Bajaj Auto Limited delivered exceptional third quarter performance for FY26, setting new benchmarks across revenue, profitability, and sales volumes. The automotive manufacturer reported record-breaking financial results that underscore its strong market position and operational excellence.

Financial Performance Highlights

The company's standalone financial results for Q3FY26 demonstrated robust growth momentum across all key metrics. Revenue from operations reached ₹15,220.33 crore, marking the first time the company crossed the ₹15,000 crore milestone in a single quarter.

Performance vs Analyst Estimates

The company's Q3FY26 results showed mixed performance against analyst expectations, with some metrics slightly below estimates while others exceeded projections.

Nine-Month Performance

For the nine months ended 31 December 2025, Bajaj Auto maintained its strong performance trajectory with consistent growth across financial parameters.

Volume Performance and Market Leadership

Bajaj Auto achieved record quarterly sales volumes of 13,41,252 units in Q3FY26, representing a 10% year-on-year increase from 12,24,472 units in Q3FY25. The company demonstrated strong performance across all business segments:

The export business particularly stood out, crossing 600,000 units in quarterly volumes after 15 quarters, with robust double-digit growth in Africa and Asia markets.

Profitability and Margin Expansion

The company's EBITDA reached ₹3,160.00 crore with margins expanding to 20.77%, reflecting effective cost management and operational efficiency. This represents a 62 basis points year-on-year improvement from 20.15% in Q3FY25, surpassing analyst estimates of 20.50%.

Profit before exceptional items stood at ₹2,548.70 crore for Q3FY26, compared to ₹2,108.73 crore in Q3FY25, demonstrating the underlying strength of the business operations.

Exceptional Items and Regulatory Impact

The company recognized an exceptional expense of ₹61.32 crore related to employee benefit obligations following the Government of India's notification of new Labour Codes on 21 November 2025. This one-time impact was partially offset by a corresponding deferred tax asset of ₹15.43 crore.

Business Segment Performance

Bajaj Auto's diversified portfolio delivered strong results across all segments. The domestic motorcycle business achieved its biggest quarter on 125cc+ models with double-digit revenue growth, while the electric vehicle portfolio contributed 25% of domestic revenues. The KTM and Triumph partnership accelerated momentum with approximately 50% year-on-year growth in domestic volumes and revenue.

Commercial vehicles maintained their upward trajectory, delivering approximately 80,000 units with over 50% year-on-year growth, while Chetak electric scooters registered all-time high performance with approximately 70% quarter-on-quarter growth.

Bajaj Auto Limited has disclosed the preliminary unaudited figures for its step-down subsidiary Bajaj Mobility AG for the 2025 financial year, revealing a remarkable financial turnaround despite facing revenue headwinds. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the information received on 29 January 2026.

Financial Performance Overview

Bajaj Mobility AG, formerly known as PIERER Mobility AG, reported consolidated revenue of EUR 1,009 million for 2025, representing a 46.30% decline compared to the previous year. This significant decrease was primarily attributed to the restructuring phase undertaken during the first half of 2025. Despite the revenue challenges, the company achieved a substantial restructuring gain of EUR 1,193 million following the successful completion of restructuring proceedings for KTM AG, KTM Components GmbH, and KTM Forschungs- & Entwicklungs GmbH.

Earnings and Profitability Transformation

The earnings performance showed dramatic improvement across all key metrics. EBITDA surged to EUR 874 million from negative EUR 481 million in 2024, with the EBITDA margin expanding to 86.70% compared to negative 25.60% in the previous year. Similarly, EBIT improved significantly to EUR 748 million from negative EUR 1,184 million, resulting in an EBIT margin of 74.20%. Earnings before taxes (EBT) reached EUR 663 million, a substantial turnaround from negative EUR 1,277 million in 2024.

Balance Sheet Strengthening

The company's financial position underwent substantial improvement during 2025. Equity turned positive at EUR 385 million compared to negative EUR 194 million in 2024, with the equity ratio increasing to 24.30% from negative 8.10%. Net debt was significantly reduced to EUR 798 million from EUR 1,643 million, representing a 51.40% decrease. The balance sheet total stood at EUR 1,586 million, down 33.80% from the previous year.

Operational Metrics and Investment

The restructuring efforts also impacted operational metrics, with the number of employees decreasing to 3,782 as of 31 December 2025, down 28.80% from 5,310 in the previous year. Investments excluding leasing were reduced to EUR 73 million from EUR 233 million, marking a 68.60% decrease as the company focused on optimizing its capital allocation during the restructuring phase.

Strategic Outlook for 2026

For 2026, Bajaj Mobility AG has outlined a strategic focus on its motorcycle core business, emphasizing efficiency gains through cost reduction measures. The company plans notable growth in revenue and unit sales while maintaining the restructuring momentum. Key priorities include achieving consistently positive cash flow, reducing fixed costs, streamlining organizational structures, and sharpening the product and project portfolio to enhance competitiveness.

Corporate Information

Bajaj Mobility AG serves as the holding company of KTM AG, one of Europe's leading motorcycle manufacturers. The company unites brands including KTM, Husqvarna Motorcycles, and GASGAS, offering a comprehensive portfolio spanning high-performance racing motorcycles, versatile street and offroad bikes, and travel-oriented models. The shares of Bajaj Mobility AG are listed on the SIX Swiss Exchange and Vienna Stock Exchange, with the audited annual financial report for 2025 expected to be available from March 26, 2026.