Bajaj Auto Q1 profit up 14% as exports, EVs and premium bikes drive growth

Bajaj Auto posts Rs 2,210 crore net profit in Q1FY26, up 14% Y-o-Y, with revenue rising 10% to Rs 13,133 crore, fuelled by strong exports, premium motorcycles, and EV sales

Two-wheeler major Bajaj Auto posted a year-on-year (Y-o-Y) increase of 14 per cent in its consolidated net profit at ₹2,210 crore for the first quarter of 2025-26 (Q1FY26). The revenue from operation was also up by 10 per cent, reaching ₹13,133 crore.

 

The growth was driven by strong exports, and sales of premium motorcycles, commercial vehicles (CVs), and electric two-wheeler (e2W) Chetak registering double-digit gains.

 

Sequentially, the company’s net profit rose by 22 per cent while the revenue increased by 4 per cent.

 

Free cash flow generation was ₹1,200 crore in the quarter. Surplus funds stood at ₹16,726 crore after allocating ₹300 crore to Bajaj Auto Credit and ₹1,525 crore to Bajaj Auto International Holdings BV, Netherlands, to partly fund the KTM Austria transaction.

 

The results were announced during the market hours and Bajaj’s stock fell 0.6 per cent, ending the day’s trade at ₹8,177 on the BSE. 

 

Premium motorcycles, three-wheelers, and Chetak recorded double-digit growth, driving the highest-ever Q1 revenue in the domestic market. Electric vehicles (EVs) now constitute over 20 per cent to domestic revenues compared to early teens same time last year, even as the first instances of supply disruption arising from the unavailability of rare-earth magnets started to surface later in the quarter, Bajaj said. The EV business has 10 per cent Ebitda, said Rakesh Sharma, executive director (ED), Bajaj Auto.

 

Ebitda stands for earnings before interest, taxes, depreciation and amortisation.

 

Quarterly export revenues hit a historic peak for Bajaj, continuing the double-digit growth trend seen in six of the last seven quarters. Growth was led by strong volume gains across Africa, Latin America, and Asia. Middle East and North Africa (MENA) remained muted due to geopolitical challenges while revived exports to KTM post-restructuring gave an additional boost to the company.

 

Domestic motorcycle volumes grew in double digits sequentially, led by the 125cc+ segment, which saw its market share inch up. The company revealed that strong activations drove growth despite weak entry-level sales, with notable gains in the seasonal marriage markets for 125cc+ bikes. KTM and Triumph billed over 25,000 bikes in the domestic market, up 20 per cent YoY, backed by an expanded and upgraded portfolio. New launches included the KTM Enduro R for on- and off-road, and Triumph Scrambler 400XC.

 

Three-wheeler retail sales crossed 100,000 units for the eighth consecutive quarter.