Hercules Investments Shares Rise 7% After Q2 Net Profit Hits ₹9 Crore

Key numbers

Market Cap	₹363.52 CrSmall Cap
PE Ratio	46.33Sector PE 52.64
Promoter Holding	69.61%No pledge
RSI	54.96Neutral Zone

Key highlights

• Revenue from operations rose to ₹8.9 crore in Q2 FY27 compared to ₹5.5 crore in the same period last year
• Net profit surged 73.1% year-on-year to ₹9.0 crore, up from ₹5.2 crore in Q2 FY26
• Operating margins expanded to 96.6% during the quarter, significantly higher than the 50.0% recorded in Q1 FY27
• On a sequential basis, net profit grew by 8,900% from ₹0.1 crore in the preceding June quarter
• Total comprehensive income for the half-year ended September 30, 2026, stood at ₹123.57 crore

Portfolio Income Drives Core Revenue Growth

Hercules Investments reported total revenue from operations of ₹8.9 crore for the September 2026 quarter, a substantial increase from the ₹0.4 crore recorded in the immediate previous quarter. This growth reflects the company's streamlined operations as an unregistered Core Investment Company (CIC). Since the demerger of its manufacturing business, the entity now focuses exclusively on managing a portfolio of investments within the Bajaj Group companies.

The sharp quarter-on-quarter revenue jump of over 2,000% underscores the lumpy nature of investment-led income, which primarily consists of dividends and realized gains from the underlying portfolio.

Operational Efficiency and Margin Expansion

• Operating margin reached 96.6% in Q2 FY27, reflecting the low-overhead structure of an investment holding firm
• Total expenses for the quarter were contained at ₹0.26 crore, consistent with holding company requirements
• Employee benefit expenses stood at ₹0.04 crore, marginally up from previous quarters but stable on an annual basis
• The company reported a profit before tax of ₹8.6 crore, compared to ₹5.2 crore in the year-ago period
• Deferred tax credits of ₹0.33 crore further supported the bottom line during the current quarter

Holding Company Structure and Bajaj Group Focus

The Company operates in a single primary segment only i.e. As an Unregistered CIC, managing Portfolio of Investments in BAJAJ Group Companies and therefore, disclosure requirement of Indian Accounting Standard (IND AS-108) Segment Reporting is not applicable.

Long-term Trend and Valuation Context

The stock has experienced significant volatility over the past year, with a one-year price change of -36.39% despite the current recovery in profitability. With a market capitalization of ₹363.52 crore, the company trades at a TTM P/E of 46.33, which is lower than the industrial machinery sector average of 52.64. Historical data shows a fluctuating profit trajectory, with a ₹26.70 crore profit in Q4 FY25 followed by a period of lower earnings as the transition to an investment-only model finalized.

The current price to book value adjusted stands at 0.53, suggesting the stock is trading below its net asset value.

What to watch next

• Next quarterly board meeting for Q3 FY27 results expected in February 2027
• Movement in the market value of Bajaj Group companies impacting Other Comprehensive Income
• Potential regulatory updates regarding the status as an Unregistered Core Investment Company

Hercules Investments · financial snapshot

Share price	₹113.6
Market capitalisation	₹363.52 Cr
Revenue (annual)	₹8.91 Cr
Net profit (annual)	₹7.72 Cr
Revenue (latest quarter)	₹0.42 Cr+42.23% vs previous quarter
Net profit (latest quarter)	₹0.12 Cr+244.62% vs previous quarter
P/E (TTM)	46.33×Sector 52.64×
Promoter holding	69.61%0.00% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.