Bajaj Auto shares are in focus after it reported a strong set of quarterly earnings. The company has announced a share buyback plan. Most analysts have raised the FY27 and FY28 EPS estimates as they are factoring in higher revenue assumptions and buyback impact.
Bajaj Auto: Buyback plan
Bajaj Auto has set the share buyback price at Rs 12,000 a share, which is a premium of 15% from Wednesday’s closing levels of Rs 10,390.
It plans to buyback 46.94 lakh equity shares of the company, which have a face value of Rs 10 each. The firm plans to purchase 1.68% equity shares of the total number of shares.
The company will spend a total of Rs 5,633 crore for the share buyback, and this amount does not include other costs, brokerage fees, and applicable taxes. The buyback process is likely to culminate by the end of July with SEBI filing, and pay-outs are anticipated in the second week of July.
Bajaj Auto Q4FY26
The company reported its highest-ever standalone net profit of Rs 2,746 crore for Q4 FY26, an increase of 34% year-on-year (YoY), compared to Rs 2,049 crore recorded in Q4FY25.
However, the profit after tax includes an exceptional gain of Rs 35 crore from the prepayment at a discounted value of the sales tax deferral loan.
The revenue from operations advanced 32% YoY to a record Rs 16,006 crore in the fourth quarter of FY26 from Rs 12,148 crore in the corresponding quarter a year back.
On the operating front, EBITDA (earnings before interest, tax, depreciation and amortisation) surged 36% YoY to Rs 3,323 crore in Q4FY26 from Rs 2,451 crore in the same quarter a year ago. The firm’s operating margin climbed by 60 basis points YoY to 20.8% in Q4 FY26 from 20.2% in Q4 FY25.
Nuvama on Bajaj Auto
Nuvama Institutional Equities has a ‘Buy’ on Bajaj Auto. They have set a target of Rs 11,600 based on 25x FY28 core earnings. Along with this, Nuvama is also factoring in cash and investments of Rs 885 per share. They expect a 10% volume CAGR over FY26–FY28, led by 8%/12% growth in domestic/export segments.
Nuvama expects a recovery in the domestic two-wheeler market share from 10.8% in FY26 to 11.2% in FY28, supported by new products. New products include refreshes/variants under Pulsar/KTM/Triumph brands and a new 125cc affordable motorcycle.
Bajaj Auto has recently enhanced its EV portfolio with new features and performance upgrades, and additional launches are expected in the near-term. In comparison, Nuvama expects exports to grow at a 12% CAGR, supported by better demand across Latin America, Asia and Africa regions.
They expect a 13% annual growth on a compounded basis in the three-wheeler exports due to better demand in the Latin America and Asia regions. Moreover, domestic three-wheelers shall post a 4% CAGR between FY26-FY28, led by replacement demand and increasing acceptance of EVs. Recently, the company entered the e-rickshaw segment, addressing an estimated market of 30,000 units/month. Sales volumes are likely to gradually improve going forward, led by penetration into more cities (from 50 cities currently).
Bajaj Auto share price performance
The share price of Bajaj Auto surged 10.4% in the last five trading sessions. The stock has rose 15% in the last one month and 19% in the past six months. Bajaj Auto has raised investors’ wealth by 32% in the last one year.
