividends instead of gold bangles.

The FY25–26 cycle has been eventful. The NCLT-approvedScheme of Arrangementinvolving Umang Dairies, Panchmahal Properties, and BACL became effective in June 2025 — making BACL a post-merger super-holding structure for multiple JK entities.

It’s hard not to admire this company’s consistency. Even when itssales have shrunk 58.9% over five years, its bottom line — thanks to strategic dividends and fair value gains — has continued to shine. Its10-year profit CAGR is 15%, and its5-year return on equitystill clocks at a proud 15%.

So, is BACL a boring stock? Absolutely. But it’s the kind of boring that gets richer every fiscal year.

3.Business Model – WTF Do They Even Do?

Let’s decode this: BACL doesn’t manufacture cement, tyres, or paper. It owns thecompanies that do. It’s aCore Investment Company, meaning its primary activity is toinvest and hold stakesin other group entities — primarily in theJK Group, one of India’s most diversified industrial empires founded back in 1918.

Here’s what sits under its golden umbrella:

• JK Lakshmi Cement Ltd– the cement beast
• JK Tyre & Industries Ltd– the rubber king
• JK Paper Ltd– the paper prince
• JK Fenner (India) Ltd– the mechanical muscle
• JK Agri Genetics Ltd– the seed scientist
• Umang Dairies Ltd– the milk magician

Nearly97% of its total assetsare in the form of investments — equity, preference shares, subsidiaries, and other group company holdings. That’s not “asset-light”; that’s “asset-full-but-does-nothing-else.”

The company’sincomemainly comes from two sources:

• Dividend income(₹102 crore in FY23 vs ₹51 crore in FY22)
• Interest income(₹6 crore in FY23 vs ₹8 crore in FY22)

In short: they earn when their cousins perform. It’s like the passive-aggressive cousin who doesn’t work but shows up to collect dividends at every family meeting.

The latest twist? Thedemerger-merger restructuringeffective June 2025 makes BACL the parent of even more assets, simplifying the group’s maze-like structure. Imagine a corporate-level spring cleaning — except they used SEBI circulars instead of brooms.

4.Financials Overview