Bajaj Auto Poised for Upswing, Says Geojit Financial Services

Bajaj Auto Ltd Reports 31.8% YoY Growth in Q4FY26

Bajaj Auto Ltd (BAL), India's second-largest motorcycle manufacturer and largest three-wheeler maker, has released its research report on the company's performance. Based in Pune, BAL has plants in Chakan (Pune), Waluj (near Aurangabad), and Pantnagar (Uttarakhand), and is the country's largest exporter of motorcycles and three-wheelers.

In Q4FY26, the company's standalone revenue grew 31.8% year-over-year (YoY) to Rs. 16,006cr, driven by strong volume expansion, sustained export momentum, and a favorable product mix. The total sales volume rose 24.3% YoY to 1,371,058 units, due to strong growth across both the domestic and export markets. Domestic volume grew 24.1% YoY to 760,846 units, aided by a strong recovery supported by GST rate rationalisation. Export volume grew 24.7% YoY to 610,212 units.

BAL's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged 35.6% YoY to Rs. 3,323cr, with margin expanding 60bps YoY to 20.8%. This was supported by favorable currency realisations, better operating leverage due to higher volume, a richer product mix that helped offset commodity inflation, and higher discretionary spend. The company's reported profit after tax increased 34.0% YoY to Rs. 2,746cr, driven by improved operating performance on the back of stronger revenue.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Research Report Upgrade

Based on the company's strong performance, Geojit Financial Services has upgraded its rating on Bajaj Auto Ltd to BUY from HOLD, with a rolled-forward target price of Rs. 11,735, based on 26x FY28E adjusted Earnings Per Share (EPS).