Bengaluru, May 6, 2026, 19:45 IST
Bajaj Auto Ltd posted a bigger-than-expected March-quarter profit on Wednesday and approved its largest share buyback, setting up a fresh test of investor appetite for India’s two-wheeler makers after a sharp run-up in the stock. The company said it would buy back shares worth ₹5,633 crore at ₹12,000 apiece, a buyback being a company’s purchase of its own stock from shareholders.
The timing matters because the Pune-based maker of Pulsar motorcycles and Chetak scooters is returning cash just as domestic demand, exports and premium motorcycles are doing more of the heavy lifting for the sector. Bajaj Auto shares settled higher before the results, which were announced after market hours.
Standalone profit rose 34% from a year earlier to ₹2,746 crore in the quarter ended March 31, topping the ₹2,524 crore average estimate compiled by LSEG. Revenue from operations rose about 32% to ₹16,006 crore.
Bajaj Auto’s board also recommended a final dividend of ₹150 per share, subject to shareholder approval. The record date for eligibility was fixed at May 29, and payment is expected by July 24, 2026, NDTV Profit reported, citing the company’s exchange filing.
The buyback will cover up to 46.94 lakh shares, or 1.68% of paid-up equity capital, at a 16.3% premium to Wednesday’s closing price, Reuters reported. Bajaj Auto said in a statement that the dividend and buyback together add up to about ₹9,825 crore, representing a payout of 100% of the year’s profit after tax.
Operating profit, measured by EBITDA — earnings before interest, tax, depreciation and amortisation — rose 36% to ₹3,323 crore. The margin improved to 20.8% from 20.2% a year earlier, helped by pricing, currency gains, product mix and operating leverage, according to company commentary cited by Mint.
Volumes did much of the work. Moneycontrol reported that overall volumes rose 24% year-on-year to 13,71,058 units in the quarter, with domestic volumes up 24% and exports up 25%.
Exports again crossed the 6 lakh-unit mark in the quarter, while domestic motorcycles logged revenue growth of about 30%, the company said. Bajaj Auto also pointed to momentum in commercial vehicles, its electric three-wheeler franchise and the Chetak electric scooter, whose retail volumes crossed 1 lakh in the quarter, according to Mint’s live results coverage.
The numbers came in above pre-result expectations. Upstox had reported earlier on Wednesday that analysts expected Bajaj Auto’s profit to rise 23% to 26% year-on-year and revenue to climb 25% to 27%, with investors focused on exports, electric two-wheelers and the buyback decision.
Competition is not standing still. Hero MotoCorp, India’s top two-wheeler maker, beat quarterly profit estimates on Tuesday on strong domestic demand, while Reuters said analysts expect industry growth to slow after the benefit from motorcycle tax cuts fades. TVS Motor remains another closely watched peer in the same two-wheeler cycle.
The risk is costs. Bajaj Auto benefited from demand at home and overseas, but Reuters reported that raw-material costs rose 38% year-on-year and pushed total expenses up 30%, with higher aluminium and steel prices, energy costs and shipping costs adding pressure after the Middle East conflict.
The next market reaction will turn on how investors price the buyback premium against those cost pressures. For now, the company has delivered a profit beat, a lower dividend than last year’s ₹210 per share, and a larger cash return through the buyback route.
