Bajaj Auto Q3 Results: Profit Soars 25% to a Record High

Introduction

Bajaj Auto announced a landmark performance for the third quarter of fiscal year 2025-26, reporting its highest-ever quarterly revenue and profit. The two-wheeler major's consolidated net profit grew by 25% year-on-year to reach ₹2,749 crore. Revenue from operations also saw a significant 23% increase, climbing to ₹16,204 crore. This robust financial result was driven by double-digit growth across all business segments, a favorable festive season, and strong execution in both domestic and international markets.

Broad-Based Growth Fuels Record Quarter

The company's exceptional performance was not confined to a single segment. Instead, it was the result of a comprehensive strategy that yielded growth across its entire portfolio. A richer product mix, favoring higher-margin premium motorcycles, played a crucial role. The festive season provided a significant tailwind, boosting retail volumes to historic levels. This momentum was further supported by positive consumer sentiment following recent GST rationalisation, which particularly benefited the premium vehicle segments where Bajaj Auto has a strong presence.

Domestic Motorcycle Segment Hits New Highs

In the domestic market, Bajaj Auto's motorcycle division delivered a standout performance, especially in the 125cc and above category. The Pulsar portfolio, bolstered by recent product upgrades and targeted marketing campaigns, witnessed robust demand. This led to the company's biggest quarter for its 125cc+ range, with retail volumes reaching an all-time high. The strategic focus on the premium end of the market has clearly paid dividends, aligning the company's portfolio with the segments experiencing the strongest growth in the industry.

Electric Vehicles Emerge as a Key Revenue Driver

The electric vehicle (EV) division has become a significant pillar of growth for Bajaj Auto. The Chetak electric scooter saw a strong rebound during the quarter as previous supply chain constraints eased, helping the company regain its position as the number two player in the e-scooter market. The EV portfolio's contribution to domestic revenue was substantial, accounting for 25% of the total. According to Executive Director Rakesh Sharma, the EV business has now achieved double-digit profitability, a marked improvement from the losses recorded just a year ago. The company has also expanded its Chetak lineup with a new entry-level variant to attract a wider customer base.

Financial Performance at a Glance

Exports Stage a Strong Comeback

After a period of challenges, Bajaj Auto's export business staged a powerful recovery in Q3 FY26. Export volumes crossed the 600,000-unit mark for the first time in 15 quarters, demonstrating a sustained double-digit year-on-year growth trajectory. This resurgence was led by strong performances in key international markets across Africa, Asia, and Latin America. The company's ability to navigate currency volatility and tariff changes in emerging markets underscores the resilience of its global business model.

Management's Perspective on Performance

Rakesh Sharma, Executive Director at Bajaj Auto, described the third quarter as a period of peak performance. He attributed the success to a favorable demand environment and strong execution. "The industry moved into double-digit growth, led by higher-displacement and premium segments, which aligns well with our portfolio, while exports also delivered strong growth," Sharma stated. He highlighted that the combined strength of the domestic internal combustion engine (ICE), EV, and export businesses resulted in an exceptionally strong quarter for the company.

Market Reaction and Future Outlook

The financial results were well-received by the market, with Bajaj Auto's shares closing 0.7% higher at ₹9,583 apiece on the BSE following the announcement. Looking ahead, the company's management remains optimistic about near-term demand. The growth momentum is expected to remain healthy in the coming months, aided by the ongoing wedding season. However, Sharma cautioned that long-term sustainability will depend on macroeconomic factors, particularly inflation trends related to fuel and rentals. The company's healthy balance sheet, with a cash surplus of around ₹15,000 crore, provides a strong foundation to navigate future challenges and invest in growth opportunities.

Conclusion

Bajaj Auto's Q3 FY26 results underscore a period of exceptional operational and financial strength. Record-breaking revenue and profit, driven by a multi-pronged strategy focusing on premium motorcycles, electric vehicles, and a resurgent export market, have positioned the company for continued success. With a robust product pipeline and a strong market presence, Bajaj Auto appears well-equipped to build on this momentum in the quarters ahead.