Bajaj Auto Ltd. delivered exceptional Q2 FY27 results, with standalone net profit jumping 35.2% year-on-year to ₹3,353.8 crore, significantly outperforming the earlier projected 27% growth and Bloomberg estimate of ₹3,156 crore. Revenue from operations rose 34.1% to ₹20,003.4 crore compared with ₹14,922 crore in the corresponding quarter last year, surpassing the estimated ₹18,933 crore. EBITDA increased 36.6% to ₹4,172 crore from ₹3,052 crore, with EBITDA margin expanding 40 basis points year-on-year to 20.9% from 20.5%, beating the expected 20.7% margin. The company achieved a milestone of crossing ₹4,000 crore EBITDA for the first time, with revenue doubling over the past three years to reach record levels. The company's sequential performance also showed strong momentum with revenue up 16%, EBITDA rising 16%, and net profit growing 12% compared with the preceding quarter.
Total vehicle sales rose 20% year-on-year to 15,48,884 units during the September-ending quarter, compared with 12,94,120 units in the year-ago period, meeting earlier projections. Exports emerged as the major growth driver, with overseas shipments surging 41% to 7,78,528 units from 5,53,327 units a year earlier. Two-wheeler exports jumped 43% to 6,76,545 units, while commercial vehicle exports increased 26% to 1,01,983 units. Domestic sales grew at a more modest pace of 4% to 7,70,356 units, with two-wheeler sales increasing 2% to 6,07,416 units and commercial vehicle sales rising 13% to 1,62,940 units. Across both domestic and export markets, total two-wheeler volumes climbed 20% to 12,83,961 units, while commercial vehicle sales increased 18% to 2,64,923 units. The September quarter marked record levels for vehicle volumes, revenue, profitability and cash generation, with revenue growth exceeding 20% across powertrains, markets and vehicle categories including two-wheelers and three-wheelers.
Bajaj Auto shares closed 2.58% higher at ₹10,331 apiece on Tuesday, ahead of the quarterly earnings announcement, reflecting strong investor confidence in the results. The positive market reaction demonstrates investor satisfaction with the company's ability to deliver robust financial performance across key metrics. The stock movement suggests market participants view the results as exceeding expectations, particularly given the strong export performance and margin expansion that exceeded earlier projections. The record quarterly performance across all key metrics has reinforced investor confidence in the company's operational capabilities and market positioning.
Despite earlier concerns about higher raw material costs potentially pressuring margins, the company delivered EBITDA margin expansion of 40 basis points year-on-year to 20.9%, demonstrating effective cost management and operational efficiency. The company attributed its performance to record vehicle sales, better product mix, pricing measures and favourable currency movements. Operating margins remained steady at 20.9% despite higher input costs and volatile commodity prices, with the company navigating inflationary pressures and supply constraints in its electric vehicle business. The margin improvement was achieved through positive currency impact that cushioned some of the increase in input costs, as the company's high export exposure makes currency movements particularly relevant to profitability. Other income also surged to ₹419 crore in the quarter from ₹369 crore in Q2FY26, while tax expense increased to ₹1,104 crore from ₹815 crore in the corresponding period last fiscal.
The strong Q2 results are expected to reinforce positive brokerage expectations, with earlier projections of 28% revenue growth and 26-30% EBITDA growth now appearing conservative. Jefferies and Macquarie had previously expected net sales growth of 28% and revenue growth of 26% respectively, while Bank of America maintained a price objective of ₹13,700 based on 25 times estimated fiscal 2028 earnings. Investors will focus on management's commentary on quarterly export volume growth, the impact of raw material costs, and the outlook for margins across ICE and EV portfolios, with the performance of the refreshed Pulsar range being particularly important as the company looks to capitalise on festive demand. The milestone achievement of crossing ₹4,000 crore EBITDA and doubling revenue over three years positions the company well for continued growth.
