Bajaj Auto kicked off FY26 on a steady note, posting a 5.4% year-on-year rise in net profit for the April–June quarter. The company reported a net profit of ₹2,096 crore for Q1, up from ₹1,988 crore in the same period last year. Revenue also saw a healthy uptick, climbing 5.5% YoY to ₹12,584 crore compared to ₹11,928 crore in the previous year’s first quarter.
Operationally, EBITDA came in at ₹2,481 crore, reflecting a 2.7% increase over last year’s ₹2,415 crore. However, the EBITDA margin contracted slightly to 19.7% from 20.3% a year ago.
According to the company, export performance, premium motorcycle sales, commercial vehicles, and electric scooters contributed to the revenue increase, while domestic motorcycle sales remained weak, despite showing some sequential improvement. Electric vehicles accounted for over 20% of domestic revenues in the quarter, up from the low teens last year.
Export revenues reached their highest quarterly level, supported by volume growth in Africa, Latin America, and Asia. The Middle East and North Africa region remained affected by geopolitical factors. The resumption of exports to KTM also supported growth.
Domestically, the 125cc+ motorcycle segment saw market share gains and volume growth over the previous quarter. Combined KTM and Triumph domestic billing crossed 25,000 units, up 20% YoY.
Retail sales of commercial vehicles crossed 1 lakh units for the eighth straight quarter. The company reported a threefold increase in electric three-wheeler volumes, gaining 1,000 basis points in market share to reach 36%.
Chetak EV volumes more than doubled YoY. The company expanded its reach to 750 cities with upgraded models launched last December. However, it noted the emergence of supply disruptions related to rare earth magnets later in the quarter.
Bajaj Auto generated approximately ₹1,200 crore in free cash flow during the quarter. Surplus funds stood at ₹16,726 crore. During the quarter, the company infused ₹300 crore into Bajaj Auto Credit and ₹1,525 crore into its Netherlands-based international arm to partly fund the KTM Austria transaction.
