Bajaj Group stock falls 7% after reporting 98% QoQ decrease in net profit

SYNOPSIS: Maharashtra Scooters shares declined after Q3 FY26 revenue and profit fell sharply QoQ, even as YoY performance remained supported by asset monetisation and tax provision write-backs.

During Monday’s trading session, shares of a manufacturing and an unregistered core investment company tumbled over 7 percent on BSE, after reporting Q3 FY26 results with a decline in net profit by more than 98 percent QoQ.

With a market cap of Rs. 14,809 crores, shares of Maharashtra Scooters Limited closed in the red at Rs. 12,957.95 on BSE, down by over 4 percent, as against its previous closing price of Rs. 13,549.8. The stock has delivered positive returns of over 43 percent in the last one year, but has fallen by around 9 percent in the last one month.

What’s the News

Maharashtra Scooters Limited announced the financial results for the third quarter of FY26 on Monday during market hours, as per the latest regulatory filings with the stock exchanges.

For Q3 FY26, the company reported a total revenue from operations of Rs. 6.4 crores, reflecting a sequential decline of around 98 percent QoQ compared to Rs. 271 crores in Q2 FY26. Meanwhile, on a year-on-year basis, revenue grew over 10 percent from Rs. 5.8 crores recorded in Q3 FY25.

During the same period, net profit stood at Rs. 4 crores, indicating a huge decline of around 98.5 percent QoQ from Rs. 267 crores in Q2 FY26, but a growth on a year-on-year basis by around 21 percent from Rs. 3.3 crores reported in Q3 FY25.

The results were also influenced by one-time items, including Voluntary Separation Scheme (VSS) expenses, gains from asset sales, and an increase in deferred tax liabilities arising from changes in tax regulations.

In the previous financial year, the company announced a VSS for employees on 2nd May 2024, under which 65 employees opted for separation, resulting in a one-time charge of approximately Rs. 14.08 crore, fully expensed in line with Ind AS 19 (Employee Benefits).

Additionally, the company transferred the leasehold rights of the land and building thereon at its Satara facility for a consideration of ~Rs. 54.5 crore, generating a net profit of ~Rs. 47.11 crore after transaction costs. It also sold plant and machinery for ~Rs. 18.4 crore and other assets worth ~Rs. 43 lakh, realising an additional profit of ~Rs. 10.57 crore.

Further, Maharashtra Scooters reassessed its tax provisions for the year ended 31st March 2025 and reversed a tax provision of approximately Rs. 7.7 crores during the nine months ended 31st December 2025. For comparison, the corresponding write-back in the nine months ended 31 December 2024 stood at ~Rs. 17.26 crores.

Maharashtra Scooters Limited is an unregistered Core Investment Company (CIC), not requiring registration with the RBI. As a CIC, a minimum of 90 percent of its assets stand invested in the Bajaj group, and the balance representing accumulated surpluses is invested in debt and other instruments with the sole objective of earning a reasonable rate of return whilst protecting the principal. The company is also engaged in the business of manufacturing dies, jigs, fixtures and die casting components primarily for the automobile industry, etc.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Bajaj Group stock falls 7% after reporting 98% QoQ decrease in net profit appeared first on Trade Brains.