MarketsEconomic TimesMay 7, 2026· 1 min read
Bajaj Auto Posts Record Q4 Profit Amidst Robust Revenue Growth
Bajaj Auto recorded its highest-ever quarterly net profit of Rs 2,746 crore in Q4FY26, a 34% year-on-year increase, driven by a 32% rise in revenue to Rs 16,006 crore. EBITDA climbed 36% with margins expanding to 20.8%, leading to a 3% surge in the company's share price.
Bajaj Auto, a prominent Indian two-wheeler and three-wheeler manufacturer, reported its highest-ever quarterly net profit of Rs 2,746 crore for the fourth quarter of fiscal year 2026. This represents a substantial 34% year-on-year increase, signaling strong operational performance.
The company's revenue from operations for the quarter surged by 32% to Rs 16,006 crore, underscoring a significant expansion in sales volume and potentially improved pricing power. This top-line growth was accompanied by enhanced profitability metrics, as the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) climbed by an even more impressive 36%.
Crucially, Bajaj Auto's EBITDA margins expanded to 20.8%, indicating effective cost management and operational leverage. The positive financial results were well-received by the market, with the company's shares experiencing a more than 3% rise on the National Stock Exchange (NSE), trading at Rs 10,656 in Thursday's session. Brokerage firms like Jefferies and Nomura have reportedly issued bullish commentary following the robust performance, suggesting continued confidence in the company's outlook and market position within the automotive sector.
Analyst's Take
While strong Q4 results are positive, the real test for Bajaj Auto's valuation will be its ability to sustain margin expansion in a potentially more competitive domestic market, especially as raw material costs globally show signs of renewed volatility. The market might be underpricing the eventual impact of increasing EV adoption on traditional internal combustion engine sales, despite Bajaj Auto's own foray into electric vehicles.
