New Product Or Brand Launch
Expected: Next 4 monthsHIGH confidence
What: Product interventions: 15
“Seven interventions between November and now... with over 8 more such interventions being made in the next 4 months.”
Bajaj Auto Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +13.9%StrongRe-Entry
In , Bajaj Auto Ltd (Auto - 2 & 3 Wheelers) is outperforming Nifty 500 with +13.9% relative strength. Fundamentals: Strong.
Bajaj Auto Ltd Key Facts
- PE Ratio
- 27.8x
- Market Cap
- ₹2,99,384 Cr
- PAT Growth YoY
- +25%
- Revenue Growth YoY
- +23%
- OPM
- 23.0%
- RS vs Nifty 500
- +13.9%
PE: Mid ExpansionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 13% YoY — balance sheet strengthening
🌐FII stake decreased 4.7% this quarter
🏛️DII accumulation — stake up 4.1%
💰Trading 53% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. New Product Or Brand Launch
Next 4 monthsHIGH
2. Management Or Ownership Change
Q4 FY26HIGH
3. Market Share Gains
Q3 FY26MEDIUM
Key Risks
1. Inflation in noble metals (platinum, palladium, rhodium) and copper hitting marg
MEDIUM2. Currency devaluation in emerging markets remains a constant threat to export sta
LOW3. Withdrawal of PM E-DRIVE incentives in the Electric 3-wheeler segment impacting
LOWKey Numbers
PAT Growth YoY
+25%
Inflection Up
Revenue YoY
+23%
Accelerating
Operating Margin
23.0%
+200 bps YoY
PE Ratio
27.8
Current Price
₹10,712
Dividend Yield
1.40%
Fundamental Score
60/100
Strong
3Y PAT CAGR
+6%
Market Cap
3.0L Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Bajaj Auto Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 17, 2026
Management Or Ownership Change
Expected: Q4 FY26HIGH confidence
What: Ownership stake: 75%
Impact: Full consolidation
“Effective November 18, Bajaj ownership in KTM Austria increased to 75%... from the next quarter onwards, the KTM business will be fully consolidated”
Market Share Gains
Expected: Q3 FY26MEDIUM confidence
What: Chetak market share: 500 basis points
“We regained nearly 500 basis points of market share during the quarter and made a return back to the leadership cluster.”
Geographical Expansion
Expected: Q4 FY26MEDIUM confidence
What: Export markets: 108 countries
Impact: 200,000 units/month
“we are in 108 countries... we expect hopefully that we will turn in a 200,000 unit plus performance.”
Regulatory Approval Or License Win
Expected: OngoingMEDIUM confidence
What: PLI incentive: Highest bracket
Impact: Double-digit EBITDA
“we are operating on the highest bracket of the PLI incentive... EV business now delivers double-digit EBITDA margin”
Industry Growth Of 15% Vs Guided 6-8% Range.
HIGH confidence
What: Industry growth of 15% vs guided 6-8% range.
“But post the GST rationalization, Q3 has grown by about 15% in the industry.”
KTM Adventure Portfolio Grew Almost 4x Over The Same Period Last Year.
HIGH confidence
What: KTM Adventure portfolio grew almost 4x over the same period last year.
“KTM volumes were led by strong demand across the Adventure portfolio, which has grown almost 4x over the same period last year.”
Industry Growth Outlook Guidance Raised
HIGH confidence
What: 6% to 8% → 12% to 15%
“I was saying that we could be looking at something like 12% to 15% growth over the next few months.”
What Are the Key Risks for Bajaj Auto Ltd?
Earnings deceleration risks from management commentary
Inflation in noble metals (platinum, palladium, rhodium) and copper hitting marg
MEDIUMTrigger: Inflation in noble metals (platinum, palladium, rhodium) and copper hitting margins by 50-60 basis points.
Impact: PAT impact: 50-60 basis points on margin
Management view: Absorbing half through pricing actions and relying on currency tailwinds for the rest.
Currency devaluation in emerging markets remains a constant threat to export sta
LOWTrigger: Currency devaluation in emerging markets remains a constant threat to export stability.
Management view: Diversification across 108 countries to mitigate single-country risk.
Withdrawal of PM E-DRIVE incentives in the Electric 3-wheeler segment impacting
LOWTrigger: Withdrawal of PM E-DRIVE incentives in the Electric 3-wheeler segment impacting unit economics.
Impact: PAT impact: INR 23,000 to INR 25,000 per vehicle
Management view: Chose to hold pricing and absorb the impact to protect market share.
What Is Bajaj Auto Ltd's Management Saying?
