Bajaj Auto (BAJAJ-AUTO) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 delivered record highs in revenue, EBITDA, PAT, and volumes across all business units, driven by strong festive demand, GST rate cuts, and a richer vehicle mix.

• All-time high quarterly revenue of nearly INR 15,000 crore, up 14% year-over-year, with EBITDA at INR 3,000 crore (20.5% margin) and PAT close to INR 2,500 crore, up 24% year-over-year.

• Export volumes grew 24%–35% year-over-year, with broad-based growth across LATAM, Asia, and Africa, and a new record in export revenue.

• Domestic motorcycle and three-wheeler businesses achieved all-time high retail and revenue performance, with market share gains in key segments and premium bikes leading growth.

• EV portfolio (two- and three-wheelers) contributed 18% of domestic revenue, with double-digit EBITDA margin, overcoming supply disruptions.

Financial highlights

• Revenue from operations at just under INR 15,000 crore, up 14% year-over-year; H1 FY26 revenue at INR 27,506 crore, up 10% year-over-year.

• EBITDA at INR 3,052 crore (20.5% margin), up 15% year-over-year; H1 FY26 EBITDA at INR 5,534 crore.

• PAT at just under INR 2,500 crore, up 24% year-over-year; adjusted PAT growth at 12% excluding last year’s one-time tax provision; H1 FY26 PAT at INR 4,576 crore, up 15% year-over-year.

• Free cash flow generation of INR 4,500 crore in H1, with surplus cash exceeding INR 14,000 crore after major dividend and investment outflows.

• Consolidated revenue grew 19% year-over-year; consolidated PAT up 53% year-over-year, driven by turnaround in Brazil and Bajaj Auto Credit.

Outlook and guidance

• Exports expected to maintain growth momentum, with seasonality considered and capacity expansion underway.

• Domestic motorcycle industry projected to grow 6-8% in the medium term, with company aiming to outpace industry growth in 125cc+ segment.

• Three-wheeler category expected to continue growing, with company targeting to outpace industry and expand EV offerings.

• New Pulsar variants and a non-Pulsar brand launch planned in the next fiscal.

• Ongoing cost rationalization and investments in R&D and brand building to offset future PLI phase-out for EVs by 2028.