Bajaj Auto lifts net profit 35.2% to 3,353.8 crore rupees in second quarter
Key Facts
Bajaj Auto reported a 35.2% year-on-year increase in standalone net profit to 3,353.8 crore rupees in the second quarter of fiscal 2026-2027, which ran from July to September and ended on September 30. Profit exceeded the average analyst estimate of 31.68 billion rupees, reaching the equivalent of 33.54 billion rupees, according to Reuters. The results were announced on October 27, after the stock closed up 2.58% at 10,331 rupees in the same session and before the earnings announcement. The results highlight concurrent growth in profitability, revenue and vehicle volumes during the quarter. Joint Managing Director Rakesh Sharma said the company recorded all-time highs in sales volume, revenue, earnings before interest, tax, depreciation and amortization, profit after tax and cash flow.
Standalone revenue from operations rose 34.1% to 20,003.4 crore rupees, compared with 14,922 crore rupees in the same period a year earlier. Earnings before interest, tax, depreciation and amortization increased 37% to 4,172 crore rupees, from 3,052 crore rupees. The margin on these earnings widened 40 basis points year on year to 20.9%, compared with 20.5% in the second quarter of the previous fiscal year. Profit growth outpaced revenue growth, while margins improved alongside an increase in business volumes. Bajaj Auto said a favorable currency impact, operating leverage and cost controls partly offset the recovery of some input cost inflation through pricing.
Total vehicle sales reached 1,548,884 units, up 20% from 1,294,120 units in the corresponding quarter a year earlier. Export growth was clearly faster than domestic sales growth: exports rose 41% to 778,528 units, while domestic sales increased 4% to 770,356 units. Exports thus accounted for about half of total units sold during the quarter, with their annual growth exceeding ten times the company's domestic market growth rate. Reuters linked strong demand in India's motorcycle market to the continuing impact of tax cuts in the previous year on manufacturers, despite companies raising prices to address higher costs. These figures show differing sources of growth between export markets and domestic sales.
The electric vehicle portfolio posted record sales of nearly 200 thousand units, compared with 82 thousand in the same period a year earlier, despite significant supply constraints. The company said electric vehicles had come to account for about one third of domestic revenue. On the earnings call, management said sales of electric two-wheelers and three-wheelers were nearly 200,000 units, more than doubling year on year, and that the portfolio had exceeded one third of domestic revenue and 20% of total revenue. The different wording — “about one third” and “more than one third” — in the two statements reflects estimates of the portfolio's domestic share, while both pointed to its growing weight in sales. Chief Financial Officer Dinesh Thapar said revenue growth also benefited from an improved product mix, with contributions from commercial vehicles, premium motorcycles, exports and electric vehicles.
Thapar said first-half revenue in fiscal 2026-2027 had already exceeded revenue for the whole of fiscal 2023. The statement reflects accelerating revenue over a six-month period, without changing the standalone basis of comparison in the quarterly results. According to the CFO, the growth mix included an improved product mix alongside pricing and favorable currency movements. But the currency impact could become less supportive in the current quarter if recent exchange-rate levels persist, he warned on the call. He said the reference exchange rate at the end of the previous quarter was 95.5 rupees, and October levels were lower. He added that the company would manage volatility in the external environment through disciplined pricing, cost improvements and other tools.