Bajaj Auto Limited (NSE: BAJAJ-AUTO) shares closed up 0.76% at 9,584.00 rupees on Friday, following the release of third-quarter financial results that exceeded analyst estimates for profitability. The stock touched an intraday high of 9,626.00 rupees, recovering from a morning low of 9,382.50 rupees as investors reacted to record-breaking operational metrics.
Market Performance and 52-Week Context
The stock currently trades approximately 3% below its 52-week high of 9,888.00 rupees, achieved on Jan. 8, 2026. Over the past year, the counter has gained roughly 8.3%, trailing the broader Nifty Auto index’s performance. The stock maintains a 52-week low of 7,089.35 rupees recorded in April 2025. Recent momentum has been supported by favorable domestic policy changes, specifically the reduction of Goods and Services Tax (GST) on motorcycles below 350cc from 28% to 18%.
Quarterly Financial Highlights
For the quarter ended Dec. 31, 2025, consolidated net profit climbed 25.2% year-on-year to 2,749.82 crore rupees, compared with 2,195.65 crore rupees in the same period last year.
Revenue: Consolidated revenue from operations rose 23% to 16,204.45 crore rupees. Standalone revenue crossed the 15,000-crore mark for the first time, reaching 15,220 crore rupees.
Margins: Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 22% to a record 3,161 crore rupees. EBITDA margin expanded to 20.8%, up 30 basis points sequentially.
Volume: Export volumes crossed 600,000 units for the first time in 15 quarters, driven by double-digit growth in Africa and Asia.
Year-to-Date and Full-Year Context
For the nine months ended December 2025, consolidated profit increased 28.2% to 7,082.29 crore rupees. The company generated 5,200 crore rupees in free cash flow during this period, a 70% increase year-on-year. Bajaj Auto reported a robust balance sheet with surplus funds of approximately 15,000 crore rupees after distributing 5,864 crore rupees in dividends.
Operational Drivers and Analyst Outlook
The electric vehicle (EV) portfolio accounted for 25% of domestic revenues during the quarter, with the Chetak electric scooter recording 70% sequential growth. The premium motorcycle segment (125cc and above) delivered its strongest quarterly revenue to date. There were no immediate rating downgrades or upgrades from major brokerages following the announcement, though standalone net profit of 2,503 crore rupees slightly missed some Bloomberg consensus estimates of 2,538 crore rupees due to an exceptional cost of 61.3 crore rupees related to new labor code implementations. Most analysts maintained existing price targets, citing a “quality company with a challenging entry point” due to current valuation levels.