Bajaj Auto profit jumps as operating margin falls 5.77 points sequentially
Costs grew faster than revenue, while other income and a lower tax rate supported consolidated net profit.
Filed 06 May 2026, 18:27 IST · after market close · BAJAJ-AUTO (BAJAJ-AUTO)
Key takeaways
- Consolidated net profit rose +93.81% YoY to Rs 3492.21 cr, despite operating margin narrowing 4.04 percentage points.
- Expenses grew +48.26% YoY against +41.01% revenue growth, while interest and depreciation increased +135.03% and +142.33%.
- Other income contributed 43.68% of pre-tax profit, and the stock's initial +2.77% rise was close to its 2.4% median post-result move.
Price around the results
Revenue growth did not translate into operating leverage
Consolidated revenue grew +41.01% YoY and +10.05% QoQ, but operating profit increased only +14.20% YoY and fell -17.55% sequentially. The gap reflects expenses growing faster than revenue in both comparisons, limiting the benefit from higher sales.
Higher costs and non-operating income shaped the result
Expenses rose +48.26% YoY and +18.30% QoQ, reducing operating margin by 4.04 percentage points and 5.77 percentage points respectively. Interest rose +135.03% YoY and depreciation increased +142.33%, adding to the pressure below operating profit. Other income accounted for 43.68% of pre-tax profit, while the tax rate fell 8.01 percentage points YoY and 5.33 percentage points QoQ, so reported net profit received material support from non-operating items and tax.
Margin remains above peers after a sharp quarterly reversal
Bajaj Auto's 17.25% operating margin was 2.44 percentage points above the 14.81% median for the 93 Consumer Discretionary peers that had reported. The margin had risen from 20.89% in Q3FY25 to 23.02% in Q3FY26, making the latest sequential fall a clear break in that improvement trend.
The market reaction was positive but not unusual
The stock rose +2.77% in the initial session and was up +3.80% by the next session, before the gain moderated to +1.28% after five sessions. The initial move was close to the 2.4% median absolute reaction across the last eight results, although the direction differed from the stock's history, which shows six declines and two rises.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹17,832 cr | ₹16,204 cr | +10.05% | +41.01% |
| Other income | ₹1,894 cr | ₹359 cr | +427.16% | +3220.12% |
| Expenses | ₹14,757 cr | ₹12,475 cr | +18.30% | +48.26% |
| Operating profit | ₹3,075 cr | ₹3,730 cr | -17.55% | +14.20% |
| Operating margin (%) | 17.25% | 23.02% | — | — |
| Interest | ₹344 cr | ₹314 cr | +9.80% | +135.03% |
| Depreciation | ₹289 cr | ₹119 cr | +142.27% | +142.33% |
| Profit before tax | ₹4,336 cr | ₹3,656 cr | +18.60% | +74.54% |
| Tax | ₹844 cr | ₹906 cr | -6.90% | +23.66% |
| Net profit | ₹3,492 cr | ₹2,750 cr | +27.00% | +93.81% |
| EPS (₹) | ₹131.10 | ₹98.50 | +33.10% | +102.94% |
Operating margin of 17.25% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.77% | +2.79% |
| Next session | +3.80% | — |
| 5 sessions | +1.28% | +3.92% |
| 15 sessions | +1.37% | — |
| 30 sessions | -2.45% | — |
Volume on the results session was 3.49× its 20-day average.
What to watch
- Whether operating margin recovers from 17.25% after the 5.77-percentage-point sequential decline.
- Whether expenses grow more slowly than revenue after rising +18.30% QoQ against revenue growth of +10.05%.
- Whether other income's 43.68% share of pre-tax profit declines in the next quarter.