Frequently asked questions
Is Bajaj Auto a buy at current prices?
DalalBytes rates Bajaj Auto Selective Positive at 74/100. FY26 was a record year: volumes above 5 million units, standalone revenue up 17% to Rs 58,732 crore, standalone PAT up 21% to Rs 9,825 crore, free cash flow above Rs 8,000 crore, and a dividend plus buyback equal to 100% of standalone PAT. The selective part is the KTM turnaround Bajaj now owns: consolidated borrowings of Rs 22,713 crore and interest of Rs 1,169 crore in FY26, against a stock at about 24 to 26x earnings, the cheapest quality multiple in Indian two-wheelers.
What are Bajaj Auto's FY2029 price targets?
DalalBytes' FY2029 targets for Bajaj Auto are bear Rs 9,200, base Rs 12,900, and bull Rs 17,000, from a Rs 10,318 reference price (NSE close, October 13, 2026). The scenarios are built on the standalone core: FY26 standalone PAT of Rs 9,825 crore and EPS of Rs 351.5. Bear: 7% PAT CAGR, about Rs 438 EPS, 21x exit. Base: 13% CAGR, about Rs 516 EPS, 25x. Bull: 18% CAGR, about Rs 587 EPS, 29x, with the KTM turnaround delivered.
What is the verdict on Bajaj Auto?
The business quality grades in the 80s: ROE of 29.2%, ROCE of 28.2%, standalone EBITDA margins of 20.5%, two demand engines (domestic premium and exports to 79 countries), electric leadership, and a two-decade management record under Rajiv Bajaj. Three deductions bring it to 74: the KTM turnaround is unproven inside the consolidated numbers, the domestic core printed a down month in September 2026 (domestic sales down 9%, exports up 32%), and 24 to 26x earnings is not cheap in absolute terms for a cyclical manufacturer, even though Eicher Motors trades at about 34x and TVS Motor at about 54x.
How did Bajaj Auto start?
Bajaj Auto began on November 29, 1945 as Bachraj Trading Corporation, selling imported two and three-wheelers; it licensed manufacturing in 1959 and listed in 1960. Under Rahul Bajaj the Chetak scooter became middle-class India's default transport, and the company became the world's largest three-wheeler maker. Rajiv Bajaj, managing director since 2005, rebuilt it around motorcycles, premiumisation and exports after the scooter market collapsed: Pulsar from 2001, a first KTM stake in 2007, and a deliberate decision to be underweight entry-level commuters and overweight 125cc and above.
What does Bajaj Auto sell?
Motorcycles (Pulsar, Platina, CT, Avenger, Dominar), the Chetak electric scooter, three-wheelers (RE, Maxima and the new Riki e-rickshaw), and spares, exported to 79 countries. Premium partnerships add KTM and Triumph in India, and since November 2025 Bajaj controls Bajaj Mobility AG, owner of KTM, Husqvarna and GasGas. Electric vehicles passed Rs 8,000 crore of revenue in FY26, more than 20% of domestic sales, and were about 30% of domestic revenue in Q1 FY27. Commercial vehicles passed 5 lakh units in a year for the first time in FY26.
What do Bajaj Auto's financials show?
Consolidated revenue rose from Rs 33,145 crore in FY22 to Rs 62,905 crore in FY26, with attributable PAT of about Rs 10,744 crore and EPS of Rs 384.41. The cleaner core read is standalone: FY26 revenue Rs 58,732 crore (up 17%), EBITDA Rs 12,019 crore at 20.5%, PAT Rs 9,825 crore (up 21%). Q1 FY27 standalone revenue rose 37% to Rs 17,244 crore with PAT up 42% to Rs 2,983 crore; consolidated revenue rose 65% to Rs 21,689 crore, mostly because Bajaj Mobility consolidated for the first full quarter, not because demand rose 65%.
What did the KTM takeover change?
KTM entered insolvency proceedings in late 2024 with more than 265,000 unsold motorcycles and debts above 3 billion dollars. Bajaj funded an 800 million euro rescue in May 2025 and completed control on November 18, 2025, holding 74.94% of the renamed Bajaj Mobility AG. Consolidated borrowings rose from Rs 1,912 crore in FY24 to Rs 22,713 crore in FY26, interest from Rs 60 crore to Rs 1,169 crore, and inventory days from 22 to 54. The standalone core still holds surplus cash above Rs 21,000 crore after Q1 FY27. The deal is strategically coherent and financially unproven: that gap is the investment question.
Who runs Bajaj Auto, and is governance clean?
Rajiv Bajaj has run the company since 2005 with one of the strongest capital-allocation records in Indian manufacturing: buybacks at Rs 10,000 in 2024 and Rs 12,000 in 2026, high dividend payouts, no diversification spree, and a promoter stake steady at 55.01%. The board is chaired by Niraj Bajaj and the auditor is SRBC and Co LLP. No governance red flag specific to Bajaj Auto was found in the sources reviewed. The forward tests are Bajaj Mobility disclosure quality, succession, and European restructuring delivery, graded starting with Q2 FY27 results on October 27, 2026.
What is Bajaj Auto worth?
At Rs 10,318: P/E of about 24 to 26x trailing consolidated earnings, P/B of about 7.4x, dividend yield of 1.46%, market capitalisation of about Rs 2,83,000 crore, and a price 17% below the 52-week high of Rs 12,470 (range Rs 8,605 to Rs 12,470). FY2029 scenarios on the standalone core: bear Rs 9,200 (7% PAT CAGR, 21x), base Rs 12,900 (13% CAGR, about Rs 516 EPS, 25x), bull Rs 17,000 (18% CAGR, 29x, KTM delivered). Street targets cluster near Rs 11,500 to Rs 11,700. The base case is about 25% above the reference price plus the dividend: a solid compounder's return, which is what Selective Positive means.
What are the key risks for Bajaj Auto?
KTM execution first: a distressed European manufacturer with an inventory overhang, a high-cost Austrian base and restructuring terms to meet. Then consolidated leverage that is new to this company, headline growth that will mislead while the consolidation annualises, domestic cyclicality in the 125cc-plus segments it chose, tax changes on larger motorcycles, commodity and supply shocks (a rare-earth disruption in FY26, a ransomware attack in June 2026), export-market currency and political shocks, and intensifying competition from TVS, Hero, Royal Enfield, Ather and Ola on every front it contests.
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