Bajaj Auto

Bajaj Auto reported a defining FY26 with record performances, achieving over ₹58,000 crores in revenue, EBITDA crossing ₹12,000 crores for the first time at a 20.5% margin, and PAT exceeding ₹9,800 crores. Q4 FY26 was a standout quarter, with revenues surpassing ₹16,000 crores, EBITDA at ₹3,300 crores, and margins at 20.8%. Total volumes in Q4 reached a new high of 13.7 lakh units, growing 24% year-on-year, contributing to a 32% increase in revenues and 36% growth in PAT for the quarter.

The exports business unit had a strong quarter, crossing the 6,00,000 units mark for the second consecutive quarter and clocking 25% growth year-on-year, resulting in the highest ever quarterly revenue from exports. For FY26, the unit recorded its second-highest ever volume performance and highest ever revenue at USD2.2 billion. Latin America continued its strong growth for 11 consecutive quarters, while Nigeria showed stability in Q4 with volumes crossing 1 lakh units, matching FY25 performance. The company aims to increase exports to 2,20,000 units per month this quarter, up from 2,00,000 levels.

The domestic motorcycle industry experienced a split trajectory in FY26, with a muted first half followed by a strong recovery in the second half, leading to 11% growth for the full year. Growth was primarily driven by the 125cc plus segment, which grew faster than the 100cc segment. The refreshed Pulsar portfolio, with 10 new variants and upgrades introduced between October and March, now contributes to 50% of sales. The Probiking segment (KTM and Triumph) also delivered a record domestic performance in Q4, with combined volumes of nearly 43,000 units, registering a 43% year-on-year growth. Triumph crossed the 1 lakh unit milestone within 2.5 years of inception.

The electric scooter business, Chetak, crossed the 1 lakh retail mark for the first time in a single quarter in Q4, with March '26 retails touching over 50,000 units. Chetak's market share increased to 23%, a gain of 170 basis points sequentially. For FY26, Chetak crossed the 5-lakh unit mark and generated ₹4,000 crores in revenue. The electric 2-wheeler and 3-wheeler business is now the largest in the auto industry, contributing over 20% of domestic revenues and achieving double-digit EBITDA margins for the first time. The company launched WEGO 9018, the largest electric 3-wheeler, in Q4, featuring a 17.7kW battery and a 296km range.

FY26 was a landmark year for the commercial vehicle business, which crossed the 5-lakh unit mark for the first time. In Q4, the business delivered its highest ever quarterly volumes, growing 28% year-on-year, with the ICE franchise remaining strong and the CNG segment holding close to 90% market share. The electric 3-wheeler segment maintained its number one position in Q4 and April. The spares business also performed well, with sales of over ₹1,700 crores, registering a 16% growth and delivering a record EBITDA margin.

Looking into Q1 FY27, the commodity environment is expected to be 'sharply inflationary, almost hyper,' with material availability issues for aluminium alloys and polymers. Key commodities like steel, copper, aluminium, and noble metals have seen increases of 15% to 45%. This is projected to result in a material cost inflation impact of approximately 3.5% to 4% of revenue. The company has taken judicious pricing actions to offset about 40% of this impact and is implementing cost optimization measures. The rupee's depreciation, reaching INR90.6 to the dollar in Q4, provided a favorable currency tailwind, helping to manage cost inflation.

Bajaj Auto closed FY26 with surplus funds exceeding ₹18,000 crores. Capex for FY26 was approximately ₹500 crores, split equally between ICE and EV investments. The Board approved a 100% payout of FY26 profits, totaling ₹9,825 crores, to shareholders. This includes a final dividend of ₹150 per share, aggregating to ₹4,192 crores, and a buyback of ₹5,633 crores via a tender route at ₹12,000 per share. The buyback process will commence shortly and is expected to culminate by the end of July, following shareholder and SEBI approvals.

Bajaj Auto, through its subsidiary BAIH BV, completed the acquisition of a 100% stake in Bajaj Auto Holdings AG (which held 75% of Bajaj Mobility AG, the listed entity for KTM) on November 18, 2025. This transition from a minority to a controlling stake led to the consolidation of BMAG and KTM AG results. For Q4 FY26, the net share of profit from the associate was ₹561 crores, including a gain of ₹953 crores from re-measurement of investments. The focus for KTM in 2026 is on a broad-based turnaround plan, with results expected to show in the latter part of the year.