Bajaj Auto Q4FY26 profit doubles as KTM reset begins

A March-quarter jump, with a key accounting boost

Bajaj Auto reported a sharp rise in consolidated earnings for Q4FY26, supported by record volumes across key segments and a one-time gain linked to restructuring its international holdings. Consolidated profit after tax more than doubled to Rs 3,662 crore, a 103% year-on-year increase. Revenue from operations rose 41% year-on-year to Rs 17,832 crore for the quarter. The company said the reported numbers are not strictly comparable with the year-ago period because of consolidation changes effective during the year.

A major driver of the headline profit was the consolidation of Bajaj Auto International Holdings AG (BAIHAG), the holding entity for KTM and Bajaj Mobility AG, as a subsidiary from November 18, 2025. This consolidation resulted in a one-time gain of Rs 1,195 crore from fair value re-measurement and reclassification of foreign currency translation reserves. Bajaj Auto also pointed to an improved product mix and favourable currency rates alongside higher volumes.

Consolidation of BAIHAG and why comparability changed

The company’s Q4 consolidated earnings included the effect of bringing BAIHAG into the consolidated financials as a subsidiary. Because of that, year-on-year comparisons for consolidated profitability need caution. The company explicitly highlighted the one-time gain as a meaningful contributor to the quarter’s reported profitability.

Beyond the consolidation impact, Bajaj Auto described the quarter as a broad-based expansion across domestic motorcycles, electric two-wheelers, three-wheelers, and exports. The company attributed performance to a combination of record volumes, better product mix and supportive currency realisations.

Full-year FY26: higher revenue and profit

For FY26, Bajaj Auto reported consolidated revenue from operations of Rs 62,905 crore, up 23% year-on-year. Consolidated profit after tax for the year increased 47% to Rs 10,744 crore.

The FY26 outcome sits alongside strong quarterly execution across segments, particularly in domestic motorcycles and exports. The company’s commentary around volumes and mix indicates that growth drivers were not limited to a single product line, with electric two-wheelers and premium partnerships also adding momentum.

Domestic motorcycles: Pulsar interventions and higher-segment mix

In domestic motorcycles, Bajaj Auto said revenues rose about 30% year-on-year in Q4FY26. The company linked this to interventions and upgrades in the Pulsar N/NS range since October. It also said these upgraded products now account for over 50% of Bajaj’s sales in the 150 cc-plus segment, supporting market share gains in that category.

This focus on the higher-displacement segment also aligns with the company’s broader strategy of improving the mix. A richer product mix typically helps resilience when input costs or freight costs rise, and the company explicitly cited mix improvement as one of the drivers of the quarter’s performance.

KTM and Triumph in India: record quarterly volumes

Bajaj Auto said KTM and Triumph delivered a record domestic performance of 43,000 units in the quarter, up 43%. The company stated that the partnership sustained over 40% year-on-year growth, with KTM led by the Duke range and Triumph by the Speed 400. It also said the two brands together emerged as the leader in the fast-growing adventure segment.

In a separate Reuters report dated May 6 from Bengaluru, Bajaj Auto said it posted the “best-ever performance” for its KTM-Triumph bikes, with a 40% fourth-quarter revenue jump from a year earlier. Reuters also reported that record sales of more profitable adventure and sports bikes helped expand margins by 30 basis points to 20.5% for the three months ended March 31, supported by favourable foreign-exchange realisations.

Chetak EV: 1 lakh-plus quarterly retail and higher share

The Chetak electric scooter delivered its strongest quarter, with retail volumes crossing 1 lakh units in a single quarter. Bajaj Auto said more than 50,000 units were sold in March alone. Market share rose to 22.8%, even as the company referenced earlier supply constraints.

Bajaj Auto also detailed distribution expansion for its EV business. The network has grown to over 500 exclusive stores and 4,000 additional outlets across more than 850 towns. The company said its EV portfolio now contributes over 20% of domestic revenues and delivers double-digit margins.

Exports: 6 lakh-plus quarterly units and a record year in dollars

Exports remained a key growth driver in Q4FY26, with volumes exceeding 6 lakh units for the quarter again. Bajaj Auto said export revenues grew over 30% year-on-year, supported by another record performance from the Pulsar range. It added that Latin America continued to set new benchmarks, while both Africa and Asia posted strong double-digit growth.

