Bajaj Auto Ltd is experiencing its fifth consecutive session of decline, trading at ₹10,139 as of 13:19 IST on the NSE, representing a 0.05% decrease for the day. According to reports from Business Standard, the stock is underperforming the broader market, with the benchmark NIFTY up 0.16% at 23,252.15 and the Sensex at 74,103.12, also up 0.16%.
Motilal Oswal Financial Services (MOSL) has reiterated its 'Neutral' rating on Bajaj Auto, maintaining a target price of ₹10,025, even as it flagged a slowdown in domestic demand in the opening months of FY27. As reported by Moneycontrol, the brokerage's research report dated June 12, 2026 noted that near-term growth appears subdued, with the company management expecting the industry to post 7-9% growth in the near term. However, MOSL remains constructive on exports and steady earnings expansion, supported by strong traction in key overseas markets and the continued ramp-up of its electric Chetak portfolio.
Bajaj Auto delivered exceptional Q4 FY26 results, with standalone net profit surging 34% year-on-year to ₹2,746 crore compared to ₹2,049 crore in the previous year. The company's consolidated profit after tax reached ₹3,492.21 crore, significantly higher than ₹1,801.85 crore in Q4 FY25. Revenue from operations grew 32% YoY to ₹16,005 crore, while consolidated total revenue stood at ₹17,832.46 crore, up from ₹12,646.32 crore in the year-ago period. EBITDA increased 35.6% to ₹3,322 crore with margins improving by 58 basis points to 20.8%.
Despite domestic demand challenges, Bajaj Auto has demonstrated strong momentum in its electric vehicle segment, with the Chetak ramping up very well over the last few months, especially post the launch of the affordable C2501 model. As reported by Moneycontrol, driven by new launches and enhanced capacity, the company targets a leadership position in 2W EVs going forward. The brokerage expects exports to remain a key growth driver in FY27, with Bajaj Auto continuing to experience very strong demand from key markets like LATAM and ASEAN. The impact of rising input cost pressure is likely to be offset by price hikes taken in April and May 2026, along with favorable currency movements.
Motilal Oswal expects Bajaj Auto to post a 15%/15%/14% CAGR in revenue/EBITDA/PAT over FY26-28. At 24.6x/21.6x FY27E/FY28E EPS, the stock appears fairly valued, according to the brokerage's analysis. The target price of ₹10,025 is based on 22x FY28E core EPS. Despite the recent decline, Bajaj Auto has demonstrated strong 18.35% growth over the past year, significantly outperforming the 6.57% decline in NIFTY and the 10.3% increase in the Nifty Auto index.
