Bajaj Auto gains on multiple stock upgrades post Q2 results; outlook here

Bajaj Auto shares rose after the company reported a 53 per cent jump in its consolidated net profit to ₹2,122.03 crore in the September quarter

Shares of Bajaj Auto traded higher on Monday as the stock bagged multiple ratings upgrades from analysts after it reported a 53 per cent year-on-year (Y-o-Y) in the September quarter. 

 

The company's stock rose as much as 1.34 per cent during the day to ₹8,838 per share, the biggest intraday rise since October 31 this year. The Bajaj Auto stock pared gains to trade 0.21 per cent higher at ₹8,740 apiece, compared to a 0.39 per cent advance in Nifty 50 as of 9:53 AM. 

 

Shares of the company rose for the second straight session and currently trade at 5.6 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 0.5 per cent this year, compared to an 8 per cent advance in the benchmark Nifty 50. Bajaj Auto has a total market capitalisation of ₹2.44 trillion.   READ LATEST STOCK MARKET UPDATES LIVE

 

Bajaj Auto Q2 results 

Bajaj Auto reported a 53 per cent jump in its consolidated net profit to ₹2,122.03 crore for the second quarter of the financial year 2025-26 (Q2FY26), from ₹1,385.44 crore in the same quarter last year. Sequentially, however, profit declined 4 per cent from ₹2,210.44 crore in Q1FY26.

 

The automaker's revenue from operations for the quarter stood at ₹15,734.74 crore, up 18.8 per cent year-on-year (Y-o-Y) and 19.8 per cent sequentially. The company's overall sales in Q2FY26 grew 6 per cent to 1.29 million units from 1.22 million units in the same quarter last year.

Analysts on Bajaj Auto earnings

Antique Stock Broking resumed coverage on Bajaj Auto with a 'Buy' rating and a target price of ₹9,900, implying a 14 per cent upside from current levels.

 

The brokerage noted that while recent concerns over domestic market share loss and electric vehicle supply chain disruptions have weighed on sentiment, these factors are largely priced into the stock. In the second quarter of FY26, Bajaj Auto’s revenue, Ebitda, and profit after tax grew 14 per cent, 15 per cent, and 12 per cent year-on-year, respectively, marginally above consensus estimates.

 

Antique expects a robust upswing ahead, supported by strong export growth, the scaling up of the electric vehicle portfolio towards profitability, new product launches aimed at stabilising domestic market share, and continued operational and financial discipline.  ALSO READ | Transformers and Rectifiers tanks 20%; why smallcap stock hit 52-week low? 

Choice Broking said Bajaj Auto’s margins may face mild near-term pressure due to rising costs of metals and noble metals. However, it expects improved product mix and disciplined export pricing to provide support over the medium term.

 

The brokerage revised its earnings per share estimates for FY26 and FY27 upwards by around 2.8 per cent and 1.5 per cent, respectively, citing domestic recovery, strong export growth, and market share gains in key segments. Choice Broking maintained its target price at ₹9,975 and upgraded the rating on the stock from 'Add' to 'Buy.'

 

Motilal Oswal said that Bajaj Auto’s margins beat estimates in the September quarter, supported by an improved product mix. It added that a recovery in exports and a healthy ramp-up in the Chetak and three-wheeler segments are key positives, though market share losses in domestic motorcycles, particularly in the 125cc and above segment, remain a concern. Motilal Oswal maintained a 'Neutral' rating on the stock with a target price of ₹9,070.