Two-wheeler manufacturer Bajaj Auto shares recouped some losses but remained under pressure after reporting a steady show in the June quarter (Q1 FY26) earnings, although its margins fell below 20% for the first time in many quarters.
The Mumbai-based auto company posted a 13.8% increase in consolidated net profit at ₹2,210.4 crore for the first quarter of fiscal 2026. In a press release dated August 6, Bajaj said its revenue grew 10% to ₹ 13,133.4 crore. Margins contracted to 19.7% from 20.3% (YoY).
Bajaj Auto’s automotive segment revenue rose by 6.6% to ₹12,632.2 crore, while its financing segment surged to ₹602 crore from ₹81.4 crore a year earlier. The investments segment grew by 22% to ₹ 407.88 crore over the same period.
The company’s earnings were driven by a strong rebound in exports, particularly with the resumption of overseas shipments of its premium KTM motorcycles.
Exports rose 16% year-on-year, helping offset an 8% dip in domestic sales. Export revenue hit a record high, aided by the return of Indian-made KTM models like the Duke, which resumed shipments after Bajaj took over the Austrian brand in May. Shipments had been paused earlier due to payment concerns.
Bajaj Auto’s Q1 performance underscores a strategic pivot toward electrification, premium motorcycles, and global expansion, said SEBI-registered Financial Sarthis.
Electric vehicles now account for over 20% of domestic revenue, reflecting the company’s growing reliance on clean mobility.
Chetak EV sales more than doubled year-on-year, while electric three-wheeler (L5) volumes nearly tripled, strengthening Bajaj’s leadership in the e3W segment with a 36% market share. The newly launched Chetak 2903, available in over 750 cities, is set to drive further momentum, they added.
Revenue rose 6% despite softness in motorcycles, while EBITDA dipped slightly due to forex headwinds. The EV segment did face supply challenges, especially around rare earth magnets, but Bajaj remains focused on three pillars: electrification, premiumisation, and exports, the analyst said.
Bajaj Auto’s shares were down 0.3% at ₹8,195.5. It has shed around 7% YTD.
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