Bajaj Motors came off the biggest winner, but TVS was not far behind. Hero’s EV segment trails peers, the analyst noted.
Indian two-wheeler manufacturers have started fiscal 2026 on a solid note, posting strong bottom-line gains despite domestic market challenges.
Domestic Headwinds Fail To Deter Q1 Earnings
Bajaj Auto: Reported a 14% increase in consolidated profit after tax (PAT) at ₹2,210 crore while revenue from operations rose 10% to ₹13,133 crore. Strong double-digit gains in exports, premium motorcycle sales, including KTM motorcycles, commercial vehicles, and the expanding Chetak electric vehicle segment primarily drove growth.
Hero MotoCorp: The world’s largest two-wheeler maker posted a 65% rise in net profit to ₹1,705 crore, boosted by one-time gains of ₹722 crore from the dilution of its stake in Ather Energy, which completed its IPO during the quarter. Its standalone net profit was virtually flat at ₹1,126 crore, while revenue from operations came in at ₹9,579 crore, marking a 5.5% decline.
Sluggish domestic demand dragged overall sales, but the impact was partially offset by improved export performance and higher vehicle prices over the last year.
TVS Motor: Posted a 35% increase in net profit to ₹779 crore, while revenue growth of 20% at ₹10,081 crore. The two-wheeler major’s operating EBITDA rose 32% to ₹1,263 crore. Motorcycle sales grew by 21% to 6.21 lakh units in the quarter, while scooter sales grew by 19% to 4.99 lakh units.
Analyst Take
According to SEBI-registered analyst Mayank Singh Chandel, Bajaj emerged as the front-runner in the two-wheeler space for Q1 FY26, delivering a resilient performance despite domestic headwinds.
The key growth driver was exports, which surged 16% to 4.76 lakh units, he noted. Notably, its EV segment, led by the Chetak scooters, saw retail volumes double, and now contributes over 20% of domestic revenue.
However, domestic sales dipped 8%, dragged down by a 9% fall in two-wheeler sales. Margins softened slightly to 19.7% due to weaker dollar realizations, He added
What makes Bajaj stand out is its global strategy. Success in Africa, Latin America, and Asia has helped offset domestic weakness.
Technically, the stock has been in a downtrend since September 2024, but began showing signs of reversal in March 2025.
However, Bajaj shares are currently trading within a downward-sloping channel. A breakout above the resistance zone of ₹9,177.5 – ₹9,260, supported by volume, could signal a strong upside.
Chandel noted strong growth in TVS across all categories, highlighting the strong performance of its EV segment.
On the technical charts, TVS Motor hit its all-time high on Tuesday. Despite a red candle forming on Wednesday, the structure remains bullish. If broader markets cooperate, the stock is well-positioned to continue its upward trend, he added.
Chandel attributed Hero MotoCorp’s tepid earnings performance to a decline in vehicle sales, which fell from 1.53 million units to 1.36 million units during the quarter. The company’s EVs segment also trails behind its peers, though growth is visible.
Technically, Hero’s chart mirrors Bajaj’s, he said. The stock is trying to recover from its downtrend since September 2024, but remains stuck below key resistance at ₹4,590.2. A breakout above that level could trigger a positive move.
Stock Watch
Hero’s stock was up 3.6% at ₹4,633.5, having gained over 11% YTD. Retail sentiment turned ‘bullish’ amid ‘high’ message volumes. It was ‘bearish’ a week earlier.
Bajaj shares were trading marginally higher at ₹8,193. The stock has declined 7.1% YTD. Bajaj Auto was among the top trending stocks on Stocktwits.
TVS Motor shares were also up marginally at ₹2,963.50, but have made the strongest gains YTD at over 25%.
Retail sentiment on Stocktwits jumped to ‘extremely bullish’ from ‘bullish’ a day earlier amid ‘high’ message volumes.
Sector Outlook
Chandel pegs the key resistance zone for the Nifty Auto index near ₹24,260. A decisive breakout above this level could lift the entire sector higher. However, investors are likely to remain cautious due to US President Donald Trump’s tariff moves on Indian exports.
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