Pune-based two-wheeler manufacturer Bajaj Auto reported its best-ever quarterly performance in the second quarter of FY26, achieving record revenue and profit after tax. The company’s consolidated revenue rose 18.8 percent year-on-year to ₹15,734.7 crore, while profit after tax jumped 53.2 percent to ₹2,122 crore. Despite the strong financial results, Bajaj Auto’s stock remained flat on the BSE on Friday.
Strong Performance Across Segments Boosts Profitability
The company’s earnings before interest, taxes, depreciation, and amortisation crossed the ₹3,000 crore mark for the first time, with an improved margin of 20.5 percent. This growth was supported by a richer product mix, record spares sales, and steady export performance. Favourable currency movements and better operating efficiency helped offset rising costs, leading to a margin expansion of more than 70 basis points quarter-on-quarter.
Executive Director Rakesh Sharma shared that September was a volatile month for sales due to the GST 2.0 announcement, which initially slowed demand but picked up after September 22. He added that supply challenges, especially for electric three-wheelers and the Chetak scooter, impacted production during most of the quarter because of limited rare-earth magnet availability. These issues were largely resolved by the end of September.
Electric and Premium Segments Drive Domestic Growth
Bajaj Auto’s domestic business posted record revenue, with strong performance from its premium motorcycle range. Around 20 percent of domestic revenue now comes from the electric vehicle segment, which has reached double-digit profitability. The company noted a structural improvement in demand, particularly for high-end variants across engine segments from 100cc to 250cc. Post-GST cuts have further strengthened sales of top-tier models, enhancing both volume and value per transaction.
Exports Surge Led by African Markets and Electric Vehicles
Exports revenue increased by 35 percent year-on-year, driven by double-digit growth in African markets. The commercial vehicle segment benefited from robust electric vehicle sales, which grew 1.5 times compared to the previous year. Bajaj Auto also entered the large e-rickshaw market with the launch of ‘Riki,’ initially rolled out in four cities. Despite earlier supply disruptions, the Chetak electric scooter regained market leadership in October after the company secured an alternative supply of magnets.
KTM and Triumph See Record Quarter as Partnership Strengthens
KTM and Triumph motorcycles achieved their best-ever quarterly performance, with combined domestic and export sales surpassing 60,000 units, up 70 percent year-on-year. Rakesh Sharma revealed that Bajaj has applied for majority control of KTM, with eight out of nine regulatory approvals in Europe already secured. The final approval is expected by mid-November, paving the way for active turnaround efforts. Bajaj exported nearly 20,000 KTM units in Q2, and KTM now accounts for about 5–6 percent of Bajaj’s total exports—up from just 1 percent earlier.
Sharma also noted that Bajaj is focusing on cost management within KTM’s European operations while ensuring high product quality. The company is considering manufacturing more KTM models in India to enhance efficiency and competitiveness.
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