Bajaj Auto Clarifies Buyback Size Correction to INR 5,632.80 Crore Following Board Meeting

Bajaj Auto Limited issued a formal clarification on 6 May 2026, correcting the buyback size disclosed in the outcome of its Board of Directors meeting held on the same date. The company stated that the aggregate buyback amount, previously referenced as up to INR 5,633 crore, must be read as up to INR 5,632.80 crore (Indian Rupees Five Thousand Six Hundred Thirty Two Crore and Eighty Lakh only). The buyback remains subject to shareholder approval.

Correction to Buyback Size

The clarification was addressed to both BSE Limited and the National Stock Exchange of India Ltd. on 6 May 2026. The company noted that the earlier figure of INR 5,633 crore represented a rounded-up version of the actual buyback size, and the precise amount stands at INR 5,632.80 crore. The following table summarises the key details of the corrected disclosure:

Parameter: Details Previously Stated Buyback Size: Up to INR 5,633 crore Corrected Buyback Size: Up to INR 5,632.80 crore Buyback as % of Standalone Capital & Free Reserves (as on 31 March 2026): 16.93% Buyback as % of Consolidated Capital & Free Reserves (as on 31 March 2026): 15.59% Board Meeting Date: 6 May 2026 Subject to: Shareholder Approval

Regulatory Context

The clarification was filed under Regulation 30, with the company requesting both exchanges to take the corrected information on record. The buyback size of INR 5,632.80 crore represents 16.93% of the aggregate of the fully paid-up equity share capital and free reserves as per the latest audited standalone financial statements of the company as on 31 March 2026. On a consolidated basis, the same figure represents 15.59% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited consolidated financial statements as on 31 March 2026.

The clarification was signed by Rajiv Gandhi, Company Secretary & Compliance Officer (ACS 11263), on behalf of Bajaj Auto Limited, Akurdi, Pune.

Bajaj Auto has announced its audited financial results for the quarter and year ended March 31, 2026, reporting record performance across volumes, revenues, and profits. The Board of Directors, at their meeting held on May 6, 2026, approved the audited standalone and consolidated financial results, recommended a final dividend, and approved a share buyback. Following the results, leading brokerages have shared their updated ratings and target prices, reflecting a broadly cautious stance despite the earnings beat.

Q4 Financial Performance vs Estimates

In the fourth quarter, Bajaj Auto delivered results that surpassed analyst expectations across key metrics. Standalone net profit came in at ₹27.46 billion against the year-ago period's ₹20.5 billion, beating the estimate of ₹26.3 billion. Revenue for the quarter stood at ₹160 billion compared to ₹121 billion in the same period last year, ahead of the estimate of ₹157 billion. EBITDA for the quarter was ₹33.23 billion versus ₹24.5 billion year-on-year, surpassing the estimate of ₹32.12 billion, while EBITDA margin expanded to 20.76% from 20.17% year-on-year, ahead of the estimated 20.5%.

Q4 Metric (Standalone): Actual Year-Ago Estimate Net Profit: ₹27.46B ₹20.5B ₹26.3B Revenue: ₹160B ₹121B ₹157B EBITDA: ₹33.23B ₹24.5B ₹32.12B EBITDA Margin: 20.76% 20.17% 20.5%

Full-Year Financial Performance Highlights

For the full financial year, Bajaj Auto achieved its highest ever volumes, selling over 5 million units. Standalone revenue from operations reached an all-time high of ₹58,732 crore, registering a robust 17% year-on-year growth. Profit after tax (PAT) for the year stood at ₹9,825 crore, an increase of 21% compared to the previous year. The company's EBITDA for the year stood at ₹12,019 crore, with margins expanding to 20.5%.

Financial Metrics (Standalone): FY26 FY25 Change Revenue from Operations: ₹58,732 crore ₹50,010 crore 17% Profit After Tax: ₹9,825 crore ₹8,151 crore 21% EBITDA: ₹12,019 crore ₹10,101 crore 19% EBITDA Margin: 20.5% 20.2% 30 bps

Material Cost Headwinds and Pricing Response

Bajaj Auto expects rising material costs to have a 3.5% to 4% impact on revenue. However, the company noted that approximately 40% of this impact has been offset through price increases implemented since April 1, with additional relief expected from currency benefits. The company's ability to partially absorb cost pressures through pricing actions and favourable currency movements reflects its operational flexibility in managing margin headwinds.

