Bajaj Group Overtakes HDFC Group in Market Value After Bajaj Finance Earnings Rally
Key Takeaways
- •Bajaj Group overtook HDFC Group to become India's fourth-largest conglomerate by market capitalisation, with a combined valuation of approximately ₹15.7 lakh crore.
- •Bajaj Finance's strong June-quarter results, featuring improved asset quality and healthy loan book growth, triggered broker upgrades and a share price rally that drove the group's valuation higher.
- •HDFC Group lost its fourth-position ranking partly due to pressure on HDFC Bank shares linked to margin compression and deposit mobilisation challenges following its July 2023 merger.
- •Bajaj Group now trails only the Tata, Reliance, and Adani groups in India's national market capitalisation rankings.
- •Bajaj Finance's performance reflects a broader recovery in India's NBFC sector, which has been regaining investor confidence after a period of elevated credit costs and competitive pressure from banks.
Bajaj Group Overtakes HDFC Group in Market Value After Bajaj Finance Earnings Rally
Strong June-quarter earnings at Bajaj Finance propelled the Bajaj Group past the HDFC Group in market capitalisation, making it India's fourth-largest business conglomerate by value. A sharp rally in Bajaj Finance shares, driven by improving operating metrics and broker upgrades, lifted the group's combined market capitalisation to approximately ₹15.7 lakh crore. The reshuffle places Bajaj behind the Tata, Reliance, and Adani groups in the national rankings.
Bajaj Group Becomes India's Fourth-Largest Conglomerate
The milestone marks a significant reshuffling at the top of India's corporate hierarchy. Bajaj Group, a diversified conglomerate founded in 1926, includes major listed entities such as Bajaj Finance, Bajaj Finserv, Bajaj Auto, and Bajaj Holdings & Investment. The group has steadily climbed the market-cap rankings in recent years, benefiting from the robust growth of its financial services arm, which has expanded its consumer lending franchise across categories such as two-wheelers, consumer durables, and digital lending.
The HDFC Group, which had long occupied the fourth position, includes HDFC Bank — India's largest private-sector lender — along with HDFC Life Insurance and other financial services entities. Following the July 2023 merger of HDFC Limited into HDFC Bank, the group's combined valuation had remained among the highest in the country. However, HDFC Bank shares have faced pressure in the period since the merger as the integrated entity works through margin compression and deposit mobilisation challenges, narrowing the gap that Bajaj Group has now crossed.
Bajaj Finance Earnings Drive the Rally
Bajaj Finance, the group's non-banking financial company (NBFC) and its largest contributor to market value, reported strong financial results for the quarter ended June 2026. The earnings highlighted improving asset quality, healthy loan book growth, and stable net interest margins, prompting several brokerage firms to upgrade their ratings and raise target prices on the stock. The performance underscores the broader recovery in India's NBFC sector, which has been regaining investor confidence after a period marked by elevated credit costs and competitive pressure from banks.
The post-earnings rally in Bajaj Finance shares, combined with gains in other group companies, was sufficient to push the Bajaj Group's aggregate market capitalisation above that of the HDFC Group. Whether Bajaj can sustain the position will depend on factors including the trajectory of Bajaj Finance's loan growth in upcoming quarters, the pace of HDFC Bank's margin recovery, and broader market sentiment toward financial services stocks.
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Bajaj Grp India's 4th Largest Conglomerate After Overtaking HDFC Grp
A strong earnings rally in Bajaj Finance takes the group's M-Cap to ₹15.7 lakh crore @yoosefkp pic.twitter.com/ao2r5la0VI
— CNBC-TV18 (@CNBCTV18News) July 31, 2026
Source: CNBC-TV18