Bajaj Holdings Q1 FY27 Results (NSE: BAJAJHLDNG)
Signal: Earnings declined
The read
Consolidated PAT declined 22.3% YoY entirely because Q1FY26 contained a ₹1,522 Cr exceptional gain on sale of Bajaj Finserv shares (standalone had ₹1,983 Cr). Excluding that, operating profit before tax grew 23.3% YoY and share of associate profits rose 24.6% YoY — the underlying earnings trajectory from associates remains strong. EBITDA margin improved 150bps YoY on cost discipline. The standalone holding company's profit is dominated by dividend income and associate earnings rather than operating leverage.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹394.33 Cr | 21.5% | -63.1% |
| EBIT | ₹355.77 Cr | 23.3% | |
| Net profit | ₹2,708.08 Cr | -22.3% | |
| EPS | ₹243.18 | -22.4% | |
| EBIT margin | 92.9% |
P&L walk
Operating income rose 21.5% YoY to ₹394 Cr, driven by higher dividend income (₹348 Cr vs nil in Q1FY26) and net gain on fair value changes; EBITDA margin expanded 150bps YoY to 92.9% as employee costs declined 12.6%. However, PAT fell 22.3% YoY because Q1FY26 included a ₹1,522 Cr exceptional gain on sale of Bajaj Finserv shares — absent this quarter. Share of associate profits grew 24.6% YoY to ₹2,359 Cr, supporting the bottom line.
Segments
Single segment — investments. The consolidated result is substantially the sum of standalone income plus share of associate profits (₹2,359 Cr, +24.6% YoY from Bajaj Auto and Bajaj Finserv).
Key positives
- Revenue from operations grew 21.5% YoY to ₹394 Cr, driven by dividend income of ₹348 Cr.
- EBITDA margin expanded 150bps YoY to 92.9% as employee costs declined 12.6% YoY.
- Share of associate profits rose 24.6% YoY to ₹2,359 Cr, reflecting strong earnings from Bajaj Auto and Bajaj Finserv.
Key concerns
- Consolidated PAT fell 22.3% YoY due to absence of prior year's ₹1,522 Cr exceptional gain on sale of Bajaj Finserv shares.
- Standalone PAT crashed 83.1% YoY for the same reason; excluding the exceptional, pre-exceptional PBT was ₹349 Cr vs ₹260 Cr in Q1FY26 — a 34% rise, but the earnings base is lumpy.
- Revenue QoQ dropped 63.1% as Q4FY26 had one-time large income items.
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