Bajaj Auto Limited has notified stock exchanges regarding the publication of annual financial results by its step-down subsidiary Bajaj Mobility AG, demonstrating a remarkable turnaround following an intensive restructuring year. The Austrian subsidiary, formerly known as PIERER Mobility AG, reported strong financial recovery for 2025.

Financial Performance and Recovery

Bajaj Mobility AG confirmed its preliminary financial figures for 2025, showcasing significant improvement in the second half of the year. The company achieved substantial operational stabilization following comprehensive restructuring measures implemented throughout the year.

Debt Reduction and Refinancing Success

The company achieved significant financial restructuring milestones during 2025. Net debt was substantially reduced to EUR 798 million, while inventory levels decreased by 101,153 units from 248,580 to 147,427 vehicles. This inventory optimization contributed to improved cash flow and operational efficiency.

A major refinancing achievement included securing an unsecured loan of EUR 550 million from an international banking consortium comprising J.P. Morgan SE, HSBC, DBS Bank Limited, and MUFG Bank Ltd. The five-year unsecured financing at favorable terms replaced the existing higher-interest EUR 450 million loan from Bajaj Auto, substantially improving financial stability.

Motorsport Excellence and Strategic Focus

Bajaj Mobility AG achieved unprecedented success in motorsport during 2025, securing 29 championship titles across its KTM, Husqvarna Motorcycles, and GASGAS brands. This represents the most successful motorsport year in the company's history, reinforcing technological leadership in the premium motorcycle segment.

The company strategically divested non-core business areas including MV Agusta, KTM X-Bow, and the entire bicycle segment to sharpen focus on core motorcycle operations. This strategic realignment supports the company's commitment to profitable growth in its primary business segments.

2026 Outlook and Market Position

CEO Gottfried Neumeister highlighted strong momentum entering 2026, noting that motorcycle sales in the first quarter already exceeded twice the volume of the previous year's comparable period. The company continues focusing on profitability improvements through efficiency gains and streamlined operations.

Bajaj Mobility AG, listed on SIX Swiss Exchange and Vienna Stock Exchange, operates as the holding company for iconic motorcycle brands including KTM, Husqvarna Motorcycles, and GASGAS. Through its parent company Bajaj Auto Limited, the group maintains extensive technological expertise and worldwide distribution networks across more than 70 countries.

Bajaj Auto has received a revised rating from global brokerage CLSA, which has maintained its Outperform recommendation while adjusting the target price downward. The brokerage's latest assessment reflects broader sector trends affecting original equipment manufacturers in the automotive space.

Rating and Target Price Revision

CLSA has updated its financial projections for Bajaj Auto with the following changes:

Earnings Outlook and Sector Context

The earnings per share reduction of 4-5% for FY27/28 positions Bajaj Auto within the broader OEM sector adjustments. CLSA has implemented cuts ranging from 3-13% across various original equipment manufacturers, indicating industry-wide earnings moderation expectations.

The brokerage's analysis suggests near-term earnings challenges while maintaining confidence in the company's fundamental prospects. This balanced approach reflects both current market realities and longer-term growth potential.

Analyst Perspective

Despite the target price reduction and earnings estimate cuts, CLSA's decision to maintain the Outperform rating indicates continued confidence in Bajaj Auto's relative performance within the automotive sector. The positive stance suggests that while near-term headwinds may impact earnings, the underlying business fundamentals remain sound.