Bajaj Auto Q1 FY26 PAT Up 13.84%, Revenue Grows 10%

Bajaj Auto Limited, one of India’s leading two-wheeler and three-wheeler manufacturers, announced its Q1 FY26 results on 6th August 2025, showcasing solid financial performance. The company delivered a 13.84% rise in consolidated profit after tax (PAT) along with a healthy 10.07% increase in revenue compared to Q1 FY25.

Bajaj Auto’s performance underscores its consistent market leadership, operational efficiency, and demand for its premium and mid-range products across both domestic and export markets.

Consolidated Financial Performance: Q1 FY26 vs Q1 FY25

• Revenue growth of ₹1,201.28 crores YoY.

• PAT growth of ₹268.65 crores YoY.

This reflects increased volumes, better product mix, and stable input costs driving improved margins.

Standalone Financial Snapshot: Steady Growth Maintained

• Standalone PAT increased by 5.41%

• Standalone revenue increased by 5.50%

The numbers reflect robust demand in the domestic market and improving traction in international markets despite currency and regulatory headwinds in some regions.

Key Highlights from Q1 FY26

• Bajaj Auto achieved consolidated revenue of ₹13,133.35 crores, up 10.07% YoY.

• Consolidated PAT came in at ₹2,210.44 crores, a growth of 13.84% YoY.

• Standalone PAT rose 5.41% YoY to ₹2,095.98 crores.

• The company continued to maintain strong operational margins, especially in the premium segment.

• Exports contributed significantly despite challenges in some geographies.

Bajaj Auto Share Price Performance

On 6th August 2025, Bajaj Auto shares opened at ₹8,269.00 per share. However, the stock witnessed mild selling pressure and was trading at ₹8,175.00, down marginally from the opening price.

This dip could be attributed to broader market sentiment or profit booking post results, despite the strong earnings numbers.

Long-Term Stock Performance Overview

• Over the last year, the stock has seen some correction, aligning with broader market trends and valuation resets.

• In the long run, Bajaj Auto continues to be a strong wealth creator, delivering multibagger returns over the years.

What Drove Q1 FY26 Growth?

🔹 Strong Domestic Demand

Demand for premium motorcycles and three-wheelers improved in India due to increased urban mobility and rising disposable income.

🔹 Improved Export Performance

Despite headwinds in Africa and parts of Southeast Asia, the company recorded resilient export sales, particularly in Latin America and Middle East regions.

🔹 New Launches & EV Progress

New launches like updated Pulsar and EV models under Chetak brand gained traction. Investments in EV platforms show promise for long-term growth.

🔹 Operational Efficiency

Better supply chain management, sourcing efficiency, and lean manufacturing led to improved cost control and sustained margins.

Segment-Wise Performance Insight

✅ Motorcycles

• Continued dominance in premium segments (Pulsar, Dominar)

• Expansion into new models for urban and youth segments

• Margins supported by strong pricing power

✅ Three-Wheelers

• Recovery seen in domestic and export auto rickshaw sales

• CNG models continue to gain acceptance

• Electric three-wheeler development in pipeline

✅ Electric Vehicles (EV)

• Chetak sales increasing gradually

• Ongoing development of next-gen EV platforms

• Investments in battery tech and charging infrastructure

Key Ratios & Financial Strength

• PAT Margin (Consolidated): ~16.83%

• Earnings per Share (EPS): Healthy growth expected post Q1 FY26

• Return on Equity (ROE): Strong and consistent

• Debt: Low debt levels; remains virtually debt-free

Bajaj Auto maintains a solid balance sheet with consistent free cash flow generation, enabling investments in R&D, capex, and shareholder returns.

Risks & Challenges Ahead

While Bajaj Auto’s Q1 FY26 performance is commendable, a few risk factors remain:

❌ Export Dependency

Adverse currency movements and regional instabilities can impact exports.

❌ EV Transition Uncertainty

Success in the EV space depends on infrastructure rollout, pricing, and government policies.

❌ Commodity Price Fluctuations

Rising input costs like aluminum or rubber may affect margin stability.

❌ Intense Competition

Competitive pressure from domestic and international rivals, especially in EV and commuter segments, remains a challenge.

Management Commentary & Future Outlook

The management has maintained a positive outlook for FY26, backed by:

• Strong product pipeline across ICE and EV categories

• Expanding international presence

• Enhanced R&D for electric mobility

• Focus on cost discipline and margin sustainability

The company aims to increase market share across segments while transitioning into a future-ready mobility solutions provider.

Bajaj Auto Q1 FY26: Performance Summary Table

Should Investors Consider Bajaj Auto?

Bajaj Auto has proven its strength in terms of profitability, innovation, and resilience in both domestic and global markets. With a strong pipeline of premium vehicles and EVs, the company is well-positioned to benefit from the evolving automotive landscape.

The stock’s recent correction may present an opportunity for long-term investors, especially those focused on blue-chip auto stocks with strong fundamentals.

✅ Ideal for:

• Long-term investors

• Growth-oriented portfolios

• Those looking for EV and export market exposure

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