Bajaj Auto (BAJAJ-AUTO) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 revenue exceeded INR 12,500 crore, up 6% year-over-year, driven by strong exports, premium motorcycles, commercial vehicles, and electric vehicles, despite subdued domestic motorcycle sales and a volatile environment.

• EBITDA reached approximately INR 2,500 crore with a 19.7% margin, down 50 bps sequentially due to currency movement, but supported by improved mix and operating leverage.

• PAT stood at INR 2,100 crore, up 5% year-over-year, reflecting resilient operational performance.

• Export volumes grew 15% year-over-year, with historic peaks in Africa, LatAm, and Asia, and highest-ever retail sales outside Nigeria and in commercial vehicles.

• Electric vehicles contributed over 20% to domestic revenues, with Chetak volumes more than doubling and market share rising to 21%.

Financial highlights

• Standalone revenue from operations was INR 12,584 crore (up 6% YoY); consolidated revenue reached INR 13,133 crore.

• Standalone EBITDA was INR 2,482 crore (19.7% margin); profit before tax INR 2,788 crore (up 6% YoY); PAT INR 2,100 crore (up 5% YoY).

• Free cash flow generation added INR 1,200 crore, bringing surplus cash to just under INR 17,000 crore.

• Basic EPS (consolidated) was INR 79.2 for the quarter, up from INR 69.6 YoY.

• Surplus funds stood at INR 16,726 crore after strategic investments in subsidiaries.

Outlook and guidance

• Focus remains on electrification, premiumization, and export growth, with continued efforts to resolve EV supply chain issues.

• Anticipate delivering 50%-60% of planned electric two-wheeler and 70%-80% of electric three-wheeler volumes in the next quarter due to supply constraints.

• Margins expected to trend back toward FY2025 averages, with cost pressures from commodities to be offset by ongoing cost reduction and selective pricing.

• Actions underway to enhance competitiveness in the domestic motorcycle segment, especially in the 125cc+ category.

• Monitoring supply chain risks, particularly rare earth magnet availability for EVs.