Brokerages Mixed On Bajaj Auto Post Q2; Strong Margins Impress, Market Share Concerns Linger

Brokerages offered a mixed outlook on Bajaj Auto Ltd. following its Q2 FY26 results, with CLSA maintaining an ‘Outperform’ rating citing strong operational performance, while BofA and Jefferies flagged concerns over domestic market share despite decent earnings growth. The automaker reported a 23.7% year-on-year rise in net profit to Rs 2,480 crore, in line with analyst estimates. Revenue grew 13.7% to Rs 14,922 crore, while Ebitda rose 15.1% to Rs 3,052 crore, with margins expanding slightly to 20.5%.

Bajaj Auto Ltd.'s net profit for the second quarter of fiscal year 2026 rose 23.7% year-on-year, according to an exchange filing on Friday. The company reported a standalone bottom-line of Rs 2,480 crore as against Rs 2,005 crore in the year-ago period.

This is in line with the consensus estimate of Rs 2,439 crore, as projected by the analysts tracked by Bloomberg.

The automaker's revenue from operations grew 13.7% to Rs 14,922 crore in the quarter under review from Rs 13,127 crore. This also met the estimate of Rs 14,629 crore.

Earnings before interest, tax, depreciation and amortisation were up 15.1% at Rs 3,052 crore, as against Rs 2,652 crore; and margin expanded slightly to 20.5% from 20.2%.

• Maintain Outperform with target price of Rs 10604

• Motoring ahead

• Strong operational performance; domestic 2W growth revival the key

• KTM restructuring, export market recovery and new launches to drive growth

• Maintain Neutral; Cut target price to Rs 9300 from Rs 9600

• Margins & exports deliver

• Slippage in domestic market share a sore point

• Good margin perf. Domestic mshare gains key for stock

• Exports & 3Ws in top gear, driving decent earnings growth

• Maintain Hold; Raised target price to Rs 9,200 from Rs 9,000

• Positive on Indian 2W demand

• expect 10% industry volume CAGR over FY25-28E

• concerned on market share dip in domestic motorcycles