Bajaj Auto Limited reported a strong financial performance for the first quarter ended June 30, 2026, with net profit rising 42% year-on-year to ₹2,983 crore. The company achieved record revenue from operations of ₹17,244 crore, a 37% increase compared to the corresponding period last year, driven by robust volume growth across domestic and export markets. EBITDA for the quarter stood at ₹3,596 crore, up 45% year-on-year, with margins expanding to 20.9% from 19.7% in the previous year. The strong quarterly showing has drawn widespread positive commentary from leading brokerages, with analysts citing margin resilience, export momentum, and new product launches as key drivers.

Operational Performance

The company reported total sales of 1,438,251 units during the quarter, a 29% increase year-on-year. Domestic sales grew 11% to 706,078 units, while exports surged 54% to 732,173 units, surpassing the 700,000 mark for the first time. The commercial vehicles segment saw significant growth, with revenues increasing 25% year-on-year, led by electric three-wheelers which now account for nearly two-thirds of the ICE 3W franchise size.

Financial Metrics

The following table summarises Bajaj Auto's standalone financial results for Q1 FY27:

Brokerage Views

Following the quarterly results, multiple brokerages weighed in with updated ratings and target prices. The table below summarises the key analyst calls on Bajaj Auto:

MOSL upgraded its rating to Buy from a prior stance, citing a margin-led earnings beat and a strong export outlook alongside robust free cash flow generation. Jefferies maintained its Hold rating with a target price of ₹11,500, acknowledging that both EBITDA and PAT exceeded estimates on the back of resilient margins and strong demand across domestic and export markets. Bernstein retained its Outperform rating at the same target of ₹11,500, highlighting superior execution and a clear roadmap for EBITDA recovery. CLSA also maintained Outperform with a target price of ₹12,068, noting that the Q1 EBITDA margin beat estimates despite commodity inflation, supported by a favourable export mix, price hikes, operating leverage, and disciplined cost controls.

Strategic Developments

The Board of Directors approved the buyback of up to 4,694,000 equity shares at ₹12,000 per share, aggregating to ₹5,632.80 crore. The tendering period closed on July 7, 2026, and payment was made to accepted shareholders on July 14, 2026. Additionally, the company noted that the Ministry of Environment, Forest and Climate Change has issued Environment Protection (End-of-Life Vehicles) Rules, 2025, though the pricing mechanism for Extended Producer Responsibility certificates is yet to be notified.

Earnings Call Update

In furtherance of its results announcement, Bajaj Auto held a conference call on July 21, 2026, at 06:00 p.m. IST to discuss the Q1 and FY27 results. The audio recording of the conference call has been hosted on the company website and is available under the 'QUARTERLY RESULTS' section.

Bajaj Auto management has conveyed strong confidence in its near-term and full-year outlook, pointing to robust domestic and international demand as key drivers of performance heading into Q2 and FY27. The company's strategic priorities span export scale-up, significant production capacity expansion, a sweeping product portfolio overhaul, and accelerated growth in its electric vehicle segment.

Export Ambitions Anchored in Latin America and Africa

Bajaj Auto has set a target to export over 250,000 units monthly beginning Q2, underpinned by its established presence in key international markets. The company's dominance in sports bikes across Latin America and strong momentum in commercial bikes in Africa — particularly the Boxer 125 Heavy Duty — form the backbone of this export strategy. These geographies represent critical growth corridors as the company looks to deepen its global footprint.

Capacity Scale-Up to 9 Million Units Annually

To support its growth ambitions, Bajaj Auto is targeting a production capacity increase of nearly 25%, aiming to reach 9 million units annually. This expansion is being directed toward three key segments:

• Electric Vehicles (EVs)
• Premium Motorcycles
• Three-Wheelers

The capacity build-out reflects the company's intent to align manufacturing scale with anticipated demand across both domestic and export markets.

Comprehensive 125CC+ Portfolio Revamp for FY27

Bajaj Auto has outlined an extensive product refresh strategy for FY27, targeting the competitive 125CC+ motorcycle segment. The planned launches and updates are detailed below:

This full portfolio revamp is designed to strengthen Bajaj Auto's competitive edge in the 125CC+ segment and drive growth through the fiscal year.

Electric Division Targets Rapid Two- and Three-Wheeler Growth

Bajaj Auto's electric division is focused on achieving rapid growth across both two-wheelers and three-wheelers, with capacity management identified as a key operational priority. The company aims to scale its EV business in tandem with the broader production expansion, positioning the electric segment as a significant contributor to overall volume and revenue going forward.

Collectively, these initiatives reflect Bajaj Auto's multi-pronged approach to sustaining growth momentum — spanning international market expansion, domestic product competitiveness, manufacturing scale, and the transition toward electric mobility.