Bajaj Auto share price jumps 4% after auto major posted record revenue and profit in Q1FY27 results: Should you buy?

Bajaj Auto Q1 Results: Bajaj Auto share price jumped over 4% to its 52-week high of ₹10,839.45 on Wednesday, July 22, after the company posted robust earnings for the quarter ended June 2026 (Q1FY27).

Bajaj Auto on Tuesday reported strong earnings for the first quarter of FY27, with both consolidated and standalone financial performance reaching new highs on the back of record vehicle volumes, improved realisations and broad-based growth across domestic and export markets.

The two-wheeler and three-wheeler manufacturer posted a consolidated net profit of ₹3,225.63 crore for the April-June quarter, marking a 45.9% increase from the corresponding period last year. Consolidated revenue from operations climbed 65% year-on-year to ₹21,688.83 crore.

On the standalone front, Bajaj Auto delivered its highest-ever quarterly revenue and profit. Standalone net profit rose 42.3% to ₹2,982.84 crore in Q1 FY27 from ₹2,095.98 crore a year earlier, while revenue from operations increased 37% year-on-year to ₹17,243.72 crore from ₹12,584.45 crore.

At the operational level, earnings before interest, tax, depreciation and amortization (EBITDA) in the June quarter rose 45% to ₹3,595.6 crore from ₹2,482 crore. EBITDA margin improved to 21% from 19.7%.

The company attributed the record quarterly performance to its highest-ever sales volumes and improved realisations, supported by double-digit growth across its internal combustion engine (ICE) and electric vehicle (EV) portfolios. Growth was also driven by sustained momentum in both domestic and export markets, as well as across its two-wheeler and three-wheeler businesses.

"Broad-based performance underpinned by double-digit growth on all fronts sustained despite a challenging/disruptive external context and bearing testament yet again to the company's resilient and diversified business model," Bajaj Auto said.

Total sales volumes of the company in Q1FY26 increased 29% to 14,38,251 units from 11,11,237 units, YoY. Domestic sales grew 11%, while exports jumped 54%.

The auto stock has now soared 37.5% from its 52-week low of ₹7,879.45, hit in August 2025. It has risen 6% in 1 month, over 12% in 3 months, 15% in 6 months and 30% in the last 1 year. Moreover, the scrip has given multibagger returns in the long term, soaring 180% in 5 years.

Brokerage house Motilal Oswal has upgraded the stock to 'Buy' with a target price of ₹12,096, indicating an upside potential of 16%.

As per the brokerage, BJAUT demonstrated business resilience once again in 1Q as the company sustained its high margins despite the surge in input costs. Considering its healthy launch pipeline, MOSL expects BJAUT to gradually recover market share in the domestic motorcycle market.

"On the back of its healthy launch pipeline, we expect BJAUT to gradually recover market share in the domestic motorcycle market. Export outlook continues to be healthy, with management targeting 250k+ units per month in 2Q. Further, it continues to outperform even in EVs, both 2Ws and 3Ws.

Given a better-than-expected performance in 1Q and a strong outlook across segments, we raise our EPS estimates by 5%/9% for FY27/FY28. Overall, we expect BJAUT to deliver a CAGR of 20%/22%/22% in revenue/ EBITDA/PAT over FY26-28E. Given the strong earnings forecast, healthy return ratios, among-the-best dividend payouts and a resilient business model, valuations at 23x/19.6x FY27E/FY28E EPS appear attractive. We upgrade BJAUT to BUY (from Neutral) with a revised TP of INR12,096 per share, based on 24x FY28E core EPS," it explained.

Meanwhile, according to media reports, Jefferies maintained its 'Hold' rating on Bajaj Auto with a target price of ₹11,500 per share after the company's June-quarter earnings. The brokerage said EBITDA and profit after tax for the quarter were 5-7% ahead of its estimates, supported by better-than-expected operating margins.

Jefferies noted that Bajaj Auto's EBITDA margin expanded 10 basis points sequentially despit...