Bajaj Auto Shares Jump 3% After Record Q4 Profit. Brokerages Turn Bullish
Shares of Bajaj Auto rose more than 3% on Thursday after the company reported its highest-ever quarterly profit. The stock traded at Rs 10,656 on the National Stock Exchange. Investors cheered the strong results, which beat market expectations.
The auto major posted a net profit of Rs 2,746 crore for the fourth quarter of fiscal year 2026. This was a 34% jump compared to the same period last year. Revenue from operations climbed 32% to Rs 16,006 crore. The company’s EBITDA, or earnings before interest, taxes, depreciation, and amortization, rose 36%. Its operating margin expanded to 20.8%.
These numbers show strong demand for Bajaj Auto’s products. The company makes motorcycles, scooters, and three-wheelers. It sells in India and also exports to many countries. The record profit came from higher sales and better cost control.
Why Brokerages Are Bullish on Bajaj Auto
Several top brokerages have raised their target prices for Bajaj Auto shares after the results. They believe the company is in a strong position to grow further. Here is what some of them are saying.
Jefferies maintained a “buy” rating on the stock. It raised its target price to Rs 12,500. The brokerage said Bajaj Auto’s margin performance was impressive. It also noted that the company’s export business is recovering well. Jefferies expects this trend to continue.
Nomura also kept a “buy” rating. It set a target of Rs 12,200. Nomura highlighted that Bajaj Auto’s domestic market share is improving. The brokerage said the company’s focus on premium motorcycles is paying off. It also sees strong growth in the three-wheeler segment.
CLSA gave a “buy” rating with a target of Rs 12,000. It said the record profit shows Bajaj Auto’s execution strength. The brokerage expects the company to benefit from new product launches. It also pointed to healthy demand in rural areas.
Morgan Stanley rated the stock as “overweight” with a target of Rs 11,800. It said the margin expansion was a key positive surprise. The brokerage believes Bajaj Auto can maintain margins above 20% in the coming quarters.
What Drove the Record Profit
Bajaj Auto’s strong performance came from multiple factors. First, the company sold more vehicles in India. Its premium motorcycle segment, including the Dominar and Pulsar brands, saw good demand. Second, exports to Africa, Latin America, and Southeast Asia recovered after a slowdown. Third, the company managed costs well despite higher raw material prices.
The company also benefited from a better product mix. It sold more high-margin vehicles. This helped improve overall profitability. Bajaj Auto’s three-wheeler business also did well. These vehicles are used for passenger transport and goods delivery.
What Investors Should Watch
Investors should keep an eye on a few things going forward. First, the recovery in exports is important. Bajaj Auto gets a large part of its revenue from overseas markets. Any slowdown in global demand could hurt sales. Second, competition in the domestic market is increasing. Rivals like Hero MotoCorp and TVS Motor are also launching new models. Third, raw material costs could rise again. This might put pressure on margins.
On the positive side, Bajaj Auto has a strong balance sheet. It has little debt and good cash flow. The company also pays regular dividends. Many analysts believe the stock can deliver good returns over the long term.
Conclusion
Bajaj Auto’s record quarterly profit has boosted investor confidence. Brokerages are bullish on the stock. They see further upside from strong domestic demand and export recovery. The company’s margin expansion is a big positive. However, investors should also consider risks like competition and global economic conditions. Overall, Bajaj Auto remains a strong player in the auto sector.
