Bajaj Auto gains 4% to hit 52-week high post Q4; dividend, buyback declared

Bajaj Auto has announced buyback of 4.69 million shares for ₹5,633 crore, at ₹12,000 each via tender offer route. Additionally, the company has recommended a dividend payout of ₹150 per share.

Bajaj Auto share price today: Shares of Bajaj Auto hit a new 52-week high of ₹10,738.40, gaining 4.1 per cent on the BSE in Thursday’s intra-day trade after the company posted a healthy performance in the fourth quarter of the financial year 2025-26 (Q4FY26). The two-wheeler (2W) company also announced a share buyback programme at ₹12,000 via tender offer.

 

In the past six trading days, the stock price of Bajaj Auto has appreciated by 12 per cent. In one month, it has outperformed the market by surging 18 per cent, as compared to a 4.5 per cent rise in the BSE Sensex and an 11 per cent rally in the BSE Auto index. 

 

 

Bajaj Auto Q4 results

 

Bajaj Auto reported a sharp jump in its Q4FY26 consolidated performance, with profit after tax (PAT) more than doubling to ₹3,662 crore, up 103 per cent year-on-year (Y-o-Y), while revenue from operations rose 41 per cent Y-o-Y to ₹17,832 crore.

 

The earnings are not comparable with the year-ago period, as they include the impact of consolidating Bajaj Auto International Holdings AG (BAIHAG) — the holding entity for KTM and Bajaj Mobility AG — as a subsidiary effective November 18, 2025. This led to a one-time gain of ₹1,195 crore from fair-value remeasurement and reclassification of foreign currency translation reserves, significantly boosting reported profitability, the company said.

 

During the quarter, growth was driven by record volumes, improved mix and favourable currency movements, resulting in broad-based double-digit expansion across domestic motorcycles, electric two-wheelers, three-wheelers and exports.  CHECK Stock Market LIVE Updates

 

Bajaj Auto share buyback, dividend  The board of Bajaj Auto announced a buyback of 4.69 million shares for an aggregate amount of ₹5,633 crore at ₹12,000 each (tender offer route). 

 

“The board approved buyback of up to 4,694,000 fully paid-up equity shares of the company having face value of ₹10 each, representing up to 1.68 per cent of the total number of equity shares in the paid-up equity share capital of the company, at a price of ₹12,000 per equity share payable in cash for an aggregate amount of up to ₹5,633 crore,” Bajaj Auto said in exchange filing.

 

Additionally, the board recommended a dividend payout of ₹150 per share and fixed May 29 as the record date for the same.

 

"The board of directors has recommended a dividend at the rate of ₹150 per share (1500 per cent) of face value of ₹10 each on equity shares for the financial year ended March 31, 2026. The said dividend, if approved by the shareholders at the ensuing Annual General Meeting, will be credited/dispatched on or around July 24, 2026," the same filing said. The AGM  will be held on July 21.

 

"The Dividend, if declared, shall be paid to the equity shareholders whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, 29 May 2026, which is the Record Date fixed for the purpose," the filing added.

 

Brokerages' view on Bajaj Auto  Bajaj Auto’s Q4 FY26 performance was healthy and one of the best in the OEM space who have reported numbers till date. It comes across as a diversified, multi-engine mobility company with strong earnings quality, where exports, premium motorcycles, electric vehicles, and commercial vehicles (3Ws) are all scaling simultaneously, ICICI Securities said in a note.

 

In the domestic motorcycle space, Bajaj Auto has guided for 7-9 per cent volume growth for FY27E, while exports continue to do well and are expected to outperform domestic growth. The company’s strategic positioning in high-growth, high-margin segments—particularly 150cc+ motorcycles, electric three-wheelers, and export markets like Latin America provides structural resilience, and with margins consistently above 20 per cent. 

 

With strong cash generation and disciplined capital allocation, Bajaj Auto appears well placed to sustain profitable growth and navigate volatility better than most peers in the auto sector, ICICI Securities said.

 

On the buyback, analysts at JM Financial Institutional Securities said that the repurchase price of ₹12,000 per share (+16.4 per cent to Wednesday’s closing price) may offer limited effective upside after accounting for applicable capital gains taxes. 

 

“At 22.6 times our FY28E EPS, the stock trades above its long-term average multiple of 20 times. We marginally revise estimates and maintain REDUCE, valuing at 21x FY28E EPS to derive a target price of ₹9,600 (vs ₹9,510 earlier),” the brokerage firm said in Q4 result update.  Analysts at Nomura retained target P/E at 22x core FY28F EPS, and roll forward to Jul-27F, near the middle of its expected trading band of 20-25x. Q ASPs slightly ahead; EV 2Ws and new bike launch are growth drivers; margin risk in the near term, the brokerage firm said with a SOTP-based target price at ₹10,928.   =================== 

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