Bajaj Auto Ltd Q2 FY26 – When Your Motorcycle Sells More Than Your Competitors’ Confidence
1. At a Glance
Bajaj Auto Ltd just dropped its Q2 FY26 numbers, and the engines are roaring louder than ever. The Pune-based two and three-wheeler juggernaut, with a market cap of ₹2,43,555 crore, reported quarterly revenue of ₹15,735 crore and a PAT of ₹2,122 crore, marking a YoY growth of 53.2% in profits and 18.8% in sales. Not bad for a company that still calls itself “Hamara Bajaj” while owning 48% of Austria’s KTM — a brand so fancy that their bikes sound like caffeine-powered jet turbines.
At a stock price of ₹8,722, Bajaj Auto trades at a P/E of 29.2x with a ROE of 22.8% and a ROCE of 28.1%, which means this isn’t your average auto stock; it’s that one relative who earns in crores but still takes his Activa to work. The company’s dividend yield is 2.41%, and its debt-to-equity ratio of 0.58 shows that it borrows more carefully than a middle-class dad signing his first home loan.
If that’s not enough torque for you — it also just completed a ₹4,000 crore buyback at ₹10,000 per share. Translation? The management thinks their own stock is cheaper than a Pulsar’s fuel tank refill.
Fasten your seatbelts, we’re about to deep dive into the most premium motorcycle story on Dalal Street.
2. Introduction – The Legend on Two Wheels
Once upon a time, in a land full of scooters named after goddesses and petrol that cost ₹40 per litre, Bajaj Auto built India’s first motorcycle empire. Fast forward to FY26 — now they don’t just make motorcycles; they make statements on wheels.
From the humble CT 100 that farmers love, to the Triumph Speed 400 that IT guys dream of, Bajaj Auto covers every socio-economic category short of people riding unicorns. Its reach is so global that their two-wheelers are exported to 79 countries, many of which don’t even have functioning governments but definitely have Bajaj bikes.
In a world where EV startups burn cash faster than their batteries charge, Bajaj’s Chetak EV quietly clocked 115,700+ sales in FY24, compared to just 8,000 in FY22. That’s not a pivot — that’s a wheelie.
The company isn’t just running — it’s revving. With exports to 80 countries, a growing EV lineup, and a soon-to-be full control over KTM, Rajiv Bajaj and team have found the sweet spot between desi jugaad and European engineering arrogance.
3. Business Model – WTF Do They Even Do?
Think of Bajaj Auto as a portfolio of mobility egos:
Motorcycles (68% revenue FY24) – From commuter bikes (Platina, CT) to mid-segment show-offs (Pulsar, Avenger, Dominar), and then the imported charm (KTM, Triumph).
Three-Wheelers (25-30% revenue) – Because someone has to take you to the bus stop. Bajaj Auto owns ~78% share in ICE 3-wheelers and a 46.5% share in cargo 3-wheelers — basically every auto you’ve ever sat in is probably theirs.
Chetak EVs – The company’s eco-friendly alter ego that’s growing faster than your electricity bill.
Exports (32% revenue) – Bajaj’s global footprint is wild — from Ethiopia to Peru, there’s probably a Bajaj parked next to a camel or a tuk-tuk.
And if that wasn’t enough, they’ve gone all financial now — Bajaj Auto Credit Ltd started operations in FY24, disbursing two-wheeler loans across 8 states. Because what’s better than selling bikes? Financing them too.
They’ve also set up a new manufacturing plant in Brazil (FY24) with a capacity of 20,000 units/month, proving once again that when others are thinking of local assembly, Bajaj is already opening shop in the samba capital.
4. Financials Overview
Metric (₹ Cr)
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
15,735
13,247
13,133
18.8%
19.8%
EBITDA
2,829
2,073
2,793
36.5%
1.3%
PAT
2,122
1,385
2,210
53.2%
-4.0%
EPS (₹)
75.99
49.61
79.15
53.2%
-4.0%
Annualised EPS = ₹304. At the CMP of ₹8,722, that’s a P/E of ~28.7x, which is lower than TVS but still pricier than Hero MotoCorp — because performance costs.
Commentary: Bajaj Auto’s Q2FY26 was less about recovery and more about dominance. Even with exports slowing, domestic growth and premiumization saved the day. Basically, while others are complaining about raw material inflation, Bajaj is counting the zeros in its PAT.
5. Valuation Discussion – Fair Value Range
Let’s crunch it educationally, not emotionally:
a) P/E Method Industry average P/E = 39x (per screener) Bajaj P/E = 29x; EPS (FY26 annualised) = ₹304
Lower bound = 25x × 304 = ₹7,600
Upper bound = 35x × 304 = ₹10,640
b) EV/EBITDA Method EV = ₹2,61,250 Cr EBITDA (FY26E annualised) = ₹11,316 Cr → EV/EBITDA = ~23x
Applying fair range 18–22x:
Lower = 18 × 11,316 = ₹2,03,688 Cr
Upper = 22 × 11,316 = ₹2,49,000 Cr → Equity value = ₹7,900 – ₹9,700 per share (approx.)
c) DCF (Simplified) Assume 10% growth, 12% discount rate, terminal at 3% — fair value ~₹8,500–₹9,200.
Fair Value Range (educational only): ₹7,600 – ₹10,600.
Disclaimer: This range is for educational purposes only and not investment advice. If you use it to buy a Pulsar instead of a stock, that’s on you.
6. What’s Cooking – News, Triggers, Drama
Bajaj Auto’s newsroom in FY25–26 reads like a Netflix thriller:
KTM Takeover: Through its subsidiary BAIH BV, Bajaj just pulled off a €600M restructuring of KTM’s parent (Pierer Mobility AG), getting majority control. Imagine the Indian team now dictating terms to the Austrians — that’s poetic globalization.
