Shares of Bajaj Auto Ltd jumped more than 4 per cent during the trading session on Thursday to hits new highs, after the auto company announce a strong set of performance for the quarter ended on March 31, 2026, along with a hefty dividend and a big buyback of its equity shares.
 

Bajaj Auto share price

Shares of Bajaj Auto jumped more than 4.1 per cent to Rs 10,738.40 on Thursday, hitting its new 52-week high, commanding a total market capitalization more than Rs 3 lakh crore. Shares of Bajaj Auto have surged nearly 20 per cent in the last one month, while the stock is up nearly 12 per cent in 2026 so far.
 

Bajaj Auto Q4 results

Bajaj Auto reported a 34 per cent YoY jump in the net profit at Rs 2,746.13 crore, while revenue soared 31.8 per cent YoY to Rs 16,005.7 crore for the March 2026 quarter. The two-wheeler major's Ebitda was up 35.6 per cent YoY to Rs 3,322.7 crore, while Ebitda margins improved to 20.8 per cent for the reported quarter.
 

Bajaj Auto buyback

Bajaj Auto has approved a share buyback of up to 46,94,000 equity shares of the company, representing up to 1.68 per cent of paid-up equity capital at a buyback price of Rs 12,000 each. The company shall buyback shares worth Rs 5,633 crore from investors but the record date for the same is yet to be announced. The buyback is also subject to approval from its shareholders.

Adjusting today's rally, the buyback price offers nearly 12 per cent upside for the investors, without adjusting the gains. The benefit of buyback at Rs 12,000 per share may be limited, as applicable capital gains tax rate (12.5 per cent/20 per cent for long/ short-term) could materially reduce the effective upside, said JM Financial in its report.
 

Bajaj Auto shares dividend

Bajaj Auto has announced a dividend at the rate of Rs 150 per share (1500 per cent) of face value of Rs 10 each on equity shares for the financial year ended 31 March 2026. The said dividend, if approved by the shareholders at the ensuing Annual General Meeting, will be credited/dispatched on or around 24 July 2026, said Bajaj Auto in the exchange filing.

"The dividend shall be paid to the equity shareholders whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as on May 29, 2026 (Friday), which is the record date fixed for the purpose," it added.
 

Bajaj Auto target price

Growth in the domestic motorcycle industry is expected to moderate to 7–9 per cent in the near term due to price hikes, manpower migration and weakening consumer sentiment. However, demand momentum in international markets remains robust for both 2Ws and 3Ws. Outlook for domestic 3W volume remains healthy led by rising EV penetration, said ICICI Securities with a 'buy' and a target price of Rs 12,000.

It is banking on new launch to address the same with few products’ specific intervention in Pulsar and new product launch in 125cc. An effective turnaround of KTM operations too remain key monitorable for us to turn constructive, said YES Securities with an 'add' rating and a target price of Rs 11,626.

Bajaj Auto is likely to outperform the motorcycle industry on the back of its new launches, growth is likely to moderate in FY27E. A sharp surge in input costs is likely to limit margin upside, said Motilal Oswal Financial Services and reiterated a 'neutral' rating with a target price of Rs 9,965 on it.

"We build in 6.1 per cent domestic 2W volume growth for FY27E. Exports remain strong, and we expect 16.7 per cent export volume growth in FY27E led by recovery/stability across regions. On margins, RM inflation is expected to have a 3.5-4 per cent QoQ impact, with April 2026 price hikes offsetting only 40 per cent of the increase, said JM Financial with a 'reduce' rating and a target price of Rs 9,600.