Maruti Suzuki vs Bajaj Auto: Which auto stock to buy ahead of Q2 results 2026? Experts decode
Maruti Suzuki vs Bajaj Auto: Auto manufacturing companies Maruti Suzuki and Bajaj Auto shares will remain in focus on Tuesday, 27 October, as both the companies are scheduled to release their Q2 results 2026 today.
Maruti Suzuki shares climbed as much as 1.83% during intraday trade on Tuesday, hitting a high of ₹11,436 apiece. Meanwhile, Bajaj Auto shares advanced 2.71% to ₹10,332 on 27 October.
Brokerage firm Axis Direct expects Maruti Suzuki's total revenue to increase by around 29.8% year-on-year, supported by a 26.5% rise in volumes and a 3% improvement in average selling prices (ASPs) over the past year. Growth is likely to be aided by a favourable product mix, with utility vehicles (UVs) accounting for 34% of the mix in Q2FY27, up from 28% in Q2FY26. A stronger export mix and contributions from new product launches are also expected to support revenue growth.
It further projects EBITDA margins to expand by around 37 basis points year-on-year but contract by 195 basis points sequentially. Elevated raw material costs and supply chain disruptions are likely to weigh on margins, partly offset by higher sales of new models and increased export volumes.
According to Seema Srivastava of SMC Global Securities, higher volumes, a greater contribution from SUVs and improved operating leverage could support revenue growth and margins. The expansion in production capacity could also help the company cater to demand more effectively.
However, profitability may face some pressure from promotional discounts, raw-material costs, dealer inventory levels and competitive pricing. Investors will therefore watch whether the increase in sales volumes translates into stronger earnings and whether the company can sustain margins amid competition.
The brokerage firm expects Bajaj Auto's total revenue to grow around 26% year-on-year and 9% quarter-on-quarter, supported by a 20% YoY and 8% QoQ increase in overall volumes. Rupee depreciation is likely to support exports, while a favourable product mix and price hikes are expected to drive improvement in average selling prices (ASPs).
EBITDA margins are projected to remain largely flat year-on-year but decline by 40 basis points sequentially. Higher raw material and commodity costs, particularly aluminium and other metals, are expected to weigh on margins, partly offset by stronger export volumes.
Srivastava said Bajaj Auto could appeal to investors seeking export-led growth, supported by robust international demand, healthy commercial vehicle sales and traction in premium motorcycles.
On the profitability front, favourable export realisations, improved operating leverage and price increases to offset higher input costs could support operating margins. However, investors will need to monitor commodity price volatility, currency movements, competitive intensity and developments related to KTM.
Analysts see both companies as well-positioned to benefit from favourable demand trends, but their differing earnings drivers could influence investor preference ahead of the results.
Srivastava said Maruti Suzuki may be the preferred choice for investors seeking relatively stronger domestic volume visibility, while Bajaj Auto could suit those looking for export-driven growth and resilient margins.
She said, “Both companies are positioned to benefit from favourable demand trends, but their earnings drivers differ. Bajaj Auto’s investment case rests on export sustainability, premiumisation and margin resilience, whereas Maruti Suzuki’s outlook depends on domestic demand, capacity utilisation and product mix improvement.”
Mahesh M Ojha of Kantilal Chhaganlal Securities also favoured Maruti Suzuki on valuation grounds. He noted that both stocks were trading in negative territory, but said Maruti Suzuki's valuations appeared more attractive compared with Bajaj Auto.
Ojha recommended buying Maruti Suzuki with a stop-loss at ₹10,790 and targets of ₹11,580–11,700 and above.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsMaruti Suzuki vs Bajaj Auto: Which auto stock to buy ahead of Q2 results 2026? Experts decode
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