SynopsisBajaj Auto shares rose 2.5% after the company reported a 46% year-on-year jump in Q1FY27 net profit to Rs 3,226 crore, while revenue surged 65% to Rs 21,689 crore. Following the strong performance, Motilal Oswal upgraded the stock to 'Buy' from 'Neutral', raising its target price to Rs 12,096, implying a potential 16% upside.ETMarkets.comShares of two-wheeler major Bajaj Auto rallied 2.5% to Rs 10,678 on the BSE on Wednesday after the company reported a consolidated net profit of Rs 3,226 crore for the first quarter of FY27, marking a 46% increase from Rs 2,210 crore in the year-ago period. The net profit is attributable to the owners of the company.The company’s revenue from operations stood at Rs 21,689 crore, up 65% from Rs 13,133 crore in the corresponding period last year.Buy, sell or hold Bajaj Auto shares?Motilal Oswal upgraded Bajaj Auto to 'Buy' from 'Neutral' and raised its target price to Rs 12,096, implying a potential upside of 16%, citing the company's strong Q1 performance and healthy outlook across segments. The brokerage said Bajaj Auto sustained robust margins despite higher input costs and expects its healthy product launch pipeline to support a gradual recovery in domestic motorcycle market share.The export outlook also remains strong, with management targeting exports of more than 250,000 units per month in Q2, while the company continues to outperform in the EV segment across both two-wheelers and three-wheelers. Following the better-than-expected Q1 performance, Motilal Oswal raised its EPS estimates by 5% for FY27 and 9% for FY28. It expects revenue, EBITDA and PAT to grow at CAGRs of 20%, 22% and 22%, respectively, over FY26–FY28E.Nuvama maintained a Buy rating with a target price of Rs 12,000 (15% upside), citing the company's enhanced EV portfolio with new features and performance upgrades, along with additional launches expected in the near term.Also read:Bajaj Auto Q1 Results: Cons PAT surges 46% YoY to Rs 3,226 crore; revenue zooms 65%The brokerage expects exports to grow at a 16% CAGR, driven by strong demand across Latin America, Asia and Africa. It also forecasts 3W exports to clock a 20% CAGR, while domestic 3W sales are expected to grow 4% CAGR over FY26–FY28E, aided by replacement demand and rising EV adoption. Bajaj Auto's entry into the e-rickshaw segment, estimated at 30,000 units per month, is also expected to support growth as it expands into more cities.JM Financial maintained its 'Reduce' rating but raised the target price to Rs 9,850 from Rs 9,600, implying a 5.3% downside. It noted Bajaj Auto's market share slipped to 10.5% in Q1FY27 from 10.8% in Q4FY26, well below the 12.1% level seen in January 2024. With limited traction beyond the Pulsar franchise, the brokerage does not expect meaningful market share gains despite new launches.That said, JM Financial raised its FY27 volume growth estimate to around 14% from 11%, driven by strong exports to Africa and Latin America. While raw material inflation and new launch costs may pressure margins, cost optimisation and favourable currency movements could provide some support.Read more:Bajaj Auto's systems hit by ransomware attackBajaj Auto Q1 highlightsBajaj Auto said its strong Q1 performance was driven by record quarterly volumes and better realisations. The company posted broad-based double-digit growth across ICE and EV segments, domestic and export markets and two- and three-wheelers despite a challenging external environment.Exports delivered their strongest quarter ever, with record revenue and volumes surpassing the 700,000-unit mark for the first time.Total sales, including exports, rose 29% year-on-year to 12.22 lakh units in Q1FY27 from 9.48 lakh units a year ago. Commercial vehicle volumes outpaced overall growth, increasing 33% to 2.15 lakh units from 1.62 lakh units in the corresponding quarter last year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. 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