Pune: Bajaj Auto Ltd. reported a strong financial performance for the June quarter, with net profit rising 42.3% year-on-year to ₹2,983 crore, driven by robust demand in both domestic and export markets. The company’s revenue from operations also surged 37% to ₹17,244 crore compared to ₹12,584 crore in the same period last year, reflecting broad-based growth across segments.
The impressive earnings were supported by higher volumes, improved product mix and strong traction in premium motorcycles as well as electric vehicles. The company also benefited from record-breaking export performance during the quarter.
Margin expansion and improved profitability
Bajaj Auto’s operating performance showed significant improvement during the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 44.9% year-on-year to ₹3,595 crore from ₹2,481 crore. EBITDA margin expanded to 20.8% from 19.7% in the year-ago period, indicating better cost control and favourable product mix.
The company’s tax expenses increased to ₹1,002 crore from ₹692 crore, while other income rose to ₹512 crore from ₹431 crore. Despite higher tax outgo, strong operating growth ensured a substantial rise in net profit.
Domestic business drives steady growth
The domestic business continued to deliver a strong performance, with revenue increasing 26% year-on-year. Growth was supported by double-digit expansion across motorcycles, commercial vehicles and electric vehicles.
Internal combustion engine (ICE) vehicles maintained solid demand, while the electric vehicle segment gained further momentum. Electric vehicle revenue now accounts for nearly 30% of the domestic business and almost doubled compared to the previous year, despite supply and capacity constraints.
This reflects Bajaj Auto’s growing presence in India’s rapidly evolving EV market, particularly in electric two-wheelers and three-wheelers.
Record-breaking export performance
Exports emerged as a major growth driver during the quarter, with Bajaj Auto reporting its best-ever performance in international markets.
The company recorded its highest-ever export revenue and volumes, with shipments crossing the 7 lakh unit mark for the first time. Bajaj Auto also gained market share in key international regions.
Latin America continued to perform strongly, while Africa saw a sharp rebound, with revenue more than doubling year-on-year. Growth in Africa was led by a three-fold increase in Nigeria. Commercial vehicle exports also grew around 70%, despite logistical challenges and geopolitical tensions in the Middle East and North Africa.
Motorcycle segment led by premium and sports bikes
The domestic motorcycle business posted double-digit revenue growth, supported by strong performance in the sports segment.
Retail sales in the sports motorcycle segment expanded 1.5 times faster than the overall industry, with the segment growing around 50%. Popular brands such as Pulsar, Avenger and Dominar all recorded double-digit growth.
The company expects upcoming upgrades in the 125–160cc segment to further strengthen its position in the highly competitive motorcycle market.
Premium brands KTM and Triumph gain traction
Bajaj Auto’s premium motorcycle segment, led by KTM and Triumph, continued to deliver strong growth. Domestic revenue from these brands increased 60% year-on-year.
The growth was driven by the success of the new 350cc range and the launch of the Triumph 400 series. The company has also been expanding its KTM-Triumph dealership network, which now spans more than 90 towns across India.
This expansion reflects Bajaj Auto’s focus on premiumisation and its strategy to capture higher-margin segments.
Electric vehicles and three-wheelers accelerate growth
The commercial vehicles business retained its leadership position, with revenue rising 25% year-on-year. Growth was primarily driven by electric three-wheelers, where revenue increased around 80%.
The electric three-wheeler (L5) segment has now grown to nearly two-thirds the size of Bajaj Auto’s internal combustion engine three-wheeler business.
The company is also expanding its electric rickshaw brand, Riki, which is now present in over 150 cities. Meanwhile, the Chetak electric scooter recorded its best-ever quarter in terms of volumes, revenue and profitability.
Strong demand continues to outpace production capacity, prompting Bajaj Auto to invest in expanding manufacturing capabilities and improving supply availability.
Strong cash flow and balance sheet
Bajaj Auto generated more than ₹2,300 crore in free cash flow during the quarter, representing around 80% of its reported profit after tax. The company’s balance sheet remains robust, with surplus funds exceeding ₹21,000 crore at the end of the quarter.
This strong financial position provides the company with flexibility to invest in future growth initiatives, including electric vehicles, capacity expansion and international expansion, while continuing to deliver value to shareholders.
Conclusion
Bajaj Auto’s strong Q1 performance highlights its ability to deliver consistent growth across domestic and international markets. Record exports, rising demand for premium motorcycles and rapid expansion in electric vehicles have positioned the company well for future growth.
While supply constraints and global uncertainties remain challenges, the company’s strong balance sheet, diversified portfolio and strategic investments are expected to support sustained performance in the coming quarters.
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