Bajaj Auto Limited

BAJAJ-AUTO

Structural risk assessment following Q4-FY26 | 31 Mar 26 earnings.

Current Risk ClassStable
🛡️
Risk Score Change(Higher = More Risk)
Quarterly AssessmentRisk Deteriorated

Q3-FY26 | 31 Dec 25

0

Risk Score

+5 pts

Q4-FY26 | 31 Mar 26

5

Risk Score

🔴Risk increased by +5 points

Flagium detected:

  • Inventory Stress

ℹ️ Executive Summary

Bajaj Auto Limited posted steady top-line growth and bottom-line stability, demonstrating resilient execution in its core markets. While the underlying business remains fundamentally sound, the presence of 1 active risk warnings highlights minor operational or working capital inefficiencies to keep on the watch list.

🛡️ Sentinel Insight

"Bajaj Auto Limited currently sits within Flagium's Stable category. However, recent periods have remained stable with minor operational friction. Despite positive top and bottom-line growth, triggers like 'Inventory Stress' indicate underlying structural risk. Current deterioration appears cyclical rather than existential."

The Quarter at a Glance

MetricQ4-FY26 | 31 Mar 26Q4-FY25 | 31 Mar 25Change
Revenue₹18,493.9 Cr₹13,038.5 Cr+41.8%
EBIT Margin16.78%21.62%-484 bps
Net Profit (PAT)₹3,492.2 Cr₹1,801.8 Cr+93.8%
Interest Expense₹344.4 Cr₹146.5 Cr+135.0%

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What Changed Beneath the Headlines?

Revenue Growth

Quarterly revenue changed by +41.8% YoY, reflecting demand and volume updates.

Net Profit Expansion

Profit after tax changed by +93.8% YoY, settling at ₹3,492.2 Cr.

Operating Margins

Operating margin declined by 484 bps YoY to 16.78%.

Flagium Risk Signals

CategoryOperational Efficiency
SignalInventory Stress
SeverityCritical

Inventory growth (203.0%) significantly outpaced revenue growth (41.8%).

What the financials are implicitly signaling

Flagium's structural analysis indicates:

  • Capacity utilization calibration is being monitored to align with slow volume intake.
  • Working capital conversion cycles require active support to sustain cash conversions.

Signals to Monitor Next Quarter

Watch 01

Resolution of 'Inventory Stress' warning: Inventory growth (203.0%) significantly outpaced revenue growth (41.8%).

Watch 02

Raw material price movement and its impact on operating margins.

Watch 03

Working capital efficiency and cash flow conversions.

Watch 04

Domestic demand recovery and segment-wise volume growth.

Historical Quality Trend

Last 6 Quarters
QuarterRisk ScoreTrendCurrent Risk Class
Q4 FY265🟢 Stable
Q3 FY260🟢 Stable
Q2 FY263🟢 Stable
Q1 FY268🟢 Stable
Q4 FY255🟢 Stable
Q3 FY250🟢 Stable

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What to do next

Disclaimer

Flagium AI is an automated financial data analytics platform. Analysis reports are compiled programmatically from public regulatory XBRL submissions (NSE/BSE). This evaluation does not constitute investment advice, financial planning, or recommendations to buy, sell, or hold any security. Please consult a SEBI-registered investment advisor before acting on any data presented.