Synopsis: Shares of this Auto stock jumped 5% after the company announced its board will consider a share buyback on May 6, signalling a potential capital return and boosting investor sentiment.
The shares of this two-wheeler and three-wheeler manufacturing company that exports to 79 countries across Latin America, Southeast Asia, and many more are in the spotlight after it rebounded 5% in today’s session following the company to consider a share buyback.
With a market capitalisation of Rs. 2,73,013 cr, the shares of Bajaj Auto Ltd were trading at Rs. 9768 per share, rebounded 5% from its low of Rs. 9,358.15, making today’s high of Rs. 9815.25, up from its previous close of Rs. 9,542.10 per share. The stock has gained 21% over the past year, is up 2% year-to-date, and has risen 10% over both the past six months and the last month.
What’s the News
Bajaj Auto Limited has informed that its Board of Directors will consider a proposal for buyback of fully paid-up equity shares at a meeting scheduled on May 6, 2026. The move is in line with applicable provisions under the Companies Act, SEBI Buyback Regulations, and other relevant laws, indicating a potential capital return strategy for shareholders.
The company also clarified that the trading window for designated persons and their immediate relatives remains closed from April 1 to May 8, 2026, in accordance with insider trading norms. This restriction will also apply to the buyback proposal, ensuring compliance and preventing any misuse of unpublished price-sensitive information.
About the company
Bajaj Auto Ltd is one of India’s leading two- and three-wheeler manufacturers, known for popular brands like Pulsar, Platina, and RE auto rickshaws. Part of the Bajaj Group, the company has a strong global presence, exporting to over 70 countries. It is recognised for its focus on performance bikes, cost efficiency, and consistent profitability, making it a key player in both domestic and international mobility markets.
Sales of the company increased from Rs. 15,735 cr in Q2FY26 to Rs. 16,204 cr in Q3FY26. Operating profit rose to Rs. 3,730 cr from Rs. 2,829 cr. Net profit increased from Rs. 2,122 cr to Rs. 2,750 cr over the same period.
The company benefited from a favourable operating environment, particularly on the currency front, with average USD realisation improving to 88.3 versus 87.1 in Q2 and 84.3 YoY. However, input costs remained a pressure point, with sharp inflation in noble metals like platinum, palladium, and rhodium, alongside firmness in aluminium, copper, nickel, and lead, while ABS and steel saw some softening.
Despite cost pressures, the company chose to defer price hikes in Q3, resulting in a margin impact of nearly 50 basis points. Looking ahead to Q4, management expects further cost inflation of 50–60 bps and has already taken partial pricing actions to offset about half of it. Margins in Q3 were supported by favourable currency, operating leverage, and PLI benefits, allowing flexibility in pricing strategy.
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