Bajaj Auto share price falls over 2% after Q4 results. Should you buy or sell?

Bajaj Auto share price fell over 2% in early trade on Friday following the company's Q4 results 2025, which were announced after market hours the day before. Bajaj Auto shares declined as much as 2.51% to ₹8,650.10 apiece on the BSE.

The two- and three-wheeler manufacturer Bajaj Auto reported a standalone net profit of ₹2,049.3 crore in the fourth quarter of FY25, a rise of 6% from ₹1,936 crore in the corresponding period last year.

The company’s standalone revenue from operations in Q4FY25 increased 5.8% to ₹12,148 crore from ₹11,485 crore, year-on-year (YoY).

On the operational front, EBITDA in the quarter ended March 2025 rose 6.2% YoY to ₹2,450.6 crore, while EBITDA margin improved marginally to 20.17% from 20.10%, YoY.

Bajaj Auto’s board of directors also recommended a final dividend of ₹210 per share (2,100%) for FY25, subject to shareholder approval. Bajaj Auto dividend record date is 20 June 2025, and the dividend payment date is around 8 August 2025.

Analysts View

Even as Kotak Institutional Equities expects Bajaj Auto to underperform in the domestic two-wheeler motorcycle market, it believes scale-up in Electric Vehicle (EV) two-wheelers, coupled with recovery in the export two-wheeler segment, will drive growth over the coming quarters.

“In our view, profitability has peaked out and will sustain at these levels, as an inferior mix both in the export and domestic markets will be offset by a favourable FX. The stock is trading at 25X FY2026E EPS, implying double-digit EPS growth over 15 years, which we believe is challenging, given the higher penetration levels (~58-60%) of two-wheelers per household in India,” Kotak Equities said.

It reiterated a ‘Sell’ rating and cut Bajaj Auto share price target to ₹7,250 apiece from ₹7,000 earlier.

Chirag Jain, Senior Research Analyst at Emkay Global Financial Services, said that Bajaj Auto reported an in-line revenue and EBITDA performance, led by 3% volume growth and higher ASPs. Bajaj Auto’s domestic motorcycle market share in the Economy and 125cc segments declined to 23% and 22% during Q4FY25, improvement here remains monitorable.

The brokerage firm maintains its estimates as it builds in a 12% core-EPS CAGR over FY25-27E. It has an ‘Add’ rating on Bajaj Auto shares, with an unchanged target price of ₹8,900 apiece, at 26x FY27E core PER.

Technical View

On the technical side, Bajaj Auto share price is forming a bullish 95-day cup and handle pattern, with a pivot breakout level at ₹8,940, noted Anshul Jain, Head of Research at Lakshmishree Investments.

He suggests investors to consider accumulating Bajaj Auto shares within the current range, capitalizing on the developing bullish structure.

“Momentum traders should wait for a breakout above ₹8,940 to initiate fresh positions. Once the breakout triggers, an immediate upside towards ₹9,178 is likely. The pattern signals growing strength, supported by the stock’s recent price consolidation,” Jain said.

Bajaj Auto Share Price Performance

Bajaj Auto share price has risen over 8% in one month and more than 10% in three months. The auto stock is flat year-to-date (YTD) and has declined 3% in the past one year. However, Bajaj Auto shares have delivered strong returns over the long term. The stock has rallied 90% in two years and has generated multibagger returns of 221% over the past five years.

At 9:25 AM, Bajaj Auto share price was trading 1.79% lower at ₹8,714.55 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.