Bajaj Auto (BJAUT IN) – Q2FY26 Result Update – Margin expansion and surge in exports – HOLD
Published on 10 Nov 2025
Bajaj Auto’s Q2FY26 standalone revenue grew by 13.7% YoY to Rs149.2bn, beating BBGe by 2.0% (met PLe) from a better mix (strong exports), realization (Fx & pricing) and highest-ever spares sales. Motorcycles saw sequential volume-led double-digit revenue growth with stable retail market share driven by top-end sports bikes. We marginally tweak volume and realization estimates and expect its overall volume and blended realization to grow at 7.7% & 5.4% CAGR, respectively, over FY25-28E translating to revenue/EBITDA/EPS CAGR of 13.6%/14.2%/14.3%. Retain “HOLD” rating with TP of Rs9,050 (previous Rs9,117), valuing it at 22x P/E on its Sep’27 earnings. The stock currently trades at a P/E of 23.0x/20.8x based on FY27E/FY28E consensus earnings.
