Bajaj Holdings profit falls 22.71% as other income drops
Operating profit grew 20.28% YoY, but lower other income and a smaller tax benefit pulled down consolidated earnings.
Filed 31 Jul 2026, 15:43 IST · after market close · Bajaj Holdings & Investment Ltd (BAJAJHLDNG)
Key takeaways
- Consolidated net profit fell 22.71% YoY to Rs 2,708.08 cr as other income declined 30.47%.
- Operating margin narrowed 0.85 percentage points YoY because expenses grew 29.68% against revenue growth of 21.46%.
- Other income contributed 87.81% of pre-tax profit, making reported earnings materially dependent on non-operating income.
Price around the results
Operating growth could not offset lower other income
Consolidated revenue grew 21.46% YoY and operating profit increased 20.28%, but other income fell 30.47%, pulling pre-tax profit down 26.71%. The tax rate fell to 0.24% from 5.4%, which softened the decline in net profit to 22.71%. With other income accounting for 87.81% of pre-tax profit, earnings quality remains heavily tied to that income stream.
Margin recovered sharply from the weak March quarter
Operating margin narrowed 0.85 percentage points YoY because expenses grew faster than revenue. Sequentially, margin expanded 47.64 percentage points as revenue grew 551.35% while expenses rose 43.25%. The tax rate also increased 12.62 percentage points sequentially from a negative base, limiting the benefit to net profit from the operating rebound.
Margin remains above peers but has been volatile
Bajaj Holdings’ 86.57% operating margin was 23.56 percentage points above the 63.01% median for 41 Financial Services peers that had reported. The margin was below the 87.42% recorded a year earlier, after reaching 89.05% in Q2FY26 and falling to 38.93% in Q4FY26. This is a recovery from the March quarter rather than a consistent upward trend.
No immediate market reaction yet
The consolidated results were filed after market close, so there is no reported market reaction to this release. After the last eight results, the stock rose five times and fell three times, with a median absolute move of 0.97%. The recent reaction range included moves from -1.30% to +3.16%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹394 cr | ₹61 cr | +551.35% | +21.46% |
| Other income | ₹2,384 cr | ₹2,278 cr | +4.65% | -30.47% |
| Expenses | ₹53 cr | ₹37 cr | +43.25% | +29.68% |
| Operating profit | ₹341 cr | ₹24 cr | +1348.32% | +20.28% |
| Operating margin (%) | 86.57% | 38.93% | — | — |
| Interest | ₹0 cr | ₹0 cr | -100.00% | -100.00% |
| Depreciation | ₹11 cr | ₹8 cr | +32.54% | +32.71% |
| Profit before tax | ₹2,714 cr | ₹2,293 cr | +18.37% | -26.71% |
| Tax | ₹6 cr | ₹-284 cr | — | -96.81% |
| Net profit | ₹2,708 cr | ₹2,577 cr | +5.09% | -22.71% |
| EPS (₹) | ₹243.18 | ₹231.40 | +5.09% | -22.38% |
Operating margin of 86.57% compares with a Financial Services sector median of 63.01% across 41 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 86.57% after the rebound from 38.93% in Q4FY26.
- Whether other income remains close to its 87.81% share of pre-tax profit.
- Whether the tax rate stays near 0.24% rather than reverting toward the 5.4% year-ago level.