Bajaj Auto share price rallies over 3% to 52-week high after Q4 results. Should you buy, sell or hold the stock?
Bajaj Auto share price has gained 17% in one month, and 11% in three months. The stock has rallied 21% in six months and has surged 35% in one year. Bajaj Auto shares have delivered multibagger returns of 174% over the past five years.
Bajaj Auto share price gained over 3% in early trade on Thursday, after the company announced its Q4 results along with a share buyback. Bajaj Auto shares rallied as much as 3.25% to a 52-week high of ₹10,650 apiece on the BSE.
Two- and three-wheeler manufacturer Bajaj Auto reported its highest ever net profit of ₹2,746 crore in the fourth quarter of FY26, a growth of 34% year-on-year (YoY), driven by strong operating performance.
The company’s revenue from operations in Q4FY26 grew 32% YoY to a record ₹16,006 crore, driven by all-time high volumes, an improved product mix, and favourable currency movements. The domestic motorcycles business registered nearly 30% YoY volume growth.
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1What were Bajaj Auto's Q4 FY26 financial highlights?⌵
Bajaj Auto reported its highest-ever net profit of ₹2,746 crore, a 34% year-on-year growth. Revenue from operations also reached a record ₹16,006 crore, up 32% year-on-year, driven by strong volumes and an improved product mix.
2What is Bajaj Auto's dividend and buyback plan after Q4 results?⌵
The company recommended a dividend of ₹150 per share for FY26 and announced a share buyback of ₹5,633 crore, with the buyback price fixed at ₹12,000 per share.
3What is the outlook for Bajaj Auto's domestic and export demand?⌵
While domestic motorcycle volumes grew nearly 30% year-on-year, Bajaj Auto management has warned of a potential demand slowdown due to rising vehicle prices caused by increasing raw material costs.
4How are brokerage firms rating Bajaj Auto stock after the Q4 results?⌵
Brokerage firms have mixed ratings: Nuvama Institutional Equities retains a 'Buy' with a target of ₹11,600, Motilal Oswal has a 'Neutral' rating and target of ₹9,965, and JM Financial maintains a 'Reduce' call with a target of ₹9,600.
5What factors are influencing Bajaj Auto's margins?⌵
Margins expanded to 20.8% in Q4 FY26, driven by an improved product mix and favorable currency movements. However, rising commodity costs are a concern, with price hikes expected to only partially offset the impact.
On the operating front, EBITDA during the March quarter increased 36% YoY to record high of ₹3,323 crore, while margins expanded to 20.8%.
Bajaj Auto also announced a share buyback of ₹5,633 crore, its second in three years. The company will buy back up to 4,694,000 fully paid-up equity shares, representing up to 1.68% of the total number of equity shares in the paid-up equity share capital.
Bajaj Auto buyback price has been fixed at ₹12,000 apiece.
The Board of Directors of Bajaj Auto also recommended a dividend of ₹150 per share (1500%) of face value of ₹10 each on equity shares for FY26. Bajaj Auto dividend record date is 29 May 2026, Friday, and the dividend payment date is 24 July 2026, Friday.
Should you buy, sell or hold Bajaj Auto shares after Q4 results?
Brokerage firm Motilal Oswal said that while Bajaj Auto has been able to post healthy performance in this adverse macro thus far, there are multiple headwinds to navigate. Export demand remains healthy, though the outlook remains uncertain, given the geopolitical issues.
Even in the domestic market, while Bajaj Auto is likely to outperform the motorcycle industry on the back of its new launches, growth is likely to moderate in FY27E. Further, a sharp surge in input costs is likely to limit margin upside, it said.
Motilal Oswal factors in Bajaj Auto to post 15%/15%/14% CAGR in revenue/EBIDTA/PAT over FY26-28E. At 25.4x/22.2x FY27E/FY28E EPS, it believes the stock appears fairly valued.
The brokerage firm reiterated a ‘Neutral’ rating on Bajaj Auto shares and raised the target price to ₹9,965 apiece, based on 22x FY28E core EPS.
Nuvama Institutional Equities expects a 10% volume CAGR over FY26–28E, driven by 7% growth in the domestic segment and 12% growth in exports. The brokerage estimates a recovery in domestic two-wheeler market share from 10.8% in FY26 to 11.2% in FY28E, supported by product refreshes and new variants across the Pulsar, KTM, and Triumph portfolios, along with the launch of a new affordable 125cc motorcycle.
It projects revenue and EBITDA CAGR of 15% each over FY26–28E, with return on equity (RoE) of around 36%.
Nuvama retains a ‘Buy’ rating and raised Bajaj Auto share price target to ₹11,600 apiece from ₹10,700 earlier.
JM Financial expects 6.1% domestic two-wheeler volume growth and 16.7% export volume growth for FY27E. On margins, raw material inflation is expected to have a 3.5% - 4% QoQ impact, with April 2026 price hikes offsetting only ~40% of the increase. The balance is expected to be mitigated through cost optimisation and currency tailwinds.
Accordingly, the brokerage firm estimates FY27E EBITDA margin at 20.1% versus 20.5% in FY26.
It believes Bajaj Auto buyback at ₹12,000 per share may offer limited effective upside after accounting for applicable capital gains taxes.
JM Financial maintained a ‘Reduce’ call and raised Bajaj Auto share price target to ₹9,600 from ₹9,510 earlier.
Bajaj Auto Share Price Performance
Bajaj Auto share price has gained 17% in one month, and 11% in three months. The stock has rallied 21% in six months and has surged 35% in one year. Bajaj Auto shares have delivered multibagger returns of 174% over the past five years.
At 9:40 AM, Bajaj Auto share price was trading 2.93% higher at ₹10,617.05 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.