Bajaj Auto Q4FY26 beat lifts stock 1%: Key takeaways

Stock reaction and what drove the move

Bajaj Auto Ltd shares traded higher on Thursday after the company’s Q4 FY26 results came in ahead of Street expectations. In early trade, the stock was at Rs 10,375, up 0.54% on the day. The move followed a 2.7% gain in the previous session, which came ahead of the results announcement. Over the last one year, Bajaj Auto has rallied nearly 35%, sharply outperforming the Nifty 50, which was broadly flat over the same period. Brokerages, while largely constructive after the quarter, pointed to two countervailing forces: export momentum and margin resilience on one hand, and near-term cost inflation risks and valuation comfort on the other.

Q4 FY26 numbers: PAT more than doubles

Bajaj Auto reported a sharp jump in its Q4 FY26 consolidated performance. Profit after tax (PAT) more than doubled to Rs 3,662 crore, up 103% year-on-year, while revenue from operations rose 41% year-on-year to Rs 17,832 crore. The company said the quarter’s performance was supported by record volumes, export growth, an improved product mix, and rising contribution from electric vehicles. It also reported broad-based double-digit expansion across domestic motorcycles, electric two-wheelers, three-wheelers, and exports during the quarter.

One-time gain and consolidation impact

The company flagged that the Q4 FY26 numbers are not strictly comparable with the year-ago period due to the consolidation of Bajaj Auto International Holdings AG (BAIHAG). BAIHAG, the holding entity for KTM and Bajaj Mobility AG, was consolidated as a subsidiary effective November 18, 2025. This consolidation led to a one-time gain of Rs 1,195 crore from fair-value remeasurement and reclassification of foreign currency translation reserves. The one-time gain was cited as a material factor that boosted reported profitability for the quarter.

Full-year FY26 snapshot

For the full year, Bajaj Auto reported consolidated revenue from operations of Rs 62,905 crore, up 23% year-on-year. Full-year PAT rose 47% to Rs 10,744 crore. The company also pointed to favourable currency movements as one of the tailwinds supporting the quarter, alongside volumes and mix.

Exports: volumes above 600,000 and $1.2 billion annual revenue

Exports remained a key growth driver, with the company crossing the 600,000-unit mark for the quarter again. Export revenues grew over 30% year-on-year, supported by another record performance from the Pulsar range. Management commentary highlighted that Latin America continued to set new benchmarks, and that both Africa and Asia posted strong double-digit growth. Rakesh Sharma, executive director at Bajaj Auto, said full-year export revenue was the highest ever at $1.2 billion.

He also gave a market-specific update on Nigeria, which the company called its largest market. Nigeria was said to be operating at about 50% of its peak in 2022, with volumes having moved from 75,000 units earlier to about 36,000 units now. Management added that Nigeria “arrested its decline” in Q4 and was almost at par with Q4 last year.

Supply chain constraints and cost inflation signals

Management said supply chain issues affected availability during the quarter. Sharma cited difficulties around LPG shortage, manpower availability, and complexity in outbound logistics, especially to overseas markets. According to the company, this impaired availability by about 10% to 15%.

On costs, Sharma said the cost environment rose about 3% to 5% during the quarter, driven by metals. The company said it had taken up prices with effect from April 1. It also noted that US dollar realisation rates were reaching Rs 95 to the dollar, which management described as helpful in managing cost-side inflation.

Brokerages: mostly constructive, but valuation and inflation risks flagged

Brokerages largely retained positive or constructive views after the Q4 FY26 performance, while warning about near-term pressures from rising commodity costs and limited valuation upside after the rally.

• Bernstein maintained an ‘Outperform’ rating with a target price of Rs 11,000, citing Bajaj Auto’s ability to sustain margins and a positive export outlook.
• CLSA retained ‘Outperform’ with a target price of Rs 10,149, highlighting reported 6% revenue growth, 3% volume growth, and a 12 percentage point year-on-year market share gain in electric two-wheelers to 25%.
• Jefferies kept a ‘Hold’ rating with a target price of Rs 8,000, while expecting 13% EPS CAGR for FY25-28E and flagging valuation concerns at 26x FY26E P/E.
• Goldman Sachs said Q4 results were in line, raised FY26-28 EPS estimates by up to 4%, and increased its 12-month price target to Rs 9,600 from Rs 9,300, implying 8.2% upside. Goldman also projected a dividend payout ratio of 70% to 80% and dividend yield rising from 2.2% in FY25 to 3.9% by FY28E.

Key numbers at a glance

Why this quarter matters for investors

The quarter reinforced two drivers that brokerages repeatedly highlighted: exports and margins. Export performance mattered not only for volumes, but also because currency movements and realisation rates were discussed as a partial offset to cost inflation. At the same time, management’s disclosure of supply chain constraints and a 3% to 5% cost rise, driven by metals, kept attention on near-term margin risks.

The stock’s strong run-up over the past year also shaped the post-results debate. Several brokerages explicitly pointed to limited valuation upside after the rally, even while maintaining constructive medium-term views tied to export momentum, product mix, and electric vehicle contribution.

Conclusion

Bajaj Auto’s Q4 FY26 results beat expectations, supported by record volumes, export growth, and product mix, while the reported PAT was also lifted by a one-time consolidation-linked gain. Brokerages stayed broadly positive on exports and margin resilience, but highlighted near-term inflation and valuation as key watchpoints. Investors are likely to track how price actions from April 1, currency realisations, and supply chain availability influence profitability in the next few quarters.