Bajaj Auto Q3 Results: Profit Jumps 19% to ₹2,502 Crore, Revenue Hits Record High

Introduction to Bajaj Auto's Q3 Performance

Bajaj Auto Ltd. announced a robust financial performance for the third quarter of the fiscal year 2026, ending December 31, 2025. The company achieved significant milestones, including its highest-ever quarterly revenue and a substantial increase in profitability. The growth was broad-based, with strong contributions from its domestic, export, and electric vehicle segments, signaling a comprehensive and effective business strategy. Despite marginally missing street expectations on net profit, the overall results underscore a period of strong operational execution and market expansion for the two-wheeler major.

Detailed Financial Breakdown

For the quarter, Bajaj Auto's standalone revenue from operations surged by 18.8% year-on-year, reaching ₹15,220 crore. This marks the first time the company's quarterly revenue has surpassed the ₹15,000 crore threshold, a landmark achievement driven by record sales volumes and a richer product mix favouring premium models. The company's net profit saw an 18.6% year-on-year increase, climbing to ₹2,502 crore. This figure was slightly below the analyst consensus of ₹2,562 crore. The reported profit after tax included a one-time exceptional charge of ₹61.3 crore, related to the reassessment of employee benefit obligations under the revised labour code definitions notified in November 2025. Without this exceptional item, the profit would have been even higher, crossing the ₹2,500 crore mark.

Operational Excellence and Margin Expansion

On the operational front, Bajaj Auto demonstrated impressive efficiency. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 22.5% year-on-year to ₹3,161 crore, surpassing the estimated ₹3,149 crore. This strong EBITDA performance led to an expansion in operating margins, which stood at 20.8%. This is a notable improvement from 20.2% in the same quarter of the previous year and ahead of the poll estimate of 20.5%. The margin expansion was achieved despite the impact of the new labour code and indicates effective cost management and favourable currency movements.

Domestic Market Dominance

The domestic business was a key pillar of this quarter's success, posting its highest-ever revenues. This performance was fueled by strong festive season demand, which led to record retail sales across motorcycles, three-wheelers, and electric two-wheelers. The company's focus on the premium 125cc+ motorcycle segment paid off, with the Pulsar portfolio showing improved traction and driving retail volumes to a historic high. The strategic execution during the festive period solidified Bajaj Auto's position in the domestic market.

The Electric Vehicle Surge

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 feat, the EV segment's revenue for the quarter surpassed the entire previous fiscal year's revenue midway through the quarter. The Chetak scooter had its best-ever sales quarter, growing 70% over the previous quarter, aided by improved component sourcing and a significant ramp-up in production. This rapid growth highlights the company's successful pivot towards electric mobility and its ability to capture a growing market segment.

Strong Recovery in Exports

The export market, a traditional stronghold for Bajaj Auto, showed a robust recovery. Quarterly export volumes crossed the 500,000-unit mark for the first time in 15 quarters. The company reported double-digit growth in key international markets, including Africa and Asia, while maintaining its strong performance in Latin America. This resurgence in exports demonstrates the brand's global appeal and its ability to navigate challenging international market conditions, contributing significantly to the overall revenue growth.

Premium Segment and Commercial Vehicles

The premium motorcycle brands, KTM and Triumph, continued their impressive growth trajectory. The portfolio reported a nearly 50% year-on-year increase in domestic volumes, scaling new heights in both sales and revenue. This success underscores 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, delivering solid volumes and contributing to the diversified revenue stream.

Financial Health and Market Reaction

Bajaj Auto's financial discipline is evident in its strong balance sheet. The company generated approximately ₹5,200 crore of free cash flow in the first nine months of FY26. Even after distributing dividends and making capital infusions into its subsidiaries, the company maintained a healthy cash surplus of around ₹15,000 crore. Ahead of the earnings announcement, the company's shares reflected positive investor sentiment, closing at ₹9,584 on the NSE, a gain of 0.76%.

Conclusion and Forward Outlook

Bajaj Auto's Q3 FY26 results paint a picture of a company firing on all cylinders. Record revenues, expanded margins, and strong growth across all key segments—domestic, exports, EVs, and premium motorcycles—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 robust market presence, Bajaj Auto appears poised to continue its growth momentum in the upcoming quarters.