Bajaj Auto raises profit 35.2% to 3,354 crore rupees in second quarter
Key Facts
Bajaj Auto on Tuesday, October 27, reported second-quarter fiscal 2027 results, with standalone net profit of 3,354 crore rupees for the period ended September 30, up 35.2% year on year. Profit was 2,480 crore rupees in the year-earlier period, NDTV Profit reported. Earnings exceeded the analysts’ average estimate of 31.68 billion rupees, according to LSEG data cited by Reuters. The results reflected simultaneous growth in profit and revenue, alongside an expansion in operating margin. Joint Managing Director Rakesh Sharma said the company recorded quarterly highs in volume, revenue, profit and cash flow.
Standalone operating revenue rose 34.1% to 20,003 crore rupees, from 14,922 crore rupees a year earlier, exceeding analysts’ estimate of 18,933 crore rupees, NDTV Profit reported. Earnings before interest, taxes, depreciation and amortization rose 36.6% to 4,171 crore rupees from 3,052 crore rupees. The margin increased to 20.9% from 20.5% in the year-earlier period. The figures show profitability growing faster than revenue, while the margin improved despite input-cost pressures. Quarterly revenue also reached a record, alongside record vehicle volumes, profitability and cash generation, according to the coverage.
Overseas demand was the main driver of sales growth, with export volumes rising 41% year on year in the second quarter, outpacing domestic sales growth, Reuters reported. Export demand, together with favorable currency moves, helped widen operating margin by 40 basis points. This came as demand remained strong in India’s motorcycle market from July to September. The previous year’s tax cut continued to support vehicle manufacturers, although several companies raised prices to offset higher costs. The quarter’s performance thus combined domestic demand growth with export momentum, while currency movements contributed to margin improvement.
Bajaj Auto shares closed 2.58% higher at 10,331 rupees per share on October 27, before the quarterly results were announced, according to Moneycontrol. The share-price move therefore preceded the figures and does not represent a response to them. The timing matters when assessing the stock’s performance on announcement day, as investors traded the shares before learning the profit details. The results themselves showed revenue and profit exceeding analysts’ average estimates, alongside an improved operating margin. The available evidence did not report the stock’s movement after the results were published.
In the scooter market, Sharma said electric vehicles currently account for 25% of sales, and the company sees the share reaching about 50% over three to five years. That represents an expected shift in the sales mix over the coming years, according to the executive’s remarks reported by Business Standard. The company placed this transition in the context of its quarterly growth, which saw records in volume, revenue, profit and cash flow. The outlook remains tied to the period Sharma specified, of three to five years. His remarks did not give a more precise timing than that timeframe.