Bajaj Auto Q1 results: Net profit rises 5% to ₹2,096 crore; EBITDA jumps 3%, margin contracts by 50 bps

Bajaj Auto, the country's second largest two-wheeler maker, on Wednesday, August 6, reported a standalone net profit of ₹2,096 crore in the first quarter of current financial year (Q1FY26), marking an increase of 5% from ₹1,988 crore in the same period last year.

The Pune-based company's revenue from operations advanced 5.5% in Q1 to ₹12,584 crore from ₹11,928 crore in the year-ago period.

Bajaj Auto reported muted operational performance as its operating income also known as earnings before interest, taxes, depreciation and amortisation (EBITDA) advanced 3% to ₹2,482 crore but its EBITDA margin contracted by 50 basis points (bps) 19.72% as against 20.25% in the corresponding period last year.

Bajaj Auto reported a marginal 1% rise in total sales volume to 11,11,237 units in the April–June quarter, compared to 11,02,056 units in the same period last year. While domestic volumes declined 8% year-on-year to 6,34,808 units, strong overseas demand helped offset the weakness, with exports rising sharply by 16% to 4,76,429 units.

The company highlighted that electric vehicles (EVs) contributed over 20% to domestic revenues—up from the low teens a year ago. Bajaj Auto noted that its EV brand Chetak recorded more than a two-fold jump in retail volumes, accounting for nearly half of the industry's incremental volume in the segment.

“EV contribution crossed 20% of domestic revenues compared to early teens last year,” the company said in a press release. However, Bajaj Auto flagged initial signs of supply chain stress later in the quarter due to unavailability of rare earth magnets, a critical component for electric vehicles.

Sales of premium motorcycles also gained momentum, with KTM and Triumph models billing over 25,000 units in the domestic market in Q1. Bajaj launched two new models during the quarter—the KTM Enduro R, targeted at dual-purpose riders, and the Triumph Scrambler 400XC, designed for adventure enthusiasts with a rugged build and advanced specifications.

Export revenues hit a record high in the quarter, driven by consistent double-digit growth in six out of the last seven quarters. The company cited broad-based demand recovery across Africa, Latin America and Asia. However, the Middle East and North Africa (MENA) region remained subdued due to ongoing geopolitical tensions.

The revival of exports to KTM, following a completed restructuring, also boosted performance. Bajaj Auto's export growth trajectory has been among the strongest in the industry, riding on both volume and value expansion, the Pune-based company added.

Following the earnings announcement, Bajaj Auto shares traded 0.2% higher at ₹8,244, outperforming the NIFTY50 index which was down 0.2%.