Bajaj Auto: Business Overview and Financial Analysis

Bajaj Auto Limited is a leading Indian automobile manufacturer and the flagship automotive company of the Bajaj Group. The company manufactures and sells motorcycles, commercial vehicles and electric two-wheelers across domestic and international markets. With a strong presence in exports, premium motorcycles, electric mobility and vehicle financing, Bajaj Auto has built a diversified automotive business supported by brands and partnerships such as Pulsar, Chetak, KTM and Triumph.

Bajaj Auto Product and Business Segment Revenue Mix (FY2025-26)

The company’s revenue mix remains primarily driven by its core automotive business, while vehicle financing and other income provide additional diversification.

• Automotive Segment – 93.1% of consolidated revenue
• Financing Business – 5.4% of consolidated revenue
• Investment and Other Income – 1.5% of consolidated revenue
• KTM-Triumph Premium Segment Revenue Growth – 40.0% YoY
• Premium Segment Annual Global Revenue – Rs 5,000 crore

The automotive segment remains the primary contributor to Bajaj Auto’s revenue. The premium motorcycle portfolio, supported by KTM and Triumph, recorded strong growth and served more than 2.25 lakh riders during the financial year.

Bajaj Auto Standalone Full-Year Financial Performance (FY2025-26)

The standalone financial results reflect strong revenue growth, margin expansion and cash generation, supported by higher volumes and a favourable product mix.

• Net Revenue from Operations – Rs 58,732 crore (+17.0% YoY)
• Operating Profit (EBITDA) – Rs 12,019 crore (+19.0% YoY)
• EBITDA Margin – 20.5%, up 30 basis points
• Net Profit After Tax (PAT) – Rs 9,825 crore (+21.0% YoY)
• Diluted Earnings Per Share (EPS) – Rs 351.5
• Free Cash Flow (FCF) – More than Rs 8,000 crore (+30.0% YoY)

Bajaj Auto’s profit growth outpaced revenue expansion during the year, supported by operating leverage, product mix improvements and favourable currency movements. Strong free cash flow generation also increased the company’s surplus treasury funds to more than Rs 18,000 crore at the end of the financial year.

Bajaj Auto Consolidated Full-Year Financial Performance (FY2025-26)

The consolidated financial performance reflects growth across the automotive business and the impact of international operations and subsidiaries.

• Consolidated Gross Turnover – Rs 62,905 crore (+23.0% YoY)
• Consolidated Net Profit After Tax (PAT) – Rs 10,744 crore (+47.0% YoY)
• Automotive Segment Revenue – Rs 60,530.43 crore
• Group Capital Investments – More than Rs 2,300 crore
• Standalone Capital Expenditure – Rs 500 crore

Consolidated profit growth was supported by the financial consolidation of KTM AG and its international businesses. The company also continued to invest in subsidiaries and overseas operations to strengthen manufacturing capabilities and support future expansion.

Bajaj Auto Domestic and Export Sales Volume Mix (FY2025-26)

The company recorded its highest-ever annual vehicle volumes, supported by strong commercial vehicle demand and recovery across export markets.

• Total Vehicle Sales – 51.17 lakh units (+10.0% YoY)
• Two-Wheeler Sales – 43,16,850 units (+8.0% YoY)
• Commercial Vehicle Sales – 8,00,817 units (+20.0% YoY)
• Domestic Two-Wheeler Sales – 23,49,040 units (+2.0% YoY)
• Domestic Commercial Vehicle Sales – 5,18,444 units (+8.0% YoY)
• Export Volumes – 22,50,183 units (+21.0% YoY)

Annual vehicle sales surpassed the company’s previous peak recorded in FY2018-19. Two-wheelers remained the largest contributor to overall volumes, while higher commercial vehicle sales and export growth supported the overall performance of Bajaj Auto.

Bajaj Auto Latest Quarterly Financial Performance (Q4 FY2025-26)

The March quarter results reflect strong revenue and profit growth, supported by higher vehicle volumes, favourable currency movements and an improved product mix.

• Standalone Revenue – Rs 16,006 crore (+32.0% YoY)
• Standalone EBITDA – Rs 3,323 crore (+36.0% YoY)
• Standalone EBITDA Margin – 20.8%, up 60 basis points
• Standalone Net Profit (PAT) – Rs 2,746 crore (+34.0% YoY)
• Basic Earnings Per Share (EPS) – Rs 98.3
• Consolidated Vehicle Sales – 13,71,058 units (+24.0% YoY)

Bajaj Auto maintained an EBITDA margin above 20% despite commodity cost pressures and higher marketing expenditure. The quarterly performance benefited from improved sales volumes, a favourable product mix and currency realisations.

Bajaj Auto Electric Vehicle Performance and Market Position (FY2025-26)

Electric mobility remains an important growth area for the company, led by the continued expansion of the Chetak electric scooter portfolio.

