Bajaj Auto Q4 Results 2026 Highlights: Profit jumps 34% YoY to the highest ever — ₹150 dividend and buyback announced

Auto major Bajaj Auto announced a share buyback of ₹5,633 crore, its second in three years, along with the financial results for the January-March quarter of financial year 2025-26 (FY26) on Wednesday, 6 May.

Bajaj Auto said that it will buy back up to 4,694,000 fully paid-up equity shares of the company having a face value of ₹10 each, representing up to 1.68% of the total number of Equity Shares in the paid-up equity share capital.

Bajaj Auto has fixed the buyback price at ₹12,000 apiece, suggesting a premium of 16.3% over the last closing price of ₹10,314.60.

Exports exceeded the quarterly 6 Lakh units mark yet again, with revenues growing >30% YoY, driven by another record Pulsar performance; LatAm stayed the course on setting new benchmarks, while Africa and Asia continued to post strong double-digit growth

Domestic Motorcycles posted a milestone quarter with revenues up a solid ~30% YoY; product interventions undertaken earlier, particularly in the Pulsar N/NS series, turbo charged the sports portfolio and drove a strong competitive performance and gains

• KTM-Triumph duo posted a landmark quarter, sustaining its strong run with >40% YoY growth; KTM's performance was led by Duke while Speed 400 led the show for Triumph; the new 350cc models were rolled out at the quarter end to an encouraging initial response

• Commercial Vehicles continued to accelerate momentum, supported by a strong ICE portfolio and growing e3W franchise; the lineup was further strengthened with the launch of WEGO P9018 -the largest e3W in the industry, with the biggest battery and highest range

• Chetak delivered its strongest performance with retail volumes surpassing the 1 lakh milestone; launch of Chetak C25 expanded the portfolio into a more accessible segment, combining everyday usability with trusted durability and strengthening appeal among riders

Board of Directors has approved a dividend at the rate of ₹150 per share (1500 %) of face value of ₹10 each on equity shares for the financial year ended 31 March 2026. The said dividend, if approved by the shareholders at the ensuing Annual General Meeting, will be credited/dispatched on or around 24 July 2026.

The Dividend, if declared, shall be paid to the equity shareholders whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, 29 May 2026, which is the Record Date fixed for the purpose.

At ₹3,323 crore, EBITDA has set another record, with a solid 36% growth YoY. The margin was at 20.8%; a combination of pricing, currency tailwind, richer mix and leverage offset cost inflation, stepped-up discretionary spend and PM eDrive phase-out impact in e3Ws.

The revenue from operations peaked yet again at ₹16,006 crore, a strong 32% YoY growth, driven by record volumes, improved mix and favourable currency, resulting in broad-based double-digit growth across all businesses - Domestic Motorcycles, e2Ws, 3Ws, Exports, said the company.

Profit after tax was at its highest ever at ₹2,746 crore, up 34% YoY, driven by strong operating performance; reported PAT includes an exceptional gain of ₹35 crores arising from prepayment at discounted value of the Sales Tax deferral loan.

Ambit Capital said that it values Bajaj Auto using the DCF value methodology, wherein it has added: a) the NPV of free cash flows till FY35E with the terminal value, and b) valuing its 74.9% stake in Pierer Mobility AG at CMP post 20% hold-co discount, to arrive at a target price of ₹8,953.

MOSL said that it estimates hits and misses in 4QFY26. In two-wheelers, Bajaj Auto (+30%), HMCL (+26%) and TVSL (+18%) are expected to post healthy earnings growth on the back of strong volume growth.

PL Capital estimates volume/realization CAGR of 8.8%/5.7% over FY25-28E, translating into revenue/EBITDA/PAT CAGR of 14.9%/15.7%/15.9%. “We upgrade the stock to ‘Accumulate’ rating (previous ‘HOLD’) with TP of INR10,000 (previous INR9,500), reducing the target P/E multiple to 22x (previous 23x) based on FY28E EPS,” it said.

Bajaj Auto has been gaining market share in the strategic 125cc+ segment driven by Pulsar and 150cc+ sports portfolio as the domestic motorcycle industry saw sharp revival in demand after GST 2.0 rate rationalization. The management aims to outpace industry growth in this sub-segment, although <125cc volumes, which form ~2/3rd of its domestic motorcycles in FY26, remain under pressure. New product launches/interventions, shifting consumer preference toward e2Ws, and sustained exports (with depreciating INR) should enhance the topline.

— PL Capital

Bajaj Auto ended higher ahead of the Q4 results today. On BSE, the auto stock closed at ₹10361.50, up 3.17%. Meanwhile, on NSE, the stock closed at ₹10,390, up 3.4%.

EBITDA margins are expected to improve by ~46 bps YoY but decline by 14 bps QoQ, supported by stronger export volumes and a richer product mix, partly offset by higher raw material costs, said Axis Securities.

Total revenues are expected to increase by ~27% YoY and 1% QoQ, driven by a 24% YoY growth in overall volumes, rupee depreciation benefiting exports, and improvement in ASPs due to a better product mix, said Axis Securities.

Kotak Equities sees Bajaj Auto's Q4 PAT rising 37% YoY and 10% QoQ. Meanwhile, net sales may jump by 31% YoY and almost 5% QoQ, as per its estimates.

According to Trendlyne data, Bajaj Auto has declared 19 dividends since June 27, 2008. In the past 12 months, Bajaj Auto has declared an equity dividend amounting to ₹210.00 per share. At the current share price of ₹10193.0000, Bajaj Auto's dividend yield is 2.06%.

Kotak Equities expects EBITDA margin to increase by 50 bps yoy basis in 4QFY26, led by (1) favourable FX, (2) operating leverage benefits and (3) richer product mix, partly offset by (1) higher ad spends, (2) commodity headwinds and (3) lower profitability in domestic EV 3W busines due to expiration of PM e-drive incentives.

Kotak Equities expects Bajaj Auto’s EBITDA to increase 35% yoy, mainly on account of (1) higher volumes, (2) favourable FX and (3) a richer product mix.

Ahead of earnings announcement, Bajaj Auto share price was trading over 2% higher. The stock hit the day's high of ₹10,312.95 apiece. Its all-time high was ₹10,480.65.

The key benefit for Bajaj Auto in 4Q is expected to be favourable currency movement (2% INR depreciation QoQ), which is likely to offset RM inflation pressure.

As a result, MOSL expects margins to remain stable QoQ at 20.8%. Overall, it expects Bajaj Auto to post 30% earnings growth YoY, led by volume growth and better margins.