Bajaj Auto Q3 Results: Profit Soars 25% to ₹2,759 Crore

Introduction to Bajaj Auto's Strong Quarter

Bajaj Auto Ltd. announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The automobile major reported a significant 25% year-on-year (YoY) increase in its consolidated net profit, which reached ₹2,759 crore, compared to ₹2,195.65 crore in the same period last year. This growth was driven by record quarterly revenue, strong sales volumes across domestic and international markets, and an improved product mix.

Financial Highlights

The company's consolidated revenue from operations for the quarter surged by 23% YoY to ₹16,204 crore, up from ₹13,169 crore in Q3 FY25. On a standalone basis, the company also posted strong numbers, with revenue from operations growing 19% YoY to ₹15,220 crore, crossing the ₹15,000 crore mark for the first time in a single quarter. Standalone net profit rose 19% YoY to ₹2,502 crore. The company's operational efficiency was reflected in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which jumped 22% to ₹3,161 crore. The EBITDA margin expanded to 20.8%, an improvement of 60 basis points from the previous year, attributed to a richer product mix, favorable currency movements, and operational efficiencies.

Domestic Market Performance

The domestic business was a significant contributor to the quarter's success, posting its highest-ever revenues. This performance was fueled by strong festive season demand, which led to record retail sales. The company's strategic focus on the premium 125cc+ motorcycle segment yielded positive results, with the Pulsar portfolio showing improved traction and driving retail volumes to a historic high. Domestic two-wheeler sales grew by 2% to 601,208 units, while commercial vehicle sales saw a 9% increase to 129,829 units.

Surge in Electric Vehicle Segment

Bajaj Auto's electric vehicle (EV) division delivered a standout performance. The electric portfolio, led by the Chetak scooter, contributed a significant 25% to the domestic revenues. In a remarkable achievement, the EV segment's revenue for the quarter surpassed the entire previous fiscal year's revenue midway through the quarter. The Chetak scooter registered its best-ever sales, growing 70% over the previous quarter, aided by improved component sourcing and a ramp-up in production. This rapid growth underscores the company's successful pivot towards electric mobility.

Resurgence in Export Markets

The export market, a traditional stronghold for Bajaj Auto, demonstrated a robust recovery. Quarterly export volumes crossed the 500,000-unit mark for the first time in 15 quarters, sustaining a strong double-digit YoY growth trajectory. This resurgence was led by solid growth in key international markets, including Africa and Asia, while the company maintained its strong performance in Latin America. Exports of two-wheelers increased by 14% to 531,175 units, and commercial vehicle exports saw an impressive 56% jump.

Premium Segment and Commercial Vehicles

The premium motorcycle brands, KTM and Triumph, continued their impressive growth, reporting a nearly 50% YoY increase in domestic volumes and revenue. This success highlights the company's strategy of catering to the aspirational buyer in the premium segment. In parallel, the commercial vehicle (CV) segment maintained its strong momentum, with domestic retail sales surpassing the 100,000-unit mark for the tenth consecutive quarter, reinforcing its market leadership.

Strong Financial Health

Bajaj Auto's financial discipline is evident in its strong balance sheet. The company maintained a healthy cash surplus of around ₹15,000 crore at the end of the quarter. This was after distributing ₹5,864 crore in dividends and infusing over ₹2,300 crore into its subsidiaries during the period. The strong cash generation and prudent capital allocation reflect a solid financial foundation for future growth.

Conclusion and Outlook

Bajaj Auto's Q3 FY26 results showcase a company performing strongly across all its key segments—domestic, exports, EVs, and premium motorcycles. Record revenues, expanded margins, and robust sales volumes highlight a well-executed strategy. The company's ability to generate substantial free cash flow while investing in future growth areas like electric mobility positions it well for sustained performance. With a strong product pipeline and a solid market presence both in India and abroad, Bajaj Auto appears poised to continue its growth momentum in the upcoming quarters.