Bajaj Auto (BAJAJ-AUTO) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 17,244 crore, up 37% year-over-year, with volumes at 1.4 million units and EBITDA of INR 3,596 crore, driven by strong growth across ICE, EV, domestic, and export segments.

• EBITDA margin improved to 20.9%, with PAT at INR 3,000 crore, up over 40% year-over-year.

• Electric vehicles now contribute 30% of domestic revenue, nearly double last year’s level, and achieved double-digit EBITDA margin.

• Exports delivered their largest-ever quarter, with volumes surpassing 732,000 units and strong growth in Africa and Latin America.

• Overcame challenges including raw material inflation, supply chain disruptions, and a ransomware attack impacting availability by 10-15%.

Financial highlights

• Revenue from operations reached INR 17,244 crore, up 37% year-over-year; consolidated revenue at INR 21,689 crore, up 65%.

• EBITDA at INR 3,596 crore, up 45% year-over-year; EBITDA margin at 20.9%, up 110 bps.

• PAT at INR 3,000 crore, up 42% year-over-year; consolidated PAT at INR 3,226 crore.

• Free cash flow generation exceeded INR 2,300 crore, with cash conversion at 80% of PAT.

• Surplus cash exceeded INR 21,000 crore at quarter-end.

Outlook and guidance

• Capacity expansion underway to increase from 7 million to 9 million units per annum, focusing on EVs, high-end motorcycles, and three-wheelers.

• Supply chain disruptions expected to ease in Q2, supporting topline growth; rupee weakness seen as a cushion against cost increases.

• Continued investments planned for international expansion and competitive growth.

• Management remains cautious on inflation, with broader cost pressures expected in Q2; will continue dynamic pricing, cost control, and value engineering.

• Strategic focus on 125cc+ motorcycles, export growth, super-premium segment, and EV market share.