Bajaj Auto shares climb as quarterly profit tops forecasts

what happened

Shares of India's Bajaj Auto gained as much as 3.1% on Wednesday after the motorcycle maker posted second-quarter profit above analyst estimates. Reuters reported the stock was 2% higher at 10,600 rupees by 10:17 a.m. IST, while the Nifty Auto index rose 0.3% and the broader Nifty 50 slipped 1%.

Profit climbed 35.3% in the quarter, and revenue from operations grew 34.1%. Export volumes surged 41%, running ahead of the domestic two-wheeler business. The company said its electric vehicle unit produced close to 35% of domestic revenue in the period. Management is aiming to lift monthly Chetak output to roughly 80,000 units by the fourth quarter, up from 60,000 to 65,000 today.

Citi linked its growth outlook to sustained export momentum and festive-season demand. CLSA, which keeps an outperform view, raised its earnings forecasts for fiscal 2027 and 2028 by 4%. Morgan Stanley kept an underweight rating, flagging risks to margins from elevated commodity costs.

why it matters

For investors, the report points to exports and the electric business as main growth drivers, while currency gains and production-linked incentives helped margins. The key risk is rising raw material costs, which could squeeze profitability.

market impact

Bajaj Auto shares: strong profit and export growth support the stock

• ▲Bajaj Auto shares pressure up — strong profit and export growth support the share price

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