Bajaj Holdings & Investment Ltd presents a clean audit record and a straightforward business of holding stakes in Bajaj group companies. Two things deserve attention: a ₹915.48 crore net loss recognised by its associate Bajaj Auto Ltd from a European restructuring [p.233], and a regulatory application that could change how the company is supervised.
Key findings
- The group is a layered holding structure with 20 unregistered Core Investment Companies
Minor- The auditor’s CARO report for FY2026 identifies 20 companies in the promoter group that are Core Investment Companies and are unregistered under RBI’s 13 August 2020 notification, up from 18 in FY2025 and 16 in FY2022. BHIL itself filed an application with RBI during FY2026 to re-categorise from NBFC-ICC to an Unregistered Core Investment Company, and the application remains under review. Its 51% subsidiary Maharashtra Scooters Ltd closed its manufacturing operations in FY2025 and will continue as an unregistered Core Investment Company. - Auditor churn is driven entirely by RBI-mandated joint-audit and tenure rules
Clean- S R B C & Co. LLP resigned effective 13 November 2021 because RBI guidelines made them ineligible to continue; the outgoing auditor raised no issues, objections or concerns. The company’s asset size exceeded ₹15,000 crore as at 31 March 2022, triggering RBI’s joint-audit requirement, and subsequent appointments and rotations of Kalyaniwalla & Mistry LLP, NBS & Co., P G Bhagwat LLP, and Khandelwal Jain & Co. all followed tenure expiries. Total fees paid to the joint statutory auditors for FY2026 were ₹0.30 crore, including limited review, tax audit, out-of-pocket expenses and other services.
What to watch
- Post-acquisition impairment. Impairment testing of goodwill and intangibles recognised on the 18 November 2025 acquisition of Bajaj Auto International Holdings AG, given KTM AG’s court-supervised restructuring and the 30% cash quota accepted by creditors.
- RBI re-categorisation. RBI’s decision on BHIL’s application to become an Unregistered Core Investment Company, filed during FY2026 and under review as of the FY2025-26 Annual Report.
- Tax demands. Resolution of two income tax demands of 11.4 crore each for AY 2012-13 and AY 2013-14, and six demands for AY 2018-19 through AY 2023-24, all pending before the Commissioner of Income Tax (Appeals).
- EPR obligation. Notification of the pricing mechanism for EPR certificates under the ELV Rules, 2025, enabling Bajaj Auto Ltd to estimate its obligation.
Bottom line: This is a disclosed and conservatively audited holding-company record with no leverage, no promoter pledges, and no compensation controversies. The risk sits in the structure: cumulative operating cash flow over ten years covers only about one-quarter of adjusted profit, and the largest associate recognised a net loss of ₹915.48 crore following a court restructuring. Watch whether the RBI re-categorisation changes the company’s regulatory obligations, and whether the newly acquired European subsidiary passes its first post-restructuring impairment test.