This article first appeared on GuruFocus .
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Revenue:INR 17,244 crores, a 37% year-on-year growth.
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EBITDA:INR 3,596 crores, a 45% year-on-year growth.
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EBITDA Margin:20.9%, an improvement of 10 basis points sequentially.
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Profit After Tax (PAT):INR 3,000 crores, up 42% year-on-year.
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Volumes:1.4 million units, a growth of 29% year-on-year.
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Exports Revenue:40% of total revenue, with 732,000 units sold.
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Cash Flow:Free cash flow of INR 2,300 crores, almost double from last year.
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Cash Reserves:Surplus cash in excess of INR 20,000 crores.
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Electric Vehicles (EVs):30% of domestic revenues with double-digit EBITDA percentage.
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Currency Realization:USD/INR rate at 94.4, compared to 90.6 in the previous quarter.
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Spare Parts Revenue:Maintained at INR 1,700-plus crores.
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Store Count:Over 530 exclusive Chetak stores and 90 KTM and Triumph outlets.
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Release Date: July 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bajaj Auto Ltd ( BOM:532977 ) delivered its highest quarterly performance with volumes at 1.4 million, revenue of INR17,000 crores, EBITDA of INR3,500 crores, and PAT of INR3,000 crores.
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The company's electric 2-wheeler and 3-wheeler businesses delivered their largest ever quarter, now accounting for 30% of domestic revenues with double-digit EBITDA percentage.
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Exports business unit achieved a new high of 732,000 units, accounting for 40% of Bajaj Auto's revenue, with significant market share gains in key markets like Nigeria and Mexico.
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The domestic 2-wheeler segment, particularly the 150cc-plus segment, showed faster than industry growth, driven by new variants and strategic portfolio makeovers.
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Bajaj Auto Ltd ( BOM:532977 ) plans to expand capacity by almost 25% from the current 7 million units per annum to 9 million units per annum, focusing on EVs, high-end motorcycles, and 3-wheelers.
Negative Points
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The company faced significant supply chain disruptions, including a ransomware attack and LPG supply issues, which impaired availability by 10% to 15%.
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Commodity inflation intensified, with the overall inflationary impact for the quarter reaching about 4.5% of revenue, driven by sharp increases in steel, aluminum, and other materials.
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The 100cc and 125cc segments of motorcycles showed flattish growth, indicating a shift in consumer preference towards higher segments.
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Capacity constraints in both electric and ICE models restricted sales, particularly in the 3-wheeler segment, affecting the ability to fully service demand.
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The operating environment remains volatile and uncertain, with broader cost pressures expected to impact the second quarter, including proprietary components, electronics, and logistics.
Q & A Highlights
Q: Demand in the premium segment remains strong, but not in the below 125cc segments. Is there a shift from ICE to EVs, and if so, from which segment? A: The GST cut last year drove high growth, but inflation and the West Asia crisis affected consumer sentiment. The upper half of society is economically stronger, while the lower half is weaker, affecting segment growth. The 150cc to 250cc segments are growing at 20%+, while the 100cc and 125cc segments are growing at low single digits. EV growth is strong, driven by operating economics, and is cannibalizing ICE scooters more than motorcycles.
Q: What is the capacity expansion plan for both 2-wheeler and 3-wheeler EVs? A: Currently, the capacity for EV 2-wheelers is 50,000 units, which will be increased to 60,000 through productivity measures. Bajaj Auto is optimistic about industry growth and plans to unlock more capacity in EVs, high-end bikes, and 3-wheelers. The company aims to increase overall capacity from 7 million to 9 million units per annum.
Q: Can you clarify the upcoming product launches in the 150cc and 125cc segments? A: Bajaj Auto plans to launch a new 150cc under the Pulsar brand, along with several refreshes in the 125cc segment. The company aims to introduce two new brands in the 125cc segment within fiscal '27. The focus is on the 125cc to 400cc segment, leveraging the Pulsar, Dominar, KTM, and Triumph brands to capture market share.
Q: How does Bajaj Auto plan to manage cash on the books, considering the high cash flow generation? A: Bajaj Auto had INR21,000 crores of cash at the end of June, with significant outflows for dividends and buybacks in July. The company expects cash to build back to around INR15,000 crores by the end of the financial year. Bajaj Auto has committed to a 100% payout ratio and opted for a hybrid route of base dividend plus buyback due to attractive tax rates for non-promoter shareholders.
Q: What is the profitability of the electric 2-wheeler and 3-wheeler business? A: The electric portfolio, comprising 2 and 3-wheelers, maintains a double-digit EBITDA margin. The Chetak electric scooter has moved from EBITDA-neutral to EBITDA-positive, contributing to the overall profitability of the electric business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
