Bajaj Mobility (BMAG) Q2 2026 earnings summary

Executive summary

• Achieved a significant operational turnaround in H1 2026, with revenue up 65% year-over-year to €701.4 million, positive EBITDA in Q1, and positive EBIT in Q2, driven by a near doubling of motorcycle sales and major cost reductions.

• Substantial cost reductions through headcount cuts and overhead streamlining, with 435–500 positions reduced and inventory levels normalized.

• Completed business mix transformation, with motorcycles now the main revenue driver and bicycle business nearly exited.

• Strong commitment to motorsport and product innovation, with new models, sponsorships, and major motorsport victories in 2026.

• Management board strengthened with new hires in marketing, sales, R&D, and executive appointments.

Financial highlights

• H1 2026 revenue: €701.4 million, up 65% year-over-year; Q2 revenue: €370.2 million, up 60.5%.

• EBITDA margin improved to 5.4% for H1 2026; Q2 standalone EBITDA margin at 8.7%.

• Adjusted EBIT improved from -€256 million to -€25 million year-over-year; Q2 EBIT turned positive at €1.3 million.

• Free cash flow remains negative at €-22 million, but improved from €-38 million year-over-year.

• Overhead costs reduced by €65.8 million year-over-year.

Outlook and guidance

• No formal guidance provided; management targets positive net income, further free cash flow improvement, and sustainable profitability for 2026.

• Full-year and mid-term guidance expected by year-end 2026.

• Focus remains on profitable growth, innovation, and further strengthening of the management team.

• Working capital ratio targeted to decrease from 30.8% to low 20s over the next 1–3 years.

• Continued commitment to MotoGP, with contract extended through 2031.