Bajaj Auto reported a robust 30% year-on-year increase in total vehicle sales for July 2026, delivering 4,74,677 units against 3,66,000 units in the same month last year, surpassing analyst estimates of 4,55,100 units. The strong performance was primarily driven by a significant surge in export volumes, which rose 39% to 2,54,485 units, underscoring the company's expanding global footprint. Domestic sales also contributed to the growth, increasing 20% to 2,20,192 units. This monthly momentum supports a broader upward trend, with year-to-date (YTD) sales for the April–July 2026 period climbing 29% to 19,12,928 units compared to the same period last year.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The press release was issued on August 03, 2026, and signed by Rajiv Gandhi, Company Secretary & Compliance Officer. Rakesh Sharma, Joint Managing Director, provided the sales data for the month.

Monthly Sales Breakdown

Two-wheeler sales remained the core contributor, with total units sold rising 31% to 3,88,719. Within this segment, export demand showed exceptional strength, jumping 42% to 2,22,972 units, while domestic two-wheeler sales grew 19% to 1,65,747 units. Commercial vehicle (CV) sales also posted healthy gains, with total CV deliveries up 23% to 85,958 units. Domestic CV sales increased 24% to 54,445 units, and export CV sales rose 22% to 31,513 units.

Year-to-Date Performance

The positive trend observed in July is consistent with the broader performance since the start of the financial year. For the four-month period from April to July 2026, total sales reached 19,12,928 units, a 29% increase over the 14,77,237 units sold in the corresponding period of FY25. Export volumes have been particularly strong YTD, rising 50% to 9,86,658 units, while domestic sales grew 13% to 9,26,270 units.

What the Numbers Show

The data reveals a distinct divergence between domestic and export growth rates, highlighting the company's reliance on international markets for volume acceleration. While domestic two-wheeler sales grew at a moderate 19%, export two-wheeler sales surged by 42%. Similarly, in the commercial vehicle segment, export sales grew 22% compared to 24% domestic growth, but the absolute volume contribution of exports is increasingly significant. The 50% YTD growth in total exports versus 13% domestic growth suggests that Bajaj Auto's recent volume expansion is disproportionately driven by its international operations. The July sales figure also came in ahead of the analyst estimate of 4,55,100 units, reflecting stronger-than-expected demand across both segments.

Bajaj Auto Limited reported a record-breaking first quarter for FY27, with net profit surging 42% year-on-year to ₹2,983 crore and revenue from operations jumping 37% to ₹17,244 crore. The strong performance was achieved despite significant headwinds, including a ransomware attack, supply chain disruptions, and hyperinflationary commodity costs that impacted revenue by 4.5%. Joint Managing Director Rakesh Sharma noted that these factors impaired volume availability by 10-15%, suggesting actual demand would have supported sales of over 1.5 million units. The company expanded its EBITDA margin to 20.9% from 19.7% in the previous year, driven by a 54% surge in exports and robust domestic demand in premium segments.

Operational Highlights

Total sales reached an all-time high of 1,438,251 units, a 29% increase year-on-year. Exports delivered standout performance with 732,173 units sold, generating USD 735 million in revenue and accounting for approximately 40% of total revenue. In Africa, retail sales doubled year-on-year, led by the Boxer 125 Heavy Duty, achieving nearly 60% market share in Nigeria. Latin America also showed strong growth, particularly in Mexico and Brazil, where retail volumes grew over 50%. Domestic two-wheeler volumes were supported by the 150cc-plus segment, which grew faster than the industry average. The electric vehicle (EV) portfolio, comprising Chetak scooters and electric three-wheelers, delivered its largest-ever quarter, contributing 30% of domestic revenues. Chetak volumes grew 65% year-on-year, with the brand now present in over 530 exclusive stores.

Financial Performance

The company’s financial metrics reflect strong operating leverage and disciplined cost management. Steel prices rose by over 10%, while aluminum and platinum increased by nearly 40%. Management offset roughly half of this inflation through calibrated pricing actions between April and June. The depreciation of the Indian rupee provided a significant cushion, with the realized USD-INR rate at ₹94.4 compared to ₹85.6 in Q1 FY26. Free cash flow generation more than doubled to over ₹2,300 crore, representing an 80% cash conversion ratio against profit after tax. Consolidated revenues rose 65% to ₹21,689 crore, aided by the full-quarter consolidation of Bajaj Mobility AG and strong performance from Bajaj Auto Credit Limited (BACL), which reported a profit after tax of ₹227 crore.

Strategic Developments & Outlook

Management highlighted that supply chain disruptions, including fuel availability issues and geopolitical tensions, impaired volume availability. To address future demand, Bajaj Auto is expanding its manufacturing capacity from 7 million to 9 million units annually, with immediate focus on EV two-wheelers and three-wheelers. Chetak’s capacity is set to increase from 50,000 to 60,000 units in the short term. Looking ahead, the company plans a comprehensive portfolio makeover in the domestic motorcycle segment, launching 10 new variants and two new brands in the 125cc segment within six weeks. Chief Financial Officer Dinesh Thapar warned that cost pressures are broadening beyond base metals to include electronics and labor, requiring continued discipline on discretionary spending. The Board had previously approved a buyback of up to 4,694,000 shares at ₹12,000 per share, concluding in July 2026.

What the Numbers Show

The divergence between top-line growth (37%) and EBITDA growth (45%) underscores the effectiveness of Bajaj Auto’s pricing power and operational leverage. While commodity inflation was severe, the ability to pass through costs via price hikes, combined with favorable currency movements, protected margins. Furthermore, the transition of the EV business from EBITDA-neutral to EBITDA-positive marks a critical inflection point, transforming it from a strategic investment into a meaningful profit contributor. This shift, alongside the doubling of free cash flow, provides substantial flexibility for future capacity expansion and shareholder returns without compromising balance sheet health.

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