Bajaj Auto shares gain as firm resumes electric scooter supply across dealerships

In recent weeks, temporary supply constraints linked to international component availability had moderated deliveries. The sustained and growing demand for Chetak added further pressure on supply, Bajaj Auto said in a statement.

Production and shipments recommenced on August 20, marking a faster-than-anticipated return to full capacity, it added.

Further, Bajaj Auto said it has "secured sufficient supply of rare earth magnets and other key materials to ensure availability during the upcoming festive season".

"Demand for Chetak remains robust, supplies have normalised, and deliveries against bookings have commenced. We are scaling up production to meet rising demand while staying true to our standards of quality and customer delight," Bajaj Auto President – Urbanite Business Unit, Eric Vas, said.

China's restriction on exports of rare earth magnets—a key component of electric vehicles—in the wake of US President Donald Trump's tariff war had hit global automakers, including those in India.

Following this, shares of Bajaj Auto were trading at ₹8,707 apiece on the National Stock Exchange, gaining 0.26%.

The country's second-largest two-wheeler maker had reported a standalone net profit of ₹2,096 crore in the first quarter of the 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) to 19.72% as against 20.25% in the corresponding period last year.

Bajaj Auto reported a marginal 1% rise in total sales volume to 1,111,237 units in the April–June quarter, compared to 1,102,056 units in the same period last year. While domestic volumes declined 8% year-on-year to 634,808 units, strong overseas demand helped offset the weakness, with exports rising sharply by 16% to 476,429 units.

Bajaj Auto had flagged initial signs of supply chain stress later in the quarter due to the unavailability of rare earth magnets, a critical component for electric vehicles.