💰 Financial Performance

Revenue Growth by Segment

Consolidated income reached INR 747 Cr in H1 FY26, while the share of profits from associates grew 22.7% to INR 3,511 Cr. Key associate Bajaj Auto saw turnover grow 12% to INR 28,306 Cr, and Bajaj Finserv income increased 12% to INR 72,854 Cr, reflecting strong performance across both automotive and financial services segments.

Geographic Revenue Split

Not specifically disclosed for BHIL consolidated income; however, associate Bajaj Auto reported record domestic revenue and growth in exports across all global regions, indicating a well-diversified geographic base for its primary underlying value drivers.

Profitability Margins

Consolidated Profit After Tax (PAT) increased 65.6% to INR 5,046 Cr in H1 FY26 from INR 3,047 Cr in H1 FY25. Excluding a one-time profit of INR 1,522 Cr from the sale of Bajaj Finserv shares, adjusted PAT grew 20.3% to INR 3,665 Cr, demonstrating healthy underlying profitability from core associate holdings.

EBITDA Margin

Associate Bajaj Auto registered an excellent EBITDA margin of 20.5% in Q2 FY26, driven by a favorable product mix toward premium motorcycles and commercial vehicles, which grew at double-digit rates.

Capital Expenditure

Standalone capital expenditure for property, plant, and equipment was minimal at INR 0.02 Cr in H1 FY26, as the company's primary function is investment holding; however, its associates continue to invest in EV capacity and financial technology platforms.

Credit Rating & Borrowing

Not disclosed in available documents; however, the group maintains a strong liquidity position with surplus funds of INR 14,244 Cr at the Bajaj Auto level as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Bajaj Auto utilizes steel, aluminum, rubber, plastics, and lithium-ion cells for its vehicle range, including the Pulsar and Chetak brands. These materials are critical for maintaining production volumes and managing cost structures.

Import Sources

Not specifically disclosed, but EV components and lithium-ion cells for the Chetak portfolio are typically sourced from global markets like China, while traditional materials like steel and aluminum are primarily sourced domestically.

Capacity Expansion

Bajaj Auto is actively scaling its electric vehicle (Chetak) and electric commercial vehicle portfolios to meet growing demand, though specific unit capacity targets are not detailed in the reports.

Raw Material Costs

Raw material costs for the standalone entity were INR 0.19 Cr, but the primary impact is at the associate level where Bajaj Auto's 20.5% EBITDA margin suggests effective cost management despite commodity price fluctuations.

Manufacturing Efficiency

Bajaj Auto's EBITDA growth of 19% vs turnover growth of 12% in H1 FY26 indicates superior manufacturing efficiency and the ability to extract higher value from its premium product range.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved by acquiring a larger stake in the insurance JVs (up to 19.95% from Allianz), scaling the Bajaj Finance loan book (which grew 24% in H1 FY26 to 25.7 million new loans), and expanding the Chetak EV and premium motorcycle portfolios.

Products & Services

Pulsar motorcycles, Chetak electric scooters, commercial vehicles, Bajaj Allianz insurance policies, and Bajaj Finance personal and business loans.

Brand Portfolio

Bajaj, Pulsar, Chetak, Bajaj Allianz, and Bajaj Finance.

New Products/Services

New variants of the Chetak EV and premium motorcycles are expected to contribute to the 12% turnover growth in the auto segment, though specific percentage contributions for new models are not disclosed.

Market Expansion

Bajaj Auto is expanding its global footprint with export growth across regions, while the financial services arm is deepening its reach in the domestic market through 25.7 million new loans in H1 FY26.

Market Share & Ranking

Bajaj Auto holds a leading position in the premium motorcycle and commercial vehicle segments, while Bajaj Finance is a dominant player in the Indian NBFC space with 25.7 million new loans booked in H1 FY26.

Strategic Alliances

The primary alliance is with Allianz SE in the insurance JVs (Bajaj Allianz General and Life), which is currently transitioning as the Bajaj group moves to acquire Allianz's 26% stake.

🌍 External Factors

Industry Trends

The industry is trending toward electric mobility and increased financialization, with BHIL positioned to benefit through its stakes in Chetak EV and Bajaj Finance (24% loan growth).

Competitive Landscape

Key competitors include other major auto manufacturers like TVS and Hero, and financial service providers like HDFC and Jio Financial.

Competitive Moat

The company's moat is sustained by its massive investment portfolio with a market value of INR 236,429 Cr (against a cost of INR 21,430 Cr) and the market leadership of its associates in the auto and finance sectors.

Macro Economic Sensitivity

The company is sensitive to macro factors like GST reforms, which are expected to provide tailwinds for growth in the automobile and financial services sectors by simplifying tax structures.

Consumer Behavior

Consumers are shifting toward premium and electric vehicles, as well as digital financial services, which aligns with the group's product strategy and 20% growth in Life Insurance GWP.

Geopolitical Risks

Geopolitical instability could impact Bajaj Auto's exports, which are a key driver of the INR 3,511 Cr share of associate profits that flow to BHIL.

⚖️ Regulatory & Governance

Industry Regulations

Insurance sector regulations, such as the 1/n basis for GWP measurement, directly impact the reported performance of the group's insurance subsidiaries.

Environmental Compliance

The group is investing in EV technology (Chetak) to comply with environmental regulations and meet the growing demand for sustainable transport, reducing long-term regulatory risk.

Taxation Policy Impact

The company benefits from a relatively low effective consolidated tax rate of approximately 8.5% (INR 485.71 Cr on INR 5,679.43 Cr PBT) due to the nature of its investment income and associate profit sharing.

Legal Contingencies

The company has resolved certain past tax matters, resulting in a tax credit of INR 86.12 Cr in the current period, which improves PAT.

⚠️ Risk Analysis

Key Uncertainties

The lack of quarterly data for Pierer Bajaj AG (PBAG) remains a key uncertainty for auditors, potentially impacting consolidated profit figures by an undetermined amount.

Geographic Concentration Risk

The group has a strong domestic base in India but is increasingly diversified through Bajaj Auto's global exports, which grew across all regions in H1 FY26.

Third Party Dependencies

The group depends on key technology partners for EV development and on the successful exit of Allianz from the insurance JVs to consolidate control.

Technology Obsolescence Risk

The risk of ICE technology becoming obsolete is being mitigated by aggressive investment in the Chetak EV platform and electric commercial vehicles.

Credit & Counterparty Risk

Bajaj Finance manages credit risk across its 25.7 million new loans through advanced data analytics, though high loan growth increases overall counterparty exposure.