Cost & Pricing Outlook: Details Revenue Impact from Material Costs: 3.5% to 4% Offset via Price Increases (since April 1): ~40% Additional Relief: Currency benefits

Export Outlook and Q1 FY27 Growth Commentary

Bajaj Auto's export outlook remains strong, with the company aiming to exceed 200,000 to 220,000 units monthly. The company expects continued growth in Q1 FY27, driven by its strong market position in 150CC+ motorcycles, the EV sector, and steady sales in Latin America and Asia. However, motorcycle growth may moderate from 20% recorded in Q4 FY26 to 7-9% in the near term, attributed to inflationary pressures, price hikes, LPG shortages, and worker migration.

Growth & Export Metrics: Details Export Target: Exceeding 200,000–220,000 units/month Key Growth Drivers: 150CC+ motorcycles, EV sector, Latin America & Asia Q4 FY26 Motorcycle Growth: 20% Near-Term Motorcycle Growth Estimate: 7–9% Headwinds: Inflation, price hikes, LPG shortages, worker migration

Analyst Ratings Post Q4 Results

Following the Q4 FY26 earnings announcement, major brokerages have updated their ratings on Bajaj Auto. While all three firms acknowledged the earnings beat and positive export trajectory, concerns over moderating domestic demand, commodity cost pressures, and valuation levels have kept the overall analyst stance cautious.

Brokerage: Rating Target Price Previous Target Citi: Sell ₹9,300 ₹8,000 Morgan Stanley: Underweight ₹9,259 ₹8,920 Jefferies: Hold ₹10,500 ₹9,100

Citi maintains a Sell rating with a revised target price of ₹9,300, raised from ₹8,000. The brokerage noted that slightly better-than-expected Q4 results and a positive export outlook are offset by moderating domestic demand, elevated commodity cost pressures on margins, and stretched valuations offering limited room for error.

Morgan Stanley maintains an Underweight rating with a target price of ₹9,259, raised from ₹8,920. The firm highlighted an impressive Q4 with EBITDA beating estimates by 4–7% and a strong export outlook, noting that currency tailwinds and price hikes have offset commodity pressures. However, concerns remain over moderating domestic demand, particularly in the entry-level segment.

Jefferies maintains a Hold rating with a target price of ₹10,500, raised from ₹9,100. The brokerage cited strong Q4 growth and earnings beat, resilient domestic two-wheeler demand with an expected 8% industry volume CAGR over FY26–29, and robust export growth as positives. Rising commodity prices, however, may pressure near-term margins.

Dividend and Shareholder Returns

The Board has recommended a dividend of ₹150 per share (1500%) on equity shares of face value ₹10 each for the financial year ended March 31, 2026. The company has fixed Friday, May 29, 2026 as the record date for determining entitlement of members to the dividend. Payment of the dividend is scheduled to be credited or dispatched on or around July 24, 2026.

Dividend Details: Information Dividend per Share: ₹150 (1500%) Face Value: ₹10 per share Record Date: Friday, May 29, 2026 Payment Date: On or around July 24, 2026

Share Buyback Approval and Clarification

The Board has approved a buyback of up to 4,694,000 fully paid-up equity shares, representing up to 1.68% of the total paid-up equity share capital, at a price of INR 12,000 per equity share. In a clarification dated May 6, 2026, the company specified that the aggregate buyback size is up to INR 5,632.80 crore, correcting the earlier rounded figure of INR 5,633 crore. The Buyback Size represents 16.93% and 15.59% of the aggregate of the fully paid-up equity share capital and free reserves of the Company as per the latest audited standalone and consolidated financial statements as on March 31, 2026, respectively.

Buyback Details: Information Number of Shares: Up to 4,694,000 equity shares % of Paid-up Capital: Up to 1.68% Buyback Price: INR 12,000 per equity share Aggregate Buyback Size: Up to INR 5,632.80 crores Method: Tender Offer (proportionate basis)

Corporate Governance

The Annual General Meeting is scheduled to be held on Tuesday, July 21, 2026. The audit reports for the standalone financial results were submitted with an unmodified opinion. The consolidated results received a qualified opinion due to the recent acquisition of a controlling stake in Bajaj Auto International Holdings AG. The filing was signed by Rajiv Gandhi, Company Secretary & Compliance Officer.

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