Key quotes from recent conference calls
“we think that the industry should improve its growth rate by 6 to 8 percentage points in the medium term [Previous Industry Growth guidance]”
“Is this the kind of new run rate closer to 200,000 that we should expect going ahead? Rakesh Sharma: I think so in the immediate term. [Previous Export Run Rate guidance]”
“these 7 plus 8 interventions over the last 2 months and another 4-5 months going forward, will, I think, galvanize the whole share acquisition effort. [Initiative: Pulsar Portfolio Refresh]”
“For 2026, the focus will be on the operational turnaround of the business and putting the business back on track [Initiative: KTM AG Turnaround]”
What Did Bajaj Auto Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 15,220 crores
YoY +19%QoQ +1.5%
Revenue reached an all-time high driven by higher volumes, richer sales mix, and favorable currency realization.
EBITDA
INR 3,161 crores
YoY +22%Margin 20.8%
EBITDA margins expanded by 30 basis points sequentially, supported by operating leverage and PLI benefits.
PAT
INR 2,503 crores
YoY +19%QoQ +0.1%
PAT growth was 21% before a one-time exceptional charge of INR 61 crores related to the new labor code.
Other Highlights
• Export volumes crossed 600,000 units a quarter mark for the first time in nearly 4 years.
• EV portfolio contributes 25% of domestic revenues with double-digit EBITDA margins.
• Surplus cash stood at approximately INR 15,000 crores as of December end.
What Is Bajaj Auto Ltd's Management Guidance?
Forward-looking targets from management
Volume
Expecting 200,000 unit plus performance in Q4 exports.
Management Tone: BULLISH
Guidance Changes
RAISED
Industry Growth Outlook: 6% to 8% → 12% to 15%
Sustained momentum post-GST cut
How Fast Is Bajaj Auto Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +23% | +15% | Accelerating |
| PAT (Net Profit) | +25% | +6% | Inflection Up |
| OPM | 23.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 17, 2026.
Other Top Auto - 2 & 3 Wheelers Stocks Beating Nifty 500
Frequently Asked Questions: Bajaj Auto Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Bajaj Auto Ltd's latest quarterly results?
Bajaj Auto Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +25.2% (turning around (inflection up))
- Revenue Growth YoY: +23.0%
- Operating Margin: 23.0% (expanding)
Is Bajaj Auto Ltd's profit growing or declining?
Bajaj Auto Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +25.2% (latest quarter)
- PAT Growth QoQ: +29.6% (sequential)
- 3-Year PAT CAGR: +5.9%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Bajaj Auto Ltd's revenue growth trend?
Bajaj Auto Ltd's revenue growth trend is accelerating.
- Revenue Growth YoY: +23.0%
- Revenue Growth QoQ: +3.0% (sequential)
- 3-Year Revenue CAGR: +15.4%
How is Bajaj Auto Ltd's operating margin trending?
Bajaj Auto Ltd's operating margin is expanding.
- Current OPM: 23.0%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: +5.0% basis points
What is Bajaj Auto Ltd's 3-year profit and revenue CAGR?
Bajaj Auto Ltd's long-term compounding rates
- 3-Year Profit CAGR: +5.9%
- 3-Year Revenue CAGR: +15.4%
Is Bajaj Auto Ltd's growth accelerating or decelerating?
Bajaj Auto Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: -28.0% bps
- Sequential Acceleration: +33.6% bps
What is Bajaj Auto Ltd's trailing twelve month (TTM) performance?
Bajaj Auto Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹9,000 Cr
- TTM PAT Growth: +17.9% YoY
- TTM Revenue: ₹58,000 Cr
- TTM Revenue Growth: +15.7% YoY
- TTM Operating Margin: 20.3%
Is Bajaj Auto Ltd overvalued or undervalued?
Bajaj Auto Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 27.8x
- Price-to-Book: 7.7x
What is Bajaj Auto Ltd's current PE ratio?
Bajaj Auto Ltd's current PE ratio is 27.8x.
- Current PE: 27.8x
- Market Cap: 3.0 Lakh Cr
- Dividend Yield: 1.40%
How does Bajaj Auto Ltd's valuation compare to its history?
Bajaj Auto Ltd's current PE is 27.8x.
- Current PE: 27.8x
- Valuation Assessment: Significantly Undervalued
What is Bajaj Auto Ltd's price-to-book ratio?
Bajaj Auto Ltd's price-to-book ratio is 7.7x.
- Price-to-Book (P/B): 7.7x
- Book Value per Share: ₹1389
- Current Price: ₹10712
Is Bajaj Auto Ltd a fundamentally strong company?
