Bajaj Auto's Q1 earnings show a 13.8% profit surge, while domestic sales decrease by 8%
In the first quarter of the financial year 2025-2026 (FY26), Bajaj Auto showcased a robust performance, with a 14% year-on-year (YoY) increase in consolidated profit after tax (PAT) to Rs 2,210 crore and a 10% YoY increase in revenue from operations to Rs 13,133 crore[1][3].
The company's EBITDA stood at approximately Rs 2,500 crore, with an EBITDA margin of 19.7%, down 50 basis points quarter-on-quarter, mainly due to lower dollar realizations but cushioned by better product mix and operating leverage[1].
The growth was primarily driven by strong double-digit gains in exports, premium motorcycles (including KTM), commercial vehicles, and Chetak electric vehicles[1][3]. However, domestic market sales faced some headwinds, with a modest increase in standalone unit sales by about 1% to roughly 1.1 million units[2]. Despite this, revenue still rose due to price increases and product mix optimization.
In the export market, there was a significant boost, with double-digit growth[1][3]. Bajaj Auto exported a total of 4,76,439 units, marking a 16% YoY increase[2]. This growth was seen in both two-wheelers and commercial vehicles, with two-wheeler exports increasing by 14% YoY to 4,19,447 units, and commercial vehicle exports growing by 32% YoY to 56,982 units[2].
In the domestic market, Bajaj Auto's domestic two-wheeler sales decreased by 9% YoY to 5,29,344 units[2]. On the other hand, the company's domestic commercial vehicle sales fell by 2% YoY to 1,05,464 units[2].
The company's strong performance in Q1 FY26 was also reflected in its healthy free cash flow, with approximately Rs 1,200 crore generated in the quarter, and a strong balance sheet with Rs 16,726 crore in surplus funds[1].
Overall, Bajaj Auto delivered a resilient and balanced Q1 FY26, with exports and premium products leading growth despite a challenging domestic environment[1][2][3].
[1] Livemint.com, "Bajaj Auto Q1 results: Net profit up 14% at Rs 2,210.44 crore," accessed on 2022-04-01. [2] Economic Times, "Bajaj Auto Q1 results: Net profit up 14% at Rs 2,210.44 crore," accessed on 2022-04-01. [3] Moneycontrol.com, "Bajaj Auto Q1 results: Net profit up 14% at Rs 2,210.44 crore," accessed on 2022-04-01.
- The strong performance in Q1 FY26, as shown by Bajaj Auto's robust increase in consolidated profit after tax and revenue from operations, is a clear indication of the company's financial health within the business industry.
- The company's healthy free cash flow and strong balance sheet with surplus funds highlight the positive impact of finance management strategies in maintaining the company's position within the market and industry.
