Bajaj Auto, TVS Motor rally after strong Q1 earnings and upbeat brokerage calls

Bajaj Auto reported a 42% rise in Q1 standalone profit to ₹2,983 crore, while TVS Motor’s PAT grew 51% to ₹1,174 crore. Shares climbed as investors backed resilient margins, revenue growth and Bajaj Auto’s export-volume target of about 250,000 units a month from Q2FY27.

— Source publishedWed, 22 Jul, 2026, 10:50 IST·First seen Wed, 22 Jul, 2026, 11:00 IST·Source The Hindu BusinessLine

What happened

Bajaj Auto and TVS Motor reported strong Q1FY27 earnings, lifting their shares and prompting positive brokerage calls. Bajaj Auto’s margins and export outlook

Key facts

  • Bajaj Auto shares rose over 4% to ₹10,759; 52-week high ₹10,838
  • TVS Motor shares rose 4.5% to ₹3,965
  • Bajaj Auto Q1 standalone profit rose 42% to ₹2,983 crore; revenue rose 37% to ₹17,244 crore
  • TVS Motor Q1 PAT rose 51% to ₹1,174 crore; revenue rose 38% to ₹13,896 crore
  • Bajaj Auto Q1FY27 EBITDA margin was 20.9%
  • Bajaj Auto targets monthly exports of about 250,000 units from Q2FY27
  • Jefferies TVS Motor target price: ₹4,900

Why this matters

Improving profitability and export ambitions strengthen both companies’ capacity to pursue overseas distribution, technology partnerships and targeted expansion opportunities.

What to watch

  • Bajaj Auto monthly exports versus the trajectory needed to reach about 250,000 units per month from Q2FY27.
  • Domestic two-wheeler retail demand during the festive season, especially premium motorcycles and scooters.
  • TVS Motor monthly volume growth, realization trends and EBITDA-margin commentary.
  • Commodity prices for steel, aluminum and precious metals, plus INR movement against export-market currencies.
  • Dealer inventory levels, discounting intensity and financing availability.
  • Management guidance on capex, EV profitability, new launches and competitive pricing.
  • Any deterioration in demand or currency availability in major export markets, particularly Africa, Latin America and South Asia.
  • Brokerages are likely to raise FY26-FY27 EPS estimates and target prices, with particular focus on Bajaj Auto export assumptions and TVS Motor margin durability.
  • Investors will rotate attention from reported Q1 profit growth to monthly domestic wholesales, dealer inventory, retail registrations and export dispatches.
  • Bajaj Auto may emphasize new export-market expansion, premium product launches and production capacity to substantiate its Q2FY27 export-volume ambition.
  • TVS Motor may benefit from continued premiumization and EV narrative, but faces higher expectations for volume growth to match the earnings upgrade.
  • Rival two-wheeler stocks could see sympathy buying, though companies with weaker exports or lower premium exposure may underperform the leaders.

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