Strong export growth, premiumisation and EV expansion keep Bajaj Auto in focus

Bajaj Auto share price today: Shares of Bajaj Auto rallied nearly 3 per cent in Tuesday’s intraday trade, September 1, after the company reported a strong 28 per cent year-on-year increase in total vehicle sales for August 2026.

The stock touched a fresh 52-week high of ₹12,470 on the BSE, moving closer to its previous all-time high of ₹12,772.15, recorded in September 2024.

The latest move extends the stock's strong recovery from its June lows. Bajaj Auto shares have gained around 31 per cent from the three-month low of ₹9,505, hit on June 30, 2026.

The stock is also trading above the ₹12,000 per share buyback price, after the company completed a tender-route buyback of around 4.69 million shares in July.

August sales rise to 5.36 lakh units

Bajaj Auto reported total sales of 535,764 vehicles in August 2026, compared with 417,616 units in August 2025.

This represents a 28 per cent YoY increase, with exports once again emerging as the biggest contributor to growth.

The sales performance indicates that Bajaj Auto continues to benefit from improving demand across several markets and product categories.

Exports become a major growth driver

Bajaj Auto's export performance stands out in the August numbers.

Exports increased 51 per cent YoY to 280,056 units, exceeding domestic sales of 255,708 units during the month.

The company has a well-established presence across international markets and is particularly strong in motorcycles and three-wheelers.

Management had previously indicated that monthly exports could cross the 250,000-unit mark, supported by its sports motorcycle leadership in Latin America and increasing commercial motorcycle opportunities in Africa.

The growing contribution from exports could provide Bajaj Auto with greater geographic diversification and reduce its dependence on India's domestic two-wheeler cycle.

Premium motorcycles remain a key focus

Bajaj Auto is entering an important product cycle in the domestic motorcycle market, with an increased focus on the 125cc-plus segment.

The company plans a comprehensive portfolio refresh in this category, with the objective of improving its competitive position and gaining market share.

The premiumisation strategy is important from a profitability perspective because higher-value motorcycles can support a better product mix and stronger margins.

The company's brands and partnerships in the premium motorcycle segment, including Triumph and KTM, are also expected to support its expansion in higher-margin categories.

KTM and Bajaj Mobility turnaround under watch

Bajaj Auto's acquisition of Bajaj Mobility AG, the parent of KTM AG, has expanded the company's international premium motorcycle exposure.

The acquisition provides access to a globally recognised motorcycle portfolio and additional scale. However, the acquired business currently operates at lower margins than Bajaj Auto's core business.

As a result, consolidated EBITDA margins could face some moderation in the near term.

Management expects the profitability of Bajaj Mobility AG to improve through:

• Higher capacity utilisation

• Cost rationalisation

• Portfolio prioritisation

• Supply-chain optimisation

• Product development

• Organisational simplification

The pace of the KTM turnaround will therefore remain an important factor for Bajaj Auto's earnings trajectory.

EV business could become a bigger earnings contributor

Electric vehicles are another important component of Bajaj Auto's long-term strategy.

The company is targeting growth in both electric two-wheelers and three-wheelers as India's EV adoption continues to expand.

Bajaj Auto expects the profitability of its EV portfolio to improve over the near to medium term as volumes increase and economies of scale begin to emerge.

The company is also investing in technology and product development to strengthen its competitive position.

However, the EV segment remains highly competitive, making market share, product launches and pricing discipline important factors to watch.

Capacity expansion provides room for growth

Bajaj Auto is expanding its annual manufacturing capacity from approximately 7 million units to 9 million units.

The expansion is expected to provide additional capacity for:

• Domestic motorcycles

• Export motorcycles

• Electric two-wheelers

• Three-wheelers

• Premium products

If demand continues to remain strong, higher capacity utilisation could also improve operating leverage.

Buyback provides additional investor confidence

Bajaj Auto's stock is currently trading above the company's recently completed buyback price of ₹12,000 per share.

The company repurchased approximately 4.69 million shares through the tender route in July 2026.

The current market price above the buyback level indicates that the stock has continued to gain investor interest after the capital-return exercise.

However, the buyback price should not be interpreted as a guaranteed valuation floor, particularly as the stock is now close to its previous record high.

What brokerages are saying

Anand Rathi maintains BUY

Anand Rathi Share and Stock Brokers maintained a BUY rating on Bajaj Auto and raised its SOTP-based target price to ₹12,800 per share.

The brokerage's positive view is supported by strong domestic and export demand, the company's EV strategy, favourable product mix and expectations of improving EV profitability.

It also sees potential benefits from scale and foreign-exchange movements.

ICICI Direct remains positive

ICICI Direct also maintains a BUY rating, with a target price of ₹12,550 per share.

The brokerage values Bajaj Auto at 25 times its FY28 estimated earnings per share.

According to the brokerage, the company's strong product pipeline, export growth, domestic EV positioning and capacity expansion provide a favourable medium- to long-term earnings outlook.

India Ratings highlights business strengths

India Ratings and Research has maintained a Stable outlook on Bajaj Auto's bank loan facilities.

The rating agency highlighted the company's strong market position in India's two-wheeler and three-wheeler segments, diversified product portfolio and established overseas presence.

The acquisition of Bajaj Mobility AG is expected to further increase the company's scale.

At the same time, the rating agency expects some near-term pressure on consolidated margins because the acquired business currently generates lower EBITDA margins than Bajaj Auto's core operations.

Key factors that could drive the stock

1. Export growth

Continued growth in Latin America, Africa and other international markets could remain one of the strongest volume drivers.

2. Premiumisation

Successful launches in the 125cc-plus segment could improve both market share and product mix.

3. EV profitability

Higher volumes and economies of scale could gradually improve the profitability of Bajaj Auto's electric vehicle operations.

4. KTM turnaround

Improved utilisation, cost control and portfolio restructuring at Bajaj Mobility AG could reduce the margin drag from the acquired business.

5. Capacity expansion

The increase in capacity from 7 million to 9 million units annually provides room for future volume growth.

Risks investors should monitor

Despite the strong sales momentum, investors should remain watchful of valuation and execution risks.

Domestic competition: The two-wheeler market remains competitive, particularly in the premium and 125cc-plus segments.

EV competition: Bajaj Auto faces intense competition from established manufacturers and EV-focused players.

KTM integration: The performance of Bajaj Mobility AG remains a key variable for consolidated margins.

Valuation: With the stock close to its previous all-time high, expectations around future earnings are already elevated.

Global exposure: A large export business also exposes Bajaj Auto to currency movements, economic conditions and demand fluctuations in overseas markets.

Market Outlook

Bajaj Auto's August performance strengthens the company's growth narrative, with total sales up 28 per cent and exports rising 51 per cent YoY. The combination of premium motorcycle launches, EV expansion, international growth and capacity addition provides multiple potential earnings drivers.

The stock's move to a fresh 52-week high also confirms strong market momentum. However, with shares already close to their previous record high and above the ₹12,000 buyback price, investors should closely track whether upcoming earnings and sales growth continue to justify the current valuation.

For existing shareholders, export volumes, domestic market share, premium motorcycle launches, EV profitability and the KTM turnaround are likely to remain the most important monitorables in the coming quarters.