Bajaj Auto Ltd. shares surged to a fresh 52-week high of ₹11,310.75, climbing 3% following robust June quarter earnings. As of latest trading, the stock has rallied 9% in the past two days and hit a record high of ₹12,772.15 on September 27, 2024. The rally was driven by exceptional financial performance, with the company reporting a 46% year-on-year rise in consolidated net profit to ₹3,225.63 crore for Q1FY27, compared with previous estimates. Revenue from operations grew 65% to ₹21,688.8 crore, supported by record vehicle volumes and broad-based growth across domestic and export markets. In a post-earnings media interaction, Executive Director Rakesh Sharma revealed that the company expects good, solid double-digit growth in both two- and three-wheeler demand, and is aiming for the top position in the EV segment in the country. The company's average selling prices rose 11% year-on-year, while export volumes jumped 54% year-on-year and 20% quarter-on-quarter, with domestic volumes rising just 11% year-on-year. Bajaj Auto's exports grew more than twice as fast as the industry across its top 30 export markets, and nearly twice as fast in African markets where the industry itself grew 50%.
Multiple brokerages have issued bullish recommendations following Bajaj Auto's strong quarterly performance. Bernstein maintained an outperform call with a target price of ₹11,500, highlighting the company's disclosure quality and execution capabilities. CLSA maintained an outperform call with a target price of ₹12,068, noting that Q1FY27 EBITDA margin of 20.9% was 9 basis points higher quarter-on-quarter and 69 basis points ahead of estimates, despite a 4.5% rise in commodity costs. Jefferies retained a hold call with a target price of ₹11,500, stating that Q1 EBITDA and PAT rose 42-45% year-on-year and were 5-7% above estimates. Motilal Oswal upgraded Bajaj Auto to buy with a target price of ₹12,096, citing a promising outlook across segments and management's aim to increase monthly export volumes to around 250,000 units from Q2FY27 onward. According to CNBC TV18, 33 of the 48 analysts covering Bajaj Auto have a 'buy' call on the stock, with the consensus target price at ₹11,545 as of July 22, 6% higher than the current market price. Rakesh Sharma indicated that logistics and supply chain difficulties impaired availability by 10% to 15%, with the company looking at about 100,000 to 120,000 units more in exports, hoping to breach the 250,000 mark during the balance of this quarter.
TVS Motor Company shares rallied as much as 4.5% to hit a high of ₹3,974, following exceptional Q1 FY27 results. The company reported its highest-ever quarterly revenue of ₹16,295 crore, up 33.5% from ₹10,081 crore in the corresponding quarter of the previous fiscal. TVS Motor posted a record net profit of ₹1,019.4 crore, marking a 67.1% year-on-year increase from ₹776 crore in the June quarter of FY26, with the rise attributed to higher sales volumes, an improved product mix, sustained cost reduction, and operating leverage. The company also benefited from a fair valuation gain of ₹150 crore on investments compared with ₹28 crore in the corresponding quarter last year. The stock has soared 11% in the past three trading days and hit a record high today, surpassing its previous high of ₹3,970 touched on February 26, 2026. The company's average selling prices rose 8% year-on-year, while TVS Motor's flagged commodity cost inflation of 3.5% in the first quarter, with a further 0.5% rise expected in the second quarter, passing on about 30% of the cost pressure through price hikes. TVS Motor did not break out export volumes in the same way as Bajaj Auto, but said it expects very strong international business growth to continue into Q2, at a similar or slightly better pace.
Both companies are significantly expanding their electric vehicle capabilities and market presence. Bajaj Auto's EV business is bigger as a share of revenue, with EVs accounting for 30% of domestic revenue, up from 20% earlier, and the segment posted double-digit EBITDA margins. Its Chetak scooter has turned EBITDA positive and holds a 23-24% market share. The company's EV two-wheeler capacity is higher at 50,000 units currently, with plans to raise it to 60,000 immediately, while Chetak capacity is being raised to 16,000 units. Bajaj Auto is also expanding beyond its core two-wheeler business, with its KTM and Triumph brands under the 'Pro Viking' business unit, and a joint KTM-Triumph-Torq initiative expanding retail reach. TVS Motor did not disclose an EV revenue share but said its two-wheeler EV capacity stands at 40,000 units, with plans to raise it to over 50,000 units. Both companies expect EV growth to continue at a similar or slightly better pace in Q2. On the traditional two-wheeler side, TVS Motor is raising two-wheeler capacity to 8.3 million units from 6.8 million and three-wheeler capacity to 0.42 million units from 0.25 million by the fourth quarter. Bajaj Auto plans to raise total capacity by 25%, to 9 million units a year from 7 million, and is targeting monthly exports of over 2.5 lakh units from the second quarter. The FY27 capex will be ₹3,500 crore for TVS Motor, with management guiding that it would outperform double-digit industry growth in Q2FY27 with tailwinds from GST rationalisation, income-tax relief and improved affordability.
Both companies have outlined ambitious product launch strategies for FY27. Bajaj Auto has a wider set of new launches lined up, including a new 150cc Pulsar, 10 facelifts across the 160-400cc range, a new 125cc Pulsar, and two new 125cc brands to increase its market share. On the EV side, Bajaj has already launched the Agile and Lite Chetak 2501 variants, which make up 12% of its EV portfolio. Nuvama Research expects Bajaj's two-wheeler volumes to grow at 12% CAGR over FY26-28, driven by 8% domestic growth and 16% export growth, with the brokerage projecting a recovery in domestic two-wheeler market share from 10.7% in FY26 to 11% in FY28E. TVS Motor did not list specific new models in its latest conference call with analysts, instead focusing on defending its scooter market share, which stands at close to 40% in India, despite heavy discounting by a major rival. According to Nuvama, TVS's domestic two-wheeler market share rose from 14.8% in FY19 to 19.5% in FY26 and could reach 20.9% by FY28, supported by a stronger presence in scooters and premium motorcycles. Both companies projected a strong second quarter ending September 2026. TVS Motor expects the two-wheeler industry to keep up double-digit growth in Q2, possibly slightly better than in Q1, with domestic sales growing at a similar or slightly better rate. 33 of the 48 analysts covering TVS Motor have a 'buy' call on the stock, with a target price of ₹4,166.85, up 5.7% from the current levels. While the implied headroom for gains may be similar, Bajaj Auto seems to have better profitability, a bigger capacity expansion plan, and more export muscle than TVS Motor, which in turn, has a comfortable lead in the EV market.
