Domestic demand remained a drag, with domestic sales up just 4% YoY, while exports continued to drive growth. Export volumes crossed the 2 lakh unit mark for the third consecutive month, highlighting sustained momentum in overseas markets.In December, total sales including two-wheelers and three-wheelers increased 14% to 3.70 lakh units from 3.23 lakh units a year ago. Domestic sales rose 4% to 1.69 lakh units, while exports jumped 25% to 2 lakh units.
Two-wheeler sales grew 14% YoY to 3.10 lakh units, with domestic volumes up 3% and exports rising 24% to 1.78 lakh units. Three-wheeler sales increased 17% YoY to 59,456 units.For the April to December period, total sales rose 6% YoY to 37.47 lakh units. Domestic sales declined 3% to 21.06 lakh units, while exports climbed 19% to 16.40 lakh units.
Following the December sales update, Emkay Global upgraded Bajaj Auto to ‘Buy’ from ‘Add’ and raised its price target to ₹11,100 per share from ₹9,500, implying an upside of around 17%.
The brokerage said the upgrade was driven by EPS upgrades of around 4% for FY27 and 9% for FY28.
Emkay said Bajaj Auto offers an attractive risk-reward at current levels, led by strong export trends and the planned launch of a refreshed Pulsar range in CY26. It expects a healthy 14% EPS CAGR over FY26 to FY28.
The brokerage added that Bajaj Auto’s overall domestic two-wheeler market share appears to have bottomed out, with early signs of a pickup. Export momentum remains strong, led by Latin America and Asia, while currency depreciation-led tailwinds are expected to support margins.
Emkay also said that Bajaj Auto’s electric three-wheeler portfolio has scaled up meaningfully, overtaking Mahindra and Mahindra to become the market leader, with EBITDA breakeven already achieved. A gradual turnaround in KTM could provide incremental upside over the medium term.
