Bajaj Auto board to weigh first share buyback in two years on May 6 as Q4 results loom

Key facts

• Bajaj Auto board will meet on May 6, 2026 to consider a buyback of fully paid-up equity shares.
• The last buyback was in March 2024, a ₹4,000-crore repurchase at ₹10,000 per share.
• Shares rose 2.3% to ₹9,762 on April 30, 2026 after the proposal was disclosed.
• The stock hit a 52-week high of ₹10,187 on February 26, 2026 and a low of ₹7,612 on May 9, 2025.
• March 2026 total sales rose 20% year-on-year to 4,45,377 units; domestic sales grew 20% to 2,66,290 units.
• Q3 FY26 net profit surged 19% YoY to ₹2,503 crore.
• ICICI Securities expects Q4 FY26 PAT to rise 27.5% YoY to ₹2,613.4 crore.
• The board will also consider a dividend on equity shares alongside Q4 results.

Board to deliberate buyback after two-year hiatus

Bajaj Auto's board of directors will convene on Wednesday, May 6, 2026 to consider a proposal for the buyback of fully paid-up equity shares, the company disclosed in a regulatory filing on April 30. The meeting will also address matters incidental to the buyback. The last time the Pune-based automaker undertook a share repurchase was in March 2024, when it executed a ₹4,000-crore buyback at a price of ₹10,000 per share. The record date for that buyback was set as February 29, 2024. Shares of Bajaj Auto rose as much as 2.89% to an intraday high of ₹9,819 on the National Stock Exchange following the announcement. By 11:36 AM, the stock was trading 2.32% higher at ₹9,764.50, and at 10:52 AM it stood at ₹9,762 — a 2.3% gain.

Q4 results and dividend on the same agenda

the company's earnings for the quarter and financial year ended March 31, 2026 on the same day. Alongside the results, directors are scheduled to consider and recommend a dividend on equity shares. Analysts expect a strong finish to the fiscal year. ICICI Securities projects Bajaj Auto's Q4 net profit after tax will rise 27.5% year-on-year to ₹2,613.4 crore. In the third quarter of FY26, the company posted a 19% YoY increase in net profit to ₹2,503 crore, up from ₹2,109 crore in the same period a year earlier. The company's March sales data, released earlier in the month, showed total sales climbed 20% to 4,45,377 units compared with 3,69,823 units in March 2025. Domestic sales rose 20% to 2,66,290 units from 2,21,474 units, while two-wheeler domestic sales reached 2,21,021 units, also up 20% from 1,83,659 units.

Stock performance amid broader market weakness

The buyback proposal provided a lift to Bajaj Auto shares even as the broader market faced headwinds. On April 30, the Sensex tumbled over 1,000 points and the Nifty slipped near 23,800, with realty and auto indices down 2%. Brent crude oil prices surged past $126 a barrel, stoking fears of a prolonged conflict in Iran and pressuring oil marketing companies. Despite the weak sentiment, Bajaj Auto's stock has gained 2% over the past week and 11% over the month. On a year-to-date basis, it has advanced 2%. The scrip reached a 52-week high of ₹10,187 on February 26, 2026, while its year-low of ₹7,612 was recorded on May 9, 2025.

Context of the buyback and capital allocation strategy

The proposed buyback comes a little over two years after the company's previous repurchase in March 2024. At that time, Bajaj Auto bought back shares at ₹10,000 each, a price that now sits above the current trading level. The board's decision to revisit a buyback signals confidence in the company's cash flows and a commitment to returning capital to shareholders. Bajaj Auto has consistently used buybacks and dividends as tools to reward investors. The simultaneous consideration of a dividend on equity shares reinforces this approach. The company's strong sales momentum in March, with 20% growth in both total and domestic volumes, provides a solid operational backdrop for the capital allocation decisions.

Outlook and investor expectations

Investors will closely watch the buyback size and price, as well as the dividend recommendation, when the board announces its decisions on May 6. The Q4 results will also be scrutinised for margin trends and commentary on demand, especially in the domestic two-wheeler segment which has shown robust growth. With the stock trading well below its 52-week high, a buyback could provide support to the share price. However, the broader market remains volatile due to geopolitical tensions and rising crude oil prices, which could weigh on auto sector stocks. Bajaj Auto's ability to sustain sales growth and manage input costs will be key to its near-term performance.

The bottom line

• Bajaj Auto's board will consider a share buyback on May 6, 2026, the first such proposal in over two years.
• The company will also announce Q4 FY26 results and a potential dividend on the same day.
• March sales rose 20% year-on-year, with domestic two-wheeler sales up 20% to 2,21,021 units.
• ICICI Securities expects Q4 net profit to grow 27.5% YoY to ₹2,613.4 crore.
• Shares gained over 2% on the buyback news despite a weak broader market and surging crude oil prices.
• The stock's 52-week range is ₹7,612 to ₹10,187, with the current price near ₹9,760.