Bajaj Auto delivered exceptional Q1 results with net profit rising 42.3% year-on-year to ₹2,983 crore from ₹2,096 crore, supported by robust growth across domestic and export markets. Revenue from operations increased 37% to ₹17,244 crore from ₹12,584 crore in the year-ago period. EBITDA climbed 44.9% to ₹3,595 crore from ₹2,481 crore, while EBITDA margin expanded to 20.8% from 19.7% a year earlier. The company generated more than ₹2,300 crore in free cash flow during the quarter, representing around 80% of reported profit after tax. Its balance sheet remained strong, with surplus funds exceeding ₹21,000 crore at the end of the quarter, providing ample room to invest in future growth while continuing to deliver returns to shareholders.
Exports hit a record 7.32 lakh units (+54% YoY), crossing the 700,000-unit mark for the first time, outpacing domestic volumes and driving the strong quarterly performance. The record export volumes were driven by strong demand in Africa and Latin America, with the company benefiting from favorable market conditions in these key regions. Revenue and PAT growth far exceeded most street estimates, with previews being around +25-33% for PAT, representing a significant beat across all financial metrics. Latin America continued to deliver strong growth, while Africa rebounded sharply, with revenue more than doubling year-on-year, led by a three-fold increase in Nigeria. Commercial vehicle exports rose around 70%, despite logistical challenges and geopolitical tensions in the Middle East and North Africa.
Bajaj Auto achieved a landmark quarter for its Chetak electric scooter, registering its highest-ever sales and volumes during the quarter. The company delivered more than 1.5 lakh electric vehicles across electric two-wheelers (E2Ws) and electric three-wheelers (E3Ws), representing double-digit volume growth. According to CFO Dinesh Thapar, the company ended the quarter as the market leader in India's electric three-wheeler segment and expects to further strengthen its market share during the third and fourth quarters. The Chetak electric scooter business also delivered a record quarter across volumes, revenue and profitability, with demand continuing to outpace production capacity, prompting investments to expand manufacturing and improve availability. The company is planning a 50% expansion in electric three-wheeler production capacity to cater to rising demand.
The domestic business delivered another strong quarter with revenue rising 26% year-on-year, driven by double-digit growth across all segments. In the domestic motorcycle segment, revenue grew at a double-digit pace, driven by strong demand for the Pulsar, Avenger, and Dominar brands. The sports motorcycle segment expanded around 50%, while the KTM and Triumph brands reported 60% revenue growth, supported by the popularity of the new 300cc range, the launch of the Triumph Tracker 400, and network expansion. Electric vehicle revenue nearly doubled from a year ago and now accounts for around 30% of the domestic business despite capacity and supply constraints. The commercial vehicle business retained its leadership position, with revenue increasing 25% YoY.
Bajaj Auto shares climbed as much as 4.14% to a fresh 52-week high of ₹10,839.45 following the strong earnings announcement, with the stock trading 2.03% higher at ₹10,615.00 as of latest reports. The rally came after the company reported robust consolidated net profit growth and record export performance. The company's electric three-wheeler (L5) segment revenue surged around 80%, taking the business to nearly two-thirds the size of its ICE three-wheeler franchise. The revenue from the electric three-wheeler segment jumped around 80%, with the company accelerating capacity expansion and widening the reach of its electric rickshaw brand, Riki, which is now available in more than 150 cities. The company's fortress balance sheet with large cash surplus supports future growth investments while maintaining returns to shareholders. Bajaj Auto's board has approved a final dividend of ₹150 per share for FY2026, with an effective date of May 29, 2026.
