Synopsis:
Bajaj Auto delivered robust revenue development this quarter, however analysts maintain blended views on its future. With exports rising and margins increasing, is it time to purchase, promote, or maintain?
Shares of a two-wheeler and three-wheeler producer traded greater after reporting regular Q2FY26 outcomes, reflecting sturdy efficiency regardless of margin pressures. Buyers reacted positively to the corporate’s sustained export restoration and improved working revenue.
Bajaj Auto Ltd one among India’s main car producers, recognized for its in depth vary of two-wheelers and three-wheelers opened at Rs. 8,734.75 in opposition to the earlier shut of Rs. 8,724.20 and touched an intraday excessive of Rs. 8,838.65, up 1.31 %. The corporate has a market capitalisation of Rs. 2,44,424.18 crore.
Monetary Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Bajaj Auto reported income from operations of Rs. 15,735 crore in Q2FY26, rising 20 % from Rs. 13,133 crore in Q1FY26. Working revenue improved marginally by 1 % to Rs. 2,829 crore from Rs. 2,793 crore, whereas the working revenue margin contracted from 21 % to 18 %. Revenue earlier than tax rose barely by 1 % to Rs. 2,999 crore from Rs. 2,961 crore. Nonetheless, internet revenue declined 4 % to Rs. 2,122 crore in comparison with Rs. 2,210 crore within the earlier quarter. Earnings per share fell sequentially to Rs. 75.99 from Rs. 79.15.
Yr-on-Yr (YoY): On a yearly foundation, income grew 19 % to Rs. 15,735 crore from Rs. 13,247 crore in Q2FY25. Working revenue surged 36 % to Rs. 2,829 crore from Rs. 2,073 crore, whereas the working margin expanded from 16 % to 18 %. Revenue earlier than tax jumped 30 % to Rs. 2,999 crore from Rs. 2,299 crore. Web revenue soared 53 % to Rs. 2,122 crore from Rs. 1,385 crore in the identical quarter final yr. The corporate’s EPS improved year-on-year to Rs. 75.99 from Rs. 49.61.
October Gross sales Replace
Bajaj Auto reported an 8 % year-on-year enhance in complete automobile gross sales, together with exports, to five,18,170 items in October 2025, up from 4,79,707 items a yr in the past. Home gross sales, together with business automobiles, rose 3 % to three,14,148 items in comparison with 3,03,831 items in October 2024.
Exports recorded a robust 16 % development to 2,04,022 automobiles from 1,75,876 items within the earlier yr. Whole two-wheeler gross sales, together with exports, rose 7 % to 4,42,316 items from 4,14,372 items, whereas home two-wheeler gross sales elevated 4 % to 2,66,470 items in comparison with 2,55,909 items in October final yr.
Analysts’ View
CLSA maintained an Outperform score with a goal worth of Rs. 10,604, implying a possible upside of 21.5 % from the earlier shut. The brokerage famous that robust operational efficiency persists, supported by home two-wheeler demand revival. It expects development to be pushed by KTM restructuring, export restoration, and new product launches.
BofA Securities retained a Impartial score and revised its goal worth downward to Rs. 9,300 from Rs. 9,600, indicating a possible upside of 6.6 % from the earlier shut. It acknowledged regular margins and export momentum however raised issues over home market share erosion. The brokerage highlighted that exports and the three-wheeler segments proceed to assist earnings development.
Jefferies reiterated a Maintain score and elevated its goal worth to Rs. 9,200 from Rs. 9,000, implying a 5.4 % upside from the final shut. The brokerage expressed confidence in India’s two-wheeler market, projecting a ten % business quantity CAGR between FY25 and FY28, however flagged issues concerning Bajaj Auto’s declining home bike share.
Written by Manan Gangwar
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