Bajaj Auto on Wednesday reported a stronger-than-expected March quarter performance, with standalone net profit rising 34% year-on-year to a record Rs 2,746 crore, ahead of Bloomberg estimates of Rs 2,615 crore, aided by robust domestic demand, record exports and higher contribution from premium motorcycles and electric vehicles.
Revenue for the quarter rose 32% year-on-year to Rs 16,006 crore, surpassing Bloomberg estimates of Rs 15,738 crore, while Ebitda increased 36% to Rs 3,323 crore against Bloomberg estimates of Rs 3,205 crore. Ebitda margin expanded 60 basis points year-on-year to 20.8%.
Performance driven by favourable currency movement
The company said the performance was driven by record volumes, favourable currency movement and improved product mix across motorcycles, commercial vehicles and electric scooters. The quarter also included an exceptional gain of Rs 35 crore linked to a sales tax deferral loan.
Volumes during the quarter grew 24% year-on-year to 1.37 million units, led by a 30% increase in domestic motorcycle sales. The KTM and Triumph portfolio grew about 40%, while exports crossed the 600,000 unit mark during the quarter, supported by strong demand from Latin America, Africa and Asia.
Electric vehicles contributed 20% of the company’s revenue during the quarter and delivered double-digit margins. Retail sales of the Chetak electric scooter crossed the 100,000 unit mark, helped by the launch of the lower-priced C25 model. The company also emerged as the leading electric three-wheeler player in the fourth quarter, according to Vahan registration data for April.
What did executive director at Bajaj Auto say?
Rakesh Sharma, executive director at Bajaj Auto, said all business segments had contributed to the quarterly performance. “FY26 has been a defining year for Bajaj Auto,” Sharma said, adding that the company closed the quarter with its highest-ever export revenue.
He said quarterly exports had crossed 600,000 units for only the second time since 2022. According to Sharma, growth in exports was being led by Latin America, particularly for higher-end Pulsar motorcycles, while Africa and Asia also posted double-digit growth.
On the domestic market, Sharma said the motorcycle industry’s growth rate could moderate to around 9% in FY27 from about 20% in FY26, especially in the entry-level segment. However, he said the 150cc motorcycle category continued to perform strongly for the company.
He added that rising fuel prices and inflation could weigh on consumer sentiment and impact demand going forward. To offset higher raw material costs, particularly metals, Bajaj Auto implemented price hikes in April. Sharma said nearly 40% of the gains from GST reductions had already been offset by cost increases.
The company expects momentum to continue into the first quarter of FY27, with Sharma indicating that Bajaj Auto was targeting around 20% growth. The company plans to introduce a new Chetak electric scooter and refresh motorcycle offerings in the 125cc and 150-250cc categories ahead of the festive season.
Bajaj Auto’s board also approved a share buyback worth up to Rs 5,633 crore, marking its second buyback in a little over two years. The company plans to repurchase up to 46,94,000 equity shares at Rs 12,000 apiece, representing a premium of around 16.3% over the stock’s last BSE closing price of Rs 10,314.60.