Bajaj Auto Limited disclosed the quarterly report of its step-down subsidiary Bajaj Mobility AG (formerly PIERER Mobility AG) for the first quarter of 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was received by the company on 13 May 2026 at around 10:10 AM (IST). Bajaj Mobility AG's shares are listed on the SIX Swiss Exchange and the Vienna Stock Exchange.

Q1 2026 Financial Highlights

Bajaj Mobility AG recorded a marked improvement in operating performance in Q1 2026 compared to the same quarter of the previous year. The following table summarises the key financial and operational metrics:

Equity as of December 31, 2025 stood at EUR 385.2 mn, with an equity ratio of 24.3%, compared to EUR 350.7 mn and 22.2% respectively as of March 31, 2026.

Revenue Growth Driven by Strong Motorcycle Demand

The sales trend in Q1 2026 reflected strong demand for motorcycles across the KTM, Husqvarna, and GASGAS brands. Overall motorcycle unit sales rose from 17,915 to 40,332 units, representing a 125.1% increase versus Q1 2025. Motorcycle revenue more than doubled from EUR 108.3 mn to EUR 272.4 mn, a growth of 151.6%. Group revenue of EUR 331.3 mn also includes EUR 1.0 mn from the sale of remaining stocks in the bicycle segment, compared to EUR 26.8 mn from the same segment in Q1 2025. Global inventories were further reduced during the quarter as part of the ongoing restructuring focus. CFO Petra Preining noted: "The significant increase in motorcycle sales and the positive EBITDA prove that our operational realignment is taking effect. At the same time, we have sustainably strengthened our financial stability with the refinancing and created the basis for profitable growth."

Refinancing Milestone Strengthens Financial Base

A key development in Q1 2026 was the successful completion of a EUR 550 mn refinancing by KTM AG in February 2026. The unsecured loan, with a maturity of five years, was provided by an international banking consortium comprising J.P. Morgan SE, HSBC, DBS Bank Limited, and MUFG Bank Ltd. The transaction enabled the full repayment of the restructuring loan from Bajaj Auto International Holdings B.V. of around EUR 473 mn (including payment-in-kind), significantly strengthening the Group's financial base and flexibility.

Organisational Restructuring and Management Changes

As part of the ongoing restructuring program, a staff reduction of 500 employees was initiated in Q1 2026, primarily affecting the white-collar sector and middle management. This process is expected to be completed by Q3 2026 and was developed in close cooperation with the works council and social partners. Additionally, KTM AG reinforced its management team with several key appointments:

• Stephan Reiff took over as Chief Commercial Officer on April 1, 2026, responsible for marketing and sales activities
• Klaus Allisat assumed the position of Vice President Sales Europe from May 4, 2026
• Johann von Balluseck took over as Vice President Sales Rest of World from May 4, 2026

Motorsport Achievements Underline Competitive Strength

Bajaj Mobility AG's brands continued their strong motorsport performance in 2026, reinforcing the Group's technological leadership:

• Luciano Benavides won the 2026 Dakar Rally with Red Bull KTM Factory Racing — KTM's 21st Dakar title
• Billy Bolt was crowned SuperEnduro World Champion for Husqvarna Factory Racing for the sixth consecutive year
• Lucas Coenen leads the MXGP World Championship
• Simon Längenfelder and Sacha Coenen hold the double lead in the MX2 championship

Outlook for 2026

For the 2026 financial year, Bajaj Mobility AG's focus remains on continuing the restructuring program and improving profitability. The efficiency program will continue with full focus on streamlining the product and project portfolio. CEO Gottfried Neumeister stated: "The first quarter of 2026 marks a noticeable turning point for our company. The positive response to our new models combined with implemented restructuring measures shows that we have set the right priorities. Now it is important to use this momentum, further increase our efficiency and secure sustainable profitability." The company operates across more than 70 countries and, through its parent Bajaj Auto Limited, benefits from extensive technological expertise and a global distribution network.

Bajaj Auto has flagged concerns over the near-term trajectory of the motorcycle industry, cautioning that growth could moderate significantly in FY27. The company warned that rising fuel prices and increasing metal costs are emerging as key headwinds that may dampen both consumer demand and profitability across the segment.

Growth Outlook Under Pressure

According to the company's assessment, motorcycle industry growth may drop to the 7-9% range in FY27. This projection reflects the combined impact of escalating fuel prices, which affect the total cost of ownership for consumers, and higher metal costs, which directly influence vehicle manufacturing expenses.

Headwinds Identified

Bajaj Auto's warning highlights two primary concerns weighing on the sector's growth outlook:

• Fuel Prices: Increasing fuel costs raise the overall cost of vehicle ownership, potentially dampening consumer appetite for new motorcycle purchases.
• Metal Costs: Higher input costs for metals used in manufacturing could compress margins and exert upward pressure on vehicle prices, further affecting affordability.

The caution from Bajaj Auto underscores the broader challenges facing the Indian two-wheeler industry as it navigates a more complex cost environment in FY27.