Bajaj Auto , a leading Indian motorcycle manufacturer, is poised to increase its stake in Austrian motorcycle maker KTM from 49.9% to 76%, pending European Union approval. This move comes in the wake of KTM's financial difficulties, which Bajaj Auto's Managing Director Rajiv Bajaj attributes to corporate greed and strategic missteps by KTM's leadership.

Financial Support and Restructuring

Bajaj Auto has extended a substantial support package to address KTM's liquidity crisis:

KTM's Challenges and Mistakes

According to Rajiv Bajaj, KTM's financial troubles stem from several key factors:

1. Entry into electric bicycle business: This diversification was seen as a strategic misstep.
2. Overproduction: Leading to excessive dealer inventory, estimated at over a year's worth of stock.
3. Pursuit of valuation: Bajaj suggests that these decisions were driven by a focus on increasing company valuation rather than sustainable growth.

Restructuring Efforts

In response to these challenges, KTM has initiated several restructuring measures:

• Leadership changes: Replacement of top management.
• Workforce reduction: Employee count decreased from 6,000 to 4,000.
• Supply chain restructuring: Plans are in place to reorganize the supply chain.
• Cost-cutting: Aims to reduce overheads by 50%.

Bajaj Auto's Plans for KTM

As Bajaj Auto seeks to increase its stake, it has outlined several strategies for KTM:

1. Maintain export operations to key markets, including the United States.
2. Implement significant cost-cutting measures.
3. Restructure the supply chain for improved efficiency.

KTM's Performance in India

Despite global challenges, KTM has shown strong performance in the Indian market:

• Sales growth: 70% year-on-year increase
• Outlook: Bajaj expects record sales for KTM in India this month

This situation highlights the complex dynamics of international partnerships in the automotive industry and the challenges of managing global brands amid changing market conditions. As Bajaj Auto moves to take a controlling stake in KTM, the motorcycle industry will be watching closely to see how this partnership evolves and whether it can successfully navigate the current financial turbulence.

Bajaj Auto Limited, a leading two-and-three-wheeler manufacturer in India, has announced its upcoming board meeting to review and approve the financial results for the second quarter and first half of the fiscal year 2025-26. The company has also provided insights into its recent financial performance and trading window closure for designated persons.

Board Meeting Details

The Board of Directors of Bajaj Auto is set to convene on November 7, 2025, to review and approve the unaudited standalone and consolidated financial results for Q2 and H1 FY26, ending September 30, 2025. The company has committed to submitting these results immediately after the board meeting, adhering to the regulatory requirement of reporting within 45 days from the quarter's end.

Trading Window Closure

In compliance with insider trading regulations, Bajaj Auto has announced the closure of its trading window for designated persons and their immediate relatives. The window will remain closed from October 1 to November 9, 2025, encompassing the sensitive period leading up to and following the financial results announcement.

Recent Financial Performance

While the upcoming meeting will focus on Q2 FY26 results, it's worth noting Bajaj Auto's performance in the previous quarter:

The Q1 FY26 results showed a positive trend with both net profit and revenue from operations experiencing year-over-year growth.

Investor Implications

The upcoming board meeting and subsequent release of Q2 and H1 FY26 results will provide investors and market analysts with crucial insights into Bajaj Auto's financial health and performance trends. These results will be particularly significant as they will offer a half-yearly perspective on the company's progress in the current fiscal year.

Investors and stakeholders are advised to look out for the detailed financial report expected to be released following the November 7 board meeting, which will provide a comprehensive view of Bajaj Auto's performance in the automotive sector.