Bajaj Auto Q4 profit more than doubles to ₹3,662 crore on record volumes

Bajaj Auto reported strong Q4 FY26 earnings, driven by record volumes, export growth, improved product mix and rising contribution from electric vehicles

Bajaj Auto reported a sharp jump in its Q4 FY26 consolidated performance, with profit after tax (PAT) more than doubling to ₹3,662 crore, up 103 per cent year-on-year (Y-o-Y), while revenue from operations rose 41 per cent Y-o-Y to ₹17,832 crore.

 

The earnings are not strictly comparable with the year-ago period, as they include the impact of consolidating Bajaj Auto International Holdings AG (BAIHAG) — the holding entity for KTM and Bajaj Mobility AG — as a subsidiary effective November 18, 2025. This led to a one-time gain of ₹1,195 crore from fair-value remeasurement and reclassification of foreign currency translation reserves, significantly boosting reported profitability.

 

 

For the full year, consolidated revenue from operations grew 23 per cent Y-o-Y to ₹62,905 crore, while PAT increased 47 per cent to ₹10,744 crore.

 

During the quarter, growth was driven by record volumes, improved mix and favourable currency movements, resulting in broad-based double-digit expansion across domestic motorcycles, electric two-wheelers, three-wheelers and exports.

 

Rakesh Sharma, executive director, Bajaj Auto, said, “Supply chain difficulties we have experienced in terms of LPG shortage, manpower availability and a lot of complexity in outbound logistics, particularly to overseas markets. This has, I would say, impaired availability by about 10 to 15 per cent.” He added that the cost environment saw a rise of about 3-5 per cent during the quarter, driven by metals.

 

“This has been partially addressed by us taking up prices with effect from April 1. What is very helpful is the US dollar realisation rates are now reaching ₹95 to the dollar, and this has been very helpful in managing the cost-side inflation.”

 

Domestic motorcycles delivered a milestone quarter, with revenues rising about 30 per cent year-on-year, driven by multiple Pulsar N/NS interventions and upgrades since October, which now account for over 50 per cent of Bajaj’s sales in the 150 cc-plus segment and supported market share gains.

 

KTM and Triumph delivered a record domestic performance of 43,000 units, up 43 per cent, growing faster than the industry on post-GST demand momentum. The partnership sustained over 40 per cent Y-o-Y growth, with KTM led by the Duke range and Triumph by the Speed 400, while together emerging as the leader in the fast-growing adventure segment.

 

Chetak delivered its strongest performance yet, with retail volumes crossing the 100,000 milestone in a single quarter, including over 50,000 units in March alone, while market share rose to 22.8 per cent despite earlier supply constraints. The network has expanded to over 500 exclusive stores and 4,000 additional outlets across more than 850 towns. The electric vehicle (EV) portfolio now contributes over 20 per cent of domestic revenues and delivers double-digit margins.

 

Exports remained a key growth driver, exceeding the 600,000-unit mark for the quarter again, with revenues growing over 30 per cent Y-o-Y. This was led by another record performance from the Pulsar range, while Latin America continued to set new benchmarks and both Africa and Asia posted strong double-digit growth.

 

Sharma said full-year export revenue was the highest ever at $2.2 billion. “Our largest market, Nigeria, is operating at about 50 per cent of its peak in 2022. We did 75,000 units earlier, and now we have done about 36,000 units. This signals how well the business unit is doing in other regions. Nigeria has also arrested its decline in quarter four and is now almost at par with Q4 last year,” he said.

 

Latin America was the standout, with Bajaj recording its highest-ever quarterly sales in both volume and revenue, driven by higher-end Pulsar models. Asia posted double-digit growth led by Sri Lanka, the Philippines and Nepal, while Bangladesh remained weak. The Brazil subsidiary crossed 10,000 units, aided by capacity expansion to 60,000 units annually, placing Bajaj among the top five despite its relatively recent entry. Overall, exports maintained strong momentum at around 200,000 units per month, with a push towards 220,000.

 

KTM turnaround likely to take 18 months

 

The KTM turnaround is well underway. “The first step was liquidity, which has been addressed, along with efforts to reduce the cost of funds and restructure loans. The second is strengthening top management, with a new commercial officer, CFO and CTO now in place. The third is cost reduction, including shifting sourcing to more competitive regions outside Europe, which is in progress through multiple project teams,” said Rakesh Sharma, executive director, Bajaj Auto.

 

There is also restructuring of subsidiaries and cost structures. The turnaround is being driven by KTM’s management with governance and oversight from Bajaj Auto, and is expected to take about 18 months. “We have exported about 17,000 units manufactured in India under the KTM brand. This footprint will be expanded progressively, but in a deliberate manner to ensure quality, supply continuity and alignment with customer preferences,” he added.