Hercules Investments: PAT up 73% YoY to ₹8.98 Cr on dividend income, tax credit

Hercules Investments Limited (formerly Hercules Hoists), now operating purely as an unregistered Core Investment Company for Bajaj Group equity holdings, reported standalone PAT of ₹8.98 Cr for Q2 FY27, up 72.8% YoY from ₹5.20 Cr in Q2 FY26. Revenue from operations (which for this entity means dividend/investment income on its Bajaj Group FVOCI portfolio) rose 62.4% YoY to ₹8.91 Cr from ₹5.49 Cr. There is no consensus or analyst coverage for this stock (confirmed via web search — zero analyst estimates on record), so vsStreet is unknown; management has also issued no formal guidance, so vsGuidance is unknown.

PAT grew faster than PBT (+64.7% YoY to ₹8.64 Cr) because of a swing in the tax line: a ₹0.34 Cr net deferred-tax credit this quarter against a ₹0.05 Cr tax expense a year ago, tied to FVOCI investment revaluation rather than operations — this is a modest but real contributor to the reported PAT beat and is flagged rather than folded silently into the growth number. Sequentially, Q1 FY27 revenue was just ₹0.42 Cr and PAT ₹0.12 Cr, with nearly all of H1 FY27's ₹9.33 Cr income landing in Q2 — a dividend-timing/base effect (investee AGM and dividend-declaration timing within the Bajaj group), not a QoQ acceleration in the business, so the eye-popping QoQ growth rates (revenue +2,025%, PAT +7,577%) should not be read as momentum.

The stock went into the print at ₹121.2, up 13.3% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.

Beyond the P&L, other comprehensive income was ₹17.66 Cr for the quarter (mark-to-market gains on the FVOCI equity portfolio), taking total comprehensive income to ₹26.64 Cr — larger than reported PAT and a reminder that portfolio value swings, not operating income, now drive this company's balance sheet. The FVOCI investment book stood at ₹886.2 Cr as of 30-Sep-26, up from ₹752.6 Cr at FY26-end. The company paid out ₹8 Cr in dividends during H1 FY27, following the AGM on 13-Aug-26 that approved director reappointments and a dividend. No press release accompanied this filing with management's own framing of the quarter.