Bajaj Auto Limited (BAJAJ.AUTO) | News Based Sentiment Analysis

• On September 1, 2025, Bajaj Auto reported a 5% year-over-year increase in total auto sales, reaching 417,616 units, driven by a 29% surge in exports to 185,218 units – demonstrating growing strength in international markets. However, domestic sales declined by 8% to 232,398 units, highlighting a mixed performance across different regions.
• Despite the overall sales increase, Bajaj Auto's electric two-wheeler (E2W) registrations fell 40% month-over-month in August 2025 to 11,730 units, due to restrictions on rare earth magnet exports from China. Fortunately, the company resumed EV production on August 20, 2025, after resolving the supply issue.
• Bajaj Auto proactively addressed supply chain concerns by resuming Chetak e-scooter deliveries ahead of schedule on August 20, 2025, securing magnet supply crucial for the festive season. This quick response shows the company's ability to adapt to disruptions and maintain production momentum.
• On September 4, 2025, Bajaj Auto announced plans to take control of KTM with an EUR 800 million debt funding package, including an initial infusion of EUR 200 million and a takeover of an EUR 80 million loan. This strategic move aims to revive KTM amidst liquidity issues and reshape its future.
• Bajaj Auto reported a 14% year-over-year rise in consolidated net profit to ₹2,210 crore for Q1 FY26 (as of September 1, 2025), with revenue climbing 10% to ₹13,133 crore. The company also generated free cash flow of ₹1,200 crore and held surplus funds of ₹16,726 crore, indicating strong financial health.
• Analysts currently have an average share price target of ₹9897.75 for Bajaj Auto (as of September 7, 2025), representing an 8.95% upside from the last price of ₹9084.50. While opinions vary, with 9 'Strong Buy' ratings, the overall sentiment remains cautiously optimistic.
• On September 1, 2025, Bajaj Auto shares jumped almost 4%, closing at ₹8,978 on the National Stock Exchange, reflecting positive investor reaction to the August sales announcement. The stock has gained approximately 10% in the past month and 13% in the past six months.

The Investment Story: September was a month of resilience for Bajaj Auto, navigating supply chain challenges in its EV segment while demonstrating strong overall sales, profitability, and strategic ambition with the KTM acquisition.

What It Means for Investors: These developments suggest Bajaj Auto is a well-managed company capable of adapting to disruptions and pursuing growth opportunities. The strong financial results and strategic moves position it favorably, though investors should monitor the E2W segment and KTM's turnaround.

Looking Ahead: Investors should watch for updates on the rare earth magnet supply chain, the integration of KTM, and the performance of Bajaj Auto's electrified Pulsar and Boxer brands. The next earnings report will provide further insight into the company's financial health.

The Bottom Line: Bajaj Auto presents a compelling investment case, balancing short-term challenges with long-term growth potential. The company's proactive management, strong financials, and strategic initiatives position it well for future success, despite the neutral analyst sentiment.