Bajaj Auto Limited delivered a stellar performance in the second quarter of FY26 (ended 30 September 2025), setting new benchmarks across key financial and operational metrics despite headwinds in its electric vehicle (EV) segment due to rare earth magnet shortages. The company reported a 14% year-over-year (YoY) increase in standalone revenue from operations to ₹14,922 crore, up from ₹13,127 crore in Q2 FY25, and a 19% sequential (QoQ) jump from ₹12,584 crore in Q1 FY26.
Profitability also reached historic highs. Net profit after tax (PAT) surged 24% YoY to ₹2,480 crore versus ₹2,005 crore in the same period last year (or 12% higher than the normalized PAT of ₹2,216 crore). On a QoQ basis, PAT rose 18% from ₹2,096 crore in the previous quarter. EBITDA crossed the ₹3,000 crore mark for the first time, reaching ₹3,052 crore—a 15% YoY and 23% QoQ improvement—while EBITDA margins expanded to 20.5%, up 70 basis points sequentially.
Resilient Business Mix Offsets EV Disruption
Although supply constraints limited EV output—especially for the Chetak scooter, which operated at just 50% of planned production in July–August—the company’s diversified portfolio absorbed the shock. Strong performances in premium motorcycles, commercial vehicles (CVs), and exports more than compensated.
Domestically, Bajaj Auto recorded record revenue, driven by double-digit growth in CVs and robust demand for premium two-wheelers. The Pulsar brand maintained stable retail market share, while the KTM+Triumph alliance delivered its best-ever quarter, selling over 60,000 bikes (domestic retail + exports), a ~70% YoY increase. The recent launch of the KTM Duke 160 and Triumph Thruxton 400 further sharpened its premium proposition.
In the CV segment, total revenue grew double digits YoY, with electric CVs up 1.5x YoY despite supply limitations. The company also entered the large e-rickshaw market with the launch of ‘Riki’ in four cities, signaling a strategic expansion in urban mobility.
Exports Accelerate Across Regions
Exports emerged as a major growth engine, with revenue climbing 35% YoY. Two-wheeler exports rose 19% YoY to 472,411 units, while CV exports surged 67% YoY to 80,916 units. Africa and Asia led the momentum with strong double-digit growth, and LATAM continued its upward trajectory. Encouraging demand for three-wheelers globally has prompted Bajaj to initiate capacity expansion to meet rising orders.
EV Recovery and Supply Chain Adaptation
Despite the magnet shortage, Bajaj Auto became the first Indian OEM to fully re-homologate its entire motor portfolio using alternate low-rare-earth (LRE) magnets. Leveraging in-house R&D, the company redesigned Chetak and 3W traction motors without compromising performance. By September, these measures began yielding results—Chetak reclaimed market leadership in October, underscoring the brand’s resilience.
Strong Cash Flow and Balance Sheet
Bajaj Auto generated ₹4,500 crore in free cash flow in H1 FY26, nearly matching its PAT—a testament to disciplined working capital management. The balance sheet remains robust, with surplus funds of ₹14,244 crore after distributing ₹5,864 crore as dividends and investing over ₹2,000 crore into subsidiaries, including partial funding for the KTM Austria transaction and scaling up Bajaj Auto Credit.
Outlook
“The quarter demonstrates the strength of our diversified, agile, and innovation-led model,” said Dinesh Thapar, CFO of Bajaj Auto. “Even amid supply-side turbulence in one of our fastest-growing segments, we delivered record top- and bottom-line performance—reinforcing our commitment to sustainable, quality growth.”
With festive demand, pricing tailwinds, a favorable currency environment, and restored EV availability, Bajaj Auto enters the second half of FY26 on a confident note, well-positioned to capitalize on both domestic recovery and global opportunities.