Synopsis: A leading two- and three-wheeler manufacturer delivered its strongest quarter yet, with consolidated revenue and profit both scaling fresh highs even as commodity inflation, supply disruptions, and a cyberattack tested operations through the quarter. Electric vehicles and exports emerged as the standout growth engines.
Not every “record quarter” deserves closer scrutiny, but this one certainly does., This one does due to significant challenges faced, including raw material hyperinflation, a ransomware attack, and logistics disruptions from a West Asian conflict. Despite these hurdles, the company achieved its strongest quarter across key financial and operational metrics, highlighting its resilience and growth.
With a market capitalization of Rs. 299,784 crore, the shares of Bajaj Auto Limited were trading at Rs.10,997 per share; the stock jumped 6 percent after the announcement, and they are trading at a P/E of approximately 25x.
A Record Quarter, With a Caveat
On a consolidated basis, revenue came in at ₹21,689 crore, up 65% YoY from ₹13,133.35 crore, while total income including other income rose to ₹22,376.69 crore. Consolidated profit before tax climbed to ₹4,423.41 crore, up nearly 49% YoY from ₹2,960.65 crore, and profit after tax rose to ₹3,225.63 crore, up roughly 46% YoY. Diluted EPS on a consolidated basis moved to ₹115.3 from ₹79.1 a year earlier.
Segment-wise, the automotive business remained the core driver at ₹20,799.55 crore in revenue, with the financing arm (Bajaj Auto Credit) contributing ₹1,111.95 crore and the investments segment adding ₹465.19 crore.
Domestic revenue grew 26% YoY, led by both 2W and 3W ICE stayed strong while electric revenue (now ~30% of domestic) nearly doubled YoY despite tight capacity. Exports had their biggest-ever quarter, crossing 700,000 units for the first time, with strong LATAM and Africa performances (Nigeria up 3x) even as MENA logistics weighed. Domestic motorcycles saw double-digit growth, led by the sports segment (~50% growth) as Pulsar upgrades drove share gains.
KTM and Triumph sustained their accelerated growth momentum, with domestic volumes growing by more than 50% YoY. The performance was backed by the new 350cc range and Triumph’s Tracker 400, supported by a KTM-Triumph network now spanning over 90 towns. Commercial vehicles grew 25% YoY, led by e3Ws up ~80%, now nearly two-thirds the size of the ICE 3W business. Chetak posted its best-ever quarter on volumes, revenue, and profitability, with demand still outpacing capacity.
Electric Vehicles Turn a Real Profit Driver
The Chetak electric scooter had its best-ever quarter on volume, revenue, and profit, growing close to 80% YoY, with demand continuing to outpace supply, Current production capacity is around 50,000 units a month, with management indicating it can be increased to roughly 60,000 units through productivity and vendor initiatives while larger capacity expansion is underway.
Electric two- and three-wheelers together now account for roughly 30% of domestic revenue, and management confirmed the EV portfolio has moved into double-digit EBITDA margin territory, with Chetak specifically flipping from EBITDA-neutral to EBITDA-positive. That’s a meaningful shift for a segment that’s historically been a drag on margins across the industry.
Exports and Premium Bikes Add Fuel
Exports hit a record 7.32 lakh units for the quarter, crossing the 700,000 mark for the first time, and management is targeting a run-rate beyond 250,000 units a month starting in Q2, up from around 200,000 just a couple of quarters ago. Growth was broad-based across Latin America and Africa, with Mexico and Nigeria singled out as standout markets, though the MENA region remained a soft spot given the regional conflict.
The premium motorcycle business had its own strong quarter, with KTM and Triumph together posting domestic volume growth of over 50% YoY. The company is lining up an aggressive product pipeline over the next six weeks, including a new 150cc Pulsar, ten facelifts across the 160-400cc range, and a new 125cc Pulsar, alongside two entirely new brands planned for the 125cc segment later in FY27.
Building Capacity for What’s Next
With demand outpacing supply across EVs, premium bikes, and three-wheelers, capacity has become the real constraint. Management plans to expand annual manufacturing capacity by around 25%, from 7 million to roughly 9 million units, with the added capacity aimed squarely at electric two- and three-wheelers, high-end motorcycles, and three-wheelers. That expansion, alongside continued investment in the KTM-Triumph retail network and India’s three-wheeler and e-rickshaw segment, forms the backbone of the company’s FY27 growth plan.
Conclusion
A quarter this strong, delivered against a backdrop of cost shocks and operational disruption, says something about how well the underlying business is running right now. The real test going forward is whether electric vehicles and exports can keep compounding at this pace once capacity catches up with demand, and whether margins hold as input costs stay elevated into Q2. For now, the direction looks clear: this is a company betting its next phase of growth on EVs, premium bikes, and a broader export footprint, and backing that bet with real capital.
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