Bajaj Auto Ltd. is on brokerages' radar as the company's net profit for the fourth quarter of FY26 jumped 34% year-on-year, according to an exchange filing on Wednesday. The auto giant posted a bottom-line of Rs 2,746 crore compared to Rs 2,049 crore in the year-ago period. Revenue from operations grew 31.8% to Rs 16,005.65 crore from Rs 12,147.97 crore.
Both the net profit and revenue were in-line with street expectations of Rs 2,615 crore and Rs 15,737 crore, respectively. Earnings before interest, taxes, depreciation, and amortisation rose 36% to Rs 3,322.68 crore from Rs 2,450.59 crore in the corresponding quarter of last fiscal. Ebitda margin stood at 20.8% versus 20.2% in the year-ago period.
The company also announced its second buyback in two years. The company will buy back shares worth Rs 5,633 crore, according to an exchange filing. This will also be the biggest buyback in the last four years.
Brokerages maintained a largely bearish outlook on Bajaj Auto. Citi maintained a Sell rating and hiked the target price to Rs 9,300 from Rs 8,000. Similarly, Morgan Stanley maintained an Underweight rating and hiked the target price to Rs 9,259 from Rs 8,920. Jefferies, however, maintained a Hold rating and hiked the target price to Rs 10,500 from Rs 9,100.
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Citi on Bajaj Auto
- Citi maintains a Sell rating and hikes the target price to Rs 9,300 from Rs 8,000.
- Q4 results came in slightly above estimates.
- The brokerage remains positive on the export outlook.
- However, domestic demand is showing signs of moderation.
Morgan Stanley on Bajaj Auto
- Morgan Stanley maintains an Underweight rating and hikes the target price to Rs 9,259 from Rs 8,920.
- Q4 was an impressive quarter, with EBITDA beating estimates by 4–7%.
- Export momentum remains strong.
- Domestic demand, especially in the entry-level segment, could moderate.
- Currency tailwinds and calibrated price hikes are helping offset commodity inflation pressures.
Jefferies on Bajaj Auto
- Jefferies maintains a Hold rating and hikes the target price to Rs 10,500 from Rs 9,100.
- Q4 delivered strong growth and earnings beat expectations.
- India's two-wheeler demand remains resilient, with the brokerage expecting 8% industry volume CAGR over FY26–29.
- Exports are also witnessing strong growth.
- Rising commodity prices may pressure margins in the near term.
- However, Bajaj Auto has demonstrated strong profitability execution.
ALSO READ: Bajaj Auto Q4 Results: Profit Surges 34%, Revenue Tops Rs 16,000 Crore
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