Rakesh Sharma, executive director at Bajaj Auto, said full-year export revenue was the highest ever at $1.2 billion. Separately, the company said it has exported about 17,000 units manufactured in India under the KTM brand and plans to expand this footprint progressively while maintaining quality and supply continuity.

Standalone Q4FY26: record revenue, stronger EBITDA

Bajaj Auto also reported its highest-ever standalone profit after tax for a quarter at Rs 2,746 crore for Q4FY26, up 34% year-on-year. Standalone revenue from operations rose 32% year-on-year to a record Rs 16,006 crore from Rs 12,148 crore in the same quarter last year.

Standalone EBITDA increased 36% year-on-year to Rs 3,323 crore from Rs 2,451 crore, and operating margin rose by 60 basis points to 20.8% from 20.2%. The company attributed the improved performance to higher domestic and export volumes, and reiterated growth drivers in domestic motorcycles as well as KTM and Triumph.

KTM turnaround: liquidity first, then management and costs

Bajaj Auto said the KTM turnaround is underway and expects the process to take about 18 months. Sharma laid out a three-step approach. The first step was liquidity, which the company said has been addressed, including efforts to reduce the cost of funds and restructure loans.

The second step is strengthening top management, with a new commercial officer, CFO and CTO now in place. The third step is cost reduction, including shifting sourcing to more competitive regions outside Europe, which Sharma said is in progress through multiple project teams. Bajaj Auto also flagged restructuring of subsidiaries and cost structures, adding that the turnaround is being driven by KTM’s management with governance and oversight from Bajaj Auto.

Policy and product positioning: push toward the 350cc segment

Reuters reported that Bajaj Auto plans to modify more motorcycle models to fit the 350cc premium segment to capitalise on tax cuts. The report said last year’s 10 percentage point tax cut on motorcycles with engine capacities up to 350 cc helped the automaker cushion margins against higher shipping expenses and higher steel and aluminium costs amid the Middle East conflict.

Reuters also reported that finance chief Dinesh Thapar said the company would bring motorcycles with engines above 350cc into the 350cc segment. In addition, Reuters said a switch to light rare-earth magnets resolved an issue that previously led the company to warn it could miss an electric-vehicle delivery target due to shortages.

Key numbers at a glance

Market impact: what the quarter signals

The Q4FY26 print highlights two parallel themes for investors following Bajaj Auto. First is operational momentum driven by volumes across domestic motorcycles, EVs, three-wheelers, and exports, with the company citing improved mix and favourable currency realisations. Second is the accounting-led uplift from consolidation, which amplified reported profitability through a one-time gain.

For the EV business, Chetak’s 1 lakh-plus quarterly retail volumes and 22.8% market share underscore a stronger quarter after earlier supply constraints, while the company’s expanding store network indicates an effort to widen reach. In exports, the company’s statement of $1.2 billion in full-year export revenue provides a scale marker for the international business even as it continues to report 6 lakh-plus quarterly export volumes.

Analysis: why KTM’s 18-month plan matters alongside core execution

Bajaj Auto’s commentary makes clear that KTM’s turnaround is being treated as a structured program with defined priorities: liquidity and funding costs, management strengthening, and cost reduction. The plan also includes shifting sourcing to more competitive regions outside Europe and restructuring subsidiaries and cost structures, with Bajaj Auto providing governance and oversight.

Alongside the turnaround narrative, Bajaj Auto’s India-facing product strategy is evolving. Reuters’ report on moving more models into the 350cc segment to benefit from tax changes sits next to the company’s own emphasis on upgraded Pulsar variants and growth in premium partnerships. The combination of higher mix, export resilience, and steps to stabilise KTM will be key reference points as the company executes through FY27.

Conclusion

Bajaj Auto’s Q4FY26 results brought a large year-on-year jump in consolidated profit, backed by record volumes and a one-time gain from consolidating BAIHAG. The quarter also showed strong traction for Chetak, continued export strength, and record domestic volumes for KTM and Triumph. Management has set out an 18-month KTM turnaround plan focused on liquidity, leadership and cost reduction, with further operational steps expected as the program progresses.