Bajaj Auto Q2 Results | Profit surges 24% on strong domestic, export and EV sales; misses estimates

Pune-based automaker Bajaj Auto Ltd on Friday (November 7) reported a net profit of ₹2,479 crore for the second quarter, marginally below the CNBC-TV18 poll of ₹2,483 crore. The company’s revenue for Q2 stood at ₹14,922 crore, higher than the poll estimate of ₹14,777 crore.

Earnings before interest, tax, depreciation, and amortisation reached ₹3,051.7 crore, compared with the poll estimate of ₹3,012 crore, while the EBITDA margin remained steady at 20.4%, in line with market expectations.

On a year-on-year basis, Bajaj Auto’s net profit increased 23.6% from ₹2,005 crore, supported by a 13.7% rise in revenue to ₹14,922 crore from ₹13,128 crore. EBITDA grew 15% year-on-year to ₹3,051.7 crore, with the margin improving to 20.4% from 20.2% in the same quarter last year.

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Margin expansion of 70 basis points quarter-on-quarter was supported by favourable currency realisations and operating leverage, which more than offset cost inflation, increased marketing spends, and research and development investments aimed at future-proofing the portfolio.

The domestic business achieved record revenue, led by growth in premium motorcycles and double-digit growth in commercial vehicles. The festive season and changes in Goods and Services Tax rates provided additional support to the seasonal upswing.

Electric vehicles continued scaling up despite supply limitations, contributing more than ₹10,000 crore in revenue over the past two years. Exports recorded a 35% year-on-year increase in revenue, with strong growth across Africa, Asia, and Latin America. KTM and Triumph exports contributed significantly, with over 60,000 bikes sold, up approximately 70% year-on-year, driven by new launches including the Duke 160 and the Thruxton 400.

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Domestic motorcycle sales grew sequentially, particularly in the sport segment, while the Pulsar brand maintained market share with a strong marketing campaign. Commercial vehicles also reached new heights in volumes and revenue, with electric vehicle sales growing 1.5 times year-on-year despite supply constraints, and the company entered the large e-rickshaw market with the launch of the ‘Riki’ in four cities.

Bajaj Auto continued its focus on cash generation, recording approximately ₹4,500 crore in free cash flow in the first half of fiscal year 2026, nearly converting 100% of profit after tax into cash.

The balance sheet remains strong, with surplus funds of around ₹14,244 crore after distributing approximately ₹5,864 crore to shareholders as dividends and investing over ₹2,000 crore into subsidiaries, including funding for the KTM Austria transaction and expansion of Bajaj Auto Credit’s business.

The company’s robust performance across businesses offset disruptions from rare earth magnet constraints affecting the fastest-growing part of its portfolio—electric vehicles—demonstrating Bajaj Auto’s resilient and adaptable business model.

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Shares of Bajaj Auto Ltd ended at ₹8,726.15, up by ₹9.85, or 0.11%, on the BSE.