-- Bajaj Auto (NSE:BAJAJ-AUTO, BOM:532977) reported robust performance in the fourth quarter of fiscal year 2026, but signaled a cautious near-term outlook for its motorcycle segment amid the ongoing conflict in the Middle East.
Fiscal Q4 net profit for the period ended March 31 rose to 27.5 billion rupees from 20.5 billion rupees a year earlier, according to the company's earnings report published late Wednesday.
The figure beat analysts' forecast of 25.2 billion rupees, according to LSEG.
Earnings per share climbed to 98.2 rupees from 73.3 rupees, while total operating revenue jumped to 160.1 billion rupees from 121.5 billion rupees in the previous year.
Analysts surveyed by Visible Alpha expected EPS of 89.75 rupees and total revenue of 148.8 billion rupees.
During the company's earnings call, Joint Managing Director Rakesh Sharma noted that the geopolitical crisis in Iran has caused inflationary pressures, leading to higher fuel costs and vehicle price hikes.
"The demand environment, it has softened in April due to general inflation, increased prices of our vehicles, LPG shortages, manpower migration, and the LPG shortage led effect on the consumer sentiment," Sharma said.
The motorcycle division, which saw 20% growth in Q4, is projected to cool significantly, with growth expected to settle between 7% and 9% in the coming months.
To offset the broader market slowdown, Bajaj Auto is banking on its premium portfolio and electric vehicle lineup.
"The electric category in both 3-wheelers and 2-wheelers will witness not just continuity of growth, but perhaps a further increase in growth," Sharma said.
Analysts at Jefferies said Bajaj Auto's margins rose higher than their forecast.
"While rising commodity prices pose some headwind to near-term margins, Bajaj has demonstrated the capability to deliver strong profitability, especially with its diversified portfolio," Jefferies said in a note to clients.
Bajaj Auto disclosed plans to repurchase shares worth 56.3 billion rupees for 12,000 rupees per share, its biggest buyback to date.
The company also recommended a dividend of 150 rupees per share to be paid out by July 24 to investors registered by May 29.