
Five blue-chip auto stocks to add to your watchlist
Subscribe to enjoy similar stories. Auto stocks sit at the intersection of economic cycles, consumer demand, and capital discipline. When the cycle turns favourable, companies with scale, brand strength, and execution consistency tend to pull ahead, compounding value without drawing attention.
The GST rate cut on vehicles has reignited demand by improving affordability. That is where blue-chip auto names stand out. These companies have strong market presence, brand loyalty, diverse revenue streams in the domestic and export markets, and strong balance sheets.
Over time, they have shown an ability to protect margins, reinvest through cycles, and adapt to shifts in technology and regulation. This editorial focuses on five such blue-chip auto stocks. Bajaj Auto is a diversified automotive company engaged in the design, manufacturing, and sale of 2-wheelers (2W), electric vehicles (EV), and 3-wheelers (3W).
The company targets the 125 cc-plus and 150 cc-plus segments. Bajaj Auto has also acquired a controlling stake in struggling brand KTM, increasing its stake to nearly 75%. It manufactures KTM bikes in India for both domestic sales and exports to markets such as Austria.
It’s currently driving a turnaround plan for KTM AG. From a financial perspective, revenue increased 19% year-on-year (YoY) to ₹15,220 crore, crossing the ₹15,000 crore quarterly revenue milestone for the first time. Bajaj's volume growth was lower than the industry's (15-17%) in Q3 FY26.
Ebitda increased 22% to a record ₹3,160 crore, while margins expanded to 20.8%. Profit after tax (PAT) grew 21% to ₹2.540 crore. Looking ahead, the management aims to outpace industry growth in the 125 cc-plus and 150 cc-plus segments.
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