Bajaj Auto Reports 6% Revenue Growth in Q1 FY26 Driven by Exports and Electric Vehicles

Bajaj Auto Limited reported a 6% year-on-year increase in revenue from operations to ₹12,584 crores for the first quarter ended June 30, 2025, compared to ₹11,928 crores in the same period last year. The company's total income rose to ₹13,015 crores, while profit after tax grew 5% to ₹2,096 crores.

The Mumbai-based two-wheeler and commercial vehicle manufacturer sold 1,111,237 units during the quarter, representing a marginal 1% increase from the previous year. Export revenues reached record levels with two-wheeler exports growing 14% year-on-year to 419,447 units, while domestic two-wheeler sales declined 9% to 529,344 units.

Electric vehicles emerged as a significant growth driver, accounting for more than 20% of domestic revenues compared to early teens in the same period last year. The company's Chetak electric scooter retail volumes more than doubled year-on-year, contributing half of the industry's incremental volume growth. Bajaj Auto also achieved leadership in the electric three-wheeler L5 category, capturing 36% market share.

The company's EBITDA margin stood at 19.7%, down 50 basis points quarter-on-quarter, primarily due to lower dollar realization during the period. However, an improved product mix and operating leverage helped offset the impact of commodity inflation.

Commercial vehicle sales showed strong performance with over 100,000 quarterly retail units for the eighth consecutive quarter. Total commercial vehicle volumes grew 7% year-on-year to 162,446 units, driven largely by electric three-wheelers that registered approximately three times growth in retail volumes.

Premium motorcycle brands KTM and Triumph together sold over 25,000 bikes domestically, marking 20% year-on-year growth. The company expanded its premium portfolio with the introduction of KTM Enduro R and Triumph Scrambler 400XC during the quarter.

Bajaj Auto maintained a healthy balance sheet with surplus funds of ₹16,726 crores. During the quarter, the company infused ₹300 crores into Bajaj Auto Credit to finance business expansion and ₹1,525 crores into Bajaj Auto International Holdings BV, Netherlands, to partially fund the KTM Austria transaction.

The company faced some supply disruption challenges toward the end of the quarter due to unavailability of rare earth magnets for electric vehicle production. Despite this, the management highlighted the balanced business model where resurgent exports and scaling electric portfolio offset weaker domestic motorcycle performance.

Bajaj Auto operates through multiple segments including automotive, investments, and financing, with the automotive segment contributing the majority of revenues. The company has been focusing on electrification, premiumisation, and export growth as key strategic pillars.