BAJAJ-AUTO - Bajaj Auto Limited Share Price

In the recent earnings call held on May 6, 2026, Bajaj Auto's management provided an optimistic outlook for the upcoming periods, despite acknowledging some challenges in the market environment. Key highlights include:

1. Revenue Performance: For FY26, Bajaj Auto achieved record revenues exceeding INR 58,000 crores, with EBITDA surpassing INR 12,000 crores at a margin of 20.5%. The Q4 revenue crossed INR 16,000 crores with an EBITDA of INR 3,323 crores and margins at 20.8%.

2. Market Growth Forecast: The management anticipates growth in the motorcycle segment to slow down from Q4's impressive 20% to an estimated 7%-9% in the near term. The growth is expected to largely originate from the 125cc and above segments, particularly the 150cc plus segment, which is projected to grow at twice the industry rate.

3. Exports: The export business recorded substantial growth, achieving nearly 600,000 units in Q4, and management aims to raise exports to 220,000 units per month, despite geopolitical uncertainties in the Middle East.

4. Electric Vehicles: The electric segment is expected to maintain strong growth momentum, particularly in 3-wheelers and 2-wheelers, with the company capitalizing on new models and expanding its exclusive network.

5. Challenges: The management highlighted potential supply chain disruptions and inflationary pressures due to commodity increases as risks. An estimated material cost inflation impact of approximately 3.5% to 4% of revenue is anticipated, of which 40% has been addressed through pricing actions.

In summary, while Bajaj Auto acknowledges short-term challenges, the management remains confident in leveraging competitive strengths in key segments and maintaining growth in both domestic and international markets.

Key Q&A from Bajaj Auto Q4 and FY26 Earnings Call

1. Question: "Have you seen some impact of the price hike and in which segment?" Answer: Yes, we've noted a decline in motorcycle industry growth from 20% in Q4 to 7-9% in April. Our April price hikes may cause consumers to delay purchases, particularly in lower segments. However, the upper segments, especially 150cc+, are still performing strongly due to ongoing demand.

2. Question: "Will exports do much better than domestic on volume growth for FY27?" Answer: It's challenging to predict given current uncertainties. However, exports are strong due to our retail presence in markets like Latin America, which continues to perform well. We expect growth in exports driven by brand strength and increasing market share.

3. Question: "What steps are being taken to increase Chetak's production?" Answer: We've reached a capacity of 50,000 units per month for Chetak and are exploring further capacity expansions to meet demand. Demand has been robust, and we aim to utilize current capacity effectively while preparing for future increases.

4. Question: "Can you provide thoughts on upcoming models, including a 125cc affordable motorcycle?" Answer: We are indeed planning to launch new models in both the 125cc and 150cc segments around July. The new Pulsar variants are designed to appeal significantly to the market.

5. Question: "What is the expected PLI incentive for the year?" Answer: We anticipate claiming around Rs.900 crores in PLI for the year, driven by our increased electric vehicle scale and exports.

6. Question: "Is there an appetite for further price hikes to counter inflation?" Answer: We have already implemented price hikes covering about 40% of the estimated inflation impact of 3.5% to 4%. While we remain watchful of costs, we are cautious with future pricing to maintain competitive growth.

7. Question: "What's your outlook on the 3-wheeler segment growth?" Answer: The 3-wheeler segment, notably EVs, has seen strong performance due to evolving commuting patterns. We expect this segment's growth to continue as demand for mobility solutions in smaller towns increases.

8. Question: "What is the revenue breakdown contributing to the recent increase in other operating income?" Answer: The increase stems from several sources: growth in electric sales leading to PLI benefits, increased export incentives, and robust performance in our oils business contributing to overall revenue growth.