Are Bajaj Holdings & Investment Ltd latest results good or bad?

Bajaj Holdings & Investment Ltd's latest financial results for the quarter ended December 2025 present a mixed picture. The consolidated net profit reached ₹2,016.22 crores, reflecting a notable sequential growth of 29.33%. This indicates resilience in the company's underlying portfolio, particularly from its strategic holdings in Bajaj Finserv, Bajaj Auto, and Maharashtra Scooters. However, the standalone net sales for the same quarter were ₹287.51 crores, which marked a significant decline of 27.56% compared to the previous quarter, although it showed substantial year-on-year growth of 127.59% from ₹126.33 crores in Q3 FY25. The operating margin, excluding other income, was reported at 85.74%, down from 89.05% in the previous quarter, suggesting some pressure on core operations. Additionally, the return on equity (ROE) stood at 10.44%, which is below the peer average, indicating potential concerns regarding capital efficiency. The company has maintained a debt-free balance sheet, with shareholder funds of ₹62,687.55 crores, yet the low ROE and return on capital employed (ROCE) of just 1.20% raise questions about the effective deployment of its substantial capital base. The financial performance also highlights volatility in revenue, attributed to the nature of investment income recognition, which can fluctuate based on dividend receipts and investment gains. Overall, while Bajaj Holdings demonstrates strong fundamentals through its investment portfolio and has seen an adjustment in its evaluation, the recent operational challenges and capital efficiency metrics warrant closer scrutiny. The stock has faced significant underperformance relative to the market, reflecting investor concerns about its ability to unlock value from its holdings.