Bajaj Mobility (BMAG) Q1 2026 earnings summary

Executive summary

• Revenue rebounded 70.2% year-over-year in Q1 2026, driven by the motorcycle segment and operational turnaround.

• Positive EBITDA achieved for the first time in many quarters, marking a significant operational recovery.

• Refocused on core motorcycle business, exiting bicycles, car business, and non-core brands, simplifying operations.

• Comprehensive restructuring and cost reduction, including headcount reduction and portfolio simplification.

• Successful launch of new motorcycle models and strong motorsport achievements reinforced brand strength.

Financial highlights

• Q1 2026 revenue reached €331.3 million, up 70.2% year-over-year, with motorcycle segment revenue up 151.6%.

• EBITDA turned positive at €5.5 million (1.7% margin), compared to -€55.8 million (-28.7%) a year earlier.

• Net profit improved to -€35.1 million from -€108.1 million year-over-year.

• Overhead costs reduced by 8.5% year-over-year; further cost savings expected from headcount reduction.

• Free cash flow was -€42.9 million, impacted by working capital and absence of prior year one-off asset sales.

Outlook and guidance

• Management expects further margin improvement and cost reductions, targeting historical margin levels.

• Additional new models planned for release, including the 1390 SUPER DUKE RR and MY27 KTM range.

• No significant increase in debt anticipated; focus remains on deleveraging and maintaining solid financial structure.

• Ongoing cost-saving initiatives and efficiency gains to drive future profitability.

• Geopolitical risks, particularly in the Middle East, could impact supply chains and commodity prices, though direct exposure is limited.