• Chetak Electric Scooter Retail Sales – 2,98,436 units (+25.0% YoY)
• Chetak Retail Milestone – Crossed 10 lakh units
• Electric Vehicle Segment Revenue – More than Rs 4,000 crore
• Domestic Electric Two-Wheeler Market Share – 23.0%
• Cumulative Chetak Dispatches – 7,27,779 units

The Chetak portfolio strengthened Bajaj Auto’s position in the domestic electric two-wheeler market during the year. New product variants, including the Chetak C25, along with production and distribution expansion, supported higher sales volumes and improved operating scale.

Bajaj Auto Credit Business Performance (FY2025-26)

Bajaj Auto Credit Limited supports the company’s vehicle ecosystem by providing financing solutions across its domestic distribution network.

• Assets Under Management (AUM) – Rs 18,835 crore, nearly doubling YoY
• Loan Disbursements – Rs 14,885 crore
• Annual Income – Rs 3,248 crore, more than three times the previous year
• Net Profit (PAT) – Rs 665 crore, more than eleven times the previous year
• Net NPA Ratio – 1.0%
• Capital Adequacy Ratio – 19.5%
• Total Customers – 11.4 lakh accounts

The financing business recorded rapid growth in assets, income and profitability during FY2025-26. Despite the expansion in lending operations, asset quality remained stable, supported by credit assessment and collection systems across urban and semi-urban markets.

Bajaj Auto Corporate Actions and Shareholder Payouts (FY2025-26)

Strong cash generation enabled the company to announce significant capital returns through dividends and a proposed share buyback.

• Dividend Distribution – Rs 4,192 crore
• Proposed Share Buyback Size – Up to Rs 5,633 crore
• Proposed Buyback Price – Rs 12,000 per equity share
• Recommended Final Dividend – Rs 150 per share of face value Rs 10
• Standalone Earnings Payout Ratio – 100.0%
• Maximum Shares Proposed for Buyback – Up to 46.94 lakh equity shares

The board approved a capital allocation plan that proposes returning the equivalent of the company’s full-year standalone profit through dividends and the share buyback. Strong operating cash flows and surplus funds provide Bajaj Auto with the financial flexibility to support business expansion alongside shareholder distributions.

Bajaj Auto Management Commentary and Outlook (Q4 FY2025-26)

Management remains focused on maintaining profitability, expanding electric mobility, strengthening exports and scaling the vehicle financing business.

• Capital Allocation – Management indicated that strong operating cash flows provide sufficient resources to fund future growth requirements.

• Export Markets – Latin American markets maintained strong performance, while demand across African markets returned to double-digit growth.

• Commercial Vehicle Exports – Three-wheeler export volumes increased 50.0% YoY.

• Operating Margins – The company aims to maintain standalone EBITDA margins around 20.0% through cost-efficiency measures and product mix improvements.

• Electric Vehicle Expansion – Bajaj Auto plans to increase Chetak sales and distribution across Tier-2 and Tier-3 markets.

• EV Subsidy Changes – Product and pricing strategies are being adjusted to manage changes in government incentive programmes.

• Financing Business – Bajaj Auto Credit plans to expand loan disbursements while maintaining net NPAs at around 1.0% or lower.

• Supply Chain Strategy – Component sourcing and inventory management remain focused on limiting disruptions from global logistics challenges.

The forward strategy focuses on strengthening Bajaj Auto’s position across motorcycles, commercial vehicles and electric mobility while expanding the financing ecosystem. Premium motorcycles, export recovery, Chetak expansion and cost management remain important factors for the company’s long-term business performance.

Citations

[1.1.1] Univest Institutional Research Note: Bajaj Auto Q4 FY26 Performance Analysis and Buyback Review (May 2026).
[1.1.2] Groww Corporate Blog: Bajaj Auto Q4 FY26 Financial Outcomes, Balance Sheet Status, and Dividend Summary (May 2026).
[1.1.3] Upstox Earnings Live Updates: Bajaj Auto Net Profit Surges 34% YoY and Board Distribution Resolutions (May 2026).
[1.2.1] Bajaj Auto Limited Press Release: Detailed Operational and Financial Metrics for the Full Year and Fourth Quarter Ended March 31, 2026.
[1.3.1] Bajaj Auto Limited Corporate Outcome Disclosures and Segment Reports Submitted to BSE Limited (May 2026).
[1.3.2] ElectroIQ Industry Analysis: Bajaj Auto Cumulative EV Statistics, Market Placements, and Volume Mix Breakdowns (2026).
[1.3.3] Tijori Finance Enterprise Database: Bajaj Auto Limited Custom Financial Statements, Segment Turnover, and Ratio Overview (June 2026).

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Disclaimer
The information presented above on Bajaj Auto Limited has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on the Finology Ticker Bajaj Auto Limited page before making any investment decision.