Bajaj Auto (BJAUT IN) – Q2FY27 Result Update – Strong Topline and Bottomline Performance Continues – ACCUMULATE
Published on 28 Oct 2026
BJAUT reported strong Q2FY27 standalone numbers with beat on most line items. Margins remained consistently strong and the refreshed portfolio with the new launches are expected to complement each other as the retails ramp-up. Cost reductions, calibrated pricing actions, improving mix, INR depreciation and EV capacity and network expansion should help sustain margins. It aims to grow share in its strategic 125cc+ segment with willingness to trade off market share in the entry segment motorcycles that offer lower profitability and lesser flexibility for innovation/ R&D although its 75-125cc domestic motorcycle segment form more than half of its overall 2W volumes (as of FY26), putting pressure on its market share. We estimate overall volume/blended realization CAGR of 8.6%/5.7% over FY26-29E translating to revenue/EBITDA/APAT CAGR of 14.7%/15.9%/14.7%. Retain ‘Accumulate’ with TP of INR11,700 (previously INR10,800), valuing it at 23x P/E on its Sep’28 standalone EPS.
