Pune, India – Bajaj Auto Ltd. announced a significant share buyback program alongside a strong financial performance for the quarter ended March 31, 2026. The two-wheeler and three-wheeler major will repurchase equity shares worth up to ₹5,633 crore, a move that contributed to a more than 4% surge in its stock price on Thursday.
Bajaj Auto's Share Buyback Offer
The company's board has approved the buyback of up to 46,94,000 equity shares, constituting approximately 1.68% of its paid-up equity capital. The buyback price has been set at ₹12,000 per share, offering a premium over the current market price. This substantial offer, totaling ₹5,633 crore, is awaiting shareholder approval, and the record date for the repurchase is yet to be announced.
Analysts from JM Financial noted that while the buyback price presents an attractive upside, potential gains for investors could be reduced by applicable capital gains tax rates, which range from 12.5% to 20% for long-term and short-term holdings, respectively.
Robust Q4 2026 Financial Performance
Bajaj Auto reported impressive results for the March 2026 quarter:
- Net Profit: Increased by 34% year-on-year to ₹2,746.13 crore.
- Revenue: Rose by 31.8% year-on-year to ₹16,005.7 crore.
- EBITDA: Grew by 35.6% year-on-year to ₹3,322.7 crore.
- EBITDA Margins: Improved to 20.8% for the quarter.
These strong earnings figures played a key role in boosting investor confidence and driving the stock to new highs.
Dividend Announcement
In addition to the buyback, Bajaj Auto declared a dividend of ₹150 per share (1500%) on equity shares with a face value of ₹10 each for the financial year ended March 31, 2026. Subject to shareholder approval at the upcoming Annual General Meeting, the dividend is expected to be credited or dispatched on or around July 24, 2026. The record date for determining eligible shareholders for the dividend payout has been fixed as May 29, 2026.
Market Reaction and Analyst Outlook
Following the announcements, Bajaj Auto shares climbed over 4.1% to ₹10,738.40 on Thursday, reaching a new 52-week high and pushing its market capitalization past ₹3 lakh crore. The stock has seen a nearly 20% increase in the last month and is up almost 12% year-to-date in 2026.
Brokerage firms have offered varied outlooks on Bajaj Auto:
ICICI Securities maintained a 'buy' rating with a target price of ₹12,000, citing healthy demand in international markets for both two-wheelers and three-wheelers, and rising EV penetration in domestic three-wheelers.
YES Securities gave an 'add' rating with a target of ₹11,626, emphasizing the importance of new product launches and an effective turnaround of KTM operations.
Motilal Oswal Financial Services reiterated a 'neutral' rating with a target price of ₹9,965, projecting moderated growth for the motorcycle industry in FY27E and potential margin limitations due to input cost surges.
JM Financial issued a 'reduce' rating with a target price of ₹9,600, anticipating a 3.5-4% quarter-on-quarter impact from raw material inflation, with only partial offsets from April 2026 price hikes.
Despite some moderating growth expectations for the domestic motorcycle segment, Bajaj Auto is anticipated to outperform the industry due to its strategic new launches and strong export performance.