Bajaj Auto Q3 Results: Profit Jumps 19% to ₹2,503 Crore

Introduction

Bajaj Auto Ltd. announced a robust financial performance for the third quarter of the fiscal year 2026, ending December 31, 2025. The two-wheeler major reported a 19% year-on-year (YoY) increase in its standalone net profit, which stood at ₹2,502.81 crore. This growth was underpinned by the company achieving its highest-ever quarterly revenue, driven by record sales volumes during the festive season, a richer product mix, and a significant recovery in export markets.

Detailed Financial Performance

For the October-December quarter, Bajaj Auto's standalone net profit climbed to ₹2,502.81 crore from ₹2,108.73 crore in the corresponding period of the previous year. The reported profit includes a one-time exceptional cost of ₹61.32 crore, accounted for due to the impact of the new labour code. Revenue from operations also saw a substantial 19% YoY growth, reaching ₹15,220.33 crore. This marks the first time the company's quarterly revenue has surpassed the ₹15,000 crore milestone, compared to ₹12,806.85 crore in Q3 FY25. The company's total expenses for the quarter rose by 18% to ₹12,174.33 crore.

Operational Strength and Margin Expansion

The company's operational efficiency was evident in its earnings before interest, tax, depreciation, and amortisation (EBITDA), which jumped 22% YoY to ₹3,161 crore. The EBITDA margin expanded to 20.8%, an improvement of 60 basis points from 20.2% in the same quarter last year. This margin expansion was attributed to favorable currency movements and benefits from the production-linked incentive (PLI) scheme, which helped offset rising input costs and the margin impact from the growing share of electric vehicles.

Domestic Market Dominance

Bajaj Auto's domestic business delivered record revenues, fueled by strong execution during the festive season. The domestic motorcycle division recorded its best-ever quarter for the 125cc and above segment, posting double-digit revenue growth. This performance was largely driven by the refreshed Pulsar portfolio, which saw improved traction and led to historic high retail volumes. Furthermore, the premium motorcycle brands, KTM and Triumph, accelerated their momentum with a 50% YoY growth in domestic volumes and revenue, supported by new product launches and strategic pricing adjustments.

Surge in Electric Vehicle Sales

The electric vehicle (EV) segment emerged as a significant contributor to the company's growth. The electric portfolio accounted for 25% of domestic revenues during the quarter. In a notable achievement, the revenue from the EV segment in Q3 alone surpassed the total EV revenue for the entire previous fiscal year. The Chetak electric scooter delivered a standout performance, with sales growing 70% over the previous quarter, registering an all-time high.

Key Financial Highlights (Q3 FY26 vs Q3 FY25)

Rebound in Export Markets

After a prolonged period of subdued performance, Bajaj Auto's export business showed a strong resurgence. Quarterly export volumes crossed the 6 lakh unit mark for the first time in 15 quarters. This recovery was led by solid double-digit growth in key markets across Africa and Asia, while the company maintained its market-leading performance in Latin America. The export of commercial vehicles also saw a significant increase of over 50% YoY.

Commercial Vehicle Segment Performance

The commercial vehicles division continued its consistent upward trend. The segment clocked its highest-ever retail sales, with volumes surpassing the 100,000 unit mark for the tenth consecutive quarter, reinforcing its strong position in the market.

Balance Sheet and Market Reaction

Bajaj Auto's financial health remains robust. The company reported surplus funds of ₹15,000 crore at the end of the quarter. This is after distributing ₹5,864 crore in dividends and infusing over ₹2,300 crore into its subsidiaries during the period. Following the announcement of the strong quarterly results, the company's shares closed 0.76% higher at ₹9,584 on the National Stock Exchange.

Conclusion and Outlook

Bajaj Auto's third-quarter results for FY26 highlight a period of exceptional growth across all business verticals. The company's strategic focus on premium motorcycles, the rapid expansion of its electric vehicle portfolio, and a sharp recovery in exports have collectively driven record-breaking financial performance. With a strong balance sheet and continued momentum, the company is well-positioned to build on these gains. Investors will be watching for updates on upcoming product launches and the sustained performance of its e-mobility and export initiatives.