Shares of Bajaj Auto rose by 3 percent to close at ₹10,605 on Thursday, reaching a 52-week high of ₹10,740 after the company announced record quarterly revenue and maintained robust margins for the March quarter.
The stock performance followed the company’s report of a 32 percent year-on-year increase in revenue from operations, totaling ₹16,006 crore for the quarter ending March 31, 2026 (Q4 FY26). This growth was bolstered by all-time high volumes, an improved product mix, and favorable currency fluctuations.
Investors reacted positively amid strong export momentum, operational advantages, and optimistic management guidance concerning margins, even as raw material costs rise.
Despite the positive performance, brokerages express a mixed outlook. HDFC Securities retained a buy rating, setting a target price of ₹11,776. They highlighted that operating leverage, favorable forex factors, and cost optimization are expected to support margins in the coming quarter. They noted strong export growth, particularly in Latin America and Nigeria, while domestic demand may be bolstered by product innovations and advancements in the electric vehicle sector.
Motilal Oswal issued a neutral rating with a target price of ₹9,965. They acknowledged the company’s solid performance amid macroeconomic challenges but cautioned that geopolitical factors may impact export levels and foresee a moderation in domestic growth for FY27. They flagged rising input costs as a concern but anticipate a compound annual growth rate (CAGR) of 15 percent in revenue, EBITDA, and a 14 percent profit CAGR over the FY26-28 period.
JM Financial maintained a reduce rating, lowering the target price to ₹9,600. They reported a 60 basis point year-on-year expansion in Q4 FY26 EBITDA margin to 20.8 percent due to operational leverage and currency benefits, partially countered by increased raw material costs. While they noted robust exports, they expect a 3.5-4 percent quarter-on-quarter impact from raw material inflation, with recent price increases only offsetting about 40 percent of that rise.
Among international brokerages, Citi raised its target price to ₹9,300 from ₹8,000, maintaining a sell rating. They acknowledged slight outperformance in Q4 results while also expressing concerns over moderating domestic demand. Jefferies upgraded its hold rating and increased the target price to ₹10,500 from ₹9,100, citing resilience in India’s two-wheeler demand and projecting an 8 percent industry volume CAGR over FY26-29, despite potential pressure from rising commodity prices.
Morgan Stanley kept an underweight rating, increasing the target price to ₹9,259 from ₹8,920. They described Q4 as impressive, with EBITDA exceeding estimates by 4-7 percent, supported by strong exports and favorable currency movements, while cautioning about possible weakening in domestic demand, particularly within the entry-level motorcycle segment.
Published on May 7, 2026.
