Bajaj Auto Registers 14% YoY Profit Growth in Q1 FY26, Boosted by Export Surge and EV Momentum
New Delhi, August 6 — Two-wheeler and commercial vehicle major Bajaj Auto Ltd reported a 14% year-on-year (YoY) rise in consolidated net profit to ₹2,210.44 crore for the quarter ended June 30, 2025 (Q1 FY26), according to its regulatory filing. Strong export performance and a continued shift towards electric vehicles helped offset weakness in domestic sales, lifting overall financial performance.
The company’s revenue from operations grew 10% YoY to ₹13,133.35 crore during the fiscal first quarter. Total vehicle sales increased marginally by 1% to 11.11 lakh units, compared to 11.02 lakh units in the same period last fiscal.
Domestic vs Export Performance: Sharp Divergence
| Category | Q1 FY26 | YoY Change |
|---|---|---|
| Domestic Sales | 6.35 lakh units | ▼8% |
| Exports | 4.76 lakh units | ▲16% |
-
Two-wheeler sales remained flat at 9.49 lakh units
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Commercial Vehicle (CV) volumes rose 7% to 1.62 lakh units
Domestic demand remained sluggish, with the company’s India sales declining 8%, led by a 9% drop in two-wheeler sales and a 2% fall in CV volumes. In contrast, exports surged 16%, as two-wheeler exports jumped 14%, and CV exports soared 32%, driven by recovery in key international markets such as Africa, Latin America, and Asia.
Operational Highlights
- Standalone EBITDA stood at ₹2,482 crore, translating to a 19.7% margin, marginally lower by 50 basis points sequentially due to softer dollar realisation.
- Operating leverage and improved product mix helped offset higher commodity costs.
- Free cash flow generation remained strong at ₹1,200 crore.
Electric Vehicles Power Momentum
Bajaj Auto’s electric scooter ‘Chetak’ continued to scale up, with retail volumes more than doubling YoY. EVs now contribute over 20% of domestic revenue, up from the early teens last year, reflecting the company's accelerated push towards electrification. Electric three-wheelers also contributed strongly to commercial vehicle growth.
Strategic Investments & Premium Portfolio Performance
During the quarter, Bajaj Auto:
- Invested ₹1,525 crore into Bajaj Auto International Holdings BV to support the KTM Austria transaction.
- Pumped ₹300 crore into Bajaj Auto Credit, its financial arm, to expand captive financing capabilities.
The company’s premium motorcycle segment, including KTM and Triumph models, delivered robust results in India while contributing significantly to export strength. Commercial vehicle sales stayed firm, with a notable expansion in the electric 3-wheeler segment.
Strong Bottom Line Growth
- Consolidated Total Comprehensive Income rose sharply to ₹3,232 crore, compared to ₹1,979 crore in Q1 FY25.
- Basic Earnings Per Share (EPS) improved to ₹79.2, up from ₹69.6 previously.
Market Reaction
Bajaj Auto’s share price remained largely unchanged following the earnings announcement. After initially slipping in early trade, the stock quickly pared losses and was seen trading flat at ₹8,227 on the NSE during the early afternoon session.
Final Thoughts — The Trending People
Bajaj Auto’s Q1 FY26 results highlight a continuing shift in the company’s revenue mix as exports and electric vehicles emerge as strong growth drivers, cushioning weakness in domestic demand. While headwinds in the Indian two-wheeler market persist, sustained traction in EVs and a recovery in global markets keep the company well-positioned. With steady cash generation and strategic investments underpinning future opportunities, Bajaj Auto appears geared for long-term momentum — even beyond its traditional combustion-engine stronghold.