Bajaj Auto delivered an impressive set of numbers in the third quarter of FY26, showing what many analysts are calling a near-perfect example of operational efficiency. The company reported record revenue, strong profit growth, and a clear recovery in exports. However, despite the solid performance, the stock market response remains mixed due to concerns over expensive valuations.
Bajaj Auto Q3 FY26: Key Financial Highlights
For the first time, Bajaj Auto crossed the ₹15,000 crore revenue mark in a single quarter, driven by broad-based growth across segments.
| Metric (Consolidated) | Q3 FY26 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹16,204 Cr | ₹12,689 Cr | +23% |
| EBITDA | ₹3,161 Cr | ₹2,591 Cr | +22% |
| EBITDA Margin | 20.8% | 20.4% | +40 bps |
| Net Profit (PAT) | ₹2,750 Cr | ₹2,196 Cr | +25% |
The company’s standalone profit included a one-time expense of ₹61.32 crore linked to changes in employee benefits under the new labour codes. Excluding this, profit growth was even stronger.
Growth Driven by Exports, EVs, and Premium Bikes
Bajaj Auto saw a rare situation where all major engines of growth worked together. Exports crossed 6 lakh units after a long slowdown, supported by strong demand from Africa and Latin America.
The company’s electric vehicle push also gained speed. The Chetak electric scooter recorded nearly 70% sequential growth, and EVs now account for 25% of domestic revenue. Premium motorcycles in the 125cc and above category continued to support margins.
Cash Position and Efficiency Remain Strong
Bajaj Auto generated over ₹5,200 crore in free cash flow during the first nine months of FY26. Even after paying dividends and investing in subsidiaries, it holds a healthy cash balance of around ₹15,000 crore.
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Analyst View
Brokerages remain divided. Firms like Goldman Sachs and CLSA remain positive, citing stable margins and export tailwinds. On the other hand, UBS and Jefferies flag valuation concerns, noting the stock trades above its long-term average.
Bajaj Auto remains a high-quality business delivering consistent results, but at current levels, the stock offers limited comfort for fresh investors.
Disclaimer
Educational Purposes Only: This analysis is intended for informational and educational purposes. It does not constitute professional financial, investment, or legal advice.
Risk Warning: Investing in the stock market involves substantial risk. Performance data represents past results and is not a guarantee of future returns. Stock prices can fluctuate significantly based on market conditions, company performance, and macroeconomic factors.
Sources & References
- Official Press Release: Bajaj Auto’s “Results for Q3 / 9M FY26” (Jan 30, 2026).
- Regulatory Filings: Disclosures made to the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
- Institutional Brokerage Notes: Consensus views and price targets from Goldman Sachs, CLSA, UBS, and Jefferies.
Yogesh Kolhe is a business and market news writer covering the share market, company earnings, and gold and silver price movements, with a strong focus on the automobile sector. A Mechanical Engineering graduate with 5 years of share market experience, he provides data-driven, reliable insights into market and industry trends.
