Bajaj Auto has announced its audited financial results for the quarter and year ended March 31, 2026, reporting record performance across volumes, revenues, and profits. The Board of Directors, at their meeting held on May 6, 2026, approved the audited standalone and consolidated financial results, recommended a final dividend, and approved a share buyback. Following the results, leading brokerages have shared their updated ratings and target prices, reflecting a broadly cautious stance despite the earnings beat.

Q4 Financial Performance vs Estimates

In the fourth quarter, Bajaj Auto delivered results that surpassed analyst expectations across key metrics. Standalone net profit came in at ₹27.46 billion against the year-ago period's ₹20.5 billion, beating the estimate of ₹26.3 billion. Revenue for the quarter stood at ₹160 billion compared to ₹121 billion in the same period last year, ahead of the estimate of ₹157 billion. EBITDA for the quarter was ₹33.23 billion versus ₹24.5 billion year-on-year, surpassing the estimate of ₹32.12 billion, while EBITDA margin expanded to 20.76% from 20.17% year-on-year, ahead of the estimated 20.5%.

Full-Year Financial Performance Highlights

For the full financial year, Bajaj Auto achieved its highest ever volumes, selling over 5 million units. Standalone revenue from operations reached an all-time high of ₹58,732 crore, registering a robust 17% year-on-year growth. Profit after tax (PAT) for the year stood at ₹9,825 crore, an increase of 21% compared to the previous year. The company's EBITDA for the year stood at ₹12,019 crore, with margins expanding to 20.5%.

Material Cost Headwinds and Pricing Response

Bajaj Auto expects rising material costs to have a 3.5% to 4% impact on revenue. However, the company noted that approximately 40% of this impact has been offset through price increases implemented since April 1, with additional relief expected from currency benefits. The company's ability to partially absorb cost pressures through pricing actions and favourable currency movements reflects its operational flexibility in managing margin headwinds.

Export Outlook and Q1 FY27 Growth Commentary

Bajaj Auto's export outlook remains strong, with the company aiming to exceed 200,000 to 220,000 units monthly. The company expects continued growth in Q1 FY27, driven by its strong market position in 150CC+ motorcycles, the EV sector, and steady sales in Latin America and Asia. However, motorcycle growth may moderate from 20% recorded in Q4 FY26 to 7-9% in the near term, attributed to inflationary pressures, price hikes, LPG shortages, and worker migration.

Analyst Ratings Post Q4 Results

Following the Q4 FY26 earnings announcement, major brokerages have updated their ratings on Bajaj Auto. While all three firms acknowledged the earnings beat and positive export trajectory, concerns over moderating domestic demand, commodity cost pressures, and valuation levels have kept the overall analyst stance cautious.

Citi maintains a Sell rating with a revised target price of ₹9,300, raised from ₹8,000. The brokerage noted that slightly better-than-expected Q4 results and a positive export outlook are offset by moderating domestic demand, elevated commodity cost pressures on margins, and stretched valuations offering limited room for error.

Morgan Stanley maintains an Underweight rating with a target price of ₹9,259, raised from ₹8,920. The firm highlighted an impressive Q4 with EBITDA beating estimates by 4–7% and a strong export outlook, noting that currency tailwinds and price hikes have offset commodity pressures. However, concerns remain over moderating domestic demand, particularly in the entry-level segment.

Jefferies maintains a Hold rating with a target price of ₹10,500, raised from ₹9,100. The brokerage cited strong Q4 growth and earnings beat, resilient domestic two-wheeler demand with an expected 8% industry volume CAGR over FY26–29, and robust export growth as positives. Rising commodity prices, however, may pressure near-term margins.

Dividend and Shareholder Returns

The Board has recommended a dividend of ₹150 per share (1500%) on equity shares of face value ₹10 each for the financial year ended March 31, 2026. The company has fixed Friday, May 29, 2026 as the record date for determining entitlement of members to the dividend. Payment of the dividend is scheduled to be credited or dispatched on or around July 24, 2026.

Share Buyback Approval and Clarification

The Board has approved a buyback of up to 4,694,000 fully paid-up equity shares, representing up to 1.68% of the total paid-up equity share capital, at a price of INR 12,000 per equity share. In a clarification dated May 6, 2026, the company specified that the aggregate buyback size is up to INR 5,632.80 crore, correcting the earlier rounded figure of INR 5,633 crore. The Buyback Size represents 16.93% and 15.59% of the aggregate of the fully paid-up equity share capital and free reserves of the Company as per the latest audited standalone and consolidated financial statements as on March 31, 2026, respectively.

Corporate Governance

The Annual General Meeting is scheduled to be held on Tuesday, July 21, 2026. The audit reports for the standalone financial results were submitted with an unmodified opinion. The consolidated results received a qualified opinion due to the recent acquisition of a controlling stake in Bajaj Auto International Holdings AG. The filing was signed by Rajiv Gandhi, Company Secretary & Compliance Officer.

Bajaj Auto 's Board of Directors, at its meeting held on 06 May 2026, approved the re-designation and appointment of Mr. Rakesh Sharma (DIN: 08262670) as Joint Managing Director of the company. Mr. Sharma, who presently serves as Executive Director, will assume the new role with effect from 01 June 2026, subject to the approval of the company's shareholders. The decision was taken based on the recommendation of the Nomination and Remuneration Committee. The Board Meeting commenced at 02:00 p.m. and concluded at 05:30 p.m.

Appointment Details

The key parameters of Mr. Rakesh Sharma's appointment as Joint Managing Director are outlined below:

Profile of Mr. Rakesh Sharma

Mr. Rakesh Sharma graduated from the Indian Institute of Management, Ahmedabad in 1986 and brings over 40 years of professional experience to his new role. He joined Bajaj Auto in October 2007 as President of International Business and has since held several key leadership positions over his 19 years with the company, including leading the International Business for over 10 years.

In July 2018, he was elevated to the role of Chief Commercial Officer, taking on responsibility for leading the front-end Business Units. He was subsequently appointed as Executive Director in January 2019. His career trajectory at Bajaj Auto reflects a consistent progression through roles of increasing strategic importance.

Expanded Responsibilities as Joint Managing Director

In his capacity as Joint Managing Director, Mr. Sharma will continue to oversee business responsibilities while also taking on expanded functional oversight. The following functions will now report directly to him:

• Digital & IT function – responsible for driving the company's digital transformation journey
• Legal function – overseeing the company's legal affairs

Mr. Rakesh Sharma will continue to report to Managing Director Mr. Rajiv Bajaj in his new role.

Regulatory Compliance

The appointment has been disclosed pursuant to Regulation 30 read with para A, part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details required under Regulation 30 of the Listing Regulations have been disclosed in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30 January 2026. The company has also confirmed, in accordance with BSE Circular No. LIST/COMP/14/2018-19 and NSE Circular No. NSE/CML/2018/24 dated 20 June 2018, that Mr. Rakesh Sharma has not been debarred from holding the office of Director by any order of SEBI or any other such authority. The disclosure of relationships between directors has been stated as NIL.