Indian two-wheeler and three-wheeler manufacturer posts 22% EBITDA expansion with 20.8% margin as domestic electric portfolio overtakes full FY25 revenue mid-quarter.
30 Jan 2026 | 253 Views | By Shruti Shiraguppi
Bajaj Auto Limited reported standalone revenue from operations of ₹15,220 crore for the quarter ended December 31, 2025, marking 19% year-on-year growth and the first time the company has exceeded ₹15,000 crore in quarterly revenue. The Pune-based manufacturer recorded volume growth across all business segments, with total unit sales reaching ...
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Bajaj Auto Limited reported standalone revenue from operations of ₹15,220 crore for the quarter ended December 31, 2025, marking 19% year-on-year growth and the first time the company has exceeded ₹15,000 crore in quarterly revenue. The Pune-based manufacturer recorded volume growth across all business segments, with total unit sales reaching 13,41,252 vehicles.
EBITDA for Q3 FY26 reached ₹3,161 crore, up 22% year-on-year, with margin expanding to 20.8% from 20.2% in the prior-year quarter. Sequential margin improved 30 basis points from Q2 FY26's 20.5%, driven by currency tailwinds and productivity benefits that offset cost inflation absorption and margin dilution from the electric two-wheeler portfolio's highest-ever quarterly sales.
Profit after tax before exceptional items totaled ₹2,549 crore, representing 21% year-on-year growth. Reported PAT stood at ₹2,503 crore after adjusting for a one-time exceptional charge of ₹61.32 crore related to reassessment of employee benefit obligations under Labour Codes notified in November 2025.
For the nine-month period ending December 31, 2025, the company generated revenue of ₹42,727 crore (up 13% YoY) with EBITDA of ₹8,696 crore (up 14% YoY). Nine-month PAT before exceptional items reached ₹7,124 crore, a 13% increase over the prior-year period.
Export Market Performance
Export volumes reached 6,10,215 units in Q3 FY26, marking an 18% year-on-year increase and the highest quarterly export tally in 15 quarters. The export segment demonstrated sustained double‑digit growth, with two‑wheeler exports at 5,31,175 units (up 14% YoY) and three‑wheeler exports at 79,040 units (up 56% YoY).
Africa and Asia posted double‑digit growth rates, while Latin America continued to deliver market‑leading performance. For the nine‑month period, total exports stood at 16,39,971 units, up 19% from 13,73,595 units in 9M FY25. Within this, commercial vehicle exports totaled 2,16,938 units, representing 53% growth over the prior‑year period.
Domestic Market Segmentation and Product Mix
Domestic business recorded historic retail volumes driven by festive season execution. The electric portfolio contributed 25% of domestic revenues and surpassed full FY25 revenue levels mid-quarter. Domestic motorcycle volumes in Q3 reached their highest quarterly level in the 125cc+ segment, with double-digit revenue growth supported by the Pulsar portfolio's product refreshes.
The KTM and Triumph partnership portfolio scaled new volume and revenue peaks with approximately 50% year-on-year growth. Portfolio expansion and pricing interventions to absorb GST rate increases for bikes above 350cc enabled growth across Duke, Adventure, Speed, and Scrambler model lines.
Commercial vehicle domestic sales reached 1,29,829 units in Q3, with retail volumes surpassing 100,000 units for the tenth consecutive quarter. Electric three-wheelers achieved peak billings and retails during the quarter, reaching pole position in the segment. The Riki model, launched in Q2, expanded to nearly 50 cities with the addition of an e-kart variant.
Electric Vehicle Portfolio Trajectory
Chetak electric scooter production ramped substantially after addressing battery pack sourcing constraints, with Q3 volumes growing approximately 70% over Q2. The brand expanded market share by roughly 500 basis points quarter-on-quarter while maintaining its positioning on durability and reliability value propositions.
Electric three-wheeler volumes reached all-time highs during the quarter, with the segment maintaining leadership position. The combined electric portfolio's 25% contribution to domestic revenues represents a significant product mix shift within the broader two-wheeler and three-wheeler manufacturing operation.
Capital Allocation and Balance Sheet Position
Nine-month free cash flow generation totaled approximately ₹5,200 crore, up more than 70% year-on-year. The company maintained surplus funds of approximately ₹15,000 crore after distributing ₹5,864 crore in dividends and capital infusions exceeding ₹2,300 crore into subsidiaries during the period. Subsidiary funding supported partial financing of the KTM Austria transaction and expansion of the company's financing business operations.
For the quarter, sales volumes comprised 11,32,383 two-wheelers (up 7% YoY) and 2,08,869 commercial vehicles (up 23% YoY). Nine-month total volumes reached 37,46,609 units compared to 35,48,032 units in the prior-year period, representing 6% growth.
Consolidated revenue from operations for Q3 FY26 totaled ₹16,204 crore with profit after tax of ₹2,750 crore before exceptional items.