Bajaj Auto shares rise 1% as Q2 net profit jumps 53% YoY. Should you buy, sell or hold?

Shares of Bajaj Auto jumped 1.1 per cent to their day’s high of ₹8,838.65 on the BSE on Monday, November 10, after the two-wheeler manufacturer reported a 53 per cent year-on-year (YoY) surge in its consolidated net profit for the second quarter of FY26, posting a profit after tax (PAT) of Rs 2,122 crore for Q2FY26, up from ₹1,385 crore in the same period last year.The PAT is attributable to the owners of the company.

Revenue from operations stood at ₹15,735 crore during the quarter under review, registering a 19 per cent rise over Rs 13,247 crore reported in the year-ago period. The company said the quarterly revenue marked a new company high, crossing the ₹15,000 crore mark, supported by a richer mix of vehicles and record-high sales of spare parts.

The company noted that strong performance across segments helped offset challenges from the rare earth magnet constraints, which had impacted its fastest-growing electric vehicle portfolio.

Bajaj Auto said the quarter’s results were a reflection of its resilient and adaptable business model.

On a sequential basis, however, the consolidated PAT saw a 4 per cent decline from ₹2,210 crore in Q1FY26. The topline, on the other hand, grew by 20 per cent quarter-on-quarter compared to ₹13,133 crore in the April-June quarter.

Here’s what brokerages are saying:

Nuvama:

Brokerage firm Nuvama maintained a ‘Hold’ rating on Bajaj Auto and slightly revised its target price to ₹9,700 from ₹9,800 earlier. Nuvama stated that the Q2FY26 revenue and EBITDA growth of 14 per cent and 15 per cent YoY, respectively, were in line with expectations.

Nuvama also projected a 7 per cent volume CAGR for the company over FY25–28, with domestic growth estimated at 2 per cent and export growth at 13 per cent. It further noted that the domestic two-wheeler market share may dip from 12 per cent in FY25 to 10 per cent in FY28. Export demand is expected to remain strong, driven by markets in Latin America and Asia.Revenue/EBITDA CAGR for the period FY25–28 is projected at 11 per cent/12 per cent, while return on equity (RoE) is estimated at 28 per cent.

Choice Broking

Choice Broking has maintained a Buy rating on Bajaj Auto (BJAUT), with a target price of ₹9,975, citing the company’s best-ever quarterly performance in Q2FY26.

In its commentary, the brokerage highlighted that Bajaj Auto delivered its strongest-ever quarterly results, registering a 14 per cent YoY revenue growth. This performance was driven by a 24 per cent YoY increase in export volumes and a 7.3 per cent YoY improvement in average selling price (ASP). However, domestic volumes declined 4.6 per cent due to pre-festive purchase deferment. Following GST rate rationalisation, domestic demand rebounded sharply, aided by strong festive season trends which saw double-digit growth across key segments.Choice Broking further noted, “With sustained demand momentum, premium segment launches and robust export traction, we expect this positive trend to continue in the next few quarters, strengthening BJAUT’s market position across both 2W and 3W segments.”HDFC Securities

HDFC Securities has upgraded Bajaj Auto to an ADD rating and raised its target price (TP) to ₹9,834. The revision comes in light of an improved domestic market outlook, bolstered by GST rate rationalisation, product up-trading, and new model launches that enhance the company’s product portfolio.

The brokerage also noted a structural improvement in exports, which reduces reliance on Nigeria, along with a pickup in three-wheeler (3W) exports and improved profitability in the electric vehicle (EV) segment. Supply-side challenges were reportedly overcome, and forex tailwinds provided additional support.

Based on these developments, HDFC Securities revised its target price-to-earnings (PE) multiple for Bajaj Auto’s core business from 21x to 23x (near +1 standard deviation of the 4-year mean) on its September 2027 EPS estimates. However, it cautioned that key risks include intense competition in the EV segment and potential cost-related challenges in the KTM turnaround.