Bajaj Auto posted a strong performance during the first quarter of fiscal 2025-26, reporting year-on-year growth in major financials during a testing environment. The consolidated net profit in Q1 has increased 14% year-on-year at Rs 2,210 crore from Rs 1,942 crore in the corresponding period last year. On a standalone basis, net profit also saw a 5.4% increase to Rs 2,096 crore from Rs 1,988 crore in Q1 FY25, as expected on the streets.
Revenue and Volume Growth
The operations revenue of the automaker climbed 10% year-on-year to Rs 13,133 crore on a consolidated basis and 5.5% to Rs 12,584 crore on a standalone basis. This revenue expansion was driven by robust double-digit increases in exports, premium motorcycles, commercial vehicles, and sustained growth in the electric vehicle (EV) segment led by the Chetak EV. Volumes grew modestly by 1% sequentially and year-on-year—reflective of a resilient demand environment despite headwinds in the industry.
Profitability and Margins
Bajaj Auto reported an EBITDA of Rs 2,481 crore, a 3% expansion over the prior year. EBITDA margins, though, contracted by 50–60 basis points to 19.7% (from 20.3% in the previous year), driven largely by reduced US dollar realisations affecting exports. Nevertheless, the company was aided by a better product mix and operating leverage partly moderating negative commodity inflation and currency movements.
Strategic Highlights
One of the key highlights for the quarter was the stepped-up contribution of electric vehicles, with the latter representing more than 20% of Bajaj Auto’s total portfolio now, against the low teens a year earlier. The firm also witnessed sound double-digit volume growth in Africa, Latin America, and Asia, with the Middle East and North Africa regions being subdued on the back of geopolitical tensions.
In the domestic market, Bajaj Auto registered significant improvement in the 125cc+ segment with market share gains and a year-on-year increase of 20% in high-end KTM and Triumph motorcycles, amounting to more than 25,000 units billed in the quarter.
Financial Strength and Outlook
Although there was a capital injection into its financing business and global businesses, Bajaj Auto had a strong balance sheet with excess cash at Rs 16,726 crore at quarter’s end. The company had a good free cash flow of around Rs 1,200 crore for the quarter, which reflected on-going operational and financial prudence.
Although margins have been under some pressure, Bajaj Auto’s capacity to earn cash, broaden the product basket, and expand export and EV businesses is cementing its place in the auto industry. The corporation is well-positioned to withstand changing market conditions, supported by innovation and healthy finances.