Bajaj Auto Ltd is rated Strong with a fundamental score of 60.36/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +23.0% (10% weight)
- PAT Growth YoY: +25.2% (10% weight)
- PAT Growth QoQ: +29.6% (10% weight)
- Margins expanding (10% weight)
Is Bajaj Auto Ltd debt free?
Bajaj Auto Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹23,000 Cr
What is Bajaj Auto Ltd's return on equity (ROE) and ROCE?
Bajaj Auto Ltd's return ratios over recent years
- FY2023: ROCE 27.0%
- FY2024: ROCE 34.0%
- FY2025: ROCE 28.0%
Is Bajaj Auto Ltd's cash flow positive?
Bajaj Auto Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹3,000 Cr
- Free Cash Flow (FCF): ₹-4,000 Cr
- CFO/PAT Ratio: 25% (weak cash conversion)
What is Bajaj Auto Ltd's dividend yield?
Bajaj Auto Ltd's current dividend yield is 1.40%.
- Dividend Yield: 1.40%
- Current Price: ₹10712
Who holds Bajaj Auto Ltd shares — promoters, FII, DII?
Bajaj Auto Ltd's shareholding pattern (Mar 2026)
- Promoters: 55.0%
- FII (Foreign): 8.8%
- DII (Domestic): 14.3%
- Public: 21.6%
Is promoter holding increasing or decreasing in Bajaj Auto Ltd?
Bajaj Auto Ltd's promoter holding has increased recently.
- Current Promoter Holding: 55.0% (Mar 2026)
- Previous Quarter: 55.0% (Dec 2025)
- Change: +0.02% (increasing — positive signal)
How long has Bajaj Auto Ltd been outperforming Nifty 500?
Bajaj Auto Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Is Bajaj Auto Ltd a new momentum entry or an established outperformer?
Bajaj Auto Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Bajaj Auto Ltd?
Bajaj Auto Ltd has 8 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — A complete refresh of the Pulsar portfolio is intended to drive market share gains in the high-margin 150cc+ segment.
- Management Or Ownership Change — Full control and consolidation of KTM AG allows for direct operational turnaround and synergy capture.
- Market Share Gains — Rapid recovery in EV market share demonstrates brand resilience and supply chain stabilization.
- Geographical Expansion — Broad-based export growth across multiple continents reduces dependence on any single market like Nigeria.
What are the key risks in Bajaj Auto Ltd?
Bajaj Auto Ltd has 3 key risks worth monitoring
- [MEDIUM] Inflation in noble metals (platinum, palladium, rhodium) and copper hitting marg — Inflation in noble metals (platinum, palladium, rhodium) and copper hitting margins by 50-60 basis points.
- [LOW] Currency devaluation in emerging markets remains a constant threat to export sta — Currency devaluation in emerging markets remains a constant threat to export stability.
- [LOW] Withdrawal of PM E-DRIVE incentives in the Electric 3-wheeler segment impacting — Withdrawal of PM E-DRIVE incentives in the Electric 3-wheeler segment impacting unit economics.
What did Bajaj Auto Ltd's management say in the latest earnings call?
In Q3 FY26, Bajaj Auto Ltd's management highlighted
- "we think that the industry should improve its growth rate by 6 to 8 percentage points in the medium term [Previous Industry Growth guidance]"
- "Is this the kind of new run rate closer to 200,000 that we should expect going ahead? Rakesh Sharma: I think so in the immediate term. [Previous Expo..."
- "these 7 plus 8 interventions over the last 2 months and another 4-5 months going forward, will, I think, galvanize the whole share acquisition effort...."
What is Bajaj Auto Ltd's management guidance for growth?
Bajaj Auto Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: Not Given for Not Given
- Management tone: bullish
- Milestone: [RAISED] Industry Growth Outlook: 6% to 8% → 12% to 15%
Is Bajaj Auto Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Bajaj Auto Ltd may be worth studying
- Earnings growing at +25.2% YoY
- Revenue growth is accelerating — +23.0% YoY
- Operating margins are expanding — OPM at 23.0%
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹3,000 Cr
What is the investment thesis for Bajaj Auto Ltd?
Bajaj Auto Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +23.0% YoY
- Margins expanding
- Appears significantly undervalued
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Key risk: Inflation in noble metals (platinum, palladium, rhodium) and copper hitting marg
What is the future outlook for Bajaj Auto Ltd?
Bajaj Auto Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: accelerating
- Margin Trend: expanding
- Valuation: Significantly Undervalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Inflation in noble metals (platinum, palladium, rhodium) and copper hitting marg
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.