Bajaj Auto has had one of the best quarters yet. The company had its highest ever revenue and profit, demonstrating steady growth in all areas of the business.
For the second quarter of FY26, Bajaj Auto’s revenue from operations touched almost Rs15,000 crore. This was from a better mix of vehicles and record spares sales. Even with supply problems associated with rare earth magnets that slowed electric models, the company’s performance remained strong.
Its EBITDA crossed Rs 3,000 crore for the first time with a margin of 20.5 percent. Profit after tax was also at a new high. The growth was supported by good foreign exchange benefits, improved operating leverage, and continued focus on R&D and brand building.
In the domestic market, Bajaj experienced record revenues. Premium bikes and commercial vehicles grew in double digits. The festive season and the reduction in the GST rate contributed to the rise in sales. Even though the production of electric vehicles was impacted in the current quarter, Bajaj has added in excess of Rs10,000 crore of EV revenue over the past two years. Exports did very well as well.
Overseas revenue increased 35% year on year. Strong growth came from Africa, Asia, and Latin America. KTM exports increased and the demand for three-wheelers also went up, which led Bajaj to expand production capacity.
In motorcycles, domestic revenue increased by double digits. The Pulsar brand continued to be a major driving force and its new campaign – “Duniya Dekhti Hai, Tu Dikha” – is connecting well with the customers. The performance of KTM and Triumph were another highlight together. Combined they sold and exported more than 60,000 bikes, an increase of approximately 70% from last year. The new KTM Duke 160 & Triumph Thruxton 400 brought freshness to the lineup.
The commercial vehicle business also hit record levels both in terms of volume and revenue. Electric CVs increased 1.5 times year-on-year, although supply issues constrained overall numbers. Bajaj also entered the big e-rickshaw market with its new model Riki, which is now available in four cities.
On the electric scooter front, Chetak had some supply disruptions in the months of July and August but came back strongly in September. By October, it had recaptured its leadership position. The company also underwent complete re-homologation of all of its electric motors, replacing them with alternate magnet materials to minimize reliance on certain rare earth sources.
In terms of finances, Bajaj Auto generated around Rs 4,500 crore in free cash flow in the first half of FY26 — which is almost equal to its profit. It also had a healthy balance sheet with more than Rs 14,000 crore in surplus funds even after paying dividends and investing in subsidiaries.
Overall, this quarter shows Bajaj Auto’s flexibility and strength even in the face of supply chain issues. With steady demand at home and abroad, the company is still moving confidently towards sustained growth in the coming quarters.