Bajaj Auto to Sharpen Focus on 125cc-Plus Bikes, Chetak and Exports in FY27: Chairman

Bajaj Auto will sharpen its focus on the domestic 125cc-plus motorcycle segment, accelerate the growth of Chetak, KTM and Triumph, and step up exports in FY27, even as geopolitical tensions, commodity inflation and supply-chain disruptions cloud the operating environment.

The automaker will also expand capacity for its electric vehicle and premium motorcycle portfolios, develop alternative materials and supply sources, and continue efforts to return KTM to sustainable financial performance, Chairman Niraj Bajaj said in the company’s FY26 annual report.

“As we look ahead to FY2027, the external environment remains volatile, uncertain and complex,” Bajaj said. “Geopolitical developments, commodity inflation, supply-chain disruptions and shifts in global trade dynamics are creating challenges in the operating environment that are particularly pronounced as we start the new financial year.”

However, the opportunities across markets and segments remain significant and offer “substantial headroom for growth”, he added.

India continued to offer strong long-term potential across domestic consumption and electric mobility, while the recovery in overseas markets was positive for Bajaj Auto, one of India’s largest vehicle exporters, he said.

Bajaj Auto's 10 FY27 Priorities

The company has identified ten priorities for FY27. The first is to strengthen its competitiveness in the strategically important 125cc-plus domestic motorcycle segment through product and brand interventions, along with sharper execution in the market.

Bajaj Auto will also seek to accelerate momentum at KTM and Triumph following a sharp improvement in the growth trajectory of the two premium motorcycle brands.

During the year, the company plans to “turbo charge” Chetak while strengthening its product proposition, market leadership and profitability. It will also seek to retain its position in commercial vehicles and expand its leadership in electric three-wheelers, while scaling its recent entry into the e-rickshaw market.

Exports will remain another major focus. Bajaj Auto plans to build on the recovery in key overseas markets while managing continuing disruptions in global logistics.

“The uptick and rebound across overseas markets augur well for your company,” Bajaj said, adding that the automaker manufactures in India for more than 100 countries.

To reduce supply-side risks, the company plans to add capacity, particularly for electric vehicles and premium motorcycles. It will also develop alternative materials and supply sources.

Further, Bajaj Auto will continue investing in differentiated products, brand-building and customer experience in FY27. It also plans to scale up Bajaj Auto Credit, its vehicle-financing arm, and Bajaj Auto Technology, its research and development subsidiary.

The company will maintain its focus on dynamic profit-and-loss and performance management to deliver consistent and profitable growth despite emerging challenges, Bajaj said.

FY26 in Review: Record Volumes and Revenues

The priorities follow a record performance in FY26, when Bajaj Auto posted its highest-ever annual volumes of more than 5 million units. It was the fourth consecutive year in which the company surpassed its previous performance highs.

“FY2026 has been a stellar year for your company in more ways than one, with record results on all counts across volumes, revenue, profits and cash generation,” Bajaj said.

Standalone revenue increased 17 per cent to nearly Rs 59,000 crore, supported by record domestic and export performance across vehicles and spare parts. Consolidated revenue rose 23 per cent to nearly Rs 63,000 crore.

Earnings before interest, tax, depreciation and amortisation crossed Rs 12,000 crore for the first time, while the EBITDA margin stood at 20.5 per cent. Standalone profit after tax reached a record Rs 9,825 crore. Consolidated profit after tax increased 47 per cent to Rs 10,744 crore.

Free cash flow exceeded Rs 8,000 crore, while the company closed the year with surplus cash of more than Rs 18,000 crore.

Bajaj Auto’s FY26 performance was broad-based across domestic and export operations, two-wheelers and three-wheelers, and internal combustion engine and electric vehicles.

The domestic business recorded its highest-ever revenue, supported by premium motorcycles, commercial vehicles and electric mobility. The 125cc-plus motorcycle segment remained a key growth driver, with the refreshed Pulsar portfolio receiving a strong response.

KTM and Triumph delivered their best-ever performance during the year, supported by portfolio expansion, network growth and brand activities.

Chetak volumes also touched a new high. The electric scooter business staged a recovery in the second half after supplies were affected earlier by restrictions on exports of rare-earth materials.

The commercial vehicle business crossed the 500,000-unit milestone for the first time in a full year. Its electric three-wheeler business expanded rapidly, while the company entered the e-rickshaw segment with the launch of Riki.

Exports delivered a strong comeback, with monthly volumes crossing 200,000 units after a prolonged gap. Latin America recorded another record year, while Sri Lanka, Nepal and the Philippines posted strong growth. Nigeria also showed signs of recovery.

The company’s Brazil operations scaled up during the year following capacity expansion, new product launches and the growth of its dealer network.

KTM Turnaround: Well Underway

On KTM, Bajaj said the company had worked with the Austrian management after acquiring control in November 2025 to strengthen governance, reconstitute the board, and put in place a new leadership team. “While the turnaround remains a work in progress, it is well underway,” he said.

Bajaj Auto remained confident in the strength of the KTM brand, its global customer base, and its ability to return over time to its earlier level of performance, he added.