Majestic Auto Ltd H1 FY26: ₹196 Cr Subsidiary Sale, ₹76 Cr Profit, and the Curious Case of a Once-Moped Maker Turning into a Real Estate Tycoon

1. At a Glance

Majestic Auto Ltd (BSE: 500267), once a proud manufacturer of mopeds and automobile components, is now living its best real-estate life. With a market cap of ₹359 crore and a stock price lounging around ₹345, this ex-auto warrior has shifted gears from grease and engines to granite and leases. The company’s H1 FY26 results are nothing short of dramatic — a ₹76.14 crore quarterly profit powered by the ₹196 crore sale of its subsidiary, Emirates Technologies Pvt Ltd (ETPL).

Return on equity? Barely 1.11%. ROCE? 4.05%. But hey — who needs operational efficiency when you can sell subsidiaries like hot property? The stock trades at a 34x P/E, at just half its book value (₹678), and even rewards loyal shareholders with a 2.9% dividend yield — a rare treat in this dusty corner of the BSE.

Majestic Auto has officially traded its wrenches for rent rolls. Its quarterly sales are ₹13.1 crore, down 18.8% YoY, but the profit jumped nearly 9%. The story here isn’t about pipes and pistons anymore — it’s about property and passive income.

If there was a “From Mopeds to Malls” business category, this company would be the poster child.

2. Introduction

Once upon a time, Majestic Auto Limited (MAL) was known for mopeds zooming through Indian streets like buzzing dragonflies. Fast forward to 2025 — those wheels have stopped spinning, and now the company’s assets do all the running for it. From making auto parts to leasing corporate real estate, this metamorphosis would make even Kafka nod in approval.

Headquartered in Ludhiana, the Munjal family-backed entity has slowly pivoted to leasing and facility management. Instead of exhaust pipes, it now manages office pipelines — of tenants. The company rents out premium office spaces, maintains facilities, and occasionally cashes in with property sales.

Its journey mirrors India’s industrial nostalgia: from manufacturing dreams to monetising landbanks. The recent ₹196 crore sale of its ETPL subsidiary added a turbocharger to its half-yearly profit. Imagine making more money selling your side business than from your main one — that’s Majestic Auto’s new normal.

And investors? They seem to be in two minds — the ones who remember the mopeds are sentimental; the ones who love dividends are smiling. The rest? They’re waiting for the next land deal to drop.

3. Business Model – WTF Do They Even Do?

Majestic Auto’s business today can be summed up as: “We don’t make engines anymore; we lease spaces where others do.”

The company earns from:

• Facility Management Services:Think of them as glorified landlords with housekeeping skills. MAL handles planning, design, lease, maintenance, catering, HR, ICT, and even accounting support for offices.
• Leasing Business:Conducted through its ex-subsidiary ETPL, which developed IT parks (like Knowledge Boulevard in Noida). The leasing arm was the company’s golden goose — until it was sold in FY26 for ₹196 crore.
• Dividend & Interest Income:When your business doesn’t need factories, you let your money work. Dividend income formed 14% of FY23 revenue, and interest another 3%.

Post-sale of ETPL, Majestic Auto is now more of an asset-management mini-REIT than a manufacturing company. It’s the corporate version of a retired uncle living off rent and dividends — financially stable but not particularly energetic.

And yet, it works.

4. Financials Overview

Let’s dig into the Q2 FY26 numbers — this is where the drama unfolds.

Interpretation:The EPS spike is basically the financial equivalent of a Bollywood cameo — short, flashy, and caused by the ₹196 crore ETPL sale. Without that extraordinary item, operational growth remains soft.

Still, an 8x profit jump grabs headlines — even if it’s a one-time windfall.

5. Valuation Discussion – Fair Value Range (Educational Purpose Only)

Method 1: P/E ValuationCurrent EPS = ₹75.1 (TTM).Industry P/E = 23.6.So,Fair Value