Bajaj Auto Share Price Live Updates: Bajaj Auto reports negative returns for the month
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Mint
16 hours ago
- Mint
Bajaj Auto skids in Q1; bets on exports and festive season for revival
Bajaj Auto Ltd's struggles with muted profitability persisted in the June quarter (Q1FY26). A notable slowdown in domestic two-wheelers (2W) led to a mere 3% year-on-year improvement in Ebitda to ₹2,500 crore. Revenue rose 6% to ₹12,584 crore thanks to improved realisation, led by higher exports and sales of premium motorcycles. Average realisation per vehicle was up about 5% to ₹1.13 lakh, but Ebitda per vehicle increased by less than 2% to ₹22,300, weighed down by higher raw-material costs and other expenses. Consequently,Ebitda margin fell below 20% for the first time in seven quarters, coming in at 19.7%, down 53 basis points year-on-year. Domestic slowdown continues July auto sales numbers indicated a continued slowdown in the domestic market, with 2W volumes falling 18% year-on-year. Three-wheelers (3W) did better, with 4% growth. Exports of 2Ws and 3Ws grew 22% and 79%, respectively, pushing total volumes up 3%. Management said it expected exports to grow at 15-20% in FY26, and domestic sales at 5-6%, which also seems difficult. It attributed stress in domestic 2W market to lower urban disposable incomeand the postponing of purchases to the upcoming festive season. Total exports grew by 16% in Q1, against an 8% decline in domestic volumes, leading to marginal aggregate growth of 1%. EV boost may be short-lived Growth in the electric vehicle (EV) portfolio remained robust, accounting for more than 20% of domestic revenue against 14% a year ago. Nuvama Research projected the company would record a 20% compound annual growth rate (CAGR) in EVs over FY25-28. However, Bajaj facessupply disruptions owing to the unavailability of rare earth magnets, which may lead to a production shortfall of 25-50% in Q2. Investors must also keep an eye on developments related to the government's mandate for all models of bikes toswitch to the anti-lock braking system (this currently applies only to 125cc+ bikes) from 1 January 2026. Whilethe acquisition of KTM AG, which is in the process of being approved, would expand Bajaj's presence in the premium segment worldwide, much would depend on its ability to turn the business around. Stock lacks re-rating triggers Marred by bleak earnings and downgrades, Bajaj Auto stock has declined nearly 17% over the past year, far more than the 6% fall in the Nifty Auto index. 'While a recovery in exports and a healthy ramp-up of Chetak and 3Ws are key positives, its market share loss in domestic motorcycles, especially in its bread-and-butter 125cc+ segment, remains the key concern. Further, the ramp-up of its CNG bike, Freedom, has been slower than expected," said a Motilal Oswal Financial Services report dated 7 August. The stock trades at 24 times estimated FY26 earnings, according to Bloomberg data, and currently lacks re-rating triggers.
Hindustan Times
17 hours ago
- Hindustan Times
India's Bajaj Auto flags lower-than-planned EV output on rare earth magnet crunch
Bajaj Auto will not meet its electric vehicle delivery target in the second quarter as the homegrown two-wheeler giant is grappling with a shortage of rare earth magnets. The company estimates that it will be able to deliver about 50-60 per cent of its electric two-wheeler plans in this quarter. This comes as the entire auto industry is facing a crunch of rare earth magnets. Bajaj Auto's CFO Dinesh Thapar said in a post-earnings call that the OEM is working on a host of alternatives to soften the production blow, including using motors made with more abundant light rare earths, rather than heavy rare earths. "At this point in time, it looks like we might be able to deliver about 50-60 per cent of our electric two-wheeler plan for this quarter and about 70-80 per cent of the electric three-wheeler plan," he said. Thapar also added that Bajaj should be in a position to de-risk itself from China's rare earth magnet export ban by March this year. China, which controls more than 90 per cent of the global production of rare earth magnets, banned the export of this critical material in April this year. This move forced the automakers, including Bajaj Auto's peer TVS Motor Company, to search for alternatives amid a scramble for supplies. The EV output slump at India's second-largest electric scooter manufacturer comes at a time when most automakers boost production during a lucrative festive period that begins late August. Speaking on this, Thapar said that even if Bajaj unlocks a lot of supply after this, there's certainly likely to be an impact in terms of the festive loading that the company would have liked. Meanwhile, Bajaj Auto beat quarterly profit estimates on Wednesday, helped by a boost in exports as it resumed overseas shipments of its premium KTM motorcycles. The automaker also attributed the higher profit to improving margins at its e-scooter business Chetak and electric three-wheeler Gogo. Bajaj Auto reported a profit of 20.96 billion rupees ($239 million) for the April-June period, while analysts had expected 20.42 billion rupees, according to data compiled by LSEG. Check out Upcoming EV Bikes in India. First Published Date:
Time of India
20 hours ago
- Time of India
Bajaj Auto shares slip 4% after Q1 results. Should you buy, sell or hold?
Bajaj Auto shares slipped nearly 4% to Rs 7,879 in Thursday's intraday trade on the BSE, even after the automaker reported its Q1 results for FY26. The company posted a consolidated profit after tax (PAT) of Rs 2,210 crore, up from Rs 1,942 crore in Q1FY25 — a 14% year-on-year (YoY) increase. Revenue from operations rose 10% YoY to Rs 13,133 crore, compared to Rs 11,932 crore in the same quarter last year. The growth was driven by strong double-digit gains in exports, premium motorcycles, commercial vehicles, and the Chetak EV. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program EBITDA came in at approximately Rs 2,500 crore, with an EBITDA margin of 19.7%, down 50 basis points quarter-on-quarter, primarily due to lower dollar realisations. However, the decline was largely offset by an improved product mix and operating leverage, helping mitigate the impact of commodity inflation. The company said it maintained a healthy balance sheet and continued generating strong free cash flows, adding around Rs 1,200 crore during the quarter. Export revenue hit a record high, supported by broad-based, volume-led double-digit growth in Africa, Latin America, and Asia. The MENA region, however, remained subdued amid ongoing geopolitical tensions. Live Events Should you buy, sell, or hold Bajaj Auto's stock? Here's what brokerages say: Nuvama Nuvama has maintained a 'Buy' rating on Bajaj Auto, though it has revised the target price to Rs 9,400 from Rs 10,700 earlier. Nuvama retained a positive outlook following the Q1 EBITDA beat. It estimates a 7% volume CAGR over FY25–28E, driven by 3% domestic and 13% export growth. Export momentum is likely to continue, especially in Latin America and Asia. The brokerage projects 10% CAGR in revenue and EBITDA, with RoE at around 28%. The target price is based on 25x Sep-27E core earnings. Avendus Avendus has maintained a 'Buy' rating on Bajaj Auto, while trimming the target price to Rs 9,350 from Rs 9,700. Avendus forecasts a ~5% domestic volume CAGR and ~12% export volume CAGR for FY25–27E. Margins are expected to reach ~20% by FY27E, with EV portfolio expansion driving medium-term growth. The stock is valued at 25.5x FY27E EPS. JM Financial JM Financial maintained a 'Hold' rating on Bajaj Auto, with target price of Rs 8,700. JM Financial expects lower domestic volumes to be offset by higher exports and improved realisations. Despite trimming EBITDA margin estimates by 10bps for FY26E and FY27E, the brokerage maintains its Hold rating, with a Mar'27 TP of Rs 8,700, based on 22x FY27E EPS. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
