Bajaj Auto on Tuesday beat profit estimates in the April-June quarter, although revenue and operating profit came in below expectations, as strong growth in domestic and export markets, higher realisations and an improving product mix offset pressure from elevated input costs.
Standalone net profit rose 42% year-on-year to Rs 2,983 crore, surpassing Bloomberg estimates of Rs 2,763 crore. Revenue from operations increased 36% to Rs 16,462 crore, missing Bloomberg’s estimate of Rs 16,962 crore. Ebitda grew 42% to Rs 2,813 crore but fell short of the Bloomberg estimate of Rs 3,402 crore. Ebitda margin improved 71 basis points year-on-year to 17.1%, supported by operating leverage and a favourable product mix.
The company said it delivered its highest-ever quarterly volumes and revenues, driven by broad-based growth across domestic and overseas markets, internal combustion engine (ICE) and electric vehicles, as well as better dollar realisations.
The Pune-based two- and three-wheeler maker said total sales volumes rose 29% year-on-year to 1.44 million units. Two-wheeler volumes increased 29% to 1.22 million units, while commercial vehicle sales rose 33% to 216,000 units. Export momentum remained strong, with two-wheeler exports climbing 52% to 636,000 units. The company said it could have crossed the 1.5-million-unit mark during the quarter but lost 10,000-15,000 units because of logistics disruptions and capacity constraints.
Joint Managing Director Rakesh Sharma said growth was led by the 125-cc and 150-cc motorcycle segments and the electric two- and three-wheeler portfolio. The 150-250 cc motorcycle segment expanded about 20%, while the sports motorcycle range, comprising Pulsar, Avenger and Dominar, outpaced the broader industry with retail growth of around 1.5 times.
The company is expanding annual manufacturing capacity by around 25%, from 7 million units to 9 million units, through a mix of brownfield and greenfield investments. Sharma said existing facilities were nearing capacity limits and the additional capacity would cater to ICE motorcycles, premium motorcycles and electric two- and three-wheelers. The location and investment for the new plant are under evaluation, with multiple states expressing interest. Electric vehicles now account for around 30% of the company’s revenue and are contributing meaningfully to profitability, Sharma said.
Bajaj plans to strengthen the Chetak scooter portfolio with additional models and is also developing electric motorcycles and an electric version of the Qute quadricycle. Sharma added that the restructuring of KTM was progressing after the company infused liquidity, revamped leadership and increased sourcing from India to improve costs.