Bajaj Holdings profit rises as other income offsets operating slump
Net profit benefited from higher other income and a tax credit, while operating margin fell sharply for a second straight quarter.
Filed 07 May 2026, 18:39 IST · after market close · Bajaj Holdings & Investment Ltd (BAJAJHLDNG)
Key takeaways
- Consolidated net profit rose 47.19% year on year to Rs 2,576.96 cr despite a 77.15% drop in operating profit.
- Other income contributed 99.33% of pre-tax profit, making the quarter's earnings heavily dependent on non-operating income.
- Operating margin fell 32.09 percentage points year on year to 38.93%, placing it 20.48 percentage points below the 52-peer sector median.
Price around the results
Other income carried the quarter
Consolidated revenue fell 58.32% year on year and 78.94% sequentially, while operating profit declined 77.15% and 90.44%, respectively. Net profit still rose 47.19% year on year and 27.68% sequentially because other income increased 34.38% year on year and 23.40% sequentially. Other income accounted for 99.33% of pre-tax profit, so reported earnings were largely driven outside operations.
Operating margin fell to a two-year low in the trend
Costs fell less than revenue in both comparisons, with expenses down 12.16% year on year and 9.81% sequentially, so operating margin narrowed by 32.09 percentage points year on year and 46.81 percentage points sequentially. The margin had risen from 87.42% in Q1FY26 to 89.05% in Q2FY26 before declining to 85.74% in Q3FY26 and 38.93% in Q4FY26. The margin was 20.48 percentage points below the 59.41% median for 52 reported Financial Services peers.
Tax credit amplified profit growth
The tax rate moved from 2.15% in Q4FY25 to -12.38% in Q4FY26, a 14.53-percentage-point decline, while interest expense fell 64.86%. The negative tax rate indicates a tax credit in the quarter, adding to the gap between the sharp operating-profit decline and the rise in net profit.
The initial market move was modest, then turned negative
The results were filed after market close on 7 May 2026. The stock gained 0.33% on the first session after the filing but was down 2.73% after five sessions and 3.09% after 15 sessions. Its six most recent post-result moves ranged from -1.30% to +3.16%, with a median absolute move of 0.97%; the five-session decline was therefore larger than its usual reaction.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹61 cr | ₹288 cr | -78.94% | -58.32% |
| Other income | ₹2,278 cr | ₹1,846 cr | +23.40% | +34.38% |
| Expenses | ₹37 cr | ₹41 cr | -9.81% | -12.16% |
| Operating profit | ₹24 cr | ₹247 cr | -90.44% | -77.15% |
| Operating margin (%) | 38.93% | 85.74% | — | — |
| Interest | ₹0 cr | ₹0 cr | -35.00% | -64.86% |
| Depreciation | ₹8 cr | ₹8 cr | +0.13% | -5.44% |
| Profit before tax | ₹2,293 cr | ₹2,084 cr | +10.03% | +28.16% |
| Tax | ₹-284 cr | ₹66 cr | — | — |
| Net profit | ₹2,577 cr | ₹2,018 cr | +27.68% | +47.19% |
| EPS (₹) | ₹231.40 | ₹181.20 | +27.70% | +49.29% |
Operating margin of 38.93% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.33% | +0.95% |
| Next session | -1.62% | — |
| 5 sessions | -2.73% | +0.08% |
| 15 sessions | -3.09% | — |
| 30 sessions | +2.81% | — |
Volume on the results session was 1.61× its 20-day average.
What to watch
- Whether operating margin recovers from 38.93% after two consecutive quarterly declines.
- Whether other income remains the main earnings driver after contributing 99.33% of pre-tax profit.
- Whether the tax rate moves back from -12.38% after the quarterly tax credit.