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What is the story about?
Bajaj Auto Ltd. reported a strong set of earnings for the first quarter of FY27, with double-digit growth in revenue, profit and operating performance.
For the June quarter, net profit surged 42% year-on-year to ₹2,983 crore, compared with ₹2,096 crore in the corresponding period last year.
Revenue from operations rose 37% to ₹17,244 crore from ₹12,585 crore, aided by healthy domestic and export volumes.
Operating performance remained robust, with EBITDA increasing 45% year-on-year to ₹3,596 crore from ₹2,482 crore. The EBITDA margin expanded to 20.9%, compared with 19.7% a year ago, supported by a favourable product mix, export growth and rupee depreciation.
During the quarter, volumes grew 29% year-on-year and 5% sequentially, while average selling prices (ASP) increased 11% year-on-year and 8% quarter-on-quarter.
The company said its exports delivered their strongest-ever quarterly performance, while the domestic motorcycle business recorded double-digit revenue growth. Revenue from operations also touched an all-time high, driven by record quarterly volumes and improved realisations.
Looking ahead, Bajaj Auto said upcoming upgrades across its 125cc-160cc motorcycle portfolio are expected to strengthen its competitive position in the domestic market.
What should investors do?
Gurmeet Chadha of Complete Circle said Bajaj Auto's Q1 numbers were better than estimates, driven by healthy volume growth and margin expansion despite supply chain disruptions and volatile input costs.
He said the stock offers valuation comfort after consolidating and expects further clarity on EV and export performance during the management call. Chadha also said that demand across the auto sector remains robust, supported by strong dispatches, VAHAN registrations and continued capex by auto ancillary companies.
Ashwin Patil of LKP Securities described the quarterly performance as robust, citing strong domestic and export volumes. However, he said investors should monitor margins in the coming quarters, as the June quarter benefited from rupee depreciation due to Bajaj Auto's export exposure.
He added that the key monitorables going forward would be the impact of the monsoon on demand and the sustainability of volume growth.
Following the earnings announcement, Bajaj Auto shares were trading about 1% lower at ₹10,417. Despite Tuesday's decline, the stock has gained 9% so far this year.
For the June quarter, net profit surged 42% year-on-year to ₹2,983 crore, compared with ₹2,096 crore in the corresponding period last year.
Revenue from operations rose 37% to ₹17,244 crore from ₹12,585 crore, aided by healthy domestic and export volumes.
Operating performance remained robust, with EBITDA increasing 45% year-on-year to ₹3,596 crore from ₹2,482 crore. The EBITDA margin expanded to 20.9%, compared with 19.7% a year ago, supported by a favourable product mix, export growth and rupee depreciation.
During the quarter, volumes grew 29% year-on-year and 5% sequentially, while average selling prices (ASP) increased 11% year-on-year and 8% quarter-on-quarter.
The company said its exports delivered their strongest-ever quarterly performance, while the domestic motorcycle business recorded double-digit revenue growth. Revenue from operations also touched an all-time high, driven by record quarterly volumes and improved realisations.
Looking ahead, Bajaj Auto said upcoming upgrades across its 125cc-160cc motorcycle portfolio are expected to strengthen its competitive position in the domestic market.
What should investors do?
Gurmeet Chadha of Complete Circle said Bajaj Auto's Q1 numbers were better than estimates, driven by healthy volume growth and margin expansion despite supply chain disruptions and volatile input costs.
He said the stock offers valuation comfort after consolidating and expects further clarity on EV and export performance during the management call. Chadha also said that demand across the auto sector remains robust, supported by strong dispatches, VAHAN registrations and continued capex by auto ancillary companies.
Ashwin Patil of LKP Securities described the quarterly performance as robust, citing strong domestic and export volumes. However, he said investors should monitor margins in the coming quarters, as the June quarter benefited from rupee depreciation due to Bajaj Auto's export exposure.
He added that the key monitorables going forward would be the impact of the monsoon on demand and the sustainability of volume growth.
Following the earnings announcement, Bajaj Auto shares were trading about 1% lower at ₹10,417. Despite Tuesday's decline, the stock has gained 9% so far this year.
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