Bajaj Auto Q1FY26 Profit Rises 5% YoY to ₹2,096 Cr, Backed by Exports, EV Surge & Premium Bikes

Pune, August 6, 2025 — Bajaj Auto Limited (NSE: BAJAJ‑AUTO, BSE: 532977) posted a solid performance for the quarter ended June 30, 2025. Led by record export growth and accelerating adoption of electric vehicles, the company delivered robust earnings despite weak domestic two-wheeler volumes.

As of 3:30 PM IST Bajaj Auto shares were trading at ₹8,175.00 on August 6, down ₹46 or 0.55% from the previous session.

Standalone Financial Performance

Bajaj Auto’s standalone sales grew by almost 6% year over year to ₹12,584 crore. This was due to higher international demand and a bigger contribution from its premium electric and combustion product lines.

EBITDA was ₹2,482 crore, which is a 50 basis point drop in margin terms to 19.7% because of higher input and shipping expenses.

Profit before tax was ₹2,788 crore, while net profit climbed 5% year-on-year to ₹2,096 crore. This was thanks to good cost control and a good mix of products.

Consolidated Performance Snapshot

Bajaj Auto made ₹13,642 crore in revenue and ₹2,210 crore in net profit at the consolidated level – which includes financing and investment revenue streams. This is an 11% increase in total income and a 14% increase in net profit. These profits were much better than what the market expected; which shows how strong Bajaj’s diverse business is.

Volume and Segment Insights

Last quarter, the standalone volumes of Bajaj Auto just increased. This was primarily on account of better export performance compensating for a decline in sales of domestic two-wheelers and three-wheelers.

Indian sales declined, though other nations, such as Africa, Latin America, and Asia, supported overall volumes. The firm’s electric vehicle lineup continued to expand, and now accounts for over one-fifth of its sales in its home market.

The firm’s performance was also aided considerably by luxury motorcycles, particularly those produced by KTM and Triumph, which enjoyed good sales in key international markets.

What’s Driving Growth?

Analyst credited the robust performance to booming exports and a better product mix. The restart of international shipments of KTM motorcycles after the takeover led to a surge in export volumes, countering an 8% fall in domestic sales.

Margin pressure—EBITDA dipped below 20% for the first time in seven quarters—could not stop Bajaj from being India’s top two-wheeler exporter and one of the most profitable in EBITDA terms.

The EV business exhibited healthy momentum. Bajaj Auto is becoming a market-leading player in both the electric two-wheeler and e-three-wheeler segments with YoY cost share gains and doubling of retail volumes in the 3W electric segment. The EV portfolio now contributes more than 20% of domestic revenue, from a low-teens base during the previous year.

Sector Context & Broader Market Trends

India’s electric two-wheeler sales rose 32% in June 2025 to over 1 lakh units, with Bajaj Auto capturing nearly 23% market share—second only to TVS. Combined penetration of EVs in two-wheelers was 7.3%, illustrating a steady shift toward electrified mobility. Ola Electric’s market share declined sharply during the same period.

Outlook & Management Commentary

The company attributed the strong performance to its diversified growth engines:

“Resurgent exports and scaling up of the emerging electric portfolio more than made up for the domestic motorcycle performance,” the company stated in its investor update.

Investor Takeaway

Bajaj Auto delivered a balanced performance in Q1FY26—performance that surpassed expectations—leveraging export strength, premium brands, and emerging EV momentum. While domestic volume softness and margin contraction merit caution, the company’s profitability levers and strong cash flow provide flexibility. With EVs now contributing materially to revenue, clear leadership in key global markets, and disciplined capex execution, the firm presents a compelling growth story—provided valuations remain in check. Monitor margin recovery trends and new model launches as the EV shift gathers pace.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/c218247f-2080-4b37-8d02-44d71f66b1f1.pdf

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